1-1     By:  Bernsen                                          S.B. No. 1646
 1-2           (In the Senate - Filed March 9, 2001; March 14, 2001, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 23, 2001, reported favorably by the following vote:  Yeas 5,
 1-5     Nays 0; April 23, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to conferring on the Coastal Water Authority the power to
 1-9     abandon or deconstruct a canal, ditch, or lateral; changing the
1-10     qualifications of the authority's board of directors; and
1-11     authorizing the authority to issue refunding bonds.
1-13           SECTION 1.  Section 3, Chapter 601, Acts of the 60th
1-14     Legislature, Regular Session, 1967 (Article 8280-355, Vernon's
1-15     Texas Civil Statutes), is amended to read as follows:
1-16           Sec. 3.  The Authority shall have and exercise and is hereby
1-17     vested with all of the rights, powers and privileges, authorities
1-18     and functions conferred and imposed by the general laws of this
1-19     state now in force or hereafter enacted applicable to water control
1-20     and improvement districts and municipal utility districts created
1-21     under authority of Section 59 of Article XVI, Constitution of
1-22     Texas, but to the extent that the provisions of such general laws
1-23     may be in conflict or inconsistent with the provisions of this Act,
1-24     the provisions of this Act shall prevail.  All such general laws
1-25     are hereby adopted and incorporated by reference with the same
1-26     effect as if incorporated in full in this Act.  Without in any way
1-27     limiting the generalization of the foregoing, it is expressly
1-28     provided that the Authority shall have and exercise, and is hereby
1-29     vested with, all of the rights, powers and privileges, authorities
1-30     and functions conferred by Chapters 51 and 54, Title 4, Water Code,
1-31     together with all amendments thereof and additions thereto.  The
1-32     Authority shall have the power to make, construct, or otherwise
1-33     acquire improvements either within or without the boundaries
1-34     thereof necessary to carry out the powers and authority granted by
1-35     this Act and said general laws.  Not by way of limitation, the
1-36     Authority shall be authorized and empowered to conserve, store,
1-37     transport, treat and purify, distribute, sell and deliver water,
1-38     both surface and underground, to persons, corporations, both public
1-39     and private, political subdivisions of the state and others, and
1-40     may purchase, construct or lease all property, works and
1-41     facilities, both within and without the Authority, necessary for
1-42     such purposes.  The Authority is expressly authorized to acquire
1-43     water supplies from sources both within and without the boundaries
1-44     of the Authority and to sell, transport and deliver water to
1-45     customers situated within and without the Authority and to acquire
1-46     all properties and facilities necessary for such purposes, and for
1-47     any and all of such purposes may enter into contracts with persons,
1-48     with municipal, public and private corporations, including the City
1-49     of Houston, and any political subdivision of the state for such
1-50     periods of time, not exceeding forty (40) years, and on such terms
1-51     and conditions as its Board of Directors may deem desirable, fair
1-52     and advantageous and to which the parties may agree; provided, that
1-53     such contracts may provide that they shall continue in effect until
1-54     bonds issued by the Authority to finance the cost of water system
1-55     facilities, and refunding bonds issued in lieu thereof, are paid.
1-56     In addition, the Authority shall have the power to contract with
1-57     others to transport their water and the power to act jointly with
1-58     others in the performance of all functions and purposes of the
1-59     Authority.  Provided that the Authority has no existing contractual
1-60     obligation to any person, corporation or political subdivision to
1-61     use a particular canal, lateral or ditch to transport or deliver
1-62     water, the Authority is expressly authorized to abandon, sell,
1-63     release or deconstruct that canal, ditch or lateral if any of the
1-64     following conditions apply: (i) the Authority has not used the
 2-1     canal, ditch or lateral to transport or deliver water to persons,
 2-2     corporations or political subdivisions of the state for a period of
 2-3     five (5) years; (ii) there are intervening gaps between the canal,
 2-4     ditch or lateral the Authority wishes to abandon, sell, release or
 2-5     deconstruct and the Authority's primary canal serving that canal,
 2-6     lateral or ditch; or (iii) an adjoining landowner has requested in
 2-7     writing that the Authority abandon, sell, release or deconstruct
 2-8     the canal, ditch or lateral and no other adjoining landowner has
 2-9     objected within thirty (30) days after receiving notice from the
2-10     Authority of its intent to abandon, sell, release or deconstruct
2-11     the canal, ditch or lateral.  [The Authority shall comply with the
2-12     provisions of Chapter 1, Title 128, Revised Civil Statutes of
2-13     Texas, 1925, as amended.]  Nothing herein contained shall preclude
2-14     the Authority from acquiring water rights under any law or permits
2-15     heretofore or hereafter issued, provided acquisition of the same is
2-16     approved by order or subsequent permit from the Texas Natural
2-17     Resource Conservation [Water] Commission.
2-18           SECTION 2.  Section 5(a), Chapter 601, Acts of the 60th
2-19     Legislature, Regular Session, 1967 (Article 8280-355, Vernon's
2-20     Texas Civil Statutes), is amended to read as follows:
2-21           Sec. 5(a).  The management and control of the Authority is
2-22     hereby vested in a board of seven (7) directors who shall be at
2-23     least twenty-one (21) years of age and shall be residents and
2-24     landowners of Harris County or that part of Chambers and Liberty
2-25     Counties which are within the boundaries of the Authority.  Four
2-26     (4) of such directors and their successors, being positions
2-27     numbered one (1) to four (4) inclusive, shall be appointed by the
2-28     mayor of the City of Houston with the advice and consent of the
2-29     governing body of such city.  The remaining three (3) directors and
2-30     their successors, being positions numbered five (5) to seven (7)
2-31     inclusive shall be appointed by the Governor of Texas with the
2-32     advice and consent of the Senate, one of whom shall be a resident
2-33     of Chambers County, one a resident of Liberty County and one a
2-34     resident of Harris County.  Vacancies in positions one (1) through
2-35     four (4) shall be filled by appointment by the mayor of the City of
2-36     Houston with the advice and consent of its governing body, and
2-37     vacancies in positions five (5) through seven (7) shall be filled
2-38     by appointment by the Governor of Texas with the advice and consent
2-39     of the Senate.  Any director appointed by the mayor or governor
2-40     shall be entitled to serve as a director pending his approval by
2-41     the said governing body or Senate.  Beginning in the year 2005, a
2-42     person appointed to the board of directors by the Governor of Texas
2-43     need not be a resident within the boundaries of the Authority if
2-44     the person is a resident within the area of Liberty County south of
2-45     U.S. Highway 90 and west of the Trinity River.
2-46           The directors first appointed shall meet and organize as soon
2-47     as practicable after the effective date of this Act, and shall file
2-48     their official bonds and subscribe to the Constitutional oath of
2-49     office.  The directors first appointed shall serve until April 1,
2-50     1969, and all terms of office thereafter shall be for a period of
2-51     two (2) years except for the first term of office after April 1,
2-52     1969, for positions one (1), two (2) and six (6) which shall be for
2-53     a term of one (1) year.  No member of the governing body of the
2-54     City of Houston and no employee of the City of Houston shall be
2-55     appointed as a director.
2-56           At its April, 1969, meeting the board shall reorganize and
2-57     elect from its members a president, vice-president,
2-58     secretary-treasurer and such other officers as it deems necessary.
2-59     A person who is elected to a board office shall serve for two (2)
2-60     years in that capacity or until he ceases to be a director, if this
2-61     event occurs within two (2) years.  At its April meeting of each
2-62     year the board shall elect officers for the offices to be filled.
2-63     If a vacancy occurs in a board office, the directors at the next
2-64     regular board meeting shall elect a person to serve until the next
2-65     April meeting of the board.
2-66           SECTION 3.  Chapter 601, Acts of the 60th Legislature,
2-67     Regular Session, 1967 (Article 8280-355, Vernon's Texas Civil
2-68     Statutes), is amended by adding Section 6(a) to read as follows:
2-69           Sec. 6(a).  The Authority is authorized to issue its
 3-1     refunding bonds to refund any Authority bond or obligation in
 3-2     accordance with the laws of the state including bonds or other
 3-3     obligations that have previously been defeased by the Authority by
 3-4     escrowing United States Government obligations to pay the
 3-5     principal, interest and redemption price to their maturity date and
 3-6     would otherwise be deemed to be no longer outstanding.
 3-7           SECTION 4.  This Act takes effect September 1, 2001.
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