S.B. No. 2014
AN ACT
relating to the administration of certain water districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 49.181, Water Code, is amended by
amending Subsection (f) and adding Subsections (i), (j), (k), and
(l) to read as follows:
(f) The commission shall determine whether the project to be
financed by the bonds is feasible and issue an order either
approving or disapproving, as appropriate, the issuance of the
bonds. If the commission determines that an application for the
approval of bonds complies with the requirements for financial
feasibility and the district submitting the application is not
required to comply with rules regarding project completion, the
commission may not disapprove the issuance of bonds for all or a
portion of a project or require that the funding for all or a
portion of a project be escrowed solely on the basis that the
construction of the project is not complete at the time of the
commission's determination. The commission shall retain a copy of
the order and send a copy of the order to the district.
(i) An application for the approval of bonds under this
section may include financing for payment of creation and
organization expenses. Expenses are creation and organization
expenses if the expenses were incurred through the date of the
canvassing of the confirmation election. A commission rule
regarding continuous construction periods or the length of time for
the payment of expenses during construction periods does not apply
to expenses described by this section.
(j) The commission shall approve an application to issue
bonds to finance the costs of spreading and compacting fill to
remove property from the 100-year floodplain made by a levee
improvement district if the application otherwise meets all
applicable requirements for bond applications.
(k) The commission shall approve an application to issue
bonds to finance the costs of spreading and compacting fill to
provide drainage that is made by a municipal utility district or a
district with the powers of a municipal utility district if the
costs are less than the cost of constructing or improving drainage
facilities.
(l) If a district is approved for the issuance of bonds by
the commission to use a certain return flow of wastewater, the
approval applies to subsequent bond authorizations unless the
district seeks approval to use a different return flow of
wastewater.
SECTION 2. Section 49.273(i), Water Code, is amended to
read as follows:
(i) If changes in plans, [or] specifications, or scope of
work are necessary or beneficial to the district, as determined by
the board, after the performance of the contract is begun, or if it
is necessary or beneficial to the district, as determined by the
board, to decrease or increase the quantity of the work to be
performed or of the materials, equipment, or supplies to be
furnished, the board may approve change orders making the changes.
The board may grant authority to an official or employee
responsible for purchasing or for administering a contract to
approve a change order that involves an increase or decrease of
$50,000 or less. The aggregate of the change orders that [may not]
increase the original contract price by more than 25 percent[.
Additional change orders] may be issued only as a result of
unanticipated conditions encountered during construction, repair,
or renovation or changes in regulatory criteria or to facilitate
project coordination with other political entities. A change order
is not subject to the requirements of Subsection (d) or (e).
SECTION 3. Section 49.302(b), Water Code, is amended to
read as follows:
(b) A petition requesting the annexation of a defined area
signed by a majority in value of the owners of land in the defined
area, as shown by the tax rolls of the central appraisal district of
the county or counties in which such area is located, [or signed by
50 landowners if the number of landowners is more than 50,] shall
describe the land by metes and bounds or by lot and block number if
there is a recorded plat of the area and shall be filed with the
secretary of the board.
SECTION 4. Section 54.014, Water Code, is amended to read as
follows:
Sec. 54.014. PETITION. When it is proposed to create a
district, a petition requesting creation shall be filed with the
commission. The petition shall be signed by a majority in value of
the holders of title of the land within the proposed district, as
indicated by the tax rolls of the central appraisal district. [If
there are more than 50 persons holding title to the land in the
proposed district, as indicated by the tax rolls of the central
appraisal district, the petition is sufficient if it is signed by 50
holders of title to the land.]
SECTION 5. Sections 54.016(a), (b), and (f), Water Code,
are amended to read as follows:
(a) No land within the corporate limits of a city or within
the extraterritorial jurisdiction of a city, shall be included in a
district unless the city grants its written consent, by resolution
or ordinance, to the inclusion of the land within the district in
accordance with Section 42.042, Local Government Code, and this
section. The request to a city for its written consent to the
creation of a district, shall be signed by a majority in value of
the holders of title of the land within the proposed district as
indicated by the county tax rolls [or, if there are more than 50
persons holding title to the land in the proposed district as
indicated by the county tax rolls, the request to the city will be
sufficient if it is signed by 50 holders of title to the land in the
district]. A petition for the written consent of a city to the
inclusion of land within a district shall describe the boundaries
of the land to be included in the district by metes and bounds or by
lot and block number, if there is a recorded map or plat and survey
of the area, and state the general nature of the work proposed to be
done, the necessity for the work, and the cost of the project as
then estimated by those filing the petition. If, at the time a
petition is filed with a city for creation of a district, the
district proposes to connect to a city's water or sewer system or
proposes to contract with a regional water and wastewater provider
which has been designated as such by the commission as of the date
such petition is filed, to which the city has made a capital
contribution for the water and wastewater facilities serving the
area, the proposed district shall be designated as a "city service
district." If such proposed district does not meet the criteria for
a city service district at the time the petition seeking creation is
filed, such district shall be designated as a "noncity service
district." The city's consent shall not place any restrictions or
conditions on the creation of a noncity service district as defined
by this chapter [Chapter 54 of the Texas Water Code] other than
those expressly provided in Subsection (e) of this section and
shall specifically not limit the amounts of the district's bonds. A
city may not require annexation as a consent to creation of any
district. A city shall not refuse to approve a district bond issue
for any reason except that the district is not in compliance with
valid consent requirements applicable to the district. If a city
grants its written consent without the concurrence of the applicant
to the creation of a noncity service district containing conditions
or restrictions that the petitioning land owner or owners
reasonably believe exceed the city's powers, such land owner or
owners may petition the commission to create the district and to
modify the conditions and restrictions of the city's consent. The
commission may declare any provision of the consent to be null and
void. The commission may approve the creation of a district that
includes any portion of the land covered by the city's consent to
creation of the district. The legislature may create and may
validate the creation of a district that includes any portion of the
land covered by the city's consent to the creation of the district.
(b) If the governing body of a city fails or refuses to grant
permission for the inclusion of land within its extraterritorial
jurisdiction in a district, including a district created by a
special act of the legislature, within 90 days after receipt of a
written request, a majority of the electors in the area proposed to
be included in the district or the owner or owners of 50 percent or
more of the land to be included may petition the governing body of
the city and request the city to make available to the land the
water or sanitary sewer service contemplated to be provided by the
district.
(f) A city may provide in its written consent for the
inclusion of land in a district that is initially located wholly or
partly outside the corporate limits of the city that a contract
("allocation agreement") between the district and the city be
entered into prior to the first issue of bonds, notes, warrants, or
other obligations of the district. The allocation agreement shall
contain the following provisions:
(1) a method by which the district shall continue to
exist following the annexation of all territory within the district
by the city, if the district is [initially] located outside the
corporate limits of the city at the time the creation of the
district is approved by the district's voters;
(2) an allocation of the taxes or revenues of the
district or the city which will assure that, following the date of
the inclusion of all the district's territory within the corporate
limits of the city, the total annual ad valorem taxes collected by
the city and the district from taxable property within the district
does not exceed an amount greater than the city's ad valorem tax
upon such property;
(3) an allocation of governmental services to be
provided by the city or the district following the date of the
inclusion of all of the district's territory within the corporate
limits of the city; and
(4) such other terms and conditions as may be deemed
appropriate by the city.
SECTION 6. The change in law made to Section 54.016(f),
Water Code, as amended by this Act, applies only to an agreement
entered into on or after the effective date of this Act. An
agreement entered into before the effective date of this Act is
governed by the law in effect on the date the agreement was entered
into, and the former law is continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2014 passed the Senate on
May 11, 2017, by the following vote: Yeas 31, Nays 0;
May 26, 2017, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 27, 2017, House
granted request of the Senate; May 28, 2017, Senate adopted
Conference Committee Report by the following vote: Yeas 31,
Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2014 passed the House, with
amendments, on May 24, 2017, by the following vote: Yeas 146,
Nays 0, two present not voting; May 27, 2017, House granted request
of the Senate for appointment of Conference Committee;
May 28, 2017, House adopted Conference Committee Report by the
following vote: Yeas 144, Nays 2, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor