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78R8317 SGA-D
By: Madla S.B. No. 1304
A BILL TO BE ENTITLED
AN ACT
relating to the creation, division, or conversion of, or purchaser
notice about, certain kinds of water districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 49.452(b), (c), and (d), Water Code,
are amended to read as follows:
(b) The prescribed notice for districts located in whole or
in part in the extraterritorial jurisdiction of one or more
home-rule municipalities and not located within the corporate
boundaries of a municipality shall be executed by the seller and
shall read as follows:
"The real property, described below, that you are about to
purchase is located in the __________ District. The district is a
governmental agency and a political subdivision of this state. The
district is governed by a board of directors. The district may be
contacted at the following address and telephone number:
__________(Address)
__________(Telephone Number)
"The district has taxing authority separate from any other
taxing authority and may, subject to voter approval, issue an
unlimited amount of bonds and levy an unlimited rate of tax in
payment of such bonds. As of this date, the rate of taxes levied by
the district on real property located in the district is
$__________ on each $100 of assessed valuation. If the district has
not yet levied taxes, the most recent projected rate of tax, as of
this date, is $__________ on each $100 of assessed valuation. The
total amount of bonds, excluding refunding bonds and any bonds or
any portion of bonds issued that are payable solely from revenues
received or expected to be received under a contract with a
governmental entity, approved by the voters and which have been or
may, at this date, be issued is $__________, and the aggregate
initial principal amounts of all bonds issued for one or more of the
specified facilities of the district and payable in whole or in part
from property taxes is $__________.
"The district has the authority to adopt and impose a standby
fee on property in the district that has water, sanitary sewer, or
drainage facilities and services available but not connected and
which does not have a house, building, or other improvement located
thereon and does not substantially utilize the utility capacity
available to the property. The district may exercise the authority
without holding an election on the matter. As of this date, the
most recent amount of the standby fee is $__________. An unpaid
standby fee is a personal obligation of the person that owned the
property at the time of imposition and is secured by a lien on the
property. Any person may request a certificate from the district
stating the amount, if any, of unpaid standby fees on a tract of
property in the district.
"The district is located in whole or in part in the
extraterritorial jurisdiction of the City of __________. By law, a
district located in the extraterritorial jurisdiction of a
municipality may be annexed without the consent of the district or
the voters of the district. When a district is annexed, the
district is dissolved.
"The purpose of this district is to provide water, sewer,
drainage, or flood control facilities and services within the
district through the issuance of bonds payable in whole or in part
from property taxes. The cost of these utility facilities is not
included in the purchase price of your property, and these utility
facilities are owned or to be owned by the district. The legal
description of the property you are acquiring is as follows:
__________(Date)
___________________
Signature of Seller
PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
"The undersigned purchaser hereby acknowledges receipt of
the foregoing notice at or prior to execution of a binding contract
for the purchase of the real property described in such notice or at
closing of purchase of the real property.
__________(Date)
______________________
Signature of Purchaser
"(Note: Correct district name, contact information, tax
rate, bond amounts, and legal description are to be placed in the
appropriate space.) Except for notices included as an addendum or
paragraph of a purchase contract, the notice shall be executed by
the seller and purchaser, as indicated. If the district does not
propose to provide one or more of the specified facilities and
services, the appropriate purpose may be eliminated. If the
district has not yet levied taxes, a statement of the district's
most recent projected rate of tax is to be placed in the appropriate
space. If the district does not have approval from the commission
to adopt and impose a standby fee, the second paragraph of the
notice may be deleted. For the purposes of the notice form required
to be given to the prospective purchaser prior to execution of a
binding contract of sale and purchase, a seller and any agent,
representative, or person acting on the seller's behalf may modify
the notice by substitution of the words 'January 1, ___' for the
words 'this date' and place the correct calendar year in the
appropriate space."
