By: Reynolds H.B. No. 1798
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to districts in certain municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 551, Local Government Code, WATER
  CONTROL BY MUNICIPALITIES, is amended by adding section 551.008 to
  read as follows:
         Sec. 551.008.  APPROVAL OF CERTAIN DISTRICT ACTIONS INSIDE
  A MUNICIPALITY BY CERTAIN MUNICIPALITIES
         A.  DEFINITIONS. In this Section:
         (1)  "Municipality" means a home rule municipality that has
  adopted a Charter pursuant to Article XI Section 5 of the Texas
  Constitution.
         (2)  "District" means a water control and improvement
  district formed under Article XVI, Section 59, of the Texas
  Constitution or in accordance with Water Code, Chapter 51.
         (3)  "Major Action" means any one or more of the following:
               (a)  calling an election for bonds or long-term debt;
               (b)  issuing bonds, refinancing, refunding or assuming
  long-term debt;
               (c)  annexing territory;
               (d)  increasing an ad valorem tax rate;
               (e)  reimbursing any commercial property owner for
  infrastructure or improvements;
               (f)  increasing water rates;
               (g)  increasing sewer rates;
               (h)  the sale or transfer of water rights; and
               (i)  contracts or agreements for the sale or lease of
  water that commit more than 10% of the District's available surface
  or ground water.
         B. APPLICABILITY.  This section applies to any District with
  50 percent or more of the District's geographic territory located
  within the boundaries of a Municipality where:
         (1)  the taxable value of the accounts located within the
  boundaries of the Municipality and its Extraterritorial
  Jurisdiction comprise, on average, 60 percent or more of the
  taxable value of the District over the previous 5 years; and
         (2)  the Municipality and the District are located within the
  boundaries of the same two adjacent counties one of which has a
  population of over 4 million persons.
         C.  MAJOR ACTION SUBJECT TO APPROVAL.
         A District shall not initiate, put into place or practice any
  Major Action without first obtaining a vote of the majority of the
  members of the governing body of the Municipality in favor of
  proceeding with the proposed Major Action.
         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, 2011.