By Lindsay S.B. No. 700
76R333 JJT-D
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 conservation and reclamation
1-9 district, to be known as the North Harris County Regional Water
1-10 Authority, is created in Harris County. The district is a
1-11 governmental agency and a body politic and corporate.
1-12 (b) The district is created under and is essential to
1-13 accomplish the purposes provided by Section 59, Article XVI, Texas
1-14 Constitution.
1-15 SECTION 1.02. DEFINITIONS. In this Act:
1-16 (1) "Board" means the board of directors of the
1-17 district.
1-18 (2) "Commission" means the Texas Natural Resource
1-19 Conservation Commission.
1-20 (3) "Director" means a member of the board.
1-21 (4) "District" means the North Harris County Regional
1-22 Water Authority.
1-23 (5) "Local government" means a municipality, county,
1-24 river authority, or water district or authority acting under
2-1 Section 52, Article III, or Section 59, Article XVI, Texas
2-2 Constitution.
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; and
2-13 (B) any surface water, natural or artificial,
2-14 navigable or nonnavigable.
2-15 SECTION 1.03. DESCRIPTION OF BOUNDARIES. (a) Except as
2-16 provided by Subsections (b) and (c) of this section, the district
2-17 includes all the territory contained within the following area,
2-18 whether the territory contains noncontiguous parcels of land or
2-19 whether the territory is located within the boundaries of any other
2-20 governmental entity or political subdivision of the state:
2-21 BEGINNING at the intersection of the Harris and Waller County
2-22 line with the north right-of-way line of US Highway 290;
2-23 THENCE northwest along the Harris and Waller County line to
2-24 the intersection with Spring Creek;
2-25 THENCE continuing southeasterly along said Harris and Waller
2-26 County line, with the meanders of Spring Creek to the intersection
2-27 of the Waller and Montgomery County line;
3-1 THENCE southeasterly along the Harris and Montgomery County
3-2 line continuing with the meanders of said Spring Creek; to the
3-3 intersection with the City of Houston, corporate limits;
3-4 THENCE along said City of Houston corporate limits the
3-5 following: south approximately one half mile; east approximately
3-6 one half mile to the City of Humble corporate limits; north along
3-7 said City of Humble corporate limits approximately one half mile to
3-8 aforementioned Spring Creek; east along Spring Creek to its
3-9 confluence with the San Jacinto River to the intersection of US
3-10 Highway 59; easterly and southerly along the take line for Lake
3-11 Houston to the intersection with the southeasterly right-of-way of
3-12 the Union Pacific Railroad southwesterly along said Union Pacific
3-13 Railroad for approximately two miles; south to the north end of
3-14 Duessen Parkway; southeast along the east side of Duessen Parkway
3-15 and along the north side of the access road to the intersection
3-16 with North Lake Houston Parkway.
3-17 THENCE departing said City of Houston corporate limits, west
3-18 along the north side of said North Lake Houston Parkway to the
3-19 beginning of Mount Houston Road, and continuing west on Mount
3-20 Houston Road to the 6900 block to the intersection of Suburban;
3-21 THENCE south along Suburban to the City of Houston corporate
3-22 limits;
3-23 THENCE along said City of Houston corporate limits, the
3-24 following: west to Hirsch Road; south along the west side of
3-25 Hirsch Road to Langley; west along the south side of Langley to the
3-26 southbound feeder road of US Highway 59; northeast along the west
3-27 side of the feeder road of US Highway 59 to Little York; west along
4-1 the south side of Little York to Bentley; north along the east side
4-2 of Bentley to Sagebrush; west along the north side of Sagebrush to
4-3 Halls Bayou; south along Halls Bayou to Little York; west along the
4-4 south side of Little York to Aldine Westfield Road; north along the
4-5 east sides of Aldine Westfield Road to its intersection with the
4-6 easterly extension of the City of Houston corporate limits; west to
4-7 the Hardy Toll Road; north along the Hardy Toll Road approximately
4-8 0.25 mile, east approximately 0.35 mile, north approximately 0.15
4-9 mile, west approximately 0.35 mile; northwest along the Hardy Toll
4-10 Road approximately 1 mile; southwesterly along an irregular path
4-11 generally west to Carby; west along Carby to Airline Dr.; south
4-12 along Airline Dr. to Canino; west along Canino to Sweetwater; north
4-13 along Sweetwater to West Road; west to Interstate 45/US 75; south
4-14 along Interstate 45/US 75 to south of Bluebell Rd.; southerly along
4-15 an irregular path generally south and west to West Mount Houston
4-16 Rd.; west along Mount Houston Road to a line east of Ella
4-17 Boulevard; south along a line generally parallel to Ella Blvd. to
4-18 south of W. Gulf Bank; west along the south side of W. Gulf Bank to
4-19 Tomball Parkway; northwest along Tomball Parkway approximately 1.5
4-20 miles; west along an irregular path to N. Houston-Rosslyn Rd.;
4-21 north along N. Houston-Rosslyn Rd. to Vogel Creek; west along Vogel
4-22 Creek to the FWD CRIP RR; south along the FWD CRIP RR to Logview;
4-23 west along Logview to Hollister; south along Hollister to White Oak
4-24 Bayou; east along White Oak Bayou to Twisting Vine; south along
4-25 Twisting Vine to West Little York, west along West Little York to
4-26 Fairbanks N. Houston; south along Fairbanks N. Houston to Cole
4-27 Creek; west along Cole Creek to Hempstead Highway; northwest along
5-1 Hempstead Highway to West Sam Houston Parkway North.
5-2 THENCE departing said City of Houston corporate limits and
5-3 continuing northwest along Hempstead Highway to US 290 at Spencer
5-4 Road;
5-5 THENCE northwest along US 290 to the intersection of the
5-6 Harris and Waller County line, the POINT OF BEGINNING.
5-7 (b) The district does not include any area inside the
5-8 municipal limits of the city of Houston on the effective date of
5-9 this Act.
5-10 (c) On annexation of any part of the territory of the
5-11 district by a municipality or incorporation by a municipality of
5-12 any part of the territory of the district, the municipality shall
5-13 assume a pro rata share of all debt of the district payable in
5-14 whole or in part by ad valorem taxes. The percentage of the
5-15 assumption shall be determined by multiplying the total debt of the
5-16 district payable in whole or in part from taxes by a fraction, the
5-17 numerator of which is the assessed value of the property to be
5-18 annexed or incorporated based on the most recent certified county
5-19 property tax rolls at the time of annexation or incorporation and
5-20 the denominator of which is the total assessed value of the
5-21 property of the district based on the most recent certified county
5-22 property tax rolls at the time of annexation or incorporation.
5-23 After annexation by a municipality of a portion of the territory of
5-24 the district or incorporation over any part of the territory of the
5-25 district, the territory is no longer considered a part of the
5-26 district for any purpose and the district may not impose taxes on
5-27 that territory.
6-1 SECTION 1.04. EXCLUSION OF CERTAIN TERRITORY. (a) The
6-2 governing body of a political subdivision within the territory
6-3 described by Section 1.03 of this Act may request the subsidence
6-4 district to certify that water systems serving the political
6-5 subdivision are in compliance with the subsidence district's rules.
6-6 The subsidence district shall issue a letter granting or denying
6-7 certification not later than the 30th day after the date the
6-8 subsidence district receives the request for certification.
6-9 (b) The governing body of a political subdivision whose
6-10 water systems the subsidence district has certified under
6-11 Subsection (a) of this section by order may exclude from the
6-12 district the area inside the subdivision's territorial limits.
6-13 (c) An order issued under Subsection (b) of this section
6-14 must include an accurate description of the boundaries of the
6-15 excluded territory.
6-16 (d) The governing body of the political subdivision shall
6-17 file a copy of the order in the office of the county clerk of
6-18 Harris County and present a copy of the order to the board. On
6-19 receipt of the copy of the order, the board shall file with the
6-20 office of the county clerk of Harris County a description of the
6-21 district's boundaries after the territory is excluded. The county
6-22 clerk shall record the order and the description of the district's
6-23 boundaries in the county records. Immediately after the order and
6-24 description are recorded, the excluded territory is no longer a
6-25 part of the district.
6-26 (e) The exclusion of territory under this section does not
6-27 diminish or impair the rights of the holders of any outstanding and
7-1 unpaid bond or note of the district. The district shall continue
7-2 to impose taxes each year on the excluded territory at the same
7-3 rate imposed on other territory in the district and charge fees in
7-4 the excluded territory to the extent the tax or fee revenue is
7-5 pledged to pay an outstanding bond or note of the district. The
7-6 district shall apply taxes and fees collected under this subsection
7-7 only to the payment of the excluded territory's pro rata share of
7-8 the district's indebtedness at the time the territory was excluded.
7-9 At any time, the owner of all or part of the excluded territory may
7-10 pay in full the owner's share of the excluded territory's pro rata
7-11 share of the district's indebtedness and receive a corresponding
7-12 credit from the district.
7-13 SECTION 1.05. APPLICABILITY OF OTHER LAW. This Act prevails
7-14 over any inconsistent provision of general law.
7-15 SECTION 1.06. FINDING OF BENEFIT. All the land and other
7-16 property included within the boundaries of the district will be
7-17 benefited by the works and projects that are to be accomplished by
7-18 the district under powers conveyed by this Act. The district is
7-19 created to serve a public use and benefit.
7-20 ARTICLE 2. DIRECTORS
7-21 SECTION 2.01. BOARD OF DIRECTORS. (a) The district is
7-22 governed by a board of nine directors.
7-23 (b) A vacancy in the office of director shall be filled by
7-24 appointment of the board until the next election for directors. If
7-25 the position is not scheduled to be filled at the election, the
7-26 person elected to fill the position shall serve only for the
7-27 remainder of the unexpired term.
8-1 (c) To be eligible to serve as director, a person must be a
8-2 qualified voter in the voting district from which the person is
8-3 elected or appointed if representing a voting district or in the
8-4 district if representing the district at large.
8-5 SECTION 2.02. METHOD OF ELECTION OF DIRECTORS. (a) One
8-6 director shall be elected from each of nine single-member voting
8-7 districts by the qualified voters of the voting district.
8-8 (b) A person shall indicate on the person's application for
8-9 a place on the ballot the voting district that the person seeks to
8-10 represent.
8-11 (c) In the manner described by Section 49.103(d), Water
8-12 Code, the board shall redraw the single-member voting districts as
8-13 soon as practicable after:
8-14 (1) each federal decennial census; and
8-15 (2) any change in the district's boundaries.
8-16 (d) At the first election after each time the voting
8-17 districts are redrawn:
8-18 (1) nine new directors shall be elected to represent
8-19 the single-member voting districts; and
8-20 (2) the directors elected shall draw lots to determine
8-21 their terms so that:
8-22 (A) four directors serve two-year terms; and
8-23 (B) five directors serve four-year terms.
8-24 (e) Subchapter C, Chapter 146, Election Code, applies to the
8-25 consideration of votes for a write-in candidate for initial
8-26 permanent director or permanent director as if the district were a
8-27 municipality.
9-1 SECTION 2.03. SERVICE OF DIRECTORS. (a) Temporary
9-2 directors serve until the initial permanent directors are elected
9-3 under Section 2.05 of this Act.
9-4 (b) The initial permanent directors serve until permanent
9-5 directors are elected under Section 2.06 of this Act.
9-6 (c) Permanent directors serve staggered four-year terms.
9-7 (d) A director serves until the director's successor has
9-8 qualified.
9-9 SECTION 2.04. TEMPORARY DIRECTORS. (a) The temporary board
9-10 of directors is composed of three individuals appointed by the
9-11 commission.
9-12 (b) If a temporary director fails to qualify for office, the
9-13 temporary directors who have qualified shall appoint a person to
9-14 fill the vacancy. If at any time there are fewer than two
9-15 qualified temporary directors, or if the temporary directors cannot
9-16 agree on the appointment, the commission shall appoint the
9-17 necessary number of persons to fill all vacancies on the board.
9-18 (c) A temporary director is not eligible to be elected under
9-19 Section 2.05 of this Act.
9-20 SECTION 2.05. INITIAL PERMANENT DIRECTORS. (a) The
9-21 temporary board of directors shall:
9-22 (1) establish nine single-member voting districts in
9-23 the manner described by Section 49.103(d), Water Code; and
9-24 (2) on the third Saturday in January, 2000, hold an
9-25 election to elect nine initial permanent directors.
9-26 (b) A person who desires to be a candidate for the office of
9-27 initial permanent director may file an application with the
10-1 temporary board to have the candidate's name printed on the ballot.
10-2 (c) For the initial permanent directors' election, the
10-3 temporary board of directors shall have placed on the ballot:
10-4 (1) the name of each candidate filing for the office
10-5 of director; and
10-6 (2) blank spaces to write in the names of other
10-7 persons.
10-8 (d) As soon as practicable after the initial permanent
10-9 directors have qualified, the directors shall draw lots to
10-10 determine their terms so that:
10-11 (1) four directors serve terms that expire when
10-12 permanent directors are elected at the first election held under
10-13 Section 2.06 of this Act; and
10-14 (2) five directors serve terms that expire when
10-15 permanent directors are elected at the second election held under
10-16 Section 2.06 of this Act.
10-17 (e) Section 41.001(a), Election Code, does not apply to the
10-18 initial permanent directors' election held under this section.
10-19 SECTION 2.06. ELECTION DATES. On the third Saturday in
10-20 January in each subsequent even-numbered year, the appropriate
10-21 number of directors shall be elected to the board.
10-22 SECTION 2.07. COST OF ELECTION OF INITIAL PERMANENT
10-23 DIRECTORS. The temporary board of the district and the board of
10-24 directors of the subsidence district shall execute an agreement by
10-25 which:
10-26 (1) the subsidence district shall pay the costs of the
10-27 election under Section 2.05 of this Act; and
11-1 (2) the district shall repay the subsidence district
11-2 for those costs.
11-3 ARTICLE 3. ADMINISTRATIVE PROVISIONS
11-4 SECTION 3.01. MEETINGS AND ACTIONS OF BOARD. The board
11-5 shall meet at least four times each year and may meet at any other
11-6 time considered appropriate.
11-7 SECTION 3.02. EMPLOYEE BONDS. (a) Each employee or
11-8 contractor of the district who is charged with the collection,
11-9 custody, or payment of any money of the district shall execute a
11-10 fidelity bond in an amount determined by the board and in a form
11-11 and with a surety approved by the board.
11-12 (b) The district shall pay the premiums on any bonds
11-13 required under this section.
11-14 ARTICLE 4. POWERS AND DUTIES
11-15 SECTION 4.01. GENERAL POWERS AND DUTIES. (a) The district
11-16 may exercise all of the rights, powers, privileges, authority,
11-17 functions, and duties necessary and convenient to accomplish the
11-18 purposes of this Act, including those provided by Chapters 36 and
11-19 49, Water Code, except the following provisions of Chapter 36,
11-20 Water Code:
11-21 (1) Section 36.101;
11-22 (2) Section 36.116; and
11-23 (3) Section 36.205(c)(2).
11-24 (b) The district may not take any action under Section
11-25 36.113(e), Water Code, related to the control or prevention of
11-26 subsidence.
11-27 (c) The district may:
12-1 (1) provide for the conservation, preservation,
12-2 protection, recharge, and prevention of waste of groundwater,
12-3 groundwater reservoirs, or subdivisions of groundwater reservoirs
12-4 in a manner consistent with the purposes of Section 59, Article
12-5 XVI, Texas Constitution;
12-6 (2) provide for a water treatment or water supply
12-7 system to end subsidence in a manner consistent with Chapter 151,
12-8 Water Code;
12-9 (3) administer and enforce the provisions of this Act;
12-10 (4) coordinate water services provided inside of,
12-11 outside of, or into the district;
12-12 (5) contract for production, treatment, or supply of
12-13 water inside or outside of the district; and
12-14 (6) enter into interlocal contracts under Chapter 791,
12-15 Government Code.
12-16 (d) The district shall consult with the subsidence district
12-17 on any matter involving subsidence inside of the district's
12-18 boundaries.
12-19 (e) The rights, powers, privileges, authority, functions,
12-20 and duties of the district are subject to the continuing right of
12-21 supervision of the state to be as exercised by and through the
12-22 commission.
12-23 SECTION 4.02. DISTRICT RULES. (a) The district shall adopt
12-24 and enforce rules reasonably required to implement this Act,
12-25 including rules governing procedure and practice before the board.
12-26 (b) The district shall print its rules and furnish copies of
12-27 the rules to any person on written request.
13-1 SECTION 4.03. FEES AND CHARGES. (a) The district may
13-2 establish fees and charges necessary to enable the district to
13-3 fulfill the district's obligations under this Act.
13-4 (b) The district may establish fees to recover capital
13-5 expenditures as provided by Chapter 395, Local Government Code.
13-6 SECTION 4.04. INSPECTIONS AND INVESTIGATIONS. The district
13-7 may enter public or private property in the district to inspect or
13-8 investigate conditions relating to the district's authorized
13-9 purposes under the same provisions and restrictions applicable to
13-10 the commission under general law.
13-11 SECTION 4.05. HEARING AND ORDER. (a) The board may:
13-12 (1) hold hearings, receive evidence from a party in
13-13 interest who appears before the board, compel the attendance of
13-14 witnesses, and make findings of fact and determinations with
13-15 respect to administering this Act or any order or rule of the
13-16 district; and
13-17 (2) delegate to one or more of its members or
13-18 employees the authority to take testimony and administer oaths in a
13-19 hearing held or authorized to be held by the district.
13-20 (b) An order of the board must be:
13-21 (1) in the district's name; and
13-22 (2) attested by proper members of the board under the
13-23 district's rules.
13-24 SECTION 4.06. CIVIL PENALTY; INJUNCTION. (a) A person who
13-25 violates a rule, permit, or order of the district is subject to a
13-26 civil penalty of not less than $50 and not more than $5,000 for
13-27 each violation or each day of a continuing violation.
14-1 (b) The district may sue to recover the penalty in a
14-2 district court in the county where the violation occurred. The
14-3 penalty shall be paid to the district.
14-4 (c) The district may sue for injunctive relief in a district
14-5 court in the county where a violation of a district rule, permit,
14-6 or order occurs or is threatened to occur. The court may grant to
14-7 the district, without bond or other undertaking, a prohibitory or
14-8 mandatory injunction that the facts warrant, including a temporary
14-9 restraining order, temporary injunction, or permanent injunction.
14-10 (d) The district may sue for a civil penalty and injunctive
14-11 relief in the same proceeding.
14-12 SECTION 4.07. JUDICIAL REVIEW. (a) A rule, order, or other
14-13 official action of the district under this chapter may be appealed
14-14 to a district court in Harris County by any adversely affected
14-15 person. An appeal must be filed not later than the 45th day after
14-16 the date the rule is adopted, order is issued, or other action
14-17 takes effect.
14-18 (b) On written request of a person who resides or owns real
14-19 property in the district, the board shall make written findings of
14-20 fact and conclusions of law regarding a rule, order, or other
14-21 action of the district and provide a certified copy of the findings
14-22 and conclusions to the person not later than the 35th day after the
14-23 date the district receives the request.
14-24 (c) The review on appeal is under the substantial evidence
14-25 rule as described by Section 2001.174, Government Code.
14-26 SECTION 4.08. WATER SUPPLY PLANS. The district by rule
14-27 shall, as needed but not less frequently than every five years,
15-1 develop, prepare, revise, and adopt comprehensive water supply
15-2 plans for various areas of the district. The plans:
15-3 (1) must be consistent with standards adopted by the
15-4 commission;
15-5 (2) must be consistent with regional planning; and
15-6 (3) shall include 10-year, 20-year, and 50-year
15-7 projections of water needs within the district.
15-8 SECTION 4.09. ACQUISITION, CONSTRUCTION, AND OPERATION OF
15-9 SYSTEMS. The district may:
15-10 (1) acquire and provide by purchase, gift, or lease a
15-11 water treatment or supply system inside or outside of the district
15-12 boundaries;
15-13 (2) design, finance, or construct a water treatment or
15-14 supply system and provide wholesale water services inside or
15-15 outside of the district boundaries;
15-16 (3) operate, lease, or sell a water treatment or
15-17 supply system the district constructs or acquires; and
15-18 (4) contract with any person to operate or maintain a
15-19 water treatment or supply system the person owns.
15-20 SECTION 4.10. SYSTEM CONTRACTS. (a) The district may
15-21 contract to receive, treat, and supply water to or from any person
15-22 inside or outside the district.
15-23 (b) In a contract under this section, the district shall set
15-24 fees according to:
15-25 (1) the quality and quantity of the water;
15-26 (2) the difficulty in treating the water;
15-27 (3) operation and maintenance expenses and debt
16-1 retirement service costs; and
16-2 (4) any other reasonable consideration.
16-3 SECTION 4.11. SALE OR REUSE OF WATER OR BY-PRODUCT. The
16-4 district may store, sell, or reuse:
16-5 (1) water; or
16-6 (2) any by-product from the district's operation.
16-7 SECTION 4.12. EMINENT DOMAIN. The district may exercise the
16-8 power of eminent domain under Chapter 21, Property Code, to acquire
16-9 property of any kind to further authorized district purposes. The
16-10 district is not required to deposit a bond under Section 21.021(a),
16-11 Property Code.
16-12 SECTION 4.13. CONTRACTS. (a) The district may enter into a
16-13 contract with any person or legal entity regarding the performance
16-14 of any purpose or function of the district, including a contract to
16-15 jointly construct, finance, own, or operate works, improvements,
16-16 facilities, plants, equipment, or appliances necessary to
16-17 accomplish a purpose or function of the district. A contract may be
16-18 of unlimited duration.
16-19 (b) The district may purchase an interest in a project used
16-20 for a purpose or function of the district.
16-21 (c) The district may contract for:
16-22 (1) the purchase or sale of water;
16-23 (2) the performance of activities within the authority
16-24 of the district to promote the continuing and orderly development
16-25 of land and property in the district through the purchase,
16-26 construction, or installation of works, improvements, facilities,
16-27 plants, equipment, or appliances so that, to the greatest extent
17-1 possible considering sound engineering practices and economic
17-2 feasibility, all of the land and property in the district may
17-3 receive services of the works, improvements, facilities, plants,
17-4 equipment, or appliances of the district; or
17-5 (3) the conservation, ownership, maintenance, or
17-6 operation of any works, improvements, facilities, plants,
17-7 equipment, or appliances of the district or another person or legal
17-8 entity.
17-9 (d) The district may purchase surplus property from this
17-10 state, the United States, or another public entity through a
17-11 negotiated contract without bids.
17-12 (e) An officer, agent, or employee of the district who is
17-13 financially interested in a contract of the type described in
17-14 Subsection (d) of this section shall disclose the interest to the
17-15 board before the board votes on the acceptance of the contract.
17-16 (f) Notwithstanding any provision of a municipality's
17-17 charter, a contract between the district and the municipality is
17-18 not required to be submitted to the municipality's electorate.
17-19 SECTION 4.14. GIFTS AND GRANTS. The district may accept and
17-20 use a gift or grant from the subsidence district from money
17-21 collected by the subsidence district under Chapter 36, Water Code,
17-22 to fund a water treatment or supply system in the district.
17-23 ARTICLE 5. NOTES, BONDS, AND TAXATION
17-24 SECTION 5.01. REVENUE NOTES. (a) The board, without an
17-25 election, may borrow money on negotiable notes of the district to
17-26 be paid solely from the revenue derived from any source other than
17-27 ad valorem taxes, including:
18-1 (1) tolls, charges, and fees the district imposes;
18-2 (2) the sale of water, water or sewer services, or any
18-3 other service or product of the district;
18-4 (3) grants or gifts;
18-5 (4) the ownership and operation of all or a designated
18-6 part of the district's works, plants, improvements, facilities, or
18-7 equipment; and
18-8 (5) contracts between the district and any person,
18-9 including a local government.
18-10 (b) The notes may be first or subordinate lien notes at the
18-11 board's discretion. An obligation may not be a charge on the
18-12 property of the district or on taxes imposed by the district. An
18-13 obligation may only be a charge on revenue pledged for the payment
18-14 of the obligation. A tax imposed by the district may not be used
18-15 to pay any part of the obligation.
18-16 SECTION 5.02. BONDS. (a) To carry out a power or authority
18-17 conferred by this Act, the district may issue bonds secured by a
18-18 pledge of ad valorem taxes or of all or part of the revenue derived
18-19 from any source other than ad valorem taxes, including any source
18-20 described by Section 5.01(a) of this Act.
18-21 (b) In issuing or securing a bond or note of the district,
18-22 the district may exercise any power of an issuer under Chapter 656,
18-23 Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
18-24 Vernon's Texas Civil Statutes).
18-25 (c) The district may conduct a public, private, or
18-26 negotiated sale of the bonds.
18-27 (d) Bonds secured in whole or in part by taxes may not be
19-1 issued until authorized at an election called and held in
19-2 compliance with Section 36.180, Water Code.
19-3 (e) The district's bonds must:
19-4 (1) be authorized by board resolution;
19-5 (2) be issued in the district's name;
19-6 (3) be signed by the president or vice president of
19-7 the board, which may be accomplished by facsimile signature;
19-8 (4) be attested by the secretary of the board, which
19-9 may be accomplished by facsimile signature; and
19-10 (5) bear the district's seal or a facsimile seal.
19-11 (f) A district bond may be secured by an indenture of trust
19-12 with a corporate trustee.
19-13 (g) The district may issue bonds in more than one series as
19-14 required for carrying out the purposes of this Act. The district
19-15 may, in issuing bonds secured by the district's ad valorem taxes or
19-16 by revenue, reserve the right to issue additional bonds secured by
19-17 the district's ad valorem taxes or by revenue that are on a parity
19-18 with or are senior or subordinate to the bonds issued earlier.
19-19 (h) The resolution authorizing the bonds or the trust
19-20 indenture securing the bonds may specify additional provisions that
19-21 constitute a contract between the district and its bondholders.
19-22 The board may provide:
19-23 (1) for additional bond provisions; and
19-24 (2) for a corporate trustee or receiver to take
19-25 possession of the district's facilities if the district defaults.
19-26 (i) Sections 36.171 and 49.181, Water Code, do not apply to
19-27 bonds or notes issued by the district.
20-1 SECTION 5.03. REFUNDING BONDS. The provisions of this Act
20-2 that apply to the district's issuance of other bonds, their
20-3 security, and the remedies of the holders apply to refunding bonds.
20-4 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. After the
20-5 district authorizes bonds, the district shall submit the bonds and
20-6 the record relating to their issuance to the attorney general for
20-7 approval. If the bonds are secured by a pledge of the proceeds of
20-8 a contract between the district and a municipality or other
20-9 governmental agency, authority, or district, the district shall
20-10 submit to the attorney general a copy of the contract and the
20-11 proceedings of the municipality or other governmental agency,
20-12 authority, or district authorizing the contract. If the attorney
20-13 general finds that the bonds have been authorized and each contract
20-14 has been made in accordance with the constitution and laws of this
20-15 state, the attorney general shall approve the bonds and contracts.
20-16 On approval, the bonds shall be registered by the comptroller.
20-17 SECTION 5.05. FUNDING BY OTHER CONSERVATION AND RECLAMATION
20-18 DISTRICTS. (a) The district shall develop a procedure for
20-19 cooperatively funding a district project with money from other
20-20 conservation and reclamation districts inside of the district's
20-21 boundaries if the district project fulfills a governmental purpose
20-22 of both districts.
20-23 (b) Not later than the 90th day before the date the district
20-24 issues bonds, other than refunding bonds, to finance a project,
20-25 the district shall provide written notice of the district's
20-26 intention to issue the bonds to each conservation and reclamation
20-27 district inside of the district's boundaries that may be benefited
21-1 or affected by the project. The notice must include the value of
21-2 the bonds planned to be issued, a description of the project the
21-3 bonds would finance, and a schedule of the portion of the project
21-4 costs financed by the bonds that may be allocated to each
21-5 conservation and reclamation district benefited or affected. The
21-6 schedule must be prepared by means of a formula certified by the
21-7 district engineer.
21-8 (c) A conservation or reclamation district may enter into a
21-9 contract with the district for the conservation and reclamation
21-10 district to finance a portion of the proposed project with the
21-11 conservation and reclamation district's resources instead of using
21-12 proceeds from district bonds for that purpose. The contract must
21-13 be executed before the district issues the bonds. If a contract is
21-14 executed under this section, the project may not be financed in any
21-15 part with bonds payable with revenue derived from ad valorem taxes.
21-16 As provided in the contract, the district must:
21-17 (1) reduce the value of the bond issuance to the
21-18 degree that the conservation and reclamation district provides
21-19 project funding; and
21-20 (2) credit the conservation and reclamation district
21-21 for its contribution to the project financing and adjust the
21-22 allocation of revenue pledged to the payment of the bonds so that
21-23 revenue from the conservation and reclamation district is not used
21-24 to service the bond debt or interest to a degree commensurate with
21-25 the contribution.
21-26 ARTICLE 6. COMPETITIVE PROPOSALS AND CONTRACTS
21-27 SECTION 6.01. PROPOSALS FOR CONTRACTS AND SERVICES
22-1 GENERALLY. The board is not required to solicit proposals for
22-2 contracts or services but may solicit proposals to further the
22-3 interests of the district. If the board elects to solicit
22-4 proposals, the board shall make the solicitation in accordance with
22-5 Subchapter B, Chapter 271, Local Government Code, except as
22-6 provided by this article.
22-7 SECTION 6.02. REQUESTS FOR PROPOSAL; NOTICE. The district
22-8 must solicit quotations through a request for proposal. Public
22-9 notice of the request for proposal:
22-10 (1) must include at least a general description of the
22-11 service or item to be purchased or constructed; and
22-12 (2) may request the submission of unpriced proposals.
22-13 SECTION 6.03. OPENING PROPOSALS AND PRICED BIDS. The board
22-14 or a person the board appoints shall open the proposals and solicit
22-15 priced bids from the persons whose proposals qualify under the
22-16 criteria stated in the solicitation for proposals. The
22-17 solicitation for priced bids must be mailed not later than the
22-18 seventh day after the date the proposals are opened.
22-19 SECTION 6.04. CONSIDERATION OF PRICED BIDS; AWARD. (a) The
22-20 board shall consider the priced bids in open session not later than
22-21 the 30th day after the date the proposals are opened under Section
22-22 6.03 of this Act.
22-23 (b) The board shall award the contract to the responsible
22-24 offeror whose bid is the lowest evaluated offer that results from
22-25 negotiation.
22-26 SECTION 6.05. PUBLIC INSPECTION OF BIDS AND PROPOSALS. The
22-27 board shall make all proposals and bids available for public
23-1 inspection after the board awards the contract.
23-2 SECTION 6.06. NEGOTIATION WITH BIDDERS. (a) In the manner
23-3 provided by the request for proposals and rules of the district,
23-4 the board may conduct discussions with a responsible offeror who
23-5 has submitted a priced bid that the board considers reasonably
23-6 likely to be selected for an award of the contract.
23-7 (b) The board shall give offerors fair and equal treatment
23-8 regarding opportunities for discussion and revisions of proposals.
23-9 (c) To obtain best and final offers, the board may allow
23-10 revisions of proposals or bids submitted under this article before
23-11 the contract is awarded.
23-12 SECTION 6.07. CONTRACT MODIFICATION. (a) At any time after
23-13 a contract is awarded under this article and before the contract is
23-14 executed, the board or a person the board appoints to make
23-15 purchases or act on the board's behalf may negotiate a modified
23-16 contract if the modification:
23-17 (1) is in the best interest of the district; and
23-18 (2) does not:
23-19 (A) substantially change the scope of the
23-20 contract; or
23-21 (B) cause a contract amount to exceed the amount
23-22 of the next lowest bid the board received.
23-23 (b) A modified contract may not take effect without the
23-24 approval of the board.
23-25 SECTION 6.08. CHANGE OF CONTRACT AMOUNT. (a) Except as
23-26 provided by Subsection (b) of this section, the board may grant an
23-27 employee of the district general authority to approve a change
24-1 order that involves an increase or decrease in contract costs of
24-2 $50,000 or less.
24-3 (b) The board or employee may not approve a change order
24-4 that would increase the contract price to an amount greater than
24-5 125 percent of the original contract price unless the change order
24-6 is necessary to comply with a federal or state statute, rule,
24-7 regulation, or administrative order, or with a judicial decision or
24-8 order, that was enacted, adopted, rendered, or issued after the
24-9 date the contract was executed.
24-10 (c) The board or employee may not approve a change order
24-11 that would decrease the contract price to an amount less than 82
24-12 percent of the original contract price without the consent of the
24-13 contractor.
24-14 SECTION 6.09. BID BOND. (a) The board may include in the
24-15 request for proposals or bid specifications a requirement that the
24-16 bidder provide a good and sufficient bid bond in the amount of five
24-17 percent of the total contract price if:
24-18 (1) the contract price exceeds $100,000; or
24-19 (2) the contract is for the construction of a public
24-20 work.
24-21 (b) A bid bond required under this section must be executed
24-22 with a surety company authorized to do business in this state.
24-23 SECTION 6.10. PERFORMANCE BOND. (a) The board may require
24-24 an offeror of a proposal or a bidder to provide a performance bond
24-25 to the district for the full amount of the contract if the contract
24-26 price exceeds $50,000. The bond must be provided before the
24-27 contract work begins and not later than the 30th day after the
25-1 date:
25-2 (1) the contract is executed; or
25-3 (2) a purchase order is issued.
25-4 (b) This section does not apply to a contract for which
25-5 Subchapter B, Chapter 2253, Government Code, requires a performance
25-6 bond.
25-7 ARTICLE 7. MISCELLANEOUS PROVISIONS
25-8 SECTION 7.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
25-9 (a) The proper and legal notice of the intention to introduce this
25-10 Act, setting out the general substance of this Act, has been
25-11 published as provided by law, and the notice and a copy of this Act
25-12 have been furnished to all persons, agencies, officials, or
25-13 entities to which they are required to be furnished by the
25-14 constitution and other laws of this state, including the governor,
25-15 who has submitted the notice and the Act to the commission.
25-16 (b) The commission has filed its recommendations relating to
25-17 this Act with the governor, lieutenant governor, and speaker of the
25-18 house of representatives within the required time.
25-19 (c) All requirements of the constitution and laws of this
25-20 state and of the rules and procedures of the legislature with
25-21 respect to the notice, introduction, and passage of this Act are
25-22 fulfilled and accomplished.
25-23 SECTION 7.02. EMERGENCY. The importance of this legislation
25-24 and the crowded condition of the calendars in both houses create an
25-25 emergency and an imperative public necessity that the
25-26 constitutional rule requiring bills to be read on three several
25-27 days in each house be suspended, and this rule is hereby suspended,
26-1 and that this Act take effect and be in force from and after its
26-2 passage, and it is so enacted.