(c) The prescribed notice for districts located in whole or
in part within the corporate boundaries of a municipality shall be
executed by the seller and shall read as follows:
"The real property, described below, that you are about to
purchase is located in the __________ District. The district is a
governmental agency and a political subdivision of this state. The
district is governed by a board of directors. The district may be
contacted at the following address and telephone number:
__________(Address)
__________(Telephone Number)
"The district has taxing authority separate from any other
taxing authority and may, subject to voter approval, issue an
unlimited amount of bonds and levy an unlimited rate of tax in
payment of such bonds. As of this date, the rate of taxes levied by
the district on real property located in the district is
$__________ on each $100 of assessed valuation. If the district has
not yet levied taxes, the most recent projected rate of tax, as of
this date, is $__________ on each $100 of assessed valuation. The
total amount of bonds, excluding refunding bonds and any bonds or
any portion of bonds issued that are payable solely from revenues
received or expected to be received under a contract with a
governmental entity, approved by the voters and which have been or
may, at this date, be issued is $__________, and the aggregate
initial principal amounts of all bonds issued for one or more of the
specified facilities of the district and payable in whole or in part
from property taxes is $__________.
"The district has the authority to adopt and impose a standby
fee on property in the district that has water, sanitary sewer, or
drainage facilities and services available but not connected and
which does not have a house, building, or other improvement located
thereon and does not substantially utilize the utility capacity
available to the property. The district may exercise the authority
without holding an election on the matter. As of this date, the
most recent amount of the standby fee is $__________. An unpaid
standby fee is a personal obligation of the person that owned the
property at the time of imposition and is secured by a lien on the
property. Any person may request a certificate from the district
stating the amount, if any, of unpaid standby fees on a tract of
property in the district.
"The district is located in whole or in part within the
corporate boundaries of the City of __________. The taxpayers of
the district are subject to the taxes imposed by the municipality
and by the district until the district is dissolved. By law, a
district located within the corporate boundaries of a municipality
may be dissolved by municipal ordinance without the consent of the
district or the voters of the district.
"The purpose of this district is to provide water, sewer,
drainage, or flood control facilities and services within the
district through the issuance of bonds payable in whole or in part
from property taxes. The cost of these utility facilities is not
included in the purchase price of your property, and these utility
facilities are owned or to be owned by the district. The legal
description of the property you are acquiring is as follows:
___________(Date)
___________________
Signature of Seller
PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
"The undersigned purchaser hereby acknowledges receipt of
the foregoing notice at or prior to execution of a binding contract
for the purchase of the real property described in such notice or at
closing of purchase of the real property.
__________(Date)
______________________
Signature of Purchaser
"(Note: Correct district name, contact information, tax
rate, bond amounts, and legal description are to be placed in the
appropriate space.) Except for notices included as an addendum or
paragraph of a purchase contract, the notice shall be executed by
the seller and purchaser, as indicated. If the district does not
propose to provide one or more of the specified facilities and
services, the appropriate purpose may be eliminated. If the
district has not yet levied taxes, a statement of the district's
most recent projected rate of tax is to be placed in the appropriate
space. If the district does not have approval from the commission
to adopt and impose a standby fee, the second paragraph of the
notice may be deleted. For the purposes of the notice form required
to be given to the prospective purchaser prior to execution of a
binding contract of sale and purchase, a seller and any agent,
representative, or person acting on the seller's behalf may modify
the notice by substitution of the words 'January 1,__________' for
the words 'this date' and place the correct calendar year in the
appropriate space."
(d) The prescribed notice for districts that are not located
in whole or in part within the corporate boundaries of a
municipality or the extraterritorial jurisdiction of one or more
home-rule municipalities shall be executed by the seller and shall
read as follows:
"The real property, described below, that you are about to
purchase is located in the __________ District. The district is a
governmental agency and a political subdivision of this state. The
district is governed by a board of directors. The district may be
contacted at the following address and telephone number:
___________(Address)
___________(Telephone Number)
"The district has taxing authority separate from any other
taxing authority and may, subject to voter approval, issue an
unlimited amount of bonds and levy an unlimited rate of tax in
payment of such bonds. As of this date, the rate of taxes levied by
the district on real property located in the district is
$__________ on each $100 of assessed valuation. If the district has
not yet levied taxes, the most recent projected rate of tax, as of
this date, is $__________ on each $100 of assessed valuation. The
total amount of bonds, excluding refunding bonds and any bonds or
any portion of bonds issued that are payable solely from revenues
received or expected to be received under a contract with a
governmental entity, approved by the voters and which have been or
may, at this date, be issued is $__________, and the aggregate
initial principal amounts of all bonds issued for one or more of the
specified facilities of the district and payable in whole or in part
from property taxes is $__________.
