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H.B. No. 1358
AN ACT
relating to the jurisdiction of the Texas Commission on
Environmental Quality over certain water supply or sewer service
corporations and the creation of the La Joya Special Utility
District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. AMENDMENT TO CHAPTER 13, WATER CODE
SECTION 1.01. Subchapter A, Chapter 13, Water Code, is
amended by adding Section 13.004 to read as follows:
Sec. 13.004. JURISDICTION OF COMMISSION OVER CERTAIN WATER
SUPPLY OR SEWER SERVICE CORPORATIONS. (a) Notwithstanding any
other law, the commission has the same jurisdiction over a water
supply or sewer service corporation that the commission has under
this chapter over a water and sewer utility if the commission finds
that the water supply or sewer service corporation:
(1) is failing to conduct annual or special meetings
in compliance with Section 67.007; or
(2) is operating in a manner that does not comply with
the requirements for classifications as a nonprofit water supply or
sewer service corporation prescribed by Sections 13.002(11) and
(24).
(b) If the water supply or sewer service corporation
voluntarily converts to a special utility district operating under
Chapter 65, the commission's jurisdiction provided by this section
ends.
ARTICLE 2. AMENDMENT TO SUBTITLE C, TITLE 6,
SPECIAL DISTRICT LOCAL LAWS CODE
SECTION 2.01. Subtitle C, Title 6, Special District Local
Laws Code, is amended by adding Chapter 7201 to read as follows:
CHAPTER 7201. LA JOYA
SPECIAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7201.001. DEFINITIONS. Unless the context otherwise
requires, in this chapter:
(1) "Board" means the board of directors of the
district.
(2) "Corporation" means the La Joya Water Supply
Corporation.
(3) "District" means the La Joya Special Utility
District.
Sec. 7201.002. NATURE OF CORPORATION AND DISTRICT. (a) The
corporation is a water supply corporation in Hidalgo and Starr
Counties created under and essential to accomplish the purposes of
Section 59, Article XVI, Texas Constitution, and operating in
accordance with Chapter 67, Water Code.
(b) The district is:
(1) a special utility district in Hidalgo and Starr
Counties created under and essential to accomplish the purposes of
Section 59, Article XVI, Texas Constitution, and operating in
accordance with Chapters 49 and 65, Water Code;
(2) a retail public utility as defined by Section
13.002, Water Code; and
(3) the successor in interest to the corporation.
(c) On the effective date of the Act enacting this chapter,
the corporation shall be dissolved and succeeded without
interruption by the district.
Sec. 7201.003. APPLICABILITY OF OTHER LAW. Except as
otherwise provided by this chapter, Chapters 49 and 65, Water Code,
including Sections 49.211(a) and 65.201(a), Water Code, apply to
the district.
Sec. 7201.004. REGULATORY CONFLICTS. (a) If a
municipality asserts regulatory authority over any geographic area
in the district and a municipal regulation applicable to that
geographic area conflicts with a rule of the district, the
regulation of the municipality prevails.
(b) This section does not apply to:
(1) rules or regulations concerning potable water
quality standards; or
(2) conflicts relating to service areas or
certificates issued to the corporation or district by the Texas
Commission on Environmental Quality.
Sec. 7201.005. INITIAL DISTRICT TERRITORY. (a) The
boundaries of the corporation and initial boundaries of the
district are coextensive with the service areas covered by
Certificates of Convenience and Necessity Nos. 10559 and 20785, as
recorded on the Texas Commission on Environmental Quality maps
associated with those certificates. Those maps are incorporated in
this section by reference.
(b) A mistake made in the preparation, copying, or filing of
the maps described by Subsection (a) and on file with the Texas
Commission on Environmental Quality does not affect:
(1) the organization, existence, or validity of the
district;
(2) the right of the district to issue bonds; or
(3) the legality or operation of the district.
(c) District boundaries may be modified in accordance with
Chapters 13 and 49, Water Code, except that the boundaries must
include all territory in any area included under a certificate of
convenience and necessity issued by the Texas Commission on
Environmental Quality to the district.
[Sections 7201.006-7201.020 reserved for expansion]
SUBCHAPTER A1. TEMPORARY PROVISIONS
Sec. 7201.021. TRANSFER OF ASSETS; DISSOLUTION. (a) On the
effective date of the Act enacting this chapter, the corporation
shall transfer the assets, debts, and contractual rights and
obligations of the corporation to the district and provide notices
and make recordings of the transfer required by the Water Code and
general law.
(b) Not later than the 30th day after the date of the
transfer under Subsection (a), the board of directors of the
corporation shall commence dissolution proceedings of the
corporation.
(c) On dissolution of the corporation, Certificates of
Convenience and Necessity Nos. 10559 and 20785 are considered to be
held by the district.
(d) The board of directors of the corporation shall notify
the Texas Commission on Environmental Quality of the dissolution of
the corporation and the creation of the district to replace it to
effect the transfer of Certificates of Convenience and Necessity
Nos. 10559 and 20785 to the district.
(e) On receipt of notice under Subsection (d), the Texas
Commission on Environmental Quality shall note in its records that
Certificates of Convenience and Necessity Nos. 10559 and 20785 are
held by the district. The Texas Commission on Environmental
Quality shall, as a ministerial act, transfer the certificates to
the district without further application, notice, or hearing. A
person, party, or entity does not have any right of protest,
objection, or administrative review of the transfer prescribed by
this section.
Sec. 7201.022. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2008.
[Sections 7201.023-7201.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7201.051. TEMPORARY DIRECTORS. (a) The directors of
the corporation who hold office on the effective date of the Act
enacting this chapter shall serve as the temporary directors of the
district until successor directors are elected and qualify for
office.
(b) The temporary directors of the district are assigned
position numbers as follows:
(1) Position 1, Jose Luis Trigo;
(2) Position 2, Jose Guadalupe Reyna;
(3) Position 3, George Barreiro;
(4) Position 4, Frolian Ramirez;
(5) Position 5, Russell Wicker;
(6) Position 6, Benito Salinas;
(7) Position 7, Manuel Ricardo Garcia;
(8) Position 8, Valente Alaniz, Jr.; and
(9) Position 9, Juan Lino Garza.
(c) If there is a vacancy on the temporary board of
directors of the district, the temporary board shall appoint a
person to fill the vacancy for the remainder of the term for the
vacated position until the applicable election under Section
7201.052.
Sec. 7201.052. BOARD OF DIRECTORS. (a) The district shall
be governed by a board of not fewer than nine and not more than 11
directors, elected in accordance with Section 49.103, Water Code,
notwithstanding Subsection (f)(2) of that section.
(b) Except for a temporary director under Section 7201.051,
a candidate for a position as director:
(1) is elected at large to represent the entire
service area of the district;
(2) must reside in the service area of the district;
and
(3) must be eligible to hold office under Section
141.001, Election Code.
(c) It is the policy of the district that the directors
shall represent and reside in as broad a cross-section of the
geographic area of the district as possible.
(d) The district shall fill a vacancy on the board in
accordance with Section 49.105, Water Code.
(e) Except for the temporary directors listed under Section
7201.051, directors serve staggered terms of three years.
(f) On the uniform election date in May 2006, and on that
uniform election date every third year after that date, the
district shall hold an election to elect three directors to serve in
positions 1, 4, and 7.
(g) On the uniform election date in May 2007, and on that
uniform election date every third year after that date, the
district shall hold an election to elect three directors to serve in
positions 2, 3, and 5.
(h) On the uniform election date in May 2008, and on that
uniform election date every third year after that date, the
district shall hold an election to elect three directors to serve in
positions 6, 8, and 9.
[Sections 7201.053-7201.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7201.101. GENERAL POWERS AND DUTIES. Except as
otherwise provided by this chapter, the district has all of the
rights, powers, privileges, authority, functions, and duties
provided by the general law of this state, including Chapters 49 and
65, Water Code, applicable to districts created under Section 59,
Article XVI, Texas Constitution.
Sec. 7201.102. PROVISION OF SERVICE. The district shall at
all times operate and construct necessary improvements within the
certificated areas established by the commission to provide
uninterrupted, continuous, and adequate service to existing and
future customers for water, sewer, and contract services.
Sec. 7201.103. INTERLOCAL CONTRACTS. In accordance with
Chapter 791, Government Code, the district and the Rio Grande
Regional Water Authority may enter into a contract under which the
Rio Grande Regional Water Authority may provide administrative or
any other contract activities for or with the district. The
district may enter into interlocal cooperation contracts with any
public or private entity, request any necessary regulatory approval
required, and charge fees and rates adequate to generate revenue
sufficient to cover all expenses of the district based on
cost-of-service principles. For purposes of Chapter 791,
Government Code, performance under a contract is a governmental
function or service.
[Sections 7201.104-7201.200 reserved for expansion]
SUBCHAPTER D. OPERATING PROVISIONS
Sec. 7201.201. AUDIT OF DISTRICT. (a) Subchapter G,
Chapter 49, Water Code, applies to the district.
(b) An individual licensed by the state as a certified
public accountant with not less than five years of government
accounting experience shall perform the audit required by Section
49.191, Water Code.
Sec. 7201.202. RECORDS OF DISTRICT. The district shall
comply with all rules and regulations pertaining to records
preservation, retention, and destruction promulgated by the Texas
State Library and Archives Commission under Chapter 441, Government
Code, as made applicable to water districts and utilities.
Sec. 7201.203. MAINTAINING NECESSARY RECORDS. The district
shall maintain necessary records and follow cost-of-service
principles with respect to provision of retail public water or
sewer service or any other service authorized by Chapter 49 or 65,
Water Code, or an interlocal contract entered into in accordance
with Chapter 791, Government Code.
Sec. 7201.204. NEWSLETTER, WEBSITE, AND ANNUAL FINANCIAL
INFORMATION. The district shall maintain an Internet website with
current information concerning agendas, minutes, policies, monthly
financial information concerning revenues and expenses, and
quarterly summaries. The district shall provide information,
including summary financial information based on the preceding
year's annual audit, to district customers at an annual meeting.
Sec. 7201.205. DISCONNECTION OF SERVICE AND CUSTOMER FEES.
(a) The district may not disconnect service of a customer for late
payment before the 31st day after the date the district notifies the
customer of the overdue payment.
(b) After a disconnection caused by the customer's late
payment, the district may not charge a customer a fee for restoring
or reinstalling service that exceeds $25 or twice the amount of the
late payment owed, whichever is less.
Sec. 7201.206. RATES FOR SERVICES. The district, in
connection with water or sewer retail public utility services,
shall establish lifeline, senior citizen, or minimum consumption
level rates for services. The rate impact of such services shall be
allocated on the basis of costs of services to achieve conservation
principles, while securing necessary reserves for the payment of
operating expenses, sinking funds, principal, interest, and debt
coverage factors, and any other objective established by the
district's annual budget.
Sec. 7201.207. SERVICE CONTRACT ALLOCATION OF COST AND
IMMUNITY FROM CLAIMS. (a) In connection with intergovernmental,
interlocal, or wholesale service contracts, including cooperative
billing for any contract-based service, the district shall allocate
costs of service ratably for the service, and the district shall
secure indemnity from the contracting party to the extent allowed
by law.
(b) The district is a governmental unit, as that term is
defined by Section 101.001(3), Civil Practice and Remedies Code,
and, to the fullest extent provided by law, enjoys immunity from
suit and liability, consistent with general law, the Texas Tort
Claims Act, Chapter 101, Civil Practice and Remedies Code, and
Chapter 49, Water Code, including Section 49.066 of that code.
SECTION 2.02. (a) The legal notice of the intention to
introduce this article, setting forth the general substance of this
article, has been published as provided by law, and the notice and a
copy of this article have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor has submitted the notice and article to the
Texas Commission on Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this article with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time.
(d) The general law relating to consent by political
subdivisions to the creation of a conservation and reclamation
district and the inclusion of land in the district has been complied
with.
(e) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this article are
fulfilled and accomplished.
SECTION 2.03. (a) Section 49.105(b), Water Code, does not
apply to the La Joya Special Utility District until the 30th day
after the effective date of this Act.
(b) If a vacancy occurs on the board of directors of the La
Joya Special Utility District before the 30th day after the
effective date of this Act, the period for filing a petition under
Section 49.105(b), Water Code, does not begin to run until the 30th
day after the effective date of this Act, regardless of the date on
which the vacancy occurs.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. 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, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1358 was passed by the House on May 4,
2005, by the following vote: Yeas 142, Nays 0, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 1358 on May 23, 2005, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 1358 on May 28, 2005, by the following vote: Yeas 141,
Nays 0, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1358 was passed by the Senate, with
amendments, on May 20, 2005, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
1358 on May 28, 2005, by a viva-voce vote.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor