1-1     By:  Brown                                            S.B. No. 1444
 1-2           (In the Senate - Filed March 8, 2001; March 13, 2001, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 9, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 4, Nays 0; April 9, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1444                   By:  Brown
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the general powers and authority of water districts;
1-11     providing a penalty.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subsection (d), Section 49.054, Water Code, is
1-14     amended to read as follows:
1-15           (d)  If the board appoints a director to serve as treasurer,
1-16     that director is not subject to the investment officer training
1-17     requirements of Chapter 2256 [Section 2256.007], Government Code,
1-18     unless the director is also appointed as the district's investment
1-19     officer under Chapter 2256, Government Code.
1-20           SECTION 2.  Subsection (a), Section 49.057, Water Code, is
1-21     amended to read as follows:
1-22           (a)  The board shall be responsible for the management of all
1-23     the affairs of the district.  The district shall employ or contract
1-24     with all persons, firms, partnerships, corporations, or other
1-25     entities, public or private, deemed necessary by the board for the
1-26     conduct of the affairs of the district, including, but not limited
1-27     to, engineers, attorneys, financial advisors, operators,
1-28     bookkeepers, tax assessors and collectors, auditors, and
1-29     administrative staff.  The board may appoint an employee of a firm,
1-30     partnership, corporation, or other entity with which the district
1-31     has contracted to serve as the investment officer of the district
1-32     under Chapter 2256 [Section 2256.007], Government Code.
1-33           SECTION 3.  Subsection (a), Section 49.060, Water Code, is
1-34     amended to read as follows:
1-35           (a)  A director is entitled to receive fees of office of not
1-36     more than $150 [$100] a day for each day the director actually
1-37     spends performing the duties of a director.  The fees of office may
1-38     not exceed $6,000 per annum except for directors of a special water
1-39     authority which is engaged in the distribution and sale of electric
1-40     energy to the public.
1-41           SECTION 4.  Section 49.102, Water Code, is amended by adding
1-42     a new Subsection (i) and redesignating existing Subsection (i) as
1-43     Subsection (j) to read as follows:
1-44           (i)  A district, at an election required under Subsection
1-45     (a), may submit to the qualified voters of the district the
1-46     proposition of whether a plan as authorized by Section 49.351
1-47     should be implemented or entered into by the district.
1-48           (j)  The provisions of this section shall not be applicable
1-49     to any district exercising the powers of Chapter 375, Local
1-50     Government Code, or any district created by a special Act of the
1-51     legislature that does not require a confirmation election.
1-52           SECTION 5.  Section 49.106, Water Code, is amended by adding
1-53     Subsection (e) to read as follows:
1-54           (e)  A district's authorization to issue bonds resulting from
1-55     an election held under this section, or any other law that allows
1-56     for the qualified voters of a district to authorize the issuance of
1-57     bonds by a district, remains in effect after the election unless
1-58     the district is dissolved or is annexed by another district.
1-59           SECTION 6.  Section 49.107, Water Code, is amended by adding
1-60     Subsection (g) to read as follows:
1-61           (g)  Sections 26.04, 26.05, and 26.07, Tax Code, do not apply
1-62     to a tax levied and collected under this section or an ad valorem
1-63     tax levied and collected for the payment of the interest on and
1-64     principal of bonds issued by a district.
 2-1           SECTION 7.  Section 49.108, Water Code, is amended by adding
 2-2     Subsection (f) to read as follows:
 2-3           (f)  Sections 26.04, 26.05, and 26.07, Tax Code, do not apply
 2-4     to a tax levied and collected for payments made under a contract
 2-5     approved in accordance with this section.
 2-6           SECTION 8.  Subsection (c), Section 49.151, Water Code, is
 2-7     amended to read as follows:
 2-8           (c)  The board may [by resolution] allow disbursements of
 2-9     district money to be transferred by federal reserve wire system.
2-10     The board by resolution may allow the wire transfers to accounts in
2-11     the name of the district or accounts not in the name of the
2-12     district.
