76R12084 E
By Hilbert H.B. No. 2965
Substitute the following for H.B. No. 2965:
By Counts C.S.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 and to impose taxes; 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 these 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 Subsections (b) and (c) of this section, the authority
2-23 includes all territory contained within the following area, whether
2-24 the territory contains noncontiguous parcels of land or whether the
2-25 territory is located within the boundaries of any other
2-26 governmental entity or political subdivision of the state:
2-27 BEGINNING at the intersection of the Harris and Waller County
3-1 line with the north right-of-way line of U.S. Highway 290 (current
3-2 alignment);
3-3 THENCE northwest along the Harris and Waller County line to
3-4 the intersection with Spring Creek;
3-5 THENCE continuing southeasterly along said Harris and Waller
3-6 County line, with the meanders of Spring Creek to the intersection
3-7 of the Waller and Montgomery County line;
3-8 THENCE southeasterly along the Harris and Montgomery County
3-9 line continuing with the meanders of said Spring Creek; to the
3-10 intersection with the City of Houston, corporate limits;
3-11 THENCE along said City of Houston corporate limits, the
3-12 following: south approximately one half mile; east approximately
3-13 one half mile to the City of Humble corporate limits; north along
3-14 said City of Humble corporate limits approximately one half mile to
3-15 aforementioned Spring Creek; east along Spring Creek to its
3-16 confluence with the San Jacinto River to the intersection of U.S.
3-17 Highway 59; easterly and southerly along the take line for Lake
3-18 Houston to the intersection with the southeasterly right-of-way of
3-19 the Union Pacific Railroad; southwesterly along said Union Pacific
3-20 Railroad for approximately two miles; south to the north end of
3-21 Duessen Parkway; southeast along the east side of Duessen Parkway
3-22 and along the north side of the access road to the intersection
3-23 with North Lake Houston Parkway;
3-24 THENCE departing said City of Houston corporate limits, west
3-25 along the north side of said North Lake Houston Parkway to the
3-26 beginning of Mount Houston Road, and continuing west on Mount
3-27 Houston Road to the 6900 block to the intersection of Suburban;
4-1 THENCE south along Suburban to the City of Houston corporate
4-2 limits;
4-3 THENCE along said City of Houston corporate limits, the
4-4 following: west to Hirsch Road; south along the west side of Hirsch
4-5 Road to Langely; west along the south side of Langley to the
4-6 southbound feeder road of US Highway 59; northeast along the west
4-7 side of the feeder road of US Highway 59 to Little York; west along
4-8 the south side of Little York to Bentley; north along the east side
4-9 of Bentley to Sagebrush; west along the north side of Sagebrush to
4-10 Halls Bayou; south along Halls Bayou to Little York; west along the
4-11 south side of Little York to Aldine Westfield Road; north along the
4-12 east sides of Aldine Westfield Road to its intersection with the
4-13 easterly extension of the City of Houston corporate limits; west to
4-14 the Hardy Toll Road; north along the Hardy Toll Road approximately
4-15 0.25 miles; east approximately 0.35 mile; north approximately 0.15
4-16 mile; west approximately 0.35 mile; northwest along the Hardy Toll
4-17 Road approximately 1 mile; southwesterly along an irregular path
4-18 generally west to Carby; west along Carby to Airline Drive; south
4-19 along Airline Drive to Canino; west along Canino to Sweetwater;
4-20 north along Sweetwater to West Road; west to Interstate 45/US 75;
4-21 south along Interstate 45/US 75 to south of Bluebell Road;
4-22 southerly along an irregular path generally south and west to West
4-23 Mount Houston Road; west along Mount Houston Road to a line east of
4-24 Ella Boulevard; south along a line generally parallel to Ella
4-25 Boulevard to south of West Gulf Bank; west along the south side of
4-26 West Gulf Bank to Tomball Parkway; northwest along Tomball Parkway
4-27 approximately 1.5 mile; west along an irregular path to North
5-1 Houston-Rosslyn Road; north along North Houston-Rosslyn Road to
5-2 Vogel Creek; west along Vogel Creek to the FWD CRIP RR; south
5-3 along the FWD CRIP RR to Logview; west along Logview to Hollister;
5-4 south along Hollister to White Oak Bayou; east along White Oak
5-5 Bayou to Twisting Vine; south along Twisting Vine to West Little
5-6 York; west along West Little York to Fairbanks North Houston; south
5-7 along Fairbanks North Houston to Cole Creek; west along Cole Creek
5-8 to Hempstead Road; northwest along Hempstead Road to Brittmore
5-9 Road, also being the intersection with U.S. Highway 290, Northwest
5-10 Freeway;
5-11 THENCE departing said City of Houston corporate limits and
5-12 continuing northwest along U.S. Highway 290, Northwest Freeway, at
5-13 Spencer Road;
5-14 THENCE northwest along U.S. Highway 290, Northwest Freeway
5-15 (current alignment), to the intersection of the Harris and Waller
5-16 County line, the POINT OF BEGINNING.
5-17 (b) The authority does not include any area inside the
5-18 municipal limits of the city of Houston on the effective date of
5-19 this Act.
5-20 (c) On annexation of any part of the territory of the
5-21 authority by a municipality or incorporation by a municipality of
5-22 any part of the territory of the authority, the municipality shall
5-23 assume a pro rata share of all debt of the authority payable in
5-24 whole or part by ad valorem taxes. The percentage of the
5-25 assumption shall be determined by multiplying the total debt of the
5-26 authority payable in whole or part from taxes by a fraction, the
5-27 numerator of which is the assessed value of the property to be
6-1 annexed or incorporated based on the most recent certified county
6-2 property tax rolls at the time of annexation or incorporation and
6-3 the denominator of which is the total assessed value of the
6-4 property of the authority based on the most recent certified county
6-5 property tax rolls at the time of annexation or incorporation.
6-6 After annexation by a municipality of a portion of the territory of
6-7 the authority or incorporation over any part of the territory of
6-8 the authority, the territory is no longer considered a part of the
6-9 authority for any purpose and the authority may not impose taxes on
6-10 that territory.
6-11 SECTION 1.04. EXCLUSION OF CERTAIN TERRITORY. (a) Within
6-12 60 days of petition by an incorporated municipality within the
6-13 territory described by Section 1.03 of the Act for exclusion from
6-14 the authority, the authority shall order the exclusion provided
6-15 that:
6-16 (1) concurrently with the petition the municipality
6-17 provides a certification by the subsidence district that all water
6-18 systems serving the municipality are in compliance with the
6-19 subsidence district's rules and other regulatory planning
6-20 requirements;
6-21 (2) the petition includes an accurate description of
6-22 the boundaries of the excluded territory;
6-23 (3) the petition is submitted to the authority 120
6-24 days prior to the director's election in May 2004.
6-25 (b) The authority shall file for recording in the office of
6-26 the county clerk of Harris County a copy of the order, including a
6-27 description of the authority's boundaries after the territory is
7-1 excluded. Immediately after the order and description are
7-2 recorded, the excluded territory is no longer a part of the
7-3 authority.
7-4 (c) The exclusion of territory under this section does not
7-5 diminish or impair the rights of the holders of any outstanding and
7-6 unpaid bond or note of the authority. The authority shall continue
7-7 to impose taxes each year on the excluded territory at the same
7-8 rate imposed on other territory in the authority and charge fees in
7-9 the excluded territory to the extent the tax or fee revenue is
7-10 pledged to pay an outstanding bond or note of the authority. The
7-11 authority shall pay taxes and fees collected under this subsection
7-12 only to the payment of the excluded territory's pro rata share of
7-13 the authority's indebtedness at the time the territory was
7-14 excluded. At any time, the owner of all or part of the excluded
7-15 territory may pay in full the owner's share of the excluded
7-16 territory's pro rata share of the authority's indebtedness and
7-17 receive a corresponding credit from the authority.
7-18 SECTION 1.05. APPLICABILITY OF OTHER LAW. (a) This Act
7-19 prevails over any inconsistent provision of general law.
7-20 (b) This Act shall not prevail over or preempt any provision
7-21 of Chapter 151, Water Code, or Chapter 36, Water Code, that is
7-22 being implemented by the subsidence district.
7-23 SECTION 1.06. FINDING OF BENEFIT. All the land and other
7-24 property included within the boundaries of the authority will be
7-25 benefitted by the works and projects that are to be accomplished by
7-26 the authority under powers conveyed by this Act. The authority is
7-27 created to serve a public use and benefit.
8-1 ARTICLE 2. DIRECTORS
8-2 SECTION 2.01. BOARD OF DIRECTORS. (a) The authority is
8-3 governed by a board of nine directors.
8-4 (b) The board shall appoint a person to fill a vacancy in
8-5 the office of director until the next election for directors. If
8-6 the position is not scheduled to be filled at the election, the
8-7 person elected to fill the position serves only for the remainder
8-8 of the unexpired term.
8-9 (c) To be eligible to serve as director, a person must be a
8-10 qualified voter in the voting district from which the person is
8-11 elected or appointed.
8-12 SECTION 2.02. METHOD OF ELECTION OF DIRECTORS. (a) One
8-13 director shall be elected from each of the nine single-member
8-14 voting districts by the qualified voters of the voting district.
8-15 (b) A person shall indicate on the person's application for
8-16 a place on the ballot the voting district that the person seeks to
8-17 represent.
8-18 (c) In the manner described by Section 49.103(d), Water
8-19 Code, the board shall redraw the single-member voting districts as
8-20 soon as practicable after:
8-21 (1) each federal decennial census; and
8-22 (2) any change in the boundaries of the authority.
8-23 (d) At the first election after each time the voting
8-24 districts are redrawn:
8-25 (1) nine new directors shall be elected to represent
8-26 the single-member voting districts; and
8-27 (2) the directors elected shall draw lots to determine
9-1 their terms so that:
9-2 (A) four directors serve two-year terms; and
9-3 (B) five directors serve four-year terms.
9-4 (e) Subchapter C, Chapter 146, Election Code, applies to the
9-5 consideration of votes for a write-in candidate for the initial
9-6 permanent director or permanent director as if the authority were a
9-7 municipality.
9-8 SECTION 2.03. SERVICE OF DIRECTORS. (a) Temporary
9-9 directors serve until the initial permanent directors are elected
9-10 under Section 2.05 of this Act.
9-11 (b) The initial permanent directors serve until permanent
9-12 directors are elected under Section 2.06 of this Act.
9-13 (c) Permanent directors serve staggered four-year terms.
9-14 (d) A director serves until the director's successor has
9-15 qualified.
9-16 SECTION 2.04. TEMPORARY DIRECTORS. (a) The temporary board
9-17 of directors is composed of three individuals appointed by the
9-18 commission.
9-19 (b) If a temporary director fails to qualify for office, the
9-20 temporary directors who have qualified shall appoint a person to
9-21 fill the vacancy. If at any time there are fewer than two
9-22 qualified temporary directors, or if the temporary directors cannot
9-23 agree on the appointment, the commission shall appoint the
9-24 necessary number of persons to fill all vacancies on the board.
9-25 (c) A temporary director is not eligible to be elected under
9-26 Section 2.05 of this Act.
9-27 SECTION 2.05. CONFIRMATION AND INITIAL PERMANENT DIRECTORS'
10-1 ELECTION. (a) The temporary board of directors shall:
10-2 (1) establish nine single-member voting districts in
10-3 the manner described by Section 49.103(d), Water Code; and
10-4 (2) on the first Saturday in May 2000 hold an election
10-5 to confirm the establishment of the authority and to elect nine
10-6 initial permanent directors.
10-7 (b) A person who desires to be a candidate for the office of
10-8 initial permanent director may file an application with the
10-9 temporary board to have the candidate's name printed on the ballot.
10-10 (c) At the confirmation and initial permanent directors'
10-11 election, the temporary board of directors shall have placed on the
10-12 ballot:
10-13 (1) the name of each candidate filing for the office
10-14 of director; and
10-15 (2) blank spaces to write in the names of other
10-16 persons.
10-17 (d) If the authority is created at the election, the
10-18 temporary board of directors, at the time the vote is canvassed,
10-19 shall:
10-20 (1) declare the qualified person who receives the most
10-21 votes for each position to be elected as the initial director for
10-22 that position; and
10-23 (2) include the results of the initial directors'
10-24 election in the authority's election report to the commission.
10-25 (e) As soon as practicable after the initial permanent
10-26 directors have qualified, the directors shall draw lots to
10-27 determine their terms so that:
11-1 (1) four directors serve terms that expire when
11-2 permanent directors are elected at the first election held under
11-3 Section 2.06 of this Act; and
11-4 (2) five directors serve terms that expire when
11-5 permanent directors are elected at the second election held under
11-6 Section 2.06 of this Act.
11-7 (f) Section 41.001(a), Election Code, does not apply to the
11-8 confirmation and initial permanent directors' election held under
11-9 this section.
11-10 SECTION 2.06. ELECTION DATES. On the first Saturday in May
11-11 in each subsequent even-numbered year, the appropriate number of
11-12 directors shall be elected to the board.
11-13 SECTION 2.07. COST OF ELECTION OF INITIAL PERMANENT
11-14 DIRECTORS. (a) The temporary board of the authority shall fund
11-15 the cost of the election of initial permanent directors if the
11-16 temporary board is able to find a reasonable means of funding the
11-17 election.
11-18 (b) If the temporary board is unable to fund the entire cost
11-19 of the election of initial permanent directors, then the temporary
11-20 board of the authority and the board of directors of the subsidence
11-21 district may execute an agreement by which:
11-22 (1) the subsidence district shall pay the portion of
11-23 the costs that could not be funded by the district; and
11-24 (2) the authority shall repay the subsidence district
11-25 for those costs within a reasonable time period.
11-26 ARTICLE 3. ADMINISTRATIVE PROVISIONS
11-27 SECTION 3.01. MEETINGS AND ACTIONS OF BOARD. The board
12-1 shall meet at least four times each year and may meet at any other
12-2 time considered appropriate.
12-3 SECTION 3.02. GENERAL MANAGER. (a) The board shall employ
12-4 a general manager as the chief administrative officer of the
12-5 authority. The board may delegate to the general manager full
12-6 authority to manage and operate the affairs of the authority
12-7 subject only to the orders of the board.
12-8 (b) The duties of the general manager include:
12-9 (1) administering the orders of the board;
12-10 (2) coordination with state, federal, and local
12-11 agencies;
12-12 (3) overseeing development of authority plans and
12-13 programs; and
12-14 (4) other duties assigned by the board.
12-15 (c) The board shall determine the terms of office and
12-16 employment and the compensation to be paid the general manager, and
12-17 the general manager may be discharged by majority vote of the
12-18 board.
12-19 SECTION 3.03. EMPLOYEES; BONDS. (a) The general manager of
12-20 the authority shall employ all persons necessary for the proper
12-21 handling of the business and operation of the authority and may
12-22 employ attorneys, bookkeepers, engineers, and other expert and
12-23 specialized personnel considered necessary. The general manager
12-24 shall determine compensation to be paid by the authority.
12-25 (b) The general manager may discharge employees of the
12-26 authority.
12-27 (c) The general manager of the authority and each employee
13-1 or contractor of the authority who is charged with the collection,
13-2 custody, or payment of any money of the authority shall execute a
13-3 fidelity bond in an amount determined by the board and in a form
13-4 and with a surety approved by the board. The authority shall pay
13-5 for the bond.
13-6 ARTICLE 4. POWERS AND DUTIES
13-7 SECTION 4.01. GENERAL POWERS AND DUTIES. (a) The authority
13-8 may exercise all of the rights, powers, privileges, authority,
13-9 functions, and duties necessary and convenient to accomplish the
13-10 purposes of this Act, including those provided by Chapter 49, Water
13-11 Code.
13-12 (b) The authority may:
13-13 (1) provide for the conservation, preservation,
13-14 protection, recharge, prevention of waste of groundwater, and
13-15 reduction of groundwater withdrawals in a manner consistent with
13-16 the purposes of Section 59, Article XVI, Texas Constitution;
13-17 (2) for the purposes of reducing groundwater
13-18 withdrawals and subsidence, acquire or develop surface and
13-19 underground water supplies from sources both inside and outside the
13-20 boundaries of the authority and may conserve, store, transport,
13-21 treat, purify, distribute, sell, and deliver water to persons,
13-22 corporations, municipal corporations, political subdivisions of the
13-23 state, and others, inside and outside the boundaries of the
13-24 authority;
13-25 (3) enter into contracts with persons, including the
13-26 cities and political subdivisions of the state, on terms and
13-27 conditions the board considers desirable, fair, and advantageous
14-1 for the performance of its rights, powers, and authority under this
14-2 Act;
14-3 (4) coordinate water services provided inside of,
14-4 outside of, or into the authority; and
14-5 (5) administer and enforce the provisions of the Act.
14-6 SECTION 4.02. AUTHORITY RULES. (a) The authority shall
14-7 adopt and enforce rules reasonably required to implement this Act,
14-8 including rules governing procedure before the board.
14-9 (b) The board shall compile its rules in a book and make
14-10 them available for use and inspection at the authority's principal
14-11 office.
14-12 SECTION 4.03. FEES AND CHARGES. (a) The authority may
14-13 establish fees and charges necessary to enable the authority to
14-14 fulfill the authority's regulatory obligations under this Act.
14-15 (b) The authority may charge against the owner of a well
14-16 within the authority's boundaries a fee on the amount of water
14-17 pumped from the well.
14-18 (c) The rate of a fee to be collected by the authority under
14-19 this section shall be determined by the board after a special
14-20 meeting. The fees established by the board shall be sufficient to
14-21 achieve water conservation, prevent waste of water, serve as a
14-22 disincentive to the pumping of groundwater, and accomplish any
14-23 other purpose of this Act, including but not limited to making
14-24 alternative water supplies available. The fees established by the
14-25 board under this subsection must also enable the authority to meet
14-26 operation and maintenance expenses and pay the principal of and
14-27 interest on debt issued in connection with the exercise of the
15-1 authority's general powers and duties.
15-2 (d) The fee shall not apply to:
15-3 (1) wells with a casing diameter of less than five
15-4 inches that serve a single-family dwelling;
15-5 (2) wells regulated under Chapter 27 of this code;
15-6 (3) wells used for the irrigation of agricultural
15-7 crops; and
15-8 (4) other wells as provided in the rules of the
15-9 authority.
15-10 (e) The temporary board may set fees to pay for the initial
15-11 operation of the authority and the election of the initial
15-12 permanent board, until such time as the permanent board has been
15-13 elected.
15-14 SECTION 4.04. CIVIL PENALTY; INJUNCTION. (a) A person who
15-15 violates a rule or order of the authority is subject to a civil
15-16 penalty of not less than $50 and not more than $5,000 for each
15-17 violation or each day of a continuing violation.
15-18 (b) The authority may sue to recover the penalty in a
15-19 district court in the county where the violation occurred. The
15-20 penalty shall be paid to the authority.
15-21 (c) The authority may sue for injunctive relief in a
15-22 district court in the county where a violation of an authority rule
15-23 or order occurs or is threatened to occur. The court may grant to
15-24 the authority, without bond or other undertaking, a prohibitory or
15-25 mandatory injunction that the facts warrant, including a temporary
15-26 restraining order, temporary injunction, or permanent injunction.
15-27 (d) The authority may sue for a civil penalty and injunctive
16-1 relief in the same proceeding.
16-2 SECTION 4.05. WATER SUPPLY PLANS. The authority by rule
16-3 shall, as needed but not less frequently than every five years,
16-4 develop, prepare, revise, and adopt comprehensive water supply and
16-5 drought contingency plans for various areas of authority. The
16-6 plans:
16-7 (1) must be consistent with regional planning; and
16-8 (2) shall include 10-year, 20-year, and 50-year
16-9 projections of water needs within the authority.
16-10 SECTION 4.06. ACQUISITION, CONSTRUCTION, AND OPERATION OF
16-11 SYSTEMS. In addition to the powers granted under Section 4.01 of
16-12 this Act, the authority may:
16-13 (1) acquire and provide by purchase, gift, or lease a
16-14 water treatment or supply system inside or outside of the
16-15 authority's boundaries;
16-16 (2) design, finance, or construct a water treatment or
16-17 supply system and provide water services inside or outside of the
16-18 authority's boundaries;
16-19 (3) operate, lease, or sell a water treatment or
16-20 supply system the authority constructs or acquires; and
16-21 (4) contract with any person to operate or maintain a
16-22 water treatment or supply system the person owns.
16-23 SECTION 4.07. SALE OR REUSE OF WATER OR BY-PRODUCT. The
16-24 authority may store, sell, or reuse:
16-25 (1) water; or
16-26 (2) any by-product from the authority's operations.
16-27 SECTION 4.08. EMINENT DOMAIN. The authority may exercise
17-1 the power of eminent domain in the manner provided in Chapter 21,
17-2 Property Code, to acquire property of any kind to further
17-3 authorized purposes of the authority. The authority is not
17-4 required to deposit a bond under Section 21.021(a), Property Code.
17-5 SECTION 4.09. CONTRACTS. (a) The authority may enter into
17-6 a contract with any person or legal entity regarding the
17-7 performance of any purpose or function of the authority, including
17-8 a contract to jointly construct, finance, own, or operate works,
17-9 improvements, facilities, plants, equipment, or appliances
17-10 necessary to accomplish a purpose or function of the authority. A
17-11 contract may be of unlimited duration.
17-12 (b) The authority may purchase an interest in a project used
17-13 for a purpose or function of the authority.
17-14 (c) The authority may contract for:
17-15 (1) the purchase or sale of water or water rights;
17-16 (2) the performance of activities within the powers of
17-17 the authority to promote the continuing and orderly development of
17-18 land and property in the authority through the purchase,
17-19 construction, or installation of works, improvements, facilities,
17-20 plants, equipment, or appliances so that, to the greatest extent
17-21 possible, considering sound engineering practices and economic
17-22 feasibility, all the land and property in the authority may receive
17-23 services of the works, improvements, facilities, plants, equipment,
17-24 or appliances of the authority; or
17-25 (3) the construction, ownership, maintenance, or
17-26 operation of any works, improvements, facilities, plants,
17-27 equipment, or appliances of the authority or another person or
18-1 legal entity.
18-2 (d) The authority may purchase surplus property from this
18-3 state, the United States, or another public entity through a
18-4 negotiated contract without bids.
18-5 (e) An officer, agent, or employee of the authority who is
18-6 financially interested in the contract of the type described in
18-7 Subsection (d) of this section shall disclose to the board before
18-8 the board votes on the acceptance of the contract.
18-9 SECTION 4.10. COOPERATION WITH AND ASSISTANCE OF OTHER
18-10 GOVERNMENTAL ENTITIES. (a) The board may cooperate with and
18-11 request the assistance of the Texas Water Development Board, the
18-12 commission, the United States Geological Survey, the subsidence
18-13 district, other local governments, and other agencies of the United
18-14 States and the State of Texas in implementing this Act.
18-15 (b) The subsidence district is authorized to enter into an
18-16 interlocal contract with the authority to carry out the authority's
18-17 purposes and is granted the authorities necessary to carry out the
18-18 governmental functions and services specified in the interlocal
18-19 contract.
18-20 SECTION 4.11. GIFTS AND GRANTS. The authority is authorized
18-21 to accept a gift or grant from money collected by the subsidence
18-22 district under Chapter 151, Water Code, to fund a water treatment
18-23 or supply system. The authorization in this section is in addition
18-24 to the authorization provided in Section 49.229, Water Code.
18-25 SECTION 4.12. EXPENDITURES. (a) The authority's money may
18-26 be disbursed only by check, draft, order, or other instrument.
18-27 (b) Disbursements shall be signed by at least two directors,
19-1 except the board may by resolution allow the general manager,
19-2 treasurer, bookkeeper, or other employee of the authority to sign
19-3 disbursements.
19-4 (c) The board may by resolution allow disbursements to be
19-5 transferred by federal reserve wire system to accounts in the name
19-6 of the authority.
19-7 ARTICLE 5. NOTES, BONDS, AND TAXATION
19-8 SECTION 5.01. REVENUE NOTES. (a) The board, without an
19-9 election, may borrow money on negotiable notes of the authority to
19-10 be paid solely from the revenue derived from any source other than
19-11 ad valorem taxes, including:
19-12 (1) tolls, charges, and fees the authority imposes;
19-13 (2) the sale of water, water or sewer services, or any
19-14 other service or product of the authority;
19-15 (3) grants or gifts;
19-16 (4) the ownership and operation of all or a designated
19-17 part of the authority's works, plants, improvements, facilities, or
19-18 equipment; and
19-19 (5) contracts between the authority and any person,
19-20 including a local government.
19-21 (b) The notes may be first or subordinate lien notes at the
19-22 board's discretion. An obligation may not be a charge on the
19-23 property of the authority or on taxes imposed by the authority. An
19-24 obligation may only be a charge on revenue pledged for the payment
19-25 of the obligation. A tax imposed by the authority may not be used
19-26 to pay any part of the obligation.
19-27 SECTION 5.02. BONDS. (a) To carry out a power or authority
20-1 conferred by this Act, the authority may issue bonds secured by a
20-2 pledge of ad valorem taxes or of all or part of the revenue derived
20-3 from any source other than ad valorem taxes, including any source
20-4 described by Section 5.01(a) of this Act.
20-5 (b) In issuing or securing a bond or note of the authority,
20-6 the authority may exercise any power of an issuer under Chapter
20-7 656, Acts of the 68th Legislature, Regular Session, 1983 (Article
20-8 717q, Vernon's Texas Civil Statutes).
20-9 (c) The authority may conduct a public, private, or
20-10 negotiated sale of the bonds.
20-11 (d) Bonds secured in whole or in part by taxes may not be
20-12 issued until authorized at an election called and held in
20-13 compliance with Section 36.180, Water Code.
20-14 (e) The authority's bonds must:
20-15 (1) be authorized by board resolution;
20-16 (2) be issued in the authority's name;
20-17 (3) be signed by the president or vice president of
20-18 the board, which may be accomplished by facsimile signature;
20-19 (4) be attested by the secretary of the board, which
20-20 may accomplished by facsimile signature; and
20-21 (5) bear the authority's seal or facsimile seal.
20-22 (f) An authority bond may be secured by an indenture of
20-23 trust with a corporate trustee.
20-24 (g) The authority may issue bonds in more than one series as
20-25 required for carrying out the purposes of this Act. The authority
20-26 may, in issuing bonds secured by the authority's ad valorem taxes
20-27 or by revenue, reserve the right to issue additional bonds secured
21-1 by the authority's ad valorem taxes or by revenue that are on a
21-2 parity with or are senior or subordinate to the bonds issued
21-3 earlier.
21-4 (h) The resolution authorizing the bonds or the trust
21-5 indenture securing the bonds may specify additional provisions that
21-6 constitute a contract between the authority and its bondholders.
21-7 The board may provide:
21-8 (1) for additional bond provisions; and
21-9 (2) for a corporate trustee or receiver to take
21-10 possession of the authority's facilities if the authority defaults.
21-11 (i) Section 49.181, Water Code, does not apply to bonds or
21-12 notes issued by the authority.
21-13 SECTION 5.03. REFUNDING BONDS. The provisions of this Act
21-14 that apply to the authority's issuance of other bonds, their
21-15 security, and the remedies of the holders apply to refunding bonds.
21-16 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. After the
21-17 authority authorizes bonds, the authority shall submit the bonds
21-18 and the record relating to their issuance to the attorney general
21-19 for approval. If the bonds are secured by a pledge of the proceeds
21-20 of a contract between the authority and a municipality or other
21-21 governmental agency, authority, or district, the authority shall
21-22 submit to the attorney general a copy of the contract and the
21-23 proceedings of the municipality or other governmental agency,
21-24 authority, or district authorizing the contract. If the attorney
21-25 general finds that the bonds have been authorized and each contract
21-26 has been made in accordance with the constitution and laws of this
21-27 state, the attorney general shall approve the bonds and contracts.
22-1 On approval, the bonds shall be registered by the comptroller.
22-2 SECTION 5.05. FUNDING BY OTHER DISTRICTS. (a) The
22-3 authority shall develop a procedure for cooperatively funding a
22-4 project of the authority with money from other districts inside of
22-5 the authority's boundaries if the authority project fulfills a
22-6 governmental purpose of both the authority and other districts.
22-7 (b) Not later than the 90th day before the date the
22-8 authority issues bonds, other than refunding bonds, to finance a
22-9 project, the authority shall provide written notice of the
22-10 authority's intention to issue the bonds to each district inside of
22-11 the authority's boundaries that may be benefitted or affected by
22-12 the project. The notice must include the value of the bonds
22-13 planned to be issued, a description of the project the bonds would
22-14 finance, and a schedule of the portion of the project costs
22-15 financed by the bonds that may be allocated to each district
22-16 benefitted or affected. The schedule must be prepared by means of
22-17 a formula certified by the authority's engineer.
22-18 (c) A district may enter into a contract with the authority
22-19 for the district to finance a portion of the proposed project with
22-20 the district's resources instead of using proceeds from bonds of
22-21 the authority for that purpose. The contract must be executed
22-22 before the authority issues the bonds. If a contract is executed
22-23 under this section, the project may not be financed in any part
22-24 with bonds of the authority payable with revenue derived from ad
22-25 valorem taxes. As provided in the contract, the authority must:
22-26 (1) reduce the value of the bond issuance to the
22-27 degree that the district provides project funding; and
23-1 (2) credit the district for its contribution to the
23-2 project financing and adjust the allocation of revenue pledged to
23-3 the payment of the bonds so that the authority avoids using, to a
23-4 degree commensurate with the contribution, revenue from the
23-5 district to service the authority's bond debt or interest.
23-6 ARTICLE 6. MISCELLANEOUS PROVISIONS
23-7 SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
23-8 (a) The proper and legal notice of the intention to introduce this
23-9 Act, setting out the general substance of this Act, has been
23-10 published as provided by law, and the notice and a copy of this Act
23-11 have been furnished to all persons, agencies, officials, or
23-12 entities to which they are required to be furnished by the
23-13 constitution and other laws of this state, including the governor,
23-14 who has submitted the notice and the Act to the commission.
23-15 (b) The commission has filed its recommendations relating to
23-16 this Act with the governor, lieutenant governor, and speaker of the
23-17 house of representatives within the required time.
23-18 (c) All requirements of the constitution and laws of this
23-19 state and the rules and procedures of the legislature with respect
23-20 to notice, introduction, and passage of this Act are fulfilled and
23-21 accomplished.
23-22 SECTION 6.02. EMERGENCY. The importance of this legislation
23-23 and the crowded condition of the calendars of both houses create an
23-24 emergency and an imperative public necessity that the
23-25 constitutional rule requiring bills to be read on three several
23-26 days in each house be suspended, and this rule is hereby suspended,
23-27 and that this Act take effect and be in force from and after its
24-1 passage, and it is so enacted.