By Hilbert H.B. No. 2965
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 regional water authority, to
1-9 be known as the North Harris County Regional Water Authority, is
1-10 created in Harris County, subject to a confirmation election held
1-11 under Section 2.05 of this Act. The authority is a governmental
1-12 agency and a body politic and corporate.
1-13 (b) The authority is created under and is essential to
1-14 accomplish the purposes provided by Section 59, Article XVI, Texas
1-15 Constitution.
1-16 SECTION 1.02. DEFINITIONS. In this Act:
1-17 (1) "Authority" means the North Harris County Regional
1-18 Water Authority.
1-19 (2) "Board" means the board of directors of the
1-20 authority.
1-21 (3) "Commission" means the Texas Natural Resource
1-22 Conservation Commission.
1-23 (4) "Director" means a member of the board.
1-24 (5) "Local government" means a municipality, county,
2-1 special district, or other political subdivision of this state or a
2-2 combination of two or more of those entities.
2-3 (6) "Person" has the meaning assigned by Section
2-4 311.005, Government Code.
2-5 (7) "Subsidence district" means the Harris-Galveston
2-6 Coastal Subsidence District.
2-7 (8) "System" means a network of pipelines, conduits,
2-8 canals, pumping stations, force mains, treatment plants, and any
2-9 other construction, device, or related appurtenance used to treat
2-10 or transport water.
2-11 (9) "Water" includes:
2-12 (A) groundwater, percolating or otherwise;
2-13 (B) any surface water, natural or artificial,
2-14 navigable or nonnavigable; and
2-15 (C) industrial and municipal wastewater.
2-16 (10) "Subsidence" means the lowering in elevation of
2-17 the surface of land by the withdrawal of groundwater.
2-18 (11) "Agricultural crop" means food or fiber
2-19 commodities grown for resale or commercial purposes that provide
2-20 food, clothing, or animal feed.
2-21 SECTION 1.03. DESCRIPTION OF BOUNDARIES. (a) Except as
2-22 provided by this section, the authority includes the territory that
2-23 is contained in the following area, whether the territory contains
2-24 noncontiguous parcels of land or whether the territory is located
2-25 within the boundaries of any other governmental entity or political
2-26 subdivision of the state, but only if also contained in one or more
2-27 of the house districts described by this section:
3-1 BEGINNING at the intersection of the Harris and Waller County
3-2 line with the north right-of-way line of U.S. Highway 290 (current
3-3 alignment);
3-4 THENCE northwest along the Harris and Waller County line to
3-5 the intersection with Spring Creek;
3-6 THENCE continuing southeasterly along said Harris and Waller
3-7 County line, with the meanders of Spring Creek to the intersection
3-8 of the Waller and Montgomery County line;
3-9 THENCE southeasterly along the Harris and Montgomery County
3-10 line continuing with the meanders of said Spring Creek; to the
3-11 intersection with the City of Houston, corporate limits;
3-12 THENCE along said City of Houston corporate limits, the
3-13 following: south approximately one half mile; east approximately
3-14 one half mile to the City of Humble corporate limits; north along
3-15 said City of Humble corporate limits approximately one half mile to
3-16 aforementioned Spring Creek; east along Spring Creek to its
3-17 confluence with the San Jacinto River to the intersection of U.S.
3-18 Highway 59; easterly and southerly along the take line for Lake
3-19 Houston to the intersection with the southeasterly right-of-way of
3-20 the Union Pacific Railroad; southwesterly along said Union Pacific
3-21 Railroad for approximately two miles; south to the north end of
3-22 Duessen Parkway; southeast along the east side of Duessen Parkway
3-23 and along the north side of the access road to the intersection
3-24 with North Lake Houston Parkway;
3-25 THENCE departing said City of Houston corporate limits, west
3-26 along the north side of said North Lake Houston Parkway to the
3-27 beginning of Mount Houston Road, and continuing west on Mount
4-1 Houston Road to the 6900 block to the intersection of Suburban;
4-2 THENCE south along Suburban to the City of Houston corporate
4-3 limits;
4-4 THENCE along said City of Houston corporate limits, the
4-5 following: west to Hirsch Road; south along the west side of Hirsch
4-6 Road to Langely; west along the south side of Langley to the
4-7 southbound feeder road of US Highway 59; northeast along the west
4-8 side of the feeder road of US Highway 59 to Little York; west along
4-9 the south side of Little York to Bentley; north along the east side
4-10 of Bentley to Sagebrush; west along the north side of Sagebrush to
4-11 Halls Bayou; south along Halls Bayou to Little York; west along the
4-12 south side of Little York to Aldine Westfield Road; north along the
4-13 east sides of Aldine Westfield Road to its intersection with the
4-14 easterly extension of the City of Houston corporate limits; west to
4-15 the Hardy Toll Road; north along the Hardy Toll Road approximately
4-16 0.25 miles; east approximately 0.35 mile; north approximately 0.15
4-17 mile; west approximately 0.35 mile; northwest along the Hardy Toll
4-18 Road approximately 1 mile; southwesterly along an irregular path
4-19 generally west to Carby; west along Carby to Airline Drive; south
4-20 along Airline Drive to Canino; west along Canino to Sweetwater;
4-21 north along Sweetwater to West Road; west to Interstate 45/US 75;
4-22 south along Interstate 45/US 75 to south of Bluebell Road;
4-23 southerly along an irregular path generally south and west to West
4-24 Mount Houston Road; west along Mount Houston Road to a line east of
4-25 Ella Boulevard; south along a line generally parallel to Ella
4-26 Boulevard to south of West Gulf Bank; west along the south side of
4-27 West Gulf Bank to Tomball Parkway; northwest along Tomball Parkway
5-1 approximately 1.5 mile; west along an irregular path to North
5-2 Houston-Rosslyn Road; north along North Houston-Rosslyn Road to
5-3 Vogel Creek; west along Vogel Creek to the FWD CRIP RR; south
5-4 along the FWD CRIP RR to Logview; west along Logview to Hollister;
5-5 south along Hollister to White Oak Bayou; east along White Oak
5-6 Bayou to Twisting Vine; south along Twisting Vine to West Little
5-7 York; west along West Little York to Fairbanks North Houston; south
5-8 along Fairbanks North Houston to Cole Creek; west along Cole Creek
5-9 to Hempstead Road; northwest along Hempstead Road to Brittmore
5-10 Road, also being the intersection with U.S. Highway 290, Northwest
5-11 Freeway;
5-12 THENCE departing said City of Houston corporate limits and
5-13 continuing northwest along U.S. Highway 290, Northwest Freeway, at
5-14 Spencer Road;
5-15 THENCE northwest along U.S. Highway 290, Northwest Freeway
5-16 (current alignment), to the intersection of the Harris and Waller
5-17 County line, the POINT OF BEGINNING.
5-18 (b) The district includes only that territory described by
5-19 Subsection (a) of this section that is also in the following state
5-20 representative districts as described by Article II, Chapter 2,
5-21 Acts of the 72nd Legislature, 3rd Called Session, 1992 (Article II,
5-22 Article 195a-11, Vernon's Texas Civil Statutes), as the districts
5-23 existed on the effective date of this Act:
5-24 (1) District 141;
5-25 (2) District 140;
5-26 (3) District 127;
5-27 (4) District 126;
6-1 (5) District 135; and
6-2 (6) District 150.
6-3 (c) Notwithstanding Subsections (a) and (b) of this section,
6-4 the authority does not include any area that, on the effective date
6-5 of this Act, is inside the municipal limits of the city of Houston
6-6 or inside the municipal limits of the city of Humble.
6-7 SECTION 1.04. APPLICABILITY OF OTHER LAW. (a) This Act
6-8 prevails over any inconsistent provision of general law.
6-9 (b) This Act does not prevail over or preempt a provision of
6-10 Chapter 151, Water Code, or Chapter 36, Water Code, that is being
6-11 implemented by the subsidence district.
6-12 SECTION 1.05. FINDING OF BENEFIT. All the land and other
6-13 property included within the boundaries of the authority will be
6-14 benefited by the works and projects that are to be accomplished by
6-15 the authority under powers conveyed by this Act. The authority is
6-16 created to serve a public use and benefit.
6-17 ARTICLE 2. DIRECTORS
6-18 SECTION 2.01. BOARD OF DIRECTORS. (a) The authority is
6-19 governed by a board of nine directors.
6-20 (b) The board shall appoint a person to fill a vacancy in
6-21 the office of director until the next election for directors. If
6-22 the position is not scheduled to be filled at the election, the
6-23 person elected to fill the position serves only for the remainder
6-24 of the unexpired term.
6-25 (c) To be eligible to serve as director, a person must be a
6-26 qualified voter in the voting district from which the person is
6-27 elected or appointed.
7-1 SECTION 2.02. METHOD OF ELECTION OF DIRECTORS. (a) One
7-2 director shall be elected from each of the nine single-member
7-3 voting districts by the qualified voters of the voting district.
7-4 (b) A person shall indicate on the person's application for
7-5 a place on the ballot the voting district that the person seeks to
7-6 represent.
7-7 (c) In the manner described by Section 49.103(d), Water
7-8 Code, the board shall redraw the single-member voting districts as
7-9 soon as practicable after:
7-10 (1) each federal decennial census; and
7-11 (2) any change in the boundaries of the authority.
7-12 (d) At the first election after each time the voting
7-13 districts are redrawn:
7-14 (1) nine new directors shall be elected to represent
7-15 the single-member voting districts; and
7-16 (2) the directors elected shall draw lots to determine
7-17 their terms so that:
7-18 (A) four directors serve two-year terms; and
7-19 (B) five directors serve four-year terms.
7-20 (e) Subchapter C, Chapter 146, Election Code, applies to the
7-21 consideration of votes for a write-in candidate for the initial
7-22 permanent director or permanent director as if the authority were a
7-23 municipality.
7-24 SECTION 2.03. SERVICE OF DIRECTORS. (a) Temporary
7-25 directors serve until the initial permanent directors are elected
7-26 under Section 2.05 of this Act.
7-27 (b) The initial permanent directors serve until permanent
8-1 directors are elected under Section 2.06 of this Act.
8-2 (c) Permanent directors serve staggered four-year terms.
8-3 (d) A director serves until the director's successor has
8-4 qualified.
8-5 SECTION 2.04. TEMPORARY DIRECTORS. (a) The temporary board
8-6 of directors is composed of three individuals appointed by the
8-7 commission.
8-8 (b) If a temporary director fails to qualify for office, the
8-9 temporary directors who have qualified shall appoint a person to
8-10 fill the vacancy. If at any time there are fewer than two
8-11 qualified temporary directors, or if the temporary directors cannot
8-12 agree on the appointment, the commission shall appoint the
8-13 necessary number of persons to fill all vacancies on the board.
8-14 (c) A temporary director is not eligible to be elected under
8-15 Section 2.05 of this Act.
8-16 SECTION 2.05. CONFIRMATION AND INITIAL PERMANENT DIRECTORS
8-17 ELECTION. (a) The temporary board of directors shall:
8-18 (1) establish nine single-member voting districts in
8-19 the manner described by Section 49.103(d), Water Code; and
8-20 (2) on the first Saturday in May 2000 hold an election
8-21 to confirm the establishment of the authority and to elect nine
8-22 initial permanent directors.
8-23 (b) A person who desires to be a candidate for the office of
8-24 initial permanent director may file an application with the
8-25 temporary board to have the candidate's name printed on the ballot.
8-26 (c) At the confirmation and initial permanent directors
8-27 election, the temporary board of directors shall have placed on the
9-1 ballot:
9-2 (1) the name of each candidate filing for the office
9-3 of director; and
9-4 (2) blank spaces to write in the names of other
9-5 persons.
9-6 (d) If the authority is created at the election, the
9-7 temporary board of directors, at the time the vote is canvassed,
9-8 shall:
9-9 (1) declare the qualified person who receives the most
9-10 votes for each position to be elected as the initial director for
9-11 that position; and
9-12 (2) include the results of the initial directors
9-13 election in the authority's election report to the commission.
9-14 (e) As soon as practicable after the initial permanent
9-15 directors have qualified, the directors shall draw lots to
9-16 determine their terms so that:
9-17 (1) four directors serve terms that expire when
9-18 permanent directors are elected at the first election held under
9-19 Section 2.06 of this Act; and
9-20 (2) five directors serve terms that expire when
9-21 permanent directors are elected at the second election held under
9-22 Section 2.06 of this Act.
9-23 (f) Section 41.001(a), Election Code, does not apply to the
9-24 confirmation and initial permanent directors election held under
9-25 this section.
9-26 (g) The temporary board of directors shall draft language
9-27 for the ballot proposition used for the confirmation election. The
10-1 ballot proposition must clearly and completely explain:
10-2 (1) the powers and duties of the authority;
10-3 (2) whether the authority has the power of eminent
10-4 domain;
10-5 (3) whether the authority has the authority to issue
10-6 bonds;
10-7 (4) whether the authority has the authority to impose
10-8 taxes; and
10-9 (5) whether the authority has the authority to impose
10-10 fees.
10-11 (h) The ballot language must explain the nature of any fees
10-12 or taxes the authority has the authority to impose.
10-13 SECTION 2.06. ELECTION DATES. On the first Saturday in May
10-14 in each subsequent even-numbered year, the appropriate number of
10-15 directors shall be elected to the board.
10-16 SECTION 2.07. COST OF ELECTION. (a) The temporary board of
10-17 the authority shall fund the cost of the confirmation and initial
10-18 permanent directors election if the temporary board is able to find
10-19 a reasonable means of funding the election.
10-20 (b) If the temporary board is unable to fund the entire cost
10-21 of the election, the temporary board of the authority and the board
10-22 of directors of the subsidence district may execute an agreement by
10-23 which:
10-24 (1) the subsidence district shall pay the portion of
10-25 the costs that could not be funded by the district; and
10-26 (2) the authority shall repay the subsidence district
10-27 for those costs within a reasonable period.
11-1 ARTICLE 3. ADMINISTRATIVE PROVISIONS
11-2 SECTION 3.01. MEETINGS AND ACTIONS OF BOARD. The board
11-3 shall meet at least four times each year and may meet at any other
11-4 time the board considers appropriate.
11-5 SECTION 3.02. GENERAL MANAGER. (a) The board shall employ
11-6 a general manager as the chief administrative officer of the
11-7 authority. The board may delegate to the general manager full
11-8 authority to manage and operate the affairs of the authority
11-9 subject only to the orders of the board.
11-10 (b) The duties of the general manager include:
11-11 (1) the administration of the orders of the board;
11-12 (2) coordination with state, federal, and local
11-13 agencies;
11-14 (3) the oversight of development of authority plans
11-15 and programs; and
11-16 (4) other duties assigned by the board.
11-17 (c) The board shall determine the terms of office and
11-18 employment and the compensation to be paid the general manager.
11-19 The general manager may be discharged by majority vote of the
11-20 board.
11-21 SECTION 3.03. EMPLOYEES; BONDS. (a) The general manager of
11-22 the authority shall employ all persons necessary for the proper
11-23 handling of the business and operations of the authority and may
11-24 employ attorneys, bookkeepers, engineers, and other expert and
11-25 specialized personnel the board considers necessary. The general
11-26 manager shall determine compensation to be paid by the authority.
11-27 (b) The general manager may discharge employees of the
12-1 authority.
12-2 (c) The general manager of the authority and each employee
12-3 or contractor of the authority who is charged with the collection,
12-4 custody, or payment of any money of the authority shall execute a
12-5 fidelity bond in an amount determined by the board and in a form
12-6 and with a surety approved by the board. The authority shall pay
12-7 for the bond.
12-8 ARTICLE 4. POWERS AND DUTIES
12-9 SECTION 4.01. GENERAL POWERS AND DUTIES. (a) The authority
12-10 has all of the rights, powers, privileges, authority, functions,
12-11 and duties necessary and convenient to accomplish the purposes of
12-12 this Act, including those provided by Chapter 49, Water Code.
12-13 (b) The authority may:
12-14 (1) provide for the conservation, preservation,
12-15 protection, recharge, and prevention of waste of groundwater, and
12-16 for the reduction of groundwater withdrawals, in a manner
12-17 consistent with the purposes of Section 59, Article XVI, Texas
12-18 Constitution;
12-19 (2) for the purposes of reducing groundwater
12-20 withdrawals and subsidence, acquire or develop surface water and
12-21 groundwater supplies from sources inside of or outside of the
12-22 boundaries of the authority and may conserve, store, transport,
12-23 treat, purify, distribute, sell, and deliver water to persons,
12-24 corporations, municipal corporations, political subdivisions of the
12-25 state, and others, inside of and outside of the boundaries of the
12-26 authority;
12-27 (3) enter into contracts with persons, including
13-1 political subdivisions of the state, on terms and conditions the
13-2 board considers desirable, fair, and advantageous for the
13-3 performance of its rights, powers, and authority under this Act;
13-4 (4) coordinate water services provided inside of,
13-5 outside of, or into the authority; and
13-6 (5) administer and enforce the provisions of the Act.
13-7 SECTION 4.02. AUTHORITY RULES. (a) The authority shall
13-8 adopt and enforce rules reasonably required to implement this Act,
13-9 including rules governing procedures before the board.
13-10 (b) The board shall compile its rules in a book and make
13-11 them available for use and inspection at the authority's principal
13-12 office.
13-13 SECTION 4.03. FEES AND CHARGES. (a) The authority may
13-14 establish fees and charges as necessary to enable the authority to
13-15 fulfill the authority's regulatory obligations provided by this
13-16 Act.
13-17 (b) The authority may charge against the owner of a well
13-18 located in the authority's boundaries a fee on the amount of water
13-19 pumped from the well. The board shall establish the rate of a fee
13-20 under this subsection only after a special meeting on the fee. The
13-21 board by rule may exempt classes of wells from the fee under this
13-22 subsection. The board may not apply the fee to a well:
13-23 (1) with a casing diameter of less than five inches
13-24 that serves a single-family dwelling;
13-25 (2) regulated under Chapter 27, Water Code; or
13-26 (3) used for irrigation of agricultural crops.
13-27 (c) Fees the board establishes must be sufficient to:
14-1 (1) achieve water conservation, prevent waste of
14-2 water, serve as a disincentive to pumping groundwater, and
14-3 accomplish the purposes of this Act, including making available
14-4 alternative water supplies; and
14-5 (2) enable the authority to meet operation and
14-6 maintenance expenses and pay the principal of and interest on debt
14-7 issued in connection with the exercise of the authority's general
14-8 powers and duties.
14-9 (d) The temporary board may set fees to pay for the initial
14-10 operation of the authority and the election of the initial
14-11 permanent board until the permanent board has been elected.
14-12 SECTION 4.04. CIVIL PENALTY; INJUNCTION. (a) A person who
14-13 violates a rule or order of the authority is subject to a civil
14-14 penalty of not less than $50 and not more than $5,000 for each
14-15 violation or each day of a continuing violation.
14-16 (b) The authority may bring an action to recover the penalty
14-17 in a district court in the county where the violation occurred.
14-18 The penalty shall be paid to the authority.
14-19 (c) The authority may bring an action for injunctive relief
14-20 in a district court in the county where a violation of an authority
14-21 rule or order occurs or is threatened to occur. The court may
14-22 grant to the authority, without bond or other undertaking, a
14-23 prohibitory or mandatory injunction that the facts warrant,
14-24 including a temporary restraining order, temporary injunction, or
14-25 permanent injunction.
14-26 (d) The authority may bring an action for a civil penalty
14-27 and injunctive relief in the same proceeding.
15-1 SECTION 4.05. WATER SUPPLY PLANS. The authority by rule
15-2 shall, as needed but not less frequently than every five years,
15-3 develop, prepare, revise, and adopt comprehensive water supply and
15-4 drought contingency plans for various areas of the authority. The
15-5 plans:
15-6 (1) must be consistent with regional planning; and
15-7 (2) must include 10-year, 20-year, and 50-year
15-8 projections of water needs within the authority.
15-9 SECTION 4.06. ACQUISITION, CONSTRUCTION, AND OPERATION OF
15-10 SYSTEMS. The authority may:
15-11 (1) acquire and provide by purchase, gift, or lease a
15-12 water treatment or supply system inside of or outside of the
15-13 authority's boundaries;
15-14 (2) design, finance, or construct a water treatment or
15-15 supply system and provide water services inside of or outside of
15-16 the authority's boundaries;
15-17 (3) operate, lease, or sell a water treatment or
15-18 supply system the authority constructs or acquires; and
15-19 (4) contract with any person to operate or maintain a
15-20 water treatment or supply system the person owns.
15-21 SECTION 4.07. SALE OR REUSE OF WATER OR BY-PRODUCT. The
15-22 authority may store, sell, or reuse:
15-23 (1) water; or
15-24 (2) any by-product from the authority's operations.
15-25 SECTION 4.08. EMINENT DOMAIN. The authority may exercise
15-26 the power of eminent domain in the manner provided in Chapter 21,
15-27 Property Code, to acquire property of any kind to further
16-1 authorized purposes of the authority. The authority may not
16-2 exercise the power of eminent domain outside of the boundaries of
16-3 the authority.
16-4 SECTION 4.09. CONTRACTS. (a) The authority may enter into
16-5 a contract with any person or legal entity regarding the
16-6 performance of any purpose or function of the authority, including
16-7 a contract to jointly construct, finance, own, or operate works,
16-8 improvements, facilities, plants, equipment, or appliances
16-9 necessary to accomplish a purpose or function of the authority. A
16-10 contract may be of unlimited duration.
16-11 (b) The authority may purchase an interest in a project used
16-12 for a purpose or function of the authority.
16-13 (c) The authority may contract for:
16-14 (1) the purchase or sale of water or water rights;
16-15 (2) the performance of activities within the powers of
16-16 the authority to promote the continuing and orderly development of
16-17 land and property in the authority through the purchase,
16-18 construction, or installation of works, improvements, facilities,
16-19 plants, equipment, or appliances so that, to the greatest extent
16-20 possible, considering sound engineering practices and economic
16-21 feasibility, all the land and property in the authority may receive
16-22 services of the works, improvements, facilities, plants, equipment,
16-23 or appliances of the authority; or
16-24 (3) the construction, ownership, maintenance, or
16-25 operation of any works, improvements, facilities, plants,
16-26 equipment, or appliances of the authority or another person or
16-27 legal entity.
17-1 (d) The authority may purchase surplus property from this
17-2 state, the United States, or another public entity through a
17-3 negotiated contract without bids.
17-4 (e) An officer, agent, or employee of the authority who is
17-5 financially interested in the contract of the type described by
17-6 Subsection (d) of this section shall disclose the interest to the
17-7 board before the board votes on the acceptance of the contract.
17-8 SECTION 4.10. COOPERATION WITH AND ASSISTANCE OF OTHER
17-9 GOVERNMENTAL ENTITIES. (a) In implementing this Act, the board
17-10 may cooperate with and request the assistance of the Texas Water
17-11 Development Board, the commission, the United States Geological
17-12 Survey, the subsidence district, other local governments, and other
17-13 agencies of the United States and this state.
17-14 (b) The subsidence district may enter into an interlocal
17-15 contract with the authority to carry out the authority's purposes
17-16 and may carry out the governmental functions and services specified
17-17 in the interlocal contract.
17-18 SECTION 4.11. GIFTS AND GRANTS. The authority is authorized
17-19 to accept a gift or grant from money collected by the subsidence
17-20 district under Chapter 151, Water Code, to fund a water treatment
17-21 or supply system. The authorization in this section is in addition
17-22 to the authorization provided in Section 49.229, Water Code.
17-23 SECTION 4.12. EXPENDITURES. (a) The authority's money may
17-24 be disbursed only by check, draft, order, or other instrument.
17-25 (b) Disbursements of the authority must be signed by at
17-26 least two directors, except the board by resolution may allow the
17-27 general manager, treasurer, bookkeeper, or other employee of the
18-1 authority to sign disbursements.
18-2 (c) The board by resolution may allow disbursements to be
18-3 transferred by federal reserve wire system to accounts in the name
18-4 of the authority.
18-5 SECTION 4.13. TAXATION. The district may not impose an ad
18-6 valorem tax.
18-7 ARTICLE 5. NOTES AND BONDS
18-8 SECTION 5.01. REVENUE NOTES. (a) The board, without an
18-9 election, may borrow money on negotiable notes of the authority to
18-10 be paid solely from the revenue derived from any legal source,
18-11 including:
18-12 (1) tolls, charges, and fees the authority imposes;
18-13 (2) the sale of water, water or sewer services, or any
18-14 other service or product of the authority;
18-15 (3) grants or gifts;
18-16 (4) the ownership and operation of all or a designated
18-17 part of the authority's works, improvements, facilities, plants, or
18-18 equipment; and
18-19 (5) contracts between the authority and any person,
18-20 including a local government.
18-21 (b) The notes may be first or subordinate lien notes at the
18-22 board's discretion. An obligation may not be a charge on the
18-23 property of the authority. An obligation may only be a charge on
18-24 revenue pledged for the payment of the obligation.
18-25 SECTION 5.02. BONDS. (a) To carry out a power or authority
18-26 conferred by this Act, the authority may issue bonds secured by all
18-27 or part of the revenue derived from any source, including any
19-1 source described by Section 5.01(a) of this Act.
19-2 (b) In issuing or securing a bond or note of the authority,
19-3 the authority may exercise any power of an issuer under Chapter
19-4 656, Acts of the 68th Legislature, Regular Session, 1983 (Article
19-5 717q, Vernon's Texas Civil Statutes).
19-6 (c) The authority may conduct a public, private, or
19-7 negotiated sale of the bonds.
19-8 (d) The authority's bonds must:
19-9 (1) be authorized by board resolution;
19-10 (2) be issued in the authority's name;
19-11 (3) be signed by the president or vice president of
19-12 the board, which may be accomplished by facsimile signature;
19-13 (4) be attested by the secretary of the board, which
19-14 may be accomplished by facsimile signature; and
19-15 (5) bear the authority's seal or facsimile seal.
19-16 (e) An authority bond may be secured by an indenture of
19-17 trust with a corporate trustee.
19-18 (f) The authority may issue bonds in more than one series as
19-19 required for carrying out the purposes of this Act. In issuing
19-20 bonds secured by revenue of the district, the authority may
19-21 reserve the right to issue additional bonds secured by the
19-22 authority's revenue that are on a parity with or are senior or
19-23 subordinate to the bonds issued earlier.
19-24 (g) The resolution authorizing the bonds or the trust
19-25 indenture securing the bonds may specify additional provisions that
19-26 constitute a contract between the authority and its bondholders.
19-27 The board may provide:
20-1 (1) for additional bond provisions; and
20-2 (2) for a corporate trustee or receiver to take
20-3 possession of the authority's facilities if the authority defaults.
20-4 (h) Section 49.181, Water Code, does not apply to bonds or
20-5 notes issued by the authority.
20-6 SECTION 5.03. REFUNDING BONDS. The provisions of this Act
20-7 that apply to the authority's issuance of other bonds, their
20-8 security, and the remedies of the holders apply to refunding bonds.
20-9 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. After the
20-10 authority authorizes bonds, the authority shall submit the bonds
20-11 and the record relating to their issuance to the attorney general
20-12 for approval. If the bonds are secured by a pledge of the proceeds
20-13 of a contract between the authority and a municipality or other
20-14 governmental agency, authority, or district, the authority shall
20-15 submit to the attorney general a copy of the contract and the
20-16 proceedings of the municipality or other governmental agency,
20-17 authority, or district authorizing the contract. If the attorney
20-18 general finds that the bonds have been authorized and each contract
20-19 has been made in accordance with the constitution and laws of this
20-20 state, the attorney general shall approve the bonds and contracts.
20-21 On approval, the bonds shall be registered by the comptroller.
20-22 SECTION 5.05. FUNDING BY OTHER DISTRICTS. (a) The
20-23 authority shall develop a procedure for cooperatively funding a
20-24 project of the authority with money from other districts inside of
20-25 the authority's boundaries if the authority project fulfills a
20-26 governmental purpose of both the authority and other districts.
20-27 (b) Not later than the 90th day before the date the
21-1 authority issues bonds, other than refunding bonds, to finance a
21-2 project, the authority shall provide written notice of the
21-3 authority's intention to issue the bonds to each district inside of
21-4 the authority's boundaries that may be benefited or affected by the
21-5 project. The notice must include the value of the bonds planned to
21-6 be issued, a description of the project the bonds would finance,
21-7 and a schedule of the portion of the project costs financed by the
21-8 bonds that may be allocated to each district benefited or affected.
21-9 The schedule must be prepared by means of a formula certified by
21-10 the authority's engineer.
21-11 (c) A district may enter into a contract with the authority
21-12 for the district to finance a portion of the proposed project with
21-13 the district's resources instead of using proceeds from bonds of
21-14 the authority for that purpose. The contract must be executed
21-15 before the authority issues the bonds. As provided in the
21-16 contract, the authority must:
21-17 (1) reduce the value of the bond issuance to the
21-18 degree that the district provides project funding; and
21-19 (2) credit the district for its contribution to the
21-20 project financing and adjust the allocation of revenue pledged to
21-21 the payment of the bonds so that the authority avoids using, to a
21-22 degree commensurate with the contribution, revenue from the
21-23 district to service the authority's bond debt or interest.
21-24 ARTICLE 6. MISCELLANEOUS PROVISIONS
21-25 SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
21-26 (a) The proper and legal notice of the intention to introduce this
21-27 Act, setting out the general substance of this Act, has been
22-1 published as provided by law, and the notice and a copy of this Act
22-2 have been furnished to all persons, agencies, officials, or
22-3 entities to which they are required to be furnished by the
22-4 constitution and other laws of this state, including the governor,
22-5 who has submitted the notice and the Act to the commission.
22-6 (b) The commission has filed its recommendations relating to
22-7 this Act with the governor, lieutenant governor, and speaker of the
22-8 house of representatives within the required time.
22-9 (c) All requirements of the constitution and laws of this
22-10 state and the rules and procedures of the legislature with respect
22-11 to notice, introduction, and passage of this Act are fulfilled and
22-12 accomplished.
22-13 SECTION 6.02. EMERGENCY. The importance of this legislation
22-14 and the crowded condition of the calendars in both houses create an
22-15 emergency and an imperative public necessity that the
22-16 constitutional rule requiring bills to be read on three several
22-17 days in each house be suspended, and this rule is hereby suspended,
22-18 and that this Act take effect and be in force from and after its
22-19 passage, and it is so enacted.