74R11354 MI-F
By Thompson H.B. No. 3230
Substitute the following for H.B. No. 3230:
By Yost C.S.H.B. No. 3230
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operations, functions, and financing of the TGP Water Authority.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. CREATION. (a) A conservation and reclamation
1-6 district is created in Harris County, Texas, to be known as the TGP
1-7 Water Authority. The authority is a governmental agency and a body
1-8 politic and corporate.
1-9 (b) The authority is created under and is essential to
1-10 accomplish the purposes of Section 59, Article XVI, Texas
1-11 Constitution.
1-12 SECTION 2. DEFINITIONS. In this Act:
1-13 (1) "Authority" means the TGP Water Authority.
1-14 (2) "Board" means the board of directors of the
1-15 authority.
1-16 (3) "Person" means an individual, corporation,
1-17 organization, political subdivision or agency, business trust,
1-18 estate, trust, partnership, joint venture, association, or any
1-19 other legal entity.
1-20 SECTION 3. BOUNDARIES. The authority is created, without
1-21 the necessity of any confirmation election, to include the land
1-22 that, on the effective date of this Act, is inside the boundaries
1-23 of the Tidwell Timbers Municipal Utility District, the Greenwood
2-1 Municipal Utility District, and the Parkway Municipal Utility
2-2 District.
2-3 SECTION 4. FINDING OF BENEFIT. All of the land and other
2-4 property included within the boundaries of the district will be
2-5 benefited by the works and projects that are to be accomplished by
2-6 the district under powers conferred by Section 59, Article XVI,
2-7 Texas Constitution. The district is created to serve a public use
2-8 and benefit.
2-9 SECTION 5. GENERAL POWERS AND DUTIES. (a) The authority
2-10 has all of the rights, powers, privileges, authority, functions,
2-11 and duties provided by this Act and by Subchapters C, D, E, and F,
2-12 Chapter 54, Water Code. This Act prevails over any provision of
2-13 general law that is in conflict or inconsistent with this Act.
2-14 (b) The authority may acquire surface and underground water
2-15 supplies from sources both inside and outside the boundaries of the
2-16 authority and may conserve, store, transport, treat, purify,
2-17 distribute, sell, and deliver water to persons inside and outside
2-18 the boundaries of the authority.
2-19 (c) The authority may purchase, construct, lease, or
2-20 otherwise acquire property, works, facilities, and improvements,
2-21 including existing as well as new works, facilities, and
2-22 improvements inside or outside the boundaries of the authority,
2-23 necessary to carry out the rights, powers, and authority granted by
2-24 this Act and general law. Construction contracts of the authority
2-25 must be competitively bid as required by and in accordance with
3-1 Subchapter B, Chapter 271, Local Government Code.
3-2 (d) The authority may enter into contracts with any persons
3-3 inside or outside the boundaries of the authority, on terms and
3-4 conditions the board considers desirable for the performance of its
3-5 rights, powers, or authority under this Act. The contracts may
3-6 provide that they will continue in effect until bonds issued by the
3-7 authority to finance the cost of facilities authorized by this Act,
3-8 and refunding bonds issued in lieu of those bonds, are paid.
3-9 Section 402.014, Local Government Code, applies to a contract
3-10 between the authority and a municipality.
3-11 (e) The authority may enter into contracts with others for
3-12 the supply or transport of water and may act jointly with others in
3-13 the performance of all functions and purposes of the authority.
3-14 (f) An election is not required for approval of contracts to
3-15 carry out the general powers and duties of the authority.
3-16 (g) The authority may acquire water rights under any law or
3-17 permit.
3-18 SECTION 6. WATER CONSERVATION PROGRAM. The authority shall
3-19 adopt and implement a program of water conservation consistent with
3-20 rules and criteria adopted and enforceable by the Texas Water
3-21 Development Board for similarly situated entities in the region.
3-22 SECTION 7. EXCLUSION OF LAND. On mutual agreement between
3-23 the board and the governing body of a political subdivision, the
3-24 land inside a political subdivision may be excluded from the
3-25 authority. Subsequent to any exclusion, the authority shall notify
4-1 the City of Houston and the Harris-Galveston Coastal Subsidence
4-2 District that the political subdivision has been excluded. If a
4-3 political subdivision is excluded from the authority, that
4-4 political subdivision may no longer be represented on the board of
4-5 the authority.
4-6 SECTION 8. ANNEXATION. (a) On petition by the governing
4-7 body of the political subdivision and approval by the board, all
4-8 the land inside a political subdivision may be annexed to the
4-9 authority. Consent from the City of Houston must be obtained
4-10 before the board may adopt an annexation order or resolution.
4-11 (b) A political subdivision may be annexed to the authority
4-12 before or after bonds of the authority are issued, and the boundary
4-13 change will not affect the validity of those bonds.
