85R4259 AAF-F By: Gooden H.B. No. 1207 A BILL TO BE ENTITLED AN ACT relating to the powers and duties of the Kaufman County Fresh Water Supply District No. 1-A; providing authority to issue bonds, impose a tax, and levy assessments for roadway purposes. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle B, Title 6, Special District Local Laws Code, is amended by adding Chapter 6916 to read as follows: CHAPTER 6916. KAUFMAN COUNTY FRESH WATER SUPPLY DISTRICT NO. 1-A SUBCHAPTER A. GENERAL PROVISIONS Sec. 6916.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "Director" means a board member. (3) "District" means the Kaufman County Fresh Water Supply District No. 1-A. Sec. 6916.002. NATURE OF DISTRICT. The district is a fresh water supply district created under and essential to accomplish the purposes of Section 52, Article III, and Section 59, Article XVI, Texas Constitution. Sec. 6916.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit. (b) All land and other property included in the district will benefit from the improvements and services to be provided by the district under powers conferred by Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other powers granted under this chapter. (c) The creation of the district is in the public interest and is essential to further the public purposes of: (1) developing and diversifying the economy of the state; (2) eliminating unemployment and underemployment; and (3) developing or expanding transportation and commerce. (d) The district will: (1) promote the health, safety, and general welfare of residents, employers, potential employees, employees, visitors, and consumers in the district, and of the public; (2) provide needed funding for the district to preserve, maintain, and enhance the economic health and vitality of the district territory as a community and business center; and (3) promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic beauty. (e) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, vehicle parking, and street art objects are parts of and necessary components of a street and are considered to be an improvement project that includes a street or road improvement. Sec. 6916.004. APPLICABILITY OF OTHER LAW. Except as otherwise provided by this chapter, the following laws apply to the district: (1) Chapters 49, 51, and 53, Water Code; (2) Chapters 372 and 375, Local Government Code; and (3) Chapter 257, Transportation Code, and other general laws applicable to road districts created under Section 52, Article III, Texas Constitution, to the extent those provisions can apply to the district. Sec. 6916.005. PROHIBITION AGAINST IMPAIRMENT OF DISTRICT. A county in which the district is located or a municipality in whose extraterritorial jurisdiction the district is located may not take any action, including adopting an order, ordinance, or resolution, that: (1) impairs the district's ability to exercise the district's powers under this chapter; or (2) limits the district's ability to finance, construct, or operate the district's water, wastewater, drainage, or road systems. SUBCHAPTER B. POWERS AND DUTIES Sec. 6916.051. AUTHORITY FOR ROAD PROJECTS. Under Section 52, Article III, Texas Constitution, the district may design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, concreted, or paved roads, or improvements in aid of or incidental to those roads, including: (1) bridges; (2) drainage; (3) landscaping; (4) lights, signs, and signals; (5) public safety facilities; (6) retaining walls; and (7) pedestrian ways, sidewalks, and trails. Sec. 6916.052. JOINT ROAD PROJECTS. (a) A district may contract with a state agency, political subdivision, or corporation created under Chapter 431, Transportation Code, for a joint road project. (b) The contract may: (1) provide for joint payment of project costs; and (2) require the state agency, political subdivision, or corporation to design, construct, or improve a project, including landscaping, as provided by the contract. Sec. 6916.053. EXEMPTION FROM CERTAIN SUPERVISION AND APPROVAL REQUIREMENTS. (a) The district may reimburse expenditures as provided by Sections 257.003(a) and (b), Transportation Code, without the approval required by Section 257.003(c), Transportation Code. (b) The district may reimburse expenditures for a project constructed or acquired under Section 6916.051 or 6916.052 without the approval required by Section 49.107(f), Water Code. (c) Sections 49.181 and 49.182, Water Code, and Section 375.208, Local Government Code, do not apply to: (1) a project authorized by Section 6916.051 or 6916.052; (2) bonds issued for a project described by Subdivision (1); (3) bonds issued by the district secured by assessment revenue; or (4) bonds issued under Chapters 372 and 375, Local Government Code. Sec. 6916.054. ROAD CONTRACTS. The district may enter into a contract for a road project in the same manner as a road district under Chapter 257, Transportation Code, except that competitive bidding for a road project contract is governed by Subchapter I, Chapter 49, Water Code. Sec. 6916.055. DIVISION OF DISTRICT. (a) The district may be divided into two or more new districts by election only if the district: (1) has no outstanding bonded debt; and (2) is not imposing ad valorem taxes. (b) The division procedure is prescribed by Sections 53.030 through 53.041, Water Code. (c) A new district created by the division of the district has all the powers and duties of the district. SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS Sec. 6916.101. ASSESSMENTS. (a) The district may impose an assessment on property in the district to pay for an improvement project authorized by Section 6916.051 or 6916.052 or an obligation described by Section 6916.151 in the manner provided for: (1) a district under Subchapters A, E, and F, Chapter 375, Local Government Code; or (2) a municipality or county under Subchapter A, Chapter 372, Local Government Code. (b) The district may impose an assessment for any district operation and maintenance or authorized improvement or supplemental service, including public safety services, in the manner provided for: (1) a district under Subchapters A, E, and F, Chapter 375, Local Government Code; or (2) a municipality or county under Subchapter A, Chapter 372, Local Government Code. (c) The district may not impose an assessment on a municipality, county, or other political subdivision. Sec. 6916.102. RESIDENTIAL PROPERTY NOT EXEMPT. Section 375.161, Local Government Code, does not apply to the district. SUBCHAPTER D. BONDS Sec. 6916.151. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. (a) Subject to Subsections (c) and (d), the district may issue bonds or other obligations to finance the construction, maintenance, or operation of road projects authorized by Section 6916.051 or 6916.052. (b) The district may issue by competitive bidding or negotiated sale bonds or other obligations payable wholly or partly from ad valorem taxes, assessments, impact fees, revenue, contract revenue, grants, or other district money, or any combination of those sources, to pay for a road project. (c) The district may not issue bonds or other obligations payable wholly or partly from ad valorem taxes to finance a road project unless the issuance is approved by a vote of a two-thirds majority of the district voters voting at an election held for that purpose. (d) At the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes may not exceed one-fourth of the assessed value of the real property in the district. SECTION 2. (a) The following are validated and confirmed in all respects: (1) the creation of the Kaufman County Fresh Water Supply District No. 1-A; and (2) any act or proceeding of the district, including an election, not excepted by this section and taken not more than three years before the effective date of this Act, effective as of the date on which the act or proceeding occurred. (b) This section does not apply to: (1) an act, proceeding, director, other official, bond, or other obligation the validity of which or of whom is the subject of litigation that is pending on the effective date of this Act; or (2) an act or proceeding that, under a statute of this state or the United States, was a misdemeanor or felony at the time the act or proceeding occurred. SECTION 3. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017.