By: Lindsay S.B. No. 1909
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation, administration, powers, duties,
1-2 operation, and financing of the North Harris County Regional Water
1-3 Authority; granting the power of eminent domain and the authority
1-4 to issue bonds and to levy and collect taxes; providing a civil
1-5 penalty.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. GENERAL PROVISIONS
1-8 SECTION 1.01. CREATION. (a) A conservation and reclamation
1-9 district, to be known as the North Harris County Regional Water
1-10 Authority, is created in Harris County without the necessity of a
1-11 confirmation election. The district is a governmental agency and a
1-12 body politic and corporate.
1-13 (b) The district is created under and is essential to
1-14 accomplish the purpose of Section 59, Article XVI, Texas
1-15 Constitution.
1-16 SECTION 1.02. DEFINITIONS. In this Act:
1-17 (1) "Board" means the board of directors of the
1-18 district.
1-19 (2) "Commission" means the Texas Natural Resource
1-20 Conservation Commission.
1-21 (3) "Director" means a member of the board.
1-22 (4) "District" means the North Harris County Regional
1-23 Water Authority.
2-1 (5) "Local government" means a municipality, county,
2-2 river authority, or water district or authority acting under
2-3 Section 52, Article III, or Section 59, Article XVI, Texas
2-4 Constitution.
2-5 (6) "Person" has the meaning assigned by Section
2-6 311.005, Government Code.
2-7 (7) "Pollution" has the meaning assigned by Section
2-8 26.001, Water Code.
2-9 (8) "System" means a network of pipelines, conduits,
2-10 canals, pumping stations, force mains, treatment plants, and any
2-11 other construction, device, or related appurtenance used to treat
2-12 or transport water.
2-13 (9) "Water" means groundwater, percolating or
2-14 otherwise, and any lake, pond, impounding reservoir, spring, river,
2-15 stream, creek, canal, or any other surface water, natural or
2-16 artificial, navigable or nonnavigable.
2-17 SECTION 1.03. DESCRIPTION OF BOUNDARIES. (a) Except as
2-18 provided by Subsection (b) of this section, the district includes
2-19 all the territory contained within the following area, whether the
2-20 territory contains noncontiguous parcels of land or whether the
2-21 territory is located within the boundaries of any other
2-22 governmental entity or political subdivision of the state:
2-23 BEGINNING at the intersection of the Harris and Waller County
2-24 line with the north right-of-way line of US Highway 290;
2-25 THENCE northwest along the Harris and Waller County line to
3-1 the intersection with Spring Creek;
3-2 THENCE continuing southeasterly along said Harris and Waller
3-3 County line, with the meanders of Spring Creek to the intersection
3-4 of the Waller and Montgomery County line;
3-5 THENCE southeasterly along the Harris and Montgomery County
3-6 line continuing with the meanders of said Spring Creek; to the
3-7 intersection with the City of Houston, corporate limits;
3-8 THENCE along said City of Houston corporate limits the
3-9 following: south approximately one half mile; east approximately
3-10 one half mile to the City of Humble corporate limits; north along
3-11 said City of Humble corporate limits approximately one half mile to
3-12 aforementioned Spring Creek; east along Spring Creek to its
3-13 confluence with the San Jacinto River to the intersection of US
3-14 Highway 59; easterly and southerly along the take line for Lake
3-15 Houston to the intersection with the southeasterly right-of-way of
3-16 the Union Pacific Railroad southwesterly along said Union Pacific
3-17 Railroad for approximately two miles; south to the north end of
3-18 Duessen Parkway; southeast along the east side of Duessen Parkway
3-19 and along the north side of the access road to the intersection
3-20 with North Lake Houston Parkway.
3-21 THENCE departing said City of Houston corporate limits, west
3-22 along the north side of said North Lake Houston Parkway to the
3-23 beginning of Mount Houston Road, and continuing west on Mount
3-24 Houston Road to the 6900 block to the intersection of Suburban;
3-25 THENCE south along Suburban to the City of Houston corporate
4-1 limits;
4-2 THENCE along said City of Houston corporate limits, the
4-3 following: west to Hirsch Road; south along the west side of
4-4 Hirsch Road to Langley; west along the south side of Langley to the
4-5 southbound feeder road of US Highway 59; northeast along the west
4-6 side of the feeder road of US Highway 59 to Little York; west along
4-7 the south side of Little York to Bentley; north along the east side
4-8 of Bentley to Sagebrush; west along the north side of Sagebrush to
4-9 Halls Bayou; south along Halls Bayou to Little York; west along the
4-10 south side of Little York to Aldine Westfield Road; north along the
4-11 east sides of Aldine Westfield Road to its intersection with the
4-12 easterly extension of the City of Houston corporate limits; west to
4-13 the Hardy Toll Road; north along the Hardy Toll Road approximately
4-14 0.25 mile, east approximately 0.35 mile, north approximately 0.15
4-15 mile, west approximately 0.35 mile; northwest along the Hardy Toll
4-16 Road approximately 1 mile; southwesterly along an irregular path
4-17 generally west to Carby; west along Carby to Airline Dr.; south
4-18 along Airline Dr. to Canino; west along Canino to Sweetwater; north
4-19 along Sweetwater to West Road; west to Interstate 45/US 75; south
4-20 along Interstate 45/US 75 to south of Bluebell Rd.; southerly along
4-21 an irregular path generally south and west to West Mount Houston
4-22 Rd.; west along Mount Houston Road to a line east of Ella
4-23 Boulevard; south along a line generally parallel to Ella Blvd. to
4-24 south of W. Gulf Bank; west along the south side of W. Gulf Bank to
4-25 Tomball Parkway; northwest along Tomball Parkway approximately 1.5
5-1 miles; west along an irregular path to N. Houston-Rosslyn Rd.;
5-2 north along N. Houston-Rosslyn Rd. to Vogel Creek; west along Vogel
5-3 Creek to the FWD CRIP RR; south along the FWD CRIP RR to Logview;
5-4 west along Logview to Hollister; south along Hollister to White Oak
5-5 Bayou; east along White Oak Bayou to Twisting Vine; south along
5-6 Twisting Vine to West Little York, west along West Little York to
5-7 Fairbanks N. Houston; south along Fairbanks N. Houston to Cole
5-8 Creek; west along Cole Creek to Hempstead Highway; northwest along
5-9 Hempstead Highway to West Sam Houston Parkway North.
5-10 THENCE departing said City of Houston corporate limits and
5-11 continuing northwest along Hempstead Highway to US 290 at Spencer
5-12 Road;
5-13 THENCE northwest along US 290 to the intersection of the
5-14 Harris and Waller County line, the POINT OF BEGINNING.
5-15 (b) On annexation of any part of the territory of the
5-16 district by a municipality or incorporation by a municipality of
5-17 any part of the territory of the district, the municipality shall
5-18 assume a pro rata share of all debt of the district payable in
5-19 whole or in part by ad valorem taxes. The percentage of the
5-20 assumption shall be determined by multiplying the total debt of the
5-21 district payable in whole or in part from taxes by a fraction, the
5-22 numerator of which is the assessed value of the property to be
5-23 annexed or incorporated based on the most recent certified county
5-24 property tax rolls at the time of annexation or incorporation and
5-25 the denominator of which is the total assessed value of the
6-1 property of the district based on the most recent certified county
6-2 property tax rolls at the time of annexation or incorporation.
6-3 After annexation by a municipality of a portion of the territory of
6-4 the district or incorporation over any part of the territory of the
6-5 district, the district may not levy taxes on that territory, and
6-6 the territory is no longer considered a part of the district for
6-7 any purpose.
6-8 (c)(1) As used in this subsection, "planned community" means
6-9 and is limited to a planned community originally established
6-10 pursuant to the Urban Growth and New Community Development Act of
6-11 1970 (42 U.S.C. Section 4501 et seq.) of 15,000 acres or more
6-12 situated in two or more counties, with not more than 25 percent of
6-13 the territory of the planned community being within the district.
6-14 On receipt of a petition requesting the exclusion from the district
6-15 of territory comprising on the effective date of this Act or
6-16 hereafter comprising, but only if the added territory is on the
6-17 effective date of this Act contiguous to the planned community, all
6-18 or a portion of a planned community, which petition is signed by
6-19 the owners of at least a majority by area of the territory proposed
6-20 to be excluded from the district, the board shall promptly call,
6-21 give notice of, and conduct a hearing on such petition. A petition
6-22 submitted under this subsection must describe the boundaries of the
6-23 territory to be excluded from the district. For purposes of this
6-24 subsection, land ownerships separated only by the claims of title
6-25 of the state to the beds and banks of rivers and streams shall be
7-1 deemed to be contiguous.
7-2 (2) If on such hearing, the board finds that the
7-3 petition conforms substantially to the requirements of this
7-4 subsection, the board shall enter an order excluding such territory
7-5 and redefining the boundaries of the district and shall file a copy
7-6 of the order in the office of the county clerk of Harris County,
7-7 who shall record such order in the records of Harris County. After
7-8 the order is recorded, the excluded territory is no longer part of
7-9 the district; provided, however, that territory excluded under this
7-10 subsection is not released from the payment of its pro rata share
7-11 of the district's outstanding indebtedness, and the district shall
7-12 continue to levy taxes each year on the excluded territory at the
7-13 same rate levied on territory in the district until the taxes
7-14 collected from the excluded territory equal its pro rata share of
7-15 the outstanding indebtedness of the district at the time the
7-16 territory was excluded. The taxes collected under this subsection
7-17 shall be applied exclusively to the payment of the excluded
7-18 territory's pro rata share of indebtedness. The owner of all or
7-19 any part of the excluded territory may pay in full, at any time,
7-20 the owner's share of such indebtedness.
7-21 SECTION 1.04. FINDING OF BENEFIT. All the land and other
7-22 property included within the boundaries of the district will be
7-23 benefited by the works and projects that are to be accomplished by
7-24 the district under powers conveyed by this Act. The district is
7-25 created to serve a public use and benefit.
8-1 ARTICLE 2. ELECTION OF DIRECTORS
8-2 SECTION 2.01. METHOD OF ELECTION OF DIRECTORS. (a) The
8-3 directors of the district shall be elected according to the method
8-4 provided by this Act.
8-5 (b) Two directors shall be elected at large by the qualified
8-6 voters of the entire district, and one director shall be elected
8-7 from each of five single-member voting districts by the qualified
8-8 voters of that voting district.
8-9 (c) A person shall indicate on the application for a place
8-10 on the ballot the voting district that the person seeks to
8-11 represent or that the person seeks to represent the district at
8-12 large.
8-13 (d) As soon as practicable after each federal decennial
8-14 census and after any change in the district's boundaries, the board
8-15 shall redraw the single-member voting districts. At the first
8-16 election after the voting districts are redrawn, five new directors
8-17 shall be elected to represent the voting districts. The directors
8-18 elected shall draw lots to determine their terms.
8-19 SECTION 2.02. BOARD OF DIRECTORS. (a) The district is
8-20 governed by a board of seven directors.
8-21 (b) A vacancy in the office of director shall be filled by
8-22 appointment of the board until the next election for directors. If
8-23 the position is not scheduled to be filled at the election, the
8-24 person elected to fill the position shall serve only for the
8-25 remainder of the unexpired term.
9-1 (c) To be eligible to serve as director, a person must be a
9-2 qualified voter in the voting district from which the person is
9-3 elected or appointed if representing a voting district or in the
9-4 district if representing the district at large.
9-5 SECTION 2.03. SERVICE OF DIRECTORS. (a) Temporary
9-6 directors serve until initial directors are elected under Section
9-7 2.05 of this Act.
9-8 (b) Initial directors serve until permanent directors are
9-9 elected under Section 2.06 of this Act.
9-10 (c) Permanent directors serve staggered four-year terms.
9-11 (d) Each director must qualify to serve as director in the
9-12 manner provided by Chapter 49, Water Code. The district shall pay
9-13 the premiums for each director's bond required under that chapter.
9-14 (e) A director serves until the director's successor has
9-15 qualified.
9-16 SECTION 2.04. TEMPORARY DIRECTORS. (a) The temporary board
9-17 of directors is composed of:
9-18 (1) Jim Hufmeister - at large
9-19 (2) Charles Wiggins - at large
9-20 (3) Milton Johnston - Voting District No. 1
9-21 (4) Joe Beneke - Voting District No. 2
9-22 (5) Casey Westel - Voting District No. 3
9-23 (6) Don David - Voting District No. 4
9-24 (7) Robert Haas - Voting District No. 5
9-25 (b) If a temporary director fails to qualify for office, the
10-1 temporary directors who have qualified shall appoint a person to
10-2 fill the vacancy. If at any time there are fewer than three
10-3 qualified temporary directors, the commission shall appoint the
10-4 necessary number of persons to fill all vacancies on the board.
10-5 SECTION 2.05. INITIAL DIRECTORS' ELECTION. (a) The
10-6 temporary board of directors shall establish five single-member
10-7 voting districts in the manner described by Subsection (d), Section
10-8 49.103, Water Code, and shall call and hold an election to elect
10-9 seven initial directors.
10-10 (b) A person, including a temporary director, who desires to
10-11 be a candidate for the office of initial director may file an
10-12 application with the temporary board to have the candidate's name
10-13 printed on the ballot.
10-14 (c) At the initial directors' election, the temporary board
10-15 of directors shall have the name of any candidate filing for the
10-16 office of director as provided by Subsection (b) of this section
10-17 placed on the ballot and blank spaces to write in the names of
10-18 other persons who have declared their candidacies in accordance
10-19 with Subchapter C, Chapter 146, Election Code, as if the district
10-20 were a municipality. The temporary directors, at the time the vote
10-21 is canvassed, shall declare the person who receives the most votes
10-22 in each voting district to be elected as director for that voting
10-23 district and the persons who receive the two highest number of
10-24 votes in the district to be elected as directors for the district
10-25 at large. The district shall include the results of the directors'
11-1 election in its election report to the commission.
11-2 (d) Subsection (a), Section 41.001, Election Code, does not
11-3 apply to the initial directors' election held as provided by this
11-4 section.
11-5 (e) Except as provided by this section, the initial
11-6 directors' election must be conducted as provided by Section
11-7 49.102, Water Code, and by the Election Code.
11-8 SECTION 2.06. ELECTION OF DIRECTORS. On the first Saturday
11-9 in May of the first even-numbered year after the year in which the
11-10 district is created, an election shall be held in the district for
11-11 the election of the directors for Voting District Nos. 1, 2, 3, 4,
11-12 and 5, who shall each serve four-year terms, and the two directors
11-13 for the district at large, who shall each serve two-year terms.
11-14 Thereafter, on the first Saturday in May in each subsequent second
11-15 year, the appropriate number of directors shall be elected to the
11-16 board.
11-17 ARTICLE 3. ADMINISTRATIVE PROVISIONS
11-18 SECTION 3.01. ORGANIZATION OF BOARD. The board shall elect
11-19 from its members a president, vice president, secretary, and other
11-20 officers as necessary. A person elected to board office serves in
11-21 that capacity for a period of two years or until the person ceases
11-22 to be a director, whichever occurs first.
11-23 SECTION 3.02. MEETINGS AND ACTIONS OF BOARD. (a) The board
11-24 shall meet at least four times each year and may meet at any other
11-25 time considered appropriate.
12-1 (b) A majority of the directors constitutes a quorum for the
12-2 transaction of business. Except as otherwise provided in this Act,
12-3 the vote of a majority of directors is required for board action.
12-4 SECTION 3.03. INTEREST IN CONTRACT. A director who is
12-5 financially interested in a contract proposed to be executed by the
12-6 district for the purchase of property or services or the
12-7 construction of facilities shall disclose the interest to the board
12-8 and may not vote on acceptance of the contract.
12-9 SECTION 3.04. GENERAL MANAGER AND EMPLOYEES. The board may
12-10 employ a general manager and employees for a term and salary set by
12-11 the board.
12-12 SECTION 3.05. EMPLOYEE BONDS. (a) The general manager and
12-13 each employee or contractor of the district who is charged with the
12-14 collection, custody, or payment of any money of the district shall
12-15 execute a fidelity bond in an amount determined by the board and in
12-16 a form and with a surety approved by the board.
12-17 (b) The district shall pay the premiums on any bonds
12-18 required under this section.
12-19 ARTICLE 4. POWERS AND DUTIES
12-20 SECTION 4.01. GENERAL POWERS AND DUTIES. (a) The district
12-21 may:
12-22 (1) administer and enforce the terms of this Act;
12-23 (2) use district facilities and powers to accomplish
12-24 the purposes of this Act;
12-25 (3) coordinate the provision of water services inside,
13-1 into, or out of the district;
13-2 (4) execute contracts for the production, treatment,
13-3 or supply of water in the district; and
13-4 (5) sue and be sued in its corporate name.
13-5 (b) Except as expressly limited by this Act, the district
13-6 has all the rights, powers, privileges, authority, functions, and
13-7 duties necessary and convenient for accomplishing the purpose of
13-8 this Act that are provided by the general law of this state,
13-9 including Chapters 36 and 49, Water Code, applicable to a
13-10 conservation and reclamation district created under Section 59,
13-11 Article XVI, Texas Constitution. This Act prevails over any
13-12 provision of general law that is in conflict or inconsistent with
13-13 this Act.
13-14 (c) The rights, powers, privileges, authority, functions,
13-15 and duties of the district are subject to the continuing right of
13-16 supervision of the state to be exercised by and through the
13-17 commission.
13-18 SECTION 4.02. DISTRICT RULES. (a) The district shall adopt
13-19 and enforce rules reasonably required to implement this Act,
13-20 including rules governing procedure and practice before the board.
13-21 (b) The district shall print its rules and furnish copies of
13-22 the rules to any person on written request.
13-23 SECTION 4.03. FEES AND CHARGES. (a) The district may
13-24 establish fees and charges necessary to enable the district to
13-25 fulfill the district's obligations under this Act. A fee
14-1 established under this section may not exceed an amount necessary
14-2 to pay the operation cost of the district.
14-3 (b) The district may establish fees to recover capital
14-4 expenditures as provided by Chapter 395, Local Government Code.
14-5 SECTION 4.04. INSPECTIONS AND INVESTIGATIONS. The district
14-6 may enter public or private property in the district to inspect or
14-7 investigate conditions relating to the district's authorized
14-8 purposes under the same provisions and restrictions applicable to
14-9 the commission under general law.
14-10 SECTION 4.05. HEARING AND ORDER. (a) The board may:
14-11 (1) hold hearings, receive evidence from a party in
14-12 interest who appears before the board, compel the attendance of
14-13 witnesses, and make findings of fact and determinations with
14-14 respect to administering this Act or any order or rule of the
14-15 district; and
14-16 (2) delegate to one or more of its members or
14-17 employees the authority to take testimony and administer oaths in a
14-18 hearing held or authorized to be held by the district.
14-19 (b) An order of the board must be:
14-20 (1) in the district's name; and
14-21 (2) attested by proper members of the board under the
14-22 district's rules.
14-23 SECTION 4.06. CIVIL PENALTY; INJUNCTION. (a) A person who
14-24 violates a rule, permit, or order of the district is subject to a
14-25 civil penalty of not less than $50 and not more than $5,000 for
15-1 each violation or each day of a continuing violation.
15-2 (b) The district may sue to recover the penalty in a
15-3 district court in the county where the violation occurred. The
15-4 penalty shall be paid to the district.
15-5 (c) The district may sue for injunctive relief in a district
15-6 court in the county where a violation of a district rule, permit,
15-7 or order occurs or is threatened to occur. The court may grant to
15-8 the district, without bond or other undertaking, a prohibitory or
15-9 mandatory injunction that the facts warrant, including a temporary
15-10 restraining order, temporary injunction, or permanent injunction.
15-11 (d) The district may sue for injunctive relief and a civil
15-12 penalty in the same proceeding.
15-13 SECTION 4.07. COURT REVIEW. (a) A person who is adversely
15-14 affected by a rule, act, or order of the district may sue the
15-15 district in district court to set aside the rule, act, or order.
15-16 (b) A suit brought under Subsection (a) of this section must
15-17 be filed not later than the 60th day after the date on which the
15-18 rule, act, or order takes effect.
15-19 (c) The standard for review for a suit brought under
15-20 Subsection (a) of this section is by trial de novo.
15-21 SECTION 4.08. WATER CONTROL PLANS. The district by rule
15-22 shall, as needed but not less frequently than every five years,
15-23 develop, prepare, revise, and adopt comprehensive water supply
15-24 plans for various areas of the district. The plans must be
15-25 consistent with standards adopted by the commission and should
16-1 include 10-year, 20-year, and 50-year projections of water needs
16-2 within the district.
16-3 SECTION 4.09. ACQUISITION, CONSTRUCTION, AND OPERATION OF
16-4 SYSTEMS. The district may:
16-5 (1) acquire and provide by purchase, gift, or lease a
16-6 water treatment or supply service within the district;
16-7 (2) design, finance, or construct a water treatment or
16-8 supply system and provide wholesale water services within the
16-9 district;
16-10 (3) operate or sell a water treatment or supply system
16-11 the district constructs or acquires; and
16-12 (4) contract with any person to operate or maintain a
16-13 water treatment or supply system the person owns.
16-14 SECTION 4.10. SYSTEM CONTRACTS. (a) The district may
16-15 contract to receive, treat, and supply water to or from any person
16-16 in or out of the district.
16-17 (b) In a contract under this section, the district shall set
16-18 fees according to:
16-19 (1) the quality and quantity of the water;
16-20 (2) the difficulty in treating the water;
16-21 (3) operation and maintenance expenses and debt
16-22 retirement service costs; and
16-23 (4) any other reasonable consideration.
16-24 SECTION 4.11. SALE OR REUSE OF WATER OR BY-PRODUCT. The
16-25 district may store, sell, or reuse:
17-1 (1) water; or
17-2 (2) any by-product from the district's operation.
17-3 SECTION 4.12. EMINENT DOMAIN. The district may exercise the
17-4 power of eminent domain under Chapter 21, Property Code, to acquire
17-5 property of any kind to further authorized district purposes.
17-6 SECTION 4.13. RELOCATION OF FACILITIES. If the district
17-7 requires relocation, raising, lowering, rerouting, changing the
17-8 grade of, or altering the construction of a railroad, highway,
17-9 pipeline, or an electric transmission or distribution, telegraph,
17-10 or telephone line conduit, pole, or facility, the district shall
17-11 pay the cost of that action so as to provide comparable replacement
17-12 of any replaced facility, less the replaced facility's net salvage
17-13 value.
17-14 SECTION 4.14. USE OF PUBLIC EASEMENTS. (a) The district
17-15 may use a public roadway, street, alley, or easement to accomplish
17-16 district purposes without the necessity of securing a franchise or
17-17 other governmental agreement. The use is subject to the authority
17-18 of a county or municipality to require the relocation of
17-19 facilities, at the expense of the district, to permit the widening
17-20 or straightening of a road. A county must give the district 30
17-21 days' notice that relocation is required and must specify the new
17-22 location for the facilities along the right-of-way of the road.
17-23 (b) The district may not alter or damage a portion of the
17-24 state highway system or a county road without first obtaining the
17-25 written consent of the Texas Department of Transportation or the
18-1 county, as applicable. The placement of a district facility in
18-2 state or county highway right-of-way is subject to regulation by
18-3 the Texas Department of Transportation or the county, as
18-4 applicable.
18-5 SECTION 4.15. ACQUISITION AND DISPOSITION OF PROPERTY.
18-6 (a) The district may purchase, lease, acquire by gift, maintain,
18-7 use, or operate property of any kind that is appropriate for the
18-8 exercise of the district's function.
18-9 (b) The board may sell to the highest bidder, at a public or
18-10 private sale, or may exchange any property owned by the district
18-11 that is not required to carry out the district's purposes. Before
18-12 conducting a public or a private sale of property, the district
18-13 shall give notice of its intent to sell the property by publishing
18-14 notice once a week for two consecutive weeks in a newspaper of
18-15 general circulation in the district.
18-16 SECTION 4.16. ACQUISITION OF FACILITY. The district may
18-17 acquire, construct, extend, improve, maintain, reconstruct, use, or
18-18 operate any facility necessary or convenient to the exercise of the
18-19 district's rights, powers, privileges, authority, functions, and
18-20 duties.
18-21 SECTION 4.17. CONTRACTS. (a) The district may make
18-22 contracts and execute instruments necessary or convenient to the
18-23 exercise of the district's rights, powers, privileges, authority,
18-24 functions, and duties. The district may not make a contract with a
18-25 term greater than 50 years.
19-1 (b) This section does not prohibit the district from
19-2 purchasing surplus property from the United States through a
19-3 negotiated contract without bids.
19-4 (c) An officer, agent, or employee of the district who is
19-5 financially interested in a contract of the type described in
19-6 Subsection (b) of this section shall disclose the interest to the
19-7 board before the board votes on the acceptance of the contract.
19-8 (d) Notwithstanding any provision of a municipality's
19-9 charter, a contract between the district and the municipality is
19-10 not required to be submitted to the municipality's electorate.
19-11 (e) Notwithstanding any other provision of this Act, any
19-12 contract of the district must meet the requirements of Chapter 171,
19-13 Local Government Code.
19-14 SECTION 4.18. COOPERATIVE AGREEMENTS. The district may
19-15 enter into cooperative agreements with other local governments,
19-16 state agencies, or agencies of the United States to accomplish the
19-17 district's purposes.
19-18 ARTICLE 5. NOTES, BONDS, AND TAX PROVISIONS
19-19 SECTION 5.01. REVENUE NOTES. (a) The board, without the
19-20 necessity of an election, may borrow money on negotiable notes of
19-21 the district to be paid solely from the revenues derived from:
19-22 (1) the ownership of all or a designated part of the
19-23 district's works, plants, improvements, facilities, or equipment
19-24 after deduction of the reasonable cost of maintaining and operating
19-25 the facilities; or
20-1 (2) contracts between the district and any person,
20-2 including a local government.
20-3 (b) The notes may be first or subordinate lien notes at the
20-4 board's discretion. An obligation may not be a charge on the
20-5 property of the district or on taxes levied or collected by the
20-6 district. An obligation may only be a charge on revenues pledged
20-7 for the payment of the obligation. A tax levied or collected by
20-8 the district may not be used to pay any part of the obligation.
20-9 SECTION 5.02. BOND ANTICIPATION NOTES; TAX ANTICIPATION
20-10 NOTES. (a) The board may declare an emergency if funds are not
20-11 available to pay the principal of and interest on any bonds of the
20-12 district payable in whole or in part from taxes or to meet any
20-13 other needs of the district and may issue negotiable tax
20-14 anticipation notes or negotiable bond anticipation notes to borrow
20-15 the money needed by the district without advertising or giving
20-16 notice of the sale. A bond anticipation note or tax anticipation
20-17 note matures within one year of its issuance date.
20-18 (b) Tax anticipation notes may be issued for any purpose for
20-19 which the district is authorized to levy taxes. Tax anticipation
20-20 notes shall be secured with the proceeds of taxes to be levied by
20-21 the district in the 12-month period following the date of issuance.
20-22 The board may agree with the purchasers of the notes that the board
20-23 will levy a sufficient tax to pay the principal of and interest on
20-24 the notes and to pay the costs of collecting the taxes.
20-25 (c) A bond anticipation note may be issued for any purpose
21-1 for which a bond of the district may be issued or to refund
21-2 previously issued bond anticipation notes. A district may covenant
21-3 with the purchasers of the bond anticipation notes that the
21-4 district will use the proceeds of sale of any bonds in the process
21-5 of issuance to refund the bond anticipation notes. The board shall
21-6 use the proceeds received from sale of the bonds in the process of
21-7 issuance to pay principal, interest, or redemption price on the
21-8 bond anticipation notes.
21-9 SECTION 5.03. BONDS. (a) To carry out a power or authority
21-10 conferred by this Act, the district may issue bonds secured by a
21-11 pledge of ad valorem taxes or of all or part of the revenues
21-12 accruing to the district from a source other than ad valorem taxes,
21-13 including money received from tolls, charges, the sale of water or
21-14 other products, and the provision of services.
21-15 (b) The district's bonds shall:
21-16 (1) be authorized by board resolution;
21-17 (2) be issued in the district's name;
21-18 (3) be signed by the president or vice president of
21-19 the board;
21-20 (4) be attested by the secretary of the board; and
21-21 (5) bear the district's seal.
21-22 (c) The board may prescribe the form, denomination, and
21-23 interest rate of a bond issued by the district, except that a bond
21-24 must mature, serially or otherwise, not more than 50 years after
21-25 its issuance date. The board may sell a bond at a price and under
22-1 terms that the board determines to be the most advantageous
22-2 reasonably available. A district bond may be made redeemable
22-3 before maturity at times and prices prescribed in the bond. A
22-4 district bond may be secured by an indenture of trust with a
22-5 corporate trustee.
22-6 (d) The district may issue bonds in more than one series as
22-7 required for carrying out the purposes of this Act. The district
22-8 may, in issuing bonds secured by the district's ad valorem taxes or
22-9 by revenues, reserve the right to issue additional bonds secured by
22-10 the district's ad valorem taxes or by revenues that are on a parity
22-11 with or are senior or subordinate to the bonds issued earlier.
22-12 (e) The resolution authorizing the bonds or the trust
22-13 indenture securing the bonds may specify additional provisions that
22-14 constitute a contract between the district and its bondholders.
22-15 The board may provide:
22-16 (1) for additional bond provisions; and
22-17 (2) for a corporate trustee or receiver to take
22-18 possession of the district's facilities if the district defaults.
22-19 (f) Sections 36.171 and 49.181, Water Code, do not apply to
22-20 bonds or notes issued by the district.
22-21 SECTION 5.04. REFUNDING BONDS. (a) The district may issue
22-22 refunding bonds to refund outstanding bonds and interest authorized
22-23 by this Act.
22-24 (b) Refunding bonds may:
22-25 (1) be issued to refund one or more series of
23-1 outstanding bonds;
23-2 (2) combine the pledges for the outstanding bonds for
23-3 the security of the refunding bonds; and
23-4 (3) be secured by other or additional revenues.
23-5 (c) The provisions of this Act that apply to the district's
23-6 issuance of other bonds, their security, their approval by the
23-7 attorney general, and the remedies of the holders apply to
23-8 refunding bonds.
23-9 (d) Refunding bonds shall be registered by the comptroller
23-10 of public accounts on surrender and cancellation of the bonds to be
23-11 refunded. Alternatively, the resolution authorizing the issuance
23-12 of refunding bonds may provide that the bonds shall be sold and the
23-13 resulting proceeds deposited in the bank where the bonds to be
23-14 refunded are payable. In the latter case, the refunding bonds may
23-15 be issued in an amount sufficient to pay the principal and interest
23-16 of the bonds to be refunded to their option or maturity date. The
23-17 comptroller of public accounts shall register the refunding bonds
23-18 without concurrent surrender and cancellation of the bonds to be
23-19 refunded.
23-20 SECTION 5.05. APPROVAL AND REGISTRATION OF BONDS. After the
23-21 district authorizes bonds, the district shall submit the bonds and
23-22 the record relating to their issuance to the attorney general for
23-23 approval. If the bonds are secured by a pledge of the proceeds of
23-24 a contract between the district and a municipality or other
23-25 governmental agency, authority, or district, the district shall
24-1 submit to the attorney general a copy of the contract and the
24-2 proceedings of the municipality or other governmental agency,
24-3 authority, or district authorizing the contract. If the attorney
24-4 general finds that the bonds have been authorized and each contract
24-5 has been made in accordance with the constitution and laws of this
24-6 state, the attorney general shall approve the bonds and contracts.
24-7 On approval, the bonds shall be registered by the comptroller of
24-8 public accounts.
24-9 SECTION 5.06. BOND ELECTION. (a) The district may not
24-10 issue bonds secured in whole or in part by ad valorem taxes without
24-11 an election.
24-12 (b) The district may issue revenue bonds without an
24-13 election.
24-14 SECTION 5.07. AUTHORIZED INVESTMENTS. Bonds and refunding
24-15 bonds of the district are legal, eligible, and authorized
24-16 investments for a public fund of the state, including the permanent
24-17 school fund, or a state agency.
24-18 SECTION 5.08. AD VALOREM TAXATION. (a) The qualified
24-19 voters in the district may, in an election called for the purpose,
24-20 authorize the district to levy and collect ad valorem taxes to pay
24-21 the principal of and interest on bonds issued by the district.
24-22 (b) The qualified voters in the district may, in an election
24-23 called for the purpose, authorize the district to levy and collect
24-24 ad valorem taxes for the maintenance of the district and its
24-25 improvements.
25-1 ARTICLE 6. MISCELLANEOUS PROVISIONS
25-2 SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
25-3 (a) The proper and legal notice of the intention to introduce this
25-4 Act, setting out the general substance of this Act, has been
25-5 published as provided by law, and the notice and a copy of this Act
25-6 have been furnished to all persons, agencies, officials, or
25-7 entities to which they are required to be furnished by the
25-8 constitution and other laws of this state, including the governor,
25-9 who has submitted the notice and the Act to the Texas Natural
25-10 Resource Conservation Commission.
25-11 (b) The Texas Natural Resource Conservation Commission has
25-12 filed its recommendations relating to this Act with the governor,
25-13 lieutenant governor, and speaker of the house of representatives
25-14 within the required time.
25-15 (c) All requirements of the constitution and laws of this
25-16 state and of the rules and procedures of the legislature with
25-17 respect to the notice, introduction, and passage of this Act are
25-18 fulfilled and accomplished.
25-19 SECTION 6.02. EMERGENCY. The importance of this legislation
25-20 and the crowded condition of the calendars in both houses create an
25-21 emergency and an imperative public necessity that the
25-22 constitutional rule requiring bills to be read on three several
25-23 days in each house be suspended, and this rule is hereby suspended,
25-24 and that this Act take effect and be in force from and after its
25-25 passage, and it is so enacted.