Texas 2013 - 83rd Regular

Texas Senate Bill SB902 Compare Versions

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1	1	By: Fraser S.B. No. 902
2	2	(Callegari)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the operation, powers, and duties of certain water
8	8	districts.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 388.005, Health and Safety Code, is
11	11	amended by adding Subsections (g) and (h) to read as follows:
12	12	(g) Except as provided by Subsection (h), this section does
13	13	not apply to the electricity consumption of a district as defined by
14	14	Section 36.001 or 49.001, Water Code, that relates to the operation
15	15	and maintenance of facilities or improvements for:
16	16	(1) wastewater collection and treatment;
17	17	(2) water supply and distribution; or
18	18	(3) storm water diversion, detention, or pumping.
19	19	(h) At least once every five years, a political subdivision
20	20	that is a district as defined by Section 36.001 or 49.001, Water
21	21	Code, shall for district facilities described by Subsection (g):
22	22	(1) evaluate the consumption of electricity;
23	23	(2) establish goals to reduce the consumption of
24	24	electricity; and
25	25	(3) identify and implement cost-effective energy
26	26	efficiency measures to reduce the consumption of electricity.
27	27	SECTION 2. Section 375.161, Local Government Code, is
28	28	amended to read as follows:
29	29	Sec. 375.161. CERTAIN RESIDENTIAL PROPERTY EXEMPT.
30	30	(a) Except as provided by Subsection (b), the [The] board may not
31	31	impose an impact fee, assessment, tax, or other requirement for
32	32	payment, construction, alteration, or dedication under this
33	33	chapter on single-family detached residential property, duplexes,
34	34	triplexes, and fourplexes [quadraplexes].
35	35	(b) This section does not apply to a tax authorized or
36	36	approved by the voters of the district or a required payment for a
37	37	service provided by the district, including water and sewer
38	38	services.
39	39	SECTION 3. Section 552.014, Local Government Code, is
40	40	amended to read as follows:
41	41	Sec. 552.014. CONTRACTS WITH WATER DISTRICTS OR NONPROFIT
42	42	CORPORATIONS. (a) In this section:
43	43	(1) "Project" means a water supply or treatment
44	44	system, a water distribution system, a sanitary sewage collection
45	45	or treatment system, works or improvements necessary for drainage
46	46	of land, recreational facilities, roads and improvements in aid of
47	47	roads, or facilities to provide firefighting services.
48	48	(2) "Water district"[, "water district"] means a
49	49	district created under Article XVI, Section 59, of the Texas
50	50	Constitution.
51	51	(b) A municipality may enter into a contract with a water
52	52	district or with a corporation organized to be operated without
53	53	profit under which the district or corporation will acquire for the
54	54	benefit of and convey to the municipality, either separately or
55	55	together, one or more projects [a water supply or treatment system,
56	56	a water distribution system, a sanitary sewage collection or
57	57	treatment system, or works or improvements necessary for drainage
58	58	of land in the municipality]. In connection with the acquisition,
59	59	the district or corporation shall improve, enlarge, or extend the
60	60	existing municipal facilities as provided by the contract.
61	61	(c) If the contract provides that the municipality assumes
62	62	ownership of the project [water, sewer, or drainage system] on
63	63	completion of construction or at the time that all debt incurred by
64	64	the district or corporation in the acquisition, construction,
65	65	improvement, or extension of the project [system] is paid in full,
66	66	the municipality may make payments to the district or corporation
67	67	for project [water, sewer, or drainage] services to part or all of
68	68	the residents of the municipality. The contract may provide for
69	69	purchase of the project [system] by the municipality through
70	70	periodic payments to the district or corporation in amounts that,
71	71	together with the net income of the district or corporation, are
72	72	sufficient to pay the principal of and interest on the bonds of the
73	73	district or corporation as they become due. The contract may
74	74	provide:
75	75	(1) that any payments due under this section are
76	76	payable from and are secured by a pledge of a specified part of the
77	77	revenues of the municipality, including revenues from municipal
78	78	sales and use taxes [municipal water system, sewer system, or
79	79	drainage system];
80	80	(2) for the levying of a tax to make payments due under
81	81	this section; or
82	82	(3) that the payments due under this section be made
83	83	from a combination of revenues [from the system] and taxes.
84	84	(d) The contract may provide that the district or
85	85	corporation may use the streets, alleys, and other public ways and
86	86	places of the municipality for project [water, sewer, or drainage]
87	87	purposes for a period that ends at the time the indebtedness of the
88	88	district or corporation is paid in full and the municipality
89	89	acquires title to the project [system] in accordance with this
90	90	section.
91	91	(e) The contract may provide for the operation of the
92	92	project [system] by the municipality, and, if so authorized, the
93	93	municipality may operate the project [system].
94	94	(f) A contract under this section must be authorized by a
95	95	majority vote of the governing body of the municipality.
96	96	(g) This section does not authorize a water district or
97	97	corporation described by Subsection (b) to participate in a project
98	98	that the water district or corporation is not authorized to
99	99	participate in under other law.
100	100	SECTION 4. Section 49.059, Water Code, is amended to read as
101	101	follows:
102	102	Sec. 49.059. [DISQUALIFICATION OF] TAX ASSESSOR AND
103	103	COLLECTOR. (a) A district may employ or contract with any person
104	104	to serve as its tax assessor and collector who is:
105	105	(1) an individual certified as a registered Texas
106	106	assessor-collector; or
107	107	(2) a firm, organization, association, partnership,
108	108	corporation, or other legal entity if an individual certified as a
109	109	registered Texas assessor-collector owns an interest in or is
110	110	employed by the firm, organization, association, partnership,
111	111	corporation, or other legal entity.
112	112	(b) A tax assessor and collector employed or contracted for
113	113	under this section is not required to be a natural person.
114	114	(c) A firm, organization, association, partnership,
115	115	corporation, or other legal entity serving as district tax assessor
116	116	and collector shall give a bond as required by Section 49.057 for a
117	117	natural person.
118	118	(d) No person may serve as tax assessor and collector of a
119	119	district providing potable water or sewer utility services to
120	120	household users if that person:
121	121	(1) is a natural person related within the third
122	122	degree of affinity or consanguinity to any developer of property in
123	123	the district, a member of the board, or the manager, engineer, or
124	124	attorney for the district;
125	125	(2) is or was within two years immediately preceding
126	126	the assumption of assessment and collection duties with the
127	127	district an employee of any developer of property in the district or
128	128	any director, manager, engineer, or attorney for the district;
129	129	(3) owns an interest in or is employed by any
130	130	corporation organized for the purpose of tax assessment and
131	131	collection services, a substantial portion of the stock of which is
132	132	owned by a developer of property within the district or any
133	133	director, manager, engineer, or attorney for the district; or
134	134	(4) is directly or through a corporation developing
135	135	land in the district or is a director, engineer, or attorney for the
136	136	district.
137	137	(e) [(b)] Within 60 days after the board determines a
138	138	relationship or employment exists which constitutes a
139	139	disqualification under Subsection (d) [(a)], it shall replace the
140	140	person serving as tax assessor and collector with a person who would
141	141	not be disqualified.
142	142	(f) [(c)] Any person who wilfully violates the provisions
143	143	of Subsection (d) [(a)] is guilty of a misdemeanor and on conviction
144	144	shall be fined not less than $100 nor more than $1,000.
145	145	(g) [(d)] As used in this section, "developer of property in
146	146	the district" has the same meaning as in Section 49.052(d).
147	147	SECTION 5. Section 49.063, Water Code, is amended to read as
148	148	follows:
149	149	Sec. 49.063. NOTICE OF MEETINGS. (a) Notice of meetings
150	150	of the board shall be given as set forth in the open meetings law,
151	151	Chapter 551, Government Code, except that if a district does not
152	152	have a meeting place within the district, the district shall post
153	153	notice of its meeting at a public place within the district
154	154	specified by the board in a written resolution, rather than at its
155	155	administrative office. The board shall specify such public place
156	156	to be a bulletin board or other place within the district which is
157	157	reasonably available to the public.
158	158	(b) The validity of an action taken at a board meeting is not
159	159	affected by:
160	160	(1) [Neither] failure to provide notice of the meeting
161	161	if the meeting is a regular meeting;
162	162	(2) [nor] an insubstantial defect in notice of the
163	163	[any] meeting; or
164	164	(3) failure of a county clerk to timely or properly
165	165	post or maintain public access to a notice of the meeting if notice
166	166	of the meeting is furnished to the county clerk in sufficient time
167	167	for posting under Section 551.043(a) or 551.045, Government Code
168	168	[shall affect the validity of any action taken at the meeting].
169	169	SECTION 6. Subsections (a), (b), (c), and (h), Section
170	170	49.102, Water Code, are amended to read as follows:
171	171	(a) Before issuing any bonds or other obligations, an
172	172	election shall be held within the boundaries of the proposed
173	173	district on a uniform election date provided by Section 41.001,
174	174	Election Code, to determine if the proposed district shall be
175	175	established and, if the directors of the district are required by
176	176	law to be elected, to elect permanent directors.
177	177	(b) Notice of a confirmation or director election shall
178	178	state the day and place or places for holding the election, the
179	179	propositions to be voted on, and, if applicable, the number of
180	180	directors to be voted on.
181	181	(c) The ballots for a confirmation election shall be printed
182	182	to provide for voting "For District" and "Against District."
183	183	Ballots for a directors election shall provide the names of the
184	184	persons appointed by the governing body who qualified and are
185	185	serving as temporary directors at the time the election is called.
186	186	If the district has received an application by a write-in
187	187	candidate, the [The] ballots shall also have blank places after the
188	188	names of the temporary directors in which a voter may write the
189	189	names of any candidates appearing on the list of write-in
190	190	candidates required by Section 146.031, Election Code [other
191	191	persons for directors].
192	192	(h) Unless otherwise agreed, the elected directors shall
193	193	decide the initial terms of office by lot, with a simple majority of
194	194	the elected directors serving until the second succeeding directors
195	195	election and the remaining elected directors serving until the next
196	196	directors election.
197	197	SECTION 7. Subsections (a) and (b), Section 49.103, Water
198	198	Code, are amended to read as follows:
199	199	(a) Except as provided by Section 49.102, the members of the
200	200	board of a district shall serve staggered [for] four-year terms.
201	201	(b) After confirmation of a district, an [An] election shall
202	202	be held on the uniform election date, provided by Section 41.001,
203	203	[established by the] Election Code, in May of each even-numbered
204	204	year to elect the appropriate number of directors.
205	205	SECTION 8. Subchapter D, Chapter 49, Water Code, is amended
206	206	by adding Section 49.1045 to read as follows:
207	207	Sec. 49.1045. CERTIFICATION OF ELECTION RESULTS IN LESS
208	208	POPULOUS DISTRICTS. (a) This section applies only to a district
209	209	that:
210	210	(1) has 10 or fewer registered voters; and
211	211	(2) holds an election jointly with a county in which
212	212	the district is wholly or partly located.
