SRC-TAG S.B. 624 78(R) BILL ANALYSIS
Senate Research CenterS.B. 624
By: Lindsay
Natural Resources
6-27-2003
Enrolled
DIGEST AND PURPOSE
Currently, the Texas Constitution prevents the use of water district tax
receipts for the development of parks and recreational facilities.
Consequently, districts are limited in their ability to pay for the
construction of facilities. S.B. 624 requires voter approval before
tax-backed bonds may be issued for the development of recreational
facilities.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Commission on
Environmental Quality in SECTION 7 (Section 49.466, Water Code) of this
bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 49.001(a)(10), Water Code, to redefine
"district facility."
SECTION 2. Amends Section 49.107, Water Code, by adding Subsection (h),
to prohibit
an operation and maintenance tax to be used for recreational facilities,
as defined by Section 49.462, levied by a district located in a county
with a population of more than 3.3 million or in a county adjacent to that
county from exceeding 10 cents per $100 of assessed valuation of taxable
property in the district, to the extent authorized by Section 59, Article
XVI, Texas Constitution.
SECTION 3. Amends Section 49.461(a), Water Code, to delete text regarding
certain legislative findings.
SECTION 4. Amends Section 49.463, Water Code, as follows:
Sec. 49.463. AUTHORIZATION OF RECREATIONAL FACILITIES. Provides that a
district is created for the purpose of financing recreational facilities
for the people in the district, in addition to developing and maintaining
such facilities and the other purposes for which a district is created.
Makes a nonsubstantive change.
SECTION 5. Amends Section 49.464, Water Code, by amending Subsections (a)
and (d), as follows:
(a) Provides that Section 49.4645 is an exception to prohibiting a
district from issuing bonds supported by ad valorem taxes to pay for the
development and maintenance of recreational facilities.
(d) Authorizes a district to issue bonds payable solely from revenues by
resolution or order of the governing body of a district board (board)
without an election.
SECTION 6. Amends Subchapter N, Chapter 49, Water Code, by adding Section
49.4645, as follows:
Section 49.4645. DISTRICT IN CERTAIN COUNTIES: BONDS FOR RECREATIONAL
FACILITIES. (a) Authorizes a district all or part of which is located in
Bastrop County, Bexar County, Waller County, Travis County, Williamson
County, Harris County, Galveston County, Brazoria County, or Fort Bend
County to issue bonds supported by ad valorem taxes to pay for the
development and maintenance of recreational facilities only if the bonds
are authorized by a majority vote of the qualified voters of the district
voting in an election held for that purpose. Prohibits the outstanding
principal amount of bonds, notes, and other obligations issued to finance
parks and recreational facilities payable from any source from exceeding
an amount equal to one percent of the value of the taxable property in the
district as shown by the tax rolls of the central appraisal district at
the time of the issuance of the bonds, notes, and other obligations or an
amount greater than the estimated cost provided in the park plan under
Subsection (b), whichever is smaller. Prohibits the district from issuing
bonds supported by ad valorem taxes to pay for the development and
maintenance of indoor or outdoor swimming pools or golf courses.
(b) Requires the board, not later than the 10th day before an election is
held to authorize the issuance of bonds for the development and
maintenance of recreational facilities, to file in the district office for
review by the public a park plan covering the land, improvements,
facilities, and equipment to be purchased or constructed and their
estimated cost, together with maps, plats, drawings, and data fully
showing and explaining the park plan. Provides that the park plan is not
part of the proposition to be voted on, and the park plan does not create
a contract with the voters.
(c) Requires the notice of the bond election for the development and
maintenance of recreational facilities to contain the proposition to be
voted on, which must include the estimate of the probable cost of design,
construction, purchase, acquisition, and maintenance of improvements and
additions and incidental expenses connected with the improvements and the
issuance of bonds.
(d) Authorizes a bond election for the development and maintenance of
recreational facilities to be held on the same day as another district
election. Authorizes the board to call a bond election by a separate
election order or as part of another election order. Authorizes the board
to submit multiple purposes in a single proposition at an election.
(e) Authorizes the board to call a bond election for the development and
maintenance of recreational facilities as a result of an agreement to
annex additional territory into the district.
SECTION 7. Amends Subchapter N, Chapter 49, by adding Section 49.466,
Water Code, as follows
Section 49.466. COMMISSION RULES. (a) Requires the Texas Commission on
Environmental Quality (TCEQ) to adopt rules regarding the provision and
financing of recreational facility funded through the issuance of bonds
supported by ad valorem taxes.
(b) Requires TCEQ rules to emphasize the primary goal of financing water,
sewer, and drainage facilities to serve the district; emphasize and
encourage the secondary goal of financing recreational facilities; and
encourage the conveyance of land to be used for recreational facilities.
SECTION 8 Repealer: Section 49.461(b), Water Code (regarding policy and
purpose).
Repealer: Subchapter (I), Chapter 54, Water Code
(Recreational
Facilities).
SECTION 9. Provides that this Act takes effect on the date on which the
constitutional
amendment proposed by the 78th legislature, Regular Session, 2003,
relating to the provision of
parks and recreational facilities by certain conservation and reclamation
districts is approved by the voters. Provides that if that amendment is
not approved by the voters, this Act has no effect.