By:  Brown                                            S.B. No. 1444
                                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.  Subsection (d), Section 49.054, Water Code, is
 1-6     amended to read 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.  Subsection (a), Section 49.057, Water Code, is
1-13     amended to read 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.
1-25           SECTION 3.  Subsection (a), Section 49.060, Water Code, is
 2-1     amended to read as follows:
 2-2           (a)  A director is entitled to receive fees of office of not
 2-3     more than $150 [$100] a day for each day the director actually
 2-4     spends performing the duties of a director.  The fees of office may
 2-5     not exceed $6,000 per annum except for directors of a special water
 2-6     authority which is engaged in the distribution and sale of electric
 2-7     energy to the public.
 2-8           SECTION 4.  Section 49.102, Water Code, is amended by adding
 2-9     a new Subsection (i) and redesignating existing Subsection (i) as
2-10     Subsection (j) to read as follows:
2-11           (i)  A district, at an election required under Subsection
2-12     (a), may submit to the qualified voters of the district the
2-13     proposition of whether a plan as authorized by Section 49.351
2-14     should be implemented or entered into by the district.
2-15           (j)  The provisions of this section shall not be applicable
2-16     to any district exercising the powers of Chapter 375, Local
2-17     Government Code, or any district created by a special Act of the
2-18     legislature that does not require a confirmation election.
2-19           SECTION 5.  Section 49.106, Water Code, is amended by adding
2-20     Subsection (e) to read as follows:
2-21           (e)  A district's authorization to issue bonds resulting from
2-22     an election held under this section, or any other law that allows
2-23     for the qualified voters of a district to authorize the issuance of
2-24     bonds by a district, remains in effect after the election unless
2-25     the district is dissolved or is annexed by another district.
2-26           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 adding
 3-7     Subsection (f) to read as follows:
 3-8           (f)  Sections 26.04, 26.05, and 26.07, Tax Code, do not apply
 3-9     to a tax levied and collected for payments made under a contract
3-10     approved in accordance with this section.
3-11           SECTION 8.  Subsection (c), Section 49.151, Water Code, is
3-12     amended to read as follows:
3-13           (c)  The board may [by resolution] allow disbursements of
3-14     district money to be transferred by federal reserve wire system.
3-15     The board by resolution may allow the wire transfers to accounts in
3-16     the name of the district or accounts not in the name of the
3-17     district.
3-18           SECTION 9.  Subsection (a), Section 49.155, Water Code, is
3-19     amended to read as follows:
3-20           (a)  The district may pay out of bond proceeds or other
3-21     available funds of the district all expenses of the district
3-22     authorized by this section, including expenses reasonable and
3-23     necessary to effect the issuance, sale, and delivery of bonds as
3-24     determined by the board, including, but not limited to, the
3-25     following:
3-26                 (1)  interest during construction [not to exceed three
 4-1     years after acceptance of the project];
 4-2                 (2)  capitalized interest not to exceed three years'
 4-3     interest;
 4-4                 (3)  reasonable and necessary reserve funds not to
 4-5     exceed two years' interest on the bonds;
 4-6                 (4)  interest on funds advanced to the district;
 4-7                 (5)  financial advisor, bond counsel, attorney, and
 4-8     other consultant fees;
 4-9                 (6)  paying agent, registrar, and escrow agent fees;
4-10                 (7)  right-of-way acquisition;
4-11                 (8)  underwriter's discounts or premiums;
4-12                 (9)  engineering fees, including surveying expenses and
4-13     plan review fees;
4-14                 (10)  commission and attorney general fees;
4-15                 (11)  printing costs;
4-16                 (12)  all organizational, administrative, and operating
4-17     costs during creation and construction periods;
4-18                 (13)  the cost of investigation and making plans,
4-19     including preliminary plans and associated engineering reports;
4-20                 (14)  land required for stormwater control;
4-21                 (15)  costs associated with requirements for federal
4-22     stormwater permits; and
4-23                 (16)  costs associated with requirements for endangered
4-24     species permits.