4-14 (c) Section 43.071, Local Government Code, does not apply to
4-15 the annexation of all or part of the authority by the City of
4-16 Houston.
4-17 SECTION 9. TAXES. The authority may not impose, levy,
4-18 assess, or collect taxes on any property. The authority may not
4-19 issue bonds or create indebtedness that would be payable directly
4-20 from ad valorem taxes.
4-21 SECTION 10. INITIAL BOARD. (a) The initial board consists
4-22 of:
4-23 (1) three appointees from Tidwell Timbers Municipal
4-24 Utility District;
4-25 (2) three appointees from Greenwood Municipal Utility
5-1 District; and
5-2 (3) three appointees from Parkway Municipal Utility
5-3 District.
5-4 (b) The initial appointees shall be designated by resolution
5-5 of the governing bodies of the political subdivisions named in
5-6 Subsection (a) of this section as soon as practicable after the
5-7 effective date of this Act. The resolution must include the name
5-8 of the appointee and the term of office for that appointee. Each
5-9 political subdivision shall initially appoint one member for a term
5-10 of three years, one for a term of two years, and one for a term of
5-11 one year.
5-12 SECTION 11. BOARD OF DIRECTORS. (a) After creation of the
5-13 authority, the board of directors shall manage and control the
5-14 authority.
5-15 (b) Members of the board serve three-year terms ending
5-16 December 31 of the third year. Notwithstanding the terms of
5-17 appointment, a director may be removed with or without cause at any
5-18 time by resolution of the governing body of the political
5-19 subdivision that appointed the director. A successor director is
5-20 appointed to serve the remaining term as provided by Subsection (d)
5-21 of this section.
5-22 (c) The initial members of the board shall meet and organize
5-23 as soon as practicable after the effective date of this Act and
5-24 shall file their official bonds and subscribe to the constitutional
5-25 oath of office. A director continues to serve until the director's
6-1 successor is appointed and has taken the oath of office.
6-2 (d) A vacancy in the office of director, whether caused by
6-3 the death, removal, disqualification, or resignation, or the
6-4 expiration of the term of office, is filled by appointment by the
6-5 governing body of the political subdivision that appointed the
6-6 director vacating the office.
6-7 (e) The governing body of a political subdivision that is
6-8 annexed to the authority after the creation of the authority shall
6-9 appoint three members to the board to represent that political
6-10 subdivision. The subdivision shall appoint one initial member to
6-11 serve a three-year term, one to serve a two-year term, and one to
6-12 serve a one-year term.
6-13 (f) Each calendar year before April 1, the board shall elect
6-14 a president, vice president, secretary, and any other officers the
6-15 board considers desirable. The president shall preside over
6-16 meetings of the board. The vice president shall preside in the
6-17 absence of the president. All directors are voting members. The
6-18 president, vice president, secretary, and other officers shall
6-19 perform the duties and may exercise the powers specifically given
6-20 them by this Act and by resolution or order of the board.
6-21 (g) The board may adopt bylaws consistent with this Act.
6-22 The bylaws may be amended as necessary for the management and
6-23 operation of the authority.
6-24 (h) A member of the board must be over 21 years of age and
6-25 must be a resident of, or an owner of land within, the authority.
7-1 (i) A majority of the directors constitutes a quorum for
7-2 transaction of business, and the concurrence of a majority of
7-3 directors is required for a board action to be taken. At least one
7-4 director from each represented political subdivision must be
7-5 present to constitute a quorum, and at least one director from each
7-6 represented political subdivision must vote with the majority for a
7-7 board action to be taken.
7-8 SECTION 12. EMPLOYEES. The board may employ a general
7-9 manager and other employees as needed, under terms and with
7-10 responsibilities to be determined by the board. A director may not
7-11 serve as both director and as general manager or as an employee of
7-12 the authority.
7-13 SECTION 13. GENERAL FINANCIAL AUTHORITY. (a) The authority
7-14 may reimburse, from general revenues, bond proceeds, or other
7-15 available funds, any person for all reasonable expenses incurred in
7-16 connection with the creation and establishment of the authority,
7-17 including publication costs, legal fees, engineering fees, charges
7-18 for the services of other consultants, and other incidental costs.
7-19 (b) The authority may borrow money from time to time to
7-20 carry out any of the powers and duties granted to the authority
7-21 under this Act by:
7-22 (1) issuing and selling negotiable or nonnegotiable
7-23 notes and providing the terms and conditions of those notes and
7-24 rights of the holders of those notes payable from and secured by
7-25 the sources described in this Act;
8-1 (2) issuing and selling revenue bonds without the
8-2 necessity of an election and providing the terms and conditions of
8-3 those bonds and the rights of the holders of those bonds payable
8-4 from and secured by the sources described in this Act; and
8-5 (3) selling or delivering the notes or bonds to the
8-6 United States or any agency or instrumentality of the United States
8-7 or to the State of Texas or any agency or instrumentality of the
8-8 State of Texas when it is determined by the board to be in the best
8-9 interest of the authority.
8-10 (c) All authority deposits and investments are governed by
8-11 Chapter 2256, Government Code (Public Funds Investment Act) and
8-12 Chapter 2257, Government Code (Public Funds Collateral Act).
8-13 (d) The authority may apply for, accept, and administer
8-14 grants, loans, and other assistance from the United States and any
8-15 agency or instrumentality of this state or any other state to carry
8-16 out the purpose of this Act and may enter into any agreement in
8-17 relation to those grants, loans, or other assistance that is not in
8-18 conflict with the constitution of this state.
8-19 (e) The authority may:
8-20 (1) fix, charge, alter, and collect reasonable
8-21 rentals, rates, fees, and other charges for the use of a facility
8-22 of or for a service rendered by the authority that may vary
8-23 depending on the type of service provided or the type of customer
8-24 receiving the service;
8-25 (2) by rule impose a reasonable penalty for a rental,
9-1 rate, fee, or charge that is delinquent; and
9-2 (3) comply with any duty to fix, charge, alter, or
9-3 collect the rentals, rates, fees, and charges sufficient to fulfill
9-4 any agreement with the holders of bonds or notes issued under this
9-5 Act.
9-6 SECTION 14. BONDS AND NOTES. The bonds of the authority
9-7 shall be sold by either negotiated sale or competitive bid and
9-8 issued in compliance with the Bond Procedures Act of 1981 (Article
9-9 717k-6, Vernon's Texas Civil Statutes). The bonds of the
9-10 authority, other than refunding bonds, shall be issued subject to
9-11 the review and approval of the Texas Natural Resource Conservation
9-12 Commission unless the bonds are approved by, or sold to, an agency
9-13 of the United States or another agency of the State of Texas.
9-14 SECTION 15. FACILITIES; EMINENT DOMAIN. (a) The authority
9-15 may construct, lay, maintain, and operate a canal, lateral, ditch,
9-16 levee, pipeline, bridge, or any other facility for the
9-17 conservation, transportation, treatment, purification, or
9-18 distribution of water together with a service road or other
9-19 facility incidental to and designated for use in connection with
9-20 the transportation, treatment, purification, or distribution of
9-21 water under, along, and across a railroad, railroad right-of-way,
9-22 canal, stream, pipeline, utility line, street or alley in a
9-23 municipality, or a public road or highway.
9-24 (b) The authority may exercise the power of eminent domain
9-25 to acquire by condemnation a fee simple or any other interest in
10-1 property located inside or outside the authority if the property
10-2 interest is necessary or desirable for the exercise of the powers
10-3 conferred by this Act. The authority must exercise the power of
10-4 eminent domain in the manner provided by Chapter 21, Property Code,
10-5 but the authority is not required to deposit with the trial court
10-6 any money or bond, including bonds as provided by Section
10-7 21.021(a), Property Code.
10-8 (c) If the authority, in the exercise of the power of
10-9 eminent domain or power of relocation or any other power granted
10-10 under this Act, makes necessary the relocation, raising, lowering,
10-11 rerouting, or changing the grade of or altering the construction of
10-12 any highway, railroad, electric transmission or distribution line,
10-13 telegraph or telephone property or facility, or pipeline, the
10-14 authority shall accomplish the necessary relocation, raising,
10-15 lowering, rerouting, changing of grade, or alteration of
10-16 construction at the sole expense of the authority. In this
10-17 subsection, "Sole expense" means the actual cost of relocation,
10-18 raising, lowering, rerouting, change in grade, or alteration of
10-19 construction in providing comparable replacement facilities, after
10-20 deducting from the actual cost the net salvage value derived from
10-21 the old facility.
10-22 (d) The authority is not required to give bond for appeal or
10-23 bond for costs in any condemnation suit or any other suit to which
10-24 it may be a party.
10-25 SECTION 16. AUTHORITY OFFICE AND MEETINGS. The board may
11-1 designate and establish one or more offices for the authority and
11-2 one or more meeting places for the board inside or outside the
11-3 authority's boundaries.
11-4 SECTION 17. EMERGENCY. The importance of this legislation
11-5 and the crowded condition of the calendars in both houses create an
11-6 emergency and an imperative public necessity that the
11-7 constitutional rule requiring bills to be read on three several
11-8 days in each house be suspended, and this rule is hereby suspended,
11-9 and that this Act take effect and be in force from and after its
11-10 passage, and it is so enacted.