By: Jetton, et al. H.B. No. 2815       A BILL TO BE ENTITLED   AN ACT   relating to the powers, authorities, duties, and responsibilities   of certain conservation and reclamation districts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 375.022, Local Government Code, is   amended by adding Subsections (d) and (e) to read as follows:          (d)  The petition may request that a succeeding board of   directors be elected under Section 375.0645 instead of being   appointed under Section 375.064.          (e)  On receipt by the commission of a petition that complies   with this section, the commission shall issue a notice indicating   that the petition is administratively complete and may conduct a   hearing on the petition in the manner provided by Section 49.011,   Water Code, if the commission determines that a hearing is   necessary.          SECTION 2.  Section 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 3.  Subchapter D, Chapter 375, Local Government   Code, is amended by adding Section 375.0645 to read as follows:          Sec. 375.0645.  ELECTION OF DIRECTORS.  (a)  This section   applies only to a district created by order of the commission   providing for an elected board of directors as requested in the   petition requesting creation of the district as provided by Section   375.022(d).          (b)  The commission shall appoint the initial directors   under Section 375.026, and subsequent directors are elected in the   manner provided by Subchapter D, Chapter 49, Water Code.          (c)  An elected director is entitled to receive fees of   office and reimbursement for actual expenses as provided by Section   49.060, Water Code.          (d)  Sections 375.069 and 375.070 do not apply to an elected   director.          (e)  Section 49.052(f), Water Code, does not exempt an   elected director from disqualification under that section.          (f)  Sections 375.064, 375.161, and 375.243 do not apply to a   district with an elected board.          SECTION 4.  Section 375.065, Local Government Code, is   amended to read as follows:          Sec. 375.065.  REMOVAL OF DIRECTOR. The governing body of   the municipality after notice and hearing may remove a director   appointed by the municipality for misconduct or failure to carry   out the director's duties on petition by a majority of the remaining   directors.          SECTION 5.  Section 375.067(a), Local Government Code, is   amended to read as follows:          (a)  As soon as practicable after a director is appointed or   elected as provided by this subchapter, the director shall execute   a $10,000 bond payable to the district and conditioned on the   faithful performance of the director's duties.          SECTION 6.  Section 375.068, Local Government Code, is   amended to read as follows:          Sec. 375.068.  OFFICERS. After directors are appointed or   elected as provided by this subchapter and have qualified by   executing a bond and taking the oath, they shall organize by   electing a president, a vice-president, a secretary, and any other   officers the board considers necessary.          SECTION 7.  Section 375.071, Local Government Code, is   amended to read as follows:          Sec. 375.071.  QUORUM.  (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)  If at least two-thirds of the directors execute a   written consent, a majority of a quorum at a board meeting may [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. A director may   execute a written consent outside of a board meeting.          SECTION 8.  Section 375.161(b), Local Government Code, is   amended to read as follows:          (b)  This section does not apply to a tax or assessment that   is authorized or approved by the voters of the district or to a   required payment for a service provided by the district, including   water and sewer services.          SECTION 9.  Section 375.208, Local Government Code, is   amended to read as follows:          Sec. 375.208.  COMMISSION APPROVAL. A district may not   issue bonds to provide funding for [must obtain approval of the   commission as provided by Chapter 54, Water Code, if it issues bonds   to provide] water, sewage, or drainage facilities unless the   commission determines that the project is feasible and issues an   order approving the issuance of the bonds in the manner provided by   Section 49.181, Water Code. [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 10.  Section 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 of this code or Chapter 375, Local Government Code, the   commission shall issue a notice indicating that the application is   administratively complete.          SECTION 11.  Section 49.060, Water Code, is amended by   amending Subsection (a) and adding Subsection (a-2) 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 board by resolution shall   set the fees of office. The board may not set the fees of office at   an amount greater than the amount of the per diem set by the Texas   Ethics Commission for members of the legislature under Section 24a,   Article III, Texas Constitution. 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, by resolution of the board, may not set the   annual limit on the fees of office described by that subsection at   an amount greater than the amount a director would receive for 60   days of service a year at the maximum daily rate authorized by   Subsection (a).          SECTION 12.  Section 49.065, Water Code, is amended by   adding Subsection (d) to read as follows:          (d)  Subsection (b) applies to a personal e-mail address of a   director only if the district does not make available to the public   an official e-mail address for the director or the district. In   this subsection, "personal e-mail address" means an e-mail address   that is not paid for by district money and is not used primarily for   the transaction of official business of the district.          SECTION 13.  Section 49.102, Water Code, is amended by   amending Subsection (j) and adding Subsection (k) to read as   follows:          (j)  The provisions of this section requiring a confirmation   election do not apply to a [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)  Notwithstanding any other law, if the board determines   that it is in the best interest of the district and the voters of the   district for the district to administer an election under this   section, the district shall establish precincts and designate   polling locations inside the boundaries of the district.          SECTION 14.  Section 49.106, Water Code, is amended by   adding Subsection (f) to read as follows:          (f)  The board may submit new bond authorization and   refunding bond authorization in a single proposition at an   election.          SECTION 15.  Section 49.181, Water Code, is amended by   adding Subsection (f-1) to read as follows:          (f-1)  For the purposes of evaluating the financial   feasibility of a project financed by a bond, the commission shall   consider:                (1)  a district located wholly or partly in Austin,   Brazos, Chambers, Grimes, Liberty, Walker, or Wharton County as if   the district were located in Harris County; and                (2)  a district located wholly or partly in Bastrop,   Bell, Blanco, Burnet, Caldwell, Gillespie, Kendall, Lee, or Milam   County as if the district were located in Travis County.          SECTION 16.  Section 49.23602(c), Water Code, is amended to   read as follows:          (c)  If the board of a district adopts a combined debt   service, contract, and operation and maintenance tax rate that   exceeds the district's mandatory tax election rate, an election   must be held in accordance with the procedures provided by Sections   26.07(c)-(g), Tax Code, to determine whether to approve the adopted   tax rate. If the adopted tax rate is not approved at the election,   the district's tax rate is the voter-approval tax rate. An election   is not required if the adopted tax rate is less than or equal to the   voter-approval tax rate.          SECTION 17.  Subchapter J, Chapter 49, Water Code, is   amended by adding Section 49.316 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.          (i)  If the creation of a new district is confirmed, the new   district shall provide the election date and results to the   commission.          (j)  A 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.          (k)  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.          (l)  The district may continue to rely on confirmation,   directors', bond, and tax elections held before the division.          SECTION 18.  Subchapter O, Chapter 51, Water Code, is   amended by adding Section 51.7131 to read as follows:          Sec. 51.7131.  ALTERNATIVE SUBSTITUTION PROCEDURES.   Notwithstanding this subchapter, a district may substitute land in   the manner provided by Sections 54.739-54.747.          SECTION 19.  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 the board will   always have full membership.          (d)  A director appointed to fill a vacancy must be a person   qualified to serve as a director under Section 57.059.          SECTION 20.  Section 57.059, Water Code, is amended to read   as follows:          Sec. 57.059.  QUALIFICATIONS FOR [ELECTED] DIRECTORS.  To be   qualified to serve [for election] as a director, a person must:                (1)  be at least 18 years old;                (2)  own land subject to taxation in the district or be   a qualified voter in the district; [property taxpaying elector of   the precinct and county from which he is elected] and                (3)  if the director is elected, be a qualified voter of   the precinct in the district established by the commissioners court   under Section 57.058 from which the director is elected [be   eligible under the constitution and laws of this state to hold the   office to which he is elected].          SECTION 21.  The following provisions are repealed:                (1)  Sections 375.023 and 375.024, Local Government   Code;                (2)  Sections 375.025(a) and (b), Local Government   Code;                (3)  Section 54.030(b), Water Code, as amended by   Chapter 539 (H.B. 2914), Acts of the 86th Legislature, Regular   Session, 2019;                (4)  Section 54.032(a), Water Code, as amended by   Chapter 539 (H.B. 2914), Acts of the 86th Legislature, Regular   Session, 2019;                (5)  Section 54.033(a), Water Code, as amended by   Chapter 539 (H.B. 2914), Acts of the 86th Legislature, Regular   Session, 2019; and                (6)  Section 54.103, Water Code.          SECTION 22. 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.