"The district has the authority to adopt and impose a standby
fee on property in the district that has water, sanitary sewer, or
drainage facilities and services available but not connected and
which does not have a house, building, or other improvement located
thereon and does not substantially utilize the utility capacity
available to the property. The district may exercise the authority
without holding an election on the matter. As of this date, the
most recent amount of the standby fee is $__________. An unpaid
standby fee is a personal obligation of the person that owned the
property at the time of imposition and is secured by a lien on the
property. Any person may request a certificate from the district
stating the amount, if any, of unpaid standby fees on a tract of
property in the district.
"The purpose of this district is to provide water, sewer,
drainage, or flood control facilities and services within the
district through the issuance of bonds payable in whole or in part
from property taxes. The cost of these utility facilities is not
included in the purchase price of your property, and these utility
facilities are owned or to be owned by the district. The legal
description of the property you are acquiring is as follows:
__________(Date)
___________________
Signature of Seller
PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
"The undersigned purchaser hereby acknowledges receipt of
the foregoing notice at or prior to execution of a binding contract
for the purchase of the real property described in such notice or at
closing of purchase of the real property.
__________(Date)
______________________
Signature of Purchaser
"(Note: Correct district name, contact information, tax
rate, bond amounts, and legal description are to be placed in the
appropriate space.) Except for notices included as an addendum or
paragraph of a purchase contract, the notice shall be executed by
the seller and purchaser, as indicated. If the district does not
propose to provide one or more of the specified facilities and
services, the appropriate purpose may be eliminated. If the
district has not yet levied taxes, a statement of the district's
most recent projected rate of tax is to be placed in the appropriate
space. If the district does not have approval from the commission
to adopt and impose a standby fee, the second paragraph of the
notice may be deleted. For the purposes of the notice form required
to be given to the prospective purchaser prior to execution of a
binding contract of sale and purchase, a seller and any agent,
representative, or person acting on the seller's behalf may modify
the notice by substitution of the words 'January 1, ______' for the
words 'this date' and place the correct calendar year in the
appropriate space."
SECTION 2. Section 51.021, Water Code, is amended by adding
Subsection (d) to read as follows:
(d) If the commissioners court or the commission grants the
petition requesting the creation of a district, within 15 days
after the date of the order the commissioners court or the
commission, as appropriate, shall file with the county clerk, for
filing in the county deed records of each county in which a part of
the district is located, the order creating the district. The
filing must explain that the order creating the district must be
confirmed and ratified by an election.
SECTION 3. Section 51.032(b), Water Code, is amended to
read as follows:
(b) A certified copy of the order of the commission granting
a petition and naming the directors shall be filed within 15 days
after the date of the order in the office of the county clerk for
filing in the county deed records of each county in which a portion
of the district is located. The filing must explain that the order
creating the district must be confirmed and ratified by an
election.
SECTION 4. Section 51.040, Water Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) The governing body of a district which desires to
convert into a district operating under this chapter shall adopt
and enter in the minutes of the governing body a resolution
declaring that, in its judgment, conversion into a water control
and improvement district operating under this chapter and under
Article XVI, Section 59, of the Texas Constitution, would serve the
best interest of the district and would be a benefit to the land and
property included in the district. The resolution shall contain a
list of the powers the district desires to retain after conversion
and shall also request:
(1) the commissioners court to hold a hearing on the
conversion of the district if the district is located entirely
within one county; or
(2) the commission to hold a hearing on the conversion
of the district if the district includes land in more than one
county.
(c) The district shall file a copy of the resolution with
the commissioners court or the commission, as applicable.
SECTION 5. Subchapter B, Chapter 51, Water Code, is amended
by adding Section 51.0402 to read as follows:
Sec. 51.0402. SETTING OF DATE, TIME, AND PLACE OF
CONVERSION HEARING. Promptly after the resolution requesting
conversion is filed, the commissioners court or the commission, as
applicable, or a person authorized by the commissioners court or
the commission, as applicable, shall set a date, time, and place for
a hearing on the conversion.
SECTION 6. Section 51.041(a), Water Code, is amended to
read as follows:
(a) Notice of the conversion hearing [adoption of a
resolution under Section 51.040 of this code] shall be given by
publishing notice [the resolution] in a newspaper with general
circulation in the county or counties in which the district is
located.
SECTION 7. Section 51.042, Water Code, is amended to read as
follows:
Sec. 51.042. CONVERSION OF DISTRICT; FINDINGS. (a) If, on
a hearing, the commissioners court or the commission, as
applicable, [governing body of the district] finds that conversion
of the district into one operating under this chapter would serve
the best interest of the district and would be a benefit to the land
and property included in the district, it shall enter an order
making this finding and include in the order a list of the powers to
be retained by the district after conversion that the commissioners
court or the commission, as applicable, approves. The order shall
also provide that conversion is not final unless the voters, in the
election provided by Section 51.0422, confirm the conversion of the
district [and the district shall become a district operating under
this chapter].
(b) If the commissioners court or the commission, as
applicable, [governing body] finds that the conversion of the
district would not serve the best interest of the district and would
not be a benefit to the land and property included in the district,
it shall enter an order against conversion of the district into one
operating under this chapter.
(c) The findings of the commissioners court or the
commission, as applicable, [governing body of a district] entered
under this section are [final and not] subject to appeal or review
not later than the 30th day after the date the order approving or
denying the conversion is entered under this section.
SECTION 8. Subchapter B, Chapter 51, Water Code, is amended
by adding Section 51.0422 to read as follows:
Sec. 51.0422. CONVERSION ELECTION. (a) If the
commissioners court or the commission, as applicable, finds in
favor of the conversion of the district, the governing body of the
district shall order an election to be held in the district to
confirm the conversion of the district.
(b) A conversion election may be held on the same day as any
other district election.
(c) Notice of a conversion election shall state the day and
each place for holding the election and the proposition to be voted
on.
(d) The ballots for a conversion election shall be printed
to provide for voting for or against the proposition: "The
conversion of the __________ (name of the district) into a district
operating as a water control and improvement district."
(e) Immediately after the conversion election, the
presiding judge of each polling place shall deliver the returns of
the election to the governing body of the district. The governing
body shall canvass the returns and declare the results at the
earliest practicable time.
(f) If a majority of the votes cast in the election favor the
conversion of the district, the governing body of the district
shall declare that the district is converted into a district
operating under this chapter and enter the results in its minutes.
If a majority of the votes cast in the election are against the
conversion of the district, the governing body of the district
shall declare that the conversion of the district was defeated and
enter the results in its minutes.
(g) The governing body of the district shall file a copy of
the order canvassing the results of the conversion election:
(1) with the commissioners court or the commission, as
applicable; and
(2) if the voters confirm the conversion of the
district, in the deed records of each county in which the district
is located.
SECTION 9. Sections 51.044(a) and (b), Water Code, are
amended to read as follows:
(a) As provided by Subsection (b), any [Any] water
improvement district, water control and preservation district,
fresh water supply district, levee improvement district, drainage
district, or navigation district, after an election [conversion]
under Section 51.0422 confirming the conversion of the district
[51.040 of this code], may continue to exercise all necessary
specific powers under any specific conditions provided by the
chapter of this code under which the district was operating before
conversion.
(b) At the time of making the order of conversion, the
commissioners court or the commission, as applicable, [governing
body] shall specify in the order the specific provisions of the
chapter of the code under which the district had been operating that
have been approved and [which] are to be preserved and made
applicable to the operations of the district after conversion into
a district operating under this chapter.
