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
3-7 amending Subsection (e) and adding Subsection (f) to read as
3-8 follows:
3-9 (e) A district that is required under Section 49.181 to
3-10 obtain approval by the commission of the district's issuance of
3-11 bonds must obtain approval by the executive director before the
3-12 district enters into an obligation under this section to collect
3-13 tax for debt that exceeds three years. This subsection does not
3-14 apply to contract taxes that are levied to pay for a district's
3-15 share of bonds that have been issued by another district and
3-16 approved by the commission or for bonds issued by a municipality.
3-17 (f) Sections 26.04, 26.05, and 26.07, Tax Code, do not apply
3-18 to a tax levied and collected for payments made under a contract
3-19 approved in accordance with this section.
3-20 SECTION 8. Subsection (c), Section 49.151, Water Code, is
3-21 amended to read as follows:
3-22 (c) The board may [by resolution] allow disbursements of
3-23 district money to be transferred by federal reserve wire system.
3-24 The board by resolution may allow the wire transfers to accounts in
3-25 the name of the district or accounts not in the name of the
3-26 district.
4-1 SECTION 9. Subsection (a), Section 49.155, Water Code, is
4-2 amended to read as follows:
4-3 (a) The district may pay out of bond proceeds or other
4-4 available funds of the district all expenses of the district
4-5 authorized by this section, including expenses reasonable and
4-6 necessary to effect the issuance, sale, and delivery of bonds as
4-7 determined by the board, including, but not limited to, the
4-8 following:
4-9 (1) interest during construction [not to exceed three
4-10 years after acceptance of the project];
4-11 (2) capitalized interest not to exceed three years'
4-12 interest;
4-13 (3) reasonable and necessary reserve funds not to
4-14 exceed two years' interest on the bonds;
4-15 (4) interest on funds advanced to the district;
4-16 (5) financial advisor, bond counsel, attorney, and
4-17 other consultant fees;
4-18 (6) paying agent, registrar, and escrow agent fees;
4-19 (7) right-of-way acquisition;
4-20 (8) underwriter's discounts or premiums;
4-21 (9) engineering fees, including surveying expenses and
4-22 plan review fees;
4-23 (10) commission and attorney general fees;
4-24 (11) printing costs;
4-25 (12) all organizational, administrative, and operating
4-26 costs during creation and construction periods;
5-1 (13) the cost of investigation and making plans,
5-2 including preliminary plans and associated engineering reports;
5-3 (14) land required for stormwater control;
5-4 (15) costs associated with requirements for federal
5-5 stormwater permits; and
5-6 (16) costs associated with requirements for endangered
5-7 species permits.
5-8 SECTION 10. Subsection (b), Section 49.183, Water Code, is
5-9 amended to read as follows:
5-10 (b) Except for refunding bonds, or bonds sold to a state or
5-11 federal agency, [after any bonds are finally approved and] before
5-12 any bonds [they] are sold by a district, the board shall publish an
5-13 appropriate notice of the sale:
5-14 (1) at least one time not less than 10 days before the
5-15 date of sale in a newspaper of general circulation in the county or
5-16 counties in which the district is located; and
5-17 (2) at least one time in one or more recognized
5-18 financial publications of general circulation in the state as
5-19 approved by the state attorney general.
5-20 SECTION 11. Section 49.184, Water Code, is amended by adding
5-21 Subsection (f) to read as follows:
5-22 (f) In any proceeding concerning the validity of the
5-23 creation of a district or the annexation of property by a district,
5-24 a certificate of ownership as certified by the central appraisal
5-25 district of the county or counties in which the property is located
5-26 creates a presumption of ownership, and additional proof of
6-1 ownership is not required unless there is substantial evidence in
6-2 the official deed records of the county in which the property is
6-3 located to rebut the presumption. On request by a district, the
6-4 central appraisal district of the county or counties in which the
6-5 district is located shall furnish certificates of ownership and may
6-6 charge reasonable fees to recover the actual costs incurred in
6-7 preparing the certificates.
6-8 SECTION 12. Section 49.212, Water Code, is amended by
6-9 amending Subsections (a) and (d) and adding Subsection (e) to read
6-10 as follows:
6-11 (a) A district may adopt and enforce all necessary charges,
6-12 mandatory fees, or rentals, in addition to taxes, for providing or
6-13 making available any district facility or service, including
6-14 fire-fighting activities provided under Section 49.351.
