77R12358 MI-F
By Walker H.B. No. 3299
Substitute the following for H.B. No. 3299:
By Walker C.S.H.B. No. 3299
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the general powers and authority of water districts;
1-3 providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 49.054(d), Water Code, is amended to read
1-6 as follows:
1-7 (d) If the board appoints a director to serve as treasurer,
1-8 that director is not subject to the investment officer training
1-9 requirements of Chapter 2256 [Section 2256.007], Government Code,
1-10 unless the director is also appointed as the district's investment
1-11 officer under Chapter 2256, Government Code.
1-12 SECTION 2. Section 49.057(a), Water Code, is amended to read
1-13 as follows:
1-14 (a) The board shall be responsible for the management of all
1-15 the affairs of the district. The district shall employ or contract
1-16 with all persons, firms, partnerships, corporations, or other
1-17 entities, public or private, deemed necessary by the board for the
1-18 conduct of the affairs of the district, including, but not limited
1-19 to, engineers, attorneys, financial advisors, operators,
1-20 bookkeepers, tax assessors and collectors, auditors, and
1-21 administrative staff. The board may appoint an employee of a firm,
1-22 partnership, corporation, or other entity with which the district
1-23 has contracted to serve as the investment officer of the district
1-24 under Chapter 2256 [Section 2256.007], Government Code.
2-1 SECTION 3. Section 49.060(a), Water Code, is amended to read
2-2 as follows:
2-3 (a) A director is entitled to receive fees of office of not
2-4 more than $150 [$100] a day for each day the director actually
2-5 spends performing the duties of a director. The fees of office may
2-6 not exceed $6,000 per annum except for directors of a special water
2-7 authority which is engaged in the distribution and sale of electric
2-8 energy to the public.
2-9 SECTION 4. Section 49.102, Water Code, is amended by adding a
2-10 new Subsection (i) and redesignating existing Subsection (i) as
2-11 Subsection (j) to read as follows:
2-12 (i) A district, at an election required under Subsection
2-13 (a), may submit to the qualified voters of the district the
2-14 proposition of whether a plan as authorized by Section 49.351
2-15 should be implemented or entered into by the district.
2-16 (j) The provisions of this section shall not be applicable
2-17 to any district exercising the powers of Chapter 375, Local
2-18 Government Code, or any district created by a special Act of the
2-19 legislature that does not require a confirmation election.
2-20 SECTION 5. Section 49.106, Water Code, is amended by adding
2-21 Subsection (e) to read as follows:
2-22 (e) A district's authorization to issue bonds resulting from
2-23 an election held under this section, or any other law that allows
2-24 for the qualified voters of a district to authorize the issuance of
2-25 bonds by a district, remains in effect after the election unless
2-26 the district is dissolved or is annexed by another district.
2-27 SECTION 6. Section 49.107, Water Code, is amended by adding
3-1 Subsection (g) to read as follows:
3-2 (g) Sections 26.04, 26.05, and 26.07, Tax Code, do not apply
3-3 to a tax levied and collected under this section or an ad valorem
3-4 tax levied and collected for the payment of the interest on and
3-5 principal of bonds issued by a district.
3-6 SECTION 7. Section 49.108, Water Code, is amended by amending
3-7 Subsection (e) and adding Subsection (f) to read as follows:
3-8 (e) A district that is required under Section 49.181 to
3-9 obtain approval by the commission of the district's issuance of
3-10 bonds must obtain approval by the executive director before the
3-11 district enters into an obligation under this section to collect
3-12 tax for debt that exceeds three years. This subsection does not
3-13 apply to contract taxes that are levied to pay for a district's
3-14 share of bonds that have been issued by another district and
3-15 approved by the commission or for bonds issued by a municipality.
3-16 (f) Sections 26.04, 26.05, and 26.07, Tax Code, do not apply
3-17 to a tax levied and collected for payments made under a contract
3-18 approved in accordance with this section.
3-19 SECTION 8. Section 49.151(c), Water Code, is amended to read
3-20 as follows:
3-21 (c) The board may [by resolution] allow disbursements of
3-22 district money to be transferred by federal reserve wire system.
3-23 The board by resolution may allow the wire transfers to accounts in
3-24 the name of the district or accounts not in the name of the
3-25 district.
