Texas 2019 - 86th Regular

Texas House Bill HB2590 Compare Versions

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Version 2 (New)

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1		-	H.B. No. 2590
	1	+	By: Biedermann (Senate Sponsor - Creighton) H.B. No. 2590
	2	+	(In the Senate - Received from the House May 6, 2019;
	3	+	May 7, 2019, read first time and referred to Committee on
	4	+	Intergovernmental Relations; May 19, 2019, reported adversely,
	5	+	with favorable Committee Substitute by the following vote: Yeas 7,
	6	+	Nays 0; May 19, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 2590 By: Lucio
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the administration, powers, and duties of water
6	14		districts.
7	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	16		SECTION 1. Sections 42.042(b), (f), (g), and (h), Local
9	17		Government Code, are amended to read as follows:
10	18		(b) If the governing body fails or refuses to give its
11	19		consent for the creation of the political subdivision, including a
12	20		water district previously created by an act of the legislature, on
13	21		mutually agreeable terms within 90 days after the date the
14	22		governing body [it] receives a written request for the consent, a
15	23		majority of the qualified voters of the area of the proposed
16	24		political subdivision and the owners of at least 50 percent of the
17	25		land in the proposed political subdivision may petition the
18	26		governing body to make available to the area the water, sanitary
19	27		sewer services, or both that would be provided by the political
20	28		subdivision.
21	29		(f) If the municipality fails or refuses to give its consent
22	30		to the creation of the political subdivision, including a water
23	31		district previously created by an act of the legislature, or fails
24	32		or refuses to execute a contract providing for the water or sanitary
25	33		sewer services requested within the time limits prescribed by this
26	34		section, the applicant may petition the Texas [Natural Resource
27	35		Conservation] Commission on Environmental Quality for the creation
28	36		of the political subdivision or the inclusion of the land in a
29	37		political subdivision. The commission shall allow creation or
30	38		confirmation of the creation of the political subdivision or
31	39		inclusion of the land in a proposed political subdivision on
32	40		finding that the municipality either does not have the reasonable
33	41		ability to serve or has failed to make a legally binding commitment
34	42		with sufficient funds available to provide water and wastewater
35	43		service adequate to serve the proposed development at a reasonable
36	44		cost to the landowner. The commitment must provide that
37	45		construction of the facilities necessary to serve the land will
38	46		begin within two years and will be substantially completed within
39	47		4-1/2 years after the date the petition was filed with the
40	48		municipality.
41	49		(g) On an appeal taken to the district court from the [Texas
42	50		Natural Resource Conservation Commission's] ruling of the Texas
43	51		Commission on Environmental Quality, all parties to the commission
44	52		hearing must be made parties to the appeal. The court shall hear
45	53		the appeal within 120 days after the date the appeal is filed. If
46	54		the case is continued or appealed to a higher court beyond the
47	55		120-day period, the court shall require the appealing party or
48	56		party requesting the continuance to post a bond or other adequate
49	57		security in the amount of damages that may be incurred by any party
50	58		as a result of the appeal or delay from the commission action. The
51	59		amount of the bond or other security shall be determined by the
52	60		court after notice and hearing. On final disposition, a court may
53	61		award damages, including any damages for delays, attorney's fees,
54	62		and costs of court to the prevailing party.
55	63		(h) A municipality may not unilaterally extend the time
56	64		limits prescribed by this section through the adoption of
57	65		preapplication periods or by passage of any rules, resolutions,
58	66		ordinances, or charter provisions. However, the municipality and
59	67		the petitioner may jointly petition the Texas [Natural Resource
60	68		Conservation] Commission on Environmental Quality to request an
61	69		extension of the time limits.
62	70		SECTION 2. Section 49.107(d), Water Code, is amended to
63	71		read as follows:
64	72		(d) The proposition in an operation and maintenance tax
65	73		election may be for a specific maximum rate or for an unlimited
66	74		rate. The ballot for an operation and maintenance tax election
67	75		shall be printed to provide for voting for or against the
68	76		proposition: "An Operation and Maintenance Tax" and either "Not to
69	77		exceed ______ ($______) Per One Hundred Dollars ($100) Valuation of
70	78		Taxable Property" or "At an Unlimited Rate," as applicable. The
71	79		ballot may describe the general purpose and state the
72	80		constitutional authorization of the operation and maintenance tax.
73	81		SECTION 3. Section 49.351(a), Water Code, is amended to
74	82		read as follows:
75	83		(a) A district providing potable water or sewer services or
76	84		facilities [service to household users] may, separately or jointly
77	85		with another district, municipality, or other political
78	86		subdivision, establish, operate, and maintain, finance with ad
79	87		valorem taxes, mandatory fees, or voluntary contributions, and
80	88		issue bonds for a fire department to perform all fire-fighting
81	89		services within the district as provided in this subchapter and may
82	90		provide for the construction and purchase of necessary buildings,
83	91		facilities, land, and equipment and the provision of an adequate
84	92		water supply.
85	93		SECTION 4. Section 54.022, Water Code, is amended to read as
86	94		follows:
87	95		Sec. 54.022. TEMPORARY DIRECTORS. (a) If the commission
88	96		grants the petition, it shall appoint five temporary directors to
89	97		serve until permanent directors are elected.
90	98		(b) Except as provided by Subsection (c), a majority of
91	99		temporary directors appointed under Subsection (a) must be
92	100		residents of:
93	101		(1) the county in which the district is located;
94	102		(2) a county adjacent to the county described by
95	103		Subdivision (1); or
96	104		(3) if the district is located in a county that is in a
97	105		metropolitan statistical area designated by the United States
98	106		Office of Management and Budget or its successor agency, a county in
99	107		the same metropolitan statistical area as the county in which the
100	108		district is located.
101	109		(c) The commission may appoint temporary directors who do
102	110		not meet the requirements of Subsection (b) if the petition or the
103	111		application accompanying the petition provides that the petitioner
104	112		made reasonable efforts but failed to identify candidates meeting
105	113		those requirements who were willing to serve as temporary
106	114		directors.
107	115		SECTION 5. Section 54.030, Water Code, is amended by
108	116		amending Subsections (b) and (c) and adding Subsections (d) and (e)
109	117		to read as follows:
110	118		(b) The governing body of a district which desires to
111	119		convert into a district operating under this chapter shall, after
112	120		providing notice in accordance with Section 54.032, hold a hearing
113	121		on the question of the conversion of the district [adopt and enter
114	122		in the minutes of the governing body a resolution declaring that in
115	123		its judgment, conversion] into a municipal utility district
116	124		operating under this chapter and under Article XVI, Section 59, of
117	125		the Texas Constitution.
118	126		(c) The governing body of the converting district must
119	127		present a general description of any litigation that is pending
120	128		against the district at the hearing under Subsection (b).
121	129		(d) After the hearing held under Subsection (b), the
122	130		governing body of the converting district may adopt and enter in the
123	131		minutes of the governing body a resolution declaring that in the
124	132		judgment of the governing body, conversion under this section[,]
125	133		would serve the best interest of the district and would be a benefit
126	134		to the land and property included in the district. The resolution
127	135		shall also request that the commission approve [to hold a hearing on
128	136		the question of] the conversion of the district.
129	137		(e) [(c)] A copy of the resolution under Subsection (d)
130	138		shall be:
131	139		(1) filed with the commission; and
132	140		(2) mailed to each state senator and representative
133	141		who represents the area in which the district is located.
134	142		SECTION 6. Section 54.032(a), Water Code, is amended to
135	143		read as follows:
136	144		(a) The governing body of a district described by Section
137	145		54.030(b) shall give notice [Notice] of the conversion hearing
138	146		[shall be given] by publishing notice in a newspaper with general
139	147		circulation in [the county or counties in which] the district [is
140	148		located].
141	149		SECTION 7. Section 54.033(a), Water Code, is amended to
142	150		read as follows:
143	151		(a) After receiving a request for the approval of a
144	152		conversion under Section 54.030(d) [a hearing], if the commission
145	153		finds that conversion of the district into one operating under this
146	154		chapter would serve the best interest of the district and would be a
147	155		benefit to the land and property included in the district, the
148	156		commission [it] shall enter an order making this finding and the
149	157		district shall become a district operating under this chapter and
150	158		no confirmation election is [shall be] required.
151	159		SECTION 8. Section 54.234(a), Water Code, is amended to
152	160		read as follows:
153	161		(a) Any district or any petitioner seeking the creation of a
154	162		district may petition the commission to acquire the power under the
155	163		authority of Article III, Section 52, Texas Constitution, to
156	164		design, acquire, construct, finance, issue bonds for, operate,
157	165		maintain, and convey to this state, a county, or a municipality for
158	166		operation and maintenance, a road [described by Subsection (b)] or
159	167		any improvement in aid of the road.
160	168		SECTION 9. The heading to Section 54.2351, Water Code, is
161	169		amended to read as follows:
162	170		Sec. 54.2351. CONTRACTS WITH OTHER DISTRICTS, [OR] WATER
163	171		SUPPLY CORPORATIONS, OR OTHER RETAIL PUBLIC UTILITIES.
164	172		SECTION 10. Section 54.2351, Water Code, is amended by
165	173		adding Subsection (i) to read as follows:
166	174		(i) In this subsection, "retail public utility" has the
167	175		meaning assigned by Section 13.002. A district may enter into a
168	176		contract with a retail public utility for water or sewer service
169	177		under which the retail public utility may use the district's water
170	178		or sewer system to serve customers located in the district.
171	179		SECTION 11. Section 54.801(a), Water Code, is amended to
172	180		read as follows:
173	181		(a) A district that is composed of at least 1,000 [1,500]
174	182		acres may define areas or designate certain property of the
175	183		district to pay for improvements, facilities, or services that
176	184		primarily benefit that area or property and do not generally and
177	185		directly benefit the district as a whole.
178	186		SECTION 12. Section 54.802(b), Water Code, is amended to
179	187		read as follows:
180	188		(b) The board shall file an engineer's report [adopt a
181	189		proposed plan] for improvements in the defined area or to serve the
182	190		designated property [in the manner provided by Section 49.106].
183	191		SECTION 13. Section 54.805, Water Code, is amended to read
184	192		as follows:
185	193		Sec. 54.805. OBTAINING FUNDS TO CONSTRUCT, ADMINISTER,
186	194		MAINTAIN, AND OPERATE IMPROVEMENTS AND FACILITIES IN DEFINED AREAS
187	195		OR DESIGNATED PROPERTY. On adoption of the proposed plan [plans] as
188	196		provided by this subchapter [Section 54.804 of this code] and voter
189	197		approval of the imposition of taxes and issuance of bonds [the
190	198		plans], the district, under the limitations of this subchapter, may
191	199		apply separately, differently, equitably, and specifically its
192	200		taxing power and lien authority to the defined area or designated
193	201		property to provide money to construct, administer, maintain, and
194	202		operate improvements and facilities that primarily benefit the
195	203		defined area or designated property.
196	204		SECTION 14. Section 54.806(a), Water Code, is amended to
197	205		read as follows:
198	206		(a) Before bonds may be issued or taxes may be imposed for
199	207		the defined area or designated property, the bonds or taxes [the
200	208		adopted plans may become effective, they] must be approved by the
201	209		voters in the defined area or within the boundaries of the
202	210		designated property. The election shall be conducted as provided
203	211		by Section 49.106 for an election to authorize the issuance of bonds
204	212		or Section 49.107 for an election to authorize the imposition of an
205	213		operation and maintenance tax.
206	214		SECTION 15. Section 54.809, Water Code, is amended to read
207	215		as follows:
208	216		Sec. 54.809. ISSUANCE OF BONDS AND IMPOSITION [LEVY] OF TAX
209	217		FOR DEFINED AREA OR DESIGNATED PROPERTY. After approval by the
210	218		voters [the order is recorded], the district may issue [its] bonds
211	219		and impose taxes to provide the specific plant, works, and
212	220		facilities included in the engineer's report [plans adopted] for
213	221		the defined area, or to serve the designated property [and shall
214	222		provide the plant, works, and facilities].
215	223		SECTION 16. Section 54.812(b), Water Code, is amended to
216	224		read as follows:
217	225		(b) The prescribed notice shall be inserted into the general
218	226		notice after the first sentence and shall read substantially as
219	227		follows: "The real property described below, which you are about to
220	228		purchase, may [is] also be located within a defined [designated]
221	229		area of the district and the [your] land may [will] be subject to
222	230		defined area taxes in addition to the [a higher tax than] other
223	231		taxes of [land within] the district. As of this date, the
224	232		additional [Your] rate of taxes within the defined area is [will be
225	233		higher by] $_____ on each $100 of assessed valuation [than land not
226	234		within the designated area]."
227	235		SECTION 17. Section 6901.061(e), Special District Local
228	236		Laws Code, is amended to read as follows:
229	237		(e) The district may not issue bonds or other obligations
230	238		secured wholly or partly by ad valorem taxes to finance a project
231	239		authorized by Subsection (b) unless the issuance is approved by a
232	240		vote of a two-thirds majority of the voters of the defined area to
233	241		be benefited by the project as provided by Subchapter J, Chapter 54,
234	242		Water Code, voting at an election called for that purpose. [The
235	243		simple majority vote approval required by Section 54.808(a), Water
236	244		Code, does not apply to an election under this subsection.]
237	245		SECTION 18. Section 8130.151(b), Special District Local
238	246		Laws Code, is amended to read as follows:
239	247		(b) The district may not issue bonds or other obligations
240	248		secured in whole or in part by ad valorem taxation to finance
241	249		projects authorized by Section 8130.051 unless the issuance is
242	250		approved by a vote of a two-thirds majority of the voters of the
243	251		district or of the defined area to be benefited by the project as
244	252		provided by Subchapter J, Chapter 54, Water Code, voting at an
245	253		election called for that purpose. [The simple majority vote
246	254		approval required by Section 54.808(a), Water Code, does not apply
247	255		to an election under this subsection.]
248	256		SECTION 19. Section 8176.151(b), Special District Local
249	257		Laws Code, is amended to read as follows:
250	258		(b) The district may not issue bonds or other obligations
251	259		secured wholly or partly by ad valorem taxation to finance projects
252	260		authorized by Section 8176.051 unless the issuance is approved by a
253	261		vote of a two-thirds majority of the voters in the district or of
254	262		the defined areas to be benefited by the project as provided by
255	263		Subchapter J, Chapter 54, Water Code, voting at an election called
256	264		for that purpose. [The simple majority vote approval required by
257	265		Section 54.808(a), Water Code, does not apply to an election under
258	266		this subsection.]
259	267		SECTION 20. Section 8198.151(b), Special District Local
260	268		Laws Code, is amended to read as follows:
261	269		(b) The district may not issue bonds or other obligations
262	270		secured wholly or partly by ad valorem taxation to finance projects
263	271		authorized by Section 8198.051 unless the issuance is approved by a
264	272		vote of a two-thirds majority of the voters in the district or of
265	273		the defined areas to be benefited by the project as provided by
266	274		Subchapter J, Chapter 54, Water Code, voting at an election called
267	275		for that purpose. [The simple majority vote approval required by
268	276		Section 54.808(a), Water Code, does not apply to an election under
269	277		this subsection.]
270	278		SECTION 21. Section 8261.151(b), Special District Local
271	279		Laws Code, is amended to read as follows:
272	280		(b) The district may not issue bonds or other obligations to
273	281		finance projects authorized by Section 8261.051 unless the issuance
274	282		is approved by a vote of a two-thirds majority of the district
275	283		voters, or a two-thirds majority of voters in a defined area that
276	284		will benefit from the project, as provided by Subchapter J, Chapter
277	285		54, Water Code, voting at an election called for that purpose. [The
278	286		simple majority vote approval required by Section 54.808(a), Water
279	287		Code, does not apply to an election under this section.]
280	288		SECTION 22. Section 8413.151(b), Special District Local
281	289		Laws Code, is amended to read as follows:
282	290		(b) The district may not issue bonds or other obligations
283	291		secured wholly or partly by ad valorem taxation to finance projects
284	292		authorized by Section 8413.051 unless the issuance is approved by a
285	293		vote of a two-thirds majority of the voters in the district or of
286	294		the defined areas to be benefited by the project as provided by
287	295		Subchapter J, Chapter 54, Water Code, voting at an election called
288	296		for that purpose. [The simple majority vote approval required by
289	297		Section 54.808(a), Water Code, does not apply to an election under
290	298		this subsection.]
291	299		SECTION 23. Section 8467.151(b), Special District Local
292	300		Laws Code, is amended to read as follows:
293	301		(b) The district may not issue bonds or other obligations
294	302		secured wholly or partly by ad valorem taxation to finance projects
295	303		authorized by Section 8467.053 unless the issuance is approved by a
296	304		vote of a two-thirds majority of the voters in the district or of
297	305		the defined areas to be benefited by the project as provided by
298	306		Subchapter J, Chapter 54, Water Code, voting at an election called
299	307		for that purpose. [The simple majority vote approval required by
300	308		Section 54.808(a), Water Code, does not apply to an election under
301	309		this subsection.]
302	310		SECTION 24. Sections 54.234(b), 54.803, 54.804(a), 54.807,
303	311		and 54.808, Water Code, are repealed.
304	312		SECTION 25. Section 54.022, Water Code, as amended by this
305	313		Act, does not affect the entitlement of a temporary director
306	314		serving on the board of directors of a municipal utility district
307	315		under Chapter 54, Water Code, immediately before the effective date
308	316		of this Act to continue to serve as a temporary director for the
309	317		remainder of the director's term.
310	318		SECTION 26. The changes in law made by this Act to Chapter
311	319		54, Water Code, apply only to a water district's conversion into a
312	320		municipal utility district operating under Chapter 54, Water Code,
313	321		occurring on or after the effective date of this Act. A conversion
314	322		that occurs before the effective date of this Act is governed by the
315	323		law in effect on the date the conversion occurred, and the former
316	324		law is continued in effect for that purpose.
317	325		SECTION 27. This Act takes effect September 1, 2019.
318		-	______________________________ ______________________________
319		-	President of the Senate Speaker of the House
320		-	I certify that H.B. No. 2590 was passed by the House on May 3,
321		-	2019, by the following vote: Yeas 140, Nays 0, 2 present, not
322		-	voting; and that the House concurred in Senate amendments to H.B.
323		-	No. 2590 on May 24, 2019, by the following vote: Yeas 89, Nays 51,
324		-	3 present, not voting.
325		-	______________________________
326		-	Chief Clerk of the House
327		-	I certify that H.B. No. 2590 was passed by the Senate, with
328		-	amendments, on May 22, 2019, by the following vote: Yeas 31, Nays
329		-	0.
330		-	______________________________
331		-	Secretary of the Senate
332		-	APPROVED: __________________
333		-	Date
334		-	__________________
335		-	Governor
	326	+	* * * * *