Bill Text: TX HB725 | 2011-2012 | 82nd Legislature | Engrossed

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Bill Title: Relating to the operation, powers, and duties of certain water districts.

Sponsorship: Partisan Bill (Republican 2)

Status: (Engrossed - Dead) 2011-05-29 - Senate adopts conf. comm. report-reported [HB725 Detail]

Download: Texas-2011-HB725-Engrossed.html

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82R15755 SGA-D
By: Callegari H.B. No. 725

A BILL TO BE ENTITLED
AN ACT
relating to the operation, powers, and duties of certain water
districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 388.005, Health and Safety Code, is
amended by adding Subsections (g) and (h) to read as follows:
(g) Except as provided by Subsection (h), this section does
not apply to the electricity consumption of a district as defined by
Section 36.001 or 49.001, Water Code, that relates to the operation
and maintenance of facilities or improvements for:
(1) wastewater collection and treatment;
(2) water supply and distribution; or
(3) storm water diversion, detention, or pumping.
(h) At least once every five years, a political subdivision
that is a district as defined by Section 36.001 or 49.001, Water
Code, shall for district facilities described by Subsection (g):
(1) evaluate the consumption of electricity;
(2) establish goals to reduce the consumption of
electricity; and
(3) identify and implement cost-effective energy
efficiency measures to reduce the consumption of electricity.
SECTION 2. Section 43.0751(a)(1), Local Government Code, is
amended to read as follows:
(1) "District" means a conservation and reclamation
[water control and improvement] district [or a municipal utility
district created or] operating under Chapter 49 [51 or 54], Water
Code. The term does not include a special utility district
operating under Chapter 65, Water Code, or a groundwater
conservation district operating under Chapter 36, Water Code.
SECTION 3. Section 43.0751, Local Government Code, is
amended by adding Subsection (r) to read as follows:
(r) To be annexed for limited purposes under this section,
an area must be:
(1) in the municipality's extraterritorial
jurisdiction; and
(2) contiguous to the corporate or limited purpose
boundaries of the municipality, unless the district consents to
noncontiguous annexation pursuant to a strategic partnership
agreement with the municipality.
SECTION 4. Section 375.161, Local Government Code, is
amended to read as follows:
Sec. 375.161. CERTAIN RESIDENTIAL PROPERTY EXEMPT. (a)
The board may not impose an impact fee, assessment, tax, or other
requirement for payment, construction, alteration, or dedication
under this chapter on single-family detached residential property,
duplexes, triplexes, and quadraplexes.
(b) This section does not apply to an impact fee,
assessment, tax, or other requirement for payment for water, sewer,
drainage, reclamation, flood control, road, or park and
recreational services or improvements of a district operating under
this chapter that provides, or proposes to provide, those services
or improvements.
SECTION 5. Section 552.014, Local Government Code, is
amended to read as follows:
Sec. 552.014. CONTRACTS WITH WATER DISTRICTS OR NONPROFIT
CORPORATIONS. (a) In this section:
(1) "Project" means a water supply or treatment
system, a water distribution system, a sanitary sewage collection
or treatment system, works or improvements necessary for drainage
of land, recreational facilities, roads and improvements in aid of
roads, or facilities to provide firefighting services.
(2) "Water district" [, "water district"] means a
district created under Article XVI, Section 59, of the Texas
Constitution.
(b) A municipality may enter into a contract with a water
district or with a corporation organized to be operated without
profit under which the district or corporation will acquire for the
benefit of and convey to the municipality, either separately or
together, one or more projects [a water supply or treatment system,
a water distribution system, a sanitary sewage collection or
treatment system, or works or improvements necessary for drainage
of land in the municipality]. In connection with the acquisition,
the district or corporation shall improve, enlarge, or extend the
existing municipal facilities as provided by the contract.
(c) If the contract provides that the municipality assumes
ownership of the project [water, sewer, or drainage system] on
completion of construction or at the time that all debt incurred by
the district or corporation in the acquisition, construction,
improvement, or extension of the project [system] is paid in full,
the municipality may make payments to the district or corporation
for project [water, sewer, or drainage] services to part or all of
the residents of the municipality. The contract may provide for
purchase of the project [system] by the municipality through
periodic payments to the district or corporation in amounts that,
together with the net income of the district or corporation, are
sufficient to pay the principal of and interest on the bonds of the
district or corporation as they become due. The contract may
provide:
(1) that any payments due under this section are
payable from and are secured by a pledge of a specified part of the
revenues of the municipality, including revenues from municipal
sales and use taxes [municipal water system, sewer system, or
drainage system];
(2) for the levying of a tax to make payments due under
this section; or
(3) that the payments due under this section be made
from a combination of revenues [from the system] and taxes.
(d) The contract may provide that the district or
corporation may use the streets, alleys, and other public ways and
places of the municipality for project [water, sewer, or drainage]
purposes for a period that ends at the time the indebtedness of the
district or corporation is paid in full and the municipality
acquires title to the project [system] in accordance with this
section.
(e) The contract may provide for the operation of the
project [system] by the municipality, and, if so authorized, the
municipality may operate the project [system].
(f) A contract under this section must be authorized by a
majority vote of the governing body of the municipality.
(g) This section does not authorize a water district or
corporation described by Subsection (b) to participate in a project
that the water district or corporation is not authorized to
participate in under other law.
SECTION 6. Section 49.059, Water Code, is amended to read as
follows:
Sec. 49.059. [DISQUALIFICATION OF] TAX ASSESSOR AND
COLLECTOR. (a) The district may employ or contract with any person
to serve as its tax assessor and collector who is:
(1) an individual certified as a registered Texas
assessor-collector; or
(2) a firm, organization, association, partnership,
corporation, or other legal entity if an individual certified as a
registered Texas assessor-collector owns an interest in or is
employed by the firm, organization, association, partnership,
corporation, or other legal entity.
(b) A tax assessor and collector employed or contracted for
under this section is not required to be a natural person.
(c) A firm, organization, association, partnership,
corporation, or other legal entity serving as district tax assessor
and collector shall give a bond as required by Section 49.057 for a
natural person.
(d) No person may serve as tax assessor and collector of a
district providing potable water or sewer utility services to
household users if that person:
(1) is a natural person related within the third
degree of affinity or consanguinity to any developer of property in
the district, a member of the board, or the manager, engineer, or
attorney for the district;
(2) is or was within two years immediately preceding
the assumption of assessment and collection duties with the
district an employee of any developer of property in the district or
any director, manager, engineer, or attorney for the district;
(3) owns an interest in or is employed by any
corporation organized for the purpose of tax assessment and
collection services, a substantial portion of the stock of which is
owned by a developer of property within the district or any
director, manager, engineer, or attorney for the district; or
(4) is directly or through a corporation developing
land in the district or is a director, engineer, or attorney for the
district.
(e) [(b)] Within 60 days after the board determines a
relationship or employment exists which constitutes a
disqualification under Subsection (d) [(a)], it shall replace the
person serving as tax assessor and collector with a person who would
not be disqualified.
(f) [(c)] Any person who wilfully violates the provisions
of Subsection (d) [(a)] is guilty of a misdemeanor and on conviction
shall be fined not less than $100 nor more than $1,000.
(g) [(d)] As used in this section, "developer of property in
the district" has the same meaning as in Section 49.052(d).
SECTION 7. Section 49.063, Water Code, is amended to read as
follows:
Sec. 49.063. NOTICE OF MEETINGS. (a) Notice of meetings of
the board shall be given as set forth in the open meetings law,
Chapter 551, Government Code, except that if a district does not
have a meeting place within the district, the district shall post
notice of its meeting at a public place within the district
specified by the board in a written resolution, rather than at its
administrative office. The board shall specify such public place
to be a bulletin board or other place within the district which is
reasonably available to the public.
(b) The validity of an action taken at a board meeting is not
affected by:
(1) [Neither] failure to provide notice of the meeting
if the meeting is a regular meeting;
(2) [nor] an insubstantial defect in notice of the
[any] meeting; or
(3) failure of a county clerk to timely or properly
post or maintain public access to a notice of the meeting if notice
of the meeting is furnished to the county clerk in sufficient time
for posting under Section 551.043(a) or 551.045, Government Code
[shall affect the validity of any action taken at the meeting].
SECTION 8. Sections 49.102(a), (b), (c), and (h), Water
Code, are amended to read as follows:
(a) Before issuing any bonds or other obligations, an
election shall be held within the boundaries of the proposed
district on a uniform election date provided by Section 41.001,
Election Code, to determine if the proposed district shall be
established and, if the directors of the district are required by
law to be elected, to elect permanent directors.
(b) Notice of a confirmation or director election shall
state the day and place or places for holding the election, the
propositions to be voted on, and, if applicable, the number of
directors to be voted on.
(c) The ballots for a confirmation election shall be printed
to provide for voting "For District" and "Against District."
Ballots for a directors election shall provide the names of the
persons appointed by the governing body who qualified and are
serving as temporary directors at the time the election is called.
If the district has received an application by a write-in
candidate, the [The] ballots shall also have blank places after the
names of the temporary directors in which a voter may write the
names of any candidates appearing on the list of write-in
candidates required by Section 146.031, Election Code [other
persons for directors].
(h) Unless otherwise agreed, the elected directors shall
decide the initial terms of office by lot, with a simple majority of
the elected directors serving until the second succeeding directors
election and the remaining elected directors serving until the next
directors election.
SECTION 9. Sections 49.103(a) and (b), Water Code, are
amended to read as follows:
(a) Except as provided by Section 49.102, the members of the
board of a district shall serve staggered [for] four-year terms.
(b) After confirmation of a district, an [An] election shall
be held on the uniform election date, provided by Section 41.001,
[established by the] Election Code, in May of each even-numbered
year to elect the appropriate number of directors.
SECTION 10. Subchapter D, Chapter 49, Water Code, is
amended by adding Section 49.1045 to read as follows:
Sec. 49.1045. CERTIFICATION OF ELECTION RESULTS IN LESS
POPULOUS DISTRICTS. (a) This section applies only to a district
that:
(1) has 10 or fewer registered voters; and
(2) holds an election jointly with a county in which
the district is wholly or partly located.
(b) A district may provide for an inquiry into and
certification of the voting results of an election under this
section if:
(1) the election results indicate that the number of
votes cast in the election was greater than the number of registered
voters in the district;
(2) the board determines that the election results are
likely to be disputed in court; and
(3) the board can determine from the official list of
registered voters prepared by the county voter registrar or county
elections administrator for the district election which voters were
qualified to vote in the district election and can determine from
the signature roster from the joint election who voted in the joint
election.
(c) To certify the district votes, the board by rule shall
adopt a procedure to determine for each person who signed the
signature roster as a voter in the joint election:
(1) whether the person's address on the day of the
election was in the district; and
(2) how the person voted in the district election.
(d) The certified votes are the official election results.
(e) Certification of the results under this section does not
preclude the filing of an election contest.
SECTION 11. Sections 49.105(c) and (d), Water Code, are
amended to read as follows:
(c) If the number of directors is reduced to fewer than a
majority or if a vacancy continues beyond the 90th day after the
date the vacancy occurs, the vacancy or vacancies may [shall] be
filled by appointment by the commission if the district is required
by Section 49.181 to obtain commission approval of its bonds or by
the county commissioners court if the district was created by the
county commissioners court, regardless of whether a petition has
been presented to the board under Subsection (b). An appointed
director shall serve for the unexpired term of the director he or
she is replacing.
(d) In the event of a failure to elect one or more members of
the board of a district resulting from the absence of, or failure to
vote by, the qualified voters in an election held by the district,
the current members of the board or temporary board holding the
positions not filled at such election shall be deemed to have been
elected [reelected] and shall serve an additional term of office,
or, in the case of a temporary board member deemed elected under
this subsection, the initial term of office.
SECTION 12. Section 49.108, Water Code, is amended by
adding Subsections (g), (h), and (i) to read as follows:
(g) On or before the first day for early voting by personal
appearance at an election held to authorize a contract, a
substantially final form of the contract must be filed in the office
of the district and must be open to inspection by the public. The
contract is not required to be attached as an exhibit to the order
calling the election to authorize the contract.
(h) A single contract may contain multiple purposes or
provisions for multiple facilities authorized by one or more
constitutional provisions. The contract may generally describe the
facilities to be acquired or financed by the district without
reference to specific constitutional provisions. A contract
described by this subsection may be submitted for approval in a
single proposition at an election.
(i) A contract between districts to provide facilities or
services is not required to specify the maximum amount of bonds or
expenditures authorized under the contract if:
(1) the contract provides that the service area cannot
be enlarged without the consent of at least two-thirds of the boards
of directors of the districts that are:
(A) included in the service area as proposed to
be enlarged; or
(B) served by the facilities or services provided
in the contract;
(2) the contract provides that bonds or expenditures,
payable wholly or partly from contract taxes, are issued or made:
(A) on an emergency basis; or
(B) to purchase, construct, acquire, own,
operate, repair, improve, or extend services or facilities
necessary to comply with changes in applicable regulatory
requirements; or
(3) the contract provides that the bonds or
expenditures require prior approval by any district that is
obligated to pay debt service on those bonds or to pay for those
expenditures wholly or partly with contract taxes.
SECTION 13. Subchapter D, Chapter 49, Water Code, is
amended by adding Sections 49.109, 49.110, 49.111, 49.112, and
49.113 to read as follows:
Sec. 49.109. AGENT DURING ELECTION PERIOD. The board may
appoint a person, including a district officer, employee, or
consultant, to serve as the district's agent under Section 31.123,
Election Code.
Sec. 49.110. ELECTION JUDGE. (a) The notice requirements
for the appointment of a presiding election judge under Section
32.009, Election Code, do not apply to an election held by a
district.
(b) To serve as an election judge in an election held by a
district, a person must be a registered voter of the county in which
the district is wholly or partly located. To the extent of any
conflict with Section 32.051, Election Code, this section controls.
Sec. 49.111. EXEMPTIONS FROM USE OF ACCESSIBLE VOTING
SYSTEMS. (a) Notwithstanding Sections 61.012 and 61.013, Election
Code, a district is exempt from the acquisition, lease, or use of an
electronic voting system for an election if:
(1) the election is a confirmation election or an
election held jointly with a confirmation election on the same date
and in conjunction with the confirmation election, except for an
election in which a federal office appears on the ballot;
(2) the most recently scheduled district directors'
election was not held, as provided by Section 2.053(b), Election
Code; or
(3) fewer than 250 voters voted at the most recently
held district directors' election.
(b) A district eligible for the exemption under Subsection
(a) must publish notice in a newspaper of general circulation in an
area that includes the district or mail notice to each voter in the
district regarding the district's intention to hold an election
without providing a voting station that meets the requirements for
accessibility under 42 U.S.C. Section 15481(a)(3) on election day
and during the period for early voting by personal appearance. The
notice must be published or mailed not later than the later of:
(1) the 75th day before the date of the election; or
(2) the date on which the district adopts the order
calling the election.
(c) The notice required by Subsection (b) must:
(1) provide that any voter in the district may request
the use of a voting station that meets the accessibility
requirements for voting by a person with a disability; and
(2) provide information on how to submit such a
request.
(d) The district shall comply with a request for an
accessible voting station if the request is received not later than
the 45th day before the date of the election.
Sec. 49.112. CANCELLATION OF ELECTION; REMOVAL OF BALLOT
MEASURE. Before the first day of early voting by personal
appearance, the board by order or resolution may cancel an election
called at the discretion of the district or may remove from the
ballot a measure included at the discretion of the district. A copy
of the order or resolution must be posted during the period for
early voting by personal appearance and on election day at each
polling place that is used or that would have been used in the
election.
Sec. 49.113. NOTICE FOR FILING FOR PLACE ON BALLOT. A
notice required by Section 141.040, Election Code, must be posted
at the district's administrative office in the district or at the
public place established by the district under Section 49.063 of
this chapter not later than the 30th day before the deadline for a
candidate to file an application for a place on the ballot of a
district directors' election.
SECTION 14. Section 49.151(c), Water Code, is amended to
read as follows:
(c) The board may allow disbursements of district money to
be transferred by federal reserve wire system or by electronic
means. The board by resolution may allow the wire or electronic
transfers to accounts in the name of the district or accounts not in
the name of the district.
SECTION 15. Sections 49.154(a) and (c), Water Code, are
amended to read as follows:
(a) The board may declare an emergency in the matter of
funds not being available to pay principal of and interest on any
bonds of the district payable in whole or in part from taxes or to
meet any other needs of the district and may issue [negotiable] tax
anticipation notes or [negotiable] bond anticipation notes to
borrow the money needed by the district without advertising or
giving notice of the sale. A district's bond anticipation notes or
tax anticipation notes are negotiable instruments within the
meaning and purposes of the Business & Commerce Code
notwithstanding any provision to the contrary in that code. Bond
anticipation notes and tax anticipation notes shall mature within
one year of their date.
(c) Bond anticipation notes may be issued for any purpose
for which bonds of the district may be issued [have previously been
voted] or [may be issued] for the purpose of refunding previously
issued bond anticipation notes. A district may covenant with the
purchasers of the bond anticipation notes that the district will
use the proceeds of sale of any bonds in the process of issuance for
the purpose of refunding the bond anticipation notes, in which case
the board will be required to use the proceeds received from sale of
the bonds in the process of issuance to pay principal, interest, or
redemption price on the bond anticipation notes.
SECTION 16. Section 49.181(a), Water Code, is amended to
read as follows:
(a) A district may not issue bonds to finance a project for
which the commission has adopted rules requiring review and
approval unless the commission determines that the project [to be
financed by the bonds] is feasible and issues an order approving the
issuance of the bonds. This section does not apply to:
(1) refunding bonds if the commission issued an order
approving the issuance of the bonds or notes that originally
financed the project;
(2) refunding bonds that are issued by a district
under an agreement between the district and a municipality allowing
the issuance of the district's bonds to refund bonds issued by the
municipality to pay the cost of financing facilities;
(3) bonds issued to and approved by the Farmers Home
Administration, the United States Department of Agriculture, the
North American Development Bank, or the Texas Water Development
Board; or
(4) refunding bonds issued to refund bonds described
by Subdivision (3).
SECTION 17. Section 49.194, Water Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsection (h) to
read as follows:
(a) Except as provided by Subsection (h), after [After] the
board has approved the audit report, it shall submit a copy of the
report to the executive director for filing within 135 days after
the close of the district's fiscal year.
(b) Except as provided by Subsection (h), if [If] the board
refuses to approve the annual audit report, the board shall submit a
copy of the report to the executive director for filing within 135
days after the close of the district's fiscal year, accompanied by a
statement from the board explaining the reasons for its failure to
approve the report.
(c) Copies of the audit report, the annual financial
dormancy affidavit, or annual financial report described in
Sections 49.197 and 49.198 shall be filed annually in the office of
the district.
(h) A special water authority shall submit a copy of the
audit report to the executive director for filing not later than the
160th day after the date the special water authority's fiscal year
ends.
SECTION 18. Section 49.212, Water Code, is amended by
amending Subsection (d) and adding Subsections (d-1) and (d-2) to
read as follows:
(d) Notwithstanding any provision of law to the contrary, a
district that charges a fee that is an impact fee as described in
Section 395.001(4), Local Government Code, must comply with Chapter
395, Local Government Code. A charge or fee is not an impact fee
under that chapter if:
(1) the charge or fee is imposed by a district for
construction, installation, or inspection of a tap or connection to
district water, sanitary sewer, or drainage facilities, including
all necessary service lines and meters, for capacity in storm water
detention or retention facilities and related storm water
conveyances, or for wholesale facilities that serve such water,
sanitary sewer, [or] drainage, or storm water detention or
retention facilities; and
(2) the charge or fee:
(A) [that (i)] does not exceed three times the
actual [and reasonable] costs to the district for such tap or
connection;
(B) [, (ii)] if made to a nontaxable entity for
retail or wholesale service, does not exceed the actual costs to the
district for such work and for all facilities that are necessary to
provide district services to such entity and that are financed or
are to be financed in whole or in part by tax-supported or revenue
bonds of the district; [,] or
(C) is [(iii) if] made by a district for retail or
wholesale service on land that at the time of platting was not being
provided with water, [or] wastewater, drainage, or storm water
detention or retention service by the district[, shall not be
deemed to be an impact fee under Chapter 395, Local Government
Code].
(d-1) Actual costs under Subsection (d), as determined by
the board in its reasonable discretion, may include nonconstruction
expenses attributable to the design, permitting, financing, and
construction of those facilities, and reasonable interest on those
costs calculated at a rate not to exceed the net effective interest
rate on any district bonds issued to finance the facilities.
(d-2) A district may pledge the revenues of the district's
utility system to pay the principal of or interest on bonds issued
to construct the capital improvements for which a fee is [was]
imposed under Subsection (d) [this subsection], and money received
from the fees shall be considered revenues of the district's
utility system for purposes of the district's bond covenants.
SECTION 19. Section 49.2121(b), Water Code, is amended to
read as follows:
(b) A district may:
(1) accept a credit card for the payment of any fees
and charges imposed by the district;
(2) collect a fee[, not to exceed five percent of the
amount of the fee or charge being paid,] that is reasonably related
to the expense incurred by the district in processing the payment by
credit card; and
(3) collect a service charge for the expense incurred
by the district in collecting the original fee or charge if the
payment by credit card is not honored by the credit card company on
which the funds are drawn.
SECTION 20. Section 49.216, Water Code, is amended by
amending Subsection (e) and adding Subsection (f) to read as
follows:
(e) Any peace officer who is directly employed by a
district, before beginning to perform any duties and at the time of
appointment, must take an oath and execute a bond conditioned on
faithful performance of such officer's duties in the amount of
$1,000 payable to the district. The oath and the bond shall be
filed in the district office.
(f) A peace officer contracted for by the district,
individually or through a county, sheriff, constable, or
municipality, is an independent contractor, and the district is
responsible for the acts or omissions of the peace officer only to
the extent provided by law for other independent contractors.
SECTION 21. Sections 49.273(d) and (e), Water Code, are
amended to read as follows:
(d) For contracts over $75,000 [$50,000], the board shall
advertise the letting of the contract, including the general
conditions, time, and place of opening of sealed bids. The notice
must [shall] be published in one or more newspapers circulated in
each county in which [part of] the district is located. [If one
newspaper meets both of these requirements, publication in such
newspaper is sufficient.] If there are more than four counties in
the district, notice may be published in any newspaper with general
circulation in the district. The notice must [shall] be published
once a week for two consecutive weeks before the date that the bids
are opened, and the first publication must [shall] be not later than
the 14th [21st] day before the date of the opening of the sealed
bids.
(e) For contracts over $25,000 but not more than $75,000
[$50,000], the board shall solicit written competitive bids on
uniform written specifications from at least three bidders.
SECTION 22. Section 49.351, Water Code, is amended by
amending Subsections (a), (b), (c), (f), (i), and (l) and adding
Subsection (m) to read as follows:
(a) A district providing potable water or sewer service to
household users may, separately or jointly with another district,
municipality, or other political subdivision, establish, operate,
and maintain, finance with ad valorem taxes, mandatory fees, or
voluntary contributions, and issue bonds for a fire department to
perform all fire-fighting services within the district as provided
in this subchapter and may provide for [issue bonds or impose a
mandatory fee, with voter approval, for financing a plan approved
in accordance with this section, including] the construction and
purchase of necessary buildings, facilities, land, and equipment
and the provision of an adequate water supply.
(b) After complying with the requirements of this section
[approval of the district electors of a plan to operate, jointly
operate, or jointly fund the operation of a fire department, and
after complying with Subsections (g), (h), and (i)], the district
or districts shall provide an adequate system and water supply for
fire-fighting purposes, may purchase necessary land, may construct
and purchase necessary buildings, facilities, and equipment, and
may employ or contract with a fire department to employ all
necessary personnel including supervisory personnel to operate the
fire department.
(c) For [Bonds for] financing a plan approved in accordance
with this section, bonds and ad valorem taxes must [shall] be
authorized and may be issued or imposed[, and a district shall be
authorized to levy a tax to pay the principal of and interest on
such bonds,] as provided by law for the authorization and issuance
of other bonds and the authorization and imposition of other ad
valorem taxes of the district.
(f) Before a district imposes an ad valorem tax or issues
bonds payable wholly or partly from ad valorem taxes to finance the
establishment of [establishes] a fire department, contracts to
operate a joint fire department, or contracts with another person
to perform fire-fighting services within the district, the district
must comply with [the provisions of] Subsections (g), (h), and (i).
A district that funds fire-fighting services with revenue,
including mandatory fees or voluntary contributions, is not
required to comply with Subsections (g), (h), and (i).
(i) After approval of a plan by the commission, the district
shall hold an [submit to the electors of the district at the]
election to approve the plan, approve bonds payable wholly or
partly from ad valorem taxes, and [or to] impose ad valorem taxes [a
mandatory fee] for financing the plan. The election [, or if no
bonds or fees are to be approved, at an election called for approval
of the plan, which] may be held in conjunction with an election
required by Section 49.102[, the proposition of whether or not the
plan should be implemented or entered into by the district]. [The
ballots at the election shall be printed, as applicable, to provide
for voting for or against the proposition: "The implementation of
the plan for (operation/joint operation) of a fire department"; or
"The plan and contract to provide fire-fighting services for the
district."]
(l) A [Notwithstanding the requirements of Subsections
(a)-(j), a] district providing potable water or sewer service to
household users may, as part of its billing process, collect from
its customers a voluntary contribution on behalf of organizations
providing fire-fighting services to the district. A district that
chooses to collect a voluntary contribution under this subsection
must give reasonable notice to its customers that the contribution
is voluntary. Water and sewer service may not be terminated as a
result of failure to pay the voluntary contribution.
(m) If a customer makes a partial payment of a district bill
for water or sewer service and includes with the payment a voluntary
contribution for fire-fighting services under Subsection (l), the
district shall apply the voluntary contribution first to the bill
for water or sewer service, including any interest or penalties
imposed. The district shall use any amount remaining for
fire-fighting services.
SECTION 23. Section 49.462(1), Water Code, is amended to
read as follows:
(1) "Recreational facilities" means parks,
landscaping, parkways, greenbelts, sidewalks, trails, public
right-of-way beautification projects, and recreational equipment
and facilities. The term includes associated street and security
lighting. The term does not include a minor improvement or
beautification project to land acquired or to be acquired as part of
a district's water, sewer, or drainage facilities.
SECTION 24. Subchapter N, Chapter 49, Water Code, is
amended by adding Section 49.4641 to read as follows:
Sec. 49.4641. RECREATIONAL FACILITIES ON SITES ACQUIRED FOR
WATER, SEWER, OR DRAINAGE FACILITIES. (a) A district may develop
and maintain recreational facilities on a site acquired for the
purpose of developing water, sewer, or drainage facilities.
(b) A district is not required to prorate the costs of a site
described by Subsection (a) between the primary water, sewer, or
drainage purpose and any secondary recreational facilities purpose
if a licensed professional engineer certifies that the site is
reasonably sized for the intended water, sewer, or drainage
purpose.