2-13           SECTION 9.  Subsection (a), Section 49.155, Water Code, is
2-14     amended to read as follows:
2-15           (a)  The district may pay out of bond proceeds or other
2-16     available funds of the district all expenses of the district
2-17     authorized by this section, including expenses reasonable and
2-18     necessary to effect the issuance, sale, and delivery of bonds as
2-19     determined by the board, including, but not limited to, the
2-20     following:
2-21                 (1)  interest during construction [not to exceed three
2-22     years after acceptance of the project];
2-23                 (2)  capitalized interest not to exceed three years'
2-24     interest;
2-25                 (3)  reasonable and necessary reserve funds not to
2-26     exceed two years' interest on the bonds;
2-27                 (4)  interest on funds advanced to the district;
2-28                 (5)  financial advisor, bond counsel, attorney, and
2-29     other consultant fees;
2-30                 (6)  paying agent, registrar, and escrow agent fees;
2-31                 (7)  right-of-way acquisition;
2-32                 (8)  underwriter's discounts or premiums;
2-33                 (9)  engineering fees, including surveying expenses and
2-34     plan review fees;
2-35                 (10)  commission and attorney general fees;
2-36                 (11)  printing costs;
2-37                 (12)  all organizational, administrative, and operating
2-38     costs during creation and construction periods;
2-39                 (13)  the cost of investigation and making plans,
2-40     including preliminary plans and associated engineering reports;
2-41                 (14)  land required for stormwater control;
2-42                 (15)  costs associated with requirements for federal
2-43     stormwater permits; and
2-44                 (16)  costs associated with requirements for endangered
2-45     species permits.
2-46           SECTION 10.  Subsection (b), Section 49.183, Water Code, is
2-47     amended to read as follows:
2-48           (b)  Except for refunding bonds, or bonds sold to a state or
2-49     federal agency, [after any bonds are finally approved and] before
2-50     any bonds [they] are sold by a district, the board shall publish an
2-51     appropriate notice of the sale:
2-52                 (1)  at least one time not less than 10 days before the
2-53     date of sale in a newspaper of general circulation in the county or
2-54     counties in which the district is located; and
2-55                 (2)  at least one time in one or more recognized
2-56     financial publications of general circulation in the state as
2-57     approved by the state attorney general.
2-58           SECTION 11.  Section 49.184, Water Code, is amended by adding
2-59     Subsection (f) to read as follows:
2-60           (f)  In any proceeding concerning the validity of the
2-61     creation of a district or the annexation of property by a district,
2-62     a certificate of ownership as certified by the central appraisal
2-63     district of the county or counties in which the property is located
2-64     creates a presumption of ownership, and additional proof of
2-65     ownership is not required unless there is substantial evidence in
2-66     the official deed records of the county in which the property is
2-67     located to rebut the presumption.  On request by a district, the
2-68     central appraisal district of the county or counties in which the
2-69     district is located shall furnish certificates of ownership and may
 3-1     charge reasonable fees to recover the actual costs incurred in
 3-2     preparing the certificates.
 3-3           SECTION 12.  Section 49.212, Water Code, is amended by
 3-4     amending Subsection (a) and adding Subsection (e) to read as
 3-5     follows:
 3-6           (a)  A district may adopt and enforce all necessary charges,
 3-7     mandatory fees, or rentals, in addition to taxes, for providing or
 3-8     making available any district facility or service, including
 3-9     fire-fighting activities provided under Section 49.351.
3-10           (e)  Chapter 2007, Government Code, does not apply to a tax
3-11     levied, a standby fee imposed, or a charge, fee, or rental adopted
3-12     or enforced by a district under this chapter, another chapter of
3-13     this code, or Chapter 395, Local Government Code.
3-14           SECTION 13.  Section 49.218, Water Code, is amended by adding
3-15     a new Subsection (d), relettering existing Subsection (d) as
3-16     Subsection (f), and adding Subsections (e) and (g) to read as
3-17     follows:
3-18           (d)  A district or water supply corporation may require a
3-19     service applicant, as a condition of service, to grant a permanent
3-20     recorded easement dedicated to the district or water supply
3-21     corporation that will provide a reasonable right of access and use
3-22     to allow the district or water supply corporation to construct,
3-23     install, maintain, replace, upgrade, inspect, and test any
3-24     facilities necessary to serve that applicant as well as other
3-25     customers of the district or water supply corporation.
3-26           (e)  As a condition of service to a new subdivision, a
3-27     district or water supply corporation may require a developer to
3-28     provide permanent recorded easements to and throughout the
3-29     subdivision sufficient to construct, install, maintain, replace,
3-30     upgrade, inspect, and test any facilities necessary to serve the
3-31     subdivision's anticipated service demands on full occupancy.
