By: Jetton H.B. No. 2815       A BILL TO BE ENTITLED   AN ACT   relating to the powers, authorities, duties, and responsibilities   of water districts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION __.  Section 57.059, Water Code, is amended to read   as follows:          Sec. 57.059.  QUALIFICATIONS FOR [ELECTED] DIRECTORS. To be   qualified [for election] as a director, a person must be at least 18   years old, either own land subject to taxation in the district or be   a qualified voter within the district, [property taxpaying elector   of the precinct and county from which he is elected] and, in the   case of an elected director, be a qualified voter within the   precinct within the district established by the commissioners court   in accordance with Section 57.058 [eligible under the constitution   and laws of this state to hold the office to which he is elected].          SECTION __.  Section 57.053, Water Code, is amended by   amending subsection (a) and adding subsection (d) to read as   follows:          (a)  A vacancy on an appointed board is filled by the   appointment of a director by a majority vote of the commissioners   court. [A director appointed to fill a vacancy must be a person   qualified for election as a director under Section 57.059.] The   commissioners court shall appoint directors so that he board will   always have full membership.          (d)  A director appointed to fill a vacancy must be a person   qualified as a director under Section 57.059.          SECTION ____.  Subchapter J, Chapter 49, Water Code, is   amended by adding Section 49.316, Water Code, to read as follows:          Sec. 49.316.  DIVISION OF DISTRICT. (a) The board, on its   own motion or on receipt of a petition signed by the owner or owners   of a majority of the assessed value of the real property in the   district, may adopt an order dividing the district.          (b)  An order dividing a district may create one or more new   districts and may provide for the continuation of the district.          (c)  An order dividing the district shall:                (1)  name any new district;                (2)  include the metes and bounds description of the   territory of each of the districts;                (3)  appoint temporary directors for any new district;   and                (4)  provide for the division of assets and liabilities   between the districts.          (d)  The board may adopt an order dividing the district   before or after the date the board holds an election to confirm the   district's creation.          (e)  The district may be divided only if the district:                (1)  has never issued any bonds; and                (2)  is not imposing ad valorem taxes.          (f)  A new district created by the division of the district   may not, at the time the new district is created, contain any land   outside the area of the district at the time of creation.          (g)  On or before the 30th day after the date of adoption of   an order dividing the district, the district shall file the order   with the commission and record the order in the real property   records of each county in which the district is located.          (h)  A new district created by the division of the district   shall hold a confirmation and directors' election.          (j)  If the creation of a new district is confirmed, the new   district shall provide the election date and results to the   commission.          (k)  Any new district created by the division of the district   must hold an election as required by this chapter to obtain voter   approval before the district may impose a maintenance tax or issue   bonds payable wholly or partly from ad valorem taxes.          (l)  The district may continue to rely on confirmation,   directors', bond, and tax elections held prior to the division.          (m)  Municipal consent to the creation of the district and to   the inclusion of land in the district acts as municipal consent to   the creation of any new district created by the division of the   district and to the inclusion of land in the new district.          SECTION __.  Subsection 49.011(a), Water Code, is amended to   read as follows:          (a)  On receipt by the commission of all required   documentation associated with an application for creation of a   district by the commission under Chapter 36, 50, 51, 54, 55, 58, 65,   or 66, or Chapter 375, Local Government Code, the commission shall   issue a notice indicating that the application is administratively   complete.          SECTION __.  Section 49.060, Water Code, is amended by   amending subsections (a) and (a-1) and adding subsections (a-2) and   (a-3) to read as follows:          (a)  A director is entitled to receive fees of office [of not   more than $150 a day] for each day the director actually spends   performing the duties of a director. The daily fee of office shall   be set by resolution of the board and may not be more than the   legislative per diem as set by the Texas Ethics Commission. In this   subsection, "performing the duties of a director" means substantive   performance of the management or business of the district,   including participation in board and committee meetings and other   activities involving the substantive deliberation of district   business and in pertinent educational programs. The phrase does not   include routine or ministerial activities such as the execution of   documents, self-preparation for meetings, or other activities   requiring a minimal amount of time.          (a-2)  Notwithstanding subsection (a-1), an authority   created by special law that implements a groundwater reduction plan   and is a wholesale water supplier may not set the annual limit at an   amount greater than the amount that would be produced by 60 days of   service per year at the maximum daily rate.          SECTION ____.  Subsection 49.065 is amended by adding   subsection (d) to read as follows:          (d)  Subsection (b) does not apply to a personal email   address of a director. In this subsection, a "personal email   address" means an email address not paid for by public funds and   not primarily used in the transaction of official business as long   as an official email address is made publicly available for the   director or for the governmental body.          SECTION __.  Section 49.102, Water Code, is amended by   amending subsection (j) and by adding subsection (k) to read as   follows:          (j)  The provisions of this section requiring a confirmation   election shall not be applicable to any district exercising the   powers of Chapter 375, Local Government Code, or any district   created by a special Act of the legislature that does not require a   confirmation election.          (k)  The board shall consider the conduct and administration   of the confirmation election and the other district elections held   on the same date. If the board determines that it is in the best   interest of the district and voters of the district for the district   to administer the elections, the district shall establish precincts   and designate polling locations inside the district's boundaries,   notwithstanding any other law.          SECTION ____.  Section 49.106, Water Code, is amended to add   subsection (f) to read as follows:          (f)  The board may submit new money bond authorization and   refunding bond authorization in a single proposition at an   election.          SECTION ____.  Subchapter H, Chapter 49, Water Code, is   amended by adding Section 49.2225 to read as follows:          Sec. 49.2225.  LIMITATION ON USE OF EMINENT DOMAIN. A   district operating under Chapters 51, 53, and 54 may not exercise   the power of eminent domain outside the district boundaries to   acquire:                (1)  a site for a water treatment plant or a wastewater   treatment plant, unless the engineer for the district makes a   recommendation, based on the engineer's professional judgment, to   acquire the site;                (2)  a site for a park or recreational facility, as   defined by Section 49.462;                (3)  an exclusive easement through a county regional   park; or                (4)  a site, right of way, or easement for a road   project.          SECTION __.  Section 49.23602, Water Code, is amended by   adding subsection (c-1) to read as follows:          (c-1)  An election under subsection (c) is not required if   the adopted tax rate is less than or equal to the voter-approval tax   rate.          SECTION ____.  Subchapter O, Chapter 51, Water Code, is   amended by adding Section 51.7131 to read as follows:          Sec. 51.7131.  ALTERNATIVE SUBSTITUTION PROCEDURES. In the   alternative to the provisions of this subchapter for the   substitution of land within the district, a district may substitute   land in the manner provided by Sections 54.739 through 54.747,   Water Code.          SECTION ____.  Section 51.714, Water Code, is amended to   read as follows:          Sec. 51.714.  ADDING LAND BY PETITION OF LANDOWNER. The   owner of land may file with the board a petition requesting that the   land described by metes and bounds in the petition be included in   the district. Notwithstanding any municipal ordinance, resolution,   or any other statute to the contrary, a municipality may not require   the annexing district or the landowner who is requesting annexation   to obtain the municipality's consent to the district's annexation   of the additional land if, at the time the petition is filed, the   land to be annexed is contiguous to the district and at any time   within the preceding 12 months was not located within an area   designated by ordinance or resolution of the municipality's   governing body as the municipality's water and sewer service area   or corporate limits, and the district has not previously issued any   bonded indebtedness. The land shall be deemed to be contiguous to   the district if it is separated from the district by public land or   right of way. A district may not increase its total land area by   more than 100 percent in any one calendar year under this section. A   municipality's consent shall not be required for the inclusion or   annexation of irrigable land within the boundaries of a district   primarily engaged in providing irrigation service to lands within   its boundaries.          SECTION ____.  Section 54.728, Water Code, is amended to   read as follows:          Sec. 54.728.  CONSOLIDATION OF DISTRICTS. (a) Two or more   districts governed by the provisions of this chapter may   consolidate into one district as provided by Sections 54.729-54.733   of this code.          (b)  One or more districts governed by the provisions of this   chapter and one or more districts governed by the provisions of   Chapter 375, Local Government Code, may consolidate into one   district as provided by this subsection and Sections 54.729- 54.733   of this code. Directors of the consolidated district shall be   elected and serve terms as provided by Section 49.103. The   consolidation agreement may provide that the consolidated district   continue operating with the powers, authorities, duties, and   responsibilities of one of the original districts prior to   consolidation.          SECTION ____.  Section 375.022, Local Government Code, is   amended by adding Subsections (d) and (e) to read as follows:          (d)  A petition may request that succeeding boards be elected   under Section 375.0645 rather than be appointed under Section   375.064.          (e)  The commission shall give notice of an application as   required by Section 49.011, Water Code, and may conduct a hearing on   the application if the commission determines that a hearing is   necessary under Section 49.011, Water Code.          SECTION ____.  Subsection 375.025(c), Local Government Code   is amended to read as follows:          (c)  If [after the hearing] the commission finds that the   petition is sufficient and conforms to the requirements of Section   375,022(c) and that the district is feasible [and necessary] and   would benefit the public, the commission by order shall make that   finding and grant the petition. In determining if the project is   feasible [and necessary] and would benefit the public, the   commission shall consider:                (1)  the availability of comparable services from other   systems, including special districts, municipalities, and regional   authorities; and                (2)  the reasonableness of the proposed public purpose   projects and services.          SECTION ____.  Subchapter D, Chapter 375, Local Government   Code, is amended by adding Section 375.0645 to read as follows:          Sec. 375.0645.  ELECTED DIRECTORS. (a) This section   applies to a district created by order of the commission providing   for an elected board of directors as requested in the petition of   the landowner under Section 375.022.          (b)  The commission shall appoint the initial directors.          (c)  Subsequent directors shall be elected in the manner   provided by Subchapter D, Chapter 49, Water Code.          (d)  A director is entitled to receive fees of office and   reimbursement for actual expenses as provided by Section 49.060,   Water Code. Sections 375.069 and 375.070 do not apply to the board.          (e)  Subsection 49.052(f), Water Code, does not exempt a   director from disqualification under Section 49.052, Water Code.          (f)  Sections 375.064, 375.161 and 375.243 do not apply to   the district.          SECTION ____.  Section 375.065, Local Government Code is   amended to read as follows: REMOVAL OF DIRECTOR. The governing body   of the municipality after notice and hearing may remove a director   appointed by that municipality for misconduct or failure to carry   out the director's duties on petition by a majority of the remaining   directors.          SECTION ____.  Section 375.071, Local Government Code is   amended to read as follows:          (a)  One-half of the serving directors constitutes a quorum,   and a concurrence of a majority of a quorum of directors is required   for any official action of the district.          (b)  The written consent of at least two-thirds of the   directors is required to authorize the levy of assessments, the   levy of taxes, the imposition of impact fees, or the issuance of   bonds, which may be authorized by a simple majority of a quorum at a   board meeting. A director who was not present at a board meeting may   execute a written consent outside of a board meeting.          SECTION ____.  Subsection 375.161(b), Local Government   Code, is amended to read as follows:          (b)  This section does not apply to a tax or assessment, if a   tax is authorized or approved by the voters of the district, or a   required payment for a service provided by the district, including   water and sewer services.          SECTION ____.  Section 375.208, Local Government Code is   amended to read as follows:          A district must obtain approval of the commission to issue   bonds as provided by Section 49.181, [Chapter 54,] Water Code, if   the [it issues] bonds are to provide water, sewage, or drainage   facilities. [Except as expressly provided by this section and   Sections 375.062 and 375.064, a district is not subject to the   jurisdiction of the commission.]          SECTION ____.  The following sections are repealed:          (a)  Sections 375.023 and 375.024 and Subsections 375.025(a)   and (b), Local Government Code;          (b)  Subsection 54.030(b), as amended by Acts 2019, 86th   Leg., R.S., Ch. 539 (H.B. 2914), Sec. 2;          (c)  Subsection 54.032(a), as amended by Acts 2019, 86th   Leg., R.S., Ch. 539 (H.B. 2914), Sec. 3;          (d)  Subsection 54.033(a), as amended by Acts 2019, 86th   Leg., R.S., Ch. 539 (H.B. 2914), Sec. 4;          (e)  Section 54.103, Water Code; and          (f)  Section 54.209.          SECTION ____.  The Texas Commission on Environmental Quality   shall evaluate the economic feasibility of bonds issued by water   districts in whole or in part in (i) Chambers, Liberty, Walker,   Grimes, Brazos, Austin, and Wharton counties the same as the bonds   issued by water districts in Harris County; (ii) Grayson, Wise,   Parker, Hood, Johnson, Ellis, Kaufman, Rockwall, and Hunt counties   the same as the bonds issued by water districts in Dallas County;   (iii) Caldwell, Bastrop, Lee, Milam, Bell, Burnet, Blanco, and   Kendall counties the same as the bonds issued by water districts in   Travis County.          SECTION ____.  (a) Section __ of this Act adding Section   49.2225, Water Code, as it applies to districts governed by   Chapters 51 and 53, Water Code, takes effect December 31, 2024, and   as it applies to districts governed by Chapter 54, Water Code, takes   effect September 1, 2023.          (b)  Except as otherwise provided by this Act, 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,   2023.