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:  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:  "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.