3-32           (f)  A district or water supply corporation may also lease
3-33     property from others for its use on such terms and conditions as
3-34     the board of the district or the board of directors of the water
3-35     supply corporation may determine to be advantageous.
3-36           (g)  Property acquired under this section, or any other law
3-37     allowing the acquisition of property by a district or water supply
3-38     corporation, and owned by a district or water supply corporation is
3-39     not subject to assessments, charges, fees, or dues imposed by a
3-40     nonprofit corporation under Chapter 204, Property Code.
3-41           SECTION 14.  Section 49.226, Water Code, is amended to read
3-42     as follows:
3-43           Sec. 49.226.  SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
3-44     PERSONAL PROPERTY.  (a)  Any personal property valued at more than
3-45     $300 or any land or interest in land owned by the district which is
3-46     found by the board to be surplus and is not needed by the district
3-47     may be sold under order of the board either by public or private
3-48     sale, or the land, interest in land, or personal property may be
3-49     exchanged for other land, interest in land, or personal property
3-50     needed by the district.  Except as provided in Subsection (b),
3-51     land, interest in land, or personal property must be exchanged for
3-52     like fair market value, which value may be determined by the
3-53     district.
3-54           (b)  Any property dedicated to or acquired by the district
3-55     without expending district funds may be abandoned or released to
3-56     the original grantor, the grantor's heirs, assigns, executors, or
3-57     successors upon terms and conditions deemed necessary or
3-58     advantageous to the district and without receiving compensation for
3-59     such abandonment or release.  District property may also be
3-60     abandoned, released, exchanged, or transferred to another district,
3-61     municipality, county, countywide agency, or authority upon terms
3-62     and conditions deemed necessary or advantageous to the district.
3-63     Narrow strips of property resulting from boundary or surveying
3-64     conflicts or similar causes, or from insubstantial encroachments by
3-65     abutting property owners, or property of larger configuration that
3-66     has been subject to encroachments by abutting property owners for
3-67     more than 25 years may be abandoned, released, exchanged, or
3-68     transferred to such abutting owners upon terms and conditions
3-69     deemed necessary or advantageous to the district.  Chapter 272,
 4-1     Local Government Code, does [shall] not apply to this section
 4-2     [subsection].
 4-3           (c)  Before either a public or a private sale of real
 4-4     property [not required by the district], the district shall give
 4-5     notice of the intent to sell by publishing notice once a week for
 4-6     two consecutive weeks in one or more newspapers with general
 4-7     circulation in the district.
 4-8           (d)  If the district has outstanding bonds secured by a
 4-9     pledge of tax revenues, the proceeds of the sale of property [not
4-10     required by the district]  shall be applied to retire outstanding
4-11     bonds of the district [when required by the district's applicable
4-12     bond resolutions].
4-13           (e)  If the district does not have any outstanding bonds, the
4-14     proceeds derived from the sale of real or [the] personal property
4-15     [or land not required by the district] may be used for any lawful
4-16     purpose.
4-17           SECTION 15.  Subchapter H, Chapter 49, Water Code, is amended
4-18     by adding Section 49.234 to read as follows:
4-19           Sec. 49.234.  SEWER CONNECTIONS.  (a)  A district may:
4-20                 (1)  provide for a sanitary sewer system; and
4-21                 (2)  require property owners to connect to the sewer
4-22     system.
4-23           (b)  A district may not require a property owner who has
4-24     installed an on-site wastewater holding or treatment facility
4-25     before the creation of the district to connect to the district's
4-26     sewer system, unless:
4-27                 (1)  the on-site wastewater holding or treatment
4-28     facility is inadequate, failing, or not in compliance with
4-29     applicable government regulations:
4-30                 (2)  the district pays the costs of the connection to
4-31     the district's sewer system; or
4-32                 (3)  the connection to the district's sewer system is
4-33     required at the time that a property owner is replacing or
4-34     enlarging an on-site wastewater holding or treatment facility.
4-35           SECTION 16.  Subsection (c), Section 49.271, Water Code, is
4-36     amended to read as follows:
4-37           (c)  The district may adopt minimum criteria for the
4-38     qualifications of bidders on its construction contracts and for
4-39     sureties issuing payment and performance bonds.  For construction
4-40     contracts over $25,000, the district shall require a person who
4-41     bids to submit a certified or cashier's check on a responsible bank
4-42     in the state equal to at least two percent of the total amount of
4-43     the bid, or a bid bond of at least two percent of the total amount
4-44     of the bid issued by a surety legally authorized to do business in
4-45     this state, as a good faith deposit to ensure execution of the
4-46     contract.  If the successful bidder fails or refuses to enter into
4-47     a proper contract with the district, or fails or refuses to furnish
4-48     the payment and performance bonds [bond] required by law, the
4-49     bidder forfeits the deposit.  The payment, performance, and bid
4-50     bonding requirements of this subsection do not apply to a contract
4-51     for the purchase of equipment, materials, or machinery not
4-52     otherwise incorporated into a construction project.
