HBA-SEB S.B. 1733 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1733 By: Brown Natural Resources 5/14/1999 Engrossed BACKGROUND AND PURPOSE The Texas Constitution provides for the establishment of various general law, or water, districts. The Water Code governs such districts. Amendment of the Water Code may facilitate more efficient operation of these districts. S.B. 1733 amends Chapter 49 (Provisions Applicable to all Districts) to address fire plans, notice to purchasers of property, payment of expenses, vacancies on the governing board of a district, district contracts, prevailing wage rates, adding and excluding land, and prohibition of septic systems. This bill also amends Chapter 54 (Municipal Utility Districts) to address street and security lighting and recreational facilities; amends Chapter 57 (Levee Improvement Districts) regarding the removal of limits on certain works and improvements; and repeals Section 60.350, relating to bonds issued by a navigation district. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 49.102, Water Code, is amended by adding a new Subsection (i) and redesignating existing Subsection (i) as Subsection (j), as follows: (i) Authorizes a district, at a required election, to submit to the qualified voters of the district the proposition of whether a plan as authorized by Section 49.351 (Fire Departments) should be implemented or entered into by the district. (j) Redesignated from existing Subsection (i). SECTION 2. Amends Section 49.105, Water Code, to require that a vacancy, rather than all vacancies, on the governing board of a district (board) be filled for the unexpired term by appointment of the board not later than the 60th day after the date the vacancy occurs. Authorizes that a petition signed by more than 10 percent of the registered voters of the district requesting the board to fill the vacancy, if the board has not filled a vacancy by appointment before the 61st day after the date the vacancy occurs, be presented to the board. Requires that a vacancy, if continued beyond the 90th day after the date the vacancy occurs, be filled by appointment by the Texas Natural Resource Conservation Commission (TNRCC) or by the county commissioners court if the district was created by one, regardless of whether a petition has been presented to the board by the voters. Makes conforming changes. SECTION 3. Amends Section 49.155, Water Code, as follows: Sec. 49.155. New Title: PAYMENT OF EXPENSES. Authorizes the district to pay out of bond proceeds or other available funds of the district all expenses reasonable and necessary to effect the issuance, sale, and delivery of bonds as determined by the board, including but not limited to certain enumerated expenses. Deletes language regarding the repayment of costs and expenses. Makes conforming changes. SECTION 4. Amends Section 49.211, Water Code, by adding Subsection (e), as follows: (e) Authorizes a district that is authorized by law to engage in drainage or flood control activities to include among its land, works, improvements, facilities, plants, equipment, and appliances certain areas and projects associated with drainage or flood control projects of the district. SECTION 5. Amends Section 49.212, Water Code, by amending Subsection (a) and adding Subsection (e), as follows: (a) Includes firefighting activities as provided under Section 49.351 among those facilities or services that a district is authorized to adopt and enforce all necessary charges, fees, or rentals for their provision. (e) Provides that Chapter 2007 (Governmental Action Affecting Private Property Rights), Government Code, does not apply to a tax levied, a standby fee imposed, or a charge, fee, or rental adopted or enforced under this chapter (Provisions Applicable to All Districts) or any chapter of the Water Code. SECTION 6. Amends Section 49.226, Water Code, as follows: Sec. 49.226. New title: SALE OR EXCHANGE OF REAL OR PERSONAL PROPERTY. Provides that Chapter 272 (Sale or Lease of Property by Municipalities, Counties, and Certain Other Local Governments), Local Government Code, does not apply to this section (Sale or Exchange of Surplus Land or Personal Property), rather than Subsection (b). Deletes existing text regarding property not required by the district. Makes conforming changes. SECTION 7. Amends Subchapter H, Chapter 49, Water Code, by adding Section 49.233, as follows: Sec. 49.233. PROHIBITION OF CERTAIN PRIVATE ON-SITE FACILITIES. (a) Authorizes a district that operates a wastewater collection system to serve land within its boundaries, by rule, to prohibit the installation of private on-site wastewater holding or treatment facilities on land within the district. (b) Requires that a district that prohibits such installation agree to reimburse a particular tract the costs of connecting the tract to the district's wastewater collection system if the distance along the public rights-of-way or utility easements from the nearest point of the district's wastewater collection system to the boundary line of the particular tract requiring wastewater collection services is 1,000 feet or more, subject to TNRCC rules regarding reimbursement of those costs. SECTION 8. Amends Section 49.271(c), Water Code, to provide that the payment, performance, and bid bonding requirements of this subsection do not apply to contracts for the purchase of equipment, materials, and machinery not otherwise incorporated into a construction contract. Makes conforming changes. This subsection authorizes a district to adopt minium criteria for qualifications of bidders on its construction contracts for sureties issuing payment and performance bonds. SECTION 9. Amends Sections 49.273(i) and (j), Water Code, as follows: (i) Authorizes the board to approve change orders, if changes in plans or specifications are necessary after the performance of the contract is begun or if it is necessary to decrease or increase the quantity of the work to be performed or of the materials, equipment, or supplies to be furnished. Prohibits the original contract price from being increased by more than10 percent of the aggregate of all change orders, excluding change orders required, rather than authorizing that change orders to contracts 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. (j) Provides that the board is not required to advertise or seek competitive bids for the repair of district facilities if the scope or extent of the repair work cannot be readily ascertained or if the nature of the repair work does not readily lend itself to competitive bidding. Makes conforming changes. SECTION 10. Amends Subchapter I, Chapter 49, Water Code, by adding Section 49.279, as follows: Sec. 49.279. PREVAILING WAGE RATES. Authorizes a district located wholly or partially within one or more municipalities or within the extraterritorial jurisdiction (ETJ) of one or more municipalities to establish its prevailing wage rate for public works by adopting the prevailing wage rate of one of the municipalities or the county in which the district is located. Authorizes a district not located wholly or partially within the ETJ of any municipality to establish the district's prevailing wage rate by adopting the wage rate of the county in which the district is located. SECTION 11. Amends Section 49.304(a), Water Code, relating to clarification in references to Section 49.303 (Excluding Land from District). SECTION 12. Amends Subchapter J, Chapter 49, Water Code, by adding Section 49.315, as follows: Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION. Authorizes a district to add or exclude land in accordance with this subchapter (Annexation or Exclusion of Land) after a district is created by order of TNRCC or another governmental entity or by special Act of the legislature, and before an election is held as required by Section 49.102 (Confirmation and Director Election). Requires that the election to confirm the district required by Section 49.102, if land is added or excluded as provided by this section, be to confirm the district as modified. SECTION 13. Amends Section 49.327, Water Code, to provide that Title 6 (Unclaimed Property), Property Code, does not apply to any personal property held by a district that has not been dissolved by order of TNRCC. SECTION 14. Amends Sections 49.351 (a)-(c) and (g)-(j), Water Code, as follows: (a) Authorizes a district providing potable water or sewer service to household users to issue bonds or impose a mandatory fee, with voter approval, for financing a plan approved in accordance with this section (Fire Departments), including the construction and purchase of buildings, facilities, land, and equipment. (b) Requires a district to jointly operate or jointly fund the operation of a fire department and after complying with Subsections (g), (h), and (i), to provide an adequate system and water supply for fire-fighting purposes. Authorizes the district to purchase land and to contract with a fire department to employ personnel. (c) Requires bonds for financing a plan in accordance with this section to be authorized. Authorizes the bonds to be issued. (g) Authorizes a plan for the establishment and operation of a proposed department to be included in a report otherwise required for the creation of a district. Authorizes the plan to be submitted to TNRCC for approval any time after the creation of the district. Deletes existing text regarding a hearing on the district's creation. Makes conforming and nonsubstantive changes. (h) Requires specific documents to be submitted to the executive director of TNRCC if no plan was approved by TNRCC at the time of the district's creation. Establishes that a plan approved by TNRCC as part of the creation of a district does not require further TNRCC approval unless the district materially alters the plan. Makes a conforming change. (i) Authorizes an election called for the approval of a plan to be held in conjunction with confirmation and director election. Makes conforming changes. (j) Deletes existing text which prohibits funds of the district from being used to establish a fire department, to enter into joint operation of a fire department, or to contract for fire fighting services without the approval of a plan by the electors. Deletes existing text which authorizes the district to use funds for preparation of a plan and any contract. SECTION 15. Amends Section 49.452, Water Code, to include transfers of title to a governmental entity among those transfers of title to which the provisions of this section (Notice to Purchasers) are prohibited from being applicable. _Requires the seller of land located in a district located in wholly or partially in the ETJ of one or more home-rule municipalities, but not within the corporate limits of a municipality, to execute a certain prescribed notice to a purchaser. _Requires the seller of land located in a district located in wholly or partially within the corporate limits of a municipality to execute a certain other prescribed notice to a purchaser. _Requires the seller of land located in a district not located wholly or partly within the corporate limits of a municipality, or in whole or in part in the ETJ of one or more home-rule municipalities, to execute a certain other prescribed notice to a purchaser. _Requires the district, if the law regarding annexation or district dissolution is changed, causing inaccuracies in the content of the notices, to revise the content of the notice to accurately reflect the current law. Makes conforming changes. SECTION 16. Amends Section 54.236, Water Code, to authorize a municipal utility district (MUD) to purchase and install, rather than accept, street lighting or security lighting within the public utility easements or public rights-of-way within the boundaries of the district. Prohibits a MUD from issuing bonds supported by ad valorem taxes to pay for the purchase, installation, and maintenance of street or security lighting, rather than prohibiting a MUD from issuing bonds for the development and maintenance of street or security lighting. Makes conforming changes. SECTION 17. Amends Section 54.772(1), Water Code, to define "recreational facilities" as landscaping, parkways, greenbelts, sidewalks, trails, and public right-of-way beautification projects, in addition to parks and recreational equipment and facilities. SECTION 18. Amends Section 54.774(a), Water Code, to make conforming changes. SECTION 19. Amends Section 57.092(a), Water Code, to remove the "within the district" restriction on works and improvements for which a levee improvement district is authorized to enter into contract and employ persons or means necessary for, in order to accomplish a reclamation plan lawfully adopted for the district. SECTION 20. Amends Subchapter D, Chapter 51, Water Code, by adding Section 51.131, as follows: Sec. 51.131. PENALTY FOR VIOLATION OF REGULATION. Provides that a person who violates a regulation adopted by a district under this chapter (Water Control and Improvement Districts) or other law commits a Class C misdemeanor. SECTION 21. Repealer: Section 60.350, Water Code, relating to bonds issued by a navigation district. SECTION 22. Makes application of SECTION 21 of this Act prospective. SECTION 23. Effective date: September 1, 1999. SECTION 24. Emergency clause.