(c) The engineer may consider the following factors in
determining the reasonableness of the size of a water, sewer, or
drainage site:
(1) the rules, regulations, and design guidelines or
criteria of a municipality, county, or other entity exercising
jurisdiction;
(2) sound engineering principles;
(3) the impact on adjoining property;
(4) the availability of sites that meet the
requirements for the proposed use;
(5) requirements for sanitary control;
(6) the need for a buffer zone to mitigate noise or for
aesthetic purposes;
(7) benefits to storm water quality; and
(8) anticipated expansions of facilities resulting
from:
(A) future growth and demand for district
facilities; or
(B) changes in regulatory requirements.
SECTION 25. Sections 49.4645(a) and (b), Water Code, are
amended to read as follows:
(a) A district all or part of which is located in Bastrop
County, Bexar County, Waller County, Travis County, Williamson
County, Harris County, Galveston County, Brazoria County,
Montgomery County, or Fort Bend County may issue bonds supported by
ad valorem taxes to pay for the development and maintenance of
recreational facilities only if the bonds are authorized by a
majority vote of the [qualified] voters of the district voting in an
election held for that purpose. The outstanding principal amount
of bonds, notes, and other obligations issued to finance parks and
recreational facilities supported by ad valorem taxes [payable from
any source] may not exceed an amount equal to one percent of the
value of the taxable property in the district or, if supported by
contract taxes under Section 49.108, may not exceed an amount equal
to one percent of the sum of the value of the taxable property in the
districts making payments under the contract as shown by the tax
rolls of the central appraisal district at the time of the issuance
of the bonds, notes, and other obligations or an amount greater than
the estimated cost provided in the park plan under Subsection (b),
whichever is smaller. An estimate of the value provided by the
central appraisal district may be used to establish the value of the
taxable property in the district or districts under this section.
The district may not issue bonds supported by ad valorem taxes to
pay for the development and maintenance of:
(1) indoor or outdoor swimming pools; or
(2) golf courses.
(b) On or before the 10th day before the first day for early
voting by personal appearance at [Not later than the 10th day
before] an election [is] held to authorize the issuance of bonds for
the development and maintenance of recreational facilities, the
board shall file in the district office for review by the public a
park plan covering the land, improvements, facilities, and
equipment to be purchased or constructed and their estimated cost,
together with maps, plats, drawings, and data fully showing and
explaining the park plan. The park plan is not part of the
proposition to be voted on, [and the park plan] does not create a
contract with the voters, and may be amended at any time after the
election held to authorize the issuance of bonds for the
development and maintenance of recreational facilities provided
under the plan. The estimated cost stated in the amended park plan
may not exceed the amount of bonds authorized at that election.
SECTION 26. Section 51.072, Water Code, is amended to read
as follows:
Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. (a) To be
qualified for election as a director, a person must:
(1) be a resident of the state;
(2) [,] own land subject to taxation in the district or
be a qualified voter in the district; [,] and
(3) be at least 18 years of age.
(b) Section 49.052 does not apply to a district governed by
this chapter whose principal purpose is providing water for
irrigation.
SECTION 27. Section 51.335, Water Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) The district shall not usurp functions or duplicate a
service already adequately exercised or rendered by the other
governmental agency except:
(1) under a valid contract with the other governmental
agency; or
(2) as provided by Subsection (c).
(c) The district may finance, develop, and maintain
recreational facilities under Subchapter N, Chapter 49, even if
similar facilities may be provided by a political subdivision or
other governmental entity included wholly or partly in the
district.
SECTION 28. Section 51.523, Water Code, is amended to read
as follows:
Sec. 51.523. BALLOTS. The ballot for an election under this
subchapter shall be printed to provide for voting for or against
substantially the proposition: "Designation of the area, issuance
of bonds, [and] levy of a tax to retire the bonds, and levy of a
maintenance tax."
SECTION 29. Section 51.527, Water Code, is amended by
adding Subsection (c) to read as follows:
(c) After bonds issued for the defined area or designated
property are fully paid or defeased, the board may declare the
defined area dissolved or may repeal the designation of the
designated property. After that declaration or repeal, the board
shall cease imposing any special taxes authorized under the adopted
tax plan on the property located in the defined area or on the
designated property.
SECTION 30. Section 53.063(a), Water Code, is amended to
read as follows:
(a) Except as provided by Subsection (b), to be qualified
for election as a supervisor, a person must be:
(1) a resident of this state;
(2) the owner of taxable property in the district or a
qualified voter in the district; and
(3) at least 18 years of age.
