81R7182 PMO-F
 
  By: Shapiro S.B. No. 715
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the North Texas Municipal Water District.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1a, Chapter 62, Acts of the 52nd
  Legislature, Regular Session, 1951, is amended by adding
  Subdivision (13) to read as follows:
               (13)  "Bonds" includes negotiable or nonnegotiable
  bonds, notes, certificates, contractual obligations, or other
  obligations of the district.
         SECTION 2.  Section 3(b), Chapter 62, Acts of the 52nd
  Legislature, Regular Session, 1951, is amended to read as follows:
         (b)  Each director shall receive a fee of $150 for each day
  the director spends performing the duties of a director, including
  participating in board and committee meetings, other activities
  involving substantive deliberation of District business, and
  pertinent educational programs [$50 for attending each meeting of
  the board and $20 per day devoted to the business of the District
  other than attending board meetings], but not more than $7,200
  [$1,200] shall be paid to any director in one calendar year
  [therefor]. Each director shall be entitled to reimbursement for
  actual expenses incurred in attending to District business provided
  the service and expense are expressly approved by the Board.
         SECTION 3.  Section 4, Chapter 62, Acts of the 52nd
  Legislature, Regular Session, 1951, is amended to read as follows:
         Sec. 4.  The board of directors shall elect from its number a
  president and a vice-president of the District, and such other
  officers as in the judgment of the board are necessary. The
  president shall be the [chief executive officer of the District and
  the] presiding officer of the board, and shall have the same right
  to vote as any other director. The vice-president shall perform all
  duties and exercise all powers conferred by this Act upon the
  president when the president is absent or fails or declines to act.
  The board shall also appoint a secretary and a treasurer who may or
  may not be members of the board, and it may combine those offices.
  The treasurer shall give bond in such amount as may be required by
  the board of directors, but in no event less than $100,000.00. The
  condition of such bond shall be that he will faithfully account for
  all money which shall come into his custody as treasurer of the
  District. The board shall appoint an executive director who shall
  employ or contract with all necessary engineers, attorneys and
  other employees. The board shall adopt a seal for the District.
         SECTION 4.  Section 27, Chapter 62, Acts of the 52nd
  Legislature, Regular Session, 1951, is amended by amending
  Subsections (a), (d), (e), (f), (h), (j), and (k) and adding
  Subsection (h-1) to read as follows:
         (a)  The district has the functions, powers, authority,
  rights, and duties necessary to accomplish the purposes for which
  the district was created and the purposes authorized by Section 59,
  Article XVI, Texas Constitution, this Act, or any other law. In
  addition to all other powers, the district is authorized to
  purchase, construct, acquire, own, operate, maintain, repair,
  improve, or extend inside and outside its boundaries, at any
  location whatsoever, in the sole discretion of the district, any
  and all property, works, improvements, facilities, plants,
  equipment, and appliances incident, helpful, or necessary to:
               (1)  provide[, pursuant to the provisions of Chapters 5
  and 6, Water Code, as amended,] for the control, storage,
  preservation, transmission, treatment, and distribution and use of
  storm water and floodwater, the water of rivers and streams, and
  underground water, for irrigation, power, hydroelectric, and all
  other useful purposes, and to supply water for municipal, domestic,
  power, hydroelectric, industrial, oil flooding, mining, and
  commercial uses and purposes and all other beneficial uses and
  purposes;
               (2)  collect, transport, process, treat, dispose of,
  and control all municipal, domestic, industrial, or communal waste
  whether in fluid, solid, or composite state, including specifically
  the control, abatement, or reduction of all types of pollution; and
  it is hereby found and determined by the legislature that all of the
  aforesaid purposes are for the conservation and development of the
  natural resources of the state within the meaning of Article XVI,
  Section 59 of the Texas Constitution.
         (d)  The district is a "district" under the Regional Waste
  Disposal Act, as amended (Chapter 30 [25], Water Code), and all
  provisions of said Act are applicable to this district except to the
  extent of any conflict with this Act, in which case the provisions
  of this Act shall prevail.
         (e)  All cities, public agencies, and other political
  subdivisions are authorized to contract with this district in any
  manner authorized by the Regional Waste Disposal Act, as amended
  (Chapter 30 [25], Water Code), provided that any city is authorized
  to contract with this district in the manner authorized by Section
  30.030(c), Water Code [25.030(c) of the Regional Waste Disposal
  Act].
         (f)  The [It is further specifically provided that the]
  district and all cities, public agencies, and other political
  subdivisions shall have all of such rights, powers, and authority
  with respect to the control, storage, preservation, transmission,
  treatment, and disposition of storm water and floodwater, and the
  water of rivers and streams, and underground water as are granted,
  permitted, and authorized by the Regional Waste Disposal Act, as
  amended (Chapter 30 [25], Water Code), with respect to waste, waste
  disposal systems, and treatment facilities. Subsection (e) of this
  section shall be applicable to contracts made pursuant to this
  subsection.
         (h)  The district may issue bonds to borrow money for any
  corporate purpose, including the purposes [For the purpose of
  providing funds to acquire, purchase, construct, improve, enlarge,
  and equip any property, buildings, structures, or other facilities
  for any purpose or power] authorized by this section.  The [, the]
  board of directors of the district may issue [revenue] bonds from
  time to time and in one or more issues or series, to be payable from
  and secured by liens on and pledges of all or any part of any of the
  revenues, income, or receipts derived by the district from its
  ownership, operation, lease, or sale of any [such] property,
  buildings, structures, or facilities, including the proceeds or
  revenues from contracts with any person, firm, corporation, city,
  public agency, or other political subdivision. The [Such] bonds
  may be issued in certificated form or uncertificated book-entry
  form to mature serially or otherwise within not to exceed 50 years
  from their date, and provision may be made for the subsequent
  issuance of additional parity bonds, or subordinate lien bonds,
  under any terms or conditions that may be set forth in the
  resolution authorizing the issuance of the bonds. The [Such]
  bonds, and any interest coupons appertaining thereto, to the extent
  issued in negotiable form, are and shall constitute negotiable
  instruments within the meaning and for all purposes of the Texas
  Business & Commerce [Uniform Commercial] Code, provided that the
  bonds may be issued registrable as to principal alone or as to both
  principal and interest, and shall be executed, and may be made
  redeemable prior to maturity, and may be issued in such form,
  denominations, and manner, and under such terms, conditions, and
  details, and may be sold in such manner, including through a public
  or private sale, at such price, and under such terms, and said bonds
  shall bear interest at such rates, including fixed, variable,
  floating, adjustable, or another method of computation, all as
  shall be determined and provided in the resolution authorizing the
  issuance of the bonds. In the bond resolution, the district may
  authorize one or more designated officers or employees of the
  district to act on behalf of the district, with the same force and
  effect as if the action had been taken by the district, in selling
  and delivering the bonds and setting the dates, prices, interest
  rates, interest payment periods, and other procedures relating to
  the bonds, as specified in the bond resolution. If so provided in
  the bond resolution, the proceeds from the sale of the bonds may be
  used for paying interest on the bonds during the period of the
  acquisition or construction of any facilities to be provided
  through the issuance of the bonds, for paying expenses of operation
  and maintenance of facilities, for creating a reserve fund for the
  payment of the principal of and interest on the bonds, and for
  creating any other funds, and such proceeds may be placed on time
  deposit or invested, until needed, all to the extent and in the
  manner provided in the bond resolution. The district may pledge all
  or any part of its revenues, income, or receipts from fees, rentals,
  rates, charges, and contract proceeds or payments to the payment of
  the bonds, including the payment of principal, interest, and any
  other amounts required or permitted in connection with the bonds.
  The pledged fees, rentals, rates, charges, proceeds, or payments
  shall be fixed and collected in amounts that will be at least
  sufficient, together with any other pledged resources, to provide
  for all payments of principal, interest, and any other amounts
  required in connection with the bonds, and, to the extent required
  by the resolution authorizing the issuance of the bonds, to provide
  for the payment of expenses in connection with the bonds, and
  operation, maintenance, and other expenses in connection with the
  aforesaid facilities. The [Said] bonds may be additionally secured
  by mortgages or deeds of trust on any real property owned or to be
  acquired by the district, and by chattel mortgages or liens on any
  personal property appurtenant to such real property; and the board
  of directors of the district may authorize the execution of trust
  indentures, mortgages, deeds of trust, or other forms of
  encumbrances to evidence same. Also, the district may pledge to the
  payment of the bonds all or any part of any grant, donation,
  revenues, or income received or to be received from the United
  States government or any other public or private source, whether
  pursuant to an agreement or otherwise.
         (h-1)  If funds are not available to meet any need of the
  district and the board of directors of the district declares an
  emergency, the board may issue bond anticipation notes or revenue
  anticipation notes, or both bond anticipation notes and revenue
  anticipation notes, to borrow the money needed by the district.
  Bond anticipation notes may be issued for any purpose for which
  bonds of the district may be issued. The district may enter into an
  agreement with a purchaser of bond anticipation notes to use the
  proceeds from the sale of any bond to pay principal, interest, or
  redemption price on the bond anticipation notes. Revenue
  anticipation notes may be issued for any purpose for which the
  district is authorized to expend revenue of the district. The
  district may enter into an agreement with a purchaser of revenue
  anticipation notes to adopt, enforce, and collect charges, fees,
  rentals, and other amounts for the district's facilities and
  services that are sufficient to pay the principal of, any
  redemption premium on, and interest on the revenue anticipation
  notes.
         (j)  Chapter 1202, Government Code, applies to the issuance
  of bonds by the district.  [All bonds issued pursuant to this
  section and the appropriate proceedings authorizing their issuance
  shall be submitted to the Attorney General of the State of Texas for
  examination. When the bonds are to be issued to finance in whole or
  in part water-using facilities, except treatment or distribution
  facilities, before giving his approval the attorney general shall
  be furnished a resolution from the Texas Water Rights Commission
  certifying that the district is possessed of the necessary water
  right authorizing it to impound and appropriate the water to be
  utilized by the project. Also, if the bonds recite that they are
  secured by a pledge of revenues of any contract, a copy of such
  contract and the proceedings relating thereto shall be submitted to
  the attorney general. If he finds that such bonds have been
  authorized and any such contract has been made in accordance with
  law, he shall approve the bonds and any such contract, and thereupon
  the bonds shall be registered by the Comptroller of Public Accounts
  of the State of Texas; and after such approval and registration,
  such bonds and any such contract shall be incontestable in any court
  or other forum for any reason, and shall be valid and binding
  obligations in accordance with their terms for all purposes.]
         (k)  All bonds issued pursuant to this section are legal and
  authorized investments in the same manner as provided by Section
  49.186(a), Water Code. The [for all banks, trust companies,
  building and loan associations, savings and loan associations,
  insurance companies of all kinds and types, and trustees, and for
  all interest and sinking funds and other public funds of the State
  of Texas and all agencies, subdivisions, and instrumentalities
  thereof, including all counties, cities, towns, villages, school
  districts, and all other kinds and types of districts, public
  agencies, and bodies politic. Said] bonds also shall be eligible
  and lawful security for [all] deposits of public funds in [of] the
  same manner as provided by Section 49.186(b), Water Code [State of
  Texas and all agencies, subdivisions, and instrumentalities
  thereof, including all counties, cities, towns, villages, school
  districts, and all other kinds and types of districts, public
  agencies, and bodies politic, to the extent of the market value of
  said bonds, when accompanied by any unmatured interest coupons
  appurtenant thereto].
         SECTION 5.  Chapter 62, Acts of the 52nd Legislature,
  Regular Session, 1951, is amended by adding Section 28 to read as
  follows:  
         Sec. 28.  If a quorum of the board of directors of the
  district cannot be assembled due to multiple deaths or injuries
  resulting from a catastrophe or disaster, any directors who are
  available, or the highest ranking staff member of the district if no
  director is available, shall within 24 hours after the catastrophe
  or disaster has ended, or as soon as practicable under the
  circumstances, take any action necessary to ensure the basic
  health, safety, and welfare of the customers of the district and
  call for the appointment of new directors by the member cities of
  the district to fill the vacancies on the board resulting from the
  catastrophe or disaster. Until a quorum of the board of directors
  can be assembled, any directors who are available, or the highest
  ranking staff member of the district if no director is available,
  may only take actions as necessary to protect the basic health,
  safety, and welfare of the district's customers.  The board of
  directors may subsequently ratify any action taken in accordance
  with this section.
         SECTION 6.  Section 27(c), Chapter 62, Acts of the 52nd
  Legislature, Regular Session, 1951, is repealed.
         SECTION 7.  (a) The legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act 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 Act to the
  Texas Commission on Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this Act with the governor,
  lieutenant governor, and speaker of the house of representatives
  within the required time.
         (d)  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 Act are fulfilled
  and accomplished.
         SECTION 8.  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, 2009.