73R5426 DWS-F By Puente H.B. No. 1780 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the management and operation of certain municipally 1-3 owned utilities and validation of certain acts in relation to the 1-4 utilities. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 10, Title 28, Revised Statutes, is 1-7 amended by adding Article 1115b to read as follows: 1-8 Art. 1115b. MANAGEMENT AND CONTROL OF UTILITY SYSTEMS 1-9 Sec. 1. This article applies only to a home-rule 1-10 municipality that owns or may own water, wastewater, storm water, 1-11 or drainage utility systems, that by ordinance elects to have the 1-12 management and control of two or more of those systems governed by 1-13 this article, and that: 1-14 (1) has outstanding obligations payable solely from 1-15 and secured by a lien on and pledge of net revenues of one or more 1-16 of those systems; or 1-17 (2) issues obligations that are payable solely from 1-18 and secured by a lien on and pledge of the net revenues of one or 1-19 more of those systems. 1-20 Sec. 2. A municipality by ordinance may transfer management 1-21 and control of two or more of its water, wastewater, storm water, 1-22 or drainage systems to a board of trustees having at least seven 1-23 members, one of whom must be the presiding officer of the governing 1-24 body of the municipality. The number, qualifications, terms of 2-1 office, succession, compensation, powers, and duties of the members 2-2 of the board of trustees shall be specified by the ordinance. In 2-3 all matters on which the ordinance is silent, the laws and rules 2-4 governing the governing body of the municipality govern the board 2-5 of trustees, to the extent applicable. 2-6 Sec. 3. (a) All ordinances, resolutions, orders, 2-7 instruments, acts, attempted acts, and proceedings of a 2-8 municipality or of a board of trustees created by the municipality 2-9 that were adopted, executed, or done before the effective date of 2-10 this article and that relate to creation of a board of trustees 2-11 described by Section 2 of this article, the powers of the trustees, 2-12 or the issuance of notes, bonds, or refunding bonds are validated 2-13 in all respects. Those ordinances, resolutions, orders, 2-14 instruments, acts, proceedings, notes, bonds, and refunding bonds 2-15 are as valid as if they had originally been legally authorized or 2-16 accomplished. The notes, bonds, and refunding bonds validated by 2-17 this article are payable in accordance with their terms. 2-18 (b) This section does not apply to any matter that on the 2-19 effective date of this article: 2-20 (1) is involved in litigation if the litigation 2-21 ultimately results in the matter being held invalid by a final 2-22 judgment of a court of competent jurisdiction; or 2-23 (2) has been held invalid by a final judgment of a 2-24 court of competent jurisdiction. 2-25 SECTION 2. The importance of this legislation and the 2-26 crowded condition of the calendars in both houses create an 2-27 emergency and an imperative public necessity that the 3-1 constitutional rule requiring bills to be read on three several 3-2 days in each house be suspended, and this rule is hereby suspended, 3-3 and that this Act take effect and be in force from and after its 3-4 passage, and it is so enacted.