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A BILL TO BE ENTITLED
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AN ACT
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relating to municipal management districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 375.003(3) and (4), Local Government |
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Code, are amended to read as follows: |
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(3) "Commission" means the Texas Commission on |
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Environmental Quality [Natural Resource Conservation Commission]. |
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(4) "Disadvantaged business" means: |
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(A) a corporation formed for the purpose of |
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making a profit and at least 51 percent of all classes of the shares |
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of stock or other equitable securities of which are owned by one or |
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more persons who are socially disadvantaged because of their |
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identification as members of certain groups that have suffered the |
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effects of discriminatory practices or similar insidious |
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circumstances over which they have no control, including black |
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Americans, Hispanic Americans, women, Asian Pacific Americans, and |
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American Indians; |
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(B) a sole proprietorship formed for the purpose |
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of making a profit that is owned, operated, and controlled |
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exclusively by one or more persons described by Paragraph (A); |
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(C) a partnership that is formed for the purpose |
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of making a profit, in which 51 percent of the assets and interest |
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in the partnership is owned by one or more persons described by |
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Paragraph (A), and in which minority or women partners have a |
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proportionate interest in the control, operation, and management of |
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the partnership affairs; |
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(D) a joint venture between minority and women's |
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group members formed for the purpose of making a profit and the |
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minority participation in which is based on the sharing of real |
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economic interest, including equally proportionate control over |
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management, interest in capital, and interest earnings, other than |
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a joint venture in which majority group members own or control debt |
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securities, leasehold interest, management contracts, or other |
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interests; [or] |
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(E) a supplier contract between persons |
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described in Paragraph (A) and a prime contractor in which the |
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disadvantaged business is directly involved for the manufacture or |
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distribution of the supplies or materials or otherwise for |
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warehousing and shipping the supplies; or |
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(F) a person certified as a disadvantaged |
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business by: |
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(i) this state; |
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(ii) a political subdivision of this state; |
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or |
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(iii) a regional planning commission, |
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council of governments, or similar regional planning agency created |
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under Chapter 391. |
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SECTION 2. Section 375.022(c), Local Government Code, is |
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amended to read as follows: |
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(c) The petition must: |
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(1) describe the boundaries of the proposed district: |
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(A) by metes and bounds; |
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(B) by verifiable landmarks, including a road, |
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creek, or railroad line; or |
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(C)[,] if there is a recorded map or plat and |
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survey of the area, by lot and block number; |
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(2) state the specific purposes for which the district |
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will be created; |
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(3) state the general nature of the work, projects, or |
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services proposed to be provided, the necessity for those services, |
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and the costs as estimated by the persons filing the petition; |
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(4) include a name of the district, which must be |
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generally descriptive of the location of the district, followed by |
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"Management District" or "Improvement District"; |
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(5) include a proposed list of initial directors that |
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includes the directors' experience and initial term of service; and |
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(6) include a resolution of the governing body of the |
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municipality in support of the creation of the district. |
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SECTION 3. Section 375.023, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.023. NOTICE AND [COMMISSION] HEARING ON DISTRICT |
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CREATION[; CONTENTS OF NOTICE]. If a petition is filed under |
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Section 375.022, the commission shall give notice of an application |
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as required by Section 49.011, Water Code, and may conduct a hearing |
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on the application if the commission determines that a hearing is |
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necessary under Section 49.011, Water Code. [The commission or a
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person authorized by the commission shall set a date, time, and
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place for a hearing to consider each petition received. The
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commission or authorized person shall issue a notice of the date,
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time, and place of hearing. The notice must state that each person
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has a right to appear and present evidence and testify for or
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against the allegations in the petition, the form of the petition,
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the necessity and feasibility of the district's project, and the
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benefits to accrue.] |
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SECTION 4. Section 375.025, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.025. HEARING; GRANTING OR REFUSING PETITION. (a) |
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If the commission determines that [At] a hearing is necessary under |
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Section 49.011, Water Code, the commission shall conduct a hearing |
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and accept evidence on [set under Section 375.023, the commission
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shall examine the petition to determine its sufficiency. Any
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interested person may appear before the commission in person or by
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attorney and offer testimony on] the sufficiency of the petition |
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and whether the district is feasible, practicable, and necessary |
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and would be a benefit to all or any part of the land proposed to be |
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included in the district. The commission may adjourn the hearing |
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from day to day. |
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(b) The commission has jurisdiction to determine each issue |
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relating to the sufficiency of the petition and to the creation of |
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the district and may issue necessary incidental orders in relation |
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to the issues before the commission. [The commission may adjourn
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the hearing from day to day.] |
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(c) If [after the hearing] the commission finds, with or |
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without a hearing, that the petition conforms to the requirements |
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of Section 375.022(c) and that the district is feasible, |
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practicable, and necessary and would benefit the public, the |
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commission by order shall make that finding and grant the petition. |
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(d) In determining if the project is feasible, practicable, |
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and necessary and would benefit the public, the commission shall |
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consider: |
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(1) the availability of comparable services from other |
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systems, including special districts, municipalities, and regional |
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authorities; and |
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(2) the reasonableness of the proposed public purpose |
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projects and services. |
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SECTION 5. Section 375.043, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.043. ANNEXATION. A district may annex land as |
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provided by Chapters 49 and [Chapter] 54, Water Code, subject to the |
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approval of the governing body of the municipality. |
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SECTION 6. Section 375.044(b), Local Government Code, is |
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amended to read as follows: |
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(b) The board shall call a hearing on the exclusion of land |
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or other property from the district if a signed petition evidencing |
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the consent of the owners of a majority of the acreage in the |
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district, according to the most recent certified tax roll of the |
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county, is filed [landowner or property owner in the district
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files] with the secretary of the board [a written petition] |
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requesting the hearing before the issuance of bonds. |
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SECTION 7. Section 375.061, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.061. NUMBER OF DIRECTORS; TERMS. A district is |
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governed by a board of at least five [nine] but not more than 30 |
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directors who serve staggered four-year terms. |
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SECTION 8. Section 375.071, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.071. QUORUM. One-half of the serving directors |
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constitutes a quorum, and a concurrence of a majority of a quorum of |
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directors is required for any official action of the district. The |
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written consent of at least two-thirds of the directors is required |
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to authorize the levy of assessments, the levy of taxes, the |
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imposition of impact fees, or the issuance of bonds. |
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SECTION 9. Section 375.091, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.091. GENERAL POWERS OF DISTRICT. [(a)] A district |
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has the rights, powers, privileges, authority, and functions |
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conferred by the general law of this state applicable to |
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conservation and reclamation districts created under Article XVI, |
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Section 59, of the Texas Constitution, including those conferred by |
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Chapter 54, Water Code. |
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[(b)
The district may contract and manage its affairs and
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funds for any corporate purpose in accordance with Chapter 54,
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Water Code.
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[(c)
The district has all the rights, powers, privileges,
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authority, and functions of road districts and road utility
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districts created pursuant to Article III, Section 52, of the Texas
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Constitution, including the power to levy ad valorem taxes for the
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construction, maintenance, and operation of macadamized, graveled,
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or paved roads and turnpikes, or in aid thereof. This power
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includes the power to levy ad valorem taxes to provide for mass
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transit systems in the manner and subject to the limitations
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provided in Article III, Section 52, and Article III, Section
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52(a), of the Texas Constitution.
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[(d)
A district has those powers conferred by Chapters 365
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and 441, Transportation Code, and the additional rights,
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privileges, authority, and functions contained in those chapters.] |
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SECTION 10. Subchapter E, Chapter 375, Local Government |
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Code, is amended by adding Sections 375.0921 and 375.0922 to read as |
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follows: |
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Sec. 375.0921. AUTHORITY FOR ROAD PROJECTS. (a) Under |
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Section 52, Article III, Texas Constitution, a district may design, |
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acquire, construct, finance, issue bonds for, improve, operate, |
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maintain, and convey to this state, a county, or a municipality for |
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operation and maintenance macadamized, graveled, or paved roads, or |
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improvements, including storm drainage, in aid of those roads. |
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(b) The district may impose ad valorem taxes to provide for |
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mass transit systems in the manner and subject to the limitations |
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provided by Section 52, Article III, and Section 52-a, Article III, |
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Texas Constitution. |
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Sec. 375.0922. ROAD STANDARDS AND REQUIREMENTS. (a) A road |
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project must meet all applicable construction standards, zoning and |
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subdivision requirements, and regulations of each municipality in |
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whose corporate limits or extraterritorial jurisdiction the road |
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project is located. |
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(b) If a road project is not located in the corporate limits |
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or extraterritorial jurisdiction of a municipality, the road |
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project must meet all applicable construction standards, |
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subdivision requirements, and regulations of each county in which |
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the road project is located. |
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(c) If the state will maintain and operate the road, the |
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Texas Transportation Commission must approve the plans and |
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specifications of the road project. |
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SECTION 11. Section 375.097(a), Local Government Code, is |
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amended to read as follows: |
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(a) The board may appoint a hearings examiner to conduct any |
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hearing called by the board, including a hearing required by |
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Chapter 395. The hearings examiner may be an employee or contractor |
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of the district, or a member of the district's board. |
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SECTION 12. Subchapter E, Chapter 375, Local Government |
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Code, is amended by adding Section 375.098 to read as follows: |
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Sec. 375.098. DISTRICT ACT OR PROCEEDING PRESUMED VALID. |
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(a) A governmental act or proceeding of a district is conclusively |
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presumed, as of the date it occurred, valid and to have occurred in |
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accordance with all applicable statutes and rules if: |
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(1) the third anniversary of the effective date of the |
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act or proceeding has expired; and |
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(2) a lawsuit to annul or invalidate the act or |
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proceeding has not been filed on or before that third anniversary. |
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(b) This section does not apply to: |
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(1) an act or proceeding that was void at the time it |
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occurred; |
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(2) an act or proceeding that, under a statute of this |
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state or the United States, was a misdemeanor or felony at the time |
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the act or proceeding occurred; |
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(3) a rule that, at the time it was passed, was |
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preempted by a statute of this state or the United States, including |
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Section 1.06 or 109.57, Alcoholic Beverage Code; or |
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(4) a matter that on the effective date of this |
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section: |
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(A) is involved in litigation if the litigation |
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ultimately results in the matter being held invalid by a final |
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judgment of a court; or |
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(B) has been held invalid by a final judgment of a |
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court. |
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SECTION 13. Section 375.114, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.114. PETITION REQUIRED. The board may not finance |
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services and improvement projects under this chapter unless a |
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written petition has been filed with the board requesting those |
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improvements or services signed by: |
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(1) the owners of 50 percent or more of the assessed |
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value of the property in the district subject to assessment, |
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according to [as determined from] the most recent certified county |
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property tax rolls; or |
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(2) the owners of 50 percent or more of the surface |
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area of the district, excluding roads, streets, highways, and |
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utility rights-of-way, other public areas, and any other property |
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exempt from assessment under Section 375.162 or 375.163, according |
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to [as determined from] the most recent certified county property |
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tax rolls. |
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SECTION 14. Section 375.202(e), Local Government Code, is |
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amended to read as follows: |
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(e) If provided by the bond order or resolution, the |
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proceeds from the sale of bonds may be used to pay interest on the |
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bonds during and after the period of the acquisition or |
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construction of any improvement project to be provided through the |
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issuance of the bonds, to pay administrative and operation expenses |
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to create a reserve fund for the payment of the principal of and |
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interest on the bonds, to pay costs associated with the issuance of |
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the bonds, and to create any other funds. The proceeds of the bonds |
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may be placed on time deposit or invested, until needed, in |
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securities in the manner provided by the bond order or resolution. |
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SECTION 15. Section 375.205(a), Local Government Code, is |
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amended to read as follows: |
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(a) The district shall submit bonds and the appropriate |
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proceedings authorizing their issuance to the attorney general for |
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examination. This subsection applies only to bonds that are public |
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securities, as that term is defined by Section 1202.001, Government |
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Code. |
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SECTION 16. Subchapter J, Chapter 375, Local Government |
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Code, is amended by adding Section 375.209 to read as follows: |
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Sec. 375.209. TAXES FOR BONDS. At the time the district |
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issues bonds payable wholly or partly from ad valorem taxes, the |
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board shall provide for the annual imposition of a continuing |
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direct annual ad valorem tax, without limit as to rate or amount, |
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while all or part of the bonds are outstanding as required and in |
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the manner provided by Sections 54.601 and 54.602, Water Code. |
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SECTION 17. Section 375.221, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.221. APPLICABILITY OF WATER DISTRICTS LAW TO |
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COMPETITIVE BIDDING ON CERTAIN [PUBLIC WORKS] CONTRACTS. (a) |
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Except as provided by Subsection (b) of this section, Subchapter I, |
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Chapter 49, Water Code, applies to a district contract for |
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construction work, equipment, materials, or machinery. |
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(b) [A contract, other than a contract for services, for
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more than $50,000 for the construction of improvements or the
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purchase of material, machinery, equipment, supplies, and other
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property, except real property, may be entered into only after
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competitive bids.
Notice of the contract for the purpose of
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soliciting bids shall be published once a week for two consecutive
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weeks in a newspaper with general circulation in the area in which
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the district is located.
The first publication of notice must be
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not later than the 14th day before the date set for receiving bids.] |
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The board may adopt rules governing receipt of bids and the award of |
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the contract and providing for the waiver of the competitive bid |
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requirement if: |
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(1) there is an emergency; |
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(2) the needed materials are available from only one |
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source; |
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(3) in a procurement requiring design by the supplier |
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competitive bidding would not be appropriate and competitive |
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negotiation, with proposals solicited from an adequate number of |
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qualified sources, would permit reasonable competition consistent |
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with the nature and requirements of the procurement; or |
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(4) after solicitation, it is ascertained that there |
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will be only one bidder. |
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[(b)
If a proposed contract for works, plant improvements,
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facilities other than land, or the purchase of equipment,
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appliances, materials, or supplies is for an estimated amount of
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more than $50,000 or for a duration of more than two years,
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competitive sealed proposals shall be asked from at least three
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persons.] |
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SECTION 18. Section 375.263(a), Local Government Code, is |
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amended to read as follows: |
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(a) The [Except as limited by Section 375.264, the] |
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governing body of a municipality in which a district is wholly |
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located, by a vote of not less than two-thirds of its membership, |
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may adopt an ordinance dissolving the district. |
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SECTION 19. Section 375.264, Local Government Code, is |
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amended to read as follows: |
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Sec. 375.264. LIMITATION ON DISSOLUTION BY BOARD. A |
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district may not be dissolved by its board [or by a municipality] if |
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the district has any outstanding bonded indebtedness until that |
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bonded indebtedness has been repaid or defeased in accordance with |
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the order or resolution authorizing the issuance of the bonds. |
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SECTION 20. Subchapter N, Chapter 375, Local Government |
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Code, is amended by adding Section 375.282 to read as follows: |
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Sec. 375.282. STRATEGIC PARTNERSHIP AGREEMENT. A district |
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with territory in the extraterritorial jurisdiction of a |
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municipality may negotiate and enter into a written strategic |
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partnership with the municipality under Section 43.0751. |
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SECTION 21. Sections 375.021, 375.024, 375.027, and |
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375.064(f), Local Government Code, are repealed. |
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SECTION 22. The change in law made by this Act to Section |
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375.221, Local Government Code, applies only to a contract awarded |
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on or after January 1, 2012. A contract awarded before January 1, |
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2012, is governed by the law in effect on the date the contract was |
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awarded, and that law is continued in effect for that purpose. |
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SECTION 23. This Act takes effect September 1, 2011. |