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A BILL TO BE ENTITLED
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AN ACT
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relating to the conversion of the West Travis County Public Utility |
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Agency to the Hill Country Regional Water Authority and to the |
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creation of the Hill Country Regional Water Authority; providing |
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authority to issue revenue bonds or notes; granting the power of |
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eminent domain; providing an administrative penalty; providing |
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authority to impose fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) The West Travis County Public Utility Agency |
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is converted to a conservation and reclamation district to be known |
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as the Hill Country Regional Water Authority located in Hays and |
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Travis Counties. |
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(b) The Hill Country Regional Water Authority is not |
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required to hold an election to confirm the creation of the |
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authority. |
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SECTION 2. It is the intent and finding of the legislature |
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that the residents and customers served by the West Travis County |
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Public Utility Agency before the effective date of this Act will be |
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provided by the creation of the Hill Country Regional Water |
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Authority under this Act with the means to obtain services |
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authorized by Sections 8601.101 and 8601.102, Special District |
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Local Laws Code, as added by this Act, in the most effective and |
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efficient manner without the impairment of any existing contracts |
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or obligations of the West Travis County Public Utility Agency. |
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SECTION 3. The heading to Subtitle G, Title 6, Special |
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District Local Laws Code, is amended to read as follows: |
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SUBTITLE G. RIVER AUTHORITIES AND OTHER SPECIAL WATER AUTHORITIES |
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SECTION 4. Subtitle G, Title 6, Special District Local Laws |
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Code, is amended by adding Chapter 8601 to read as follows: |
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CHAPTER 8601. HILL COUNTRY REGIONAL WATER AUTHORITY |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 8601.001. DEFINITIONS. In this chapter: |
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(1) "Authority" means the Hill Country Regional Water |
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Authority. |
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(2) "Board" means the board of directors of the |
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authority. |
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(3) "Director" means a member of the board. |
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(4) "Member entity" means: |
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(A) Hays County; |
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(B) the City of Bee Cave; or |
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(C) West Travis County Municipal Utility |
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District No. 5. |
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Sec. 8601.002. NATURE OF AUTHORITY. The authority is a |
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conservation and reclamation district in Hays and Travis Counties |
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created under and essential to accomplish the purposes of Section |
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59, Article XVI, Texas Constitution. |
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Sec. 8601.003. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) |
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The authority is created to serve a public use and benefit. |
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(b) All land and other property included in the territory of |
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the authority will benefit from the works and projects to be |
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accomplished by the authority under powers conferred by Section 59, |
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Article XVI, Texas Constitution, and powers granted under this |
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chapter. |
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(c) The authority is created to accomplish the control, |
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storage, conservation, preservation, distribution, and use of |
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water for domestic, industrial, municipal, and all other useful |
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purposes, including the protection, preservation, and restoration |
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of the purity and sanitary condition of water within this state, as |
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provided by Section 59, Article XVI, Texas Constitution. |
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Sec. 8601.004. AUTHORITY BOUNDARIES. The authority's |
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boundaries are coextensive with the boundaries of the territory |
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described by Certificate of Public Convenience and Necessity No. |
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13207, as those boundaries exist on the effective date of the Act |
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enacting this chapter and as they may be amended in accordance with |
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applicable law. |
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Sec. 8601.005. APPLICABILITY OF OTHER LAW. (a) Except as |
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otherwise provided by this chapter, Chapter 49, Water Code, applies |
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to the authority. For the purposes of Chapter 49, Water Code, the |
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authority is a special water authority. |
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(b) The following subchapters of Chapter 49, Water Code, do |
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not apply to the authority: |
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(1) Subchapter J; |
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(2) Subchapter L; |
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(3) Subchapter M; and |
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(4) Subchapter N. |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 8601.051. DIRECTORS; TERMS. (a) The authority is |
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governed by a board of five appointed directors. |
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(b) Except for a director serving on the initial board, |
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directors serve staggered four-year terms that expire September 30 |
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of even-numbered years. |
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(c) A director may serve consecutive terms of office. |
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Sec. 8601.0515. INITIAL BOARD. (a) The initial board |
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consists of: |
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Position 1--Larry Fox; |
