By:  Carona                                                       S.B. No. 1660


A BILL TO BE ENTITLED

AN ACT

relating to the assumption of road district powers by certain 
conservation and reclamation districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 54, Water Code, is amended 
by adding Section 54.2341 to read as follows:
	Sec. 54.2341.  ACQUIRING ROAD DISTRICT POWERS.  (a)  This 
section does not apply to a district located in a county that:
		(1)  has a population of 3.3 million or more; or                       
		(2)  is adjacent to a county that has a population of 
3.3 million or more.
	(b)  The board of a district covered by this section may 
order an election to be held in the district to determine whether 
the district should assume the rights, authority, privileges, and 
functions of a road district under Article III, Section 52(b)(3), 
of the Texas Constitution.  The election shall be ordered, 
conducted, and the results canvassed in the manner provided by the 
applicable provisions of this chapter and the Election Code.  The 
ballots for the election shall be printed to provide for voting for 
or against:  The assumption by the Municipal Utility District of the 
rights, authority, privileges, and functions of a road district 
under Article III, Section 52(b)(3), of the Texas Constitution.  If 
a majority of the persons voting in the election vote in favor of 
the proposition, the district shall assume the rights, authority, 
privileges, and functions of a road district operating under 
Article III, Section 52(b)(3), of the Texas Constitution, Chapter 
257, Transportation Code, and other general laws of this state 
relating to road districts.
	(c)  A district that has adopted the rights, authority, 
privileges, and functions of a road district in the manner provided 
by Subsection (b) may not issue bonds or otherwise lend its credit 
for road district purposes except on approval of not less than 
two-thirds of the qualified voters of the district voting at an 
election called and held for that purpose.  The total amount of 
bonds, notes, and other obligations of the district issued or 
incurred under this subsection may not exceed one-fourth of the 
assessed valuation of real property in the district.
	(d)  A district that has adopted the rights, authority, 
privileges, and functions of a road district in the manner provided 
by Subsection (b) may, following approval of a construction 
contract by the board, reimburse expenditures as provided by 
Sections 257.003(a) and (b), Transportation Code, without any 
additional approval under Section 257.003, Transportation Code.
	(e)  Bonds issued by a district under this section for road 
purposes shall be subject to review only by the attorney general.  
The attorney general shall review the bonds according to the 
procedures set out in Section 49.184.
	(f)  A district that has adopted the rights, authority, 
privileges, and functions of a road district in the manner provided 
by Subsection (b) may acquire by condemnation any land, easements, 
or other property, inside the district boundaries, for a district 
road project.
	(g)  A district that has adopted the rights, authority, 
privileges, and functions of a road district in the manner provided 
by Subsection (b) shall maintain all roads constructed or purchased 
by the district, unless the county or another political subdivision 
assumes responsibility for maintaining the roads.
	SECTION 2.  This Act takes effect immediately if it 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, this 
Act takes effect September 1, 2005.