Texas 2013 - 83rd Regular

Texas House Bill HB168 Compare Versions

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1	1	83R16885 SGA-F
2	2	By: Callegari H.B. No. 168
3	3	Substitute the following for H.B. No. 168:
4	4	By: King of Zavala C.S.H.B. No. 168
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the operation, powers, and duties of certain water
10	10	districts; providing clarification of existing authority with
11	11	regard to the imposition or use of certain assessments, fees, or
12	12	taxes; providing authority to change a fee or repeal a tax.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 388.005, Health and Safety Code, is
15	15	amended by adding Subsections (g) and (h) to read as follows:
16	16	(g) Except as provided by Subsection (h), this section does
17	17	not apply to the electricity consumption of a district as defined by
18	18	Section 36.001 or 49.001, Water Code, that relates to the operation
19	19	and maintenance of facilities or improvements for:
20	20	(1) wastewater collection and treatment;
21	21	(2) water supply and distribution; or
22	22	(3) storm water diversion, detention, or pumping.
23	23	(h) At least once every five years, a political subdivision
24	24	that is a district as defined by Section 36.001 or 49.001, Water
25	25	Code, shall for district facilities described by Subsection (g):
26	26	(1) evaluate the consumption of electricity;
27	27	(2) establish goals to reduce the consumption of
28	28	electricity; and
29	29	(3) identify and implement cost-effective energy
30	30	efficiency measures to reduce the consumption of electricity.
31	31	SECTION 2. Section 375.161, Local Government Code, is
32	32	amended to read as follows:
33	33	Sec. 375.161. CERTAIN RESIDENTIAL PROPERTY EXEMPT.
34	34	(a) Except as provided by Subsection (b), the[The] board may not
35	35	impose an impact fee, assessment, tax, or other requirement for
36	36	payment, construction, alteration, or dedication under this
37	37	chapter on single-family detached residential property, duplexes,
38	38	triplexes, and fourplexes [quadraplexes].
39	39	(b) This section does not apply to a tax authorized or
40	40	approved by the voters of the district or a required payment for a
41	41	service provided by the district, including water and sewer
42	42	services.
43	43	SECTION 3. Section 552.014, Local Government Code, is
44	44	amended to read as follows:
45	45	Sec. 552.014. CONTRACTS WITH WATER DISTRICTS OR NONPROFIT
46	46	CORPORATIONS. (a) In this section:
47	47	(1) "Project" means a water supply or treatment
48	48	system, a water distribution system, a sanitary sewage collection
49	49	or treatment system, works or improvements necessary for drainage
50	50	of land, recreational facilities, roads and improvements in aid of
51	51	roads, or facilities to provide firefighting services.
52	52	(2) "Water district" [, "water district"] means a
53	53	district created under Article XVI, Section 59, of the Texas
54	54	Constitution.
55	55	(b) A municipality may enter into a contract with a water
56	56	district or with a corporation organized to be operated without
57	57	profit under which the district or corporation will acquire for the
58	58	benefit of and convey to the municipality, either separately or
59	59	together, one or more projects [a water supply or treatment system,
60	60	a water distribution system, a sanitary sewage collection or
61	61	treatment system, or works or improvements necessary for drainage
62	62	of land in the municipality]. In connection with the acquisition,
63	63	the district or corporation shall improve, enlarge, or extend the
64	64	existing municipal facilities as provided by the contract.
65	65	(c) If the contract provides that the municipality assumes
66	66	ownership of the project [water, sewer, or drainage system] on
67	67	completion of construction or at the time that all debt incurred by
68	68	the district or corporation in the acquisition, construction,
69	69	improvement, or extension of the project [system] is paid in full,
70	70	the municipality may make payments to the district or corporation
71	71	for project [water, sewer, or drainage] services to part or all of
72	72	the residents of the municipality. The contract may provide for
73	73	purchase of the project [system] by the municipality through
74	74	periodic payments to the district or corporation in amounts that,
75	75	together with the net income of the district or corporation, are
76	76	sufficient to pay the principal of and interest on the bonds of the
77	77	district or corporation as they become due. The contract may
78	78	provide:
79	79	(1) that any payments due under this section are
80	80	payable from and are secured by a pledge of a specified part of the
81	81	revenues of the municipality, including revenues from municipal
82	82	sales and use taxes [municipal water system, sewer system, or
83	83	drainage system];
84	84	(2) for the levying of a tax to make payments due under
85	85	this section; or
86	86	(3) that the payments due under this section be made
87	87	from a combination of revenues [from the system] and taxes.
88	88	(d) The contract may provide that the district or
89	89	corporation may use the streets, alleys, and other public ways and
90	90	places of the municipality for project [water, sewer, or drainage]
91	91	purposes for a period that ends at the time the indebtedness of the
92	92	district or corporation is paid in full and the municipality
93	93	acquires title to the project [system] in accordance with this
94	94	section.
95	95	(e) The contract may provide for the operation of the
96	96	project [system] by the municipality, and, if so authorized, the
97	97	municipality may operate the project [system].
98	98	(f) A contract under this section must be authorized by a
99	99	majority vote of the governing body of the municipality.
100	100	(g) This section does not authorize a water district or
101	101	corporation described by Subsection (b) to participate in a project
102	102	that the water district or corporation is not authorized to
103	103	participate in under other law.
