By:  Puente                                           H.B. No. 1780
       73R5426 DWS-F
                                 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.