4-53           SECTION 17.  Subsections (i) and (j), Section 49.273, Water
4-54     Code, are amended to read as follows:
4-55           (i)  If changes in plans or specifications are necessary
4-56     after the performance of the contract is begun, or if it is
4-57     necessary to decrease or increase the quantity of the work to be
4-58     performed or of the materials, equipment, or supplies to be
4-59     furnished, the board may approve change orders making the changes.
4-60     The aggregate of the change orders may not increase the original
4-61     contract price by more than 10 percent.  Additional change [Change]
4-62     orders [to contracts] may be issued only as a result of
4-63     unanticipated conditions encountered during construction, repair,
4-64     or renovation or changes in regulatory criteria or to facilitate
4-65     project coordination with other political entities.
4-66           (j)  The board is not required to advertise or seek
4-67     competitive bids for the repair of district facilities if the scope
4-68     or extent of the repair work cannot be readily ascertained or if
4-69     the nature of the repair work does not readily lend itself to
 5-1     competitive bidding [by the district's operator if the cost of the
 5-2     repair is less than or equal to the advertising requirements of
 5-3     this section].
 5-4           SECTION 18.  Subchapter I, Chapter 49, Water Code, is amended
 5-5     by adding Section 49.279 to read as follows:
 5-6           Sec. 49.279.  PREVAILING WAGE RATES.  In addition to the
 5-7     alternative procedures provided by Section 2258.022, Government
 5-8     Code:
 5-9                 (1)  a district located wholly or partially within one
5-10     or more municipalities or within the extraterritorial jurisdiction
5-11     of one or more municipalities may determine its prevailing wage
5-12     rate for public works by adopting the prevailing wage rate of:
5-13                       (A)  one of the municipalities; or
5-14                       (B)  the county in which the district is located,
5-15     or if the county in which the district is located has not adopted a
5-16     wage rate, the prevailing wage rate of a county adjacent to the
5-17     county in which the district is located; and
5-18                 (2)  a district not located wholly or partially within
5-19     the extraterritorial jurisdiction of a municipality may determine
5-20     the district's prevailing wage rate by adopting the prevailing wage
5-21     rate of the county in which the district is located or, if the
5-22     county in which the district is located has not adopted a wage
5-23     rate, the wage rate of a county adjacent to the county in which the
5-24     district is located.
5-25           SECTION 19.  Subsection (b), Section 49.302, Water Code, is
5-26     amended to read as follows:
5-27           (b)  A petition requesting the annexation of a defined area
5-28     signed by a majority in value of the owners of land in the defined
5-29     area, as shown by the tax rolls of the central appraisal district
5-30     of the county or counties in which such area is located, or signed
5-31     by 50 landowners if the number of landowners is more than 50, shall
5-32     describe the land by metes and bounds or by lot and block number if
5-33     there is a recorded plat of the area and shall be filed with the
5-34     secretary of the board.
5-35           SECTION 20.  Subsection (a), Section 49.304, Water Code, is
5-36     amended to read as follows:
5-37           (a)  If the board determines that an exclusion hearing should
5-38     be held as provided by Section 49.303(a) or (c), or if a written
5-39     petition requesting an exclusion hearing is filed with the
5-40     secretary of the board as provided by [in] Section 49.303(b)
5-41     [49.303], the board shall give notice of the time and place of a
5-42     hearing to announce its own conclusions relating to land or other
5-43     property to be excluded and to receive petitions for exclusion of
5-44     land or other property.
5-45           SECTION 21.  Subchapter J, Chapter 49, Water Code, is amended
5-46     by adding Section 49.315 to read as follows:
5-47           Sec. 49.315.  ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
5-48     (a)  A district may add or exclude land in accordance with this
5-49     subchapter:
5-50                 (1)  after a district is created by order of the
5-51     commission or another governmental entity or by special Act of the
5-52     legislature; and
5-53                 (2)  before a confirmation election is held as required
5-54     by Section 49.102.
