S.B. 1955 78(R) BILL ANALYSIS
S.B. 1955
By: Ratliff
Urban Affairs
Committee Report (Unamended)
BACKGROUND AND PURPOSE
The Red River Redevelopment Authority was created to redevelop 765 acres
of Red River Army Depot which was realigned in the 1995 BRAC decision.
The redevelopment plan for the Red River Commerce Park includes the
privatization of the utilities at the Army depot. Part of the
implementation is a capitol improvement plan for enhancing and upgrading
the current water and wastewater systems at Red River Commerce Park.
S.B. 1955 will allow the Red River Redevelopment Authority to issue
revenue bonds to make the necessary improvements. These new improvements
will enhance the Authority's ability to attract new industry to recover
the local jobs lost due to the base realignment.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution.
SECTION BY SECTION ANALYSIS
S.B. 1955 amends or creates the following sections of Chapter 396, Local
Government Code, relating to the powers of the Red River Development
Authority.
SECTION 1. Amends Section 396.062, Local Government Code, to conform to
Chapter 1312, Acts of the 76th Legislature, Regular Session, 1999, and as
follows: Validates, approves, and confirms the creation establishment and
organization of the Red River Redevelopment Authority ("the authority").
Provides that the boundaries of the authority may be expanded as any
additional real property is conveyed to the authority by the United States
of America. Provides that the authority is a governmental agency, body
politic and corporate, and a political subdivision of this state. Provides
that for all purposes, the authority is a unit of government and the
operations of the authority are considered to be essential government
functions. Subjects the authority to Chapters 551 and 552, Government
Code. Authorizes the authority to issue revenue bonds. Provides that the
authority is subject to the regulatory authority of the state or any state
agencies as a municipal corporation.
SECTION 2. Amends Subchapter C, Chapter 396, Local Government Code, by
adding Sections 396.0621 and 396.0622 to describe the territory of the
authority and provide for the expansion of authority territory.
SECTION 3. Amends Subchapter C, Chapter 396, Local Government Code, by
adding Section 396.0641 to add an additional purpose of the authority to
exercise the powers granted to a conservation and reclamation district
under Section 59, Article XVI, Texas Constitution.
SECTION 4. Amends Subchapter C, Chapter 396, Local Government Code, by
adding Sections 396.069 through 396.077 as follows:
Sec. 396.069. GENERAL POWERS. Sets forth the general powers of the
district.
Sec. 396.070. WATER, SEWER, AND NATURAL GAS PROJECTS; EMINENT DOMAIN.
(a) Provides that the authority may undertake a project under Section
396.064(a)(3) to develop water, sewer, and natural gas projects to benefit
the authority.
(b) Provides that the authority may exercise the power of eminent domain
for a project under this section.
Sec. 396.071. REGIONAL WASTE DISPOSAL. Provides that the authority may
exercise the powers granted a district under Chapter 30, Water Code.
Sec. 396.072. WASTE WATER AND SEWAGE. Grants the authority the power to
provide for the collection, transmission, treatment, disposal, and control
of municipal, domestic, industrial, and commercial waste water and sewage.
Sec. 396.073. OTHER WATER POWERS. Grants the authority the power to
provide for the construction, storage, transmission, treatment, supply,
and distribution of water for any useful purpose, including for a
municipal, domestic, industrial, or a commercial purpose.
Sec. 396.074. CONTRACTS. Provides that the authority may contract with
any person in any manner and on terms as to which the parties may agree
regarding a power, facility, or service that the authority may exercise,
provide, or finance.
Sec. 396.075. POWERS OF OTHER GOVERNMENTAL ENTITIES. (a) Negatively
defines "revenue."
(b) Provides thay any governmental entity of this state may use and
pledge any available revenue for and in the payment of an amount due under
a contract entered into with the authority as an additional source of
payment of the contracts or as the sole source of payment of the
contracts, and may covenant with respect to available revenue to assure
the availability of the revenue when required.
(c) Provides that a governmental entity may charge a fee to any person
for using a service or facility provided by a utility operated by the
governmental entity and provided under a contract with the authority.
(d) Provides that the governmental entity may use and pledge money
collected under Subsection (c) to make a payment to the authority required
under a contract with the authority and may covenant to do so in an amount
sufficient to make a payment to the authority when due. A payment, if the
parties agree in the contract, is an expense of operation of the
facilities or utility operated by the governmental entity.
Sec. 396.076. BONDS. Provides for the issuance of bonds, including
revenue bonds for specified purposes. If any bonds issued by the
authority recite that they are secured by a pledge of payments under a
contract, a copy of the contract and the proceedings relating to the
contract may be submitted to the attorney general along with the bonds,
and if the attorney general finds that the bonds have been authorized and
the contract was entered into in accordance with law, then the attorney
general shall approve the bonds and the contract. Provides that if bonds
are issued under this section for a water or sewer project, the authority
shall issue the bonds in accordance with Sections 54.502 and 54.503, Water
Code.
Sec. 396.077. CONSTRUCTION WITH OTHER LAW. (a) Provides that this
subchapter provides sufficient authority to issue bonds, execute
contracts, and perform all other acts and procedures authorized in the
subchapter without reference to any other law or any other law's
restrictions or limitations, except as provided in this subchapter.
(b) Provides that to the extent of a conflict or inconsistency between
this subchapter and another law, including a home-rule city charter, this
subchapter prevails.
(c) Provides that this subchapter does not limit the power of the
authority and all persons, including other governmental entities, to use
any other law not in conflict with this subchapter to the extent
convenient or necessary to carry out a power, express or implied, granted
by this subchapter.
SECTION 5. REPEALER. (a) Subsection (b), Section 396.065, Local
Government Code, is repealed.
(b) Sections 1 through 4 and 6, Chapter 1312, Acts of the 76th
Legislature, Regular Session, 1999, are repealed.
SECTION 6. VALIDATION CLAUSE.
SECTION 7. LEGISLATIVE FINDINGS RELATING TO ENACTMENT.
SECTION 8. SUPREMACY CLAUSE. Provides that this act prevails over any
other act of the 78th Legislature, Regular Session, 2003 to the extent of
any conflict.
SECTION 9. EFFECTIVE DATE.
EFFECTIVE DATE: Upon passage, or, if the Act does not receive the
necessary vote, the Act takes effect September 1, 2003.