By: Creighton S.B. No. 2506
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the powers and authorities of municipal utility
  districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 54.234(a), Water Code, is amended to
  read as follows:
         (a)  Any district or any petitioner seeking the creation of a
  district may petition the commission to acquire the power under the
  authority of Article III, Section 52, Texas Constitution, to
  design, acquire, construct, finance, issue bonds for, operate,
  maintain, and convey to this state, a county, or a municipality for
  operation and maintenance, a road [described by Subsection (b)] or
  any improvement in aid of the road.
         SECTION 2.  Section 54.801(a), Water Code, is amended to
  read as follows:
         (a)  A district that is composed of at least 1,000 [1,500]
  acres may define areas or designate certain property of the
  district to pay for improvements, facilities, or services that
  primarily benefit that area or property and do not generally and
  directly benefit the district as a whole.
         SECTION 3.  Section 54.802(b), Water Code, is amended to
  read as follows:
         (b)  The board shall file an engineer's report [adopt a
  proposed plan] for improvements in the defined area or to serve the
  designated property [in the manner provided by Section 49.106].
         SECTION 4.  Section 54.805, Water Code, is amended to read as
  follows:
         Sec. 54.805.  OBTAINING FUNDS TO CONSTRUCT, ADMINISTER,
  MAINTAIN, AND OPERATE IMPROVEMENTS AND FACILITIES IN DEFINED AREAS
  OR DESIGNATED PROPERTY.  On adoption of the proposed plan [plans] as
  provided by this subchapter [Section 54.804 of this code] and voter
  approval of taxes and bonds [the plans], the district, under the
  limitations of this subchapter, may apply separately, differently,
  equitably, and specifically its taxing power and lien authority to
  the defined area or designated property to provide money to
  construct, administer, maintain, and operate improvements and
  facilities that primarily benefit the defined area or designated
  property.
         SECTION 5.  Section 54.806(a), Water Code, is amended to
  read as follows:
         (a)  Before bonds may be issued or taxes may be levied for the
  defined area or designated property [the adopted plans may become
  effective], they must be approved by the voters in the defined area
  or within the boundaries of the designated property.  The election
  shall be conducted as provided by Section 49.106 for an election to
  authorize the issuance of bonds or Section 49.107 for an election to
  authorize an operation and maintenance tax.
         SECTION 6.  Section 54.809, Water Code, is amended to read as
  follows:
         Sec. 54.809.  ISSUANCE OF BONDS AND LEVY OF TAX FOR DEFINED
  AREA OR DESIGNATED PROPERTY.  After approval by the voters [the
  order is recorded], the district may issue its bonds and levy taxes 
  to provide the specific plant, works, and facilities included in
  the engineer's report [plans adopted] for the defined area, or to
  serve the designated property [and shall provide the plant, works,
  and facilities].
         SECTION 7.  Section 54.812(b), Water Code, is amended to
  read as follows:
         (b)  The prescribed notice shall be inserted into the general
  notice after the first sentence and shall read substantially as
  follows:  "The real property described below, which you are about to
  purchase, may [is] also be located within a defined [designated]
  area of the district and your land may [will] be subject to defined
  area taxes in addition to the [a higher tax than] other taxes of 
  [land within] the district.  As of this date, the additional [Your]
  rate of taxes within the defined area is [will be higher by] $_____
  on each $100 of assessed valuation [than land not within the
  designated area]."
         SECTION 8.  Sections 54.234(b), 54.803, 54.804(a), 54.807,
  and 54.808, Water Code, are repealed.
         SECTION 9.  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, 2019.