6-15 (d) Notwithstanding any provision of law to the contrary, a
6-16 district that charges a fee that is an impact fee as described in
6-17 Section 395.001(4), Local Government Code, must comply with Chapter
6-18 395, Local Government Code. A charge or fee by a district for
6-19 construction, installation, or inspection of a tap or connection to
6-20 district water, sanitary sewer, or drainage facilities, including
6-21 all necessary service lines and meters, or for wholesale facilities
6-22 that serve such water, sanitary sewer, or drainage facilities that
6-23 (i) does not exceed three times the actual and reasonable costs to
6-24 the district for such tap or connection, [or] (ii) if made to a
6-25 nontaxable entity for retail or wholesale service, does not exceed
6-26 the actual costs to the district for such work and for all
7-1 facilities that are necessary to provide district services to such
7-2 entity and that are financed or are to be financed in whole or in
7-3 part by tax-supported or revenue bonds of the district, or (iii) if
7-4 made by a district for retail or wholesale service on land that at
7-5 the time of platting was not being provided with water or
7-6 wastewater service by the district, shall not be deemed to be an
7-7 impact fee under Chapter 395, Local Government Code. A district
7-8 may pledge the revenues of the district's utility system to pay the
7-9 principal of or interest on bonds issued to construct the capital
7-10 improvements for which a fee was imposed under this subsection, and
7-11 money received from the fees shall be considered revenues of the
7-12 district's utility system for purposes of the district's bond
7-13 covenants.
7-14 (e) Chapter 2007, Government Code, does not apply to a tax
7-15 levied, a standby fee imposed, or a charge, fee, or rental adopted
7-16 or enforced by a district under this chapter, another chapter of
7-17 this code, or Chapter 395, Local Government Code.
7-18 SECTION 13. Section 49.218, Water Code, is amended by adding
7-19 a new Subsection (d), relettering existing Subsection (d) as
7-20 Subsection (f), and adding Subsections (e) and (g) to read as
7-21 follows:
7-22 (d) A district or water supply corporation may require a
7-23 service applicant, as a condition of service, to grant a permanent
7-24 recorded easement dedicated to the district or water supply
7-25 corporation that will provide a reasonable right of access and use
7-26 to allow the district or water supply corporation to construct,
8-1 install, maintain, replace, upgrade, inspect, and test any
8-2 facilities necessary to serve that applicant as well as the
8-3 district's or water supply corporation's purposes in providing
8-4 systemwide service. A district or water supply corporation may not
8-5 require an applicant to provide an easement for a service line for
8-6 the sole benefit of another applicant.
8-7 (e) As a condition of service to a new subdivision, a
8-8 district or water supply corporation may require a developer to
8-9 provide permanent recorded easements to and throughout the
8-10 subdivision sufficient to construct, install, maintain, replace,
8-11 upgrade, inspect, and test any facilities necessary to serve the
8-12 subdivision's anticipated service demands on full occupancy.
8-13 (f) A district or water supply corporation may also lease
8-14 property from others for its use on such terms and conditions as
8-15 the board of the district or the board of directors of the water
8-16 supply corporation may determine to be advantageous.
8-17 (g) Property acquired under this section, or any other law
8-18 allowing the acquisition of property by a district or water supply
8-19 corporation, and owned by a district or water supply corporation is
8-20 not subject to assessments, charges, fees, or dues imposed by a
8-21 nonprofit corporation under Chapter 204, Property Code.
8-22 SECTION 14. Section 49.226, Water Code, is amended to read
8-23 as follows:
8-24 Sec. 49.226. SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
8-25 PERSONAL PROPERTY. (a) Any personal property valued at more than
8-26 $300 or any land or interest in land owned by the district which is
9-1 found by the board to be surplus and is not needed by the district
9-2 may be sold under order of the board either by public or private
9-3 sale, or the land, interest in land, or personal property may be
9-4 exchanged for other land, interest in land, or personal property
9-5 needed by the district. Except as provided in Subsection (b),
9-6 land, interest in land, or personal property must be exchanged for
9-7 like fair market value, which value may be determined by the
9-8 district.
9-9 (b) Any property dedicated to or acquired by the district
9-10 without expending district funds may be abandoned or released to
9-11 the original grantor, the grantor's heirs, assigns, executors, or
9-12 successors upon terms and conditions deemed necessary or
9-13 advantageous to the district and without receiving compensation for
9-14 such abandonment or release. District property may also be
9-15 abandoned, released, exchanged, or transferred to another district,
9-16 municipality, county, countywide agency, or authority upon terms
9-17 and conditions deemed necessary or advantageous to the district.
9-18 Narrow strips of property resulting from boundary or surveying
9-19 conflicts or similar causes, or from insubstantial encroachments by
9-20 abutting property owners, or property of larger configuration that
9-21 has been subject to encroachments by abutting property owners for
9-22 more than 25 years may be abandoned, released, exchanged, or
9-23 transferred to such abutting owners upon terms and conditions
9-24 deemed necessary or advantageous to the district. Chapter 272,
9-25 Local Government Code, does [shall] not apply to this section
9-26 [subsection].
10-1 (c) Before either a public or a private sale of real
10-2 property [not required by the district], the district shall give
10-3 notice of the intent to sell by publishing notice once a week for
10-4 two consecutive weeks in one or more newspapers with general
10-5 circulation in the district.