213	213	(b) A district may provide for an inquiry into and
214	214	certification of the voting results of an election under this
215	215	section if:
216	216	(1) the election results indicate that the number of
217	217	votes cast in the election was greater than the number of registered
218	218	voters in the district;
219	219	(2) the board determines that the election results are
220	220	likely to be disputed in court; and
221	221	(3) the board can determine from the official list of
222	222	registered voters prepared by the county voter registrar or county
223	223	elections administrator for the district election which voters were
224	224	qualified to vote in the district election and can determine from
225	225	the signature roster from the joint election who voted in the joint
226	226	election.
227	227	(c) To certify the district votes, the board by rule shall
228	228	adopt a procedure to determine for each person who signed the
229	229	signature roster as a voter in the joint election:
230	230	(1) whether the person's address on the day of the
231	231	election was in the district; and
232	232	(2) how the person voted in the district election.
233	233	(d) The certified votes are the official election results.
234	234	(e) Certification of the results under this section does not
235	235	preclude the filing of an election contest.
236	236	SECTION 9. Subsections (c) and (d), Section 49.105, Water
237	237	Code, are amended to read as follows:
238	238	(c) If the number of directors is reduced to fewer than a
239	239	majority or if a vacancy continues beyond the 90th day after the
240	240	date the vacancy occurs, the vacancy or vacancies may [shall] be
241	241	filled by appointment by the commission if the district is required
242	242	by Section 49.181 to obtain commission approval of its bonds or by
243	243	the county commissioners court if the district was created by the
244	244	county commissioners court, regardless of whether a petition has
245	245	been presented to the board under Subsection (b). An appointed
246	246	director shall serve for the unexpired term of the director he or
247	247	she is replacing.
248	248	(d) In the event of a failure to elect one or more members of
249	249	the board of a district resulting from the absence of, or failure to
250	250	vote by, the qualified voters in an election held by the district,
251	251	the current members of the board or temporary board holding the
252	252	positions not filled at such election shall be deemed to have been
253	253	elected [reelected] and shall serve an additional term of office,
254	254	or, in the case of a temporary board member deemed elected under
255	255	this subsection, the initial term of office.
256	256	SECTION 10. Section 49.108, Water Code, is amended by
257	257	adding Subsections (g), (h), and (i) to read as follows:
258	258	(g) On or before the first day for early voting by personal
259	259	appearance at an election held to authorize a contract, a
260	260	substantially final form of the contract must be filed in the office
261	261	of the district and must be open to inspection by the public. The
262	262	contract is not required to be attached as an exhibit to the order
263	263	calling the election to authorize the contract.
264	264	(h) A single contract may contain multiple purposes or
265	265	provisions for multiple facilities authorized by one or more
266	266	constitutional provisions. The contract may generally describe the
267	267	facilities to be acquired or financed by the district without
268	268	reference to specific constitutional provisions. A contract
269	269	described by this subsection may be submitted for approval in a
270	270	single proposition at an election.
271	271	(i) A contract between districts to provide facilities or
272	272	services is not required to specify the maximum amount of bonds or
273	273	expenditures authorized under the contract if:
274	274	(1) the contract provides that the service area cannot
275	275	be enlarged without the consent of at least two-thirds of the boards
276	276	of directors of the districts that are:
277	277	(A) included in the service area as proposed to
278	278	be enlarged; or
279	279	(B) served by the facilities or services provided
280	280	in the contract;
281	281	(2) the contract provides that bonds or expenditures,
282	282	payable wholly or partly from contract taxes, are issued or made:
283	283	(A) on an emergency basis; or
284	284	(B) to purchase, construct, acquire, own,
285	285	operate, repair, improve, or extend services or facilities
286	286	necessary to comply with changes in applicable regulatory
287	287	requirements; or
288	288	(3) the contract provides that the bonds or
289	289	expenditures require prior approval by any district that is
290	290	obligated to pay debt service on those bonds or to pay for those
291	291	expenditures wholly or partly with contract taxes.
292	292	SECTION 11. Subchapter D, Chapter 49, Water Code, is
293	293	amended by adding Sections 49.109, 49.110, 49.111, 49.112, and
294	294	49.113 to read as follows:
295	295	Sec. 49.109. AGENT DURING ELECTION PERIOD. The board may
296	296	appoint a person, including a district officer, employee, or
297	297	consultant, to serve as the district's agent under Section 31.123,
298	298	Election Code.
299	299	Sec. 49.110. ELECTION JUDGE. (a) The notice requirements
300	300	for the appointment of a presiding election judge under Section
301	301	32.009, Election Code, do not apply to an election held by a
302	302	district.
303	303	(b) To serve as an election judge in an election held by a
304	304	district, a person must be a registered voter of the county in which
305	305	the district is wholly or partly located. To the extent of any
306	306	conflict with Section 32.051, Election Code, this section controls.
307	307	Sec. 49.111. EXEMPTIONS FROM USE OF ACCESSIBLE VOTING
308	308	SYSTEMS. (a) Notwithstanding Sections 61.012 and 61.013,
309	309	Election Code, a district is exempt from the acquisition, lease, or
310	310	use of an electronic voting system for an election if:
311	311	(1) the election is a confirmation election or an
312	312	election held jointly with a confirmation election on the same date
313	313	and in conjunction with the confirmation election, except for an
314	314	election in which a federal office appears on the ballot;
315	315	(2) the most recently scheduled district directors'
316	316	election was not held, as provided by Section 2.053(b), Election
317	317	Code; or
318	318	(3) fewer than 250 voters voted at the most recently
319	319	held district directors' election.
