77R15262 E
By Brown S.B. No. 1444
Substitute the following for S.B. No. 1444:
By Walker C.S.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. 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 firefighting 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. PROHIBITION OF CERTAIN PRIVATE ON-SITE
10-10 FACILITIES. (a) A district or water supply corporation that
10-11 operates a wastewater collection system to serve land within its
10-12 boundaries by rule may prohibit the installation of private on-site
10-13 wastewater holding or treatment facilities on land within the
10-14 district that is not served by the district's or corporation's
10-15 wastewater collection system. A district or corporation that has
10-16 not received funding from Subchapter K, Chapter 17, Water Code, may
10-17 not require a property owner who has already installed an on-site
10-18 wastewater holding or treatment facility to connect to the
10-19 district's or corporation's wastewater collection system.
10-20 (b) A district or water supply corporation that prohibits an
10-21 installation described by Subsection (a) shall agree to pay the
10-22 owner of a particular tract the costs of connecting the tract to
10-23 the district's or corporation's wastewater collection system if the
10-24 distance along a public right-of-way or utility easement from the
10-25 nearest point of the district's or corporation's wastewater
10-26 collection system to the boundary line of the tract requiring
10-27 wastewater collection services is 300 feet or more, subject to
11-1 commission rules regarding reimbursement of those costs.
11-2 SECTION 16. Section 49.271(c), Water Code, is amended to read
11-3 as follows:
11-4 (c) The district may adopt minimum criteria for the
11-5 qualifications of bidders on its construction contracts and for
11-6 sureties issuing payment and performance bonds. For construction
11-7 contracts over $25,000, the district shall require a person who
11-8 bids to submit a certified or cashier's check on a responsible bank
11-9 in the state equal to at least two percent of the total amount of
11-10 the bid, or a bid bond of at least two percent of the total amount
11-11 of the bid issued by a surety legally authorized to do business in
11-12 this state, as a good faith deposit to ensure execution of the
11-13 contract. If the successful bidder fails or refuses to enter into
11-14 a proper contract with the district, or fails or refuses to furnish
11-15 the payment and performance bonds [bond] required by law, the
11-16 bidder forfeits the deposit. The payment, performance, and bid
11-17 bonding requirements of this subsection do not apply to a contract
11-18 for the purchase of equipment, materials, or machinery not
11-19 otherwise incorporated into a construction project.
11-20 SECTION 17. Sections 49.273(i) and (j), Water Code, are
11-21 amended to read as follows:
11-22 (i) If changes in plans or specifications are necessary
11-23 after the performance of the contract is begun, or if it is
11-24 necessary to decrease or increase the quantity of the work to be
11-25 performed or of the materials, equipment, or supplies to be
11-26 furnished, the board may approve change orders making the changes.
11-27 The aggregate of the change orders may not increase the original
12-1 contract price by more than 10 percent. Additional change [Change]
12-2 orders [to contracts] may be issued only as a result of
12-3 unanticipated conditions encountered during construction, repair,
12-4 or renovation or changes in regulatory criteria or to facilitate
12-5 project coordination with other political entities.
12-6 (j) The board is not required to advertise or seek
12-7 competitive bids for the repair of district facilities if the scope
12-8 or extent of the repair work cannot be readily ascertained or if
12-9 the nature of the repair work does not readily lend itself to
12-10 competitive bidding [by the district's operator if the cost of the
12-11 repair is less than or equal to the advertising requirements of
12-12 this section].
12-13 SECTION 18. Subchapter I, Chapter 49, Water Code, is amended
12-14 by adding Section 49.279 to read as follows:
12-15 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
12-16 alternative procedures provided by Section 2258.022, Government
12-17 Code:
12-18 (1) a district located wholly or partially within one
12-19 or more municipalities or within the extraterritorial jurisdiction
12-20 of one or more municipalities may determine its prevailing wage
12-21 rate for public works by adopting the prevailing wage rate of:
12-22 (A) one of the municipalities; or
12-23 (B) the county in which the district is located
12-24 or, if the county in which the district is located has not adopted
12-25 a wage rate, the prevailing wage rate of a county adjacent to the
12-26 county in which the district is located; and
12-27 (2) a district not located wholly or partially within
13-1 the extraterritorial jurisdiction of a municipality may determine
13-2 the district's prevailing wage rate by adopting the prevailing wage
13-3 rate of the county in which the district is located or, if the
13-4 county in which the district is located has not adopted a wage
13-5 rate, the wage rate of a county adjacent to the county in which the
13-6 district is located.
13-7 SECTION 19. Section 49.302(b), Water Code, is amended to read
13-8 as follows:
13-9 (b) A petition requesting the annexation of a defined area
13-10 signed by a majority in value of the owners of land in the defined
13-11 area, as shown by the tax rolls of the central appraisal district
13-12 of the county or counties in which such area is located, or signed
13-13 by 50 landowners if the number of landowners is more than 50, shall
13-14 describe the land by metes and bounds or by lot and block number if
13-15 there is a recorded plat of the area and shall be filed with the
13-16 secretary of the board.
13-17 SECTION 20. Section 49.304(a), Water Code, is amended to read
13-18 as follows:
13-19 (a) If the board determines that an exclusion hearing should
13-20 be held as provided by Section 49.303(a) or (c), or if a written
13-21 petition requesting an exclusion hearing is filed with the
13-22 secretary of the board as provided by [in] Section 49.303(b)
13-23 [49.303], the board shall give notice of the time and place of a
13-24 hearing to announce its own conclusions relating to land or other
13-25 property to be excluded and to receive petitions for exclusion of
13-26 land or other property.
13-27 SECTION 21. Subchapter J, Chapter 49, Water Code, is amended
14-1 by adding Section 49.315 to read as follows:
14-2 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
14-3 (a) A district may add or exclude land in accordance with this
14-4 subchapter:
14-5 (1) after a district is created by order of the
14-6 commission or another governmental entity or by special Act of the
14-7 legislature; and
14-8 (2) before a confirmation election is held as required
14-9 by Section 49.102.
14-10 (b) If land is added or excluded as provided by this
14-11 section, the election to confirm the district required by Section
14-12 49.102 shall be to confirm the district as modified.
14-13 SECTION 22. Section 49.351, Water Code, is amended by
14-14 amending Subsections (a)-(c) and (g)-(j) and adding Subsection (l)
14-15 to read as follows:
14-16 (a) A district providing potable water or sewer service to
14-17 household users may establish, operate, and maintain a fire
14-18 department to perform all fire-fighting activities within the
14-19 district as provided in this subchapter and may issue bonds or
14-20 impose a mandatory fee, with voter approval, [bonds] for financing
14-21 a plan approved in accordance with this section, [the establishment
14-22 of the fire department] including the construction and purchase of
14-23 necessary buildings, facilities, land, and equipment and the
14-24 provision of an adequate water supply.
14-25 (b) After approval of the district electors of a plan to
14-26 operate, [or] jointly operate, or jointly fund the operation of a
14-27 fire department, and after complying with Subsections (g), (h), and
15-1 (i), the district or districts shall provide an adequate system and
15-2 water supply for fire-fighting purposes, may purchase necessary
15-3 land, may construct and purchase necessary buildings, facilities,
15-4 and equipment, and may employ or contract with a fire department to
15-5 employ all necessary personnel including supervisory personnel to
15-6 operate the fire department.
15-7 (c) Bonds [issued] for financing a plan approved in
15-8 accordance with this section [establishment of the fire department]
15-9 shall be authorized and may be issued, and a district shall be
15-10 authorized to levy a tax to pay the principal of and interest on
15-11 such bonds, as provided by law for authorization and issuance of
15-12 other bonds of the district.
15-13 (g) A district or districts proposing to act jointly shall
15-14 develop a detailed plan for the establishment, operation, and
15-15 maintenance of the proposed department, including a detailed
15-16 presentation of all financial requirements. If a district is
15-17 entering into a contract under Subsection (e), the district shall
15-18 develop a plan that describes [in detail] the contract and
15-19 [facilities and equipment to be devoted to service to the district
15-20 and all proposals for providing the service and that] includes a
15-21 presentation of the financial requirements under the contract. A
15-22 plan required by this subsection may be included in a plan or
15-23 report otherwise required by this title for the creation of a
15-24 district or may be submitted to the commission for approval at any
15-25 time after the creation of the district. [Before adoption of a
15-26 plan and any contract by the district, the board shall hold a
15-27 hearing at which any person residing in the district may present
16-1 testimony for and against the proposed plan and any proposed
16-2 contract. Notice of the hearing and the place at which the plan
16-3 and any contract may be examined shall be posted in two public
16-4 places within the district at least 10 days before the date of the
16-5 hearing.]
16-6 (h) If a plan was not approved by the commission at the time
16-7 of the district's creation, after [After] adoption of the plan and
16-8 any contract by the board, the plan and financial presentation,
16-9 together with any contract and a written report in a form
16-10 prescribed by the executive director describing existing fire
16-11 departments and fire-fighting services available within 25 miles of
16-12 the boundaries of the district, shall be submitted to the executive
16-13 director for consideration by the commission under rules adopted by
16-14 the commission. [Before approval or disapproval, the commission
16-15 shall hold a hearing. Notice of the hearing before the commission
16-16 shall be posted by the board in at least two public places in the
16-17 district at least five days before the hearing.] Before the
16-18 commission approves the application, it must find that it is
16-19 economically feasible for the district to implement the plan and
16-20 meet the provisions of any contract and shall take into
16-21 consideration in giving its approval the general financial
16-22 condition of the district and the economic feasibility of the
16-23 district carrying out the plan or meeting the obligations of the
16-24 contract. A plan approved by the commission as part of the
16-25 creation of a district does not require further commission approval
16-26 unless the district materially alters the plan.
16-27 (i) After approval of a plan by the commission, the district
17-1 shall submit to the electors of the district at the election to
17-2 approve bonds or to impose a mandatory fee for financing the plan,
17-3 or if no bonds or fees are to be approved, at an election called
17-4 for approval of the plan, which may be held in conjunction with an
17-5 election required by Section 49.102, the proposition of whether or
17-6 not the plan should be implemented or entered into by the district.
17-7 The ballots at the election shall be printed, as applicable, to
17-8 provide for voting for or against the proposition: "The
17-9 implementation of the plan for (operation/joint operation) of a
17-10 fire department"; or "The plan and contract to provide
17-11 fire-fighting services for the district."
17-12 (j) [No funds of the district may be used to establish a
17-13 fire department, to enter into joint operation of a fire
17-14 department, or to contract for fire-fighting services without the
17-15 approval of a plan by the electors as provided in this section.
17-16 However, the district may use available funds for preparation of a
17-17 plan and any contract.] The operation of a fire department or
17-18 provision of fire-fighting services is an essential public
17-19 necessity, and a district may discontinue any and all services,
17-20 including water and sewer service, to any person who fails to
17-21 timely pay fire department service fees or any other assessment
17-22 adopted by the district to support the fire department or the
17-23 provision of fire-fighting services.
17-24 (l) Notwithstanding the requirements of Subsections (a)-(j),
17-25 a district providing potable water or sewer service to household
17-26 users may as part of its billing process collect from its customers
17-27 a voluntary contribution on behalf of organizations providing
18-1 fire-fighting activities to the district. A district that chooses
18-2 to collect a voluntary contribution under this subsection must give
18-3 reasonable notice to its customers that the contribution is
18-4 voluntary. Water and sewer service may not be terminated as a
18-5 result of failure to pay the voluntary contribution.
18-6 SECTION 23. Chapter 49, Water Code, is amended by adding
18-7 Subchapter N to read as follows:
18-8 SUBCHAPTER N. RECREATIONAL FACILITIES
18-9 Sec. 49.461. POLICY AND PURPOSE. (a) The legislature finds
18-10 that:
18-11 (1) the provision of parks and recreational facilities
18-12 is necessary and desirable for the health and well-being of the
18-13 people of this state;
18-14 (2) it is the policy of the state and the purpose of
18-15 this subchapter to encourage persons in districts to provide parks
18-16 and recreational facilities for their use and benefit;
18-17 (3) within constitutional limitations, the power to
18-18 enact laws vested in the legislature by Section 1, Article III,
18-19 Texas Constitution, is supreme;
18-20 (4) there is no constitutional inhibition that would
18-21 prohibit the legislature from authorizing districts to acquire,
18-22 own, develop, construct, improve, manage, operate, and maintain
18-23 parks and recreational facilities; and
18-24 (5) the general legislative power alone is adequate to
18-25 support the enactment of this subchapter without reference to any
18-26 specific constitutional authorization.
18-27 (b) This subchapter provides complete authority to a
19-1 district to develop and maintain recreational facilities.
19-2 Sec. 49.462. DEFINITIONS. In this subchapter:
19-3 (1) "Recreational facilities" means parks,
19-4 landscaping, parkways, greenbelts, sidewalks, trails, public
19-5 right-of-way beautification projects, and recreational equipment
19-6 and facilities. The term includes associated street and security
19-7 lighting.
19-8 (2) "Develop and maintain" means to acquire, own,
19-9 develop, construct, improve, manage, maintain, and operate.
19-10 Sec. 49.463. AUTHORIZATION OF RECREATIONAL FACILITIES. In
19-11 addition to the other purposes for which a district is created, a
19-12 district is created for the purpose of developing and maintaining
19-13 recreational facilities for the people in the district. A district
19-14 may accomplish this purpose as provided in this subchapter.
19-15 Sec. 49.464. ACQUISITION OF AND PAYMENT FOR RECREATIONAL
19-16 FACILITIES. (a) A district may not issue bonds supported by ad
19-17 valorem taxes to pay for the development and maintenance of
19-18 recreational facilities.
19-19 (b) Except as provided by Subsection (a), a district may
19-20 acquire recreational facilities and obtain funds to develop and
19-21 maintain them in the same manner as authorized elsewhere in this
19-22 code for the acquisition, development, and maintenance of other
19-23 district facilities. A district may charge fees directly to the
19-24 users of recreational facilities and to water and wastewater
19-25 customers of the district to pay for all or part of the cost of
19-26 their development and maintenance. To enforce payment of an unpaid
19-27 fee charged under this subsection, the district may:
20-1 (1) seek legal restitution of the unpaid fee; and
20-2 (2) refuse use of a recreational facility to the
20-3 person who owes the unpaid fee.
20-4 (c) The district may not refuse use of facilities or
20-5 services other than recreational facilities to enforce an unpaid
20-6 fee.
20-7 Sec. 49.465. STANDARDS. The board by rule shall establish
20-8 standards for recreational facilities to be developed and
20-9 maintained by a district and for the allocation of a district's
20-10 funds for developing and maintaining recreational facilities in
20-11 relation to a district's financial requirements for other purposes.
20-12 To prevent duplication of recreational facilities provided by other
20-13 governmental entities, rules adopted by the board under this
20-14 subsection must require a district, before developing recreational
20-15 facilities, to make findings that the size and location of the
20-16 facilities have been established in consideration of municipal or
20-17 county recreational facilities, whether existing or proposed, that
20-18 serve or will serve the area in which the district is located.
20-19 SECTION 24. Section 51.013(a), Water Code, is amended to read
20-20 as follows:
20-21 (a) A petition requesting creation of a district shall be
20-22 signed by a majority of the persons who hold title to land in the
20-23 proposed district which represents a total value of more than 50
20-24 percent of the value of all the land in the proposed district as
20-25 indicated by the [county] tax rolls of the central appraisal
20-26 district. If there are more than 50 persons holding title to land
20-27 in the proposed district, the petition is sufficient if signed by
21-1 50 of them.
21-2 SECTION 25. Subchapter D, Chapter 51, Water Code, is amended
21-3 by adding Section 51.122 to read as follows:
21-4 Sec. 51.122. ADOPTING RULES AND REGULATIONS. A district may
21-5 adopt and enforce reasonable rules and regulations to:
21-6 (1) secure and maintain safe, sanitary, and adequate
21-7 plumbing installations, connections, and appurtenances as
21-8 subsidiary parts of the district's sanitary sewer system;
21-9 (2) preserve the sanitary condition of all water
21-10 controlled by the district;
21-11 (3) prevent waste or the unauthorized use of water
21-12 controlled by the district;
21-13 (4) regulate privileges on any land or any easement
21-14 owned or controlled by the district; or
21-15 (5) provide and regulate a safe and adequate
21-16 freshwater distribution system.
21-17 SECTION 26. Chapter 51, Water Code, is amended by adding
21-18 Subchapter E to read as follows:
21-19 SUBCHAPTER E. ENFORCEMENT
21-20 Sec. 51.221. PENALTY FOR VIOLATION OF REGULATION. A person
21-21 who violates a regulation adopted by a district under this chapter
21-22 or other law commits an offense. An offense under this section is
21-23 a Class C misdemeanor.
21-24 SECTION 27. Section 53.021, Water Code, is amended to read as
21-25 follows:
21-26 Sec. 53.021. OFFICERS TO BE ELECTED. In the election, five
21-27 supervisors [and the tax assessor and collector] are elected.
22-1 SECTION 28. Section 54.014, Water Code, is amended to read as
22-2 follows:
22-3 Sec. 54.014. PETITION. When it is proposed to create a
22-4 district, a petition requesting creation shall be filed with the
22-5 commission. The petition shall be signed by a majority in value of
22-6 the holders of title of the land within the proposed district, as
22-7 indicated by the [county] tax rolls of the central appraisal
22-8 district. If there are more than 50 persons holding title to the
22-9 land in the proposed district, as indicated by the [county] tax
22-10 rolls of the central appraisal district, the petition is sufficient
22-11 if it is signed by 50 holders of title to the land.
22-12 SECTION 29. Section 54.236, Water Code, is amended to read as
22-13 follows:
22-14 Sec. 54.236. STREET OR SECURITY LIGHTING. Subject to the
22-15 provisions of this section, a district may purchase, install
22-16 [accept], operate, and maintain street lighting or security
22-17 lighting within public utility easements or public rights-of-way
22-18 within the boundaries of the district. [Such street or security
22-19 lighting facilities must have been constructed by an owner or
22-20 developer of property within the district and must have been
22-21 required by a city as a condition to the city granting its consent
22-22 to the creation of the district pursuant to Section 54.016 of this
22-23 code.] A district may not issue bonds supported by ad valorem
22-24 taxes to pay for the purchase, installation, [development] and
22-25 maintenance of street or security lighting.
22-26 SECTION 30. Section 54.772(1), Water Code, is amended to read
22-27 as follows:
23-1 (1) "Recreational facilities" means parks,
23-2 landscaping, parkways, greenbelts, sidewalks, trails, public
23-3 right-of-way beautification projects, and recreational equipment
23-4 and facilities. The term includes associated street and security
23-5 lighting.
23-6 SECTION 31. Section 54.774(a), Water Code, is amended to read
23-7 as follows:
23-8 (a) A district may not issue bonds supported by ad valorem
23-9 taxes to pay for the development and maintenance of recreational
23-10 facilities.
23-11 SECTION 32. Section 57.092(a), Water Code, is amended to read
23-12 as follows:
23-13 (a) The district may enter into all necessary and proper
23-14 contracts and employ all persons and means necessary to purchase,
23-15 acquire, build, construct, complete, carry out, maintain, protect,
23-16 and in case of necessity, add to and rebuild, all works and
23-17 improvements [within the district] necessary or proper to fully
23-18 accomplish a reclamation plan lawfully adopted for the district.
23-19 SECTION 33. Subchapter D, Chapter 57, Water Code, is amended
23-20 by adding Section 57.093 to read as follows:
23-21 Sec. 57.093. ADOPTING RULES AND REGULATIONS. A district may
23-22 adopt and enforce reasonable rules and regulations to:
23-23 (1) preserve the sanitary condition of all water
23-24 controlled by the district;
23-25 (2) prevent waste or the unauthorized use of water
23-26 controlled by the district;
23-27 (3) regulate privileges on any land or any easement
24-1 owned or controlled by the district;
24-2 (4) regulate the design and construction of
24-3 improvements and facilities that outfall, connect, or tie into
24-4 district improvements and facilities; or
24-5 (5) require the district's review and approval of
24-6 drainage plans for property within the district.
24-7 SECTION 34. Subchapter B, Chapter 402, Local Government Code,
24-8 is amended by adding Section 402.0205 to read as follows:
24-9 Sec. 402.0205. REVENUE BONDS TO PAY FOR DISTRICT SERVICES
24-10 UNDER CONTRACT. (a) In this section, "district" has the meaning
24-11 assigned by Section 49.001, Water Code.
24-12 (b) If a district contracts with a municipality to provide
24-13 all or part of the water or wastewater services to the
24-14 municipality, the municipality may issue bonds payable from the
24-15 revenues of its water and wastewater system to provide funds to
24-16 make payments owed by the municipality to the district under the
24-17 contract.
24-18 SECTION 35. Subchapter Z, Chapter 402, Local Government Code,
24-19 is amended by adding Section 402.908 to read as follows:
24-20 Sec. 402.908. SALE OF WATER OR SEWER SYSTEM. A
24-21 municipality, without an election, may sell to a water district
24-22 operating under the authority of Section 59, Article XVI, Texas
24-23 Constitution, a water or sewer system owned by the municipality.
24-24 SECTION 36. (a) In this section, "district" has the meaning
24-25 assigned by Section 49.001, Water Code.
24-26 (b) The following are validated and confirmed in all
24-27 respects:
25-1 (1) the creation of a district and all proceedings
25-2 related to the creation of the district, effective as of the date
25-3 on which the creation or related proceedings occurred; and
25-4 (2) any act or proceeding of a district, including an
25-5 election, not excepted by this section and taken not more than two
25-6 years before the effective date of this Act, effective as of the
25-7 date on which the act or proceeding occurred.
25-8 (c) Subsection (b) of this section does not apply to:
25-9 (1) an act, proceeding, director, other official,
25-10 bond, or other obligation the validity of which or of whom is the
25-11 subject of litigation that is pending on the effective date of this
25-12 Act; or
25-13 (2) a governmental act or proceeding that, under the
25-14 law of this state at the time the act or proceeding occurred, was a
25-15 misdemeanor or a felony.
25-16 SECTION 37. Sections 53.024, 57.152, and 57.153, Water Code,
25-17 are repealed.
25-18 SECTION 38. This Act takes effect immediately if it receives
25-19 a vote of two-thirds of all the members elected to each house, as
25-20 provided by Section 39, Article III, Texas Constitution. If this
25-21 Act does not receive the vote necessary for immediate effect, this
25-22 Act takes effect September 1, 2001.