4-25           SECTION 10.  Subsection (b), Section 49.183, Water Code, is
4-26     amended to read as follows:
 5-1           (b)  Except for refunding bonds, or bonds sold to a state or
 5-2     federal agency, [after any bonds are finally approved and] before
 5-3     any bonds [they] are sold by a district, the board shall publish an
 5-4     appropriate notice of the sale:
 5-5                 (1)  at least one time not less than 10 days before the
 5-6     date of sale in a newspaper of general circulation in the county or
 5-7     counties in which the district is located; and
 5-8                 (2)  at least one time in one or more recognized
 5-9     financial publications of general circulation in the state as
5-10     approved by the state attorney general.
5-11           SECTION 11.  Section 49.184, Water Code, is amended by adding
5-12     Subsection (f) to read as follows:
5-13           (f)  In any proceeding concerning the validity of the
5-14     creation of a district or the annexation of property by a district,
5-15     a certificate of ownership as certified by the central appraisal
5-16     district of the county or counties in which the property is located
5-17     creates a presumption of ownership, and additional proof of
5-18     ownership is not required unless there is substantial evidence in
5-19     the official deed records of the county in which the property is
5-20     located to rebut the presumption.  On request by a district, the
5-21     central appraisal district of the county or counties in which the
5-22     district is located shall furnish certificates of ownership and may
5-23     charge reasonable fees to recover the actual costs incurred in
5-24     preparing the certificates.
5-25           SECTION 12.  Section 49.212, Water Code, is amended by
5-26     amending Subsection (a) and adding Subsection (e) to read as
 6-1     follows:
 6-2           (a)  A district may adopt and enforce all necessary charges,
 6-3     mandatory fees, or rentals, in addition to taxes, for providing or
 6-4     making available any district facility or service, including
 6-5     fire-fighting activities provided under Section 49.351.
 6-6           (e)  Chapter 2007, Government Code, does not apply to a tax
 6-7     levied, a standby fee imposed, or a charge, fee, or rental adopted
 6-8     or enforced by a district under this chapter, another chapter of
 6-9     this code, or Chapter 395, Local Government Code.
6-10           SECTION 13.  Section 49.218, Water Code, is amended by adding
6-11     a new Subsection (d), relettering existing Subsection (d) as
6-12     Subsection (f), and adding Subsections (e) and (g) to read as
6-13     follows:
6-14           (d)  A district or water supply corporation may require a
6-15     service applicant, as a condition of service, to grant a permanent
6-16     recorded easement dedicated to the district or water supply
6-17     corporation that will provide a reasonable right of access and use
6-18     to allow the district or water supply corporation to construct,
6-19     install, maintain, replace, upgrade, inspect, and test any
6-20     facilities necessary to serve that applicant as well as other
6-21     customers of the district or water supply corporation.
6-22           (e)  As a condition of service to a new subdivision, a
6-23     district or water supply corporation may require a developer to
6-24     provide permanent recorded easements to and throughout the
6-25     subdivision sufficient to construct, install, maintain, replace,
6-26     upgrade, inspect, and test any facilities necessary to serve the
 7-1     subdivision's anticipated service demands on full occupancy.
 7-2           (f)  A district or water supply corporation may also lease
 7-3     property from others for its use on such terms and conditions as
 7-4     the board of the district or the board of directors of the water
 7-5     supply corporation may determine to be advantageous.
 7-6           (g)  Property acquired under this section, or any other law
 7-7     allowing the acquisition of property by a district or water supply
 7-8     corporation, and owned by a district or water supply corporation is
 7-9     not subject to assessments, charges, fees, or dues imposed by a
7-10     nonprofit corporation under Chapter 204, Property Code.
7-11           SECTION 14.  Section 49.226, Water Code, is amended to read
7-12     as follows:
7-13           Sec. 49.226.  SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
7-14     PERSONAL PROPERTY.  (a)  Any personal property valued at more than
7-15     $300 or any land or interest in land owned by the district which is
7-16     found by the board to be surplus and is not needed by the district
7-17     may be sold under order of the board either by public or private
7-18     sale, or the land, interest in land, or personal property may be
7-19     exchanged for other land, interest in land, or personal property
7-20     needed by the district.  Except as provided in Subsection (b),
7-21     land, interest in land, or personal property must be exchanged for
7-22     like fair market value, which value may be determined by the
7-23     district.
7-24           (b)  Any property dedicated to or acquired by the district
7-25     without expending district funds may be abandoned or released to
7-26     the original grantor, the grantor's heirs, assigns, executors, or
 8-1     successors upon terms and conditions deemed necessary or
 8-2     advantageous to the district and without receiving compensation for
 8-3     such abandonment or release.  District property may also be
 8-4     abandoned, released, exchanged, or transferred to another district,
 8-5     municipality, county, countywide agency, or authority upon terms
 8-6     and conditions deemed necessary or advantageous to the district.
 8-7     Narrow strips of property resulting from boundary or surveying
 8-8     conflicts or similar causes, or from insubstantial encroachments by
 8-9     abutting property owners, or property of larger configuration that
8-10     has been subject to encroachments by abutting property owners for
8-11     more than 25 years may be abandoned, released, exchanged, or
8-12     transferred to such abutting owners upon terms and conditions
8-13     deemed necessary or advantageous to the district.  Chapter 272,
8-14     Local Government Code, does [shall] not apply to this section
8-15     [subsection].
8-16           (c)  Before either a public or a private sale of real
8-17     property [not required by the district], the district shall give
8-18     notice of the intent to sell by publishing notice once a week for
8-19     two consecutive weeks in one or more newspapers with general
8-20     circulation in the district.
8-21           (d)  If the district has outstanding bonds secured by a
8-22     pledge of tax revenues, the proceeds of the sale of property [not
8-23     required by the district]  shall be applied to retire outstanding
8-24     bonds of the district [when required by the district's applicable
8-25     bond resolutions].
8-26           (e)  If the district does not have any outstanding bonds, the
 9-1     proceeds derived from the sale of real or [the] personal property
 9-2     [or land not required by the district] may be used for any lawful
 9-3     purpose.
 9-4           SECTION 15.  Subchapter H, Chapter 49, Water Code, is amended
 9-5     by adding Section 49.234 to read as follows:
 9-6           Sec. 49.234.  SEWER CONNECTIONS.  (a)  A district may:
 9-7                 (1)  provide for a sanitary sewer system; and
 9-8                 (2)  require property owners to connect to the sewer
 9-9     system.
9-10           (b)  A district may not require a property owner who has
9-11     installed an on-site wastewater holding or treatment facility
9-12     before the creation of the district to connect to the district's
9-13     sewer system, unless:
9-14                 (1)  the on-site wastewater holding or treatment
9-15     facility is inadequate, failing, or not in compliance with
9-16     applicable government regulations;
9-17                 (2)  the district pays the costs of the connection to
9-18     the district's sewer system; or
9-19                 (3)  the connection to the district's sewer system is
9-20     required at the time that a property owner is replacing or
9-21     enlarging an on-site wastewater holding or treatment facility.
9-22           SECTION 16.  Subsection (c), Section 49.271, Water Code, is
9-23     amended to read as follows:
9-24           (c)  The district may adopt minimum criteria for the
9-25     qualifications of bidders on its construction contracts and for
9-26     sureties issuing payment and performance bonds.  For construction
 10-1    contracts over $25,000, the district shall require a person who
 10-2    bids to submit a certified or cashier's check on a responsible bank
 10-3    in the state equal to at least two percent of the total amount of
 10-4    the bid, or a bid bond of at least two percent of the total amount
 10-5    of the bid issued by a surety legally authorized to do business in
 10-6    this state, as a good faith deposit to ensure execution of the
 10-7    contract.  If the successful bidder fails or refuses to enter into
 10-8    a proper contract with the district, or fails or refuses to furnish
 10-9    the payment and performance bonds [bond] required by law, the
10-10    bidder forfeits the deposit.  The payment, performance, and bid
10-11    bonding requirements of this subsection do not apply to a contract
10-12    for the purchase of equipment, materials, or machinery not
10-13    otherwise incorporated into a construction project.
10-14          SECTION 17.  Subsections (i) and (j), Section 49.273, Water
10-15    Code, are amended to read as follows:
10-16          (i)  If changes in plans or specifications are necessary
10-17    after the performance of the contract is begun, or if it is
10-18    necessary to decrease or increase the quantity of the work to be
10-19    performed or of the materials, equipment, or supplies to be
10-20    furnished, the board may approve change orders making the changes.
