S.B. No. 2014
 
 
 
 
AN ACT
  relating to the administration of certain water districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 49.181, Water Code, is amended by
  amending Subsection (f) and adding Subsections (i), (j), (k), and
  (l) to read as follows:
         (f)  The commission shall determine whether the project to be
  financed by the bonds is feasible and issue an order either
  approving or disapproving, as appropriate, the issuance of the
  bonds. If the commission determines that an application for the
  approval of bonds complies with the requirements for financial
  feasibility and the district submitting the application is not
  required to comply with rules regarding project completion, the
  commission may not disapprove the issuance of bonds for all or a
  portion of a project or require that the funding for all or a
  portion of a project be escrowed solely on the basis that the
  construction of the project is not complete at the time of the
  commission's determination. The commission shall retain a copy of
  the order and send a copy of the order to the district.
         (i)  An application for the approval of bonds under this
  section may include financing for payment of creation and
  organization expenses. Expenses are creation and organization
  expenses if the expenses were incurred through the date of the
  canvassing of the confirmation election. A commission rule
  regarding continuous construction periods or the length of time for
  the payment of expenses during construction periods does not apply
  to expenses described by this section.
         (j)  The commission shall approve an application to issue
  bonds to finance the costs of spreading and compacting fill to
  remove property from the 100-year floodplain made by a levee
  improvement district if the application otherwise meets all
  applicable requirements for bond applications.
         (k)  The commission shall approve an application to issue
  bonds to finance the costs of spreading and compacting fill to
  provide drainage that is made by a municipal utility district or a
  district with the powers of a municipal utility district if the
  costs are less than the cost of constructing or improving drainage
  facilities.
         (l)  If a district is approved for the issuance of bonds by
  the commission to use a certain return flow of wastewater, the
  approval applies to subsequent bond authorizations unless the
  district seeks approval to use a different return flow of
  wastewater.
         SECTION 2.  Section 49.273(i), Water Code, is amended to
  read as follows:
         (i)  If changes in plans, [or] specifications, or scope of
  work are necessary or beneficial to the district, as determined by
  the board, after the performance of the contract is begun, or if it
  is necessary or beneficial to the district, as determined by the
  board, to decrease or increase the quantity of the work to be
  performed or of the materials, equipment, or supplies to be
  furnished, the board may approve change orders making the changes.
  The board may grant authority to an official or employee
  responsible for purchasing or for administering a contract to
  approve a change order that involves an increase or decrease of
  $50,000 or less.  The aggregate of the change orders that [may not]
  increase the original contract price by more than 25 percent[.  
  Additional change orders] may 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.  A change order
  is not subject to the requirements of Subsection (d) or (e).
         SECTION 3.  Section 49.302(b), Water Code, is amended to
  read as follows:
         (b)  A petition requesting the annexation of a defined area
  signed by a majority in value of the owners of land in the defined
  area, as shown by the tax rolls of the central appraisal district of
  the county or counties in which such area is located, [or signed by
  50 landowners if the number of landowners is more than 50,] shall
  describe the land by metes and bounds or by lot and block number if
  there is a recorded plat of the area and shall be filed with the
  secretary of the board.
         SECTION 4.  Section 54.014, Water Code, is amended to read as
  follows:
         Sec. 54.014.  PETITION. When it is proposed to create a
  district, a petition requesting creation shall be filed with the
  commission. The petition shall be signed by a majority in value of
  the holders of title of the land within the proposed district, as
  indicated by the tax rolls of the central appraisal district. [If
  there are more than 50 persons holding title to the land in the
  proposed district, as indicated by the tax rolls of the central
  appraisal district, the petition is sufficient if it is signed by 50
  holders of title to the land.]
         SECTION 5.  Sections 54.016(a), (b), and (f), Water Code,
  are amended to read as follows:
         (a)  No land within the corporate limits of a city or within
  the extraterritorial jurisdiction of a city, shall be included in a
  district unless the city grants its written consent, by resolution
  or ordinance, to the inclusion of the land within the district in
  accordance with Section 42.042, Local Government Code, and this
  section. The request to a city for its written consent to the
  creation of a district, shall be signed by a majority in value of
  the holders of title of the land within the proposed district as
  indicated by the county tax rolls [or, if there are more than 50
  persons holding title to the land in the proposed district as
  indicated by the county tax rolls, the request to the city will be
  sufficient if it is signed by 50 holders of title to the land in the
  district]. A petition for the written consent of a city to the
  inclusion of land within a district shall describe the boundaries
  of the land to be included in the district by metes and bounds or by
  lot and block number, if there is a recorded map or plat and survey
  of the area, and state the general nature of the work proposed to be
  done, the necessity for the work, and the cost of the project as
  then estimated by those filing the petition. If, at the time a
  petition is filed with a city for creation of a district, the
  district proposes to connect to a city's water or sewer system or
  proposes to contract with a regional water and wastewater provider
  which has been designated as such by the commission as of the date
  such petition is filed, to which the city has made a capital
  contribution for the water and wastewater facilities serving the
  area, the proposed district shall be designated as a "city service
  district." If such proposed district does not meet the criteria for
  a city service district at the time the petition seeking creation is
  filed, such district shall be designated as a "noncity service
  district." The city's consent shall not place any restrictions or
  conditions on the creation of a noncity service district as defined
  by this chapter [Chapter 54 of the Texas Water Code] other than
  those expressly provided in Subsection (e) of this section and
  shall specifically not limit the amounts of the district's bonds. A
  city may not require annexation as a consent to creation of any
  district. A city shall not refuse to approve a district bond issue
  for any reason except that the district is not in compliance with
  valid consent requirements applicable to the district. If a city
  grants its written consent without the concurrence of the applicant
  to the creation of a noncity service district containing conditions
  or restrictions that the petitioning land owner or owners
  reasonably believe exceed the city's powers, such land owner or
  owners may petition the commission to create the district and to
  modify the conditions and restrictions of the city's consent. The
  commission may declare any provision of the consent to be null and
  void. The commission may approve the creation of a district that
  includes any portion of the land covered by the city's consent to
  creation of the district.  The legislature may create and may
  validate the creation of a district that includes any portion of the
  land covered by the city's consent to the creation of the district.
         (b)  If the governing body of a city fails or refuses to grant
  permission for the inclusion of land within its extraterritorial
  jurisdiction in a district, including a district created by a
  special act of the legislature, within 90 days after receipt of a
  written request, a majority of the electors in the area proposed to
  be included in the district or the owner or owners of 50 percent or
  more of the land to be included may petition the governing body of
  the city and request the city to make available to the land the
  water or sanitary sewer service contemplated to be provided by the
  district.
         (f)  A city may provide in its written consent for the
  inclusion of land in a district that is initially located wholly or
  partly outside the corporate limits of the city that a contract
  ("allocation agreement") between the district and the city be
  entered into prior to the first issue of bonds, notes, warrants, or
  other obligations of the district.  The allocation agreement shall
  contain the following provisions:
               (1)  a method by which the district shall continue to
  exist following the annexation of all territory within the district
  by the city, if the district is [initially] located outside the
  corporate limits of the city at the time the creation of the
  district is approved by the district's voters;
               (2)  an allocation of the taxes or revenues of the
  district or the city which will assure that, following the date of
  the inclusion of all the district's territory within the corporate
  limits of the city, the total annual ad valorem taxes collected by
  the city and the district from taxable property within the district
  does not exceed an amount greater than the city's ad valorem tax
  upon such property;
               (3)  an allocation of governmental services to be
  provided by the city or the district following the date of the
  inclusion of all of the district's territory within the corporate
  limits of the city; and
               (4)  such other terms and conditions as may be deemed
  appropriate by the city.
         SECTION 6.  The change in law made to Section 54.016(f),
  Water Code, as amended by this Act, applies only to an agreement
  entered into on or after the effective date of this Act. An
  agreement entered into before the effective date of this Act is
  governed by the law in effect on the date the agreement was entered
  into, and the former law is continued in effect for that purpose.
         SECTION 7.  This Act takes effect September 1, 2017.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2014 passed the Senate on
  May 11, 2017, by the following vote:  Yeas 31, Nays 0;
  May 26, 2017, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 27, 2017, House
  granted request of the Senate; May 28, 2017, Senate adopted
  Conference Committee Report by the following vote:  Yeas 31,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2014 passed the House, with
  amendments, on May 24, 2017, by the following vote:  Yeas 146,
  Nays 0, two present not voting; May 27, 2017, House granted request
  of the Senate for appointment of Conference Committee;
  May 28, 2017, House adopted Conference Committee Report by the
  following vote:  Yeas 144, Nays 2, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor