Texas 2023 - 88th Regular

Texas Senate Bill SB2521 Compare Versions

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1	1	By: Creighton S.B. No. 2521
2	2	(In the Senate - Filed March 10, 2023; March 23, 2023, read
3	3	first time and referred to Committee on Local Government;
4	4	May 11, 2023, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 9, Nays 0; May 11, 2023,
6	6	sent to printer.)
7	7	Click here to see the committee vote
8	8	COMMITTEE SUBSTITUTE FOR S.B. No. 2521 By: Springer
9	9
10	10
11	11	A BILL TO BE ENTITLED
12	12	AN ACT
13	13	relating to the powers, authorities, duties, and responsibilities
14	14	of certain conservation and reclamation districts.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Section 375.022, Local Government Code, is
17	17	amended by adding Subsections (d) and (e) to read as follows:
18	18	(d) The petition may request that a succeeding board of
19	19	directors be elected under Section 375.0645 instead of being
20	20	appointed under Section 375.064.
21	21	(e) On receipt by the commission of a petition that complies
22	22	with this section, the commission shall issue a notice indicating
23	23	that the petition is administratively complete and may conduct a
24	24	hearing on the petition in the manner provided by Section 49.011,
25	25	Water Code, if the commission determines that a hearing is
26	26	necessary.
27	27	SECTION 2. Section 375.025(c), Local Government Code, is
28	28	amended to read as follows:
29	29	(c) If [after the hearing] the commission finds that the
30	30	petition is sufficient and conforms to the requirements of Section
31	31	375.022(c) and that the district is feasible [and necessary] and
32	32	would benefit the public, the commission by order shall make that
33	33	finding and grant the petition. In determining if the project is
34	34	feasible [and necessary] and would benefit the public, the
35	35	commission shall consider:
36	36	(1) the availability of comparable services from other
37	37	systems, including special districts, municipalities, and regional
38	38	authorities; and
39	39	(2) the reasonableness of the proposed public purpose
40	40	projects and services.
41	41	SECTION 3. Subchapter D, Chapter 375, Local Government
42	42	Code, is amended by adding Section 375.0645 to read as follows:
43	43	Sec. 375.0645. ELECTION OF DIRECTORS. (a) This section
44	44	applies only to a district created by order of the commission
45	45	providing for an elected board of directors as requested in the
46	46	petition requesting creation of the district as provided by Section
47	47	375.022(d).
48	48	(b) The commission shall appoint the initial directors
49	49	under Section 375.026, and subsequent directors are elected in the
50	50	manner provided by Subchapter D, Chapter 49, Water Code.
51	51	(c) An elected director is entitled to receive fees of
52	52	office and reimbursement for actual expenses as provided by Section
53	53	49.060, Water Code.
54	54	(d) Sections 375.069 and 375.070 do not apply to an elected
55	55	director.
56	56	(e) Section 49.052(f), Water Code, does not exempt an
57	57	elected director from disqualification under that section.
58	58	(f) Sections 375.064, 375.161, and 375.243 do not apply to a
59	59	district with an elected board.
60	60	SECTION 4. Section 375.065, Local Government Code, is
61	61	amended to read as follows:
62	62	Sec. 375.065. REMOVAL OF DIRECTOR. The governing body of
63	63	the municipality after notice and hearing may remove a director
64	64	appointed by the municipality for misconduct or failure to carry
65	65	out the director's duties on petition by a majority of the remaining
66	66	directors.
67	67	SECTION 5. Section 375.067(a), Local Government Code, is
68	68	amended to read as follows:
69	69	(a) As soon as practicable after a director is appointed or
70	70	elected as provided by this subchapter, the director shall execute
71	71	a $10,000 bond payable to the district and conditioned on the
72	72	faithful performance of the director's duties.
73	73	SECTION 6. Section 375.068, Local Government Code, is
74	74	amended to read as follows:
75	75	Sec. 375.068. OFFICERS. After directors are appointed or
76	76	elected as provided by this subchapter and have qualified by
77	77	executing a bond and taking the oath, they shall organize by
78	78	electing a president, a vice-president, a secretary, and any other
79	79	officers the board considers necessary.
80	80	SECTION 7. Section 375.071, Local Government Code, is
81	81	amended to read as follows:
82	82	Sec. 375.071. QUORUM. (a) One-half of the serving
83	83	directors constitutes a quorum, and a concurrence of a majority of a
84	84	quorum of directors is required for any official action of the
85	85	district.
86	86	(b) If at least two-thirds of the directors execute a
87	87	written consent, a majority of a quorum at a board meeting may [The
88	88	written consent of at least two-thirds of the directors is required
89	89	to] authorize the levy of assessments, the levy of taxes, the
90	90	imposition of impact fees, or the issuance of bonds. A director may
91	91	execute a written consent outside of a board meeting.
92	92	SECTION 8. Section 375.161(b), Local Government Code, is
93	93	amended to read as follows:
94	94	(b) This section does not apply to a tax or assessment that
95	95	is authorized or approved by the voters of the district or to a
96	96	required payment for a service provided by the district, including
97	97	water and sewer services.
98	98	SECTION 9. Section 375.208, Local Government Code, is
99	99	amended to read as follows:
100	100	Sec. 375.208. COMMISSION APPROVAL. A district may not
101	101	issue bonds to provide funding for [must obtain approval of the
102	102	commission as provided by Chapter 54, Water Code, if it issues bonds
103	103	to provide] water, sewage, or drainage facilities unless the
104	104	commission determines that the project is feasible and issues an
105	105	order approving the issuance of the bonds in the manner provided by
106	106	Section 49.181, Water Code. [Except as expressly provided by this
107	107	section and Sections 375.062 and 375.064, a district is not subject
108	108	to the jurisdiction of the commission.]
109	109	SECTION 10. Section 49.011(a), Water Code, is amended to
110	110	read as follows:
111	111	(a) On receipt by the commission of all required
112	112	documentation associated with an application for creation of a
113	113	district by the commission under Chapter 36, 50, 51, 54, 55, 58, 65,
114	114	or 66 of this code or Chapter 375, Local Government Code, the
115	115	commission shall issue a notice indicating that the application is
116	116	administratively complete.
117	117	SECTION 11. Section 49.060, Water Code, is amended by
118	118	amending Subsection (a) and adding Subsection (a-2) to read as
119	119	follows:
120	120	(a) A director is entitled to receive fees of office [of not
121	121	more than $150 a day] for each day the director actually spends
122	122	performing the duties of a director. The board by resolution shall
123	123	set the fees of office. The board may not set the fees of office at
124	124	an amount greater than the amount of the per diem set by the Texas
125	125	Ethics Commission for members of the legislature under Section 24a,
126	126	Article III, Texas Constitution. In this subsection, "performing
127	127	the duties of a director" means substantive performance of the
128	128	management or business of the district, including participation in
129	129	board and committee meetings and other activities involving the
130	130	substantive deliberation of district business and in pertinent
131	131	educational programs. The phrase does not include routine or
132	132	ministerial activities such as the execution of documents,
133	133	self-preparation for meetings, or other activities requiring a
134	134	minimal amount of time.
135	135	(a-2) Notwithstanding Subsection (a-1), an authority
136	136	created by special law, by resolution of the board, may not set the
137	137	annual limit on the fees of office described by that subsection at
138	138	an amount greater than the amount a director would receive for 60
139	139	days of service a year at the maximum daily rate authorized by
140	140	Subsection (a).
141	141	SECTION 12. Section 49.065, Water Code, is amended by
142	142	adding Subsection (d) to read as follows:
143	143	(d) Subsection (b) applies to a personal e-mail address of a
144	144	director only if the district does not make available to the public
145	145	an official e-mail address for the director or the district. In
146	146	this subsection, "personal e-mail address" means an e-mail address
147	147	that is not paid for by district money and is not used primarily for
148	148	the transaction of official business of the district.
149	149	SECTION 13. Section 49.102, Water Code, is amended by
150	150	amending Subsection (j) and adding Subsection (k) to read as
151	151	follows:
152	152	(j) The provisions of this section requiring a confirmation
153	153	election do not apply to a [shall not be applicable to any] district
154	154	exercising the powers of Chapter 375, Local Government Code, or any
155	155	district created by a special Act of the legislature that does not
156	156	require a confirmation election.
157	157	(k) Notwithstanding any other law, if the board determines
158	158	that it is in the best interest of the district and the voters of the
159	159	district for the district to administer an election under this
160	160	section, the district shall establish precincts and designate
161	161	polling locations inside the boundaries of the district.
162	162	SECTION 14. Section 49.106, Water Code, is amended by
163	163	adding Subsection (f) to read as follows:
164	164	(f) The board may submit new bond authorization and
165	165	refunding bond authorization in a single proposition at an
166	166	election.
167	167	SECTION 15. Section 49.181, Water Code, is amended by
168	168	adding Subsection (f-1) to read as follows:
169	169	(f-1) For the purposes of evaluating the financial
170	170	feasibility of a project financed by a bond, the commission shall
171	171	consider:
172	172	(1) a district located wholly or partly in Austin,
173	173	Brazos, Chambers, Grimes, Liberty, Walker, or Wharton County as if
174	174	the district were located in Harris County; and
175	175	(2) a district located wholly or partly in Bastrop,
176	176	Bell, Blanco, Burnet, Caldwell, Gillespie, Kendall, Lee, or Milam
177	177	County as if the district were located in Travis County.
178	178	SECTION 16. Section 49.23602(c), Water Code, is amended to
179	179	read as follows:
180	180	(c) If the board of a district adopts a combined debt
181	181	service, contract, and operation and maintenance tax rate that
182	182	exceeds the district's mandatory tax election rate, an election
183	183	must be held in accordance with the procedures provided by Sections
184	184	26.07(c)-(g), Tax Code, to determine whether to approve the adopted
185	185	tax rate. If the adopted tax rate is not approved at the election,
186	186	the district's tax rate is the voter-approval tax rate. An election
187	187	is not required if the adopted tax rate is less than or equal to the
188	188	voter-approval tax rate.
189	189	SECTION 17. Subchapter J, Chapter 49, Water Code, is
190	190	amended by adding Section 49.316 to read as follows:
191	191	Sec. 49.316. DIVISION OF DISTRICT. (a) The board, on its
192	192	own motion or on receipt of a petition signed by the owner or owners
193	193	of a majority of the assessed value of the real property in the
194	194	district, may adopt an order dividing the district.
195	195	(b) An order dividing a district may create one or more new
196	196	districts and may provide for the continuation of the district.
197	197	(c) An order dividing the district shall:
198	198	(1) name any new district;
199	199	(2) include the metes and bounds description of the
200	200	territory of each of the districts;
201	201	(3) appoint temporary directors for any new district;
202	202	and
203	203	(4) provide for the division of assets and liabilities
204	204	between the districts.
205	205	(d) The board may adopt an order dividing the district
206	206	before or after the date the board holds an election to confirm the
207	207	district's creation.
208	208	(e) The district may be divided only if the district:
209	209	(1) has never issued any bonds; and
210	210	(2) is not imposing ad valorem taxes.
211	211	(f) A new district created by the division of the district
212	212	may not, at the time the new district is created, contain any land
213	213	outside the area of the district at the time of creation.
214	214	(g) On or before the 30th day after the date of adoption of
215	215	an order dividing the district, the district shall file the order
216	216	with the commission and record the order in the real property
217	217	records of each county in which the district is located.
218	218	(h) A new district created by the division of the district
219	219	shall hold a confirmation and directors' election.
220	220	(i) If the creation of a new district is confirmed, the new
221	221	district shall provide the election date and results to the
222	222	commission.
223	223	(j) A new district created by the division of the district
224	224	must hold an election as required by this chapter to obtain voter
225	225	approval before the district may impose a maintenance tax or issue
226	226	bonds payable wholly or partly from ad valorem taxes.
227	227	(k) Municipal consent to the creation of the district and to
228	228	the inclusion of land in the district acts as municipal consent to
229	229	the creation of any new district created by the division of the
230	230	district and to the inclusion of land in the new district.
231	231	(l) The district may continue to rely on confirmation,
232	232	directors', bond, and tax elections held before the division.
233	233	SECTION 18. Subchapter O, Chapter 51, Water Code, is
234	234	amended by adding Section 51.7131 to read as follows:
235	235	Sec. 51.7131. ALTERNATIVE SUBSTITUTION PROCEDURES.
236	236	Notwithstanding this subchapter, a district may substitute land in
237	237	the manner provided by Sections 54.739-54.747.
238	238	SECTION 19. Section 57.053, Water Code, is amended by
239	239	amending Subsection (a) and adding Subsection (d) to read as
240	240	follows:
241	241	(a) A vacancy on an appointed board is filled by the
242	242	appointment of a director by a majority vote of the commissioners
243	243	court. [A director appointed to fill a vacancy must be a person
244	244	qualified for election as a director under Section 57.059.] The
245	245	commissioners court shall appoint directors so that the board will
246	246	always have full membership.
247	247	(d) A director appointed to fill a vacancy must be a person
248	248	qualified to serve as a director under Section 57.059.
249	249	SECTION 20. Section 57.059, Water Code, is amended to read
250	250	as follows:
251	251	Sec. 57.059. QUALIFICATIONS FOR [ELECTED] DIRECTORS. To be
252	252	qualified to serve [for election] as a director, a person must:
253	253	(1) be at least 18 years old;
254	254	(2) own land subject to taxation in the district or be
255	255	a qualified voter in the district; [property taxpaying elector of
256	256	the precinct and county from which he is elected] and
257	257	(3) if the director is elected, be a qualified voter of
258	258	the precinct in the district established by the commissioners court
259	259	under Section 57.058 from which the director is elected [be
260	260	eligible under the constitution and laws of this state to hold the
261	261	office to which he is elected].
262	262	SECTION 21. The following provisions are repealed:
263	263	(1) Sections 375.023 and 375.024, Local Government
264	264	Code;
265	265	(2) Sections 375.025(a) and (b), Local Government
266	266	Code;
267	267	(3) Section 54.030(b), Water Code, as amended by
268	268	Chapter 539 (H.B. 2914), Acts of the 86th Legislature, Regular
269	269	Session, 2019;
270	270	(4) Section 54.032(a), Water Code, as amended by
271	271	Chapter 539 (H.B. 2914), Acts of the 86th Legislature, Regular
272	272	Session, 2019;
273	273	(5) Section 54.033(a), Water Code, as amended by
274	274	Chapter 539 (H.B. 2914), Acts of the 86th Legislature, Regular
275	275	Session, 2019; and
276	276	(6) Section 54.103, Water Code.
277	277	SECTION 22. This Act takes effect immediately if it
278	278	receives a vote of two-thirds of all the members elected to each
279	279	house, as provided by Section 39, Article III, Texas Constitution.
280	280	If this Act does not receive the vote necessary for immediate
281	281	effect, this Act takes effect September 1, 2023.
282	282	* * * * *