5-55           (b)  If land is added or excluded as provided by this
5-56     section, the election to confirm the district required by Section
5-57     49.102 shall be to confirm the district as modified.
5-58           SECTION 22.  Section 49.327, Water Code, is amended to read
5-59     as follows:
5-60           Sec. 49.327.  ASSETS ESCHEAT TO STATE.  (a)  Upon the
5-61     dissolution of a district by the commission, all assets of the
5-62     district shall escheat to the State of Texas.  The assets shall be
5-63     administered by the comptroller and shall be disposed of in the
5-64     manner provided by Chapter 74, Property Code.
5-65           (b)  Title 6, Property Code, does not apply to any personal
5-66     property held by a district that has not been dissolved by order of
5-67     the commission.
5-68           SECTION 23.  Section 49.351, Water Code, is amended by
5-69     amending Subsections (a), (b), and (c) and (g) through (j) and
 6-1     adding Subsection (l) to read as follows:
 6-2           (a)  A district providing potable water or sewer service to
 6-3     household users may establish, operate, and maintain a fire
 6-4     department to perform all fire-fighting activities within the
 6-5     district as provided in this subchapter and may issue bonds or
 6-6     impose a mandatory fee, with voter approval, [bonds] for financing
 6-7     a plan approved in accordance with this section, [the establishment
 6-8     of the fire department] including the construction and purchase of
 6-9     necessary buildings, facilities, land, and equipment and the
6-10     provision of an adequate water supply.
6-11           (b)  After approval of the district electors of a plan to
6-12     operate, [or] jointly operate, or jointly fund the operation of a
6-13     fire department, and after complying with Subsections (g), (h), and
6-14     (i), the district or districts shall provide an adequate system and
6-15     water supply for fire-fighting purposes, may purchase necessary
6-16     land, may construct and purchase necessary buildings, facilities,
6-17     and equipment, and may employ or contract with a fire department to
6-18     employ all necessary personnel including supervisory personnel to
6-19     operate the fire department.
6-20           (c)  Bonds [issued] for financing a plan approved in
6-21     accordance with this section [establishment of the fire department]
6-22     shall be authorized and may be issued, and a district shall be
6-23     authorized to levy a tax to pay the principal of and interest on
6-24     such bonds, as provided by law for authorization and issuance of
6-25     other bonds of the district.
6-26           (g)  A district or districts proposing to act jointly shall
6-27     develop a detailed plan for the establishment, operation, and
6-28     maintenance of the proposed department, including a detailed
6-29     presentation of all financial requirements.  If a district is
6-30     entering into a contract under Subsection (e), the district shall
6-31     develop a plan that describes [in detail] the contract and
6-32     [facilities and equipment to be devoted to service to the district
6-33     and all proposals for providing the service and that] includes a
6-34     presentation of the financial requirements under the contract.  A
6-35     plan required by this subsection may be included in a plan or
6-36     report otherwise required by this title for the creation of a
6-37     district or may be submitted to the commission for approval at any
6-38     time after the creation of the district.  [Before adoption of a
6-39     plan and any contract by the district, the board shall hold a
6-40     hearing at which any person residing in the district may present
6-41     testimony for and against the proposed plan and any proposed
6-42     contract.  Notice of the hearing and the place at which the plan
6-43     and any contract may be examined shall be posted in two public
6-44     places within the district at least 10 days before the date of the
6-45     hearing.]
6-46           (h)  If a plan was not approved by the commission at the time
6-47     of the district's creation, after [After] adoption of the plan and
6-48     any contract by the board, the plan and financial presentation,
6-49     together with any contract and a written report in a form
6-50     prescribed by the executive director describing existing fire
6-51     departments and fire-fighting services available within 25 miles of
6-52     the boundaries of the district, shall be submitted to the executive
6-53     director for consideration by the commission under rules adopted by
6-54     the commission.  [Before approval or disapproval, the commission
6-55     shall hold a hearing.  Notice of the hearing before the commission
6-56     shall be posted by the board in at least two public places in the
6-57     district at least five days before the hearing.]  Before the
6-58     commission approves the application, it must find that it is
6-59     economically feasible for the district to implement the plan and
6-60     meet the provisions of any contract and shall take into
6-61     consideration in giving its approval the general financial
6-62     condition of the district and the economic feasibility of the
6-63     district carrying out the plan or meeting the obligations of the
6-64     contract.  A plan approved by the commission as part of the
6-65     creation of a district does not require further commission approval
6-66     unless the district materially alters the plan.
6-67           (i)  After approval of a plan by the commission, the district
6-68     shall submit to the electors of the district at the election to
6-69     approve bonds or to impose a mandatory fee for financing the plan,
 7-1     or if no bonds or fees are to be approved, at an election called
 7-2     for approval of the plan, which may be held in conjunction with an
 7-3     election required by Section 49.102, the proposition of whether or
 7-4     not the plan should be implemented or entered into by the district.
 7-5     The ballots at the election shall be printed, as applicable, to
 7-6     provide for voting for or against the proposition:  "The
 7-7     implementation of the plan for (operation/joint operation) of a
 7-8     fire department"; or "The plan and contract to provide
 7-9     fire-fighting services for the district."
7-10           (j)  [No funds of the district may be used to establish a
7-11     fire department, to enter into joint operation of a fire
7-12     department, or to contract for fire-fighting services without the
7-13     approval of a plan by the electors as provided in this section.
7-14     However, the district may use available funds for preparation of a
7-15     plan and any contract.]  The operation of a fire department or
7-16     provision of fire-fighting services is an essential public
7-17     necessity, and a district may discontinue any and all services,
7-18     including water and sewer service, to any person who fails to
7-19     timely pay fire department service fees or any other assessment
7-20     adopted by the district to support the fire department or the
7-21     provision of fire-fighting services.
7-22           (l)  Notwithstanding the requirements of Subsections (a)-(j),
7-23     a district providing potable water or sewer service to household
7-24     users may as part of its billing process collect from its customers
7-25     a voluntary contribution on behalf of organizations providing
7-26     fire-fighting activities to the district.  A district that chooses
7-27     to collect a voluntary contribution under this subsection must give
7-28     reasonable notice to its customers that the contribution is
7-29     voluntary.  Water and sewer service may not be terminated as a
7-30     result of failure to pay the voluntary contribution.
7-31           SECTION 24.  Chapter 49, Water Code, is amended by adding
7-32     Subchapter N to read as follows:
7-33                   SUBCHAPTER N.  RECREATIONAL FACILITIES
7-34           Sec. 49.461.  POLICY AND PURPOSE.  (a)  The legislature finds
7-35     that:
7-36                 (1)  the provision of parks and recreational facilities
7-37     is necessary and desirable for the health and well-being of the
7-38     people of this state;
7-39                 (2)  it is the policy of the state and the purpose of
7-40     this subchapter to encourage persons in districts to provide parks
7-41     and recreational facilities for their use and benefit;
7-42                 (3)  within constitutional limitations, the power to
7-43     enact laws vested in the legislature by Section 1, Article III,
7-44     Texas Constitution, is supreme;
7-45                 (4)  there is no constitutional inhibition that would
7-46     prohibit the legislature from authorizing districts to acquire,
7-47     own, develop, construct, improve, manage, operate, and maintain
7-48     parks and recreational facilities; and
7-49                 (5)  the general legislative power alone is adequate to
7-50     support the enactment of this subchapter without reference to any
7-51     specific constitutional authorization.
7-52           (b)  This subchapter provides complete authority to a
7-53     district to develop and maintain recreational facilities.
7-54           Sec. 49.462.  DEFINITIONS.  In this subchapter:
7-55                 (1)  "Recreational facilities" means parks,
7-56     landscaping, parkways, greenbelts, sidewalks, trails, public
7-57     right-of-way beautification projects, and recreational equipment
7-58     and facilities.  The term includes associated street and security
7-59     lighting.
7-60                 (2)  "Develop and maintain" means to acquire, own,
7-61     develop, construct, improve, manage, maintain, and operate.
7-62           Sec. 49.463.  AUTHORIZATION OF RECREATIONAL FACILITIES.  In
7-63     addition to the other purposes for which a district is created, a
7-64     district is created for the purpose of developing and maintaining
7-65     recreational facilities for the people in the district.  A district
7-66     may accomplish this purpose as provided in this subchapter.
7-67           Sec. 49.464.  ACQUISITION OF AND PAYMENT FOR RECREATIONAL
7-68     FACILITIES.  (a)  A district may not issue bonds supported by ad
7-69     valorem taxes to pay for the development and maintenance of
 8-1     recreational facilities.