10-21    The aggregate of the change orders may not increase the original
10-22    contract price by more than 10 percent.  Additional change [Change]
10-23    orders [to contracts] may be issued only as a result of
10-24    unanticipated conditions encountered during construction, repair,
10-25    or renovation or changes in regulatory criteria or to facilitate
10-26    project coordination with other political entities.
 11-1          (j)  The board is not required to advertise or seek
 11-2    competitive bids for the repair of district facilities if the scope
 11-3    or extent of the repair work cannot be readily ascertained or if
 11-4    the nature of the repair work does not readily lend itself to
 11-5    competitive bidding [by the district's operator if the cost of the
 11-6    repair is less than or equal to the advertising requirements of
 11-7    this section].
 11-8          SECTION 18.  Subchapter I, Chapter 49, Water Code, is amended
 11-9    by adding Section 49.279 to read as follows:
11-10          Sec. 49.279.  PREVAILING WAGE RATES.  In addition to the
11-11    alternative procedures provided by Section 2258.022, Government
11-12    Code:
11-13                (1)  a district located wholly or partially within one
11-14    or more municipalities or within the extraterritorial jurisdiction
11-15    of one or more municipalities may determine its prevailing wage
11-16    rate for public works by adopting the prevailing wage rate of:
11-17                      (A)  one of the municipalities; or
11-18                      (B)  the county in which the district is located,
11-19    or if the county in which the district is located has not adopted a
11-20    wage rate, the prevailing wage rate of a county adjacent to the
11-21    county in which the district is located; and
11-22                (2)  a district not located wholly or partially within
11-23    the extraterritorial jurisdiction of a municipality may determine
11-24    the district's prevailing wage rate by adopting the prevailing wage
11-25    rate of the county in which the district is located or, if the
11-26    county in which the district is located has not adopted a wage
 12-1    rate, the wage rate of a county adjacent to the county in which the
 12-2    district is located.
 12-3          SECTION 19.  Subsection (b), Section 49.302, Water Code, is
 12-4    amended to read as follows:
 12-5          (b)  A petition requesting the annexation of a defined area
 12-6    signed by a majority in value of the owners of land in the defined
 12-7    area, as shown by the tax rolls of the central appraisal district
 12-8    of the county or counties in which such area is located, or signed
 12-9    by 50 landowners if the number of landowners is more than 50, shall
12-10    describe the land by metes and bounds or by lot and block number if
12-11    there is a recorded plat of the area and shall be filed with the
12-12    secretary of the board.
12-13          SECTION 20.  Subsection (a), Section 49.304, Water Code, is
12-14    amended to read as follows:
12-15          (a)  If the board determines that an exclusion hearing should
12-16    be held as provided by Section 49.303(a) or (c), or if a written
12-17    petition requesting an exclusion hearing is filed with the
12-18    secretary of the board as provided by [in] Section 49.303(b)
12-19    [49.303], the board shall give notice of the time and place of a
12-20    hearing to announce its own conclusions relating to land or other
12-21    property to be excluded and to receive petitions for exclusion of
12-22    land or other property.
12-23          SECTION 21.  Subchapter J, Chapter 49, Water Code, is amended
12-24    by adding Section 49.315 to read as follows:
12-25          Sec. 49.315.  ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
12-26    (a)  A district may add or exclude land in accordance with this
 13-1    subchapter:
 13-2                (1)  after a district is created by order of the
 13-3    commission or another governmental entity or by special Act of the
 13-4    legislature; and
 13-5                (2)  before a confirmation election is held as required
 13-6    by Section 49.102.
 13-7          (b)  If land is added or excluded as provided by this
 13-8    section, the election to confirm the district required by Section
 13-9    49.102 shall be to confirm the district as modified.
13-10          SECTION 22.  Section 49.327, Water Code, is amended to read
13-11    as follows:
13-12          Sec. 49.327.  ASSETS ESCHEAT TO STATE.  (a)  Upon the
13-13    dissolution of a district by the commission, all assets of the
13-14    district shall escheat to the State of Texas.  The assets shall be
13-15    administered by the comptroller and shall be disposed of in the
13-16    manner provided by Chapter 74, Property Code.
13-17          (b)  Title 6, Property Code, does not apply to any personal
13-18    property held by a district that has not been dissolved by order of
13-19    the commission.
13-20          SECTION 23.  Section 49.351, Water Code, is amended by
13-21    amending Subsections (a), (b), and (c) and (g) through (j) and
13-22    adding Subsection (l) to read as follows:
13-23          (a)  A district providing potable water or sewer service to
13-24    household users may establish, operate, and maintain a fire
13-25    department to perform all fire-fighting activities within the
13-26    district as provided in this subchapter and may issue bonds or
 14-1    impose a mandatory fee, with voter approval, [bonds] for financing
 14-2    a plan approved in accordance with this section, [the establishment
 14-3    of the fire department] including the construction and purchase of
 14-4    necessary buildings, facilities, land, and equipment and the
 14-5    provision of an adequate water supply.
 14-6          (b)  After approval of the district electors of a plan to
 14-7    operate, [or] jointly operate, or jointly fund the operation of a
 14-8    fire department, and after complying with Subsections (g), (h), and
 14-9    (i), the district or districts shall provide an adequate system and
14-10    water supply for fire-fighting purposes, may purchase necessary
14-11    land, may construct and purchase necessary buildings, facilities,
14-12    and equipment, and may employ or contract with a fire department to
14-13    employ all necessary personnel including supervisory personnel to
14-14    operate the fire department.
14-15          (c)  Bonds [issued] for financing a plan approved in
14-16    accordance with this section [establishment of the fire department]
14-17    shall be authorized and may be issued, and a district shall be
14-18    authorized to levy a tax to pay the principal of and interest on
14-19    such bonds, as provided by law for authorization and issuance of
14-20    other bonds of the district.
14-21          (g)  A district or districts proposing to act jointly shall
14-22    develop a detailed plan for the establishment, operation, and
14-23    maintenance of the proposed department, including a detailed
14-24    presentation of all financial requirements.  If a district is
14-25    entering into a contract under Subsection (e), the district shall
14-26    develop a plan that describes [in detail] the contract and
 15-1    [facilities and equipment to be devoted to service to the district
 15-2    and all proposals for providing the service and that] includes a
 15-3    presentation of the financial requirements under the contract.  A
 15-4    plan required by this subsection may be included in a plan or
 15-5    report otherwise required by this title for the creation of a
 15-6    district or may be submitted to the commission for approval at any
 15-7    time after the creation of the district.  [Before adoption of a
 15-8    plan and any contract by the district, the board shall hold a
 15-9    hearing at which any person residing in the district may present
15-10    testimony for and against the proposed plan and any proposed
15-11    contract.  Notice of the hearing and the place at which the plan
15-12    and any contract may be examined shall be posted in two public
15-13    places within the district at least 10 days before the date of the
15-14    hearing.]
15-15          (h)  If a plan was not approved by the commission at the time
15-16    of the district's creation, after [After] adoption of the plan and
15-17    any contract by the board, the plan and financial presentation,
15-18    together with any contract and a written report in a form
15-19    prescribed by the executive director describing existing fire
15-20    departments and fire-fighting services available within 25 miles of
15-21    the boundaries of the district, shall be submitted to the executive
15-22    director for consideration by the commission under rules adopted by
15-23    the commission.  [Before approval or disapproval, the commission
15-24    shall hold a hearing.  Notice of the hearing before the commission
15-25    shall be posted by the board in at least two public places in the
15-26    district at least five days before the hearing.]  Before the
 16-1    commission approves the application, it must find that it is
 16-2    economically feasible for the district to implement the plan and
 16-3    meet the provisions of any contract and shall take into
 16-4    consideration in giving its approval the general financial
 16-5    condition of the district and the economic feasibility of the
 16-6    district carrying out the plan or meeting the obligations of the
 16-7    contract.  A plan approved by the commission as part of the
 16-8    creation of a district does not require further commission approval
 16-9    unless the district materially alters the plan.
16-10          (i)  After approval of a plan by the commission, the district
16-11    shall submit to the electors of the district at the election to
16-12    approve bonds or to impose a mandatory fee for financing the plan,
16-13    or if no bonds or fees are to be approved, at an election called
16-14    for approval of the plan, which may be held in conjunction with an
16-15    election required by Section 49.102, the proposition of whether or
16-16    not the plan should be implemented or entered into by the district.