104	104	SECTION 4. Section 49.059, Water Code, is amended to read as
105	105	follows:
106	106	Sec. 49.059. [DISQUALIFICATION OF] TAX ASSESSOR AND
107	107	COLLECTOR. (a) A district may employ or contract with any person
108	108	to serve as its tax assessor and collector who is:
109	109	(1) an individual certified as a registered Texas
110	110	assessor-collector; or
111	111	(2) a firm, organization, association, partnership,
112	112	corporation, or other legal entity if an individual certified as a
113	113	registered Texas assessor-collector owns an interest in or is
114	114	employed by the firm, organization, association, partnership,
115	115	corporation, or other legal entity.
116	116	(b) A tax assessor and collector employed or contracted for
117	117	under this section is not required to be a natural person.
118	118	(c) A firm, organization, association, partnership,
119	119	corporation, or other legal entity serving as district tax assessor
120	120	and collector shall give a bond as required by Section 49.057 for a
121	121	natural person.
122	122	(d) No person may serve as tax assessor and collector of a
123	123	district providing potable water or sewer utility services to
124	124	household users if that person:
125	125	(1) is a natural person related within the third
126	126	degree of affinity or consanguinity to any developer of property in
127	127	the district, a member of the board, or the manager, engineer, or
128	128	attorney for the district;
129	129	(2) is or was within two years immediately preceding
130	130	the assumption of assessment and collection duties with the
131	131	district an employee of any developer of property in the district or
132	132	any director, manager, engineer, or attorney for the district;
133	133	(3) owns an interest in or is employed by any
134	134	corporation organized for the purpose of tax assessment and
135	135	collection services, a substantial portion of the stock of which is
136	136	owned by a developer of property within the district or any
137	137	director, manager, engineer, or attorney for the district; or
138	138	(4) is directly or through a corporation developing
139	139	land in the district or is a director, engineer, or attorney for the
140	140	district.
141	141	(e) [(b)] Within 60 days after the board determines a
142	142	relationship or employment exists which constitutes a
143	143	disqualification under Subsection (d) [(a)], it shall replace the
144	144	person serving as tax assessor and collector with a person who would
145	145	not be disqualified.
146	146	(f) [(c)] Any person who wilfully violates the provisions
147	147	of Subsection (d) [(a)] is guilty of a misdemeanor and on conviction
148	148	shall be fined not less than $100 nor more than $1,000.
149	149	(g) [(d)] As used in this section, "developer of property in
150	150	the district" has the same meaning as in Section 49.052(d).
151	151	SECTION 5. Section 49.063, Water Code, is amended to read as
152	152	follows:
153	153	Sec. 49.063. NOTICE OF MEETINGS. (a) Notice of meetings
154	154	of the board shall be given as set forth in the open meetings law,
155	155	Chapter 551, Government Code, except that if a district does not
156	156	have a meeting place within the district, the district shall post
157	157	notice of its meeting at a public place within the district
158	158	specified by the board in a written resolution, rather than at its
159	159	administrative office. The board shall specify such public place
160	160	to be a bulletin board or other place within the district which is
161	161	reasonably available to the public.
162	162	(b) The validity of an action taken at a board meeting is not
163	163	affected by:
164	164	(1) [Neither] failure to provide notice of the meeting
165	165	if the meeting is a regular meeting;
166	166	(2) [nor] an insubstantial defect in notice of the
167	167	[any] meeting; or
168	168	(3) failure of a county clerk to timely or properly
169	169	post or maintain public access to a notice of the meeting if notice
170	170	of the meeting is furnished to the county clerk in sufficient time
171	171	for posting under Section 551.043(a) or 551.045, Government Code
172	172	[shall affect the validity of any action taken at the meeting].
173	173	SECTION 6. Sections 49.102(a), (b), (c), and (h), Water
174	174	Code, are amended to read as follows:
175	175	(a) Before issuing any bonds or other obligations, an
176	176	election shall be held within the boundaries of the proposed
177	177	district on a uniform election date provided by Section 41.001,
178	178	Election Code, to determine if the proposed district shall be
179	179	established and, if the directors of the district are required by
180	180	law to be elected, to elect permanent directors.
181	181	(b) Notice of a confirmation or director election shall
182	182	state the day and place or places for holding the election, the
183	183	propositions to be voted on, and, if applicable, the number of
184	184	directors to be voted on.
185	185	(c) The ballots for a confirmation election shall be printed
186	186	to provide for voting "For District" and "Against District."
187	187	Ballots for a directors election shall provide the names of the
188	188	persons appointed by the governing body who qualified and are
189	189	serving as temporary directors at the time the election is called.
190	190	If the district has received an application by a write-in
191	191	candidate, the [The] ballots shall also have blank places after the
192	192	names of the temporary directors in which a voter may write the
193	193	names of any candidates appearing on the list of write-in
194	194	candidates required by Section 146.031, Election Code [other
195	195	persons for directors].
196	196	(h) Unless otherwise agreed, the elected directors shall
197	197	decide the initial terms of office by lot, with a simple majority of
198	198	the elected directors serving until the second succeeding directors
199	199	election and the remaining elected directors serving until the next
200	200	directors election.
201	201	SECTION 7. Sections 49.103(a) and (b), Water Code, are
202	202	amended to read as follows:
203	203	(a) Except as provided by Section 49.102, the members of the
204	204	board of a district shall serve staggered [for] four-year terms.
205	205	(b) After confirmation of a district, an [An] election shall
206	206	be held on the uniform election date, provided by Section 41.001,
207	207	[established by the] Election Code, in May of each even-numbered
208	208	year to elect the appropriate number of directors.
209	209	SECTION 8. Subchapter D, Chapter 49, Water Code, is amended
210	210	by adding Section 49.1045 to read as follows:
211	211	Sec. 49.1045. CERTIFICATION OF ELECTION RESULTS IN LESS
212	212	POPULOUS DISTRICTS. (a) This section applies only to a district
213	213	that:
214	214	(1) has 10 or fewer registered voters; and
215	215	(2) holds an election jointly with a county in which
216	216	the district is wholly or partly located.
217	217	(b) A district may provide for an inquiry into and
218	218	certification of the voting results of an election under this
219	219	section if:
220	220	(1) the election results indicate that the number of
221	221	votes cast in the election was greater than the number of registered
222	222	voters in the district;
223	223	(2) the board determines that the election results are
224	224	likely to be disputed in court; and
225	225	(3) the board can determine from the official list of
226	226	registered voters prepared by the county voter registrar or county
227	227	elections administrator for the district election which voters were
228	228	qualified to vote in the district election and can determine from
229	229	the signature roster from the joint election who voted in the joint
230	230	election.
231	231	(c) To certify the district votes, the board by rule shall
232	232	adopt a procedure to determine for each person who signed the
233	233	signature roster as a voter in the joint election:
234	234	(1) whether the person's address on the day of the
235	235	election was in the district; and
236	236	(2) how the person voted in the district election.
237	237	(d) The certified votes are the official election results.
238	238	(e) Certification of the results under this section does not
239	239	preclude the filing of an election contest.
240	240	SECTION 9. Sections 49.105(c) and (d), Water Code, are
241	241	amended to read as follows:
242	242	(c) If the number of directors is reduced to fewer than a
243	243	majority or if a vacancy continues beyond the 90th day after the
244	244	date the vacancy occurs, the vacancy or vacancies may [shall] be
245	245	filled by appointment by the commission if the district is required
246	246	by Section 49.181 to obtain commission approval of its bonds or by
247	247	the county commissioners court if the district was created by the
248	248	county commissioners court, regardless of whether a petition has
249	249	been presented to the board under Subsection (b). An appointed
250	250	director shall serve for the unexpired term of the director he or
251	251	she is replacing.
252	252	(d) In the event of a failure to elect one or more members of
253	253	the board of a district resulting from the absence of, or failure to
254	254	vote by, the qualified voters in an election held by the district,
255	255	the current members of the board or temporary board holding the
256	256	positions not filled at such election shall be deemed to have been
257	257	elected [reelected] and shall serve an additional term of office,
258	258	or, in the case of a temporary board member deemed elected under
259	259	this subsection, the initial term of office.
260	260	SECTION 10. Section 49.108, Water Code, is amended by
261	261	adding Subsections (g), (h), and (i) to read as follows:
262	262	(g) On or before the first day for early voting by personal
263	263	appearance at an election held to authorize a contract, a
264	264	substantially final form of the contract must be filed in the office
265	265	of the district and must be open to inspection by the public. The
266	266	contract is not required to be attached as an exhibit to the order
267	267	calling the election to authorize the contract.
268	268	(h) A single contract may contain multiple purposes or
269	269	provisions for multiple facilities authorized by one or more
270	270	constitutional provisions. The contract may generally describe the
271	271	facilities to be acquired or financed by the district without
272	272	reference to specific constitutional provisions. A contract
273	273	described by this subsection may be submitted for approval in a
274	274	single proposition at an election.
275	275	(i) A contract between districts to provide facilities or
276	276	services is not required to specify the maximum amount of bonds or
277	277	expenditures authorized under the contract if:
278	278	(1) the contract provides that the service area cannot
279	279	be enlarged without the consent of at least two-thirds of the boards
280	280	of directors of the districts that are:
281	281	(A) included in the service area as proposed to
282	282	be enlarged; or
283	283	(B) served by the facilities or services provided
284	284	in the contract;
285	285	(2) the contract provides that bonds or expenditures,
286	286	payable wholly or partly from contract taxes, are issued or made:
287	287	(A) on an emergency basis; or
288	288	(B) to purchase, construct, acquire, own,
289	289	operate, repair, improve, or extend services or facilities
290	290	necessary to comply with changes in applicable regulatory
291	291	requirements; or
292	292	(3) the contract provides that the bonds or
293	293	expenditures require prior approval by any district that is
294	294	obligated to pay debt service on those bonds or to pay for those
295	295	expenditures wholly or partly with contract taxes.
296	296	SECTION 11. Subchapter D, Chapter 49, Water Code, is
297	297	amended by adding Sections 49.109, 49.110, 49.111, 49.112, and
298	298	49.113 to read as follows:
299	299	Sec. 49.109. AGENT DURING ELECTION PERIOD. The board may
300	300	appoint a person, including a district officer, employee, or
301	301	consultant, to serve as the district's agent under Section 31.123,
302	302	Election Code.
303	303	Sec. 49.110. ELECTION JUDGE. (a) The notice requirements
304	304	for the appointment of a presiding election judge under Section
305	305	32.009, Election Code, do not apply to an election held by a
306	306	district.
307	307	(b) To serve as an election judge in an election held by a
308	308	district, a person must be a registered voter of the county in which
309	309	the district is wholly or partly located. To the extent of any
310	310	conflict with Section 32.051, Election Code, this section controls.
311	311	Sec. 49.111. EXEMPTIONS FROM USE OF ACCESSIBLE VOTING
312	312	SYSTEMS. (a) Notwithstanding Sections 61.012 and 61.013,
313	313	Election Code, a district is exempt from the acquisition, lease, or
314	314	use of an electronic voting system for an election if:
315	315	(1) the election is a confirmation election or an
316	316	election held jointly with a confirmation election on the same date
317	317	and in conjunction with the confirmation election, except for an
318	318	election in which a federal office appears on the ballot;
319	319	(2) the most recently scheduled district directors'
320	320	election was not held, as provided by Section 2.053(b), Election
321	321	Code; or
322	322	(3) fewer than 250 voters voted at the most recently
323	323	held district directors' election.
324	324	(b) A district eligible for the exemption under Subsection
325	325	(a) must publish notice in a newspaper of general circulation in an
326	326	area that includes the district or mail notice to each voter in the
327	327	district regarding the district's intention to hold an election
328	328	without providing a voting station that meets the requirements for
329	329	accessibility under 42 U.S.C. Section 15481(a)(3) on election day
330	330	and during the period for early voting by personal appearance. The
331	331	notice must be published or mailed not later than the later of:
332	332	(1) the 75th day before the date of the election; or
333	333	(2) the date on which the district adopts the order
334	334	calling the election.
335	335	(c) The notice required by Subsection (b) must:
336	336	(1) provide that any voter in the district may request
337	337	the use of a voting station that meets the accessibility
338	338	requirements for voting by a person with a disability; and
339	339	(2) provide information on how to submit such a
340	340	request.
341	341	(d) The district shall comply with a request for an
342	342	accessible voting station if the request is received not later than
343	343	the 45th day before the date of the election.
344	344	Sec. 49.112. CANCELLATION OF ELECTION; REMOVAL OF BALLOT
345	345	MEASURE. Before the first day of early voting by personal
346	346	appearance, the board by order or resolution may cancel an election
347	347	called at the discretion of the district or may remove from the
348	348	ballot a measure included at the discretion of the district. A copy
349	349	of the order or resolution must be posted during the period for
350	350	early voting by personal appearance and on election day at each
351	351	polling place that is used or that would have been used in the
352	352	election.
353	353	Sec. 49.113. NOTICE FOR FILING FOR PLACE ON BALLOT. A
354	354	notice required by Section 141.040, Election Code, must be posted
355	355	at the district's administrative office in the district or at the
356	356	public place established by the district under Section 49.063 of
357	357	this chapter not later than the 30th day before the deadline for a
358	358	candidate to file an application for a place on the ballot of a
359	359	district directors' election.
360	360	SECTION 12. Section 49.151(c), Water Code, is amended to
361	361	read as follows:
362	362	(c) The board may allow disbursements of district money to
363	363	be transferred by federal reserve wire system or by electronic
364	364	means. The board by resolution may allow the wire or electronic
365	365	transfers to accounts in the name of the district or accounts not in
366	366	the name of the district.
367	367	SECTION 13. Sections 49.154(a) and (c), Water Code, are
368	368	amended to read as follows:
369	369	(a) The board may declare an emergency in the matter of
370	370	funds not being available to pay principal of and interest on any
371	371	bonds of the district payable in whole or in part from taxes or to
372	372	meet any other needs of the district and may issue [negotiable] tax
373	373	anticipation notes or [negotiable] bond anticipation notes to
374	374	borrow the money needed by the district without advertising or
375	375	giving notice of the sale. A district's bond anticipation notes or
376	376	tax anticipation notes are negotiable instruments within the
377	377	meaning and purposes of the Business & Commerce Code
378	378	notwithstanding any provision to the contrary in that code. Bond
379	379	anticipation notes and tax anticipation notes shall mature within
380	380	one year of their date.
381	381	(c) Bond anticipation notes may be issued for any purpose
382	382	for which bonds of the district may be issued [have previously been
383	383	voted] or [may be issued] for the purpose of refunding previously
384	384	issued bond anticipation notes. A district may covenant with the
385	385	purchasers of the bond anticipation notes that the district will
386	386	use the proceeds of sale of any bonds in the process of issuance for
387	387	the purpose of refunding the bond anticipation notes, in which case
388	388	the board will be required to use the proceeds received from sale of
389	389	the bonds in the process of issuance to pay principal, interest, or
390	390	redemption price on the bond anticipation notes.
391	391	SECTION 14. Section 49.181(a), Water Code, is amended to
392	392	read as follows:
393	393	(a) A district may not issue bonds to finance a project for
394	394	which the commission has adopted rules requiring review and
395	395	approval unless the commission determines that the project [to be
396	396	financed by the bonds] is feasible and issues an order approving the
397	397	issuance of the bonds. This section does not apply to:
398	398	(1) refunding bonds if the commission issued an order
399	399	approving the issuance of the bonds or notes that originally
400	400	financed the project;
401	401	(2) refunding bonds that are issued by a district
402	402	under an agreement between the district and a municipality allowing
403	403	the issuance of the district's bonds to refund bonds issued by the
404	404	municipality to pay the cost of financing facilities;
405	405	(3) bonds issued to and approved by the Farmers Home
406	406	Administration, the United States Department of Agriculture, the
407	407	North American Development Bank, or the Texas Water Development
408	408	Board;
409	409	(4) refunding bonds issued to refund bonds described
410	410	by Subdivision (3); or
411	411	(5) bonds issued by a public utility agency created
412	412	under Chapter 572, Local Government Code, any of the public
413	413	entities participating in which are districts if at least one of
414	414	those districts is a district described by Subsection (h)(1)(E).
415	415	SECTION 15. Section 49.194, Water Code, is amended by
416	416	amending Subsections (a), (b), and (c) and adding Subsection (h) to
417	417	read as follows:
418	418	(a) Except as provided by Subsection (h), after [After] the
419	419	board has approved the audit report, it shall submit a copy of the
420	420	report to the executive director for filing within 135 days after
421	421	the close of the district's fiscal year.
