By Thompson 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 OF AUTHORITY. Pursuant to Article XVI, 1-6 Section 59, of the Texas Constitution, a conservation and 1-7 reclamation district is hereby created in Harris County, Texas to 1-8 be known as the TGP Water Authority. The TGP Water Authority is a 1-9 governmental agency and a body politic and corporate. 1-10 SECTION 2. DEFINITIONS. In this Act: 1-11 (1) "Authority" means the TGP Water Authority 1-12 (2) "Board" means the board of directors of the 1-13 Authority. 1-14 (3) "Person" means an individual, corporation, 1-15 organization, political subdivision or agency, business trust, 1-16 estate, trust, partnership, joint venture, association, or any 1-17 other legal entity. 1-18 SECTION 3. BOUNDARIES. The Authority is created, without 1-19 the necessity of any confirmation election, to include the land 1-20 presently within the boundaries of the following conservation and 1-21 reclamation districts: Tidwell Timbers Municipal Utility District, 1-22 Greenwood Municipal Utility District, and Parkway Municipal Utility 1-23 District. 2-1 SECTION 4. GENERAL POWERS AND DUTIES. (a) The Authority 2-2 may exercise all of the rights, powers, privileges, authority and 2-3 functions provided herein, as well as those set out in the 2-4 following provisions of the Water Code: Subchapters C, D, E, and F 2-5 of Chapter 54. If any provisions of the laws cited in this 2-6 subsection are in conflict or inconsistent with any provision of 2-7 this Act, this Act prevails. 2-8 (b) The Authority may acquire surface and underground water 2-9 supplies from sources both inside and outside the boundaries of the 2-10 Authority and may conserve, store, transport, treat, purify, 2-11 distribute, sell and deliver water to persons inside and outside 2-12 the boundaries of the Authority. 2-13 (c) The Authority may purchase, construct, lease, or 2-14 otherwise acquire property, works, facilities, and improvements, 2-15 including existing as well as new works, facilities, and 2-16 improvements inside or outside the boundaries of the Authority, 2-17 necessary to carry out the rights, powers, and authority granted by 2-18 this Act and general law. Construction contracts of the Authority 2-19 shall be competitively bid as required by and in accordance with 2-20 Sections 271.021-271.071, Local Government Code. 2-21 (d) The Authority may enter into contracts with any persons 2-22 within or outside the boundaries of the Authority, on terms and 2-23 conditions the Board considers desirable for the performance of its 2-24 rights, powers, or authority under this Act. The contracts may 2-25 provide that they will continue in effect until bonds issued by the 3-1 Authority to finance the cost of facilities authorized by this Act, 3-2 and refunding bonds issued in lieu of those bonds, are paid. 3-3 Section 402.014, Local Government Code, applies to any contract 3-4 between the Authority and any city. 3-5 (e) The Authority may enter into contracts with others for 3-6 the supply or transport of water and may act jointly with others in 3-7 the performance of all functions and purposes of the Authority. 3-8 (f) No election is required by the Authority for approval of 3-9 contacts to carry out the general powers and duties of the 3-10 Authority. 3-11 (g) The Authority may acquire water rights under any law or 3-12 permit. 3-13 SECTION 5. WATER CONSERVATION PROGRAM. The Authority shall 3-14 adopt and implement a program of water conservation consistent with 3-15 rules and criteria duly adopted and enforceable by the Texas Water 3-16 Development Board for similarly situated entities in the region. 3-17 SECTION 6. EXCLUSION OF LAND. Upon mutual agreement between 3-18 the Board and the governing body of a political subdivision, the 3-19 land within a political subdivision may be excluded from the 3-20 Authority. Subsequent to any exclusion, the Authority shall notify 3-21 the City of Houston and the Harris-Galveston Coastal Subsidence 3-22 District of the political subdivision that was excluded. If a 3-23 political subdivision is excluded from the Authority, that 3-24 political subdivision shall no longer be represented on the Board 3-25 of the Authority as set out in Sections 9 and 10 of this Act. 4-1 SECTION 7. ANNEXATION. (a) Upon petition by its governing 4-2 board, and approval by the Authority's Board, all the land of a 4-3 political subdivision may be annexed to the Authority; provided, 4-4 however, consent from the City of Houston must be obtained prior to 4-5 adoption of the annexation order or resolution of the Authority's 4-6 Board. 4-7 (b) A political subdivision may be annexed to the Authority 4-8 either before or after bonds of the Authority are issued, and the 4-9 boundary change will not affect the validity of any such bonds. 4-10 (c) Section 43.071, Local Government Code, shall not apply 4-11 to the annexation of all or part of the Authority by the City of 4-12 Houston. 4-13 SECTION 8. TAXES; OTHER DISTRICTS. The Authority may not 4-14 impose, levy, assess, or collect taxes on any property, and the 4-15 Authority may not issue bonds or create indebtedness that would be 4-16 payable directly from ad valorem taxes levied by the Authority. 4-17 SECTION 9. INITIAL BOARD. (a) On the effective date of 4-18 this Act, the following shall constitute the initial Board of the 4-19 Authority: 4-20 (1) Three appointees from Tidwell Timbers Municipal 4-21 Utility District; 4-22 (2) Three appointees from Greenwood Municipal Utility 4-23 District; and 4-24 (3) Three appointees from Parkway Municipal Utility 4-25 District. 5-1 (b) The designation of each initial appointee shall be made 5-2 by resolution of the governing body of each of the above political 5-3 subdivisions as soon as is practicable following the effective date 5-4 of this Act. The resolution shall include the name of the 5-5 appointee, and the term of office for that appointee. Each 5-6 political subdivision shall initially appoint one member for a term 5-7 of 3 years, one for a term of 2 years and one for a term of 1 year. 5-8 SECTION 10. BOARD OF DIRECTORS. (a) After creation of the 5-9 Authority, the Board of Directors shall manage and control the 5-10 Authority. 5-11 (b) Terms of members of the Board shall be three years, 5-12 ending December 31 of the third year. Notwithstanding their terms 5-13 of appointment, any director may be removed with or without cause 5-14 at any time by resolution of the governing body of the political 5-15 subdivision by which such director was appointed. Successor 5-16 directors shall be appointed to serve the remaining term as 5-17 described in Subsection (d) of this section. 5-18 (c) The initial members shall meet and organize as soon as 5-19 practicable after the effective date of this Act and shall file 5-20 their official bonds and subscribe to the constitutional oath of 5-21 office. A director shall continue to serve in such capacity until 5-22 the director's successor is appointed and has taken the oath of 5-23 office. 5-24 (d) A vacancy in the office of director, whether caused by 5-25 the death, removal, disqualification, or resignation, or the 6-1 expiration of the term of office, shall be filled by appointment of 6-2 the governing body of the political subdivision that appointed the 6-3 director vacating the office. 6-4 (e) For each new political subdivision annexed to the 6-5 Authority, the Authority shall add three members to the Board to 6-6 represent that political subdivision to be appointed by the 6-7 governing body of that political subdivision. 6-8 (f) Each calendar year before April 1, the Board shall elect 6-9 a president, vice-president, secretary, and any other officers the 6-10 Board considers desirable. The president shall preside over 6-11 meetings of the Board. The vice-president shall preside in the 6-12 absence of the president. All directors shall be voting members of 6-13 the Board. The president, vice-president, secretary, and other 6-14 officers shall perform the duties and may exercise the powers 6-15 specifically given them by this Act and by resolution or order of 6-16 the Board. 6-17 (g) The Board may adopt bylaws consistent with this Act that 6-18 may be amended as necessary for the management and operation of the 6-19 Authority. 6-20 (h) To be qualified to serve as a member of the Board, a 6-21 director must be a resident of the State of Texas over 21 years of 6-22 age. 6-23 (i) A majority of the directors constitutes a quorum for 6-24 transaction of business, and the concurrence of a majority of 6-25 directors is required for any Board action to be taken. At least 7-1 one director from each represented political subdivision must be 7-2 present to constitute a quorum, and at least one director from each 7-3 represented political subdivision must vote with the majority for 7-4 any Board action to be taken. 7-5 SECTION 11. EMPLOYEES. The Board may employ a general 7-6 manager and such other employees as may be required, under such 7-7 terms and with such responsibilities as may be determined by the 7-8 Board; however, a director may not serve as both a director and as 7-9 the general manager or an employee of the Authority. 7-10 SECTION 12. GENERAL FINANCIAL AUTHORITY. (a) The Authority 7-11 may reimburse, from general revenues, bond proceeds, or other 7-12 available funds, any persons for all reasonable expenses incurred 7-13 in connection with the creation and establishment of the Authority, 7-14 including publication costs, legal fees, engineering fees, charges 7-15 for the services of other consultants, and other incidental costs. 7-16 (b) The Authority may borrow money from time to time to 7-17 carry out any of the powers and duties granted to the Authority 7-18 under this Act by: 7-19 (1) issuing and selling negotiable or nonnegotiable 7-20 notes and providing the terms and conditions of those notes and 7-21 rights of the holders of such notes payable from and secured by the 7-22 sources described in this Act; 7-23 (2) issuing and selling revenue bonds without the 7-24 necessity of any election and providing the terms and conditions of 7-25 such bonds and the rights of the holders of such bonds payable from 8-1 and secured by the sources described in this Act; and 8-2 (3) selling or delivering such notes or bonds to the 8-3 United States or any agency or instrumentality of the United States 8-4 or to the State of Texas or any agency or instrumentality of the 8-5 State of Texas when it is determined by the Board to be in the best 8-6 interest of the Authority. 8-7 (c) All Authority deposits and investments shall be governed 8-8 by Chapter 2256, Government Code (the Public Funds Investment Act) 8-9 and Chapter 2257, Government Code (the Public Funds Collateral 8-10 Act). 8-11 (d) The Authority may apply for, accept, and administer 8-12 grants, loans, and other assistance from the United States and any 8-13 agency or instrumentality of this state or any other state to carry 8-14 out the purpose of this Act and may enter into any agreement in 8-15 relation to those grants, loans, or other assistance that is not in 8-16 conflict with the constitution of this state. 8-17 (e) The Authority may: 8-18 (1) fix, charge, alter, and collect reasonable 8-19 rentals, rates, fees, and other charges for the use of any 8-20 facilities or for any services rendered by the Authority, that may 8-21 vary depending upon the type of service provided or the type of 8-22 customer receiving the service; 8-23 (2) provide the imposition of reasonable penalties for 8-24 any rentals, rates, fees, and charges that are delinquent; and 8-25 (3) comply with any duty to fix, charge, alter, and 9-1 collect the rentals, rates, fees, and charges sufficient to fulfill 9-2 any agreement with the holders of bonds or notes issued under this 9-3 Act. 9-4 SECTION 13. BONDS AND NOTES. The bonds of the Authority 9-5 shall be sold by either negotiated sale or competitive bid, and 9-6 issued in compliance with the Bond Procedures Act of 1981 (Article 9-7 717k-6, Vernon's Texas Civil Statutes). The bonds of the 9-8 Authority, other than refunding bonds, shall be issued subject to 9-9 the review and approval of the Texas Natural Resource Conservation 9-10 Commission unless such bonds are approved by, or sold to, any other 9-11 agency of the United States or of the State of Texas. 9-12 SECTION 14. FACILITIES; EMINENT DOMAIN. (a) The Authority 9-13 may construct, lay, maintain, and operate canals, laterals, 9-14 ditches, levees, pipelines, bridges, and all other facilities for 9-15 the conservation, transportation, treatment, purification, and 9-16 distribution of water together with service roads and all other 9-17 facilities incidental to and designated for use in connection with 9-18 the transportation, treatment, purification, and distribution of 9-19 water under, along, and across any railroad, railroad right-of-way, 9-20 canal, stream, pipeline, utility line, streets or alleys in cities 9-21 and public roads and highways. 9-22 (b) The Authority may exercise the power of eminent domain 9-23 to acquire by condemnation a fee simple or any other interest in 9-24 property located inside or outside the Authority if the property 9-25 interest is necessary or desirable for the exercise of the powers 10-1 conferred by this Act. The Authority must exercise the power of 10-2 eminent domain in the manner provided by Chapter 21, Property Code, 10-3 but the Authority is not required to deposit with the trial court 10-4 any money or bond, including bonds as provided by Section 10-5 21.021(a), Property Code. 10-6 (c) If the Authority, in the exercise of the power of 10-7 eminent domain or power of relocation or any other power granted 10-8 under this Act, makes necessary the relocation, raising, lowering, 10-9 rerouting, or changing the grade of or altering the construction of 10-10 any highway, railroad, electric transmission or distribution line, 10-11 telegraph or telephone properties and facilities, or pipeline, the 10-12 Authority shall accomplish this necessary relocation, raising, 10-13 lowering, rerouting, changing of grade, or alteration of 10-14 construction at the sole expense of the Authority. The term "sole 10-15 expense" means the actual cost of relocation, raising, lowering, 10-16 rerouting, change in grade, or alteration of construction in 10-17 providing comparable replacement facilities, after deducting from 10-18 the actual cost the net salvage value derived from the old 10-19 facility. 10-20 (d) The Authority is not required to give bond for appeal or 10-21 bond for costs in any condemnation suit or any other suit to which 10-22 it may be a party. 10-23 SECTION 15. AUTHORITY OFFICE AND MEETINGS. The Board may 10-24 designate and establish one or more offices for the Authority and 10-25 one or more meeting places for the Board of Directors within or 11-1 outside the Authority's boundaries. 11-2 SECTION 16. EMERGENCY. The importance of this legislation 11-3 and the crowded condition of the calendars in both houses create an 11-4 emergency and an imperative public necessity that the 11-5 constitutional rule requiring bills to be read on three several 11-6 days in each house be suspended, and this rule is hereby suspended, 11-7 and that this Act take effect and be in force from and after its 11-8 passage, and it is so enacted.