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Position 2--Ray Whisenant; |
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Position 3--Michael Murphy; |
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Position 4--Scott Roberts; and |
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Position 5--Bill Goodwin. |
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(b) Directors Fox, Whisenant, and Murphy serve initial |
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terms expiring September 30, 2016. Directors Roberts and Goodwin |
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serve initial terms expiring September 30, 2014. |
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(c) A vacancy in a position on the initial board shall be |
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filled in the manner provided by Section 8601.053 for making an |
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appointment to the same position, except that an appointment to |
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fill a vacancy in position 4 or 5 does not require that both |
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positions be seated simultaneously. |
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(d) This section expires September 30, 2016. |
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Sec. 8601.052. ELIGIBILITY TO SERVE AS A DIRECTOR. (a) To |
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be eligible to serve as a director, an individual must be at least |
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18 years of age. |
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(b) To be eligible to serve as a director: |
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(1) in position 1, 2, or 3, an individual must reside |
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in Hays or Travis County; |
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(2) in position 4, an individual must reside in Hays |
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County; or |
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(3) in position 5, an individual must reside in Travis |
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County. |
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Sec. 8601.053. METHOD OF APPOINTING DIRECTORS. (a) |
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Directors are appointed or recommended for appointment to the five |
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numbered positions on the board by the governing body of each member |
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entity as follows: |
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(1) West Travis County Municipal Utility District No. |
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5 shall appoint the director who serves in position 1; |
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(2) Hays County shall appoint the director who serves |
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in position 2; |
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(3) the City of Bee Cave shall appoint the director who |
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serves in position 3; |
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(4) Hays County shall appoint the director who serves |
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in position 4, subject to approval by the member entities as |
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provided by Subsection (b); and |
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(5) the City of Bee Cave shall appoint the director who |
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serves in position 5, subject to approval by the member entities as |
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provided by Subsection (b). |
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(b) The governing bodies of all member entities must approve |
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the appointments of directors for positions 4 and 5 before the |
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persons begin to serve as directors. Upon approval, directors |
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appointed to serve in those positions shall be seated |
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simultaneously. |
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(c) Except to fill a vacancy, the appointment of a director |
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must be made during September of the year in which that position's |
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term begins. |
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Sec. 8601.054. VACANCY. (a) A vacancy in a position on the |
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board shall be filled in the same manner as an appointment to the |
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board for that position, except that a vacancy in position 4 or 5 |
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does not require that positions 4 and 5 be seated simultaneously. |
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(b) A person appointed to fill a vacancy serves for the |
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remainder of the vacated term. |
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(c) Section 49.105, Water Code, does not apply to the |
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authority. |
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Sec. 8601.055. SERVICE ON BOARD BY EMPLOYEE OR OFFICER OF |
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OTHER PUBLIC ENTITY. (a) The common law doctrine of |
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incompatibility does not disqualify an employee or official of a |
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public entity from serving as a director. |
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(b) An employee, officer, or member of the governing body of |
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a public entity may serve as a director but may not have a personal |
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interest in a contract executed by the authority other than as an |
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employee, officer, or member of the governing body of the public |
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entity. If a director has a personal interest in a contract |
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executed by the authority, the director must abstain from any |
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participation in the matter. A director is not required to abstain |
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from further participation in the matter if a majority of the |
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members of the board of directors have similar interests in the same |
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official action. |
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Sec. 8601.056. COMPENSATION; EXPENSES. (a) A director |
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serves without compensation but, subject to board approval, may be |
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reimbursed for travel or other expenses incurred on behalf of the |
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authority if the director presents the board with a verified |
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statement of the expenses. |
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(b) Section 49.060, Water Code, does not apply to the |
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authority. |
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Sec. 8601.057. QUORUM. A majority of the membership of the |
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board constitutes a quorum for any meeting, and a concurrence of a |
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majority of the entire membership of the board is sufficient for |
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transacting any business of the authority. |
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Sec. 8601.058. OFFICERS. (a) Every two years on the |
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appointment or reappointment of directors, the board shall meet and |
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elect a president, a vice president, a secretary, and any other |
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officers or assistant officers the board considers necessary. |
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(b) The president is the chief executive officer of the |
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authority, presides at all meetings of the board, and shall execute |
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all documents on behalf of the authority unless the board |
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authorizes the general manager or other representative of the |
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authority to execute a document or documents on behalf of the |
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authority. |
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(c) The vice president shall act as president in case of the |
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absence or disability of the president. |
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(d) The secretary is responsible for seeing that all records |
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and books of the authority are properly kept and may attest the |
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president's signature on documents. |
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(e) The board may appoint another director, the general |
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manager, or any employee as assistant or deputy secretary to assist |
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the secretary, and any such person shall be entitled to certify as |
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to the authenticity of any record of the authority, including all |
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proceedings relating to bonds, contracts, or indebtedness of the |
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authority. |
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Sec. 8601.059. REMOVAL FROM OFFICE. A director may be |
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removed from office at any time, with or without cause, by the |
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member entity that appointed the director. |
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Sec. 8601.060. EX OFFICIO BOARD MEMBERS. (a) This section |
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applies only to a person who is not an appointed director. |
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(b) Any of the following persons, or any of those persons' |
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designees, is entitled to serve as an ex officio, nonvoting member |
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of the board: |
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(1) the Hays County judge; |
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(2) the City of Bee Cave city administrator; or |
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(3) the president of the West Travis County Municipal |
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Utility District No. 5 Board of Directors. |
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(c) A person designated as an ex officio member of the board |
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is entitled to receive notice of and to attend the authority's board |
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meetings. |
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(d) A person designated as an ex officio member of the board |
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is not counted for purposes of determining a quorum under Section |
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8601.057. |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 8601.101. GENERAL POWERS AND DUTIES. (a) The |
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authority has all the rights, powers, privileges, functions, and |
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duties necessary and convenient to accomplish the purposes of this |
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chapter. |
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(b) Except as provided by this chapter, the authority has |
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the powers and duties provided by the general law of this state |
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applicable to a special water authority under Chapter 49, Water |
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Code. |
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(c) The authority retains all the rights, powers, |
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privileges, functions, obligations, and duties of the West Travis |
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County Public Utility Agency as in effect before the effective date |
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of the Act enacting this chapter. |
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Sec. 8601.102. WATER AND WASTE POWERS. (a) The authority |
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may supply water for municipal uses, domestic uses, power, and |
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commercial purposes, and all other beneficial uses or controls. |
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(b) The authority may not use groundwater from the Barton |
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Springs Segment of the Edwards Aquifer as a source of the |
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authority's water supply. This section shall not be interpreted to |
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prohibit an aquifer storage and recovery project or a recharge |
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improvement project that enhances water supply in the Barton |
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Springs Segment of the Edwards Aquifer. |
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(c) The authority may collect, transport, process, dispose |
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of, and control all domestic, industrial, or communal wastes |
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whether in fluid, solid, or composite state. |
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Sec. 8601.103. AUTHORITY POLICIES, RULES, AND BYLAWS. The |
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authority may adopt and enforce policies, rules, and bylaws |
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reasonably required to implement this chapter, including rules |
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governing procedures before the board and rules regarding |
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implementation, enforcement, and any other matters related to the |
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exercise of the rights, powers, privileges, and functions conferred |
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on the authority by this chapter for the provision of water and |
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wastewater service. |
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Sec. 8601.104. EXPANSION OF SERVICES. (a) In this section, |
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"West Travis County Water and Wastewater Systems" means those water |
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and wastewater systems that were owned and operated before the |
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effective date of the Act enacting this chapter by the West Travis |
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County Public Utility Agency pursuant to agreement with the member |
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entities. |
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(b) Except as provided by Subsection (c), the authority may |
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extend service to new customers located inside or outside the |
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authority's boundaries. |
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(c) The authority may not extend wastewater service to new |
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customers in Hays County that are located inside the |
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extraterritorial jurisdiction or municipal limits of a |
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municipality unless the authority sends the municipality written |
|
notice of its intent to provide the service and the municipality |
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does not object in writing to the extension of service on or before |
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the 60th day after the date of receiving notice. |
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(d) Authority policies, rules, and bylaws must include |
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reasonable provisions for funding authority expenses for expansion |
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of the West Travis County Water and Wastewater Systems to serve new |
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development. |
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Sec. 8601.105. ACQUISITION, CONSTRUCTION, MAINTENANCE, AND |
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OPERATION OF SYSTEMS. (a) The authority may purchase, construct, |
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acquire, own, operate, maintain, repair, improve, or extend inside |
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or outside its boundaries any works, improvements, facilities, |
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plants, equipment, or appliances necessary to accomplish authority |
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purposes under this chapter, including all works, improvements, |
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facilities, plants, equipment, and appliances incident, helpful, |
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or necessary to provide services inside or outside the authority's |
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boundaries. |
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(b) Any new construction or extension of authority |
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facilities in the jurisdiction of a municipality must comply with |
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the municipality's: |
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(1) ordinances governing subdivision platting and |
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site development; and |
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(2) design criteria for fire flow. |
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Sec. 8601.106. WATER CONSERVATION OR DROUGHT CONTINGENCY |
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PLANS. The authority by rule may develop, prepare, revise, adopt, |
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implement, enforce, and manage comprehensive water conservation or |
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drought contingency plans for the authority or any portion of the |
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authority. |
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Sec. 8601.107. CONTRACTS AND INSTRUMENTS. The authority |
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may, as necessary or convenient to the exercise of the rights, |
|
powers, privileges, and functions conferred on the authority by |
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this chapter: |
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(1) enter into a contract, including an interlocal |
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contract under Chapter 791, Government Code; or |
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(2) execute an instrument. |
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Sec. 8601.108. MEMBER ENTITY CONVEYANCES AND ACQUISITIONS. |
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(a) In this section, "utility system" has the meaning assigned by |
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Section 1502.001, Government Code. |
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(b) A member entity may convey a utility system facility or |
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asset or its interest in a utility system facility or asset to the |
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authority without holding an election to approve the conveyance. |
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(c) A member entity is exempt from the provisions of Chapter |
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1502, Government Code, regarding the conveyance, sale, or |
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acquisition of a utility system, or any related works, |
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improvements, facilities, plants, equipment, or appliances. |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS |
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Sec. 8601.151. FEES, RATES, AND OTHER CHARGES. The board |
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shall establish, charge, and collect tolls, fees, user fees, rates, |
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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. 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; |
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(2) pay the interest on and principal of all bonds, |
|
notes, or other obligations assumed, issued, or incurred by the |
|
authority; |
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(3) pay the principal of and interest on and any other |
|
amounts owed under any legal debt created or assumed by the |
|
authority; |
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(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 |
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(5) fulfill the terms of any agreements made with the |
|
bondholders, other counterparties or creditors, or with any person |
|
on their behalf. |
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Sec. 8601.152. IMPACT FEES. The authority may assess |
|
impact fees under Chapter 395, Local Government Code. |
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Sec. 8601.153. LATE OR PARTIAL PAYMENTS: INTEREST AND |
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PENALTIES. (a) The board may require the payment of interest on |
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any late or unpaid tolls, fees, user fees, impact fees, rates, or |
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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. |
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Sec. 8601.154. ADMINISTRATIVE PENALTY. A person who |
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violates a rule or order of the authority is subject to an |
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administrative penalty of not more than $5,000, as determined by |
|
the board, for each violation or each day of a continuing violation. |
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The person shall pay the penalty to the authority. |
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Sec. 8601.155. DISBURSEMENTS. (a) The authority may |
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disburse authority money by check, draft, order, federal reserve |
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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. |
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(c) The board by resolution may allow the general manager, |
|
treasurer, bookkeeper, or other employee or representative of the |
|
authority to sign disbursements. |
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Sec. 8601.156. NO AD VALOREM TAXATION OR SPECIAL |
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ASSESSMENTS. The authority may not impose an ad valorem tax or a |
|
special assessment. |
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Sec. 8601.157. FISCAL YEAR. The authority's fiscal year |
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begins on October 1 and ends on September 30. |
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Sec. 8601.158. FRANCHISE FEES. The authority may not |
|
assess or collect a franchise fee for the use of its real property. |
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The authority may pay a franchise fee to another governmental |
|
entity. |
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SUBCHAPTER E. BONDS AND NOTES |
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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. |