10-6 (d) If the district has outstanding bonds secured by a
10-7 pledge of tax revenues, the proceeds of the sale of property [not
10-8 required by the district] shall be applied to retire outstanding
10-9 bonds of the district [when required by the district's applicable
10-10 bond resolutions].
10-11 (e) If the district does not have any outstanding bonds, the
10-12 proceeds derived from the sale of real or [the] personal property
10-13 [or land not required by the district] may be used for any lawful
10-14 purpose.
10-15 SECTION 15. Subchapter H, Chapter 49, Water Code, is amended
10-16 by adding Section 49.234 to read as follows:
10-17 Sec. 49.234. PROHIBITION OF CERTAIN PRIVATE ON-SITE
10-18 FACILITIES. (a) A district or water supply corporation that
10-19 operates a wastewater collection system to serve land within its
10-20 boundaries by rule may prohibit the installation of private on-site
10-21 wastewater holding or treatment facilities on land within the
10-22 district that is not served by the district's or corporation's
10-23 wastewater collection system. A district or corporation that has
10-24 not received funding under Subchapter K, Chapter 17, may not
10-25 require a property owner who has already installed an on-site
10-26 wastewater holding or treatment facility to connect to the
11-1 district's or corporation's wastewater collection system.
11-2 (b) A district or water supply corporation that prohibits an
11-3 installation described by Subsection (a) shall agree to pay the
11-4 owner of a particular tract the costs of connecting the tract to
11-5 the district's or corporation's wastewater collection system if the
11-6 distance along a public right-of-way or utility easement from the
11-7 nearest point of the district's or corporation's wastewater
11-8 collection system to the boundary line of the tract requiring
11-9 wastewater collection services is 300 feet or more, subject to
11-10 commission rules regarding reimbursement of those costs.
11-11 SECTION 16. Subsection (c), Section 49.271, Water Code, is
11-12 amended to read as follows:
11-13 (c) The district may adopt minimum criteria for the
11-14 qualifications of bidders on its construction contracts and for
11-15 sureties issuing payment and performance bonds. For construction
11-16 contracts over $25,000, the district shall require a person who
11-17 bids to submit a certified or cashier's check on a responsible bank
11-18 in the state equal to at least two percent of the total amount of
11-19 the bid, or a bid bond of at least two percent of the total amount
11-20 of the bid issued by a surety legally authorized to do business in
11-21 this state, as a good faith deposit to ensure execution of the
11-22 contract. If the successful bidder fails or refuses to enter into
11-23 a proper contract with the district, or fails or refuses to furnish
11-24 the payment and performance bonds [bond] required by law, the
11-25 bidder forfeits the deposit. The payment, performance, and bid
11-26 bonding requirements of this subsection do not apply to a contract
12-1 for the purchase of equipment, materials, or machinery not
12-2 otherwise incorporated into a construction project.
12-3 SECTION 17. Subsections (i) and (j), Section 49.273, Water
12-4 Code, are amended to read as follows:
12-5 (i) If changes in plans or specifications are necessary
12-6 after the performance of the contract is begun, or if it is
12-7 necessary to decrease or increase the quantity of the work to be
12-8 performed or of the materials, equipment, or supplies to be
12-9 furnished, the board may approve change orders making the changes.
12-10 The aggregate of the change orders may not increase the original
12-11 contract price by more than 10 percent. Additional change [Change]
12-12 orders [to contracts] may be issued only as a result of
12-13 unanticipated conditions encountered during construction, repair,
12-14 or renovation or changes in regulatory criteria or to facilitate
12-15 project coordination with other political entities.
12-16 (j) The board is not required to advertise or seek
12-17 competitive bids for the repair of district facilities if the scope
12-18 or extent of the repair work cannot be readily ascertained or if
12-19 the nature of the repair work does not readily lend itself to
12-20 competitive bidding [by the district's operator if the cost of the
12-21 repair is less than or equal to the advertising requirements of
12-22 this section].
12-23 SECTION 18. Subsection (a), Section 49.278, Water Code, is
12-24 amended to read as follows:
12-25 (a) This subchapter does not apply to:
12-26 (1) equipment, materials, or machinery purchased by
13-1 the district at an auction that is open to the public;
13-2 (2) contracts for personal or professional services or
13-3 for a utility service operator;
13-4 (3) contracts made by a district engaged in the
13-5 distribution and sale of electric energy to the public; [or]
13-6 (4) contracts for services or property for which there
13-7 is only one source or for which it is otherwise impracticable to
13-8 obtain competition; or
13-9 (5) high technology procurements.