3-26 SECTION 9. Section 49.155(a), Water Code, is amended to read
3-27 as follows:
4-1 (a) The district may pay out of bond proceeds or other
4-2 available funds of the district all expenses of the district
4-3 authorized by this section, including expenses reasonable and
4-4 necessary to effect the issuance, sale, and delivery of bonds as
4-5 determined by the board, including, but not limited to, the
4-6 following:
4-7 (1) interest during construction [not to exceed three
4-8 years after acceptance of the project];
4-9 (2) capitalized interest not to exceed three years'
4-10 interest;
4-11 (3) reasonable and necessary reserve funds not to
4-12 exceed two years' interest on the bonds;
4-13 (4) interest on funds advanced to the district;
4-14 (5) financial advisor, bond counsel, attorney, and
4-15 other consultant fees;
4-16 (6) paying agent, registrar, and escrow agent fees;
4-17 (7) right-of-way acquisition;
4-18 (8) underwriter's discounts or premiums;
4-19 (9) engineering fees, including surveying expenses and
4-20 plan review fees;
4-21 (10) commission and attorney general fees;
4-22 (11) printing costs;
4-23 (12) all organizational, administrative, and operating
4-24 costs during creation and construction periods;
4-25 (13) the cost of investigation and making plans,
4-26 including preliminary plans and associated engineering reports;
4-27 (14) land required for stormwater control;
5-1 (15) costs associated with requirements for federal
5-2 stormwater permits; and
5-3 (16) costs associated with requirements for endangered
5-4 species permits.
5-5 SECTION 10. Section 49.183(b), Water Code, is amended to read
5-6 as follows:
5-7 (b) Except for refunding bonds, or bonds sold to a state or
5-8 federal agency, [after any bonds are finally approved and] before
5-9 any bonds [they] are sold by a district, the board shall publish an
5-10 appropriate notice of the sale:
5-11 (1) at least one time not less than 10 days before the
5-12 date of sale in a newspaper of general circulation in the county or
5-13 counties in which the district is located; and
5-14 (2) at least one time in one or more recognized
5-15 financial publications of general circulation in the state as
5-16 approved by the state attorney general.
5-17 SECTION 11. Section 49.184, Water Code, is amended by adding
5-18 Subsection (f) to read as follows:
5-19 (f) In any proceeding concerning the validity of the
5-20 creation of a district or the annexation of property by a district,
5-21 a certificate of ownership as certified by the central appraisal
5-22 district of the county or counties in which the property is located
5-23 creates a presumption of ownership, and additional proof of
5-24 ownership is not required unless there is substantial evidence in
5-25 the official deed records of the county in which the property is
5-26 located to rebut the presumption. On request by a district, the
5-27 central appraisal district of the county or counties in which the
6-1 district is located shall furnish certificates of ownership and may
6-2 charge reasonable fees to recover the actual costs incurred in
6-3 preparing the certificates.
6-4 SECTION 12. Section 49.212, Water Code, is amended by
6-5 amending Subsections (a) and (d) and adding Subsection (e) to read
6-6 as follows:
6-7 (a) A district may adopt and enforce all necessary charges,
6-8 mandatory fees, or rentals, in addition to taxes, for providing or
6-9 making available any district facility or service, including
6-10 fire-fighting activities provided under Section 49.351.
6-11 (d) Notwithstanding any provision of law to the contrary, a
6-12 district that charges a fee that is an impact fee as described in
6-13 Section 395.001(4), Local Government Code, must comply with Chapter
6-14 395, Local Government Code. A charge or fee by a district for
6-15 construction, installation, or inspection of a tap or connection to
6-16 district water, sanitary sewer, or drainage facilities, including
6-17 all necessary service lines and meters, or for wholesale facilities
6-18 that serve such water, sanitary sewer, or drainage facilities that
6-19 (i) does not exceed three times the actual and reasonable costs to
6-20 the district for such tap or connection, [or] (ii) if made to a
6-21 nontaxable entity for retail or wholesale service, does not exceed
6-22 the actual costs to the district for such work and for all
6-23 facilities that are necessary to provide district services to such
6-24 entity and that are financed or are to be financed in whole or in
6-25 part by tax-supported or revenue bonds of the district, or (iii) if
6-26 made by a district for retail or wholesale service on land that at
6-27 the time of platting was not being provided with water or
7-1 wastewater service by the district, shall not be deemed to be an
7-2 impact fee under Chapter 395, Local Government Code. A district
7-3 may pledge the revenues of the district's utility system to pay the
7-4 principal of or interest on bonds issued to construct the capital
7-5 improvements for which a fee was imposed under this subsection, and
7-6 money received from the fees shall be considered revenues of the
7-7 district's utility system for purposes of the district's bond
7-8 covenants.
7-9 (e) Chapter 2007, Government Code, does not apply to a tax
7-10 levied, a standby fee imposed, or a charge, fee, or rental adopted
7-11 or enforced by a district under this chapter, another chapter of
7-12 this code, or Chapter 395, Local Government Code.
7-13 SECTION 13. Section 49.218, Water Code, is amended by adding
7-14 a new Subsection (d), relettering existing Subsection (d) as
7-15 Subsection (f), and adding Subsections (e) and (g) to read as
7-16 follows:
7-17 (d) A district or water supply corporation may require a
7-18 service applicant, as a condition of service, to grant a permanent
7-19 recorded easement dedicated to the district or water supply
7-20 corporation that will provide a reasonable right of access and use
7-21 to allow the district or water supply corporation to construct,
7-22 install, maintain, replace, upgrade, inspect, and test any
7-23 facilities necessary to serve that applicant as well as the
7-24 district's or water supply corporation's purposes in providing
7-25 systemwide service. A district or water supply corporation may not
7-26 require an applicant to provide an easement for a service line for
7-27 the sole benefit of another applicant.
8-1 (e) As a condition of service to a new subdivision, a
8-2 district or water supply corporation may require a developer to
8-3 provide permanent recorded easements to and throughout the
8-4 subdivision sufficient to construct, install, maintain, replace,
8-5 upgrade, inspect, and test any facilities necessary to serve the
8-6 subdivision's anticipated service demands on full occupancy.
8-7 (f) A district or water supply corporation may also lease
8-8 property from others for its use on such terms and conditions as
8-9 the board of the district or the board of directors of the water
8-10 supply corporation may determine to be advantageous.
8-11 (g) Property acquired under this section, or any other law
8-12 allowing the acquisition of property by a district or water supply
8-13 corporation, and owned by a district or water supply corporation is
8-14 not subject to assessments, charges, fees, or dues imposed by a
8-15 nonprofit corporation under Chapter 204, Property Code.
8-16 SECTION 14. Section 49.226, Water Code, is amended to read as
8-17 follows:
8-18 Sec. 49.226. SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
8-19 PERSONAL PROPERTY. (a) Any personal property valued at more than
8-20 $300 or any land or interest in land owned by the district which is
8-21 found by the board to be surplus and is not needed by the district
8-22 may be sold under order of the board either by public or private
8-23 sale, or the land, interest in land, or personal property may be
8-24 exchanged for other land, interest in land, or personal property
8-25 needed by the district. Except as provided in Subsection (b),
8-26 land, interest in land, or personal property must be exchanged for
8-27 like fair market value, which value may be determined by the
9-1 district.
9-2 (b) Any property dedicated to or acquired by the district
9-3 without expending district funds may be abandoned or released to
9-4 the original grantor, the grantor's heirs, assigns, executors, or
9-5 successors upon terms and conditions deemed necessary or
9-6 advantageous to the district and without receiving compensation for
9-7 such abandonment or release. District property may also be
9-8 abandoned, released, exchanged, or transferred to another district,
9-9 municipality, county, countywide agency, or authority upon terms
9-10 and conditions deemed necessary or advantageous to the district.
9-11 Narrow strips of property resulting from boundary or surveying
9-12 conflicts or similar causes, or from insubstantial encroachments by
9-13 abutting property owners, or property of larger configuration that
9-14 has been subject to encroachments by abutting property owners for
9-15 more than 25 years may be abandoned, released, exchanged, or
9-16 transferred to such abutting owners upon terms and conditions
9-17 deemed necessary or advantageous to the district. Chapter 272,
9-18 Local Government Code, does [shall] not apply to this section
9-19 [subsection].
9-20 (c) Before either a public or a private sale of real
9-21 property [not required by the district], the district shall give
9-22 notice of the intent to sell by publishing notice once a week for
9-23 two consecutive weeks in one or more newspapers with general
9-24 circulation in the district.
9-25 (d) If the district has outstanding bonds secured by a
9-26 pledge of tax revenues, the proceeds of the sale of property [not
9-27 required by the district] shall be applied to retire outstanding
10-1 bonds of the district [when required by the district's applicable
10-2 bond resolutions].
10-3 (e) If the district does not have any outstanding bonds, the
10-4 proceeds derived from the sale of real or [the] personal property
10-5 [or land not required by the district] may be used for any lawful
10-6 purpose.
10-7 SECTION 15. Subchapter H, Chapter 49, Water Code, is amended
10-8 by adding Section 49.234 to read as follows:
10-9 Sec. 49.234. SEWER CONNECTIONS. (a) A district may:
10-10 (1) provide for a sanitary sewer system; and
10-11 (2) require property owners to connect to the sewer
10-12 system.