 8-2           (b)  Except as provided by Subsection (a), a district may
 8-3     acquire recreational facilities and obtain funds to develop and
 8-4     maintain them in the same manner as authorized elsewhere in this
 8-5     code for the acquisition, development, and maintenance of other
 8-6     district facilities.  A district may charge fees directly to the
 8-7     users of recreational facilities and to water and wastewater
 8-8     customers of the district to pay for all or part of the cost of
 8-9     their development and maintenance.  To enforce payment of an unpaid
8-10     fee charged under this subsection, the district may:
8-11                 (1)  seek legal restitution of the unpaid fee; and
8-12                 (2)  refuse use of a recreational facility to the
8-13     person who owes the unpaid fee.
8-14           (c)  The district may not refuse use of facilities or
8-15     services other than recreational facilities to enforce an unpaid
8-16     fee.
8-17           Sec. 49.465.  STANDARDS.  The board by rule shall establish
8-18     standards for recreational facilities to be developed and
8-19     maintained by a district and for the allocation of a district's
8-20     funds for developing and maintaining recreational facilities in
8-21     relation to a district's financial requirements for other purposes.
8-22     To prevent duplication of recreational facilities provided by other
8-23     governmental entities, rules adopted by the board under this
8-24     section must require a district, before developing recreational
8-25     facilities, to make findings that the size and location of the
8-26     facilities have been established in consideration of municipal or
8-27     county recreational facilities, whether existing or proposed, that
8-28     serve or will serve the area in which the district is located.
8-29           SECTION 25.  Subsection (a), Section 51.013, Water Code, is
8-30     amended to read as follows:
8-31           (a)  A petition requesting creation of a district shall be
8-32     signed by a majority of the persons who hold title to land in the
8-33     proposed district which represents a total value of more than 50
8-34     percent of the value of all the land in the proposed district as
8-35     indicated by the [county] tax rolls of the central appraisal
8-36     district.  If there are more than 50 persons holding title to land
8-37     in the proposed district, the petition is sufficient if signed by
8-38     50 of them.
8-39           SECTION 26.  Subchapter D, Chapter 51, Water Code, is amended
8-40     by adding Section 51.122 to read as follows:
8-41           Sec. 51.122.  ADOPTING RULES AND REGULATIONS.  A district may
8-42     adopt and enforce reasonable rules and regulations to:
8-43                 (1)  secure and maintain safe, sanitary, and adequate
8-44     plumbing installations, connections, and appurtenances as
8-45     subsidiary parts of the district's sanitary sewer system;
8-46                 (2)  preserve the sanitary condition of all water
8-47     controlled by the district;
8-48                 (3)  prevent waste or the unauthorized use of water
8-49     controlled by the district;
8-50                 (4)  regulate privileges on any land or any easement
8-51     owned or controlled by the district; or
8-52                 (5)  provide and regulate a safe and adequate
8-53     freshwater distribution system.
8-54           SECTION 27.  Chapter 51, Water Code, is amended by adding
8-55     Subchapter E to read as follows:
8-56                         SUBCHAPTER E.  ENFORCEMENT
8-57           Sec. 51.221.  PENALTY FOR VIOLATION OF REGULATION.  A person
8-58     who violates a regulation adopted by a district under this chapter
8-59     or other law commits an offense.  An offense under this section is
8-60     a Class C misdemeanor.
8-61           SECTION 28.  Section 53.021, Water Code, is amended to read
8-62     as follows:
8-63           Sec. 53.021.  OFFICERS TO BE ELECTED.  In the election, five
8-64     supervisors [and the tax assessor and collector] are elected.
8-65           SECTION 29.  Section 54.014, Water Code, is amended to read
8-66     as follows:
8-67           Sec. 54.014.  PETITION.  When it is proposed to create a
8-68     district, a petition requesting creation shall be filed with the
8-69     commission.  The petition shall be signed by a majority in value of
 9-1     the holders of title of the land within the proposed district, as
 9-2     indicated by the [county] tax rolls of the central appraisal
 9-3     district.  If there are more than 50 persons holding title to the
 9-4     land in the proposed district, as indicated by the [county] tax
 9-5     rolls of the central appraisal district, the petition is sufficient
 9-6     if it is signed by 50 holders of title to the land.
 9-7           SECTION 30.  Section 54.236, Water Code, is amended to read
 9-8     as follows:
 9-9           Sec. 54.236.  Street or Security Lighting.  Subject to the
9-10     provisions of this section, a district may purchase, install
9-11     [accept], operate, and maintain street lighting or security
9-12     lighting within public utility easements or public rights-of-way
9-13     within the boundaries of the district.  [Such street or security
9-14     lighting facilities must have been constructed by an owner or
9-15     developer of property within the district and must have been
9-16     required by a city as a condition to the city granting its consent
9-17     to the creation of the district pursuant to Section 54.016 of this
9-18     code.]  A district may not issue bonds supported by ad valorem
9-19     taxes to pay for the purchase, installation, [development] and
9-20     maintenance of street or security lighting.
9-21           SECTION 31.  Subdivision (1), Section 54.772, Water Code, is
9-22     amended to read as follows:
9-23                 (1)  "Recreational facilities" means parks,
9-24     landscaping, parkways, greenbelts, sidewalks, trails, public
9-25     right-of-way beautification projects, and recreational equipment
9-26     and facilities.  The term includes associated street and security
9-27     lighting.
9-28           SECTION 32.  Subsection (a), Section 54.774, Water Code, is
9-29     amended to read as follows:
9-30           (a)  A district may not issue bonds supported by ad valorem
9-31     taxes to pay for the development and maintenance of recreational
9-32     facilities.
9-33           SECTION 33.  Subsection (a), Section 57.092, Water Code, is
9-34     amended to read as follows:
9-35           (a)  The district may enter into all necessary and proper
9-36     contracts and employ all persons and means necessary to purchase,
9-37     acquire, build, construct, complete, carry out, maintain, protect,
9-38     and, in case of necessity, add to and rebuild all works and
9-39     improvements [within the district] necessary or proper to fully
9-40     accomplish a reclamation plan lawfully adopted for the district.
9-41           SECTION 34.  Subchapter D, Chapter 57, Water Code, is amended
9-42     by adding Section 57.093 to read as follows:
9-43           Sec. 57.093.  ADOPTING RULES AND REGULATIONS.  A district may
9-44     adopt and enforce reasonable rules and regulations to:
9-45                 (1)  preserve the sanitary condition of all water
9-46     controlled by the district;
9-47                 (2)  prevent waste or the unauthorized use of water
9-48     controlled by the district;
9-49                 (3)  regulate privileges on any land or any easement
9-50     owned or controlled by the district;
9-51                 (4)  regulate the design and construction of
9-52     improvements and facilities that outfall, connect, or tie into
9-53     district improvements and facilities; or
9-54                 (5)  require the district's review and approval of
9-55     drainage plans for property within the district.
9-56           SECTION 35.  Subchapter Z, Chapter 402, Local Government
9-57     Code, is amended by adding Section 402.908 to read as follows:
9-58           Sec. 402.908.  SALE OF WATER OR SEWER SYSTEM.  A
9-59     municipality, without an election, may sell to a water district
9-60     operating under the authority of Section 59, Article XVI, Texas
9-61     Constitution, a water or sewer system owned by the municipality.
9-62           SECTION 36.  Sections 53.024, 57.152, and 57.153, Water Code,
9-63     are repealed.
9-64           SECTION 37.  (a)  In this section "district" means a
9-65     conservation and reclamation district created under Section 52,
9-66     Article III, and Section 59, Article XVI, Texas Constitution.
9-67           (b)  The following are validated and confirmed in all
9-68     respects:
9-69                 (1)  the creation of a district and all proceedings
 10-1    related to the creation of the district; and
 10-2                (2)  any act or proceeding of a district, including
 10-3    elections, not excepted in this Act, taken two years before the
 10-4    effective date of this Act, is validated as of the date on which it
 10-5    occurred.
 10-6          (c)  This section does not:
 10-7                (1)  apply to an act, a proceeding, a director or other
 10-8    official, or a bond or other obligation, the validity of which or
 10-9    of whom is the subject of litigation that is pending on the
10-10    effective date of this Act; and
10-11                (2)  validate any governmental act or proceeding that,
10-12    under the law of this state at the time the act or proceeding
10-13    occurred, was a misdemeanor or a felony.
10-14          SECTION 38.  This Act takes effect immediately if it receives
10-15    a vote of two-thirds of all the members elected to each house, as
10-16    provided by Section 39, Article III, Texas Constitution.  If this
10-17    Act does not receive the vote necessary for immediate effect, this
10-18    Act takes effect September 1, 2001.
10-19                                 * * * * *