83R14248 SGA-F
 
  By: Workman H.B. No. 890
 
  Substitute the following for H.B. No. 890:
 
  By:  Thompson of Brazoria C.S.H.B. No. 890
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the conversion of the West Travis County Public Utility
  Agency to the Hill Country Regional Water Authority and to the
  creation of the Hill Country Regional Water Authority; providing
  authority to issue revenue bonds or notes; granting the power of
  eminent domain; providing an administrative penalty; providing
  authority to impose fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a) The West Travis County Public Utility Agency
  is converted to a conservation and reclamation district to be known
  as the Hill Country Regional Water Authority located in Hays and
  Travis Counties.
         (b)  The Hill Country Regional Water Authority is not
  required to hold an election to confirm the creation of the
  authority.
         SECTION 2.  It is the intent and finding of the legislature
  that:
               (1)  the residents and customers served by the West
  Travis County Public Utility Agency before the effective date of
  this Act will be provided by the creation of the Hill Country
  Regional Water Authority under this Act with the means to obtain
  services authorized by Sections 8601.101 and 8601.102, Special
  District Local Laws Code, as added by this Act, in the most
  effective and efficient manner without the impairment of any
  existing contracts or obligations of the West Travis County Public
  Utility Agency; and
               (2)  the creation of the Hill Country Regional Water
  Authority under this Act will further important public policy
  objectives by:
                     (A)  supporting public ownership of important
  water and wastewater utility infrastructure in an environmentally
  sensitive area; and
                     (B)  protecting the interests of current
  ratepayers.
         SECTION 3.  The heading to Subtitle G, Title 6, Special
  District Local Laws Code, is amended to read as follows:
  SUBTITLE G. RIVER AUTHORITIES AND OTHER SPECIAL WATER AUTHORITIES
         SECTION 4.  Subtitle G, Title 6, Special District Local Laws
  Code, is amended by adding Chapter 8601 to read as follows:
  CHAPTER 8601. HILL COUNTRY REGIONAL WATER AUTHORITY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8601.001.  DEFINITIONS. In this chapter:
               (1)  "Authority" means the Hill Country Regional Water
  Authority.
               (2)  "Board" means the board of directors of the
  authority.
               (3)  "Director" means a member of the board.
               (4)  "Member entity" means:
                     (A)  Hays County;
                     (B)  the City of Bee Cave; or
                     (C)  West Travis County Municipal Utility
  District No. 5.
         Sec. 8601.002.  NATURE OF AUTHORITY. The authority is a
  conservation and reclamation district in Hays and Travis Counties
  created under and essential to accomplish the purposes of Section
  59, Article XVI, Texas Constitution.
         Sec. 8601.003.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
  The authority is created to serve a public use and benefit.
         (b)  All land and other property included in the territory of
  the authority will benefit from the works and projects to be
  accomplished by the authority under powers conferred by Section 59,
  Article XVI, Texas Constitution, and powers granted under this
  chapter.
         (c)  The authority is created to accomplish the control,
  storage, conservation, preservation, distribution, and use of
  water for domestic, industrial, municipal, and all other useful
  purposes, including the protection, preservation, and restoration
  of the purity and sanitary condition of water within this state, as
  provided by Section 59, Article XVI, Texas Constitution.
         Sec. 8601.004.  AUTHORITY BOUNDARIES. The authority's
  boundaries are coextensive with the boundaries of the territory
  described by Certificate of Public Convenience and Necessity No.
  13207, as those boundaries exist on the effective date of the Act
  enacting this chapter and as they may be amended in accordance with
  applicable law.
         Sec. 8601.005.  APPLICABILITY OF OTHER LAW. (a) Except as
  otherwise provided by this chapter, Chapter 49, Water Code, applies
  to the authority. For the purposes of Chapter 49, Water Code, the
  authority is a special water authority.
         (b)  The following subchapters of Chapter 49, Water Code, do
  not apply to the authority:
               (1)  Subchapter J;
               (2)  Subchapter L;
               (3)  Subchapter M; and
               (4)  Subchapter N.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 8601.051.  DIRECTORS; TERMS. (a)  The authority is
  governed by a board of five appointed directors.
         (b)  Except for a director serving on the initial board,
  directors serve staggered four-year terms that expire September 30
  of even-numbered years.
         (c)  A director may serve consecutive terms of office.
         Sec. 8601.0515.  INITIAL BOARD. (a)  The initial board
  consists of:
               Position 1--Larry Fox;
               Position 2--Ray Whisenant;
               Position 3--Michael Murphy;
               Position 4--Scott Roberts; and
               Position 5--Bill Goodwin.
         (b)  Directors Fox, Whisenant, and Murphy serve initial
  terms expiring September 30, 2016. Directors Roberts and Goodwin
  serve initial terms expiring September 30, 2014.
         (c)  A vacancy in a position on the initial board shall be
  filled in the manner provided by Section 8601.053 for making an
  appointment to the same position, except that an appointment to
  fill a vacancy in position 4 or 5 does not require that both
  positions be seated simultaneously.
         (d)  This section expires September 30, 2016.
         Sec. 8601.052.  ELIGIBILITY TO SERVE AS A DIRECTOR. (a)  To
  be eligible to serve as a director, an individual must be at least
  18 years of age.
         (b)  To be eligible to serve as a director:
               (1)  in position 1, 2, or 3, an individual must reside
  in Hays or Travis County;
               (2)  in position 4, an individual must reside in Hays
  County; or
               (3)  in position 5, an individual must reside in Travis
  County.
         Sec. 8601.053.  METHOD OF APPOINTING DIRECTORS. (a)
  Directors are appointed or recommended for appointment to the five
  numbered positions on the board by the governing body of each member
  entity as follows:
               (1)  West Travis County Municipal Utility District No.
  5 shall appoint the director who serves in position 1;
               (2)  Hays County shall appoint the director who serves
  in position 2;
               (3)  the City of Bee Cave shall appoint the director who
  serves in position 3;
               (4)  Hays County shall appoint the director who serves
  in position 4, subject to approval by the member entities as
  provided by Subsection (b); and
               (5)  the City of Bee Cave shall appoint the director who
  serves in position 5, subject to approval by the member entities as
  provided by Subsection (b).
         (b)  The governing bodies of all member entities must approve
  the appointments of directors for positions 4 and 5 before the
  persons begin to serve as directors. Upon approval, directors
  appointed to serve in those positions shall be seated
  simultaneously.
         (c)  Except to fill a vacancy, the appointment of a director
  must be made during September of the year in which that position's
  term begins.
         Sec. 8601.054.  VACANCY. (a)  A vacancy in a position on the
  board shall be filled in the same manner as an appointment to the
  board for that position, except that a vacancy in position 4 or 5
  does not require that positions 4 and 5 be seated simultaneously.
         (b)  A person appointed to fill a vacancy serves for the
  remainder of the vacated term.
         (c)  Section 49.105, Water Code, does not apply to the
  authority.
         Sec. 8601.055.  SERVICE ON BOARD BY EMPLOYEE OR OFFICER OF
  OTHER PUBLIC ENTITY. (a)  The common law doctrine of
  incompatibility does not disqualify an employee or official of a
  public entity from serving as a director.
         (b)  An employee, officer, or member of the governing body of
  a public entity may serve as a director but may not have a personal
  interest in a contract executed by the authority other than as an
  employee, officer, or member of the governing body of the public
  entity. If a director has a personal interest in a contract
  executed by the authority, the director must abstain from any
  participation in the matter. A director is not required to abstain
  from further participation in the matter if a majority of the
  members of the board of directors have similar interests in the same
  official action.
         Sec. 8601.056.  COMPENSATION; EXPENSES.  (a)  A director
  serves without compensation but, subject to board approval, may be
  reimbursed for travel or other expenses incurred on behalf of the
  authority if the director presents the board with a verified
  statement of the expenses.
         (b)  Section 49.060, Water Code, does not apply to the
  authority.
         Sec. 8601.057.  QUORUM. A majority of the membership of the
  board constitutes a quorum for any meeting, and a concurrence of a
  majority of the entire membership of the board is sufficient for
  transacting any business of the authority.
         Sec. 8601.058.  OFFICERS. (a) Every two years on the
  appointment or reappointment of directors, the board shall meet and
  elect a president, a vice president, a secretary, and any other
  officers or assistant officers the board considers necessary.
         (b)  The president is the chief executive officer of the
  authority, presides at all meetings of the board, and shall execute
  all documents on behalf of the authority unless the board
  authorizes the general manager or other representative of the
  authority to execute a document or documents on behalf of the
  authority.
         (c)  The vice president shall act as president in case of the
  absence or disability of the president.
         (d)  The secretary is responsible for seeing that all records
  and books of the authority are properly kept and may attest the
  president's signature on documents.
         (e)  The board may appoint another director, the general
  manager, or any employee as assistant or deputy secretary to assist
  the secretary, and any such person shall be entitled to certify as
  to the authenticity of any record of the authority, including all
  proceedings relating to bonds, contracts, or indebtedness of the
  authority.
         Sec. 8601.059.  REMOVAL FROM OFFICE. A director may be
  removed from office at any time, with or without cause, by the
  member entity that appointed the director.
         Sec. 8601.060.  EX OFFICIO BOARD MEMBERS. (a)  This section
  applies only to a person who is not an appointed director.
         (b)  Any of the following persons, or any of those persons'
  designees, is entitled to serve as an ex officio, nonvoting member
  of the board:
               (1)  the Hays County judge;
               (2)  the City of Bee Cave city administrator; or
               (3)  the president of the West Travis County Municipal
  Utility District No. 5 Board of Directors.
         (c)  A person designated as an ex officio member of the board
  is entitled to receive notice of and to attend the authority's board
  meetings.
         (d)  A person designated as an ex officio member of the board
  is not counted for purposes of determining a quorum under Section
  8601.057.
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8601.101.  GENERAL POWERS AND DUTIES.  (a)  The
  authority has all the rights, powers, privileges, functions, and
  duties necessary and convenient to accomplish the purposes of this
  chapter.
         (b)  Except as provided by this chapter, the authority has
  the powers and duties provided by the general law of this state
  applicable to a special water authority under Chapter 49, Water
  Code.
         (c)  The authority retains all the rights, powers,
  privileges, functions, obligations, and duties of the West Travis
  County Public Utility Agency as in effect before the effective date
  of the Act enacting this chapter.
         Sec. 8601.102.  WATER AND WASTE POWERS. (a) The authority
  may supply water for municipal uses, domestic uses, power, and
  commercial purposes, and all other beneficial uses or controls.
         (b)  The authority may not use groundwater from the Barton
  Springs Segment of the Edwards Aquifer as a source of the
  authority's water supply.  This section shall not be interpreted to
  prohibit an aquifer storage and recovery project or a recharge
  improvement project that enhances water supply in the Barton
  Springs Segment of the Edwards Aquifer.
         (c)  The authority may collect, transport, process, dispose
  of, and control all domestic, industrial, or communal wastes
  whether in fluid, solid, or composite state.
         Sec. 8601.103.  AUTHORITY POLICIES, RULES, AND BYLAWS.  The
  authority may adopt and enforce policies, rules, and bylaws
  reasonably required to implement this chapter, including rules
  governing procedures before the board and rules regarding
  implementation, enforcement, and any other matters related to the
  exercise of the rights, powers, privileges, and functions conferred
  on the authority by this chapter for the provision of water and
  wastewater service.
         Sec. 8601.104.  EXTENSION OF SERVICES. (a)  In this section,
  "commission" means the Texas Commission on Environmental Quality.
         (b)  Except as provided by this section, the authority may
  extend service to new customers located inside or outside the
  authority's boundaries.
         (c)  The authority may not extend wastewater service to new
  customers in Hays County that are located inside the
  extraterritorial jurisdiction or municipal limits of a
  municipality or to new customers located inside the
  extraterritorial jurisdiction or municipal limits of the City of
  Austin unless the authority sends the applicable municipality
  written notice of its intent to provide the service and the
  municipality does not object in writing to the extension of service
  on or before the 60th day after the date of receiving notice.
         (d)  In accordance with the provisions of Section
  8601.003(c) related to the protection, preservation, and
  restoration of the purity and sanitary condition of water in this
  state, except as provided by this subsection, the authority may not
  extend service to new customers in an area served by the authority
  that is located in the contributing and recharge zone of the Barton
  Springs Segment of the Edwards Aquifer.  Before the authority
  approves an extension of authority service under this subsection,
  the applicant requesting the service must certify to the authority
  that:
               (1)  the applicant has submitted any required
  applications, notifications, or plans to the commission; and
               (2)  a draft permit has been issued by the executive
  director of the commission or by any other governmental entity with
  the requisite jurisdiction for the purpose of managing stormwater
  and all domestic, industrial, or communal wastes in a manner
  sufficient to maintain and support the Texas Surface Water Quality
  Standards, 30 T.A.C. Chapter 307, including the anti-degradation
  policy adopted under those standards.
         (e)  The authority shall hold a public hearing and provide an
  opportunity for public comment before extending authority service
  to new customers not located in the service area identified in the
  10-year capital improvement plan that:
               (1)  has been adopted from time to time in compliance
  with Chapter 395, Local Government Code; and
               (2)  is in effect when an application for service is
  received.
         Sec. 8601.105.  ACQUISITION, CONSTRUCTION, MAINTENANCE, AND
  OPERATION OF SYSTEMS.  (a)  The authority may purchase, construct,
  acquire, own, operate, maintain, repair, improve, or extend inside
  or outside its boundaries any works, improvements, facilities,
  plants, equipment, or appliances necessary to accomplish authority
  purposes under this chapter, including all works, improvements,
  facilities, plants, equipment, and appliances incident, helpful,
  or necessary to provide services inside or outside the authority's
  boundaries.
         (b)  Any new construction or extension of authority
  facilities in the jurisdiction of a municipality must comply with
  the municipality's:
               (1)  ordinances governing subdivision platting and
  site development; and
               (2)  design criteria for fire flow.
         Sec. 8601.106.  WATER CONSERVATION OR DROUGHT CONTINGENCY
  PLANS.  The authority by rule may develop, prepare, revise, adopt,
  implement, enforce, and manage comprehensive water conservation or
  drought contingency plans for the authority or any portion of the
  authority.
         Sec. 8601.107.  CONTRACTS AND INSTRUMENTS. The authority
  may, as necessary or convenient to the exercise of the rights,
  powers, privileges, and functions conferred on the authority by
  this chapter:
               (1)  enter into a contract, including an interlocal
  contract under Chapter 791, Government Code; or
               (2)  execute an instrument.
         Sec. 8601.108.  MEMBER ENTITY CONVEYANCES AND ACQUISITIONS.
  (a)  In this section, "utility system" has the meaning assigned by
  Section 1502.001, Government Code.
         (b)  A member entity may convey a utility system facility or
  asset or its interest in a utility system facility or asset to the
  authority without holding an election to approve the conveyance.
         (c)  A member entity is exempt from the provisions of Chapter
  1502, Government Code, regarding the conveyance, sale, or
  acquisition of a utility system, or any related works,
  improvements, facilities, plants, equipment, or appliances.
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 8601.151.  FEES, RATES, AND OTHER CHARGES.  The board
  shall establish, charge, and collect tolls, fees, user fees, rates,
  and other charges for the sale or use of water, water connections,
  wastewater service, wastewater connections, or other services
  sold, furnished, or supplied by the authority inside and outside
  the authority's boundaries.  The tolls, fees, user fees, rates, and
  other charges must be reasonable and nondiscriminatory and
  sufficient to produce revenue adequate to:
               (1)  pay all expenses necessary to the operation and
  maintenance of the properties and facilities of the authority;
               (2)  pay the interest on and principal of all bonds,
  notes, or other obligations assumed, issued, or incurred by the
  authority;
               (3)  pay the principal of and interest on and any other
  amounts owed under any legal debt created or assumed by the
  authority;
               (4)  pay all sinking fund and reserve fund payments
  agreed to be made with respect to bonds, notes, or other obligations
  and payable out of those revenues, as the payments become due and
  payable; and
               (5)  fulfill the terms of any agreements made with the
  bondholders, other counterparties or creditors, or with any person
  on their behalf.
         Sec. 8601.152.  IMPACT FEES. The authority may assess and
  collect impact fees under Chapter 395, Local Government Code,
  inside and outside the authority's boundaries.
         Sec. 8601.153.  LATE OR PARTIAL PAYMENTS: INTEREST AND
  PENALTIES.  (a)  The board may require the payment of interest on
  any late or unpaid tolls, fees, user fees, impact fees, rates, or
  other charges due the authority.  The interest rate may not exceed
  the interest rate permitted by Section 2251.025, Government Code.
         (b)  The board may impose penalties for the failure to make a
  complete or timely payment to the authority.
         Sec. 8601.154.  ADMINISTRATIVE PENALTY.  A person who
  violates a rule or order of the authority is subject to an
  administrative penalty of not more than $5,000, as determined by
  the board, for each violation or each day of a continuing violation.
  The person shall pay the penalty to the authority.
         Sec. 8601.155.  DISBURSEMENTS.  (a)  The authority may
  disburse authority money by check, draft, order, federal reserve
  wire system, or other instrument or authorization.
         (b)  Except as provided by Subsection (c), disbursements of
  the authority must be signed by at least a majority of the
  directors.
         (c)  The board by resolution may allow the general manager,
  treasurer, bookkeeper, or other employee or representative of the
  authority to sign disbursements.
         Sec. 8601.156.  NO AD VALOREM TAXATION OR SPECIAL
  ASSESSMENTS.  The authority may not impose an ad valorem tax or a
  special assessment.
         Sec. 8601.157.  FISCAL YEAR.  The authority's fiscal year
  begins on October 1 and ends on September 30.
         Sec. 8601.158.  FRANCHISE FEES.  The authority may not
  assess or collect a franchise fee for the use of its real property.  
  The authority may pay a franchise fee to another governmental
  entity.
  SUBCHAPTER E. BONDS AND NOTES
         Sec. 8601.201.  REVENUE BONDS AND NOTES.  (a)  To accomplish
  the purposes of the authority, the authority may issue bonds or
  notes payable solely from and secured by all or part of any funds or
  any revenue from any source or sources, including:
               (1)  tolls, fees, user fees, impact fees, rates, and
  other charges the authority imposes or collects;
               (2)  the sale of water, water services, water rights or
  capacity, water transmission rights or services, water pumping,
  sewer services, or any other service or product of the authority
  provided inside or outside the boundaries of the authority;
               (3)  grants or gifts;
               (4)  the ownership or operation of all or a designated
  part of the authority's works, improvements, facilities, plants, or
  equipment; and
               (5)  contracts between the authority and a member
  entity, customer, or any other person.
         (b)  Bonds or notes issued by the authority may be first or
  subordinate lien obligations at the board's discretion.
         (c)  In connection with any bonds or notes of the authority,
  the authority may exercise any power of an issuer under Chapter
  1371, Government Code.
         (d)  The authority may conduct a public, private, or
  negotiated sale of the bonds or notes.
         (e)  The authority may enter into one or more indentures of
  trust to further secure its bonds or notes.
         (f)  The authority may issue bonds or notes in more than one
  series as necessary to carry out the purposes of this chapter. In
  issuing bonds or notes secured by revenue of the authority, the
  authority may reserve the right to issue additional bonds or notes
  secured by the authority's revenue that are on parity with or are
  senior or subordinate to the bonds or notes issued earlier.
         (g)  A resolution of the board or a trust indenture securing
  the bonds or notes may specify additional provisions that
  constitute a contract between the authority and its bondholders or
  noteholders.
         (h)  Bonds and notes may be additionally secured by deed of
  trust or mortgage on any or all of the authority's facilities.
         (i)  Bonds and notes issued by the authority are not subject
  to approval by the Texas Commission on Environmental Quality, and
  commission rules regarding bonds or notes do not apply to bonds or
  notes issued by the authority.
         Sec. 8601.202.  ELECTION NOT REQUIRED. The authority is not
  required to hold an election to approve the issuance of revenue
  bonds or notes or other obligations under this subchapter.
         Sec. 8601.203.  USE OF REVENUE AND GROWTH PROJECTIONS. For
  the purposes of attorney general review and approval and in lieu of
  any other manner of demonstrating the ability to pay debt service
  and satisfy any other pecuniary obligations relating to bonds,
  notes, or other obligations, the authority may demonstrate its
  ability to satisfy the debt service and those obligations using
  accumulated funds of the authority and revenue and growth
  projections prepared by a professional utility rate consultant at
  the direction of the authority. If the resolution authorizing the
  issuance of the bonds, notes, or other obligations provides that
  the authority intends to increase rates to the extent necessary to
  pay debt service and satisfy any other pecuniary obligations
  arising under the bonds, notes, or other obligations, the revenue
  projections prepared by a professional utility rate consultant may
  include forecast rate increases and accumulated and available fund
  balances as determined by the authority.
         SECTION 5.  On the effective date of this Act:
               (1)  the Hill Country Regional Water Authority shall
  assume all assets, liabilities, and obligations of the West Travis
  County Public Utility Agency;
               (2)  all contracts and written agreements of the West
  Travis County Public Utility Agency are assigned to and assumed by
  the Hill Country Regional Water Authority; and
               (3)  the Utilities Installment Purchase Agreement
  entered January 17, 2012, between the Lower Colorado River
  Authority and the West Travis County Public Utility Agency, as
  amended, is assigned to and assumed by the Hill Country Regional
  Water Authority created by Section 4 of this Act and is valid and
  enforceable by its terms. Governmental immunity from liability or
  suit is waived for the parties to enforce that Utilities
  Installment Purchase Agreement to the extent provided by Subchapter
  I, Chapter 271, Local Government Code.
         SECTION 6.  (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, one of the required recipients, 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, the
  lieutenant governor, and the 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 7.  (a) Any eminent domain powers granted by general
  law that apply to the Hill Country Regional Water Authority, as
  created by this Act, take effect only if this Act receives a
  two-thirds vote of all the members elected to each house.
         (b)  If this Act does not receive a two-thirds vote of all the
  members elected to each house, Subchapter C, Chapter 8601, Special
  District Local Laws Code, as added by this Act, is amended by adding
  Section 8601.109 to read as follows:
         Sec. 8601.109.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (c)  This section is not intended to be an expression of a
  legislative interpretation of the requirements of Section 17(c),
  Article I, Texas Constitution.
         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, 2013.