SECTION 31. Section 54.016(f), Water Code, is amended to
read as follows:
(f) A city may provide in its written consent for the
inclusion of land in a district that is initially located wholly or
partly outside the corporate limits of the city that a contract
("allocation agreement") between the district and the city be
entered into prior to the first issue of bonds, notes, warrants, or
other obligations of the district. The allocation agreement shall
contain the following provisions:
(1) a method by which the district shall continue to
exist following the annexation of all territory within the district
by the city, if the district is initially located outside the
corporate limits of the city;
(2) an allocation of the taxes or revenues of the
district or the city which will assure that, following the date of
the inclusion of all the district's territory within the corporate
limits of the city, the total annual ad valorem taxes collected by
the city and the district from taxable property within the district
does not exceed an amount greater than the city's ad valorem tax
upon such property;
(3) an allocation of governmental services to be
provided by the city or the district following the date of the
inclusion of all of the district's territory within the corporate
limits of the city; and
(4) such other terms and conditions as may be deemed
appropriate by the city.
SECTION 32. Section 54.236, Water Code, is amended to read
as follows:
Sec. 54.236. STREET OR SECURITY LIGHTING. (a) Subject to
the provisions of this section, a district may purchase, install,
operate, and maintain street lighting or security lighting within
public utility easements or public rights-of-way or property owned
by [within the boundaries of] the district.
(b) A district may not issue bonds supported by ad valorem
taxes to pay for the purchase, installation, and maintenance of
street or security lighting, except as authorized by Section 54.234
or Subchapter N, Chapter 49.
SECTION 33. Section 54.739, Water Code, is amended to read
as follows:
Sec. 54.739. SUBSTITUTING LAND OF EQUAL VALUE. After the
district is organized and has obtained voter approval for the
issuance of, or has sold, bonds payable wholly or partly from ad
valorem taxes [acquires facilities with which to function for the
purposes for which it was organized, and votes, issues and sells
bonds for such purposes], land within the district boundaries
subject to taxation that does not need or utilize the services of
the district may be excluded and other land not within the
boundaries of the district may be included within the boundaries of
the district without impairment of the security for payment of the
bonds or invalidation of any prior bond election, as provided by
this section and Sections 54.740 through 54.747.
SECTION 34. Section 54.744, Water Code, is amended to read
as follows:
Sec. 54.744. IMPAIRMENT OF SECURITY. (a) For purposes of
the board's consideration of the applications, the lands proposed
for inclusion shall be deemed to be sufficient to avoid an
impairment of the security for payment of obligations of the
district if:
(1) according to the most recent tax roll of the
district or the most recently certified estimates of taxable value
from the chief appraiser of the appropriate appraisal district, the
taxable value of such included lands equals or exceeds the taxable
value of the excluded lands; and
(2) either the estimated costs of providing district
facilities and services to such included lands is equal to or less
than the estimated costs of providing district facilities and
services to the excluded lands or any increased estimated costs of
providing district facilities and services to the included land, as
determined by the district's engineer, can be amortized at
prevailing bond interest rates and maturity schedules and the
prevailing debt service tax rate of the district, as determined by
the district's professional financial advisor, when applied to the
increase in taxable value of the included land over the taxable
value of the excluded land. [; and]
(b) If the district has any [(3) the district's]
outstanding bonds or contract obligations [are] payable in whole or
in part by a pledge of net revenues from the ownership or operation
of the district's facilities at the time the board considers an
application, the lands proposed for inclusion shall be deemed to be
sufficient to avoid an impairment of the security for payment of
obligations of the district if[, and] the projected net revenues to
be derived from the lands to be included during the succeeding
12-month period, as determined by the district's engineer, equals
or exceeds the projected net revenues that would otherwise have
been derived from the lands to be excluded during the same period.
(c) In this section, the taxable value of included land
means the market value of the land if, before or contemporaneously
with the inclusion of the land in the district, the owner of the
land waives the right to special appraisal of the land as to the
district under Section 23.20, Tax Code.
SECTION 35. Section 49.103(g), Water Code, is repealed.
SECTION 36. The legislature finds that an agreement entered
into before September 1, 2011, by a municipality and a municipal
utility district is an allocation agreement only if:
(1) the district is initially located wholly or partly
outside the corporate limits of the municipality;
(2) the agreement strictly complies with the
requirements of Section 54.016(f), Water Code, as that section
existed immediately before the effective date of this Act; and
(3) the agreement is specifically designated by the
parties to the agreement as an "allocation agreement" under Section
54.016(f), Water Code.
SECTION 37. Not later than December 1, 2011, the Texas
Commission on Environmental Quality shall adopt any rules or
amendments to existing rules necessary to implement Section
49.4641, Water Code, as added by this Act.
SECTION 38. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2011.
(b) Sections 54.739 and 54.744, Water Code, as amended by
this Act, take effect immediately if this Act receives a vote of
two-thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution; otherwise, those
sections take effect September 1, 2011.