81R29919 SGA-D

By: Callegari H.B. No. 3335

Substitute the following for H.B. No. 3335:

By: Corte C.S.H.B. No. 3335

A BILL TO BE ENTITLED

AN ACT

relating to the powers of certain water districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 49.101, Water Code, is amended to read as follows:

Sec. 49.101. GENERAL. (a) All elections shall be generally conducted in accordance with the Election Code except as otherwise provided for by this code.

(b) Write-in candidacies for any district office shall be governed by Subchapter C, Chapter 146, Election Code.

(c) The board may contract with a person to serve as the district's agent in the same manner as another officer or employee of the district under Section 31.123, Election Code.

(d) Sections 32.009 and 42.002, Election Code, do not apply to an election held by a district.

(e) Notwithstanding the requirements of Section 32.051, Election Code, to serve as an election judge in an election held by a district, a person must be a registered voter of the county in which the district is located.

(f) Notwithstanding Sections 61.012 and 61.013, Election Code, a district is exempt from the acquisition, lease, or use of an electronic voting system for an election if:

(1) the election is a confirmation election or an election held jointly with a confirmation election on the same date and in conjunction with the confirmation election, except for an election in which a federal office appears on the ballot;

(2) the most recently scheduled district directors election was not held, as provided by Section 2.053(b), Election Code; or

(3) fewer than 250 voters voted at the most recently held district directors election.

(g) A district eligible for the exemption under Subsection (f) must publish notice in a periodical of general circulation in an area that includes the district and mail notice to each voter in the district regarding the district's intention to hold an election without providing a voting station that meets the requirements for accessibility under 42 U.S.C. Section 15481(a)(3) on election day and during the period for early voting by personal appearance. The notice must provide that any voter in the district may request the use of a voting station that meets those requirements to accommodate voting by a person with a disability and provide information on how to submit such a request. On receiving such a request, the district shall comply with the request.

SECTION 2. Subchapter D, Chapter 49, Water Code, is amended by adding Section 49.1045 to read as follows:

Sec. 49.1045. JOINT ELECTIONS WITH COUNTIES. (a) This section applies only to a district with 10 or fewer registered voters.

(b) A district that holds an election jointly with a county in which the district is wholly or partly located may provide for a certification of the voting results if the election results indicate that there were more votes cast in the election than the number of registered voters in the district. To certify the district votes, the district may have each person whose signature is on the sign-in sheet for the joint election certify the manner in which the person voted in the election and that the person was a qualified voter on the day of the election, and the certified votes shall be used as the official election results.

SECTION 3. Section 49.107, Water Code, is amended by adding Subsection (i) to read as follows:

(i) Section 375.161, Local Government Code, does not apply to an impact fee, tax, or other requirement for payment for water, sewer, drainage, reclamation, flood control, road, or park and recreational services or improvements of a district that provides, or proposes to provide, those services or improvements.

SECTION 4. Section 49.108, Water Code, is amended by adding Subsections (g), (h), (i), and (j) to read as follows:

(g) Not later than the 10th day before the date an election is held to authorize a contract, a substantially final form of the contract must be filed in the office of the district and must be open to inspection by the public. The contract is not required to be attached as an exhibit to the order calling the election to authorize the contract.

(h) A single contract may contain multiple purposes or facilities authorized by one or more constitutional provisions. A contract described by this subsection may be submitted for approval in a single proposition at an election.

(i) A contract between districts for the provision of facilities or services is not required to specify the maximum amount of bonds or expenditures authorized under the contract if the contract provides that the service area cannot be enlarged without the consent of at least two-thirds of the districts that are included in the service area or served by the facilities or services provided for in the contract.

(j) A contract may generally describe the facilities to be acquired or financed by the district without reference to specific constitutional provisions.

SECTION 5. Section 49.151(c), Water Code, is amended to read as follows:

(c) The board may allow disbursements of district money to be transferred by federal reserve wire system or by electronic means. The board by resolution may allow the wire or electronic transfers to accounts in the name of the district or accounts not in the name of the district.

SECTION 6. Section 49.194, Water Code, is amended by amending Subsections (a) and (b) and adding Subsection (h) to read as follows:

(a) Except as provided by Subsection (h), after [After] the board has approved the audit, it shall submit a copy of the report to the executive director for filing within 135 days after the close of the district's fiscal year.

(b) Except as provided by Subsection (h), if [If] the board refuses to approve the annual audit report, the board shall submit a copy of the report to the executive director for filing within 135 days after the close of the district's fiscal year, accompanied by a statement from the board explaining the reasons for its failure to approve the report.

(h) A special water authority shall submit a copy of the report to the executive director for filing within 160 days after the close of the special water authority's fiscal year.

SECTION 7. Section 49.213, Water Code, is amended by adding Subsection (d) to read as follows:

(d) A written contract between a district and any person, including any public or private entity, for the provision of goods or services to the district is a contract subject to Subchapter I, Chapter 271, Local Government Code. The district and any person, including any public or private entity, waive sovereign immunity to suit for the purpose of adjudicating a claim for a breach of the contract, subject to the terms and conditions of Subchapter I, Chapter 271, Local Government Code.

SECTION 8. Section 49.216, Water Code, is amended by amending Subsection (e) and adding Subsection (f) to read as follows:

(e) Any peace officer who is directly employed by a district, before beginning to perform any duties and at the time of appointment, must take an oath and execute a bond conditioned on faithful performance of such officer's duties in the amount of $1,000 payable to the district. The oath and the bond shall be filed in the district office.

(f) A peace officer contracted for by the district, individually or through a county, sheriff, constable, or municipality, is an independent contractor, and the district is responsible for the acts or omissions of the peace officer only to the extent provided by law for other independent contractors.

SECTION 9. Section 49.273(d), Water Code, is amended to read as follows:

(d) For contracts over $50,000, the board shall advertise the letting of the contract, including the general conditions, time, and place of opening of sealed bids. The notice must [shall] be published in one or more newspapers circulated in each county in which part of the district is located. If one newspaper meets both of these requirements, publication in such newspaper is sufficient. If there are more than four counties in the district, notice may be published in any newspaper with general circulation in the district. The notice must [shall] be published once a week for two consecutive weeks before the date that the bids are opened, and the first publication must be not later than the 14th [21st] day before the date of the opening of the sealed bids.

SECTION 10. Section 49.351, Water Code, is amended by amending Subsections (a), (b), (c), (f), (i), and (l) and adding Subsection (m) to read as follows:

(a) A district providing potable water or sewer service to household users may establish, operate, and maintain, finance with ad valorem taxes, mandatory fees, or voluntary contributions, and issue bonds for a fire department to perform all fire-fighting services within the district as provided in this subchapter and may provide for [issue bonds or impose a mandatory fee, with voter approval, for financing a plan approved in accordance with this section, including] the construction and purchase of necessary buildings, facilities, land, and equipment and the provision of an adequate water supply.

(b) After complying with the requirements of this section [approval of the district electors of a plan to operate, jointly operate, or jointly fund the operation of a fire department, and after complying with Subsections (g), (h), and (i)], the district or districts shall provide an adequate system and water supply for fire-fighting purposes, may purchase necessary land, may construct and purchase necessary buildings, facilities, and equipment, and may employ or contract with a fire department to employ all necessary personnel including supervisory personnel to operate the fire department.

(c) Bonds shall be authorized and may be issued and ad valorem taxes shall be authorized and may be imposed for financing a plan approved in accordance with this section [shall be authorized and may be issued, and a district shall be authorized to levy a tax to pay the principal of and interest on such bonds,] as provided by law for authorization and issuance of other bonds and authorization and imposition of other ad valorem taxes of the district.

(f) Before a district imposes an ad valorem tax or issues bonds payable wholly or partly from ad valorem taxes to finance the establishment of [establishes] a fire department, a contract [contracts] to operate a joint fire department, or a contract [contracts] with another person to perform fire-fighting services within the district, the district must comply with the provisions of Subsections (g), (h), and (i). A district that funds fire-fighting services with revenue, including mandatory fees or voluntary contributions, is not required to comply with the provisions of Subsection (g), (h), or (i).

(i) After approval of a plan by the commission, the district shall submit to the electors of the district at the election to approve bonds payable wholly or partly from ad valorem taxes or to impose ad valorem taxes [to impose a mandatory fee] for financing the plan, [or if no bonds or fees are to be approved, at an election called for approval of the plan,] which may be held in conjunction with an election required by Section 49.102, the proposition of whether or not the plan should be implemented or entered into by the district. [The ballots at the election shall be printed, as applicable, to provide for voting for or against the proposition: "The implementation of the plan for (operation/joint operation) of a fire department"; or "The plan and contract to provide fire-fighting services for the district."]

(l) A [Notwithstanding the requirements of Subsections (a)-(j), a] district providing potable water or sewer service to household users may as part of its billing process collect from its customers a voluntary contribution on behalf of organizations providing fire-fighting services to the district. A district that chooses to collect a voluntary contribution under this subsection must give reasonable notice to its customers that the contribution is voluntary. Water and sewer service may not be terminated as a result of failure to pay the voluntary contribution.

(m) Notwithstanding Subsection (l), if a customer makes a partial payment of a district bill for water or sewer service and includes with the payment a voluntary contribution for fire-fighting services, the district shall apply the voluntary contribution first to the bill for water or sewer service, including any interest or penalties imposed. Any amount remaining shall be used for fire-fighting services.

SECTION 11. Section 49.4645(a), Water Code, is amended to read as follows:

(a) 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, Montgomery County, or Fort Bend County may 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. The outstanding principal amount of bonds, notes, and other obligations issued to finance parks and recreational facilities supported by ad valorem taxes [payable from any source] may not exceed 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. The district may not issue bonds supported by ad valorem taxes to pay for the development and maintenance of:

(1) indoor or outdoor swimming pools; or

(2) golf courses.

SECTION 12. Section 51.523, Water Code, is amended to read as follows:

Sec. 51.523. BALLOTS. The ballot for an election under this subchapter shall be printed to provide for voting for or against defining the area to be taxed or designating the property to be served, affected, and taxed and, if applicable, issuing bonds and imposing a tax to retire the bonds or imposing a maintenance tax not to exceed the rate, which must be specified in the ballot proposition, provided by the proposed plan of taxation. [substantially the proposition: "Designation of the area, issuance of bonds, and levy of a tax to retire the bonds."]

SECTION 13. Section 51.527, Water Code, is amended by adding Subsection (c) to read as follows:

(c) Unless a maintenance tax is imposed in the defined area or on the designated property, once bonds issued for the defined area or designated property are paid off or defeased, the board may declare the defined area dissolved or may repeal the designation of the designated property, at which time the board shall cease imposing taxes on the property located in the defined area or on the designated property.

SECTION 14. Section 54.236, Water Code, is amended to read as follows:

Sec. 54.236. STREET OR SECURITY LIGHTING. Subject to the provisions of this section, a district may purchase, install, operate, and maintain street lighting or security lighting within public utility easements or public rights-of-way or property owned by the district [within the boundaries of the district]. A district, other than a district exercising powers under Section 54.234 or Subchapter N, Chapter 49, may not issue bonds supported by ad valorem taxes to pay for the purchase, installation, and maintenance of street or security lighting.

SECTION 15. Section 54.739, Water Code, is amended to read as follows:

Sec. 54.739. SUBSTITUTING PROPERTY [LAND] OF EQUAL VALUE. After the district is organized and has obtained voter approval for the issuance of, or has sold, bonds payable wholly or partly from ad valorem taxes, property [acquires facilities with which to function for the purposes for which it was organized, and votes, issues and sells bonds for such purposes, land] within the district boundaries subject to taxation that does not need or utilize the services of the district may be excluded and other property [land] not within the boundaries of the district may be included within the boundaries of the district without impairment of the security for payment of [the] bonds or invalidation of any prior bond election, as provided by this section and Sections 54.740 through 54.747.

SECTION 16. Section 54.744, Water Code, is amended to read as follows:

Sec. 54.744. IMPAIRMENT OF SECURITY. (a) For purposes of the board's consideration of the applications, the lands proposed for inclusion shall be deemed to be sufficient to avoid an impairment of the security for payment of obligations of the district if:

(1) according to the most recent tax roll of the district or the most recently certified estimates of taxable value from the chief appraiser of the appropriate appraisal district, the taxable value of such included lands equals or exceeds the taxable value of the excluded lands;

(2) either the estimated costs of providing district facilities and services to such included lands is equal to or less than the estimated costs of providing district facilities and services to the excluded lands or any increased estimated costs of providing district facilities and services to the included land, as determined by the district's engineer, can be amortized at prevailing bond interest rates and maturity schedules and the prevailing debt service tax rate of the district, as determined by the district's professional financial advisor, when applied to the increase in taxable value of the included land over the taxable value of the excluded land; and

(3) with respect only to a district with [the district's] outstanding bonds or contract obligations [are] payable in whole or in part by a pledge of net revenues from the ownership or operation of the district's facilities, [and] the projected net revenues to be derived from the property [lands] to be included during the succeeding 12-month period, as determined by the district's engineer, equals or exceeds the projected net revenues that would otherwise have been derived from the property [lands] to be excluded during the same period.

(b) For purposes of this section, the taxable value of included property means the market value of the property if, before or contemporaneously with the inclusion of the property in the district, the owner of the property waives the right to special appraisal of the property as to the district as authorized by Section 23.20, Tax Code.

SECTION 17. Section 59.006(d), Water Code, is amended to read as follows:

(d) Sections 54.016(e), [(f),] (g), and (h) apply under this chapter.

SECTION 18. Section 388.005, Health and Safety Code, as amended by Chapters 262 (S.B. 12) and 939 (H.B. 3693), Acts of the 80th Legislature, Regular Session, 2007, is reenacted and amended to read as follows:

Sec. 388.005. ENERGY EFFICIENCY PROGRAMS IN INSTITUTIONS OF HIGHER EDUCATION[, STATE AGENCIES,] AND CERTAIN GOVERNMENTAL ENTITIES. (a) In this section:

(1) "Institution of higher education" includes an institution of higher education as defined by Section 61.003, Education Code, and a private institution of higher education that receives funding from the state.

(2) "Political subdivision" means:

(A) an affected county; or

(B) any political subdivision in a nonattainment area or in an affected county other than:

(i) a school district; or

(ii) a district as defined by Section 36.001 or 49.001, Water Code, that had a total annual electricity expense of less than $200,000 in the previous fiscal year of the district.

(3) "State agency" means a department, commission, board, office, council, or other agency in the executive branch of state government that is created by the constitution or a statute of this state and has authority not limited to a geographical portion of the state.

(b) Each political subdivision, institution of higher education, or state agency shall implement all energy efficiency measures that meet the standards established for a contract for energy conservation measures under Section 302.004(b), Local Government Code, in order to reduce electricity consumption by the existing facilities of the entity.

(c) Each political subdivision, institution of higher education, or state agency shall establish a goal to reduce the electric consumption by the entity by five percent each state fiscal year for six years, beginning September 1, 2007.

(d) A political subdivision, institution of higher education, or state agency that does not attain the goals under Subsection (c) must include in the report required by Subsection (e) justification that the entity has already implemented all available measures. An entity that submits a report under this subsection indicating it has already implemented all available measures is exempt from the annual reporting requirement of Subsection (e) if a subsequent report would indicate no change in status. An entity may be required to provide notice that it is exempt to the State Energy Conservation Office.

(e) A political subdivision, institution of higher education, or state agency annually shall report to the State Energy Conservation Office, on forms provided by that office, regarding the entity's efforts and progress under this section. The State Energy Conservation Office shall provide assistance and information to the entity to help the entity meet the goals set under this section.

(f) This section does not apply to a state agency or an institution of higher education that the State Energy Conservation Office determines that, before September 1, 2007, adopted a plan for conserving energy under which the agency or institution established a percentage goal for reducing the consumption of electricity. The exemption provided by this section applies only while the agency or institution has an energy conservation plan in effect and only if the agency or institution submits reports on the conservation plan each calendar quarter to the governor, the Legislative Budget Board, and the State Energy Conservation Office.

(g) This section does not apply to the electricity consumption of a district as defined by Section 36.001 or 49.001, Water Code, that relates to the operation and maintenance of wastewater collection and treatment, water supply and distribution, or stormwater diversion, detention, or pumping facilities or improvements.

SECTION 19. Section 43.0751(a)(1), Local Government Code, is amended to read as follows:

(1) "District" means a conservation and reclamation [water control and improvement] district [or a municipal utility district created or] operating under Chapter 49 [51 or 54], Water Code.

SECTION 20. Section 43.0751, Local Government Code, is amended by adding Subsection (r) to read as follows:

(r) To be annexed for limited purposes under this section, an area must be:

(1) in the municipality's extraterritorial jurisdiction; and

(2) contiguous to the corporate or limited purpose boundaries of the municipality, unless the district consents to noncontiguous annexation pursuant to a strategic partnership agreement with the municipality.

SECTION 21. Section 54.016(f), Water Code, is repealed.

SECTION 22. (a) The change in law made by Section 21 of this Act does not affect a lawsuit concerning an agreement if the lawsuit is filed before the effective date of this Act. A lawsuit filed before the effective date of this Act is governed by the law in effect on the date the lawsuit was filed, and the former law is continued in effect for that purpose.

(b) The legislature finds that an agreement between a municipality and a municipal utility district may not be construed as an "allocation agreement" unless the agreement between the municipality and the district:

(1) specifically uses the term "allocation agreement" in referring to the agreement; or

(2) references Section 54.016(f), Water Code, as being applicable to the agreement.

SECTION 23. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2009.

(b) Section 21 of this Act takes effect January 1, 2010.