320	320	(b) A district eligible for the exemption under Subsection
321	321	(a) must publish notice in a newspaper of general circulation in an
322	322	area that includes the district or mail notice to each voter in the
323	323	district regarding the district's intention to hold an election
324	324	without providing a voting station that meets the requirements for
325	325	accessibility under 42 U.S.C. Section 15481(a)(3) on election day
326	326	and during the period for early voting by personal appearance. The
327	327	notice must be published or mailed not later than the later of:
328	328	(1) the 75th day before the date of the election; or
329	329	(2) the date on which the district adopts the order
330	330	calling the election.
331	331	(c) The notice required by Subsection (b) must:
332	332	(1) provide that any voter in the district may request
333	333	the use of a voting station that meets the accessibility
334	334	requirements for voting by a person with a disability; and
335	335	(2) provide information on how to submit such a
336	336	request.
337	337	(d) The district shall comply with a request for an
338	338	accessible voting station if the request is received not later than
339	339	the 45th day before the date of the election.
340	340	Sec. 49.112. CANCELLATION OF ELECTION; REMOVAL OF BALLOT
341	341	MEASURE. Before the first day of early voting by personal
342	342	appearance, the board by order or resolution may cancel an election
343	343	called at the discretion of the district or may remove from the
344	344	ballot a measure included at the discretion of the district. A copy
345	345	of the order or resolution must be posted during the period for
346	346	early voting by personal appearance and on election day at each
347	347	polling place that is used or that would have been used in the
348	348	election.
349	349	Sec. 49.113. NOTICE FOR FILING FOR PLACE ON BALLOT. A
350	350	notice required by Section 141.040, Election Code, must be posted
351	351	at the district's administrative office in the district or at the
352	352	public place established by the district under Section 49.063 of
353	353	this chapter not later than the 30th day before the deadline for a
354	354	candidate to file an application for a place on the ballot of a
355	355	district directors' election.
356	356	SECTION 12. Subsection (c), Section 49.151, Water Code, is
357	357	amended to read as follows:
358	358	(c) The board may allow disbursements of district money to
359	359	be transferred by federal reserve wire system or by electronic
360	360	means. The board by resolution may allow the wire or electronic
361	361	transfers to accounts in the name of the district or accounts not in
362	362	the name of the district.
363	363	SECTION 13. Subsections (a) and (c), Section 49.154, Water
364	364	Code, are amended to read as follows:
365	365	(a) The board may declare an emergency in the matter of
366	366	funds not being available to pay principal of and interest on any
367	367	bonds of the district payable in whole or in part from taxes or to
368	368	meet any other needs of the district and may issue [negotiable] tax
369	369	anticipation notes or [negotiable] bond anticipation notes to
370	370	borrow the money needed by the district without advertising or
371	371	giving notice of the sale. A district's bond anticipation notes or
372	372	tax anticipation notes are negotiable instruments within the
373	373	meaning and purposes of the Business & Commerce Code
374	374	notwithstanding any provision to the contrary in that code. Bond
375	375	anticipation notes and tax anticipation notes shall mature within
376	376	one year of their date.
377	377	(c) Bond anticipation notes may be issued for any purpose
378	378	for which bonds of the district may be issued [have previously been
379	379	voted] or [may be issued] for the purpose of refunding previously
380	380	issued bond anticipation notes. A district may covenant with the
381	381	purchasers of the bond anticipation notes that the district will
382	382	use the proceeds of sale of any bonds in the process of issuance for
383	383	the purpose of refunding the bond anticipation notes, in which case
384	384	the board will be required to use the proceeds received from sale of
385	385	the bonds in the process of issuance to pay principal, interest, or
386	386	redemption price on the bond anticipation notes.
387	387	SECTION 14. Subsection (a), Section 49.181, Water Code, is
388	388	amended to read as follows:
389	389	(a) A district may not issue bonds to finance a project for
390	390	which the commission has adopted rules requiring review and
391	391	approval unless the commission determines that the project [to be
392	392	financed by the bonds] is feasible and issues an order approving the
393	393	issuance of the bonds. This section does not apply to:
394	394	(1) refunding bonds if the commission issued an order
395	395	approving the issuance of the bonds or notes that originally
396	396	financed the project;
397	397	(2) refunding bonds that are issued by a district
398	398	under an agreement between the district and a municipality allowing
399	399	the issuance of the district's bonds to refund bonds issued by the
400	400	municipality to pay the cost of financing facilities;
401	401	(3) bonds issued to and approved by the Farmers Home
402	402	Administration, the United States Department of Agriculture, the
403	403	North American Development Bank, or the Texas Water Development
404	404	Board;
405	405	(4) refunding bonds issued to refund bonds described
406	406	by Subdivision (3); or
407	407	(5) bonds issued by a public utility agency created
408	408	under Chapter 572, Local Government Code, any of the public
409	409	entities participating in which are districts if at least one of
410	410	those districts is a district described by Subsection (h)(1)(E).
411	411	SECTION 15. Section 49.194, Water Code, is amended by
412	412	amending Subsections (a), (b), and (c) and adding Subsection (h) to
413	413	read as follows:
414	414	(a) Except as provided by Subsection (h), after [After] the
415	415	board has approved the audit report, it shall submit a copy of the
416	416	report to the executive director for filing within 135 days after
417	417	the close of the district's fiscal year.
418	418	(b) Except as provided by Subsection (h), if [If] the board
419	419	refuses to approve the annual audit report, the board shall submit a
420	420	copy of the report to the executive director for filing within 135
421	421	days after the close of the district's fiscal year, accompanied by a
422	422	statement from the board explaining the reasons for its failure to
423	423	approve the report.
424	424	(c) Copies of the audit report, the annual financial
425	425	dormancy affidavit, or annual financial report described in
426	426	Sections 49.197 and 49.198 shall be filed annually in the office of
427	427	the district.
428	428	(h) A special water authority shall submit a copy of the
429	429	audit report to the executive director for filing not later than the
430	430	160th day after the date the special water authority's fiscal year
431	431	ends.
432	432	SECTION 16. Section 49.212, Water Code, is amended by
433	433	amending Subsection (d) and adding Subsections (d-1) and (d-2) to
434	434	read as follows:
435	435	(d) Notwithstanding any provision of law to the contrary, a
436	436	district that charges a fee that is an impact fee as described in
437	437	Section 395.001(4), Local Government Code, must comply with Chapter
438	438	395, Local Government Code. A charge or fee is not an impact fee
439	439	under that chapter if:
440	440	(1) the charge or fee is imposed by a district for
441	441	construction, installation, or inspection of a tap or connection to
442	442	district water, sanitary sewer, or drainage facilities, including
443	443	all necessary service lines and meters, for capacity in storm water
444	444	detention or retention facilities and related storm water
445	445	conveyances, or for wholesale facilities that serve such water,
446	446	sanitary sewer, [or] drainage, or storm water detention or
447	447	retention facilities; and
448	448	(2) the charge or fee:
449	449	(A) [that (i)] does not exceed three times the
450	450	actual [and reasonable] costs to the district for such tap or
451	451	connection;
452	452	(B) [, (ii)] if made to a nontaxable entity for
453	453	retail or wholesale service, does not exceed the actual costs to the
454	454	district for such work and for all facilities that are necessary to
455	455	provide district services to such entity and that are financed or
456	456	are to be financed in whole or in part by tax-supported or revenue
457	457	bonds of the district; [,] or
458	458	(C) is [(iii) if] made by a district for retail or
459	459	wholesale service on land that at the time of platting was not being
460	460	provided with water, [or] wastewater, drainage, or storm water
461	461	detention or retention service by the district[, shall not be
462	462	deemed to be an impact fee under Chapter 395, Local Government
463	463	Code].
464	464	(d-1) Actual costs under Subsections (d)(1) and (d)(2), as
465	465	determined by the board in its reasonable discretion, may include
466	466	nonconstruction expenses attributable to the design, permitting,
467	467	financing, and construction of those facilities, and reasonable
468	468	interest on those costs calculated at a rate not to exceed the net
469	469	effective interest rate on any district bonds issued to finance the
470	470	facilities.
471	471	(d-2) A district may pledge the revenues of the district's
472	472	utility system to pay the principal of or interest on bonds issued
473	473	to construct the capital improvements for which a charge or fee is
474	474	[was] imposed under Subsection (d) [this subsection], and money
475	475	received from the fees shall be considered revenues of the
476	476	district's utility system for purposes of the district's bond
477	477	covenants.
478	478	SECTION 17. Subsection (b), Section 49.2121, Water Code, is
479	479	amended to read as follows:
480	480	(b) A district may:
481	481	(1) accept a credit card for the payment of any fees
482	482	and charges imposed by the district;
483	483	(2) collect a fee[, not to exceed five percent of the
484	484	amount of the fee or charge being paid,] that is reasonably related
485	485	to the expense incurred by the district in processing the payment by
486	486	credit card; and
487	487	(3) collect a service charge for the expense incurred
488	488	by the district in collecting the original fee or charge if the
489	489	payment by credit card is not honored by the credit card company on
490	490	which the funds are drawn.
491	491	SECTION 18. Section 49.216, Water Code, is amended by
492	492	amending Subsection (e) and adding Subsection (f) to read as
493	493	follows:
494	494	(e) Any peace officer who is directly employed by a
495	495	district, before beginning to perform any duties and at the time of
496	496	appointment, must take an oath and execute a bond conditioned on
497	497	faithful performance of such officer's duties in the amount of
498	498	$1,000 payable to the district. The oath and the bond shall be
499	499	filed in the district office.
500	500	(f) A peace officer contracted for by the district,
501	501	individually or through a county, sheriff, constable, or
502	502	municipality, is an independent contractor, and the district is
503	503	responsible for the acts or omissions of the peace officer only to
504	504	the extent provided by law for other independent contractors.
505	505	SECTION 19. Subsections (d) and (e), Section 49.273, Water
506	506	Code, are amended to read as follows:
507	507	(d) For contracts over $75,000 [$50,000], the board shall
508	508	advertise the letting of the contract, including the general
509	509	conditions, time, and place of opening of sealed bids. The notice
510	510	must [shall] be published in one or more newspapers circulated in
511	511	each county in which [part of] the district is located. [If one
512	512	newspaper meets both of these requirements, publication in such
513	513	newspaper is sufficient.] If there are more than four counties in
514	514	the district, notice may be published in any newspaper with general
515	515	circulation in the district. The notice must [shall] be published
516	516	once a week for two consecutive weeks before the date that the bids
517	517	are opened, and the first publication must [shall] be not later than
518	518	the 14th [21st] day before the date of the opening of the sealed
519	519	bids.
520	520	(e) For contracts over $25,000 but not more than $75,000
521	521	[$50,000], the board shall solicit written competitive bids on
522	522	uniform written specifications from at least three bidders.
523	523	SECTION 20. Section 49.351, Water Code, is amended by
524	524	amending Subsections (a), (b), (c), (f), (i), and (l) and adding
525	525	Subsection (m) to read as follows:
526	526	(a) A district providing potable water or sewer service to
527	527	household users may, separately or jointly with another district,
528	528	municipality, or other political subdivision, establish, operate,
529	529	and maintain, finance with ad valorem taxes, mandatory fees, or
530	530	voluntary contributions, and issue bonds for a fire department to
531	531	perform all fire-fighting services within the district as provided
532	532	in this subchapter and may provide for [issue bonds or impose a
533	533	mandatory fee, with voter approval, for financing a plan approved
534	534	in accordance with this section, including] the construction and
535	535	purchase of necessary buildings, facilities, land, and equipment
536	536	and the provision of an adequate water supply.
537	537	(b) After complying with the requirements of this section
538	538	[approval of the district electors of a plan to operate, jointly
539	539	operate, or jointly fund the operation of a fire department, and
540	540	after complying with Subsections (g), (h), and (i)], the district
541	541	or districts shall provide an adequate system and water supply for
542	542	fire-fighting purposes, may purchase necessary land, may construct
543	543	and purchase necessary buildings, facilities, and equipment, and
544	544	may employ or contract with a fire department to employ all
545	545	necessary personnel including supervisory personnel to operate the
546	546	fire department.
547	547	(c) For [Bonds for] financing a plan approved in accordance
548	548	with this section, bonds and ad valorem taxes must [shall] be
549	549	authorized and may be issued or imposed[, and a district shall be
550	550	authorized to levy a tax to pay the principal of and interest on
551	551	such bonds,] as provided by law for the authorization and issuance
552	552	of other bonds and the authorization and imposition of other ad
553	553	valorem taxes of the district.
554	554	(f) Before a district imposes an ad valorem tax or issues
555	555	bonds payable wholly or partly from ad valorem taxes to finance the
556	556	establishment of [establishes] a fire department, contracts to
557	557	operate a joint fire department, or contracts with another person
558	558	to perform fire-fighting services within the district, the district
559	559	must comply with [the provisions of] Subsections (g), (h), and (i).
560	560	(i) After approval of a plan by the commission, the district
561	561	shall hold an [submit to the electors of the district at the]
562	562	election to approve the plan, approve bonds payable wholly or
563	563	partly from ad valorem taxes, and [or to] impose ad valorem taxes [a
564	564	mandatory fee] for financing the plan. The election[, or if no
565	565	bonds or fees are to be approved, at an election called for approval
566	566	of the plan, which] may be held in conjunction with an election
567	567	required by Section 49.102[, the proposition of whether or not the
568	568	plan should be implemented or entered into by the district]. [The
569	569	ballots at the election shall be printed, as applicable, to provide
570	570	for voting for or against the proposition: "The implementation of
571	571	the plan for (operation/joint operation) of a fire department"; or
572	572	"The plan and contract to provide fire-fighting services for the
573	573	district."]
574	574	(l) A [Notwithstanding the requirements of Subsections
575	575	(a)-(j), a] district providing potable water or sewer service to
576	576	household users may, as part of its billing process, collect from
577	577	its customers a voluntary contribution on behalf of organizations
578	578	providing fire-fighting services to the district. A district that
579	579	chooses to collect a voluntary contribution under this subsection
580	580	must give reasonable notice to its customers that the contribution
581	581	is voluntary. Water and sewer service may not be terminated as a
582	582	result of failure to pay the voluntary contribution.
583	583	(m) If a customer makes a partial payment of a district bill
584	584	for water or sewer service and includes with the payment a voluntary
585	585	contribution for fire-fighting services under Subsection (l), the
586	586	district shall apply the voluntary contribution first to the bill
587	587	for water or sewer service, including any interest or penalties
588	588	imposed. The district shall use any amount remaining for
589	589	fire-fighting services.
590	590	SECTION 21. Subdivision (1), Section 49.462, Water Code, is
591	591	amended to read as follows:
592	592	(1) "Recreational facilities" means parks,
593	593	landscaping, parkways, greenbelts, sidewalks, trails, public
594	594	right-of-way beautification projects, and recreational equipment
595	595	and facilities. The term includes associated street and security
596	596	lighting. The term does not include a minor improvement or
597	597	beautification project to land acquired or to be acquired as part of
598	598	a district's water, sewer, or drainage facilities.
599	599	SECTION 22. Subchapter N, Chapter 49, Water Code, is
600	600	amended by adding Section 49.4641 to read as follows:
601	601	Sec. 49.4641. RECREATIONAL FACILITIES ON SITES ACQUIRED FOR
602	602	WATER, SEWER, OR DRAINAGE FACILITIES. (a) A district may develop
603	603	and maintain recreational facilities on a site acquired for the
604	604	purpose of developing water, sewer, or drainage facilities.
605	605	(b) A district is not required to prorate the costs of a site
606	606	described by Subsection (a) between the primary water, sewer, or
607	607	drainage purpose and any secondary recreational facilities purpose
608	608	if a licensed professional engineer certifies that the site is
609	609	reasonably sized for the intended water, sewer, or drainage
610	610	purpose.
611	611	(c) The engineer may consider the following factors in
612	612	determining the reasonableness of the size of a water, sewer, or
613	613	drainage site:
614	614	(1) the rules, regulations, and design guidelines or
615	615	criteria of a municipality, county, or other entity exercising
616	616	jurisdiction;
617	617	(2) sound engineering principles;
618	618	(3) the impact on adjoining property;
619	619	(4) the availability of sites that meet the
620	620	requirements for the proposed use;
621	621	(5) requirements for sanitary control;
622	622	(6) the need for a buffer zone to mitigate noise or for
623	623	aesthetic purposes;
624	624	(7) benefits to storm water quality; and
625	625	(8) anticipated expansions of facilities resulting
626	626	from:
627	627	(A) future growth and demand for district
628	628	facilities; or
629	629	(B) changes in regulatory requirements.
630	630	SECTION 23. Subsections (a) and (b), Section 49.4645, Water
631	631	Code, are amended to read as follows:
632	632	(a) A district all or part of which is located in Bastrop
633	633	County, Bexar County, Waller County, Travis County, Williamson
634	634	County, Harris County, Galveston County, Brazoria County,
635	635	Montgomery County, or Fort Bend County may issue bonds supported by
636	636	ad valorem taxes to pay for the development and maintenance of
637	637	recreational facilities only if the bonds are authorized by a
638	638	majority vote of the [qualified] voters of the district voting in an
639	639	election held for that purpose. The outstanding principal amount
640	640	of bonds, notes, and other obligations issued to finance parks and
641	641	recreational facilities supported by ad valorem taxes [payable from
642	642	any source] may not exceed an amount equal to one percent of the
643	643	value of the taxable property in the district or, if supported by
644	644	contract taxes under Section 49.108, may not exceed an amount equal
645	645	to one percent of the value of the taxable property in the districts
646	646	making payments under the contract as shown by the tax rolls of the
647	647	central appraisal district at the time of the issuance of the bonds,
648	648	notes, and other obligations or an amount greater than the
649	649	estimated cost provided in the park plan under Subsection (b),
650	650	whichever is smaller. To establish the value of the taxable
651	651	property in a district under this section, the district may use an
652	652	estimate of the value provided by the central appraisal district.
653	653	The district may not issue bonds supported by ad valorem taxes to
654	654	pay for the development and maintenance of:
655	655	(1) indoor or outdoor swimming pools; or
656	656	(2) golf courses.
657	657	(b) On or before the 10th day before the first day for early
658	658	voting by personal appearance at [Not later than the 10th day
659	659	before] an election [is] held to authorize the issuance of bonds for
660	660	the development and maintenance of recreational facilities, the
661	661	board shall file in the district office for review by the public a
662	662	park plan covering the land, improvements, facilities, and
663	663	equipment to be purchased or constructed and their estimated cost,
664	664	together with maps, plats, drawings, and data fully showing and
665	665	explaining the park plan. The park plan is not part of the
666	666	proposition to be voted on, [and the park plan] does not create a
667	667	contract with the voters, and may be amended at any time after the
668	668	election held to authorize the issuance of bonds for the
669	669	development and maintenance of recreational facilities provided
670	670	under the plan. The estimated cost stated in the amended park plan
671	671	may not exceed the amount of bonds authorized at that election.
672	672	SECTION 24. Section 51.072, Water Code, is amended to read
673	673	as follows:
674	674	Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. (a) To be
675	675	qualified for election as a director, a person must:
676	676	(1) be a resident of the state;
677	677	(2) [,] own land subject to taxation in the district or
678	678	be a qualified voter in the district; [,] and
679	679	(3) be at least 18 years of age.
680	680	(b) Section 49.052 does not apply to a district governed by
681	681	this chapter whose principal purpose is providing water for
682	682	irrigation.
683	683	SECTION 25. Section 51.335, Water Code, is amended by
684	684	amending Subsection (b) and adding Subsection (c) to read as
685	685	follows:
686	686	(b) The district shall not usurp functions or duplicate a
687	687	service already adequately exercised or rendered by the other
688	688	governmental agency except:
689	689	(1) under a valid contract with the other governmental
690	690	agency; or
691	691	(2) as provided by Subsection (c).
692	692	(c) The district may finance, develop, and maintain
693	693	recreational facilities under Subchapter N, Chapter 49, even if
694	694	similar facilities may be provided by a political subdivision or
695	695	other governmental entity included wholly or partly in the
696	696	district.
697	697	SECTION 26. Section 51.523, Water Code, is amended to read
698	698	as follows:
699	699	Sec. 51.523. BALLOTS. The ballot for an election under this
700	700	subchapter shall be printed to provide for voting for or against
701	701	substantially the proposition: "Designation of the area, issuance
702	702	of bonds, [and] levy of a tax to retire the bonds, and levy of a
703	703	maintenance tax."
704	704	SECTION 27. Section 51.527, Water Code, is amended by
705	705	adding Subsection (c) to read as follows:
706	706	(c) After bonds issued for the defined area or designated
707	707	property are fully paid or defeased, the board may declare the
708	708	defined area dissolved or may repeal the designation of the
709	709	designated property. After that declaration or repeal, the board
710	710	shall cease imposing any special taxes authorized under the adopted
711	711	tax plan on the property located in the defined area or on the
712	712	designated property.
713	713	SECTION 28. Subsection (f), Section 54.016, Water Code, is
714	714	amended to read as follows:
715	715	(f) A city may provide in its written consent for the
716	716	inclusion of land in a district that is initially located wholly or
717	717	partly outside the corporate limits of the city that a contract
718	718	("allocation agreement") between the district and the city be
719	719	entered into prior to the first issue of bonds, notes, warrants, or
720	720	other obligations of the district. The allocation agreement shall
721	721	contain the following provisions:
722	722	(1) a method by which the district shall continue to
723	723	exist following the annexation of all territory within the district
724	724	by the city, if the district is initially located outside the
725	725	corporate limits of the city;
726	726	(2) an allocation of the taxes or revenues of the
727	727	district or the city which will assure that, following the date of
728	728	the inclusion of all the district's territory within the corporate
729	729	limits of the city, the total annual ad valorem taxes collected by
730	730	the city and the district from taxable property within the district
731	731	does not exceed an amount greater than the city's ad valorem tax
732	732	upon such property;
733	733	(3) an allocation of governmental services to be
734	734	provided by the city or the district following the date of the
735	735	inclusion of all of the district's territory within the corporate
736	736	limits of the city; and
737	737	(4) such other terms and conditions as may be deemed
738	738	appropriate by the city.
739	739	SECTION 29. Section 54.236, Water Code, is amended to read
740	740	as follows:
741	741	Sec. 54.236. STREET OR SECURITY LIGHTING. (a) Subject to
742	742	the provisions of this section, a district may purchase, install,
743	743	operate, and maintain street lighting or security lighting within
744	744	public utility easements or public rights-of-way or property owned
745	745	by [within the boundaries of] the district.
746	746	(b) A district may not issue bonds supported by ad valorem
747	747	taxes to pay for the purchase, installation, and maintenance of
748	748	street or security lighting, except as authorized by Section 54.234
749	749	or Subchapter N, Chapter 49.
750	750	SECTION 30. Section 54.739, Water Code, is amended to read
751	751	as follows:
752	752	Sec. 54.739. SUBSTITUTING LAND OF EQUAL VALUE. After the
753	753	district is organized and has obtained voter approval for the
754	754	issuance of, or has sold, bonds payable wholly or partly from ad
755	755	valorem taxes [acquires facilities with which to function for the
756	756	purposes for which it was organized, and votes, issues and sells
757	757	bonds for such purposes], land within the district boundaries
758	758	subject to taxation that does not need or utilize the services of
759	759	the district may be excluded and other land not within the
760	760	boundaries of the district may be included within the boundaries of
761	761	the district without impairment of the security for payment of the
762	762	bonds or invalidation of any prior bond election, as provided by
763	763	this section and Sections 54.740 through 54.747.
764	764	SECTION 31. Section 54.744, Water Code, is amended to read
765	765	as follows:
766	766	Sec. 54.744. IMPAIRMENT OF SECURITY. (a) For purposes of
767	767	the board's consideration of the applications, the lands proposed
768	768	for inclusion shall be deemed to be sufficient to avoid an
769	769	impairment of the security for payment of obligations of the
770	770	district if:
771	771	(1) according to the most recent tax roll of the
772	772	district or the most recently certified estimates of taxable value
773	773	from the chief appraiser of the appropriate appraisal district, the
774	774	taxable value of such included lands equals or exceeds the taxable
775	775	value of the excluded lands; and
776	776	(2) either the estimated costs of providing district
777	777	facilities and services to such included lands is equal to or less
778	778	than the estimated costs of providing district facilities and
779	779	services to the excluded lands or any increased estimated costs of
780	780	providing district facilities and services to the included land, as
781	781	determined by the district's engineer, can be amortized at
782	782	prevailing bond interest rates and maturity schedules and the
783	783	prevailing debt service tax rate of the district, as determined by
784	784	the district's professional financial advisor, when applied to the
785	785	increase in taxable value of the included land over the taxable
786	786	value of the excluded land.
787	787	(b) If the district has any[; and (3) the district's]
788	788	outstanding bonds or contract obligations [are] payable in whole or
789	789	in part by a pledge of net revenues from the ownership or operation
790	790	of the district's facilities at the time the board considers an
791	791	application, the lands proposed for inclusion shall be deemed to be
792	792	sufficient to avoid an impairment of the security for payment of
793	793	obligations of the district if[, and] the projected net revenues to
794	794	be derived from the lands to be included during the succeeding
795	795	12-month period, as determined by the district's engineer, equals
796	796	or exceeds the projected net revenues that would otherwise have
797	797	been derived from the lands to be excluded during the same period.
798	798	(c) In this section, the taxable value of included land
799	799	means the market value of the land if, before or contemporaneously
800	800	with the inclusion of the land in the district, the owner of the
801	801	land waives the right to special appraisal of the land as to the
802	802	district under Section 23.20, Tax Code.
803	803	SECTION 32. Subsection (g), Section 49.103, Water Code, is
804	804	repealed.
805	805	SECTION 33. The legislature finds that an agreement entered
806	806	into before September 1, 2013, by a municipality and a municipal
807	807	utility district is an allocation agreement only if:
808	808	(1) the district is initially located wholly or partly
809	809	outside the corporate limits of the municipality;
810	810	(2) the agreement strictly complies with the
811	811	requirements of Subsection (f), Section 54.016, Water Code, as that
812	812	section existed immediately before the effective date of this Act;
813	813	and
814	814	(3) the agreement is specifically designated by the
815	815	parties to the agreement as an "allocation agreement" under
816	816	Subsection (f), Section 54.016, Water Code.
817	817	SECTION 34. Not later than December 1, 2014, the Texas
818	818	Commission on Environmental Quality shall adopt any rules or
819	819	amendments to existing rules necessary to implement Section
820	820	49.4641, Water Code, as added by this Act.
821	821	SECTION 35. (a) Except as provided by Subsection (b) of
822	822	this section, this Act takes effect September 1, 2013.
823	823	(b) Sections 54.739 and 54.744, Water Code, as amended by
824	824	this Act, take effect immediately if this Act receives a vote of
825	825	two-thirds of all the members elected to each house, as provided by
826	826	Section 39, Article III, Texas Constitution; otherwise, those
827	827	sections take effect September 1, 2013.