87R3292 ANG-F
 
  By: Harris H.B. No. 1796
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the division of and assumption of road district
  authority by fresh water supply districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 53.029, Water Code, is amended to read as
  follows:
         Sec. 53.029.  [DIVISION OF OR] ASSUMPTION OF ROAD DISTRICT
  AUTHORITY [BY CERTAIN DISTRICTS]. (a) [This section applies to a
  district located in a county that:
               [(1)  has a population of 1.3 million or more and in
  which a municipality with a population of more than one million is
  primarily located; or
               [(2)  is adjacent to a county having the
  characteristics described by Subdivision (1).
         [(b)  A district covered by this section may be divided into
  two new districts if it has no outstanding bonded debt and is not
  levying ad valorem taxes. The division procedure is prescribed by
  Sections 53.030 to 53.041 of this code.
         [(c)]  The board of a district [covered by this section] may
  order an election to be held in the district to determine whether
  the district should assume the rights, authority, privileges, and
  functions of a road district under Article III, Section 52(b)(3),
  of the Texas Constitution. The election shall be ordered,
  conducted, and the results canvassed in the manner provided by the
  applicable provisions of this chapter and the Election Code. The
  ballots for the election shall be printed to provide for voting for
  or against: The assumption by the __________ Fresh Water Supply
  District of the rights, authority, privileges, and functions of a
  road district under Article III, Section 52(b)(3), of the Texas
  Constitution. If a majority of the persons voting in the election
  vote in favor of the proposition, the district shall assume the
  rights, authority, privileges, and functions of a road district
  operating under Article III, Section 52(b)(3), of the Texas
  Constitution, Chapter 257, Transportation Code, and other general
  laws of this state relating to road districts.
         (b) [(d)]  A district operating as a road district may not
  issue bonds or otherwise lend its credit for road district purposes
  except on approval of not less than two-thirds of the qualified
  voters of the district voting at an election called and held for
  that purpose. The total amount of bonds, notes, and other
  obligations of the district issued or incurred under this
  subsection may not exceed one-fourth of the assessed valuation of
  real property in the district.
         (c) [(e)]  A district that has adopted the rights,
  authority, privileges, and functions of a road district in the
  manner provided by Subsection (a) [(c)] may, following approval of
  a construction contract by the district's governing body, reimburse
  expenditures as provided by Sections 257.003(a) and (b),
  Transportation Code, without any additional approval under Section
  257.003, Transportation Code.
         SECTION 2.  Subchapter B, Chapter 53, Water Code, is amended
  by adding Section 53.0291 to read as follows:
         Sec. 53.0291.  DIVISION OF DISTRICT. A district may be
  divided into two new districts as provided by Sections 53.030
  through 53.041 if the district:
               (1)  has no outstanding bonded debt; and
               (2)  is not levying ad valorem taxes.
         SECTION 3.  This Act takes effect September 1, 2021.