SECTION 10. The heading to Section 51.749, Water Code, is
amended to read as follows:
Sec. 51.749. APPROVAL OF [ELECTION TO APPROVE] DIVISION.
SECTION 11. Section 51.749, Water Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) After the board of the original district has agreed on
the terms and conditions of division, which shall include a plan for
the payment of any outstanding current obligations and performance
of any outstanding obligations of the original district, and has
prepared a metes and bounds description of the proposed districts,
the board shall submit a proposal for division to the entity that
issued the order creating the district for approval. If the
district was created by an act of the legislature, the board shall
submit a proposal for division to the commission.
(a-1) If the entity that issued the order creating the
district or the commission approves the division of the district,
the board [it] shall order an election to be held in the district to
determine whether the original district should be divided as
proposed.
(d) If the division of the original district is approved by
a majority of the qualified voters of the district voting in the
election, within 15 days after the date of the election the board of
the original district shall file with the county clerk, for filing
in the county deed records of each county in which a part of the
district is located, an order declaring the results of the election
and dividing the original district.
SECTION 12. Section 53.016, Water Code, is amended to read
as follows:
Sec. 53.016. TIME AND PLACE OF HEARING. The commissioners
court or county judge shall [immediately] set a time and place for a
hearing on the petition by the commissioners court. The hearing
must be held during the period beginning on the 15th day and ending
with the 30th day after the day the petition is presented.
SECTION 13. Section 53.019(a), Water Code, is amended to
read as follows:
(a) At the hearing on the petition, any person whose land is
included in or would be affected by the creation of the district may
appear and contest the creation of the district and may offer
testimony to show that the district:
(1) is or is not necessary;
(2) would or would not be a public utility or benefit
to land in the district; and
(3) would or would not be feasible or practicable.
[The commissioners court shall have jurisdiction to determine all
issues pertaining to the sufficiency of the petition and shall
allow any interested person to appear before it in person or by
attorney to offer testimony relative to the sufficiency of the
petition.]
SECTION 14. Subchapter B, Chapter 53, Water Code, is
amended by adding Section 53.0195 to read as follows:
Sec. 53.0195. GRANTING OR REFUSING PETITION. (a) The
commissioners court shall grant the petition requesting the
creation of a district if it appears at the hearing that:
(1) organization of the district as requested is
feasible and practicable;
(2) the land to be included and the residents of the
proposed district will be benefited by the creation of the
district;
(3) there is a public necessity or need for the
district; and
(4) the creation of the district would further the
public welfare.
(b) If the commissioners court fails to make the findings
required by Subsection (a), it shall refuse to grant the petition.
(c) If the commissioners court finds that any of the land
sought to be included in the proposed district will not be benefited
by inclusion in the district, it may exclude those lands not to be
benefited and shall redefine the boundaries of the proposed
district to include only the land that will receive benefits from
the district.
SECTION 15. Subchapter B, Chapter 53, Water Code, is
amended by adding Section 53.0196 to read as follows:
Sec. 53.0196. FILING OF ORDER. If the commissioners court
grants a petition requesting the creation of a district, within 15
days after the date of the order the commissioners court shall file
with the county clerk, for filing in the county deed records of each
county in which a part of the district is located, the order
creating the district. The filing must explain that the order
creating the district must be confirmed and ratified by an
election.
SECTION 16. Section 53.029(b), Water Code, is amended to
read as follows:
(b) A district covered by this section may be divided into
two new districts if:
(1) it has no outstanding bonded debt; [and]
(2) it is not levying ad valorem taxes; and
(3) the division is approved by the entity that issued
the order creating the district or, if the district was created by
an act of the legislature, by the Texas Commission on Environmental
Quality.
(b-1) The division procedure is prescribed by Sections
53.030 to 53.041 of this code.
