73R8779 JD-F
By Gallego H.B. No. 2852
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operations, financing, and organization of the Upper Rio Grande
1-4 Solid Waste Management District; granting the authority to issue
1-5 revenue bonds.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. GENERAL PROVISIONS
1-8 SECTION 1.01. Purpose. The purpose of this Act is to
1-9 establish the Upper Rio Grande Solid Waste Management District as
1-10 the exclusive provider of solid waste management services within
1-11 the district. This Act does not affect a solid waste disposal or
1-12 management facility in the district on the effective date of this
1-13 Act.
1-14 SECTION 1.02. Findings and Declaration of Policy. (a) The
1-15 legislature finds that:
1-16 (1) the quality of water in the Upper Rio Grande area
1-17 is materially affected by the disposal of waste throughout the
1-18 area;
1-19 (2) a regional effort to prevent water pollution, plan
1-20 corrective and preventive measures, provide facilities for waste
1-21 disposal, and regulate waste disposal is far more effective than
1-22 efforts on a smaller scale;
1-23 (3) solid waste, as well as other waste, may impair
1-24 water quality, including by seepage or drainage;
2-1 (4) creation of the Upper Rio Grande Solid Waste
2-2 Management District would advance the established policy of the
2-3 state to maintain the quality of the water in the state consistent
2-4 with:
2-5 (A) the public health and public enjoyment;
2-6 (B) the propagation and protection of
2-7 terrestrial and aquatic life;
2-8 (C) the operation of existing industries; and
2-9 (D) the economic development of the state; and
2-10 (5) the impending shortage of water for beneficial use
2-11 in the district requires that all reasonable measures be taken to
2-12 prevent and abate water pollution and to ensure the availability of
2-13 water for beneficial use.
2-14 (b) The legislature finds that this Act is in compliance
2-15 with Article XVI, Sections 59(d) and (e), of the Texas Constitution
2-16 and that the legislature has the power and authority to enact this
2-17 Act.
2-18 (c) The legislature finds that all of the area included in
2-19 the district is benefited by the exercise of the power conferred by
2-20 this Act.
2-21 SECTION 1.03. Definitions. In this Act:
2-22 (1) "Board" means the board of directors of the
2-23 district.
2-24 (2) "Director" means a member of the board.
2-25 (3) "District" means the Upper Rio Grande Solid Waste
2-26 Management District created under this Act.
2-27 (4) "Outside the district" means the area contained in
3-1 municipalities and counties adjacent to the district.
3-2 (5) "Person" means an individual, public or private
3-3 corporation, political subdivision, governmental agency,
3-4 municipality, copartnership, association, firm, trust, estate, or
3-5 any other legal entity.
3-6 (6) "Solid waste" has the meaning assigned by Section
3-7 361.003, Health and Safety Code.
3-8 (7) "Water" means groundwater, percolating or
3-9 otherwise, lakes, bays, ponds, springs, rivers, streams, creeks,
3-10 and all other bodies of surface water, natural or artificial, that
3-11 are wholly or partially within the district.
3-12 (8) "Water pollution" means the alteration of the
3-13 physical, chemical, or biological quality of or the contamination
3-14 of water that renders the water harmful, detrimental, or injurious
3-15 to humans, animal life, vegetation, or property, or to public
3-16 health, safety, or welfare, or that impairs the usefulness or the
3-17 public enjoyment of the water for any lawful or reasonable purpose.
3-18 ARTICLE 2. CREATION OF DISTRICT; INITIAL APPOINTMENT OF BOARD
3-19 SECTION 2.01. CREATION OF DISTRICT. Pursuant to Article
3-20 XVI, Section 59, of the Texas Constitution, a conservation and
3-21 reclamation district to be known as the Upper Rio Grande Solid
3-22 Waste Management District is created as a governmental agency and
3-23 body politic and corporate of the state.
3-24 SECTION 2.02. Participation in District. (a) The
3-25 commissioners courts of Brewster, Culberson, Hudspeth, Jeff Davis,
3-26 and Presidio counties by resolution may include the unincorporated
3-27 area of the county in the district.
4-1 (b) The governing body of a municipality within a county
4-2 listed in Subsection (a) of this section by order may include that
4-3 municipality in the district.
4-4 (c) The commissioners court or governing body must issue the
4-5 resolution or order not later than the 60th day after the date on
4-6 which this Act takes effect.
4-7 (d) Territory annexed by a participating municipality is
4-8 included in the district on annexation.
4-9 (e) A county or municipality that elects not to participate
4-10 in the district may contract with the district for services.
4-11 ARTICLE 3. DISTRICT ADMINISTRATION
4-12 SECTION 3.01. BOARD OF DIRECTORS. (a) The district is
4-13 governed by a board of directors appointed as provided by this
4-14 section. The board may appoint an executive committee to exercise
4-15 the powers of the board under this Act.
4-16 (b) Board appointments are subject to the approval of the
4-17 Rio Grande Council of Governments.
4-18 (c) On or after the date on which the eligible counties and
4-19 municipalities elect to participate in the district, the
4-20 commissioners court of each participating county shall each appoint
4-21 one person, the governing body of each municipality that is the
4-22 county seat of a participating county shall each appoint one
4-23 person, and the governing body of each participating municipality
4-24 with a population of 25,000 or more, according to the most recent
4-25 federal decennial census, and the commissioners court in which the
4-26 municipality is located shall jointly appoint one person to serve
4-27 as initial directors for the district.
5-1 (d) The initial directors appointed under Subsection (c) of
5-2 this section shall draw lots to determine which directors shall
5-3 serve one-year terms expiring on September 1, 1994, and which
5-4 directors shall serve two-year terms expiring on September 1, 1995.
5-5 The directors shall draw lots so that half of the directors serve
5-6 two-year terms and half serve one-year terms. If an odd number of
5-7 directors are appointed, the directors shall draw lots so that the
5-8 number of directors equal to half of the directors plus one serve
5-9 two-year terms and the remaining directors serve one-year terms.
5-10 (e) Successor directors are appointed in the same manner as
5-11 in the original appointment and serve two-year terms.
5-12 (f) A vacancy on the board is filled for the unexpired term
5-13 in the same manner as in the original appointment.
5-14 SECTION 3.02. QUALIFICATIONS FOR OFFICE. (a) To be
5-15 eligible to be appointed as or to serve as a director, a person
5-16 must be:
5-17 (1) a resident of the district; and
5-18 (2) a qualified voter.
5-19 (b) Each director must execute a bond in the amount of
5-20 $5,000 with a corporate surety authorized to do business in this
5-21 state and conditioned on the faithful performance of the director's
5-22 duties and file a copy of the bond with the secretary of state and
5-23 the commissioners court of the county in which the director
5-24 resides. The district shall pay for the director's bond with
5-25 district funds.
5-26 SECTION 3.03. OATH. Each director shall file the statement
5-27 and take the constitutional oath of office required of state
6-1 officers.
6-2 SECTION 3.04. ORGANIZATION OF BOARD. (a) After each annual
6-3 appointment of directors, the board shall hold a regular meeting in
6-4 September at the district office and shall organize by electing
6-5 from the members of the board one person to serve as vice-chairman
6-6 and one person to serve as secretary. The board may elect other
6-7 officers it considers necessary. The executive committee of the
6-8 Rio Grande Council of Governments shall appoint from the members of
6-9 the board one person to serve as chairman.
6-10 (b) Each officer serves in that capacity for a term of two
6-11 years.
6-12 (c) The chairman shall preside over meetings of the board,
6-13 and in the chairman's absence the vice-chairman shall preside.
6-14 (d) The chairman, vice-chairman, and secretary shall perform
6-15 the duties and may exercise the powers specifically given them by
6-16 this Act or by orders of the board.
6-17 SECTION 3.05. MEETING AND ACTIONS OF THE BOARD. (a) The
6-18 board shall hold a regular meeting quarterly or more often and may
6-19 meet at any other time as provided by the bylaws.
6-20 (b) A majority of the members of the board constitute a
6-21 quorum for the transaction of business of the district.
6-22 (c) Except as otherwise provided by this Act, the vote of a
6-23 majority of directors is required for board action.
6-24 (d) The board shall adopt bylaws at its first meeting or as
6-25 soon after the first meeting as practicable. The board's bylaws
6-26 must prescribe the powers, duties, and procedures for removal from
6-27 a board office.
7-1 SECTION 3.06. CONFLICT OF INTEREST. The laws relating to a
7-2 conflict of interest that apply to a local public official apply to
7-3 a director appointed under this Act.
7-4 SECTION 3.07. DIRECTOR'S COMPENSATION. (a) A director is
7-5 entitled to receive $100 a day and reimbursement for actual and
7-6 necessary expenses incurred:
7-7 (1) for each day the director attends meetings of the
7-8 board; and
7-9 (2) for each day the director attends to the business
7-10 of the district that is authorized by board resolution or motion.
7-11 (b) A director is not entitled to receive a per diem
7-12 allowance for more than 52 days in any one calendar year.
7-13 SECTION 3.08. GENERAL MANAGER; PERSONNEL. The board may
7-14 employ a general manager and other personnel for a term and salary
7-15 set by the board.
7-16 SECTION 3.09. EMPLOYEE'S BONDS. (a) The general manager
7-17 and each employee of the district charged with the collection,
7-18 custody, or payment of any money of the district shall execute a
7-19 fidelity bond. The board shall approve the form, amount, and
7-20 surety of the bond.
7-21 (b) The district shall pay the premiums on the employees'
7-22 bonds under this section.
7-23 SECTION 3.10. PRINCIPAL OFFICE. The district shall maintain
7-24 its principal office inside the district's boundaries.
7-25 SECTION 3.11. RECORDS. (a) The district shall keep
7-26 complete and accurate accounts of its business transactions in
7-27 accordance with generally accepted methods of accounting.
8-1 (b) The district shall keep complete and accurate minutes of
8-2 its meetings.
8-3 (c) The district shall maintain its accounts, contracts,
8-4 documents, minutes, and other records at its principal office.
8-5 (d) Neither the board nor its employees may disclose a
8-6 district record that relates to trade secrets or the economics of
8-7 an industry's operations.
8-8 SECTION 3.12. SUITS. The district may, through its board,
8-9 sue and be sued in any court of this state in the name of the
8-10 district. Service of process in a suit may be had by serving the
8-11 general manager or other officers appointed by the board.
8-12 SECTION 3.13. SEAL. The board shall adopt a seal for the
8-13 district and may alter the form of the seal from time to time.
8-14 ARTICLE 4. DISTRICT POWERS AND DUTIES
8-15 SECTION 4.01. GENERAL POWERS. (a) Except as otherwise
8-16 provided by this Act, the district has all the rights, powers,
8-17 privileges, authority, and functions conferred by the general law
8-18 of this state on districts created under Article XVI, Section 59,
8-19 of the Texas Constitution.
8-20 (b) If any provision of the general law is in conflict or
8-21 inconsistent with this Act, this Act prevails. Any general law not
8-22 in conflict or inconsistent with this Act is adopted and
8-23 incorporated by reference.
8-24 SECTION 4.02. REQUIREMENTS OF OTHER LAW. The district shall
8-25 comply with the licensing, monitoring, and reporting requirements
8-26 prescribed by law in connection with the collection and disposal of
8-27 solid waste.
9-1 SECTION 4.03. SPECIFIC POWERS. (a) The district has the
9-2 powers necessary or convenient to carry out and effect the purposes
9-3 and provisions of this Act, including the powers granted in this
9-4 section.
9-5 (b) The district may:
9-6 (1) own, operate, develop, control, purchase,
9-7 construct, lease, or acquire real or personal property, collection
9-8 and disposal facilities, works, systems and equipment, solid waste
9-9 disposal sites, and any other asset required or necessary, whether
9-10 previously existing or to be made, developed, constructed, or
9-11 acquired, inside or outside the boundaries of the district, that
9-12 the board finds is necessary or convenient to carry out this Act;
9-13 (2) enter into contracts with a person or entity,
9-14 public or private, on terms and conditions the board considers
9-15 desirable, fair, and advantageous to:
9-16 (A) provide for the operation, monitoring,
9-17 maintenance, professional services, employment, franchise, leasing,
9-18 development, research, marketing, distribution, and collection and
9-19 disposal of solid waste;
9-20 (B) transport, treat, and dispose of the
9-21 district's solid waste or to transport, treat, and dispose of the
9-22 solid waste of others;
9-23 (C) purchase, lease, use, manage, control, or
9-24 operate solid waste disposal and collection systems and facilities,
9-25 all or part of which may be owned by other political subdivisions
9-26 or a private business in accordance with the terms and conditions
9-27 that are mutually agreed on by the contracting parties; and
10-1 (D) obtain grants or loans, plan, and make
10-2 preliminary surveys, investigations, feasibility reports,
10-3 engineering reports, and economic and environmental analyses of any
10-4 kind or character;
10-5 (3) acquire, develop, contract for, and use railroad
10-6 and water transportation facilities, incineration facilities, and
10-7 oil, natural gas, electricity, or water resources;
10-8 (4) enforce or defend by any legal proceeding the
10-9 board considers advisable any of the rights or powers granted by
10-10 this Act and the general laws of the state;
10-11 (5) enter into contracts that may be negotiated or
10-12 subject to competitive bidding if the district considers
10-13 competitive bidding desirable, fair, and advantageous to the
10-14 district; and
10-15 (6) sell or acquire license franchise, easements, real
10-16 property, or other property within or without its boundaries for
10-17 the accomplishment of its powers and purposes through its right of
10-18 purchase.
10-19 SECTION 4.04. FACILITY SPECIFICATIONS. (a) The district
10-20 may establish a standard specification for facilities that are
10-21 designed or constructed to provide for the collection and disposal
10-22 of solid waste within the district. The specifications may not
10-23 apply to a facility that is in existence on the effective date of
10-24 this Act unless the district acquires the facility.
10-25 (b) The district may seek injunctive relief against the
10-26 maintenance, operation, or construction of a solid waste disposal
10-27 or collection business, system, or facility within the district
11-1 that is not exempted by this Act or that does not meet the
11-2 standards and specifications the district has approved.
11-3 (c) The standards and specifications, when approved, may not
11-4 conflict with a licensing, monitoring, or administrative provision
11-5 prescribed by law.
11-6 SECTION 4.05. CERTAIN CONTRACTS. The district may contract
11-7 with a municipality or county for solid waste collection and
11-8 disposal without the necessity of an election by a contracting
11-9 party and without the requirement of competitive bidding.
11-10 SECTION 4.06. LIMITATION OF POWERS. The district may not:
11-11 (1) impose a tax;
11-12 (2) exercise the power of eminent domain;
11-13 (3) close an existing municipal or county disposal
11-14 site or collection facility;
11-15 (4) issue general obligation bonds; or
11-16 (5) obligate municipal or county revenues or property
11-17 for debt.
11-18 SECTION 4.07. LIABILITY OF MUNICIPALITY OR COUNTY. The
11-19 district shall hold a municipality or county participating in the
11-20 district harmless from any tort or contractual liability for which
11-21 the municipality or county may be sued as a result of the district
11-22 pursuing the purposes established by this Act.
11-23 ARTICLE 5. POLLUTION CONTROL AND ABATEMENT DISTRICTS
11-24 SECTION 5.01. ESTABLISHMENT. (a) The district may
11-25 establish one or more pollution control and abatement districts to
11-26 accomplish any of the powers, purposes, rights, privileges, or
11-27 authority vested in the district by this Act.
12-1 (b) The district shall establish the procedure by which a
12-2 pollution control and abatement district may be created.
12-3 SECTION 5.02. BOUNDARIES. The boundaries of a pollution
12-4 control and abatement district may include any territory within the
12-5 district with the consent of each county or municipality in which
12-6 the pollution control and abatement district is located.
12-7 SECTION 5.03. TAX. A pollution control and abatement
12-8 district may not levy a tax.
12-9 SECTION 5.04. DEBT. (a) The district may incur
12-10 indebtedness necessary to provide for a pollution control and
12-11 abatement district and for the improvements and maintenance of the
12-12 district.
12-13 (b) The district may issue revenue bonds as provided by
12-14 Article 7 of this Act for a pollution control and abatement
12-15 district.
12-16 ARTICLE 6. GENERAL FISCAL PROVISIONS
12-17 SECTION 6.01. DISBURSEMENT OF FUNDS. The district may
12-18 disburse funds only by check, draft, order, or other instrument
12-19 signed by the person or persons authorized to do so in the board's
12-20 bylaws or by resolution of the board.
12-21 SECTION 6.02. FEES AND CHARGES. The district shall
12-22 establish fees and charges according to the conditions and
12-23 requirements established by the board.
12-24 SECTION 6.03. AUTHORITY TO BORROW. (a) The district may
12-25 borrow money for the purposes prescribed by this Act.
12-26 (b) The district may borrow money and accept grants from
12-27 private sources, the federal government, the state, and local
13-1 governments.
13-2 (c) The district may enter into any agreement in connection
13-3 with a loan or grant that does not conflict with the constitution
13-4 or laws of this state.
13-5 (d) The source of funds accepted by the district is public
13-6 information both as to amount and as to any restrictions placed by
13-7 the donor on expenditure.
13-8 SECTION 6.04. FISCAL YEAR. (a) The district operates on
13-9 the fiscal year established by the board.
13-10 (b) The fiscal year may not be changed more than once in a
13-11 24-month period.
13-12 SECTION 6.05. AUDIT BY STATE AUDITOR. (a) The board shall
13-13 keep separate books and accounts for all money received from the
13-14 state and the state auditor shall annually audit the books and
13-15 accounts so that the auditor may report to the legislature the
13-16 manner in and purpose for which the district spent money received
13-17 from the state during each fiscal year.
13-18 (b) The state auditor shall promptly make the report
13-19 required under Subsection (a) of this section and shall file a copy
13-20 of the report with the governor, the Texas Natural Resource
13-21 Conservation Commission, and the governing body of each county and
13-22 municipality included in the district. The state auditor shall
13-23 also file other copies required by law.
13-24 (c) After completing the audit and the required report, the
13-25 state auditor shall prepare a detailed statement of the actual cost
13-26 of the audit and certify the statement to the district for payment.
13-27 On receipt of the statement, the district shall pay the state
14-1 treasurer the cost of the audit. The state treasurer shall credit
14-2 the payment to the general revenue fund.
14-3 SECTION 6.06. ACCOUNTS AND INDEPENDENT AUDIT. (a) The
14-4 district shall keep a complete system of accounts.
14-5 (b) Annually, the board shall have an audit made of the
14-6 financial condition of the district prepared by an independent
14-7 certified public accountant, or a firm of independent certified
14-8 public accountants, selected by the board and of recognized
14-9 integrity and ability.
14-10 (c) The district shall pay the costs of the audit.
14-11 (d) The district shall file copies of the independent audit
14-12 with the governor, the commissioners court of each county in the
14-13 district, the city clerk of each municipality in the district, and
14-14 any other agency, commission, or authority required by law.
14-15 (e) The board shall keep at least one copy of the audit at
14-16 the offices of the district open to inspection by any interested
14-17 person during normal office hours.
14-18 SECTION 6.07. Depository. (a) The board shall name one or
14-19 more banks in the district to serve as depository for district
14-20 funds.
14-21 (b) District funds, other than those transmitted to a bank
14-22 of payment for bonds issued by the district, shall be deposited as
14-23 received with the depository bank and must remain on deposit.
14-24 (c) Before the district deposits funds in a bank in an
14-25 amount that exceeds the maximum amount secured by the Federal
14-26 Deposit Insurance Corporation, the bank must execute a bond or
14-27 provide other security in an amount sufficient to secure from loss
15-1 the district's funds that exceed the amount secured by the Federal
15-2 Deposit Insurance Corporation.
15-3 (d) If the board cannot negotiate favorable terms and
15-4 conditions for the handling of district funds with a bank in the
15-5 district, the board may designate one or more banks outside the
15-6 district on the terms and conditions the district finds to be
15-7 advantageous.
15-8 ARTICLE 7. BONDS
15-9 SECTION 7.01. AUTHORITY TO ISSUE BONDS. The board may issue
15-10 and sell bonds in the name of the district to acquire land and
15-11 construct works and improvements and waste disposal, treatment, and
15-12 other facilities, plants, pipelines, equipment, and appliances as
15-13 provided by this Act.
15-14 SECTION 7.02. BOND PAYMENT. The board may provide for the
15-15 payment of the principal of and interest on the bonds by pledging
15-16 all or part of the designated revenues from the ownership or
15-17 operation of the district's works, improvements, and facilities.
15-18 SECTION 7.03. TERMS; FORM. (a) The district may issue its
15-19 bonds in various series or issues.
15-20 (b) Bonds may mature serially or otherwise not more than 50
15-21 years after the date of issuance and shall bear interest at a rate
15-22 permitted by state law.
15-23 (c) The district's bonds and interest coupons, if any, are
15-24 investment securities under the terms of Chapter 8, Business &
15-25 Commerce Code, and may be issued registrable as to principal or as
15-26 to principal and interest or may be issued in book entry form and
15-27 may be made redeemable before maturity at the option of the
16-1 district or may contain a mandatory redemption provision.
16-2 (d) The district's bonds may be issued in the form,
16-3 denominations, and manner and under the terms, conditions, and
16-4 details and shall be signed and executed as provided by the board
16-5 in the resolution or order authorizing the bonds.
16-6 SECTION 7.04. BOND PROVISIONS. (a) In the orders or
16-7 resolutions authorizing the issuance of bonds, including refunding
16-8 bonds, the board may provide for the flow of funds, the
16-9 establishment and maintenance of the interest and sinking fund, the
16-10 reserve fund, and other funds and may make additional covenants
16-11 with respect to the bonds and the pledged fees.
16-12 (b) The orders or resolutions of the board authorizing the
16-13 issuance of bonds may prohibit the further issuance of bonds or
16-14 other obligations payable from the pledged fees or may reserve the
16-15 right to issue additional bonds to be secured by a pledge of and
16-16 payable from the fees on a parity with or subordinate to the pledge
16-17 in support of the bonds being issued.
16-18 (c) The orders or resolutions of the board issuing bonds may
16-19 contain other provisions and covenants as the board may determine.
16-20 (d) The board may adopt and have executed any other
16-21 proceedings or instruments necessary and convenient in the issuance
16-22 of bonds.
16-23 SECTION 7.05. APPROVAL AND REGISTRATION. (a) Bonds issued
16-24 by the district and the records relating to their issuance must be
16-25 submitted to the attorney general for examination as to their
16-26 validity.
16-27 (b) If the attorney general finds that the bonds have been
17-1 authorized in accordance with the law, the attorney general shall
17-2 approve them, and the comptroller of public accounts shall register
17-3 the bonds.
17-4 (c) Following approval and registration, the bonds are
17-5 incontestable and are binding obligations according to their terms.
17-6 SECTION 7.06. REFUNDING BONDS. (a) Refunding bonds of the
17-7 district may be issued to refund and pay off an outstanding
17-8 indebtedness the district has issued or assumed.
17-9 (b) The bonds must be issued in the manner provided by
17-10 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
17-11 (Article 717k-3, Vernon's Texas Civil Statutes).
17-12 (c) The refunding bonds may be sold and the proceeds applied
17-13 to the payment of outstanding indebtedness or may be exchanged in
17-14 whole or in part for not less than a similar principal amount of
17-15 outstanding indebtedness. If the refunding bonds are to be sold
17-16 and the proceeds applied to the payment of outstanding
17-17 indebtedness, the refunding bonds must be issued and payments made
17-18 in the manner provided by Chapter 503, Acts of the 54th
17-19 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
17-20 Civil Statutes).
17-21 SECTION 7.07. LEGAL INVESTMENTS; SECURITY FOR DEPOSITS. (a)
17-22 District bonds are legal and authorized investments for:
17-23 (1) a bank;
17-24 (2) a savings bank;
17-25 (3) a trust company;
17-26 (4) a savings and loan association;
17-27 (5) an insurance company;
18-1 (6) a fiduciary;
18-2 (7) a trustee;
18-3 (8) a guardian; and
18-4 (9) the sinking fund of a municipality, county, school
18-5 district, or other political subdivision of the state and other
18-6 public funds of the state and its agencies, including the permanent
18-7 school fund.
18-8 (b) District bonds may secure deposits of public funds of
18-9 the state or a municipality, county, school district, or other
18-10 political subdivision of the state. The bonds are lawful and
18-11 sufficient security for deposits to the extent of their value, if
18-12 accompanied by all unmatured coupons.
18-13 SECTION 7.08. APPLICATION OF OTHER LAWS. Bonds of the
18-14 district are considered bonds under the Bond Procedures Act of 1981
18-15 (Article 717k-6, Vernon's Texas Civil Statutes).
18-16 SECTION 7.09. TAX STATUS OF BONDS. Since the district
18-17 created under this chapter is a public entity performing an
18-18 essential public function, bonds issued by the district, any
18-19 transaction relating to the bonds, and profits made in the sale of
18-20 the bonds are free from taxation by the state or by a municipality,
18-21 county, special district, or other political subdivision of the
18-22 state.
18-23 ARTICLE 8. MISCELLANEOUS PROVISIONS
18-24 SECTION 8.01. TRANSITION PROVISION. The reference in
18-25 Section 6.05 of this Act to the Texas Natural Resource Conservation
18-26 Commission means the Texas Water Commission until the name of the
18-27 Texas Water Commission is changed to the Texas Natural Resource
19-1 Conservation Commission as provided by Section 1.085, Chapter 3,
19-2 Acts of the 72nd Legislature, 1st Called Session, 1991.
19-3 SECTION 8.02. EMERGENCY. The importance of this legislation
19-4 and the crowded condition of the calendars in both houses create an
19-5 emergency and an imperative public necessity that the
19-6 constitutional rule requiring bills to be read on three several
19-7 days in each house be suspended, and this rule is hereby suspended,
19-8 and that this Act take effect and be in force from and after its
19-9 passage, and it is so enacted.
19-10 COMMITTEE AMENDMENT NO. 1
19-11 Amend H.B. 2852 as follows:
19-12 Sec. 7.01. Authority to issue bonds. Strike the current
19-13 section and substitute the following language:
19-14 The board may issue and sell bonds in the name of the district to
19-15 acquire land and construct works and improvements and waste
19-16 disposal, treatment, and other facilities, plants, pipelines,
19-17 equipment, and appliances as provided by this Act. Bonds that are
19-18 issued under the authority granted hereunder shall be Revenue
19-19 Bonds, providing for indentures on identified revenue streams and
19-20 liens on identified assets of the district, and shall require the
19-21 approval of the local governments participating in the district and
19-22 appointing members of the district's board of directors prior to
19-23 the issuance.
19-24 (b) In the event of default on the bonds by the district, each
19-25 governmental entity participating in the district at the time of
19-26 the issuance of the bonds shall assume proportionate liability for
19-27 the repayment of the bonds.
20-1 Yost