16-17    The ballots at the election shall be printed, as applicable, to
16-18    provide for voting for or against the proposition:  "The
16-19    implementation of the plan for (operation/joint operation) of a
16-20    fire department"; or "The plan and contract to provide
16-21    fire-fighting services for the district."
16-22          (j)  [No funds of the district may be used to establish a
16-23    fire department, to enter into joint operation of a fire
16-24    department, or to contract for fire-fighting services without the
16-25    approval of a plan by the electors as provided in this section.
16-26    However, the district may use available funds for preparation of a
 17-1    plan and any contract.]  The operation of a fire department or
 17-2    provision of fire-fighting services is an essential public
 17-3    necessity, and a district may discontinue any and all services,
 17-4    including water and sewer service, to any person who fails to
 17-5    timely pay fire department service fees or any other assessment
 17-6    adopted by the district to support the fire department or the
 17-7    provision of fire-fighting services.
 17-8          (l)  Notwithstanding the requirements of Subsections (a)-(j),
 17-9    a district providing potable water or sewer service to household
17-10    users may as part of its billing process collect from its customers
17-11    a voluntary contribution on behalf of organizations providing
17-12    fire-fighting activities to the district.  A district that chooses
17-13    to collect a voluntary contribution under this subsection must give
17-14    reasonable notice to its customers that the contribution is
17-15    voluntary.  Water and sewer service may not be terminated as a
17-16    result of failure to pay the voluntary contribution.
17-17          SECTION 24.  Chapter 49, Water Code, is amended by adding
17-18    Subchapter N to read as follows:
17-19                  SUBCHAPTER N.  RECREATIONAL FACILITIES
17-20          Sec. 49.461.  POLICY AND PURPOSE.  (a)  The legislature finds
17-21    that:
17-22                (1)  the provision of parks and recreational facilities
17-23    is necessary and desirable for the health and well-being of the
17-24    people of this state;
17-25                (2)  it is the policy of the state and the purpose of
17-26    this subchapter to encourage persons in districts to provide parks
 18-1    and recreational facilities for their use and benefit;
 18-2                (3)  within constitutional limitations, the power to
 18-3    enact laws vested in the legislature by Section 1, Article III,
 18-4    Texas Constitution, is supreme;
 18-5                (4)  there is no constitutional inhibition that would
 18-6    prohibit the legislature from authorizing districts to acquire,
 18-7    own, develop, construct, improve, manage, operate, and maintain
 18-8    parks and recreational facilities; and
 18-9                (5)  the general legislative power alone is adequate to
18-10    support the enactment of this subchapter without reference to any
18-11    specific constitutional authorization.
18-12          (b)  This subchapter provides complete authority to a
18-13    district to develop and maintain recreational facilities.
18-14          Sec. 49.462.  DEFINITIONS.  In this subchapter:
18-15                (1)  "Recreational facilities" means parks,
18-16    landscaping, parkways, greenbelts, sidewalks, trails, public
18-17    right-of-way beautification projects, and recreational equipment
18-18    and facilities.  The term includes associated street and security
18-19    lighting.
18-20                (2)  "Develop and maintain" means to acquire, own,
18-21    develop, construct, improve, manage, maintain, and operate.
18-22          Sec. 49.463.  AUTHORIZATION OF RECREATIONAL FACILITIES.  In
18-23    addition to the other purposes for which a district is created, a
18-24    district is created for the purpose of developing and maintaining
18-25    recreational facilities for the people in the district.  A district
18-26    may accomplish this purpose as provided in this subchapter.
 19-1          Sec. 49.464.  ACQUISITION OF AND PAYMENT FOR RECREATIONAL
 19-2    FACILITIES.  (a)  A district may not issue bonds supported by ad
 19-3    valorem taxes to pay for the development and maintenance of
 19-4    recreational facilities.
 19-5          (b)  Except as provided by Subsection (a), a district may
 19-6    acquire recreational facilities and obtain funds to develop and
 19-7    maintain them in the same manner as authorized elsewhere in this
 19-8    code for the acquisition, development, and maintenance of other
 19-9    district facilities.  A district may charge fees directly to the
19-10    users of recreational facilities and to water and wastewater
19-11    customers of the district to pay for all or part of the cost of
19-12    their development and maintenance.  To enforce payment of an unpaid
19-13    fee charged under this subsection, the district may:
19-14                (1)  seek legal restitution of the unpaid fee; and
19-15                (2)  refuse use of a recreational facility to the
19-16    person who owes the unpaid fee.
19-17          (c)  The district may not refuse use of facilities or
19-18    services other than recreational facilities to enforce an unpaid
19-19    fee.
19-20          Sec. 49.465.  STANDARDS.  The board by rule shall establish
19-21    standards for recreational facilities to be developed and
19-22    maintained by a district and for the allocation of a district's
19-23    funds for developing and maintaining recreational facilities in
19-24    relation to a district's financial requirements for other purposes.
19-25    To prevent duplication of recreational facilities provided by other
19-26    governmental entities, rules adopted by the board under this
 20-1    section must require a district, before developing recreational
 20-2    facilities, to make findings that the size and location of the
 20-3    facilities have been established in consideration of municipal or
 20-4    county recreational facilities, whether existing or proposed, that
 20-5    serve or will serve the area in which the district is located.
 20-6          SECTION 25.  Subsection (a), Section 51.013, Water Code, is
 20-7    amended to read as follows:
 20-8          (a)  A petition requesting creation of a district shall be
 20-9    signed by a majority of the persons who hold title to land in the
20-10    proposed district which represents a total value of more than 50
20-11    percent of the value of all the land in the proposed district as
20-12    indicated by the [county] tax rolls of the central appraisal
20-13    district.  If there are more than 50 persons holding title to land
20-14    in the proposed district, the petition is sufficient if signed by
20-15    50 of them.
20-16          SECTION 26.  Subchapter D, Chapter 51, Water Code, is amended
20-17    by adding Section 51.122 to read as follows:
20-18          Sec. 51.122.  ADOPTING RULES AND REGULATIONS.  A district may
20-19    adopt and enforce reasonable rules and regulations to:
20-20                (1)  secure and maintain safe, sanitary, and adequate
20-21    plumbing installations, connections, and appurtenances as
20-22    subsidiary parts of the district's sanitary sewer system;
20-23                (2)  preserve the sanitary condition of all water
20-24    controlled by the district;
20-25                (3)  prevent waste or the unauthorized use of water
20-26    controlled by the district;
 21-1                (4)  regulate privileges on any land or any easement
 21-2    owned or controlled by the district; or
 21-3                (5)  provide and regulate a safe and adequate
 21-4    freshwater distribution system.
 21-5          SECTION 27.  Chapter 51, Water Code, is amended by adding
 21-6    Subchapter E to read as follows:
 21-7                        SUBCHAPTER E.  ENFORCEMENT
 21-8          Sec. 51.221.  PENALTY FOR VIOLATION OF REGULATION.  A person
 21-9    who violates a regulation adopted by a district under this chapter
21-10    or other law commits an offense.  An offense under this section is
21-11    a Class C misdemeanor.
21-12          SECTION 28.  Section 53.021, Water Code, is amended to read
21-13    as follows:
21-14          Sec. 53.021.  OFFICERS TO BE ELECTED.  In the election, five
21-15    supervisors [and the tax assessor and collector] are elected.
21-16          SECTION 29.  Section 54.014, Water Code, is amended to read
21-17    as follows:
21-18          Sec. 54.014.  PETITION.  When it is proposed to create a
21-19    district, a petition requesting creation shall be filed with the
21-20    commission.  The petition shall be signed by a majority in value of
21-21    the holders of title of the land within the proposed district, as
21-22    indicated by the [county] tax rolls of the central appraisal
21-23    district.  If there are more than 50 persons holding title to the
21-24    land in the proposed district, as indicated by the [county] tax
21-25    rolls of the central appraisal district, the petition is sufficient
21-26    if it is signed by 50 holders of title to the land.
 22-1          SECTION 30.  Section 54.236, Water Code, is amended to read
 22-2    as follows:
 22-3          Sec. 54.236.  Street or Security Lighting.  Subject to the
 22-4    provisions of this section, a district may purchase, install
 22-5    [accept], operate, and maintain street lighting or security
 22-6    lighting within public utility easements or public rights-of-way
 22-7    within the boundaries of the district.  [Such street or security
 22-8    lighting facilities must have been constructed by an owner or
 22-9    developer of property within the district and must have been
22-10    required by a city as a condition to the city granting its consent
22-11    to the creation of the district pursuant to Section 54.016 of this
22-12    code.]  A district may not issue bonds supported by ad valorem
22-13    taxes to pay for the purchase, installation, [development] and
22-14    maintenance of street or security lighting.
22-15          SECTION 31.  Subdivision (1), Section 54.772, Water Code, is
22-16    amended to read as follows:
22-17                (1)  "Recreational facilities" means parks,
22-18    landscaping, parkways, greenbelts, sidewalks, trails, public
22-19    right-of-way beautification projects, and recreational equipment
22-20    and facilities.  The term includes associated street and security
22-21    lighting.
22-22          SECTION 32.  Subsection (a), Section 54.774, Water Code, is
22-23    amended to read as follows:
22-24          (a)  A district may not issue bonds supported by ad valorem
22-25    taxes to pay for the development and maintenance of recreational
22-26    facilities.
 23-1          SECTION 33.  Subsection (a), Section 57.092, Water Code, is
 23-2    amended to read as follows:
 23-3          (a)  The district may enter into all necessary and proper
 23-4    contracts and employ all persons and means necessary to purchase,
 23-5    acquire, build, construct, complete, carry out, maintain, protect,
 23-6    and, in case of necessity, add to and rebuild all works and
 23-7    improvements [within the district] necessary or proper to fully
 23-8    accomplish a reclamation plan lawfully adopted for the district.
 23-9          SECTION 34.  Subchapter D, Chapter 57, Water Code, is amended
23-10    by adding Section 57.093 to read as follows:
23-11          Sec. 57.093.  ADOPTING RULES AND REGULATIONS.  A district may
23-12    adopt and enforce reasonable rules and regulations to:
23-13                (1)  preserve the sanitary condition of all water
23-14    controlled by the district;
23-15                (2)  prevent waste or the unauthorized use of water
23-16    controlled by the district;
23-17                (3)  regulate privileges on any land or any easement
23-18    owned or controlled by the district;
23-19                (4)  regulate the design and construction of
23-20    improvements and facilities that outfall, connect, or tie into
23-21    district improvements and facilities; or
23-22                (5)  require the district's review and approval of
23-23    drainage plans for property within the district.
23-24          SECTION 35.  Subchapter Z, Chapter 402, Local Government
23-25    Code, is amended by adding Section 402.908 to read as follows:
23-26          Sec. 402.908.  SALE OF WATER OR SEWER SYSTEM.  A
 24-1    municipality, without an election, may sell to a water district
 24-2    operating under the authority of Section 59, Article XVI, Texas
 24-3    Constitution, a water or sewer system owned by the municipality.
 24-4          SECTION 36.  Sections 53.024, 57.152, and 57.153, Water Code,
 24-5    are repealed.
 24-6          SECTION 37.  (a)  In this section "district" means a
 24-7    conservation and reclamation district created under Section 52,
 24-8    Article III, and Section 59, Article XVI, Texas Constitution.
 24-9          (b)  The following are validated and confirmed in all
24-10    respects:
24-11                (1)  the creation of a district and all proceedings
24-12    related to the creation of the district; and
24-13                (2)  any act or proceeding of a district, including
24-14    elections, not excepted in this Act, taken two years before the
24-15    effective date of this Act, is validated as of the date on which it
24-16    occurred.
24-17          (c)  This section does not:
24-18                (1)  apply to an act, a proceeding, a director or other
24-19    official, or a bond or other obligation, the validity of which or
24-20    of whom is the subject of litigation that is pending on the
24-21    effective date of this Act; and
24-22                (2)  validate any governmental act or proceeding that,
24-23    under the law of this state at the time the act or proceeding
24-24    occurred, was a misdemeanor or a felony.
24-25          SECTION 38.  This Act takes effect immediately if it receives
24-26    a vote of two-thirds of all the members elected to each house, as
 25-1    provided by Section 39, Article III, Texas Constitution.  If this
 25-2    Act does not receive the vote necessary for immediate effect, this
 25-3    Act takes effect September 1, 2001.