SECTION 17. Section 53.040, Water Code, is amended to read
as follows:
Sec. 53.040. ELECTED SUPERVISORS TAKE OFFICE. If the
election results in a division of the district, the five candidates
receiving the most votes in each new district shall be declared
elected. They shall immediately qualify in accordance with Section
49.055. The newly elected supervisors in each new district shall
immediately file with the county clerk, for filing in the county
deed records of each county in which a part of the district is
located, an order declaring the results of the election and
dividing the original district.
SECTION 18. Chapter 53, Water Code, is amended by adding
Subchapter G to read as follows:
SUBCHAPTER G. CONVERSION OF DISTRICTS
Sec. 53.231. CONVERSION OF CERTAIN DISTRICTS INTO DISTRICTS
OPERATING UNDER THIS CHAPTER. (a) Any water control and
improvement district created under Section 52, Article III, or
Section 59, Article XVI, Texas Constitution, may be converted to a
district operating under this chapter.
(b) The governing body of a district that desires to convert
into a district operating under this chapter shall adopt and enter
in the minutes of the governing body a resolution declaring that, in
its judgment, conversion into a fresh water supply district
operating under this chapter and under Section 59, Article XVI,
Texas Constitution, would serve the best interest of the district
and would be a benefit to the land and property included in the
district. The resolution shall also request:
(1) the commissioners court to hold a hearing on the
conversion of the district if the district is located entirely
within one county; or
(2) the commission to hold a hearing on the conversion
of the district if the district includes land in more than one
county.
(c) The district shall file a copy of the resolution with
the commissioners court or the commission, as applicable.
Sec. 53.232. SETTING OF DATE, TIME, AND PLACE OF CONVERSION
HEARING. Promptly after the resolution requesting conversion is
filed, the commissioners court or the commission, as applicable, or
a person authorized by the commissioners court or the commission,
as applicable, shall set a date, time, and place for a hearing on
the conversion.
Sec. 53.233. CONVERSION OF DISTRICT; NOTICE. (a) Notice of
the conversion hearing shall be given by publishing notice in a
newspaper with general circulation in the county or counties in
which the district is located.
(b) The notice shall be published once a week for two
consecutive weeks with the first publication not less than 14 full
days before the time set for a hearing.
(c) The notice shall:
(1) state the time and place of the hearing;
(2) set out the resolution in full; and
(3) notify all interested persons to appear and offer
testimony for or against the proposal contained in the resolution.
Sec. 53.234. CONVERSION OF DISTRICT; FINDINGS. (a) If, on
a hearing, the commissioners court or the commission, as
applicable, finds that conversion of the district into one
operating under this chapter would serve the best interest of the
district and would be a benefit to the land and property included in
the district, it shall enter an order making this finding but
providing that conversion is not final unless the voters, in the
election provided by Section 53.235, confirm the conversion of the
district.
(b) If the commissioners court or the commission, as
applicable, finds that the conversion of the district would not
serve the best interest of the district and would not be a benefit
to the land and property included in the district, it shall enter an
order against conversion of the district into one operating under
this chapter.
(c) The findings of the commissioners court or the
commission, as applicable, entered under this section are subject
to appeal or review not later than the 30th day after the date the
order approving or denying the conversion is entered under this
section.
Sec. 53.235. CONVERSION ELECTION. (a) If the
commissioners court or the commission, as applicable, finds in
favor of the conversion of the district, the governing body of the
district shall order an election to be held in the district to
confirm the conversion of the district.
(b) A conversion election may be held on the same day as any
other district election.
(c) Notice of a conversion election shall state the day and
each place for holding the election and the proposition to be voted
on.
(d) The ballots for a conversion election shall be printed
to provide for voting for or against the proposition: "The
conversion of the __________ (name of the district) into a district
operating as a fresh water supply district."
(e) Immediately after the conversion election, the
presiding judge of each polling place shall deliver the returns of
the election to the governing body of the district. The governing
body shall canvass the returns and declare the results at the
earliest practicable time.
(f) If a majority of the votes cast in the election favor the
conversion of the district, the governing body of the district
shall declare that the district is converted into a district
operating under this chapter and enter the results in its minutes.
If a majority of the votes cast in the election are against the
conversion of the district, the governing body of the district
shall declare that the conversion of the district was defeated and
enter the results in its minutes.
(g) The governing body of the district shall file a copy of
the order canvassing the results of the conversion election:
(1) with the commissioners court or the commission, as
applicable; and
(2) if the voters confirm the conversion of the
district, in the deed records of each county in which the district
is located.
Sec. 53.236. EFFECT OF CONVERSION. A district that
converts into a district operating under this chapter shall:
(1) be constituted a fresh water supply district
operating under and governed by this chapter;
(2) be a conservation and reclamation district under
Section 59, Article XVI, Texas Constitution; and
(3) have and may exercise all the powers, authority,
functions, and privileges provided in this chapter in the same
manner and to the same extent as if the district had been created
under this chapter.
SECTION 19. Section 54.021, Water Code, is amended by
adding Subsection (f) to read as follows:
(f) If the commission grants the petition requesting the
creation of a district, within 15 days after the date of the order
the commission shall file with the county clerk, for filing in the
county deed records of each county in which a part of the district
is located, the order creating the district. The filing must
explain that the order creating the district must be confirmed and
ratified by an election.
SECTION 20. Section 51.045, Water Code, is repealed.
SECTION 21. (a) Sections 49.452(b), (c), and (d), Water
Code, as amended by this Act, apply only to notice given to a
purchaser of real property within a water district on or after the
effective date of this Act. Notice given to a purchaser before the
effective date of this Act is governed by the law in effect at the
time the notice was given, and the former law is continued in effect
for that purpose.
(b) If before September 1, 2003, the Texas Commission on
Environmental Quality, a county commissioners court, or the
governing body of a district by order has granted a petition for or
authorized the creation or division of a water control and
improvement district, fresh water supply district, or municipal
utility district, as applicable, subject to a confirmation
election, and the election has not been held before that date, the
commission, commissioners court, or governing body, as
appropriate, not later than September 16, 2003, shall comply with
the filing requirements of Sections 51.021(d), 53.0196, and
54.021(f), Water Code, as added by this Act, and Section 51.032(b),
Water Code, as amended by this Act.
(c) Sections 51.040(b), 51.041(a), 51.042, and 51.044(a)
and (b), Water Code, as amended by this Act, and Sections 51.040(c),
51.0402, and 51.0422, and Subchapter G, Chapter 53, Water Code, as
added by this Act, apply only to the conversion of a district to one
operating as a water control and improvement district or a fresh
water supply district for which the governing body of the district
adopts a resolution on or after the effective date of this Act
proposing conversion of the district. If before the effective date
of this Act the governing body of a district adopts a resolution
proposing conversion of the district to one operating as a water
control and improvement district or a fresh water supply district,
the conversion of the district is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
(d) Sections 51.749(a) and 53.029(b), Water Code, as
amended by this Act, apply only to the division of a water control
and improvement district or freshwater supply district for which a
landowner files a petition for division or the board moves to
consider a proposal for division on or after that date. The
division of a district for which a landowner files a petition for
division or the board moves to consider a proposal for division
before the effective date of this Act is governed by the law in
effect at that time, and that law is continued in effect for that
purpose.
(e) Sections 53.016 and 53.019(a), Water Code, as amended by
this Act, and Section 53.0195, Water Code, as added by this Act,
apply only to a hearing for which notice is given on or after the
effective date of Sections 12, 13, and 14 of this Act. A hearing for
which notice is given before the effective date of Sections 12, 13,
and 14 of this Act is governed by the law applicable to the hearing
immediately before the effective date of Sections 12, 13, and 14 of
this Act, and that law is continued in effect for that purpose.
SECTION 22. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2003.
(b) Sections 12, 13, and 14 of this Act take effect
immediately if this Act receives a vote of two-thirds of all the
members elected to each house, as provided by Section 39, Article
III, Texas Constitution. If this Act does not receive the vote
necessary for immediate effect, Sections 12, 13, and 14 of this Act
take effect September 1, 2003.