10-13 (b) A district may not require a property owner who has
10-14 installed an on-site wastewater holding or treatment facility
10-15 before the creation of the district to connect to the district's
10-16 sewer system unless:
10-17 (1) the on-site wastewater holding or treatment
10-18 facility is inadequate, failing, or not in compliance with
10-19 applicable governmental regulations;
10-20 (2) the district pays the costs of the connection to
10-21 the district's sewer system; or
10-22 (3) the connection to the district's sewer system is
10-23 required at the time that a property owner is replacing or
10-24 enlarging an on-site wastewater holding or treatment facility.
10-25 SECTION 16. Section 49.271(c), Water Code, is amended to read
10-26 as follows:
10-27 (c) The district may adopt minimum criteria for the
11-1 qualifications of bidders on its construction contracts and for
11-2 sureties issuing payment and performance bonds. For construction
11-3 contracts over $25,000, the district shall require a person who
11-4 bids to submit a certified or cashier's check on a responsible bank
11-5 in the state equal to at least two percent of the total amount of
11-6 the bid, or a bid bond of at least two percent of the total amount
11-7 of the bid issued by a surety legally authorized to do business in
11-8 this state, as a good faith deposit to ensure execution of the
11-9 contract. If the successful bidder fails or refuses to enter into
11-10 a proper contract with the district, or fails or refuses to furnish
11-11 the payment and performance bonds [bond] required by law, the
11-12 bidder forfeits the deposit. The payment, performance, and bid
11-13 bonding requirements of this subsection do not apply to a contract
11-14 for the purchase of equipment, materials, or machinery not
11-15 otherwise incorporated into a construction project.
11-16 SECTION 17. Sections 49.273(i) and (j), Water Code, are
11-17 amended to read as follows:
11-18 (i) If changes in plans or specifications are necessary
11-19 after the performance of the contract is begun, or if it is
11-20 necessary to decrease or increase the quantity of the work to be
11-21 performed or of the materials, equipment, or supplies to be
11-22 furnished, the board may approve change orders making the changes.
11-23 The aggregate of the change orders may not increase the original
11-24 contract price by more than 10 percent. Additional change [Change]
11-25 orders [to contracts] may be issued only as a result of
11-26 unanticipated conditions encountered during construction, repair,
11-27 or renovation or changes in regulatory criteria or to facilitate
12-1 project coordination with other political entities.
12-2 (j) The board is not required to advertise or seek
12-3 competitive bids for the repair of district facilities if the scope
12-4 or extent of the repair work cannot be readily ascertained or if
12-5 the nature of the repair work does not readily lend itself to
12-6 competitive bidding [by the district's operator if the cost of the
12-7 repair is less than or equal to the advertising requirements of
12-8 this section].
12-9 SECTION 18. Subchapter I, Chapter 49, Water Code, is amended
12-10 by adding Section 49.279 to read as follows:
12-11 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
12-12 alternative procedures provided by Section 2258.022, Government
12-13 Code:
12-14 (1) a district located wholly or partially within one
12-15 or more municipalities or within the extraterritorial jurisdiction
12-16 of one or more municipalities may determine its prevailing wage
12-17 rate for public works by adopting the prevailing wage rate of:
12-18 (A) one of the municipalities; or
12-19 (B) the county in which the district is located
12-20 or, if the county in which the district is located has not adopted
12-21 a wage rate, the prevailing wage rate of a county adjacent to the
12-22 county in which the district is located; and
12-23 (2) a district not located wholly or partially within
12-24 the extraterritorial jurisdiction of a municipality may determine
12-25 the district's prevailing wage rate by adopting the prevailing wage
12-26 rate of the county in which the district is located or, if the
12-27 county in which the district is located has not adopted a wage
13-1 rate, the wage rate of a county adjacent to the county in which the
13-2 district is located.
13-3 SECTION 19. Section 49.302(b), Water Code, is amended to read
13-4 as follows:
13-5 (b) A petition requesting the annexation of a defined area
13-6 signed by a majority in value of the owners of land in the defined
13-7 area, as shown by the tax rolls of the central appraisal district
13-8 of the county or counties in which such area is located, or signed
13-9 by 50 landowners if the number of landowners is more than 50, shall
13-10 describe the land by metes and bounds or by lot and block number if
13-11 there is a recorded plat of the area and shall be filed with the
13-12 secretary of the board.
13-13 SECTION 20. Section 49.304(a), Water Code, is amended to read
13-14 as follows:
13-15 (a) If the board determines that an exclusion hearing should
13-16 be held as provided by Section 49.303(a) or (c), or if a written
13-17 petition requesting an exclusion hearing is filed with the
13-18 secretary of the board as provided by [in] Section 49.303(b)
13-19 [49.303], the board shall give notice of the time and place of a
13-20 hearing to announce its own conclusions relating to land or other
13-21 property to be excluded and to receive petitions for exclusion of
13-22 land or other property.
13-23 SECTION 21. Subchapter J, Chapter 49, Water Code, is amended
13-24 by adding Section 49.315 to read as follows:
13-25 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
13-26 (a) A district may add or exclude land in accordance with this
13-27 subchapter:
14-1 (1) after a district is created by order of the
14-2 commission or another governmental entity or by special Act of the
14-3 legislature; and
14-4 (2) before a confirmation election is held as required
14-5 by Section 49.102.
14-6 (b) If land is added or excluded as provided by this
14-7 section, the election to confirm the district required by Section
14-8 49.102 shall be to confirm the district as modified.
14-9 SECTION 22. Section 49.351, Water Code, is amended by
14-10 amending Subsections (a)-(c) and (g)-(j) and adding Subsection (l)
14-11 to read as follows:
14-12 (a) A district providing potable water or sewer service to
14-13 household users may establish, operate, and maintain a fire
14-14 department to perform all fire-fighting activities within the
14-15 district as provided in this subchapter and may issue bonds or
14-16 impose a mandatory fee, with voter approval, [bonds] for financing
14-17 a plan approved in accordance with this section, [the establishment
14-18 of the fire department] including the construction and purchase of
14-19 necessary buildings, facilities, land, and equipment and the
14-20 provision of an adequate water supply.
14-21 (b) After approval of the district electors of a plan to
14-22 operate, [or] jointly operate, or jointly fund the operation of a
14-23 fire department, and after complying with Subsections (g), (h), and
14-24 (i), the district or districts shall provide an adequate system and
14-25 water supply for fire-fighting purposes, may purchase necessary
14-26 land, may construct and purchase necessary buildings, facilities,
14-27 and equipment, and may employ or contract with a fire department to
15-1 employ all necessary personnel including supervisory personnel to
15-2 operate the fire department.
15-3 (c) Bonds [issued] for financing a plan approved in
15-4 accordance with this section [establishment of the fire department]
15-5 shall be authorized and may be issued, and a district shall be
15-6 authorized to levy a tax to pay the principal of and interest on
15-7 such bonds, as provided by law for authorization and issuance of
15-8 other bonds of the district.
15-9 (g) A district or districts proposing to act jointly shall
15-10 develop a detailed plan for the establishment, operation, and
15-11 maintenance of the proposed department, including a detailed
15-12 presentation of all financial requirements. If a district is
15-13 entering into a contract under Subsection (e), the district shall
15-14 develop a plan that describes [in detail] the contract and
15-15 [facilities and equipment to be devoted to service to the district
15-16 and all proposals for providing the service and that] includes a
15-17 presentation of the financial requirements under the contract. A
15-18 plan required by this subsection may be included in a plan or
15-19 report otherwise required by this title for the creation of a
15-20 district or may be submitted to the commission for approval at any
15-21 time after the creation of the district. [Before adoption of a
15-22 plan and any contract by the district, the board shall hold a
15-23 hearing at which any person residing in the district may present
15-24 testimony for and against the proposed plan and any proposed
15-25 contract. Notice of the hearing and the place at which the plan
15-26 and any contract may be examined shall be posted in two public
15-27 places within the district at least 10 days before the date of the
16-1 hearing.]
16-2 (h) If a plan was not approved by the commission at the time
16-3 of the district's creation, after [After] adoption of the plan and
16-4 any contract by the board, the plan and financial presentation,
16-5 together with any contract and a written report in a form
16-6 prescribed by the executive director describing existing fire
16-7 departments and fire-fighting services available within 25 miles of
16-8 the boundaries of the district, shall be submitted to the executive
16-9 director for consideration by the commission under rules adopted by
16-10 the commission. [Before approval or disapproval, the commission
16-11 shall hold a hearing. Notice of the hearing before the commission
16-12 shall be posted by the board in at least two public places in the
16-13 district at least five days before the hearing.] Before the
16-14 commission approves the application, it must find that it is
16-15 economically feasible for the district to implement the plan and
16-16 meet the provisions of any contract and shall take into
16-17 consideration in giving its approval the general financial
16-18 condition of the district and the economic feasibility of the
16-19 district carrying out the plan or meeting the obligations of the
16-20 contract. A plan approved by the commission as part of the
16-21 creation of a district does not require further commission approval
16-22 unless the district materially alters the plan.
16-23 (i) After approval of a plan by the commission, the district
16-24 shall submit to the electors of the district at the election to
16-25 approve bonds or to impose a mandatory fee for financing the plan,
16-26 or if no bonds or fees are to be approved, at an election called
16-27 for approval of the plan, which may be held in conjunction with an
17-1 election required by Section 49.102, the proposition of whether or
17-2 not the plan should be implemented or entered into by the district.
17-3 The ballots at the election shall be printed, as applicable, to
17-4 provide for voting for or against the proposition: "The
17-5 implementation of the plan for (operation/joint operation) of a
17-6 fire department"; or "The plan and contract to provide
17-7 fire-fighting services for the district."
17-8 (j) [No funds of the district may be used to establish a
17-9 fire department, to enter into joint operation of a fire
17-10 department, or to contract for fire-fighting services without the
17-11 approval of a plan by the electors as provided in this section.
17-12 However, the district may use available funds for preparation of a
17-13 plan and any contract.] The operation of a fire department or
17-14 provision of fire-fighting services is an essential public
17-15 necessity, and a district may discontinue any and all services,
17-16 including water and sewer service, to any person who fails to
17-17 timely pay fire department service fees or any other assessment
17-18 adopted by the district to support the fire department or the
17-19 provision of fire-fighting services.
17-20 (l) Notwithstanding the requirements of Subsections (a)-(j),
17-21 a district providing potable water or sewer service to household
17-22 users may as part of its billing process collect from its customers
17-23 a voluntary contribution on behalf of organizations providing
17-24 fire-fighting activities to the district. A district that chooses
17-25 to collect a voluntary contribution under this subsection must give
17-26 reasonable notice to its customers that the contribution is
17-27 voluntary. Water and sewer service may not be terminated as a
18-1 result of failure to pay the voluntary contribution.
18-2 SECTION 23. Chapter 49, Water Code, is amended by adding
18-3 Subchapter N to read as follows:
18-4 SUBCHAPTER N. RECREATIONAL FACILITIES
18-5 Sec. 49.461. POLICY AND PURPOSE. (a) The legislature finds
18-6 that:
18-7 (1) the provision of parks and recreational facilities
18-8 is necessary and desirable for the health and well-being of the
18-9 people of this state;
18-10 (2) it is the policy of the state and the purpose of
18-11 this subchapter to encourage persons in districts to provide parks
18-12 and recreational facilities for their use and benefit;
18-13 (3) within constitutional limitations, the power to
18-14 enact laws vested in the legislature by Section 1, Article III,
18-15 Texas Constitution, is supreme;
18-16 (4) there is no constitutional inhibition that would
18-17 prohibit the legislature from authorizing districts to acquire,
18-18 own, develop, construct, improve, manage, operate, and maintain
18-19 parks and recreational facilities; and
18-20 (5) the general legislative power alone is adequate to
18-21 support the enactment of this subchapter without reference to any
18-22 specific constitutional authorization.
18-23 (b) This subchapter provides complete authority to a
18-24 district to develop and maintain recreational facilities.
18-25 Sec. 49.462. DEFINITIONS. In this subchapter:
18-26 (1) "Recreational facilities" means parks,
18-27 landscaping, parkways, greenbelts, sidewalks, trails, public
19-1 right-of-way beautification projects, and recreational equipment
19-2 and facilities. The term includes associated street and security
19-3 lighting.
19-4 (2) "Develop and maintain" means to acquire, own,
19-5 develop, construct, improve, manage, maintain, and operate.
19-6 Sec. 49.463. AUTHORIZATION OF RECREATIONAL FACILITIES. In
19-7 addition to the other purposes for which a district is created, a
19-8 district is created for the purpose of developing and maintaining
19-9 recreational facilities for the people in the district. A district
19-10 may accomplish this purpose as provided in this subchapter.
19-11 Sec. 49.464. ACQUISITION OF AND PAYMENT FOR RECREATIONAL
19-12 FACILITIES. (a) A district may not issue bonds supported by ad
19-13 valorem taxes to pay for the development and maintenance of
19-14 recreational facilities.
19-15 (b) Except as provided by Subsection (a), a district may
19-16 acquire recreational facilities and obtain funds to develop and
19-17 maintain them in the same manner as authorized elsewhere in this
19-18 code for the acquisition, development, and maintenance of other
19-19 district facilities. A district may charge fees directly to the
19-20 users of recreational facilities and to water and wastewater
19-21 customers of the district to pay for all or part of the cost of
19-22 their development and maintenance. To enforce payment of an unpaid
19-23 fee charged under this subsection, the district may:
19-24 (1) seek legal restitution of the unpaid fee; and
19-25 (2) refuse use of a recreational facility to the
19-26 person who owes the unpaid fee.
19-27 (c) The district may not refuse use of facilities or
20-1 services other than recreational facilities to enforce an unpaid
20-2 fee.
20-3 Sec. 49.465. STANDARDS. The board by rule shall establish
20-4 standards for recreational facilities to be developed and
20-5 maintained by a district and for the allocation of a district's
20-6 funds for developing and maintaining recreational facilities in
20-7 relation to a district's financial requirements for other purposes.
20-8 To prevent duplication of recreational facilities provided by other
20-9 governmental entities, rules adopted by the board under this
20-10 subsection must require a district, before developing recreational
20-11 facilities, to make findings that the size and location of the
20-12 facilities have been established in consideration of municipal or
20-13 county recreational facilities, whether existing or proposed, that
20-14 serve or will serve the area in which the district is located.
20-15 SECTION 24. Section 51.013(a), Water Code, is amended to read
20-16 as follows:
20-17 (a) A petition requesting creation of a district shall be
20-18 signed by a majority of the persons who hold title to land in the
20-19 proposed district which represents a total value of more than 50
20-20 percent of the value of all the land in the proposed district as
20-21 indicated by the [county] tax rolls of the central appraisal
20-22 district. If there are more than 50 persons holding title to land
20-23 in the proposed district, the petition is sufficient if signed by
20-24 50 of them.
20-25 SECTION 25. Subchapter D, Chapter 51, Water Code, is amended
20-26 by adding Section 51.122 to read as follows:
20-27 Sec. 51.122. ADOPTING RULES AND REGULATIONS. A district may
21-1 adopt and enforce reasonable rules and regulations to:
21-2 (1) secure and maintain safe, sanitary, and adequate
21-3 plumbing installations, connections, and appurtenances as
21-4 subsidiary parts of the district's sanitary sewer system;
21-5 (2) preserve the sanitary condition of all water
21-6 controlled by the district;
21-7 (3) prevent waste or the unauthorized use of water
21-8 controlled by the district;
21-9 (4) regulate privileges on any land or any easement
21-10 owned or controlled by the district; or
21-11 (5) provide and regulate a safe and adequate
21-12 freshwater distribution system.
21-13 SECTION 26. Chapter 51, Water Code, is amended by adding
21-14 Subchapter E to read as follows:
21-15 SUBCHAPTER E. ENFORCEMENT
21-16 Sec. 51.221. PENALTY FOR VIOLATION OF REGULATION. A person
21-17 who violates a regulation adopted by a district under this chapter
21-18 or other law commits an offense. An offense under this section is
21-19 a Class C misdemeanor.
21-20 SECTION 27. Section 53.021, Water Code, is amended to read as
21-21 follows:
21-22 Sec. 53.021. OFFICERS TO BE ELECTED. In the election, five
21-23 supervisors [and the tax assessor and collector] are elected.
21-24 SECTION 28. Section 54.014, Water Code, is amended to read as
21-25 follows:
21-26 Sec. 54.014. PETITION. When it is proposed to create a
21-27 district, a petition requesting creation shall be filed with the
22-1 commission. The petition shall be signed by a majority in value of
22-2 the holders of title of the land within the proposed district, as
22-3 indicated by the [county] tax rolls of the central appraisal
22-4 district. If there are more than 50 persons holding title to the
22-5 land in the proposed district, as indicated by the [county] tax
22-6 rolls of the central appraisal district, the petition is sufficient
22-7 if it is signed by 50 holders of title to the land.
22-8 SECTION 29. Section 54.236, Water Code, is amended to read as
22-9 follows:
22-10 Sec. 54.236. STREET OR SECURITY LIGHTING. Subject to the
22-11 provisions of this section, a district may purchase, install
22-12 [accept], operate, and maintain street lighting or security
22-13 lighting within public utility easements or public rights-of-way
22-14 within the boundaries of the district. [Such street or security
22-15 lighting facilities must have been constructed by an owner or
22-16 developer of property within the district and must have been
22-17 required by a city as a condition to the city granting its consent
22-18 to the creation of the district pursuant to Section 54.016 of this
22-19 code.] A district may not issue bonds supported by ad valorem
22-20 taxes to pay for the purchase, installation, [development] and
22-21 maintenance of street or security lighting.
22-22 SECTION 30. Section 54.772(1), Water Code, is amended to read
22-23 as follows:
22-24 (1) "Recreational facilities" means parks,
22-25 landscaping, parkways, greenbelts, sidewalks, trails, public
22-26 right-of-way beautification projects, and recreational equipment
22-27 and facilities. The term includes associated street and security
23-1 lighting.
23-2 SECTION 31. Section 54.774(a), Water Code, is amended to read
23-3 as follows:
23-4 (a) A district may not issue bonds supported by ad valorem
23-5 taxes to pay for the development and maintenance of recreational
23-6 facilities.
23-7 SECTION 32. Section 57.092(a), Water Code, is amended to read
23-8 as follows:
23-9 (a) The district may enter into all necessary and proper
23-10 contracts and employ all persons and means necessary to purchase,
23-11 acquire, build, construct, complete, carry out, maintain, protect,
23-12 and in case of necessity, add to and rebuild, all works and
23-13 improvements [within the district] necessary or proper to fully
23-14 accomplish a reclamation plan lawfully adopted for the district.
23-15 SECTION 33. Subchapter D, Chapter 57, Water Code, is amended
23-16 by adding Section 57.093 to read as follows:
23-17 Sec. 57.093. ADOPTING RULES AND REGULATIONS. A district may
23-18 adopt and enforce reasonable rules and regulations to:
23-19 (1) preserve the sanitary condition of all water
23-20 controlled by the district;
23-21 (2) prevent waste or the unauthorized use of water
23-22 controlled by the district;
23-23 (3) regulate privileges on any land or any easement
23-24 owned or controlled by the district;
23-25 (4) regulate the design and construction of
23-26 improvements and facilities that outfall, connect, or tie into
23-27 district improvements and facilities; or
24-1 (5) require the district's review and approval of
24-2 drainage plans for property within the district.
24-3 SECTION 34. Subchapter B, Chapter 402, Local Government Code,
24-4 is amended by adding Section 402.0205 to read as follows:
24-5 Sec. 402.0205. REVENUE BONDS TO PAY FOR DISTRICT SERVICES
24-6 UNDER CONTRACT. (a) In this section, "district" has the meaning
24-7 assigned by Section 49.001, Water Code.
24-8 (b) If a district contracts with a municipality to provide
24-9 all or part of the water or wastewater services to the
24-10 municipality, the municipality may issue bonds payable from the
24-11 revenues of its water and wastewater system to provide funds to
24-12 make payments owed by the municipality to the district under the
24-13 contract.
24-14 SECTION 35. Subchapter Z, Chapter 402, Local Government Code,
24-15 is amended by adding Section 402.908 to read as follows:
24-16 Sec. 402.908. SALE OF WATER OR SEWER SYSTEM. A
24-17 municipality, without an election, may sell to a water district
24-18 operating under the authority of Section 59, Article XVI, Texas
24-19 Constitution, a water or sewer system owned by the municipality.
24-20 SECTION 36. (a) In this section, "district" has the meaning
24-21 assigned by Section 49.001, Water Code.
24-22 (b) The following are validated and confirmed in all
24-23 respects:
24-24 (1) the creation of a district and all proceedings
24-25 related to the creation of the district, effective as of the date
24-26 on which the creation or related proceedings occurred; and
24-27 (2) any act or proceeding of a district, including an
25-1 election, not excepted by this section and taken not more than two
25-2 years before the effective date of this Act, effective as of the
25-3 date on which the act or proceeding occurred.
25-4 (c) Subsection (b) of this section does not apply to:
25-5 (1) an act, proceeding, director, other official,
25-6 bond, or other obligation the validity of which or of whom is the
25-7 subject of litigation that is pending on the effective date of this
25-8 Act; or
25-9 (2) a governmental act or proceeding that, under the
25-10 law of this state at the time the act or proceeding occurred, was a
25-11 misdemeanor or a felony.
25-12 SECTION 37. Sections 53.024, 57.152, and 57.153, Water Code,
25-13 are repealed.
25-14 SECTION 38. This Act takes effect immediately if it receives
25-15 a vote of two-thirds of all the members elected to each house, as
25-16 provided by Section 39, Article III, Texas Constitution. If this
25-17 Act does not receive the vote necessary for immediate effect, this
25-18 Act takes effect September 1, 2001.