422	422	(b) Except as provided by Subsection (h), if [If] the board
423	423	refuses to approve the annual audit report, the board shall submit a
424	424	copy of the report to the executive director for filing within 135
425	425	days after the close of the district's fiscal year, accompanied by a
426	426	statement from the board explaining the reasons for its failure to
427	427	approve the report.
428	428	(c) Copies of the audit report, the annual financial
429	429	dormancy affidavit, or annual financial report described in
430	430	Sections 49.197 and 49.198 shall be filed annually in the office of
431	431	the district.
432	432	(h) A special water authority shall submit a copy of the
433	433	audit report to the executive director for filing not later than the
434	434	160th day after the date the special water authority's fiscal year
435	435	ends.
436	436	SECTION 16. Section 49.212, Water Code, is amended by
437	437	amending Subsection (d) and adding Subsections (d-1) and (d-2) to
438	438	read as follows:
439	439	(d) Notwithstanding any provision of law to the contrary, a
440	440	district that charges a fee that is an impact fee as described in
441	441	Section 395.001(4), Local Government Code, must comply with Chapter
442	442	395, Local Government Code. A charge or fee is not an impact fee
443	443	under that chapter if:
444	444	(1) the charge or fee is imposed by a district for
445	445	construction, installation, or inspection of a tap or connection to
446	446	district water, sanitary sewer, or drainage facilities, including
447	447	all necessary service lines and meters, for capacity in storm water
448	448	detention or retention facilities and related storm water
449	449	conveyances, or for wholesale facilities that serve such water,
450	450	sanitary sewer, [or] drainage, or storm water detention or
451	451	retention facilities; and
452	452	(2) the charge or fee:
453	453	(A) [that (i)] does not exceed three times the
454	454	actual [and reasonable] costs to the district for such tap or
455	455	connection;
456	456	(B) [, (ii)] if made to a nontaxable entity for
457	457	retail or wholesale service, does not exceed the actual costs to the
458	458	district for such work and for all facilities that are necessary to
459	459	provide district services to such entity and that are financed or
460	460	are to be financed in whole or in part by tax-supported or revenue
461	461	bonds of the district; [,] or
462	462	(C) is [(iii) if] made by a district for retail or
463	463	wholesale service on land that at the time of platting was not being
464	464	provided with water, [or] wastewater, drainage, or storm water
465	465	detention or retention service by the district[, shall not be
466	466	deemed to be an impact fee under Chapter 395, Local Government
467	467	Code].
468	468	(d-1) Actual costs under Subsections (d)(1) and (d)(2), as
469	469	determined by the board in its reasonable discretion, may include
470	470	nonconstruction expenses attributable to the design, permitting,
471	471	financing, and construction of those facilities, and reasonable
472	472	interest on those costs calculated at a rate not to exceed the net
473	473	effective interest rate on any district bonds issued to finance the
474	474	facilities.
475	475	(d-2) A district may pledge the revenues of the district's
476	476	utility system to pay the principal of or interest on bonds issued
477	477	to construct the capital improvements for which a charge or fee is
478	478	[was] imposed under Subsection (d) [this subsection], and money
479	479	received from the fees shall be considered revenues of the
480	480	district's utility system for purposes of the district's bond
481	481	covenants.
482	482	SECTION 17. Section 49.2121(b), Water Code, is amended to
483	483	read as follows:
484	484	(b) A district may:
485	485	(1) accept a credit card for the payment of any fees
486	486	and charges imposed by the district;
487	487	(2) collect a fee[, not to exceed five percent of the
488	488	amount of the fee or charge being paid,] that is reasonably related
489	489	to the expense incurred by the district in processing the payment by
490	490	credit card; and
491	491	(3) collect a service charge for the expense incurred
492	492	by the district in collecting the original fee or charge if the
493	493	payment by credit card is not honored by the credit card company on
494	494	which the funds are drawn.
495	495	SECTION 18. Section 49.216, Water Code, is amended by
496	496	amending Subsection (e) and adding Subsection (f) to read as
497	497	follows:
498	498	(e) Any peace officer who is directly employed by a
499	499	district, before beginning to perform any duties and at the time of
500	500	appointment, must take an oath and execute a bond conditioned on
501	501	faithful performance of such officer's duties in the amount of
502	502	$1,000 payable to the district. The oath and the bond shall be
503	503	filed in the district office.
504	504	(f) A peace officer contracted for by the district,
505	505	individually or through a county, sheriff, constable, or
506	506	municipality, is an independent contractor, and the district is
507	507	responsible for the acts or omissions of the peace officer only to
508	508	the extent provided by law for other independent contractors.
509	509	SECTION 19. Sections 49.273(d) and (e), Water Code, are
510	510	amended to read as follows:
511	511	(d) For contracts over $75,000 [$50,000], the board shall
512	512	advertise the letting of the contract, including the general
513	513	conditions, time, and place of opening of sealed bids. The notice
514	514	must [shall] be published in one or more newspapers circulated in
515	515	each county in which [part of] the district is located. [If one
516	516	newspaper meets both of these requirements, publication in such
517	517	newspaper is sufficient.] If there are more than four counties in
518	518	the district, notice may be published in any newspaper with general
519	519	circulation in the district. The notice must [shall] be published
520	520	once a week for two consecutive weeks before the date that the bids
521	521	are opened, and the first publication must [shall] be not later than
522	522	the 14th [21st] day before the date of the opening of the sealed
523	523	bids.
524	524	(e) For contracts over $25,000 but not more than $75,000
525	525	[$50,000], the board shall solicit written competitive bids on
526	526	uniform written specifications from at least three bidders.
527	527	SECTION 20. Section 49.351, Water Code, is amended by
528	528	amending Subsections (a), (b), (c), (f), (i), and (l) and adding
529	529	Subsection (m) to read as follows:
530	530	(a) A district providing potable water or sewer service to
531	531	household users may, separately or jointly with another district,
532	532	municipality, or other political subdivision, establish, operate,
533	533	and maintain, finance with ad valorem taxes, mandatory fees, or
534	534	voluntary contributions, and issue bonds for a fire department to
535	535	perform all fire-fighting services within the district as provided
536	536	in this subchapter and may provide for [issue bonds or impose a
537	537	mandatory fee, with voter approval, for financing a plan approved
538	538	in accordance with this section, including] the construction and
539	539	purchase of necessary buildings, facilities, land, and equipment
540	540	and the provision of an adequate water supply.
541	541	(b) After complying with the requirements of this section
542	542	[approval of the district electors of a plan to operate, jointly
543	543	operate, or jointly fund the operation of a fire department, and
544	544	after complying with Subsections (g), (h), and (i)], the district
545	545	or districts shall provide an adequate system and water supply for
546	546	fire-fighting purposes, may purchase necessary land, may construct
547	547	and purchase necessary buildings, facilities, and equipment, and
548	548	may employ or contract with a fire department to employ all
549	549	necessary personnel including supervisory personnel to operate the
550	550	fire department.
551	551	(c) For [Bonds for] financing a plan approved in accordance
552	552	with this section, bonds and ad valorem taxes must [shall] be
553	553	authorized and may be issued or imposed[, and a district shall be
554	554	authorized to levy a tax to pay the principal of and interest on
555	555	such bonds,] as provided by law for the authorization and issuance
556	556	of other bonds and the authorization and imposition of other ad
557	557	valorem taxes of the district.
558	558	(f) Before a district imposes an ad valorem tax or issues
559	559	bonds payable wholly or partly from ad valorem taxes to finance the
560	560	establishment of [establishes] a fire department, contracts to
561	561	operate a joint fire department, or contracts with another person
562	562	to perform fire-fighting services within the district, the district
563	563	must comply with [the provisions of] Subsections (g), (h), and (i).
564	564	(i) After approval of a plan by the commission, the district
565	565	shall hold an [submit to the electors of the district at the]
566	566	election to approve the plan, approve bonds payable wholly or
567	567	partly from ad valorem taxes, and [or to] impose ad valorem taxes [a
568	568	mandatory fee] for financing the plan. The election [, or if no
569	569	bonds or fees are to be approved, at an election called for approval
570	570	of the plan, which] may be held in conjunction with an election
571	571	required by Section 49.102[, the proposition of whether or not the
572	572	plan should be implemented or entered into by the district]. [The
573	573	ballots at the election shall be printed, as applicable, to provide
574	574	for voting for or against the proposition: "The implementation of
575	575	the plan for (operation/joint operation) of a fire department"; or
576	576	"The plan and contract to provide fire-fighting services for the
577	577	district."]
578	578	(l) A [Notwithstanding the requirements of Subsections
579	579	(a)-(j), a] district providing potable water or sewer service to
580	580	household users may, as part of its billing process, collect from
581	581	its customers a voluntary contribution on behalf of organizations
582	582	providing fire-fighting services to the district. A district that
583	583	chooses to collect a voluntary contribution under this subsection
584	584	must give reasonable notice to its customers that the contribution
585	585	is voluntary. Water and sewer service may not be terminated as a
586	586	result of failure to pay the voluntary contribution.
587	587	(m) If a customer makes a partial payment of a district bill
588	588	for water or sewer service and includes with the payment a voluntary
589	589	contribution for fire-fighting services under Subsection (l), the
590	590	district shall apply the voluntary contribution first to the bill
591	591	for water or sewer service, including any interest or penalties
592	592	imposed. The district shall use any amount remaining for
593	593	fire-fighting services.
594	594	SECTION 21. Section 49.462(1), Water Code, is amended to
595	595	read as follows:
596	596	(1) "Recreational facilities" means parks,
597	597	landscaping, parkways, greenbelts, sidewalks, trails, public
598	598	right-of-way beautification projects, and recreational equipment
599	599	and facilities. The term includes associated street and security
600	600	lighting. The term does not include a minor improvement or
601	601	beautification project to land acquired or to be acquired as part of
602	602	a district's water, sewer, or drainage facilities.
603	603	SECTION 22. Subchapter N, Chapter 49, Water Code, is
604	604	amended by adding Section 49.4641 to read as follows:
605	605	Sec. 49.4641. RECREATIONAL FACILITIES ON SITES ACQUIRED FOR
606	606	WATER, SEWER, OR DRAINAGE FACILITIES. (a) A district may develop
607	607	and maintain recreational facilities on a site acquired for the
608	608	purpose of developing water, sewer, or drainage facilities.
609	609	(b) A district is not required to prorate the costs of a site
610	610	described by Subsection (a) between the primary water, sewer, or
611	611	drainage purpose and any secondary recreational facilities purpose
612	612	if a licensed professional engineer certifies that the site is
613	613	reasonably sized for the intended water, sewer, or drainage
614	614	purpose.
615	615	(c) The engineer may consider the following factors in
616	616	determining the reasonableness of the size of a water, sewer, or
617	617	drainage site:
618	618	(1) the rules, regulations, and design guidelines or
619	619	criteria of a municipality, county, or other entity exercising
620	620	jurisdiction;
621	621	(2) sound engineering principles;
622	622	(3) the impact on adjoining property;
623	623	(4) the availability of sites that meet the
624	624	requirements for the proposed use;
625	625	(5) requirements for sanitary control;
626	626	(6) the need for a buffer zone to mitigate noise or for
627	627	aesthetic purposes;
628	628	(7) benefits to storm water quality; and
629	629	(8) anticipated expansions of facilities resulting
630	630	from:
631	631	(A) future growth and demand for district
632	632	facilities; or
633	633	(B) changes in regulatory requirements.
634	634	SECTION 23. Sections 49.4645(a) and (b), Water Code, are
635	635	amended to read as follows:
636	636	(a) A district all or part of which is located in Bastrop
637	637	County, Bexar County, Waller County, Travis County, Williamson
638	638	County, Harris County, Galveston County, Brazoria County,
639	639	Montgomery County, or Fort Bend County may issue bonds supported by
640	640	ad valorem taxes to pay for the development and maintenance of
641	641	recreational facilities only if the bonds are authorized by a
642	642	majority vote of the [qualified] voters of the district voting in an
643	643	election held for that purpose. The outstanding principal amount
644	644	of bonds, notes, and other obligations issued to finance parks and
645	645	recreational facilities supported by ad valorem taxes [payable from
646	646	any source] may not exceed an amount equal to one percent of the
647	647	value of the taxable property in the district or, if supported by
648	648	contract taxes under Section 49.108, may not exceed an amount equal
649	649	to one percent of the value of the taxable property in the districts
650	650	making payments under the contract as shown by the tax rolls of the
651	651	central appraisal district at the time of the issuance of the bonds,
652	652	notes, and other obligations or an amount greater than the
653	653	estimated cost provided in the park plan under Subsection (b),
654	654	whichever is smaller. To establish the value of the taxable
655	655	property in a district under this section, the district may use an
656	656	estimate of the value provided by the central appraisal district.
657	657	The district may not issue bonds supported by ad valorem taxes to
658	658	pay for the development and maintenance of:
659	659	(1) indoor or outdoor swimming pools; or
660	660	(2) golf courses.
661	661	(b) On or before the 10th day before the first day for early
662	662	voting by personal appearance at [Not later than the 10th day
663	663	before] an election [is] held to authorize the issuance of bonds for
664	664	the development and maintenance of recreational facilities, the
665	665	board shall file in the district office for review by the public a
666	666	park plan covering the land, improvements, facilities, and
667	667	equipment to be purchased or constructed and their estimated cost,
668	668	together with maps, plats, drawings, and data fully showing and
669	669	explaining the park plan. The park plan is not part of the
670	670	proposition to be voted on, [and the park plan] does not create a
671	671	contract with the voters, and may be amended at any time after the
672	672	election held to authorize the issuance of bonds for the
673	673	development and maintenance of recreational facilities provided
674	674	under the plan. The estimated cost stated in the amended park plan
675	675	may not exceed the amount of bonds authorized at that election.
676	676	SECTION 24. Section 51.072, Water Code, is amended to read
677	677	as follows:
678	678	Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. (a) To be
679	679	qualified for election as a director, a person must:
680	680	(1) be a resident of the state;
681	681	(2) [,] own land subject to taxation in the district or
682	682	be a qualified voter in the district; [,] and
683	683	(3) be at least 18 years of age.
684	684	(b) Section 49.052 does not apply to a district governed by
685	685	this chapter whose principal purpose is providing water for
686	686	irrigation.
687	687	SECTION 25. Section 51.335, Water Code, is amended by
688	688	amending Subsection (b) and adding Subsection (c) to read as
689	689	follows:
690	690	(b) The district shall not usurp functions or duplicate a
691	691	service already adequately exercised or rendered by the other
692	692	governmental agency except:
693	693	(1) under a valid contract with the other governmental
694	694	agency; or
695	695	(2) as provided by Subsection (c).
696	696	(c) The district may finance, develop, and maintain
697	697	recreational facilities under Subchapter N, Chapter 49, even if
698	698	similar facilities may be provided by a political subdivision or
699	699	other governmental entity included wholly or partly in the
700	700	district.
701	701	SECTION 26. Section 51.523, Water Code, is amended to read
702	702	as follows:
703	703	Sec. 51.523. BALLOTS. The ballot for an election under this
704	704	subchapter shall be printed to provide for voting for or against
705	705	substantially the proposition: "Designation of the area, issuance
706	706	of bonds, [and] levy of a tax to retire the bonds, and levy of a
707	707	maintenance tax."
708	708	SECTION 27. Section 51.527, Water Code, is amended by
709	709	adding Subsection (c) to read as follows:
710	710	(c) After bonds issued for the defined area or designated
711	711	property are fully paid or defeased, the board may declare the
712	712	defined area dissolved or may repeal the designation of the
713	713	designated property. After that declaration or repeal, the board
714	714	shall cease imposing any special taxes authorized under the adopted
715	715	tax plan on the property located in the defined area or on the
716	716	designated property.
717	717	SECTION 28. Section 54.016(f), Water Code, is amended to
718	718	read as follows:
719	719	(f) A city may provide in its written consent for the
720	720	inclusion of land in a district that is initially located wholly or
721	721	partly outside the corporate limits of the city that a contract
722	722	("allocation agreement") between the district and the city be
723	723	entered into prior to the first issue of bonds, notes, warrants, or
724	724	other obligations of the district. The allocation agreement shall
725	725	contain the following provisions:
726	726	(1) a method by which the district shall continue to
727	727	exist following the annexation of all territory within the district
728	728	by the city, if the district is initially located outside the
729	729	corporate limits of the city;
730	730	(2) an allocation of the taxes or revenues of the
731	731	district or the city which will assure that, following the date of
732	732	the inclusion of all the district's territory within the corporate
733	733	limits of the city, the total annual ad valorem taxes collected by
734	734	the city and the district from taxable property within the district
735	735	does not exceed an amount greater than the city's ad valorem tax
736	736	upon such property;
737	737	(3) an allocation of governmental services to be
738	738	provided by the city or the district following the date of the
739	739	inclusion of all of the district's territory within the corporate
740	740	limits of the city; and
741	741	(4) such other terms and conditions as may be deemed
742	742	appropriate by the city.
743	743	SECTION 29. Section 54.236, Water Code, is amended to read
744	744	as follows:
745	745	Sec. 54.236. STREET OR SECURITY LIGHTING. (a) Subject to
746	746	the provisions of this section, a district may purchase, install,
747	747	operate, and maintain street lighting or security lighting within
748	748	public utility easements or public rights-of-way or property owned
749	749	by [within the boundaries of] the district.
750	750	(b) A district may not issue bonds supported by ad valorem
751	751	taxes to pay for the purchase, installation, and maintenance of
752	752	street or security lighting, except as authorized by Section 54.234
753	753	or Subchapter N, Chapter 49.
754	754	SECTION 30. Section 54.739, Water Code, is amended to read
755	755	as follows:
756	756	Sec. 54.739. SUBSTITUTING LAND OF EQUAL VALUE. After the
757	757	district is organized and has obtained voter approval for the
758	758	issuance of, or has sold, bonds payable wholly or partly from ad
759	759	valorem taxes [acquires facilities with which to function for the
760	760	purposes for which it was organized, and votes, issues and sells
761	761	bonds for such purposes], land within the district boundaries
762	762	subject to taxation that does not need or utilize the services of
763	763	the district may be excluded and other land not within the
764	764	boundaries of the district may be included within the boundaries of
765	765	the district without impairment of the security for payment of the
766	766	bonds or invalidation of any prior bond election, as provided by
767	767	this section and Sections 54.740 through 54.747.
768	768	SECTION 31. Section 54.744, Water Code, is amended to read
769	769	as follows:
770	770	Sec. 54.744. IMPAIRMENT OF SECURITY. (a) For purposes of
771	771	the board's consideration of the applications, the lands proposed
772	772	for inclusion shall be deemed to be sufficient to avoid an
773	773	impairment of the security for payment of obligations of the
774	774	district if:
775	775	(1) according to the most recent tax roll of the
776	776	district or the most recently certified estimates of taxable value
777	777	from the chief appraiser of the appropriate appraisal district, the
778	778	taxable value of such included lands equals or exceeds the taxable
779	779	value of the excluded lands; and
780	780	(2) either the estimated costs of providing district
781	781	facilities and services to such included lands is equal to or less
782	782	than the estimated costs of providing district facilities and
783	783	services to the excluded lands or any increased estimated costs of
784	784	providing district facilities and services to the included land, as
785	785	determined by the district's engineer, can be amortized at
786	786	prevailing bond interest rates and maturity schedules and the
787	787	prevailing debt service tax rate of the district, as determined by
788	788	the district's professional financial advisor, when applied to the
789	789	increase in taxable value of the included land over the taxable
790	790	value of the excluded land.
791	791	(b) If the district has any[; and (3) the district's]
792	792	outstanding bonds or contract obligations [are] payable in whole or
793	793	in part by a pledge of net revenues from the ownership or operation
794	794	of the district's facilities at the time the board considers an
795	795	application, the lands proposed for inclusion shall be deemed to be
796	796	sufficient to avoid an impairment of the security for payment of
797	797	obligations of the district if[, and] the projected net revenues to
798	798	be derived from the lands to be included during the succeeding
799	799	12-month period, as determined by the district's engineer, equals
800	800	or exceeds the projected net revenues that would otherwise have
801	801	been derived from the lands to be excluded during the same period.
802	802	(c) In this section, the taxable value of included land
803	803	means the market value of the land if, before or contemporaneously
804	804	with the inclusion of the land in the district, the owner of the
805	805	land waives the right to special appraisal of the land as to the
806	806	district under Section 23.20, Tax Code.
807	807	SECTION 32. Section 49.103(g), Water Code, is repealed.
808	808	SECTION 33. The legislature finds that an agreement entered
809	809	into before September 1, 2013, by a municipality and a municipal
810	810	utility district is an allocation agreement only if:
811	811	(1) the district is initially located wholly or partly
812	812	outside the corporate limits of the municipality;
813	813	(2) the agreement strictly complies with the
814	814	requirements of Section 54.016(f), Water Code, as that section
815	815	existed immediately before the effective date of this Act; and
816	816	(3) the agreement is specifically designated by the
817	817	parties to the agreement as an "allocation agreement" under Section
818	818	54.016(f), Water Code.
819	819	SECTION 34. Not later than December 1, 2014, the Texas
820	820	Commission on Environmental Quality shall adopt any rules or
821	821	amendments to existing rules necessary to implement Section
822	822	49.4641, Water Code, as added by this Act.
823	823	SECTION 35. (a) Except as provided by Subsection (b) of
824	824	this section, this Act takes effect September 1, 2013.
825	825	(b) Sections 54.739 and 54.744, Water Code, as amended by
826	826	this Act, take effect immediately if this Act receives a vote of
827	827	two-thirds of all the members elected to each house, as provided by
828	828	Section 39, Article III, Texas Constitution; otherwise, those
829	829	sections take effect September 1, 2013.