13-10 SECTION 19. Subchapter I, Chapter 49, Water Code, is amended
13-11 by adding Section 49.279 to read as follows:
13-12 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
13-13 alternative procedures provided by Section 2258.022, Government
13-14 Code:
13-15 (1) a district located wholly or partially within one
13-16 or more municipalities or within the extraterritorial jurisdiction
13-17 of one or more municipalities may determine its prevailing wage
13-18 rate for public works by adopting the prevailing wage rate of:
13-19 (A) one of the municipalities; or
13-20 (B) the county in which the district is located
13-21 or, if the county in which the district is located has not adopted
13-22 a wage rate, the prevailing wage rate of a county adjacent to the
13-23 county in which the district is located; and
13-24 (2) a district not located wholly or partially within
13-25 the extraterritorial jurisdiction of a municipality may determine
13-26 the district's prevailing wage rate by adopting the prevailing wage
14-1 rate of the county in which the district is located or, if the
14-2 county in which the district is located has not adopted a wage
14-3 rate, the wage rate of a county adjacent to the county in which the
14-4 district is located.
14-5 SECTION 20. Subsection (b), Section 49.302, Water Code, is
14-6 amended to read as follows:
14-7 (b) A petition requesting the annexation of a defined area
14-8 signed by a majority in value of the owners of land in the defined
14-9 area, as shown by the tax rolls of the central appraisal district
14-10 of the county or counties in which such area is located, or signed
14-11 by 50 landowners if the number of landowners is more than 50, shall
14-12 describe the land by metes and bounds or by lot and block number if
14-13 there is a recorded plat of the area and shall be filed with the
14-14 secretary of the board.
14-15 SECTION 21. Subsection (a), Section 49.304, Water Code, is
14-16 amended to read as follows:
14-17 (a) If the board determines that an exclusion hearing should
14-18 be held as provided by Section 49.303(a) or (c), or if a written
14-19 petition requesting an exclusion hearing is filed with the
14-20 secretary of the board as provided by [in] Section 49.303(b)
14-21 [49.303], the board shall give notice of the time and place of a
14-22 hearing to announce its own conclusions relating to land or other
14-23 property to be excluded and to receive petitions for exclusion of
14-24 land or other property.
14-25 SECTION 22. Subchapter J, Chapter 49, Water Code, is amended
14-26 by adding Section 49.315 to read as follows:
15-1 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
15-2 (a) A district may add or exclude land in accordance with this
15-3 subchapter:
15-4 (1) after a district is created by order of the
15-5 commission or another governmental entity or by special Act of the
15-6 legislature; and
15-7 (2) before a confirmation election is held as required
15-8 by Section 49.102.
15-9 (b) If land is added or excluded as provided by this
15-10 section, the election to confirm the district required by Section
15-11 49.102 shall be to confirm the district as modified.
15-12 SECTION 23. Section 49.351, Water Code, is amended by
15-13 amending Subsections (a), (b), and (c) and (g) through (j) and
15-14 adding Subsection (l) to read as follows:
15-15 (a) A district providing potable water or sewer service to
15-16 household users may establish, operate, and maintain a fire
15-17 department to perform all fire-fighting activities within the
15-18 district as provided in this subchapter and may issue bonds or
15-19 impose a mandatory fee, with voter approval, [bonds] for financing
15-20 a plan approved in accordance with this section, [the establishment
15-21 of the fire department] including the construction and purchase of
15-22 necessary buildings, facilities, land, and equipment and the
15-23 provision of an adequate water supply.
15-24 (b) After approval of the district electors of a plan to
15-25 operate, [or] jointly operate, or jointly fund the operation of a
15-26 fire department, and after complying with Subsections (g), (h), and
16-1 (i), the district or districts shall provide an adequate system and
16-2 water supply for fire-fighting purposes, may purchase necessary
16-3 land, may construct and purchase necessary buildings, facilities,
16-4 and equipment, and may employ or contract with a fire department to
16-5 employ all necessary personnel including supervisory personnel to
16-6 operate the fire department.
16-7 (c) Bonds [issued] for financing a plan approved in
16-8 accordance with this section [establishment of the fire department]
16-9 shall be authorized and may be issued, and a district shall be
16-10 authorized to levy a tax to pay the principal of and interest on
16-11 such bonds, as provided by law for authorization and issuance of
16-12 other bonds of the district.
16-13 (g) A district or districts proposing to act jointly shall
16-14 develop a detailed plan for the establishment, operation, and
16-15 maintenance of the proposed department, including a detailed
16-16 presentation of all financial requirements. If a district is
16-17 entering into a contract under Subsection (e), the district shall
16-18 develop a plan that describes [in detail] the contract and
16-19 [facilities and equipment to be devoted to service to the district
16-20 and all proposals for providing the service and that] includes a
16-21 presentation of the financial requirements under the contract. A
16-22 plan required by this subsection may be included in a plan or
16-23 report otherwise required by this title for the creation of a
16-24 district or may be submitted to the commission for approval at any
16-25 time after the creation of the district. [Before adoption of a
16-26 plan and any contract by the district, the board shall hold a
17-1 hearing at which any person residing in the district may present
17-2 testimony for and against the proposed plan and any proposed
17-3 contract. Notice of the hearing and the place at which the plan
17-4 and any contract may be examined shall be posted in two public
17-5 places within the district at least 10 days before the date of the
17-6 hearing.]
