By Lindsay S.B. No. 1909
75R3699 MI-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of the North Harris County Regional Water
1-4 Authority; granting the power of eminent domain and the authority
1-5 to issue bonds; providing a civil 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 subject to approval at a
1-11 confirmation election held under Section 2.05 of this Act. The
1-12 district is a governmental agency and a 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.
1-24 (5) "Local government" means a municipality, county,
2-1 river authority, or water district or authority acting under
2-2 Section 52, Article III, or Section 59, Article XVI, Texas
2-3 Constitution.
2-4 (6) "Person" has the meaning assigned by Section
2-5 311.005, Government Code.
2-6 (7) "Pollution" has the meaning assigned by Section
2-7 26.001, Water Code.
2-8 (8) "System" means a network of pipelines, conduits,
2-9 canals, pumping stations, force mains, treatment plants, and any
2-10 other construction, device, or related appurtenance used to treat
2-11 or transport water.
2-12 (9) "Water" means groundwater, percolating or
2-13 otherwise, and any lake, pond, impounding reservoir, spring, river,
2-14 stream, creek, canal, or any other surface water, natural or
2-15 artificial, navigable or nonnavigable.
2-16 SECTION 1.03. DESCRIPTION OF BOUNDARIES. (a) Except as
2-17 provided by Subsection (b) of this section, the district includes
2-18 all the territory contained within the following area, whether the
2-19 territory contains noncontiguous parcels of land or whether the
2-20 territory is located within the boundaries of any other
2-21 governmental entity or political subdivision of the state:
2-22 BEGINNING at the intersection of the Harris and Waller County
2-23 line with the north right-of-way line of US Highway 290;
2-24 THENCE northwest along the Harris and Waller County line to
2-25 the intersection with Spring Creek;
2-26 THENCE continuing southeasterly along said Harris and Waller
2-27 County line, with the meanders of Spring Creek to the intersection
3-1 of the Waller and Montgomery County line;
3-2 THENCE southeasterly along the Harris and Montgomery County
3-3 line continuing with the meanders of said Spring Creek; to the
3-4 intersection with the City of Houston, corporate limits;
3-5 THENCE along said City of Houston corporate limits the
3-6 following: south approximately one half mile; east approximately
3-7 one half mile to the City of Humble corporate limits; north along
3-8 said City of Humble corporate limits approximately one half mile to
3-9 aforementioned Spring Creek; east along Spring Creek to its
3-10 confluence with the San Jacinto River to the intersection of US
3-11 Highway 59; easterly and southerly along the take line for Lake
3-12 Houston to the intersection with the southeasterly right-of-way of
3-13 the Union Pacific Railroad southwesterly along said Union Pacific
3-14 Railroad for approximately two miles; south to the north end of
3-15 Duessen Parkway; southeast along the east side of Duessen Parkway
3-16 and along the north side of the access road to the intersection
3-17 with North Lake Houston Parkway.
3-18 THENCE departing said City of Houston corporate limits, west
3-19 along the north side of said North Lake Houston Parkway to the
3-20 beginning of Mount Houston Road, and continuing west on Mount
3-21 Houston Road to the 6900 block to the intersection of Suburban;
3-22 THENCE south along Suburban to the City of Houston corporate
3-23 limits;
3-24 THENCE along said City of Houston corporate limits, the
3-25 following: west to Hirsch Road; south along the west side of
3-26 Hirsch Road to Langley; west along the south side of Langley to the
3-27 southbound feeder road of US Highway 59; northeast along the west
4-1 side of the feeder road of US Highway 59 to Little York; west along
4-2 the south side of Little York to Bentley; north along the east side
4-3 of Bentley to Sagebrush; west along the north side of Sagebrush to
4-4 Halls Bayou; south along Halls Bayou to Little York; west along the
4-5 south side of Little York to Aldine Westfield Road; north along the
4-6 east sides of Aldine Westfield Road to its intersection with the
4-7 easterly extension of the City of Houston corporate limits; west to
4-8 the Hardy Toll Road; north along the Hardy Toll Road approximately
4-9 0.25 mile, east approximately 0.35 mile, north approximately 0.15
4-10 mile, west approximately 0.35 mile; northwest along the Hardy Toll
4-11 Road approximately 1 mile; southwesterly along an irregular path
4-12 generally west to Carby; west along Carby to Airline Dr.; south
4-13 along Airline Dr. to Canino; west along Canino to Sweetwater; north
4-14 along Sweetwater to West Road; west to Interstate 45/US 75; south
4-15 along Interstate 45/US 75 to south of Bluebell Rd.; southerly along
4-16 an irregular path generally south and west to West Mount Houston
4-17 Rd.; west along Mount Houston Road to a line east of Ella
4-18 Boulevard; south along a line generally parallel to Ella Blvd. to
4-19 south of W. Gulf Bank; west along the south side of W. Gulf Bank to
4-20 Tomball Parkway; northwest along Tomball Parkway approximately 1.5
4-21 miles; west along an irregular path to N. Houston-Rosslyn Rd.;
4-22 north along N. Houston-Rosslyn Rd. to Vogel Creek; west along Vogel
4-23 Creek to the FWD CRIP RR; south along the FWD CRIP RR to Logview;
4-24 west along Logview to Hollister; south along Hollister to White Oak
4-25 Bayou; east along White Oak Bayou to Twisting Vine; south along
4-26 Twisting Vine to West Little York, west along West Little York to
4-27 Fairbanks N. Houston; south along Fairbanks N. Houston to Cole
5-1 Creek; west along Cole Creek to Hempstead Highway; northwest along
5-2 Hempstead Highway to West Sam Houston Parkway North.
5-3 THENCE departing said City of Houston corporate limits and
5-4 continuing northwest along Hempstead Highway to US 290 at Spencer
5-5 Road;
5-6 THENCE northwest along US 290 to the intersection of the
5-7 Harris and Waller County line, the POINT OF BEGINNING.
5-8 (b) If a municipality annexes area within the boundaries of
5-9 the district, the boundaries of the district are adjusted to
5-10 exclude the area annexed. No further action of the board is
5-11 required. If at the time area is excluded from the district as
5-12 described by this section the district has outstanding bonded
5-13 indebtedness secured by ad valorem taxes, the area excluded is not
5-14 released from its pro rata share of the indebtedness. An owner of
5-15 land within the excluded area that is subject to the pledged taxes
5-16 shall continue to pay taxes on the land or may pay off the owner's
5-17 pro rata share of the debt for which the taxes are pledged.
5-18 SECTION 1.04. FINDING OF BENEFIT. All the land and other
5-19 property included within the boundaries of the district will be
5-20 benefited by the works and projects that are to be accomplished by
5-21 the district under powers conveyed by this Act. The district is
5-22 created to serve a public use and benefit.
5-23 ARTICLE 2. ELECTION OF DIRECTORS AND CONFIRMATION ELECTION
5-24 SECTION 2.01. METHOD OF ELECTION OF DIRECTORS. (a) The
5-25 directors of the district shall be elected according to the method
5-26 provided by this Act.
5-27 (b) Three directors shall be elected at large by the
6-1 qualified voters of the entire district, and one director shall be
6-2 elected from each of four single-member voting districts by the
6-3 qualified voters of that voting district.
6-4 (c) A person shall indicate on the application for a place
6-5 on the ballot the voting district that the person seeks to
6-6 represent or that the person seeks to represent the district at
6-7 large.
6-8 (d) As soon as practicable after each federal decennial
6-9 census and after any change in the district's boundaries, the board
6-10 shall redraw the single-member voting districts. At the first
6-11 election after the voting districts are redrawn, four new directors
6-12 shall be elected to represent the voting districts. The directors
6-13 elected shall draw lots to determine their terms.
6-14 SECTION 2.02. BOARD OF DIRECTORS. (a) The district is
6-15 governed by a board of seven directors.
6-16 (b) A vacancy in the office of director shall be filled by
6-17 appointment of the board until the next election for directors. If
6-18 the position is not scheduled to be filled at the election, the
6-19 person elected to fill the position shall serve only for the
6-20 remainder of the unexpired term.
6-21 (c) To be eligible to serve as director, a person must be a
6-22 qualified voter in the voting district from which the person is
6-23 elected or appointed if representing a voting district or in the
6-24 district if representing the district at large.
6-25 SECTION 2.03. SERVICE OF DIRECTORS. (a) Temporary
6-26 directors serve until initial directors are elected under Section
6-27 2.05 of this Act.
7-1 (b) Initial directors serve until permanent directors are
7-2 elected under Section 2.06 of this Act.
7-3 (c) Permanent directors serve staggered four-year terms.
7-4 (d) Each director must qualify to serve as director in the
7-5 manner provided by Chapter 49, Water Code. The district shall pay
7-6 the premiums for each director's bond required under that chapter.
7-7 (e) A director serves until the director's successor has
7-8 qualified.
7-9 SECTION 2.04. TEMPORARY DIRECTORS. (a) The temporary board
7-10 of directors is composed of:
7-11 (1) ____________ - at large
7-12 (2) ____________ - at large
7-13 (3) ____________ - at large
7-14 (4) ____________ - Voting District No. 1
7-15 (5) ____________ - Voting District No. 2
7-16 (6) ____________ - Voting District No. 3
7-17 (7) ____________ - Voting District No. 4
7-18 (b) If a temporary director fails to qualify for office, the
7-19 temporary directors who have qualified shall appoint a person to
7-20 fill the vacancy. If at any time there are fewer than three
7-21 qualified temporary directors, the commission shall appoint the
7-22 necessary number of persons to fill all vacancies on the board.
7-23 SECTION 2.05. CONFIRMATION AND INITIAL DIRECTORS' ELECTION.
7-24 (a) The temporary board of directors shall establish four
7-25 single-member voting districts in the manner described by Section
7-26 49.103(d), Water Code, and shall call and hold an election to
7-27 confirm establishment of the district and to elect seven initial
8-1 directors.
8-2 (b) A person, including a temporary director, who desires to
8-3 be a candidate for the office of initial director may file an
8-4 application with the temporary board to have the candidate's name
8-5 printed on the ballot.
8-6 (c) At the confirmation and initial directors' election, the
8-7 temporary board of directors shall have the name of any candidate
8-8 filing for the office of director as provided by Subsection (b) of
8-9 this section placed on the ballot and blank spaces to write in the
8-10 names of other persons. If the district is created at the
8-11 election, the temporary directors, at the time the vote is
8-12 canvassed, shall declare the person who receives the most votes in
8-13 each voting district to be elected as director for that voting
8-14 district and the persons who receive the three highest number of
8-15 votes in the district to be elected as directors for the district
8-16 at large. The district shall include the results of the directors'
8-17 election in its election report to the commission.
8-18 (d) Section 41.001(a), Election Code, does not apply to a
8-19 confirmation and initial directors' election held as provided by
8-20 this section.
8-21 (e) Except as provided by this section, a confirmation and
8-22 initial directors' election must be conducted as provided by
8-23 Section 49.102, Water Code, and by the Election Code.
8-24 SECTION 2.06. ELECTION OF DIRECTORS. On the first Saturday
8-25 in May of the first even-numbered year after the year in which the
8-26 district is authorized to be created at a confirmation election, an
8-27 election shall be held in the district for the election of the
9-1 directors for Voting District Nos. 1, 2, 3, and 4, who shall each
9-2 serve four-year terms, and the three directors for the district at
9-3 large, who shall each serve two-year terms. Thereafter, on the
9-4 first Saturday in May in each subsequent second year, the
9-5 appropriate number of directors shall be elected to the board.
9-6 ARTICLE 3. ADMINISTRATIVE PROVISIONS
9-7 SECTION 3.01. ORGANIZATION OF BOARD. The board shall elect
9-8 from its members a president, vice president, secretary, and other
9-9 officers as necessary. A person elected to board office serves in
9-10 that capacity for a period of two years or until the person ceases
9-11 to be a director, whichever occurs first.
9-12 SECTION 3.02. MEETINGS AND ACTIONS OF BOARD. (a) The board
9-13 shall meet at least four times each year and may meet at any other
9-14 time considered appropriate.
9-15 (b) A majority of the directors constitutes a quorum for the
9-16 transaction of business. Except as otherwise provided in this Act,
9-17 the vote of a majority of directors is required for board action.
9-18 SECTION 3.03. INTEREST IN CONTRACT. A director who is
9-19 financially interested in a contract proposed to be executed by the
9-20 district for the purchase of property or services or the
9-21 construction of facilities shall disclose the interest to the board
9-22 and may not vote on acceptance of the contract.
9-23 SECTION 3.04. GENERAL MANAGER AND EMPLOYEES. The board may
9-24 employ a general manager and employees for a term and salary set by
9-25 the board.
9-26 SECTION 3.05. EMPLOYEE BONDS. (a) The general manager and
9-27 each employee or contractor of the district who is charged with the
10-1 collection, custody, or payment of any money of the district shall
10-2 execute a fidelity bond in an amount determined by the board and in
10-3 a form and with a surety approved by the board.
10-4 (b) The district shall pay the premiums on any bonds
10-5 required under this section.
10-6 ARTICLE 4. POWERS AND DUTIES
10-7 SECTION 4.01. GENERAL POWERS AND DUTIES. (a) The district
10-8 may:
10-9 (1) administer and enforce the terms of this Act;
10-10 (2) use district facilities and powers to accomplish
10-11 the purposes of this Act;
10-12 (3) coordinate the provision of water services inside,
10-13 into, or out of the district;
10-14 (4) execute contracts for the production, treatment,
10-15 or supply of water in the district; and
10-16 (5) sue and be sued in its corporate name.
10-17 (b) Except as expressly limited by this Act, the district
10-18 has all the rights, powers, privileges, authority, functions, and
10-19 duties necessary and convenient for accomplishing the purpose of
10-20 this Act that are provided by the general law of this state,
10-21 including Chapters 36 and 49, Water Code, applicable to a
10-22 conservation and reclamation district created under Section 59,
10-23 Article XVI, Texas Constitution. This Act prevails over any
10-24 provision of general law that is in conflict or inconsistent with
10-25 this Act.
10-26 (c) The rights, powers, privileges, authority, functions,
10-27 and duties of the district are subject to the continuing right of
11-1 supervision of the state to be exercised by and through the
11-2 commission.
11-3 SECTION 4.02. DISTRICT RULES. (a) The district shall adopt
11-4 and enforce rules reasonably required to implement this Act,
11-5 including rules governing procedure and practice before the board.
11-6 (b) The district shall print its rules and furnish copies of
11-7 the rules to any person on written request.
11-8 SECTION 4.03. FEES AND CHARGES. (a) The district may
11-9 establish fees and charges necessary to enable the district to
11-10 fulfill the district's obligations under this Act. A fee
11-11 established under this section may not exceed an amount necessary
11-12 to pay the operation cost of the district.
11-13 (b) The district may establish fees to recover capital
11-14 expenditures as provided by Chapter 395, Local Government Code.
11-15 SECTION 4.04. INSPECTIONS AND INVESTIGATIONS. The district
11-16 may enter public or private property in the district to inspect or
11-17 investigate conditions relating to the district's authorized
11-18 purposes under the same provisions and restrictions applicable to
11-19 the commission under general law.
11-20 SECTION 4.05. HEARING AND ORDER. (a) The board may:
11-21 (1) hold hearings, receive evidence from a party in
11-22 interest who appears before the board, compel the attendance of
11-23 witnesses, and make findings of fact and determinations with
11-24 respect to administering this Act or any order or rule of the
11-25 district; and
11-26 (2) delegate to one or more of its members or
11-27 employees the authority to take testimony and administer oaths in a
12-1 hearing held or authorized to be held by the district.
12-2 (b) An order of the board must be:
12-3 (1) in the district's name; and
12-4 (2) attested by proper members of the board under the
12-5 district's rules.
12-6 SECTION 4.06. CIVIL PENALTY; INJUNCTION. (a) A person who
12-7 violates a rule, permit, or order of the district is subject to a
12-8 civil penalty of not less than $50 and not more than $5,000 for
12-9 each violation or each day of a continuing violation.
12-10 (b) The district may sue to recover the penalty in a
12-11 district court in the county where the violation occurred. The
12-12 penalty shall be paid to the district.
12-13 (c) The district may sue for injunctive relief in a district
12-14 court in the county where a violation of a district rule, permit,
12-15 or order occurs or is threatened to occur. The court may grant to
12-16 the district, without bond or other undertaking, a prohibitory or
12-17 mandatory injunction that the facts warrant, including a temporary
12-18 restraining order, temporary injunction, or permanent injunction.
12-19 (d) The district may sue for injunctive relief and a civil
12-20 penalty in the same proceeding.
12-21 SECTION 4.07. COURT REVIEW. (a) A person who is adversely
12-22 affected by a rule, act, or order of the district may sue the
12-23 district in district court to set aside the rule, act, or order.
12-24 (b) A suit brought under Subsection (a) of this section must
12-25 be filed not later than the 60th day after the date on which the
12-26 rule, act, or order takes effect.
12-27 (c) The standard for review for a suit brought under
13-1 Subsection (a) of this section is by trial de novo.
13-2 SECTION 4.08. WATER CONTROL PLANS. The district by rule
13-3 shall, as needed but not less frequently than every five years,
13-4 develop, prepare, revise, and adopt comprehensive water supply
13-5 plans for various areas of the district. The plans must be
13-6 consistent with standards adopted by the commission and should
13-7 include 10-year, 20-year, and 50-year projections of water needs
13-8 within the district.
13-9 SECTION 4.09. ACQUISITION, CONSTRUCTION, AND OPERATION OF
13-10 SYSTEMS. The district may:
13-11 (1) acquire and provide by purchase, gift, or lease a
13-12 water treatment or supply service within the district;
13-13 (2) design, finance, or construct a water treatment or
13-14 supply system and provide wholesale water services within the
13-15 district;
13-16 (3) operate or sell a water treatment or supply system
13-17 the district constructs or acquires; and
13-18 (4) contract with any person to operate or maintain a
13-19 water treatment or supply system the person owns.
13-20 SECTION 4.10. SYSTEM CONTRACTS. (a) The district may
13-21 contract to receive, treat, and supply water to or from any person
13-22 in or out of the district.
13-23 (b) In a contract under this section, the district shall set
13-24 fees according to:
13-25 (1) the quality and quantity of the water;
13-26 (2) the difficulty in treating the water;
13-27 (3) operation and maintenance expenses and debt
14-1 retirement service costs; and
14-2 (4) any other reasonable consideration.
14-3 SECTION 4.11. SALE OR REUSE OF WATER OR BY-PRODUCT. The
14-4 district may store, sell, or reuse:
14-5 (1) water; or
14-6 (2) any by-product from the district's operation.
14-7 SECTION 4.12. EMINENT DOMAIN. The district may exercise the
14-8 power of eminent domain under Chapter 21, Property Code, to acquire
14-9 property of any kind to further authorized district purposes.
14-10 SECTION 4.13. RELOCATION OF FACILITIES. If the district
14-11 requires relocation, raising, lowering, rerouting, changing the
14-12 grade of, or altering the construction of a railroad, highway,
14-13 pipeline, or an electric transmission or distribution, telegraph,
14-14 or telephone line conduit, pole, or facility, the district shall
14-15 pay the cost of that action so as to provide comparable replacement
14-16 of any replaced facility, less the replaced facility's net salvage
14-17 value.
14-18 SECTION 4.14. USE OF PUBLIC EASEMENTS. (a) The district
14-19 may use a public roadway, street, alley, or easement to accomplish
14-20 district purposes without the necessity of securing a franchise or
14-21 other governmental agreement. The use is subject to the authority
14-22 of a county or municipality to require the relocation of
14-23 facilities, at the expense of the district, to permit the widening
14-24 or straightening of a road. A county must give the district 30
14-25 days' notice that relocation is required and must specify the new
14-26 location for the facilities along the right-of-way of the road.
14-27 (b) The district may not alter or damage a portion of the
15-1 state highway system or a county road without first obtaining the
15-2 written consent of the Texas Department of Transportation or the
15-3 county, as applicable. The placement of a district facility in
15-4 state or county highway right-of-way is subject to regulation by
15-5 the Texas Department of Transportation or the county, as
15-6 applicable.
15-7 SECTION 4.15. ACQUISITION AND DISPOSITION OF PROPERTY. (a)
15-8 The district may purchase, lease, acquire by gift, maintain, use,
15-9 or operate property of any kind that is appropriate for the
15-10 exercise of the district's function.
15-11 (b) The board may sell to the highest bidder, at a public or
15-12 private sale, or may exchange any property owned by the district
15-13 that is not required to carry out the district's purposes. Before
15-14 conducting a public or a private sale of property, the district
15-15 shall give notice of its intent to sell the property by publishing
15-16 notice once a week for two consecutive weeks in a newspaper of
15-17 general circulation in the district.
15-18 SECTION 4.16. ACQUISITION OF FACILITY. The district may
15-19 acquire, construct, extend, improve, maintain, reconstruct, use, or
15-20 operate any facility necessary or convenient to the exercise of the
15-21 district's rights, powers, privileges, authority, functions, and
15-22 duties.
15-23 SECTION 4.17. CONTRACTS. (a) The district may make
15-24 contracts and execute instruments necessary or convenient to the
15-25 exercise of the district's rights, powers, privileges, authority,
15-26 functions, and duties. The district may not make a contract with a
15-27 term greater than 50 years.
16-1 (b) This section does not prohibit the district from
16-2 purchasing surplus property from the United States through a
16-3 negotiated contract without bids.
16-4 (c) An officer, agent, or employee of the district who is
16-5 financially interested in a contract of the type described in
16-6 Subsection (b) of this section shall disclose the interest to the
16-7 board before the board votes on the acceptance of the contract.
16-8 (d) Notwithstanding any provision of a municipality's
16-9 charter, a contract between the district and the municipality is
16-10 not required to be submitted to the municipality's electorate.
16-11 (e) Notwithstanding any other provision of this Act, any
16-12 contract of the district must meet the requirements of Chapter 171,
16-13 Local Government Code.
16-14 SECTION 4.18. COOPERATIVE AGREEMENTS. The district may
16-15 enter into cooperative agreements with other local governments,
16-16 state agencies, or agencies of the United States to accomplish the
16-17 district's purposes.
16-18 ARTICLE 5. NOTES, BONDS, AND TAX PROVISIONS
16-19 SECTION 5.01. REVENUE NOTES. (a) The board, without the
16-20 necessity of an election, may borrow money on negotiable notes of
16-21 the district to be paid solely from the revenues derived from:
16-22 (1) the ownership of all or a designated part of the
16-23 district's works, plants, improvements, facilities, or equipment
16-24 after deduction of the reasonable cost of maintaining and operating
16-25 the facilities; or
16-26 (2) contracts between the district and any person,
16-27 including a local government.
17-1 (b) The notes may be first or subordinate lien notes at the
17-2 board's discretion. An obligation may not be a charge on the
17-3 property of the district or on taxes levied or collected by the
17-4 district. An obligation may only be a charge on revenues pledged
17-5 for the payment of the obligation. A tax levied or collected by
17-6 the district may not be used to pay any part of the obligation.
17-7 SECTION 5.02. BOND ANTICIPATION NOTES; TAX ANTICIPATION
17-8 NOTES. (a) The board may declare an emergency if funds are not
17-9 available to pay the principal of and interest on any bonds of the
17-10 district payable in whole or in part from taxes or to meet any
17-11 other needs of the district and may issue negotiable tax
17-12 anticipation notes or negotiable bond anticipation notes to borrow
17-13 the money needed by the district without advertising or giving
17-14 notice of the sale. A bond anticipation note or tax anticipation
17-15 note matures within one year of its issuance date.
17-16 (b) Tax anticipation notes may be issued for any purpose for
17-17 which the district is authorized to levy taxes. Tax anticipation
17-18 notes shall be secured with the proceeds of taxes to be levied by
17-19 the district in the 12-month period following the date of issuance.
17-20 The board may agree with the purchasers of the notes that the board
17-21 will levy a sufficient tax to pay the principal of and interest on
17-22 the notes and to pay the costs of collecting the taxes.
17-23 (c) A bond anticipation note may be issued for any purpose
17-24 for which a bond of the district may be issued or to refund
17-25 previously issued bond anticipation notes. A district may covenant
17-26 with the purchasers of the bond anticipation notes that the
17-27 district will use the proceeds of sale of any bonds in the process
18-1 of issuance to refund the bond anticipation notes. The board shall
18-2 use the proceeds received from sale of the bonds in the process of
18-3 issuance to pay principal, interest, or redemption price on the
18-4 bond anticipation notes.
18-5 SECTION 5.03. BONDS. (a) To carry out a power or authority
18-6 conferred by this Act, the district may issue bonds secured by a
18-7 pledge of ad valorem taxes or of all or part of the revenues
18-8 accruing to the district from a source other than ad valorem taxes,
18-9 including money received from tolls, charges, the sale of water or
18-10 other products, and the provision of services.
18-11 (b) The district's bonds shall:
18-12 (1) be authorized by board resolution;
18-13 (2) be issued in the district's name;
18-14 (3) be signed by the president or vice president of
18-15 the board;
18-16 (4) be attested by the secretary of the board; and
18-17 (5) bear the district's seal.
18-18 (c) The board may prescribe the form, denomination, and
18-19 interest rate of a bond issued by the district, except that a bond
18-20 must mature serially or otherwise not more than 50 years after its
18-21 issuance date. The board may sell a bond at a price and under
18-22 terms that the board determines to be the most advantageous
18-23 reasonably available. A district bond may be made redeemable
18-24 before maturity at times and prices prescribed in the bond. A
18-25 district bond may be secured by an indenture of trust with a
18-26 corporate trustee.
18-27 (d) The district may issue bonds in more than one series as
19-1 required for carrying out the purposes of this Act. The district
19-2 may, in issuing bonds secured by the district's ad valorem taxes or
19-3 by revenues, reserve the right to issue additional bonds secured by
19-4 the district's ad valorem taxes or by revenues that are on a parity
19-5 with or are senior or subordinate to the bonds issued earlier.
19-6 (e) The resolution authorizing the bonds or the trust
19-7 indenture securing the bonds may specify additional provisions that
19-8 constitute a contract between the district and its bondholders.
19-9 The board may provide:
19-10 (1) for additional bond provisions; and
19-11 (2) for a corporate trustee or receiver to take
19-12 possession of the district's facilities if the district defaults.
19-13 (f) Sections 36.171 and 49.181, Water Code, do not apply to
19-14 bonds or notes issued by the district.
19-15 SECTION 5.04. REFUNDING BONDS. (a) The district may issue
19-16 refunding bonds to refund outstanding bonds and interest authorized
19-17 by this Act.
19-18 (b) Refunding bonds may:
19-19 (1) be issued to refund one or more series of
19-20 outstanding bonds;
19-21 (2) combine the pledges for the outstanding bonds for
19-22 the security of the refunding bonds; and
19-23 (3) be secured by other or additional revenues.
19-24 (c) The provisions of this Act that apply to the district's
19-25 issuance of other bonds, their security, their approval by the
19-26 attorney general, and the remedies of the holders apply to
19-27 refunding bonds.
20-1 (d) Refunding bonds shall be registered by the comptroller
20-2 of public accounts on surrender and cancellation of the bonds to be
20-3 refunded. Alternatively, the resolution authorizing the issuance
20-4 of refunding bonds may provide that the bonds shall be sold and the
20-5 resulting proceeds deposited in the bank where the bonds to be
20-6 refunded are payable. In the latter case, the refunding bonds may
20-7 be issued in an amount sufficient to pay the principal and interest
20-8 of the bonds to be refunded to their option or maturity date. The
20-9 comptroller of public accounts shall register the refunding bonds
20-10 without concurrent surrender and cancellation of the bonds to be
20-11 refunded.
20-12 SECTION 5.05. APPROVAL AND REGISTRATION OF BONDS. After the
20-13 district authorizes bonds, the district shall submit the bonds and
20-14 the record relating to their issuance to the attorney general for
20-15 approval. If the bonds are secured by a pledge of the proceeds of
20-16 a contract between the district and a municipality or other
20-17 governmental agency, authority, or district, the district shall
20-18 submit to the attorney general a copy of the contract and the
20-19 proceedings of the municipality or other governmental agency,
20-20 authority, or district authorizing the contract. If the attorney
20-21 general finds that the bonds have been authorized and each contract
20-22 has been made in accordance with the constitution and laws of this
20-23 state, the attorney general shall approve the bonds and contracts.
20-24 On approval, the bonds shall be registered by the comptroller of
20-25 public accounts.
20-26 SECTION 5.06. BOND ELECTION. (a) The district may not
20-27 issue bonds secured in whole or in part by ad valorem taxes without
21-1 an election.
21-2 (b) The district may issue revenue bonds without an
21-3 election.
21-4 SECTION 5.07. AUTHORIZED INVESTMENTS. Bonds and refunding
21-5 bonds of the district are legal, eligible, and authorized
21-6 investments for a public fund of the state, including the permanent
21-7 school fund, or a state agency.
21-8 SECTION 5.08. AD VALOREM TAXATION. (a) The qualified
21-9 voters in the district may, in an election called for the purpose,
21-10 authorize the district to levy and collect ad valorem taxes to pay
21-11 the principal and interest on bonds issued by the district.
21-12 (b) The qualified voters in the district may, in an election
21-13 called for the purpose, authorize the district to levy and collect
21-14 ad valorem taxes for the maintenance of the district and its
21-15 improvements.
21-16 ARTICLE 6. MISCELLANEOUS PROVISIONS
21-17 SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
21-18 (a) The proper and legal notice of the intention to introduce this
21-19 Act, setting out the general substance of this Act, has been
21-20 published as provided by law, and the notice and a copy of this Act
21-21 have been furnished to all persons, agencies, officials, or
21-22 entities to which they are required to be furnished by the
21-23 constitution and other laws of this state, including the governor,
21-24 who has submitted the notice and the Act to the Texas Natural
21-25 Resource Conservation Commission.
21-26 (b) The Texas Natural Resource Conservation Commission has
21-27 filed its recommendations relating to this Act with the governor,
22-1 lieutenant governor, and speaker of the house of representatives
22-2 within the required time.
22-3 (c) All requirements of the constitution and laws of this
22-4 state and of the rules and procedures of the legislature with
22-5 respect to the notice, introduction, and passage of this Act are
22-6 fulfilled and accomplished.
22-7 SECTION 6.02. EMERGENCY. The importance of this legislation
22-8 and the crowded condition of the calendars in both houses create an
22-9 emergency and an imperative public necessity that the
22-10 constitutional rule requiring bills to be read on three several
22-11 days in each house be suspended, and this rule is hereby suspended,
22-12 and that this Act take effect and be in force from and after its
22-13 passage, and it is so enacted.