By:  Ratliff                                                      S.B. No. 1955

A BILL TO BE ENTITLED
AN ACT
relating to the Red River Redevelopment Authority; providing the power of eminent domain and the power to issue bonds. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 396.062, Local Government Code, is amended to conform to Chapter 1312, Acts of the 76th Legislature, Regular Session, 1999, and further amended to read as follows: Sec. 396.062. ESTABLISHMENT. (a) The creation, establishment, and organization of the authority are validated, ratified, approved, and confirmed. The [is established as a political subdivision with] boundaries of the authority are the same as the boundaries of the real property described in Section 396.0621. The boundaries of the authority may be expanded from time to time as additional real property, if any, is conveyed to the authority by the United States of America [396.064(1), if each eligible municipality and the county: [(1) adopts resolutions authorizing the authority's establishment; and [(2) appoints members to the board as provided by Section 396.063]. (b) The authority is a governmental agency, a body politic and corporate, and a political subdivision of this state. (c) For all purposes, including the application of Chapter 101, Civil Practice and Remedies Code, the authority is a unit of government and the operations of the authority are considered to be essential governmental functions and not proprietary functions. (d) The authority is subject to Chapters 551 and 552, Government Code. (e) The authority may issue revenue bonds. 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. (f) The authority is subject to the regulatory authority of the state or any agencies of the state to the same extent as a municipal corporation. SECTION 2. Subchapter C, Chapter 396, Local Government Code, is amended by adding Sections 396.0621 and 396.0622 to read as follows: Sec. 396.0621. AUTHORITY TERRITORY. The authority is composed of that territory described by Section 8A, Chapter 831, Acts of the 75th Legislature, Regular Session, 1997, as added by Section 5, Chapter 1312, Acts of the 76th Legislature, Regular Session, 1999, and as that territory may have been modified under this subchapter or other law. Sec. 396.0622. EXPANSION OF AUTHORITY TERRITORY. The authority boundaries may be expanded from time to time as additional real property, if any, is conveyed to the authority by the United States or as additional counties or municipalities approve annexations. SECTION 3. Subchapter C, Chapter 396, Local Government Code, is amended by adding Section 396.0641 to read as follows: Sec. 396.0641. ADDITIONAL PURPOSE. The authority is created to exercise the powers granted to a conservation and reclamation district under Section 59, Article XVI, Texas Constitution. SECTION 4. Subchapter C, Chapter 396, Local Government Code, is amended by adding Sections 396.069 through 396.077 to read as follows: Sec. 396.069. GENERAL POWERS. The authority may acquire, purchase, construct, own, operate, maintain, repair, improve, or extend, lease, or sell on terms and conditions, including rentals or sale prices, on which the parties may agree, all works, improvements, facilities, plants, buildings, structures, equipment, and appliances and all property or any interest in related property that is incident to or necessary to carry out or perform an authority power. Sec. 396.070. WATER, SEWER, AND NATURAL GAS PROJECTS; EMINENT DOMAIN. (a) 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) The authority may exercise the power of eminent domain for a project under this section. Sec. 396.071. REGIONAL WASTE DISPOSAL. The authority may exercise the powers granted a district under Chapter 30, Water Code. Sec. 396.072. WASTE WATER AND SEWAGE. The authority may 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. The authority may provide for the construction, storage, transmission, treatment, supply, and distribution of water for any useful purpose, including for a municipal, domestic, industrial, or commercial purpose. Sec. 396.074. CONTRACTS. The authority and all persons may contract with each other 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) As used in this section, "revenue" does not include revenue from ad valorem taxes imposed by a governmental entity or the proceeds from the sale or refunding of bonds of a governmental entity that are to be wholly or partially paid from ad valorem taxes imposed by the governmental entity unless the use or pledge of the tax revenue or bond proceeds are approved by the voters of the governmental entity at an election called for the purpose of imposing taxes or issuing or refunding bonds, or for the purpose of using or pledging their revenues or proceeds under contracts with the authority under this chapter. (b) 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) 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, including: (1) water charges; (2) sewage charges; (3) solid waste disposal system fees and charges, including garbage collection or handling fees; and (4) other fees or charges. (d) 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. (a) The authority may issue bonds for the acquisition, purchase, construction, maintenance, repair, improvement, and extension of works, improvements, facilities, plants, buildings, structures, appliances, and property to exercise a power granted under this subchapter. (b) The authority may issue revenue bonds to pay for the costs of feasibility studies for proposed authority projects, including projects regarding engineering, planning and design, and environmental studies. The authority may include in a revenue bond issue the funds to operate and maintain facilities acquired or constructed through the revenue bond issue for a period not to exceed two years after completion of the facility. (c) 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. (d) 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) This subchapter provides sufficient authority for the issuance of bonds, the execution of contracts, and the performance of all other acts and procedures authorized in this subchapter for the authority and all other persons of this state, including other governmental entities of this state and including actions regarding other governmental entities and the United States, without reference to any other law or any restrictions or limitations contained in other law, except as provided in this subchapter. (b) To the extent of a conflict or inconsistency between this subchapter and another law, including a home-rule city charter, this subchapter prevails. (c) 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. (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. (a) The legislature validates and confirms all governmental acts and proceedings of the Red River Redevelopment Authority that occurred before the effective date of this Act, including: (1) the creation of the authority; (2) the contracts and other agreements with the United States to acquire the Red River Army Depot; and (3) the furnishing of utility services. (b) This section does not apply to any matter that on the effective date of this Act: (1) is involved in litigation, if the litigation ultimately results in the matter being held invalid by a final judgment of a court with jurisdiction; or (2) has been held invalid by a court with jurisdiction. SECTION 7. The legislature finds that: (1) proof of publication of the constitutional notice required in the enactment of this Act under Subsection (d), Section 59, Article XVI, Texas Constitution, has been made in the manner provided by that section; (2) a copy of the constitutional notice and the bill as originally introduced have been delivered to the governor as required by the constitution; and (3) the notice and delivery are proper and sufficient to satisfy those constitutional requirements. SECTION 8. To the extent of any conflict, this Act prevails over another Act of the 78th Legislature, Regular Session, 2003, relating to nonsubstantive additions to and corrections in enacted codes. SECTION 9. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.