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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of regional authorities for water |
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infrastructure projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The Water Code is amended by adding Title 6 to |
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read as follows: |
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TITLE 6. WATER INFRASTRUCTURE |
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SUBTITLE A. GENERAL PROVISIONS |
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CHAPTER 201. GENERAL PROVISIONS |
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Sec. 201.001. DEFINITIONS. In this title: |
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(1) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(2) "Development board" means the Texas Water |
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Development Board. |
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SUBTITLE B. WATER INFRASTRUCTURE PROJECTS |
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CHAPTER 251. REGIONAL WATER AUTHORITIES |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 251.001. DEFINITIONS. In this chapter: |
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(1) "Authority" means a regional water authority |
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organized under this chapter. |
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(2) "Board" means the board of directors of an |
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authority. |
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(3) "Bond" includes a bond, certificate, note, or |
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other obligation of an authority authorized by this chapter, |
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another statute, or the Texas Constitution. |
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(4) "Bond proceeding" includes a bond resolution and a |
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bond indenture authorized by the bond resolution, a credit |
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agreement, loan agreement, or other agreement entered into in |
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connection with the bond or the payments to be made under the |
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agreement, and any other agreement between an authority and another |
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person providing security for the payment of a bond. |
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(5) "Bond resolution" means an order or resolution of |
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a board authorizing the issuance of a bond. |
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(6) "Bondholder" means the owner of a bond and |
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includes a trustee acting on behalf of an owner of a bond under the |
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terms of a bond indenture. |
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(7) "Director" means a member of a board. |
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(8) "Governmental entity" means a political |
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subdivision of the state, including a municipality or a county, a |
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district organized or operating under Section 52, Article III, or |
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Section 59, Article XVI, Texas Constitution, a nonprofit |
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corporation, including a water supply or sewer service corporation |
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operating under Chapter 67, or any other public entity or |
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instrumentality. |
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(9) "Member entity" means a governmental entity that |
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is approved for inclusion in an authority. |
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(10) "Public utility facility" means: |
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(A) a water, wastewater, natural gas, or |
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petroleum pipeline or facility; |
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(B) an electric transmission or distribution |
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facility; or |
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(C) telecommunications infrastructure, |
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including fiber optic cable, conduit, and wireless communications |
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facilities. |
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(11) "Revenue" means fees, rents, and other money |
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received by an authority from the ownership or operation of a water |
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project. |
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(12) "Surplus revenue" means revenue that exceeds the |
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sum of: |
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(A) an authority's debt service requirements for |
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a water project; |
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(B) an authority's payment obligations under a |
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contract or agreement authorized by this chapter; |
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(C) coverage requirements of a bond indenture for |
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a water project; |
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(D) costs of operation and maintenance for a |
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water project; |
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(E) cost of repair, expansion, or improvement of |
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a water project; |
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(F) funds allocated for feasibility studies; and |
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(G) necessary reserves as determined by the |
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authority. |
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(13) "Water project" means a project approved for |
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inclusion in the state water plan, including: |
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(A) a conveyance facility for conveying water or |
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wastewater, including a canal or pipeline; |
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(B) a dam; |
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(C) a desalination facility; |
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(D) a drainage system; |
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(E) a dredging operation; |
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(F) a flood control system; |
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(G) an injection well; |
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(H) an irrigation system; |
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(I) a public utility facility; |
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(J) a surface water reservoir; |
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(K) an underground reservoir; |
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(L) a wastewater or water treatment facility, |
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including any: |
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(i) building or structure; |
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(ii) pumping equipment; |
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(iii) pipes; or |
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(iv) other operating equipment; |
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(M) other real or personal property associated |
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with a water project described by this subdivision; and |
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(N) any other project approved in the state water |
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plan for the area covered by the authority. |
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(14) "Water system" means a combination of water |
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projects. |
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Sec. 251.002. CONSTRUCTION COSTS DEFINED. (a) The cost of |
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the acquisition, construction, improvement, extension, or |
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expansion of a water project under this chapter includes the cost |
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of: |
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(1) the actual acquisition, construction, |
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improvement, extension, or expansion of the water project; |
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(2) the acquisition of real property, rights-of-way, |
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property rights, easements, and other interests in real property; |
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(3) machinery and equipment; |
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(4) interest payable before, during, and for not more |
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than three years after acquisition, construction, improvement, |
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extension, or expansion as provided in the bond proceedings; |
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(5) revenue estimates, engineering and legal |
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services, plans, specifications, surveys, appraisals, construction |
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cost estimates, and other expenses necessary or incidental to |
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determining the feasibility of the acquisition, construction, |
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improvement, extension, or expansion; |
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(6) necessary or incidental administrative, legal, |
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and other expenses; |
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(7) compliance with laws, regulations, and |
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administrative rulings, including any costs associated with |
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necessary environmental mitigation measures; |
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(8) financing; and |
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(9) expenses related to the initial operation of the |
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water project. |
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(b) Costs attributable to a water project and incurred |
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before the issuance of bonds to finance the water project may be |
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reimbursed from the proceeds of sale of the bonds. |
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Sec. 251.003. NATURE OF AUTHORITY. An authority is a |
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conservation and reclamation district created under and essential |
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to accomplish the purposes of Section 59, Article XVI, Texas |
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Constitution. |
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SUBCHAPTER B. CREATION OF AUTHORITY |
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Sec. 251.051. METHOD OF CREATING AUTHORITY. Two or more |
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governmental entities may submit a petition to the commission |
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requesting the creation of an authority. The petition must |
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include: |
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(1) the name of the proposed authority; |
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(2) the area and the boundaries of the proposed |
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authority, including a map generally outlining those boundaries; |
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(3) the purpose or purposes of the authority; |
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(4) a statement of the general nature of any water |
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projects proposed to be undertaken by the proposed authority, the |
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necessity and feasibility of the work, and the estimated costs of |
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those projects if those projects are to be funded by the sale of |
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bonds or notes; |
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(5) the names of at least five individuals qualified |
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to serve as temporary directors; and |
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(6) financial information, including a budget based on |
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projected expenses and revenue. |
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Sec. 251.052. NOTICE AND PUBLIC MEETING ON AUTHORITY |
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CREATION. If a petition is filed under Section 251.051, the |
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commission shall give notice of the application and shall conduct a |
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public meeting in a central location within the area of the proposed |
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authority on the application not later than the 60th day after the |
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date the commission issues notice. The notice must contain the |
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date, time, and location of the public meeting and must be published |
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in one or more newspapers of general circulation in the area of the |
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proposed authority. |
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Sec. 251.053. COMMISSION ORDER. (a) After a meeting |
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described by Section 251.052, if the commission determines that |
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creation of the authority satisfies the criteria adopted by the |
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commission under Section 251.054, the commission shall issue an |
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order creating the authority and notify the petitioners. |
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(b) An order issued under this section must include: |
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(1) the territory of the authority; and |
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(2) the names of the temporary directors. |
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Sec. 251.054. CRITERIA FOR CREATION OF AUTHORITY. The |
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commission shall adopt rules establishing the criteria to be used |
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to determine whether the creation of an authority would protect and |
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promote the health and safety of the public. |
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Sec. 251.055. ADDITION AND WITHDRAWAL OF GOVERNMENTAL |
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ENTITIES. (a) A governmental entity may petition the commission |
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for approval to become part of an existing authority. The |
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commission may approve the petition only if: |
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(1) the board has agreed to the petition; and |
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(2) the commission finds that the affected |
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governmental entities will be adequately represented on the board. |
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(b) A member entity may petition the commission for approval |
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to withdraw from an authority. The commission may approve the |
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petition only if: |
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(1) the authority has no bonded indebtedness; or |
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(2) the authority has debt other than bonded |
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indebtedness, but the board has agreed to the withdrawal. |
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(c) A governmental entity may not become part of an |
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authority or withdraw from an authority without the approval of the |
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commission. |
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Sec. 251.056. TERRITORY. An authority's territory is the |
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combined territory of its member entities. |
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SUBCHAPTER C. ADMINISTRATION |
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Sec. 251.101. BOARD OF DIRECTORS; TERMS. (a) The governing |
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body of an authority is the board, which shall consist of not fewer |
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than 5 and not more than 13 directors appointed by the member |
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entities that compose the authority. |
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(b) Directors serve staggered terms of four years. |
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Sec. 251.102. ELIGIBILITY. (a) To be eligible to serve as |
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a director, an individual: |
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(1) must reside in the territory of the authority; and |
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(2) may be a representative of the appointing member |
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entity. |
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(b) Notwithstanding any statutory or common law provision |
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that prohibits dual office holding, an individual may serve as a |
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director who is also an elected or appointed officer of a member |
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entity without forfeiting either office. |
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Sec. 251.103. APPOINTMENT OF DIRECTORS. The temporary |
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directors shall establish a method of appointing directors that |
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ensures equitable treatment of each member entity. |
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Sec. 251.104. MEETINGS. The board shall hold regular |
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meetings at a location inside the authority as agreed upon by the |
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board. |
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SUBCHAPTER D. POWERS AND DUTIES |
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Sec. 251.151. GENERAL POWERS. (a) An authority, through |
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its board, may: |
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(1) adopt rules for the regulation of its affairs and |
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the conduct of its business; |
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(2) adopt an official seal; |
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(3) study, evaluate, design, finance, acquire, |
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construct, maintain, repair, and operate water projects, |
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individually or as one or more water systems; |
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(4) acquire, hold, and dispose of property in the |
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exercise of its powers and the performance of its duties under this |
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chapter; |
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(5) enter into contracts or operating agreements with |
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a similar authority, another governmental entity, or an agency of |
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the United States, a state of the United States, the United Mexican |
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States, or a state of the United Mexican States; |
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(6) enter into contracts or agreements necessary or |
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incidental to its powers and duties under this chapter; |
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(7) employ and set the compensation and benefits of |
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administrators, consulting engineers, attorneys, accountants, |
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construction and financial experts, superintendents, managers, |
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full-time and part-time employees, agents, consultants, and other |
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persons as the authority considers necessary or useful; |
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(8) apply for, directly or indirectly receive, and |
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spend loans, gifts, grants, and other contributions for any purpose |
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of this chapter, including the construction of a water project, and |
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receive and spend contributions of money, property, labor, or other |
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things of value from any source, including the United States, a |
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state of the United States, the United Mexican States, a state of |
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the United Mexican States, the commission, a political subdivision |
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of this state, or a governmental entity or private entity, to be |
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used for the purposes for which the grants, loans, or contributions |
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are made, and enter into any agreement necessary for the grants, |
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loans, or contributions; |
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(9) relocate or remove or request the relocation or |
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removal of a public utility facility in, on, along, over, or under a |
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water project; |
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(10) enter into leases, operating agreements, service |
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agreements, licenses, franchises, and similar agreements with a |
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public or private party governing the party's use of all or any |
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portion of a water project and the rights and obligations of the |
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authority with respect to a water project; |
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(11) borrow money from or enter into a loan agreement |
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or other arrangement with the development board; and |
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(12) do all things necessary or appropriate to carry |
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out the powers and duties expressly granted or imposed by this |
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chapter. |
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(b) An authority may, if requested by the commission, |
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perform any function not specified by this chapter to promote or |
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develop a water project in this state. |
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(c) An authority may sue and be sued and plead and be |
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impleaded in its own name. |
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Sec. 251.152. PROJECTS ON BEHALF OF GOVERNMENTAL ENTITIES. |
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(a) An authority and a governmental entity may enter into a |
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contract, agreement, interlocal agreement, or other similar |
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arrangement under which the authority may plan, design, construct, |
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or operate a water project on behalf of the governmental entity. An |
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authority may enter into a contract with the commission under which |
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the authority will plan, develop, operate, or maintain a water |
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project on behalf of the commission. |
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(b) Payments to be made to an authority under a contract |
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described by this section constitute operating expenses of the |
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water project or system that is to be operated under the contract. |
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The contract may extend for the number of years as agreed to by the |
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parties. |
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Sec. 251.153. PROCUREMENT. An authority shall adopt rules |
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governing its procurement of goods and services that are consistent |
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with general laws applicable to the authority. |
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Sec. 251.154. PROVISION OF RETAIL PUBLIC UTILITY SERVICES |
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PROHIBITED. An authority may not operate a public utility facility |
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that provides retail public utility service. |
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Sec. 251.155. EMINENT DOMAIN. An authority may exercise |
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the power of eminent domain in accordance with Section 49.222. |
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SUBCHAPTER E. OPERATION OF WATER PROJECTS |
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Sec. 251.201. OPERATION OF WATER PROJECT. (a) An authority |
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shall operate a water project with employees of the authority or by |
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using services contracted under Subsection (b). |
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(b) An authority may enter into an agreement with one or |
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more persons to provide, on terms and conditions approved by the |
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authority, personnel and services to design, construct, operate, |
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maintain, expand, enlarge, or extend the water project of the |
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authority. |
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Sec. 251.202. AUDIT. (a) An authority shall have a |
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certified public accountant audit the authority's books and |
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accounts at least annually. The cost of the audit may be treated as |
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part of the cost of construction or operation of a water project. |
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(b) The commission may initiate an independent audit of the |
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authority or any of its activities at any time the commission |
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considers appropriate. An audit under this subsection shall be |
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conducted at the expense of the commission. |
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Sec. 251.203. TRANSFER OF WATER PROJECTS OR SYSTEMS. An |
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authority, acting through its board, may agree with another entity |
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to acquire a water project or system from that entity and to assume |
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any debts, obligations, and liabilities of the entity relating to a |
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water project or system transferred to the authority. |
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Sec. 251.204. AD VALOREM TAX. (a) If authorized at an |
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election held for that purpose, an authority may impose an |
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operation and maintenance tax on taxable property in the authority |
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in accordance with Section 49.107. |
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(b) The board shall determine the tax rate. The rate may not |
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exceed the rate approved at the election. |
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(c) An authority may not impose an ad valorem tax for the |
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payment of bonds or other obligations. |
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SUBCHAPTER F. WATER PROJECT FINANCING |
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Sec. 251.251. REVENUE BONDS. (a) An authority, by bond |
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resolution, may authorize the issuance of bonds to pay all or part |
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of the cost of a water project, to refund any bonds previously |
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issued for the water project, or to pay for all or part of the cost |
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of a water project that will become a part of another water system. |
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(b) As determined in the bond resolution, the bonds of each |
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issue shall: |
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(1) be dated; |
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(2) bear interest at the rate or rates provided by the |
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bond resolution and beginning on the dates provided by the bond |
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resolution and as authorized by law, or bear no interest; |
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(3) mature at the time or times provided by the bond |
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resolution, not exceeding 40 years from their date or dates; and |
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(4) be made redeemable before maturity at the price or |
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prices and under the terms provided by the bond resolution. |
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(c) An authority may sell the bonds at public or private |
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sale in the manner and for the price it determines to be in the best |
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interest of the authority. |
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(d) The proceeds of each bond issue shall be disbursed in |
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the manner and under any restrictions provided in the bond |
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resolution. |
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(e) Additional bonds may be issued in the same manner to pay |
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the costs of a water project. Unless otherwise provided in the bond |
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resolution, the additional bonds shall be on a parity, without |
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preference or priority, with bonds previously issued and payable |
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from the revenue of the water project. In addition, an authority |
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may issue bonds for a water project secured by a lien on the revenue |
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of the water project subordinate to the lien on the revenue securing |
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other bonds issued for the water project. |
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(f) If the proceeds of a bond issue exceed the cost of the |
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water project for which the bonds were issued, the surplus shall be |
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segregated from the other money of the authority and used only for |
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the purposes specified in the bond resolution. |
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(g) Bonds issued and delivered under this chapter and |
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interest coupons on the bonds are a security under Chapter 8, |
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Business & Commerce Code. |
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(h) Bonds issued under this chapter and income from the |
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bonds, including any profit made on the sale or transfer of the |
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bonds, are exempt from taxation in this state. |
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(i) Bonds issued under this chapter shall be considered |
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authorized investments under Chapter 2256, Government Code, for |
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this state, any governmental entity, and any other public entity |
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proposing to invest in the bonds. |
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Sec. 251.252. INTERIM BONDS. (a) An authority may, before |
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issuing definitive bonds, issue interim bonds, with or without |
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coupons, exchangeable for definitive bonds. |
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(b) The interim bonds may be authorized and issued in |
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accordance with this chapter, without regard to a requirement, |
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restriction, or procedural provision in any other law. |
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(c) A bond resolution authorizing interim bonds may provide |
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that the interim bonds recite that the bonds are issued under this |
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chapter. The recital is conclusive evidence of the validity and the |
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regularity of the bonds' issuance. |
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Sec. 251.253. PAYMENT OF BONDS; STATE AND COUNTY CREDIT. |
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(a) The principal of, interest on, and any redemption premium on |
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bonds issued by an authority are payable solely from: |
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(1) the revenue of the water project for which the |
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bonds are issued; |
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(2) payments made under an agreement with the |
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commission or another governmental entity; |
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(3) money derived from any other source available to |
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the authority, other than money derived from a water project that is |
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not part of the same water system or money derived from a different |
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system, except to the extent that the surplus revenue of a water |
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project or system has been pledged for that purpose; and |
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(4) amounts received under a credit agreement relating |
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to the water project for which the bonds are issued. |
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(b) Bonds issued under this chapter do not constitute a debt |
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of this state or of a governmental entity, or a pledge of the faith |
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and credit of this state or of a governmental entity. Each bond |
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must contain on its face a statement to the effect that: |
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(1) the state, the authority, or any governmental |
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entity is not obligated to pay the bond or the interest on the bond |
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from a source other than the amount pledged to pay the bond and the |
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interest on the bond; and |
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(2) the faith and credit and taxing power of this state |
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or of any governmental entity are not pledged to the payment of the |
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principal of or interest on the bond. |
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(c) An authority may not incur a financial obligation that |
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cannot be paid from revenue derived from owning or operating the |
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authority's water projects or from other revenue provided by law. |
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Sec. 251.254. EFFECT OF LIEN. (a) A lien on or a pledge of |
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revenue from a water project or a reserve, replacement, or other |
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fund established in connection with a bond issued under this |
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chapter: |
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(1) is enforceable at the time of payment for and |
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delivery of the bond; |
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(2) applies to each item on hand or subsequently |
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received; |
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(3) applies without physical delivery of an item or |
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other act; and |
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(4) is enforceable against any person having a claim, |
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in tort, contract, or other remedy, against the applicable |
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authority without regard to whether the person has notice of the |
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lien or pledge. |
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(b) A bond resolution is not required to be recorded except |
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in the regular records of the authority. |
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Sec. 251.255. BOND INDENTURE. (a) Bonds issued by an |
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authority under this chapter may be secured by a bond indenture |
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between the authority and a corporate trustee that is a trust |
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company or a bank that has the powers of a trust company. |
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(b) A bond indenture may pledge or assign the revenues to be |
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received but may not convey or mortgage any part of a water project. |
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(c) A bond indenture may: |
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(1) set forth the rights and remedies of the |
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bondholders and the trustee; |
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(2) restrict the individual right of action by |
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bondholders as is customary in trust agreements or indentures of |
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trust securing corporate bonds and debentures; and |
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(3) contain provisions the authority determines |
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reasonable and proper for the security of the bondholders, |
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including covenants: |
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(A) establishing the authority's duties relating |
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to: |
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(i) the acquisition of property; |
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(ii) the construction, maintenance, |
|
operation, and repair of and insurance for a water project; and |
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(iii) custody, safeguarding, and |
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application of money; |
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(B) prescribing events that constitute default; |
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(C) prescribing terms on which any or all of the |
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bonds become or may be declared due before maturity; and |
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(D) relating to the rights, powers, liabilities, |
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or duties that arise on the breach of a duty of the authority. |
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(d) An expense incurred in carrying out a trust agreement |
|
may be treated as part of the cost of operating the water project. |
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(e) In addition to all other rights by mandamus or other |
|
court proceeding, an owner or trustee of a bond issued under this |
|
chapter may enforce the owner's rights against an issuing |
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authority, the authority's employees, the authority's board, or an |
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agent or employee of the authority's board and is entitled to: |
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(1) require the authority or the board to impose and |
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collect fees, charges, and other revenue sufficient to carry out |
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any agreement contained in the bond proceedings; and |
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(2) apply for and obtain the appointment of a receiver |
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for the water project or system. |
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Sec. 251.256. APPROVAL OF BONDS BY ATTORNEY GENERAL. (a) |
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An authority shall submit to the attorney general for examination |
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the record of proceedings relating to bonds authorized under this |
|
chapter. The record shall include the bond proceedings and any |
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contract securing or providing revenue for the payment of the |
|
bonds. |
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(b) If the attorney general determines that the bonds, the |
|
bond proceedings, and any supporting contract are authorized by |
|
law, the attorney general shall approve the bonds and deliver to the |
|
comptroller: |
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(1) a copy of the legal opinion of the attorney general |
|
stating the approval; and |
|
(2) the record of proceedings relating to the |
|
authorization of the bonds. |
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(c) On receipt of the legal opinion of the attorney general |
|
and the record of proceedings relating to the authorization of the |
|
bonds, the comptroller shall register the record of proceedings. |
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(d) After approval by the attorney general, the bonds, the |
|
bond proceedings, and any supporting contract are valid, |
|
enforceable, and incontestable in any court or other forum for any |
|
reason and are binding obligations according to their terms for all |
|
purposes. |
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Sec. 251.257. FURNISHING OF INDEMNIFYING BONDS OR PLEDGES |
|
OF SECURITIES. (a) A bank or trust company incorporated under the |
|
laws of this state that acts as depository of the proceeds of bonds |
|
or of revenue may furnish indemnifying bonds or pledge securities |
|
that an authority requires. |
|
(b) Bonds of an authority may secure the deposit of public |
|
money of this state or a political subdivision of this state to the |
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extent of the lesser of the face value of the bonds or their market |
|
value. |
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Sec. 251.258. APPLICABILITY OF OTHER LAW; CONFLICTS. All |
|
laws affecting the issuance of bonds by local governmental |
|
entities, including Chapters 1201, 1202, 1204, and 1371, Government |
|
Code, apply to bonds issued under this chapter. To the extent of a |
|
conflict between those laws and this chapter, the provisions of |
|
this chapter prevail. |
|
Sec. 251.259. REVENUE; SINKING FUND. (a) An authority may |
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impose fees or other charges related to each of its water projects. |
|
(b) Revenue derived from a water project for which bonds are |
|
issued, other than any part necessary to pay the cost of |
|
maintenance, repair, and operation and to provide reserves for |
|
those costs as provided in the bond proceedings, shall be set aside |
|
at regular intervals as provided in the bond resolution or trust |
|
agreement in a sinking fund that is pledged to and charged with the |
|
payment of: |
|
(1) interest on the bonds as it becomes due; |
|
(2) principal of the bonds as it becomes due; |
|
(3) necessary charges of paying agents for paying |
|
principal and interest; |
|
(4) the redemption price or the purchase price of |
|
bonds retired by call or purchase as provided in the bond |
|
proceedings; and |
|
(5) any amounts due under credit agreements. |
|
(c) Use and disposition of money deposited to the credit of |
|
the sinking fund is subject to the bond proceedings. |
|
(d) To the extent permitted under the applicable bond |
|
proceedings, revenue from one water project of an authority may be |
|
used to pay the cost of another water project of the authority. |
|
(e) An authority may not use revenue from a water project in |
|
a manner not authorized by this chapter. Except as provided by this |
|
chapter, revenue derived from a water project may not be applied for |
|
a purpose or to pay a cost other than a purpose or cost that is |
|
reasonably related to or anticipated to be for the benefit of a |
|
water project. |
|
Sec. 251.260. AUTHORITY REVOLVING FUND. (a) An authority |
|
may maintain a revolving fund to be held in trust by a banking |
|
institution chosen by the authority separate from any other funds |
|
and administered by the authority's board. |
|
(b) An authority may transfer into its revolving fund money |
|
from any permissible source, including: |
|
(1) money from a water project if the transfer does not |
|
diminish the money available for the project to less than any amount |
|
required to be retained by the bond proceedings pertaining to the |
|
project; |
|
(2) money received by the authority from any source |
|
and not otherwise committed, including money from the transfer of a |
|
water project or system or sale of authority assets; and |
|
(3) contributions, loans, grants, or assistance from |
|
the United States, another state, another political subdivision of |
|
this state, a foreign governmental entity, including the United |
|
Mexican States or a state of the United Mexican States, a local |
|
government, any private enterprise, or any person. |
|
(c) The authority may use money in the revolving fund to: |
|
(1) finance the acquisition, construction, |
|
maintenance, or operation of a water project, including the |
|
extension, expansion, or improvement of a water project; |
|
(2) provide matching money required in connection with |
|
any federal, state, local, or private aid, grant, or other funding, |
|
including aid or funding by or with public-private partnerships; |
|
(3) provide credit enhancement either directly or |
|
indirectly for bonds issued to acquire, construct, extend, expand, |
|
or improve a water project; |
|
(4) provide security for or payment of future or |
|
existing debt for the design, acquisition, construction, |
|
operation, maintenance, extension, expansion, or improvement of a |
|
water project or system; |
|
(5) borrow money and issue promissory notes or other |
|
indebtedness payable out of the revolving fund for any purpose |
|
authorized by this chapter; and |
|
(6) provide for any other reasonable purpose that |
|
assists in the financing of an authority as authorized by this |
|
chapter. |
|
(d) Money spent or advanced from the revolving fund for a |
|
water project must be reimbursed from the money of that water |
|
project. There must be a reasonable expectation of repayment at the |
|
time the expenditure or advancement is authorized. |
|
Sec. 251.261. EXEMPTION FROM TAXATION OR ASSESSMENT. (a) |
|
An authority is exempt from taxation of or assessments on: |
|
(1) a water project or system; |
|
(2) property the authority acquires or uses under this |
|
chapter for a water project or system; or |
|
(3) income from property described by Subdivision (1) |
|
or (2). |
|
(b) An authority is exempt from payment of development fees, |
|
utility connection fees, assessments, and service fees imposed or |
|
assessed by any governmental entity or any property owners' or |
|
homeowners' association. This subsection does not apply to fees or |
|
assessments charged under approved rate schedules or line extension |
|
policies of a municipally owned electric or gas utility. |
|
Sec. 251.262. PERFORMANCE AND PAYMENT BONDS AND SECURITY. |
|
Notwithstanding Chapter 2253, Government Code, an authority shall |
|
require any party to an agreement to operate or maintain a water |
|
project to provide performance and payment bonds or other forms of |
|
security, including a corporate guarantee, in amounts considered by |
|
the authority to be adequate to protect the authority and to assure |
|
performance of all obligations to the authority and to |
|
subcontractors providing materials or labor for a water project. |
|
SUBCHAPTER G. DISSOLUTION OF AUTHORITY |
|
Sec. 251.301. VOLUNTARY DISSOLUTION. (a) An authority may |
|
not be dissolved unless the dissolution is approved by the |
|
commission. |
|
(b) A board may submit a request to the commission for |
|
approval to dissolve. |
|
(c) The commission may approve a request to dissolve only |
|
if: |
|
(1) all debts, obligations, and liabilities of the |
|
authority have been paid and discharged or adequate provision has |
|
been made for the payment of all debts, obligations, and |
|
liabilities; and |
|
(2) there are no suits pending against the authority, |
|
or adequate provision has been made for the satisfaction of any |
|
judgment, order, or decree that may be entered against it in any |
|
pending suit. |
|
Sec. 251.302. INVOLUNTARY DISSOLUTION. (a) The commission |
|
by order may require an authority to dissolve if the commission |
|
determines that the authority has not substantially complied with |
|
the requirements of a commission rule. |
|
(b) The commission may not require dissolution unless: |
|
(1) the conditions described in Section 251.301(c) |
|
have been met; and |
|
(2) the holders of any indebtedness have evidenced |
|
their agreement to the dissolution. |
|
SECTION 2. The Texas Commission on Environmental Quality |
|
shall adopt rules necessary to implement Chapter 251, Water Code, |
|
as added by this Act, not later than March 1, 2014. |
|
SECTION 3. This Act takes effect September 1, 2013. |