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.