Amend CSHB 2965 (House Committee Printing) as follows:
(1) Strike all below the enacting clause and substitute the
following:
ARTICLE 1. GENERAL PROVISIONS
SECTION 1.01. CREATION. (a) A regional water authority, to
be known as the North Harris County Regional Water Authority, is
created in Harris County, subject to a confirmation election held
under Section 2.05 of this Act. The authority is a governmental
agency and a body politic and corporate.
(b) The authority is created under and is essential to
accomplish the purposes provided by Section 59, Article XVI, Texas
Constitution.
SECTION 1.02. DEFINITIONS. In this Act:
(1) "Authority" means the North Harris County Regional
Water Authority.
(2) "Board" means the board of directors of the
authority.
(3) "Commission" means the Texas Natural Resource
Conservation Commission.
(4) "Director" means a member of the board.
(5) "Local government" means a municipality, county,
special district, or other political subdivision of this state or a
combination of two or more of those entities.
(6) "Person" has the meaning assigned by Section
311.005, Government Code.
(7) "Subsidence district" means the Harris-Galveston
Coastal Subsidence District.
(8) "System" means a network of pipelines, conduits,
canals, pumping stations, force mains, treatment plants, and any
other construction, device, or related appurtenance used to treat
or transport water.
(9) "Water" includes:
(A) groundwater, percolating or otherwise;
(B) any surface water, natural or artificial,
navigable or nonnavigable; and
(C) industrial and municipal wastewater.
(10) "Subsidence" means the lowering in elevation of
the surface of land by the withdrawal of groundwater.
(11) "Agricultural crop" means food or fiber
commodities grown for resale or commercial purposes that provide
food, clothing, or animal feed.
SECTION 1.03. DESCRIPTION OF BOUNDARIES. (a) Except as
provided by this section, the authority includes the territory that
is contained in the following area, whether the territory contains
noncontiguous parcels of land or whether the territory is located
within the boundaries of any other governmental entity or political
subdivision of the state, but only if also contained in one or more
of the house districts described by this section:
BEGINNING at the intersection of the Harris and Waller County
line with the north right-of-way line of U.S. Highway 290 (current
alignment);
THENCE northwest along the Harris and Waller County line to
the intersection with Spring Creek;
THENCE continuing southeasterly along said Harris and Waller
County line, with the meanders of Spring Creek to the intersection
of the Waller and Montgomery County line;
THENCE southeasterly along the Harris and Montgomery County
line continuing with the meanders of said Spring Creek; to the
intersection with the City of Houston, corporate limits;
THENCE along said City of Houston corporate limits, the
following: south approximately one half mile; east approximately
one half mile to the City of Humble corporate limits; north along
said City of Humble corporate limits approximately one half mile to
aforementioned Spring Creek; east along Spring Creek to its
confluence with the San Jacinto River to the intersection of U.S.
Highway 59; easterly and southerly along the take line for Lake
Houston to the intersection with the southeasterly right-of-way of
the Union Pacific Railroad; southwesterly along said Union Pacific
Railroad for approximately two miles; south to the north end of
Duessen Parkway; southeast along the east side of Duessen Parkway
and along the north side of the access road to the intersection
with North Lake Houston Parkway;
THENCE departing said City of Houston corporate limits, west
along the north side of said North Lake Houston Parkway to the
beginning of Mount Houston Road, and continuing west on Mount
Houston Road to the 6900 block to the intersection of Suburban;
THENCE south along Suburban to the City of Houston corporate
limits;
THENCE along said City of Houston corporate limits, the
following: west to Hirsch Road; south along the west side of Hirsch
Road to Langely; west along the south side of Langley to the
southbound feeder road of US Highway 59; northeast along the west
side of the feeder road of US Highway 59 to Little York; west along
the south side of Little York to Bentley; north along the east side
of Bentley to Sagebrush; west along the north side of Sagebrush to
Halls Bayou; south along Halls Bayou to Little York; west along the
south side of Little York to Aldine Westfield Road; north along the
east sides of Aldine Westfield Road to its intersection with the
easterly extension of the City of Houston corporate limits; west to
the Hardy Toll Road; north along the Hardy Toll Road approximately
0.25 miles; east approximately 0.35 mile; north approximately 0.15
mile; west approximately 0.35 mile; northwest along the Hardy Toll
Road approximately 1 mile; southwesterly along an irregular path
generally west to Carby; west along Carby to Airline Drive; south
along Airline Drive to Canino; west along Canino to Sweetwater;
north along Sweetwater to West Road; west to Interstate 45/US 75;
south along Interstate 45/US 75 to south of Bluebell Road;
southerly along an irregular path generally south and west to West
Mount Houston Road; west along Mount Houston Road to a line east of
Ella Boulevard; south along a line generally parallel to Ella
Boulevard to south of West Gulf Bank; west along the south side of
West Gulf Bank to Tomball Parkway; northwest along Tomball Parkway
approximately 1.5 mile; west along an irregular path to North
Houston-Rosslyn Road; north along North Houston-Rosslyn Road to
Vogel Creek; west along Vogel Creek to the FWD CRIP RR; south
along the FWD CRIP RR to Logview; west along Logview to Hollister;
south along Hollister to White Oak Bayou; east along White Oak
Bayou to Twisting Vine; south along Twisting Vine to West Little
York; west along West Little York to Fairbanks North Houston; south
along Fairbanks North Houston to Cole Creek; west along Cole Creek
to Hempstead Road; northwest along Hempstead Road to Brittmore
Road, also being the intersection with U.S. Highway 290, Northwest
Freeway;
THENCE departing said City of Houston corporate limits and
continuing northwest along U.S. Highway 290, Northwest Freeway, at
Spencer Road;
THENCE northwest along U.S. Highway 290, Northwest Freeway
(current alignment), to the intersection of the Harris and Waller
County line, the POINT OF BEGINNING.
(b) The district includes only that territory described by
Subsection (a) of this section that is also in the following state
representative districts as described by Article II, Chapter 2,
Acts of the 72nd Legislature, 3rd Called Session, 1992 (Article II,
Article 195a-11, Vernon's Texas Civil Statutes), as the districts
existed on the effective date of this Act:
(1) District 126;
(2) District 135; and
(3) District 150.
(c) Notwithstanding Subsections (a) and (b) of this section,
the authority does not include any area that, on the effective date
of this Act, is inside the municipal limits of the city of Houston
or inside the municipal limits of the city of Humble.
SECTION 1.04. APPLICABILITY OF OTHER LAW. (a) This Act
prevails over any inconsistent provision of general law.
(b) This Act does not prevail over or preempt a provision of
Chapter 151, Water Code, or Chapter 36, Water Code, that is being
implemented by the subsidence district.
SECTION 1.05. FINDING OF BENEFIT. All the land and other
property included within the boundaries of the authority will be
benefited by the works and projects that are to be accomplished by
the authority under powers conveyed by this Act. The authority is
created to serve a public use and benefit.
ARTICLE 2. DIRECTORS
SECTION 2.01. BOARD OF DIRECTORS. (a) The authority is
governed by a board of nine directors.
(b) The board shall appoint a person to fill a vacancy in
the office of director until the next election for directors. If
the position is not scheduled to be filled at the election, the
person elected to fill the position serves only for the remainder
of the unexpired term.
(c) To be eligible to serve as director, a person must be a
qualified voter in the voting district from which the person is
elected or appointed.
SECTION 2.02. METHOD OF ELECTION OF DIRECTORS. (a) One
director shall be elected from each of the nine single-member
voting districts by the qualified voters of the voting district.
(b) A person shall indicate on the person's application for
a place on the ballot the voting district that the person seeks to
represent.
(c) In the manner described by Section 49.103(d), Water
Code, the board shall redraw the single-member voting districts as
soon as practicable after:
(1) each federal decennial census; and
(2) any change in the boundaries of the authority.
(d) At the first election after each time the voting
districts are redrawn:
(1) nine new directors shall be elected to represent
the single-member voting districts; and
(2) the directors elected shall draw lots to determine
their terms so that:
(A) four directors serve two-year terms; and
(B) five directors serve four-year terms.
(e) Subchapter C, Chapter 146, Election Code, applies to the
consideration of votes for a write-in candidate for the initial
permanent director or permanent director as if the authority were a
municipality.
SECTION 2.03. SERVICE OF DIRECTORS. (a) Temporary
directors serve until the initial permanent directors are elected
under Section 2.05 of this Act.
(b) The initial permanent directors serve until permanent
directors are elected under Section 2.06 of this Act.
(c) Permanent directors serve staggered four-year terms.
(d) A director serves until the director's successor has
qualified.
SECTION 2.04. TEMPORARY DIRECTORS. (a) The temporary board
of directors is composed of three individuals appointed by the
commission.
(b) If a temporary director fails to qualify for office, the
temporary directors who have qualified shall appoint a person to
fill the vacancy. If at any time there are fewer than two
qualified temporary directors, or if the temporary directors cannot
agree on the appointment, the commission shall appoint the
necessary number of persons to fill all vacancies on the board.
(c) A temporary director is not eligible to be elected under
Section 2.05 of this Act.
SECTION 2.05. CONFIRMATION AND INITIAL PERMANENT DIRECTORS
ELECTION. (a) The temporary board of directors shall:
(1) establish nine single-member voting districts in
the manner described by Section 49.103(d), Water Code; and
(2) on the first Saturday in May 2000 hold an election
to confirm the establishment of the authority and to elect nine
initial permanent directors.
(b) A person who desires to be a candidate for the office of
initial permanent director may file an application with the
temporary board to have the candidate's name printed on the ballot.
(c) At the confirmation and initial permanent directors
election, the temporary board of directors shall have placed on the
ballot:
(1) the name of each candidate filing for the office
of director; and
(2) blank spaces to write in the names of other
persons.
(d) If the authority is created at the election, the
temporary board of directors, at the time the vote is canvassed,
shall:
(1) declare the qualified person who receives the most
votes for each position to be elected as the initial director for
that position; and
(2) include the results of the initial directors
election in the authority's election report to the commission.
(e) As soon as practicable after the initial permanent
directors have qualified, the directors shall draw lots to
determine their terms so that:
(1) four directors serve terms that expire when
permanent directors are elected at the first election held under
Section 2.06 of this Act; and
(2) five directors serve terms that expire when
permanent directors are elected at the second election held under
Section 2.06 of this Act.
(f) Section 41.001(a), Election Code, does not apply to the
confirmation and initial permanent directors election held under
this section.
SECTION 2.06. ELECTION DATES. On the first Saturday in May
in each subsequent even-numbered year, the appropriate number of
directors shall be elected to the board.
SECTION 2.07. COST OF ELECTION. (a) The temporary board of
the authority shall fund the cost of the confirmation and initial
permanent directors election if the temporary board is able to find
a reasonable means of funding the election.
(b) If the temporary board is unable to fund the entire cost
of the election, the temporary board of the authority and the board
of directors of the subsidence district may execute an agreement by
which:
(1) the subsidence district shall pay the portion of
the costs that could not be funded by the district; and
(2) the authority shall repay the subsidence district
for those costs within a reasonable period.
ARTICLE 3. ADMINISTRATIVE PROVISIONS
SECTION 3.01. MEETINGS AND ACTIONS OF BOARD. The board
shall meet at least four times each year and may meet at any other
time the board considers appropriate.
SECTION 3.02. GENERAL MANAGER. (a) The board shall employ
a general manager as the chief administrative officer of the
authority. The board may delegate to the general manager full
authority to manage and operate the affairs of the authority
subject only to the orders of the board.
(b) The duties of the general manager include:
(1) the administration of the orders of the board;
(2) coordination with state, federal, and local
agencies;
(3) the oversight of development of authority plans
and programs; and
(4) other duties assigned by the board.
(c) The board shall determine the terms of office and
employment and the compensation to be paid the general manager.
The general manager may be discharged by majority vote of the
board.
SECTION 3.03. EMPLOYEES; BONDS. (a) The general manager of
the authority shall employ all persons necessary for the proper
handling of the business and operations of the authority and may
employ attorneys, bookkeepers, engineers, and other expert and
specialized personnel the board considers necessary. The general
manager shall determine compensation to be paid by the authority.
(b) The general manager may discharge employees of the
authority.
(c) The general manager of the authority and each employee
or contractor of the authority who is charged with the collection,
custody, or payment of any money of the authority shall execute a
fidelity bond in an amount determined by the board and in a form
and with a surety approved by the board. The authority shall pay
for the bond.
ARTICLE 4. POWERS AND DUTIES
SECTION 4.01. GENERAL POWERS AND DUTIES. (a) The authority
has all of the rights, powers, privileges, authority, functions,
and duties necessary and convenient to accomplish the purposes of
this Act, including those provided by Chapter 49, Water Code.
(b) The authority may:
(1) provide for the conservation, preservation,
protection, recharge, and prevention of waste of groundwater, and
for the reduction of groundwater withdrawals, in a manner
consistent with the purposes of Section 59, Article XVI, Texas
Constitution;
(2) for the purposes of reducing groundwater
withdrawals and subsidence, acquire or develop surface water and
groundwater supplies from sources inside of or outside of the
boundaries of the authority and may conserve, store, transport,
treat, purify, distribute, sell, and deliver water to persons,
corporations, municipal corporations, political subdivisions of the
state, and others, inside of and outside of the boundaries of the
authority;
(3) enter into contracts with persons, including
political subdivisions of the state, on terms and conditions the
board considers desirable, fair, and advantageous for the
performance of its rights, powers, and authority under this Act;
(4) coordinate water services provided inside of,
outside of, or into the authority; and
(5) administer and enforce the provisions of the Act.
SECTION 4.02. AUTHORITY RULES. (a) The authority shall
adopt and enforce rules reasonably required to implement this Act,
including rules governing procedures before the board.
(b) The board shall compile its rules in a book and make
them available for use and inspection at the authority's principal
office.
SECTION 4.03. FEES AND CHARGES. (a) The authority may
establish fees and charges as necessary to enable the authority to
fulfill the authority's regulatory obligations provided by this
Act.
(b) The authority may charge against the owner of a well
located in the authority's boundaries a fee on the amount of water
pumped from the well. The board shall establish the rate of a fee
under this subsection only after a special meeting on the fee. The
board by rule may exempt classes of wells from the fee under this
subsection. The board may not apply the fee to a well:
(1) with a casing diameter of less than five inches
that serves a single-family dwelling;
(2) regulated under Chapter 27, Water Code; or
(3) used for irrigation of agricultural crops.
(c) Fees the board establishes must be sufficient to:
(1) achieve water conservation, prevent waste of
water, serve as a disincentive to pumping groundwater, and
accomplish the purposes of this Act, including making available
alternative water supplies; and
(2) enable the authority to meet operation and
maintenance expenses and pay the principal of and interest on debt
issued in connection with the exercise of the authority's general
powers and duties.
(d) The temporary board may set fees to pay for the initial
operation of the authority and the election of the initial
permanent board until the permanent board has been elected.
SECTION 4.04. CIVIL PENALTY; INJUNCTION. (a) A person who
violates a rule or order of the authority is subject to a civil
penalty of not less than $50 and not more than $5,000 for each
violation or each day of a continuing violation.
(b) The authority may bring an action to recover the penalty
in a district court in the county where the violation occurred.
The penalty shall be paid to the authority.
(c) The authority may bring an action for injunctive relief
in a district court in the county where a violation of an authority
rule or order occurs or is threatened to occur. The court may
grant to the authority, without bond or other undertaking, a
prohibitory or mandatory injunction that the facts warrant,
including a temporary restraining order, temporary injunction, or
permanent injunction.
(d) The authority may bring an action for a civil penalty
and injunctive relief in the same proceeding.
SECTION 4.05. WATER SUPPLY PLANS. The authority by rule
shall, as needed but not less frequently than every five years,
develop, prepare, revise, and adopt comprehensive water supply and
drought contingency plans for various areas of the authority. The
plans:
(1) must be consistent with regional planning; and
(2) must include 10-year, 20-year, and 50-year
projections of water needs within the authority.
SECTION 4.06. ACQUISITION, CONSTRUCTION, AND OPERATION OF
SYSTEMS. The authority may:
(1) acquire and provide by purchase, gift, or lease a
water treatment or supply system inside of or outside of the
authority's boundaries;
(2) design, finance, or construct a water treatment or
supply system and provide water services inside of or outside of
the authority's boundaries;
(3) operate, lease, or sell a water treatment or
supply system the authority constructs or acquires; and
(4) contract with any person to operate or maintain a
water treatment or supply system the person owns.
SECTION 4.07. SALE OR REUSE OF WATER OR BY-PRODUCT. The
authority may store, sell, or reuse:
(1) water; or
(2) any by-product from the authority's operations.
SECTION 4.08. EMINENT DOMAIN. The authority may exercise
the power of eminent domain in the manner provided in Chapter 21,
Property Code, to acquire property of any kind to further
authorized purposes of the authority. The authority is not
required to deposit a bond under Section 21.021(a), Property Code.
SECTION 4.09. CONTRACTS. (a) The authority may enter into
a contract with any person or legal entity regarding the
performance of any purpose or function of the authority, including
a contract to jointly construct, finance, own, or operate works,
improvements, facilities, plants, equipment, or appliances
necessary to accomplish a purpose or function of the authority. A
contract may be of unlimited duration.
(b) The authority may purchase an interest in a project used
for a purpose or function of the authority.
(c) The authority may contract for:
(1) the purchase or sale of water or water rights;
(2) the performance of activities within the powers of
the authority to promote the continuing and orderly development of
land and property in the authority through the purchase,
construction, or installation of works, improvements, facilities,
plants, equipment, or appliances so that, to the greatest extent
possible, considering sound engineering practices and economic
feasibility, all the land and property in the authority may receive
services of the works, improvements, facilities, plants, equipment,
or appliances of the authority; or
(3) the construction, ownership, maintenance, or
operation of any works, improvements, facilities, plants,
equipment, or appliances of the authority or another person or
legal entity.
(d) The authority may purchase surplus property from this
state, the United States, or another public entity through a
negotiated contract without bids.
(e) An officer, agent, or employee of the authority who is
financially interested in the contract of the type described by
Subsection (d) of this section shall disclose the interest to the
board before the board votes on the acceptance of the contract.
SECTION 4.10. COOPERATION WITH AND ASSISTANCE OF OTHER
GOVERNMENTAL ENTITIES. (a) In implementing this Act, the board
may cooperate with and request the assistance of the Texas Water
Development Board, the commission, the United States Geological
Survey, the subsidence district, other local governments, and other
agencies of the United States and this state.
(b) The subsidence district may enter into an interlocal
contract with the authority to carry out the authority's purposes
and may carry out the governmental functions and services specified
in the interlocal contract.
SECTION 4.11. GIFTS AND GRANTS. The authority is authorized
to accept a gift or grant from money collected by the subsidence
district under Chapter 151, Water Code, to fund a water treatment
or supply system. The authorization in this section is in addition
to the authorization provided in Section 49.229, Water Code.
SECTION 4.12. EXPENDITURES. (a) The authority's money may
be disbursed only by check, draft, order, or other instrument.
(b) Disbursements of the authority must be signed by at
least two directors, except the board by resolution may allow the
general manager, treasurer, bookkeeper, or other employee of the
authority to sign disbursements.
(c) The board by resolution may allow disbursements to be
transferred by federal reserve wire system to accounts in the name
of the authority.
SECTION 4.13. TAXATION. The district may not impose an ad
valorem tax.
ARTICLE 5. NOTES AND BONDS
SECTION 5.01. REVENUE NOTES. (a) The board, without an
election, may borrow money on negotiable notes of the authority to
be paid solely from the revenue derived from any legal source,
including:
(1) tolls, charges, and fees the authority imposes;
(2) the sale of water, water or sewer services, or any
other service or product of the authority;
(3) grants or gifts;
(4) the ownership and operation of all or a designated
part of the authority's works, improvements, facilities, plants, or
equipment; and
(5) contracts between the authority and any person,
including a local government.
(b) The notes may be first or subordinate lien notes at the
board's discretion. An obligation may not be a charge on the
property of the authority. An obligation may only be a charge on
revenue pledged for the payment of the obligation.
SECTION 5.02. BONDS. (a) To carry out a power or authority
conferred by this Act, the authority may issue bonds secured by all
or part of the revenue derived from any source, including any
source described by Section 5.01(a) of this Act.
(b) In issuing or securing a bond or note of the authority,
the authority may exercise any power of an issuer under Chapter
656, Acts of the 68th Legislature, Regular Session, 1983 (Article
717q, Vernon's Texas Civil Statutes).
(c) The authority may conduct a public, private, or
negotiated sale of the bonds.
(d) The authority's bonds must:
(1) be authorized by board resolution;
(2) be issued in the authority's name;
(3) be signed by the president or vice president of
the board, which may be accomplished by facsimile signature;
(4) be attested by the secretary of the board, which
may be accomplished by facsimile signature; and
(5) bear the authority's seal or facsimile seal.
(e) An authority bond may be secured by an indenture of
trust with a corporate trustee.
(f) The authority may issue bonds in more than one series as
required for carrying out the purposes of this Act. In issuing
bonds secured by revenue of the district, the authority may
reserve the right to issue additional bonds secured by the
authority's revenue that are on a parity with or are senior or
subordinate to the bonds issued earlier.
(g) The resolution authorizing the bonds or the trust
indenture securing the bonds may specify additional provisions that
constitute a contract between the authority and its bondholders.
The board may provide:
(1) for additional bond provisions; and
(2) for a corporate trustee or receiver to take
possession of the authority's facilities if the authority defaults.
(h) Section 49.181, Water Code, does not apply to bonds or
notes issued by the authority.
SECTION 5.03. REFUNDING BONDS. The provisions of this Act
that apply to the authority's issuance of other bonds, their
security, and the remedies of the holders apply to refunding bonds.
SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. After the
authority authorizes bonds, the authority shall submit the bonds
and the record relating to their issuance to the attorney general
for approval. If the bonds are secured by a pledge of the proceeds
of a contract between the authority and a municipality or other
governmental agency, authority, or district, the authority shall
submit to the attorney general a copy of the contract and the
proceedings of the municipality or other governmental agency,
authority, or district authorizing the contract. If the attorney
general finds that the bonds have been authorized and each contract
has been made in accordance with the constitution and laws of this
state, the attorney general shall approve the bonds and contracts.
On approval, the bonds shall be registered by the comptroller.
SECTION 5.05. FUNDING BY OTHER DISTRICTS. (a) The
authority shall develop a procedure for cooperatively funding a
project of the authority with money from other districts inside of
the authority's boundaries if the authority project fulfills a
governmental purpose of both the authority and other districts.
(b) Not later than the 90th day before the date the
authority issues bonds, other than refunding bonds, to finance a
project, the authority shall provide written notice of the
authority's intention to issue the bonds to each district inside of
the authority's boundaries that may be benefited or affected by the
project. The notice must include the value of the bonds planned to
be issued, a description of the project the bonds would finance,
and a schedule of the portion of the project costs financed by the
bonds that may be allocated to each district benefited or affected.
The schedule must be prepared by means of a formula certified by
the authority's engineer.
(c) A district may enter into a contract with the authority
for the district to finance a portion of the proposed project with
the district's resources instead of using proceeds from bonds of
the authority for that purpose. The contract must be executed
before the authority issues the bonds. As provided in the
contract, the authority must:
(1) reduce the value of the bond issuance to the
degree that the district provides project funding; and
(2) credit the district for its contribution to the
project financing and adjust the allocation of revenue pledged to
the payment of the bonds so that the authority avoids using, to a
degree commensurate with the contribution, revenue from the
district to service the authority's bond debt or interest.
ARTICLE 6. MISCELLANEOUS PROVISIONS
SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
(a) The proper and legal notice of the intention to introduce this
Act, setting out the general substance of this Act, has been
published as provided by law, and the notice and a copy of this Act
have been furnished to all persons, agencies, officials, or
entities to which they are required to be furnished by the
constitution and other laws of this state, including the governor,
who has submitted the notice and the Act to the commission.
(b) The commission has filed its recommendations relating to
this Act with the governor, lieutenant governor, and speaker of the
house of representatives within the required time.
(c) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to notice, introduction, and passage of this Act are fulfilled and
accomplished.
SECTION 6.02. EMERGENCY. The importance of this legislation
and the crowded condition of the calendars in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby suspended,
and that this Act take effect and be in force from and after its
passage, and it is so enacted.
(2) Amend the caption to conform to the body of the bill.