17-7 (h) If a plan was not approved by the commission at the time
17-8 of the district's creation, after [After] adoption of the plan and
17-9 any contract by the board, the plan and financial presentation,
17-10 together with any contract and a written report in a form
17-11 prescribed by the executive director describing existing fire
17-12 departments and fire-fighting services available within 25 miles of
17-13 the boundaries of the district, shall be submitted to the executive
17-14 director for consideration by the commission under rules adopted by
17-15 the commission. [Before approval or disapproval, the commission
17-16 shall hold a hearing. Notice of the hearing before the commission
17-17 shall be posted by the board in at least two public places in the
17-18 district at least five days before the hearing.] Before the
17-19 commission approves the application, it must find that it is
17-20 economically feasible for the district to implement the plan and
17-21 meet the provisions of any contract and shall take into
17-22 consideration in giving its approval the general financial
17-23 condition of the district and the economic feasibility of the
17-24 district carrying out the plan or meeting the obligations of the
17-25 contract. A plan approved by the commission as part of the
17-26 creation of a district does not require further commission approval
18-1 unless the district materially alters the plan.
18-2 (i) After approval of a plan by the commission, the district
18-3 shall submit to the electors of the district at the election to
18-4 approve bonds or to impose a mandatory fee for financing the plan,
18-5 or if no bonds or fees are to be approved, at an election called
18-6 for approval of the plan, which may be held in conjunction with an
18-7 election required by Section 49.102, the proposition of whether or
18-8 not the plan should be implemented or entered into by the district.
18-9 The ballots at the election shall be printed, as applicable, to
18-10 provide for voting for or against the proposition: "The
18-11 implementation of the plan for (operation/joint operation) of a
18-12 fire department"; or "The plan and contract to provide
18-13 fire-fighting services for the district."
18-14 (j) [No funds of the district may be used to establish a
18-15 fire department, to enter into joint operation of a fire
18-16 department, or to contract for fire-fighting services without the
18-17 approval of a plan by the electors as provided in this section.
18-18 However, the district may use available funds for preparation of a
18-19 plan and any contract.] The operation of a fire department or
18-20 provision of fire-fighting services is an essential public
18-21 necessity, and a district may discontinue any and all services,
18-22 including water and sewer service, to any person who fails to
18-23 timely pay fire department service fees or any other assessment
18-24 adopted by the district to support the fire department or the
18-25 provision of fire-fighting services.
18-26 (l) Notwithstanding the requirements of Subsections (a)-(j),
19-1 a district providing potable water or sewer service to household
19-2 users may as part of its billing process collect from its customers
19-3 a voluntary contribution on behalf of organizations providing
19-4 fire-fighting activities to the district. A district that chooses
19-5 to collect a voluntary contribution under this subsection must give
19-6 reasonable notice to its customers that the contribution is
19-7 voluntary. Water and sewer service may not be terminated as a
19-8 result of failure to pay the voluntary contribution.
19-9 SECTION 24. Chapter 49, Water Code, is amended by adding
19-10 Subchapter N to read as follows:
19-11 SUBCHAPTER N. RECREATIONAL FACILITIES
19-12 Sec. 49.461. POLICY AND PURPOSE. (a) The legislature finds
19-13 that:
19-14 (1) the provision of parks and recreational facilities
19-15 is necessary and desirable for the health and well-being of the
19-16 people of this state;
19-17 (2) it is the policy of the state and the purpose of
19-18 this subchapter to encourage persons in districts to provide parks
19-19 and recreational facilities for their use and benefit;
19-20 (3) within constitutional limitations, the power to
19-21 enact laws vested in the legislature by Section 1, Article III,
19-22 Texas Constitution, is supreme;
19-23 (4) there is no constitutional inhibition that would
19-24 prohibit the legislature from authorizing districts to acquire,
19-25 own, develop, construct, improve, manage, operate, and maintain
19-26 parks and recreational facilities; and
20-1 (5) the general legislative power alone is adequate to
20-2 support the enactment of this subchapter without reference to any
20-3 specific constitutional authorization.
20-4 (b) This subchapter provides complete authority to a
20-5 district to develop and maintain recreational facilities.
20-6 Sec. 49.462. DEFINITIONS. In this subchapter:
20-7 (1) "Recreational facilities" means parks,
20-8 landscaping, parkways, greenbelts, sidewalks, trails, public
20-9 right-of-way beautification projects, and recreational equipment
20-10 and facilities. The term includes associated street and security
20-11 lighting.
20-12 (2) "Develop and maintain" means to acquire, own,
20-13 develop, construct, improve, manage, maintain, and operate.
20-14 Sec. 49.463. AUTHORIZATION OF RECREATIONAL FACILITIES. In
20-15 addition to the other purposes for which a district is created, a
20-16 district is created for the purpose of developing and maintaining
20-17 recreational facilities for the people in the district. A district
20-18 may accomplish this purpose as provided in this subchapter.
20-19 Sec. 49.464. ACQUISITION OF AND PAYMENT FOR RECREATIONAL
20-20 FACILITIES. (a) A district may not issue bonds supported by ad
20-21 valorem taxes to pay for the development and maintenance of
20-22 recreational facilities.
20-23 (b) Except as provided by Subsection (a), a district may
20-24 acquire recreational facilities and obtain funds to develop and
20-25 maintain them in the same manner as authorized elsewhere in this
20-26 code for the acquisition, development, and maintenance of other
21-1 district facilities. A district may charge fees directly to the
21-2 users of recreational facilities and to water and wastewater
21-3 customers of the district to pay for all or part of the cost of
21-4 their development and maintenance. To enforce payment of an unpaid
21-5 fee charged under this subsection, the district may:
21-6 (1) seek legal restitution of the unpaid fee; and
21-7 (2) refuse use of a recreational facility to the
21-8 person who owes the unpaid fee.
21-9 (c) The district may not refuse use of facilities or
21-10 services other than recreational facilities to enforce an unpaid
21-11 fee.
21-12 Sec. 49.465. STANDARDS. The board by rule shall establish
21-13 standards for recreational facilities to be developed and
21-14 maintained by a district and for the allocation of a district's
21-15 funds for developing and maintaining recreational facilities in
21-16 relation to a district's financial requirements for other purposes.
21-17 To prevent duplication of recreational facilities provided by other
21-18 governmental entities, rules adopted by the board under this
21-19 section must require a district, before developing recreational
21-20 facilities, to make findings that the size and location of the
21-21 facilities have been established in consideration of municipal or
21-22 county recreational facilities, whether existing or proposed, that
21-23 serve or will serve the area in which the district is located.
21-24 SECTION 25. Subsection (a), Section 51.013, Water Code, is
21-25 amended to read as follows:
21-26 (a) A petition requesting creation of a district shall be
22-1 signed by a majority of the persons who hold title to land in the
22-2 proposed district which represents a total value of more than 50
22-3 percent of the value of all the land in the proposed district as
22-4 indicated by the [county] tax rolls of the central appraisal
22-5 district. If there are more than 50 persons holding title to land
22-6 in the proposed district, the petition is sufficient if signed by
22-7 50 of them.
22-8 SECTION 26. Subchapter D, Chapter 51, Water Code, is amended
22-9 by adding Section 51.122 to read as follows:
22-10 Sec. 51.122. ADOPTING RULES AND REGULATIONS. A district may
22-11 adopt and enforce reasonable rules and regulations to:
22-12 (1) secure and maintain safe, sanitary, and adequate
22-13 plumbing installations, connections, and appurtenances as
22-14 subsidiary parts of the district's sanitary sewer system;
22-15 (2) preserve the sanitary condition of all water
22-16 controlled by the district;
22-17 (3) prevent waste or the unauthorized use of water
22-18 controlled by the district;
22-19 (4) regulate privileges on any land or any easement
22-20 owned or controlled by the district; or
22-21 (5) provide and regulate a safe and adequate
22-22 freshwater distribution system.
22-23 SECTION 27. Chapter 51, Water Code, is amended by adding
22-24 Subchapter E to read as follows:
22-25 SUBCHAPTER E. ENFORCEMENT
22-26 Sec. 51.221. PENALTY FOR VIOLATION OF REGULATION. A person
23-1 who violates a regulation adopted by a district under this chapter
23-2 or other law commits an offense. An offense under this section is
23-3 a Class C misdemeanor.
23-4 SECTION 28. Section 53.021, Water Code, is amended to read
23-5 as follows:
23-6 Sec. 53.021. OFFICERS TO BE ELECTED. In the election, five
23-7 supervisors [and the tax assessor and collector] are elected.
23-8 SECTION 29. Section 54.014, Water Code, is amended to read
23-9 as follows:
23-10 Sec. 54.014. PETITION. When it is proposed to create a
23-11 district, a petition requesting creation shall be filed with the
23-12 commission. The petition shall be signed by a majority in value of
23-13 the holders of title of the land within the proposed district, as
23-14 indicated by the [county] tax rolls of the central appraisal
23-15 district. If there are more than 50 persons holding title to the
23-16 land in the proposed district, as indicated by the [county] tax
23-17 rolls of the central appraisal district, the petition is sufficient
23-18 if it is signed by 50 holders of title to the land.
23-19 SECTION 30. Section 54.236, Water Code, is amended to read
23-20 as follows:
23-21 Sec. 54.236. Street or Security Lighting. Subject to the
23-22 provisions of this section, a district may purchase, install
23-23 [accept], operate, and maintain street lighting or security
23-24 lighting within public utility easements or public rights-of-way
23-25 within the boundaries of the district. [Such street or security
23-26 lighting facilities must have been constructed by an owner or
24-1 developer of property within the district and must have been
24-2 required by a city as a condition to the city granting its consent
24-3 to the creation of the district pursuant to Section 54.016 of this
24-4 code.] A district may not issue bonds supported by ad valorem
24-5 taxes to pay for the purchase, installation, [development] and
24-6 maintenance of street or security lighting.
24-7 SECTION 31. Subdivision (1), Section 54.772, Water Code, is
24-8 amended to read as follows:
24-9 (1) "Recreational facilities" means parks,
24-10 landscaping, parkways, greenbelts, sidewalks, trails, public
24-11 right-of-way beautification projects, and recreational equipment
24-12 and facilities. The term includes associated street and security
24-13 lighting.
24-14 SECTION 32. Subsection (a), Section 54.774, Water Code, is
24-15 amended to read as follows:
24-16 (a) A district may not issue bonds supported by ad valorem
24-17 taxes to pay for the development and maintenance of recreational
24-18 facilities.
24-19 SECTION 33. Subsection (a), Section 57.092, Water Code, is
24-20 amended to read as follows:
24-21 (a) The district may enter into all necessary and proper
24-22 contracts and employ all persons and means necessary to purchase,
24-23 acquire, build, construct, complete, carry out, maintain, protect,
24-24 and, in case of necessity, add to and rebuild all works and
24-25 improvements [within the district] necessary or proper to fully
24-26 accomplish a reclamation plan lawfully adopted for the district.
25-1 SECTION 34. Subchapter D, Chapter 57, Water Code, is amended
25-2 by adding Section 57.093 to read as follows:
25-3 Sec. 57.093. ADOPTING RULES AND REGULATIONS. A district may
25-4 adopt and enforce reasonable rules and regulations to:
25-5 (1) preserve the sanitary condition of all water
25-6 controlled by the district;
25-7 (2) prevent waste or the unauthorized use of water
25-8 controlled by the district;
25-9 (3) regulate privileges on any land or any easement
25-10 owned or controlled by the district;
25-11 (4) regulate the design and construction of
25-12 improvements and facilities that outfall, connect, or tie into
25-13 district improvements and facilities; or
25-14 (5) require the district's review and approval of
25-15 drainage plans for property within the district.
25-16 SECTION 35. Subchapter B, Chapter 101, Civil Practice and
25-17 Remedies Code, is amended by adding Section 101.0211 to read as
25-18 follows:
25-19 Sec. 101.0211. NO LIABILITY FOR JOINT ENTERPRISE. The
25-20 common law doctrine of vicarious liability because of participation
25-21 in a joint enterprise does not impose liability on a water district
25-22 created pursuant to either Sections 52(b)(1) and (2), Article III,
25-23 or Section 59, Article XVI, Texas Constitution, regardless of how
25-24 created, for a claim brought under this chapter.
25-25 SECTION 36. Subchapter B, Chapter 402, Local Government
25-26 Code, is amended by adding Section 402.0205 to read as follows:
26-1 Sec. 402.0205. REVENUE BONDS TO PAY FOR DISTRICT SERVICES
26-2 UNDER CONTRACT. (a) In this section, "district" has the meaning
26-3 assigned by Section 49.001, Water Code.
26-4 (b) If a district contracts with a municipality to provide
26-5 all or part of the water or wastewater services to the
26-6 municipality, the municipality may issue bonds payable from the
26-7 revenues of its water and wastewater system to provide funds to
26-8 make payments owed by the municipality to the district under the
26-9 contract.
26-10 SECTION 37. Subchapter Z, Chapter 402, Local Government
26-11 Code, is amended by adding Section 402.908 to read as follows:
26-12 Sec. 402.908. SALE OF WATER OR SEWER SYSTEM. A
26-13 municipality, without an election, may sell to a water district
26-14 operating under the authority of Section 59, Article XVI, Texas
26-15 Constitution, a water or sewer system owned by the municipality.
26-16 SECTION 38. Subchapter Z, Chapter 402, Local Government
26-17 Code, is amended by adding Section 402.909 to read as follows:
26-18 Sec. 402.909. PROHIBITED EMPLOYMENT OF OR CONTRACTING WITH
26-19 FORMER TRUSTEE OR BOARD MEMBER. (a) This section applies to a
26-20 municipality that creates a board of trustees or other board to
26-21 manage and control a water, wastewater, storm water, or drainage
26-22 utility system that the municipality owns.
26-23 (b) The municipality or a board of trustees or other board
26-24 described by Subsection (a) may not employ or contract with an
26-25 individual who was a member of the board before the second
26-26 anniversary of the date the individual ceased to be a member of the
27-1 board.
27-2 SECTION 39. Subsections (a) and (b), Section 4.03, Chapter
27-3 1029, Acts of the 76th Legislature, Regular Session, 1999, are
27-4 amended to read as follows:
27-5 (a) The authority may establish fees, rates, and charges,
27-6 and classifications of fee and rate payers, as necessary to enable
27-7 the authority to fulfill the authority's purposes and regulatory
27-8 obligations provided by this Act.
27-9 (b) The authority may charge against the owner of a well
27-10 located in the authority's boundaries a fee on the amount of water
27-11 pumped from the well. The board shall establish the rate of a fee
27-12 under this subsection only after a special meeting on the fee. The
27-13 board shall by rule exempt from the fee under this subsection those
27-14 classes of wells that are not subject to groundwater reduction
27-15 requirements imposed by the subsidence district, except that if any
27-16 of those classes of wells become subject at a future date to a
27-17 groundwater reduction requirement imposed by the subsidence
27-18 district, then the authority may after that date charge the fee
27-19 under this subsection to those affected classes of wells. The
27-20 board by rule may exempt any other classes of wells from the fee
27-21 under this subsection. The board may not apply the fee to a well:
27-22 (1) with a casing diameter of less than five inches
27-23 that serves a single-family dwelling;
27-24 (2) regulated under Chapter 27, Water Code;
27-25 (3) used for irrigation of agricultural crops; or
27-26 (4) [that produces 10 million gallons or less
28-1 annually; or]
28-2 [(5)] used solely for electric generation.
28-3 SECTION 40. Subsection (a), Section 4.06, Chapter 1029, Acts
28-4 of the 76th Legislature, Regular Session, 1999, is amended to read
28-5 as follows:
28-6 (a) The authority may:
28-7 (1) acquire and provide by purchase, gift, [or] lease,
28-8 contract, or any other legal means, a water treatment or supply
28-9 system, or any other works, plants, improvements, or facilities
28-10 necessary or convenient to accomplish the purposes of the
28-11 authority, or any interest in those assets, inside of or outside of
28-12 the authority's boundaries;
28-13 (2) design, finance, or construct a water treatment or
28-14 supply system, or any other supply systems, or any other works,
28-15 plants, improvements, or facilities necessary or convenient to
28-16 accomplish the purposes of the authority, and provide water
28-17 services inside of or outside of the authority's boundaries;
28-18 (3) maintain, operate, lease, or sell a water
28-19 treatment or supply system, or any other works, plants,
28-20 improvements, or facilities necessary or convenient to accomplish
28-21 the purposes of the authority, that the authority constructs or
28-22 acquires inside of or outside of the authority's boundaries; and
28-23 (4) contract with any person to operate or maintain a
28-24 water treatment or supply system the person owns.
28-25 SECTION 41. Sections 53.024, 57.152, and 57.153, Water Code,
28-26 are repealed.
29-1 SECTION 42. (a) In this section "district" means a
29-2 conservation and reclamation district created under Section 52,
29-3 Article III, and Section 59, Article XVI, Texas Constitution.
29-4 (b) The following are validated and confirmed in all
29-5 respects:
29-6 (1) the creation of a district and all proceedings
29-7 related to the creation of the district, effective as of the date
29-8 on which the creation or related proceedings occurred; and
29-9 (2) any act or proceeding of a district, including an
29-10 election, not excepted by this section and taken not more than two
29-11 years before the effective date of this Act, effective as of the
29-12 date on which the act or proceeding occurred.
29-13 (c) Subsection (b) of this section does not apply to:
29-14 (1) an act, proceeding, director, other official,
29-15 bond, or other obligation the validity of which or of whom is the
29-16 subject of litigation that is pending on the effective date of this
29-17 Act; or
29-18 (2) a governmental act or proceeding that, under the
29-19 law of this state at the time the act or proceeding occurred, was a
29-20 misdemeanor or a felony.
29-21 SECTION 43. This Act takes effect immediately if it receives
29-22 a vote of two-thirds of all the members elected to each house, as
29-23 provided by Section 39, Article III, Texas Constitution. If this
29-24 Act does not receive the vote necessary for immediate effect, this
29-25 Act takes effect September 1, 2001.
S.B. No. 1444
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1444 passed the Senate on
April 23, 2001, by the following vote: Yeas 29, Nays 0, one
present not voting; May 18, 2001, Senate refused to concur in House
amendments and requested appointment of Conference Committee;
May 21, 2001, House granted request of the Senate; May 26, 2001,
Senate adopted Conference Committee Report by the following vote:
Yeas 30, Nays 0, one present not voting.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1444 passed the House, with
amendments, on May 15, 2001, by the following vote: Yeas 139,
Nays 0, two present not voting; May 21, 2001, House granted request
of the Senate for appointment of Conference Committee;
May 26, 2001, House adopted Conference Committee Report by the
following vote: Yeas 143, Nays 0, two present not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor