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SECTION 2. Subtitle X, Title
6, Special District Local Laws Code, is amended by adding Chapter 11010 to
read as follows:
CHAPTER 11010. ALLIANCE
REGIONAL WATER AUTHORITY
SUBCHAPTER A. GENERAL
PROVISIONS
Sec. 11010.001.
DEFINITIONS.
Sec. 11010.002. NATURE OF
AUTHORITY.
Sec. 11010.003. FINDINGS
OF PUBLIC PURPOSE AND BENEFIT.
Sec. 11010.004. AUTHORITY
TERRITORY.
Sec. 11010.005. METHOD OF
ADDING SPONSORS. (a) The governing body of a local government or a
private entity, including a water supply corporation, may petition the
board to add that local government or private entity as a sponsor.
(b) A petition under
Subsection (a) must be submitted in the manner and form required by board
rule.
(c) On receipt of a
petition under Subsection (a), the board shall set a hearing on the
petition and provide notice of the date, time, place, and purpose of the
hearing to:
(1) the sponsors of the
authority; and
(2) the petitioning local
government or private entity.
(d) At the hearing, the
board shall make a determination on whether:
(1) the local government
or private entity will benefit from being added to the authority as a
sponsor; and
(2) it is in the best
interest of the authority to add the local government or private entity to
the authority as a sponsor.
(e) If, after a hearing
on the petition, the board decides that
the local government or private entity should be added to the authority as
a sponsor, the board shall issue an order:
(1) adding the local
government or private entity to the authority;
(2) adding the local
government's or private entity's territory or service area to the territory
of the authority; and
(3) making the local
government's or private entity's territory or service area subject to the
privileges, duties, assets, and financial obligations of the authority to
the same degree as other sponsors already included in the authority.
(f) After the addition of
a sponsor to the authority, the
board shall adopt rules that
reapportion the directors of the authority among the sponsors in accordance
with the rules adopted under Section 11010.051(c)(2) and may
increase or decrease the number of directors on the board within the range provided by Section
11010.051(a).
Sec. 11010.006. LIBERAL
CONSTRUCTION OF CHAPTER.
SUBCHAPTER B. BOARD OF
DIRECTORS
Sec. 11010.051.
DIRECTORS. (a) The authority is governed by a board of directors
consisting of at least 7 and not more than 17 members.
(b) The board is
responsible for the management, operation, and control of the authority.
(c) The board shall adopt rules that:
(1) establish the number
of directors of the authority; and
(2) determine the apportionment of
directors for each sponsor based on the amount of water contracted to be
supplied to the sponsor under the terms of the authority's water supply
contract with the sponsor.
Sec. 11010.052.
ELIGIBILITY TO SERVE AS DIRECTOR.
Sec. 11010.053.
APPOINTMENT OF DIRECTORS.
Sec. 11010.054. TERMS OF
OFFICE.
Sec. 11010.055. REMOVAL
OF DIRECTOR.
Sec. 11010.056. BOARD
VACANCY.
Sec. 11010.057. VOTING
AUTHORITY.
Sec. 11010.058.
OFFICERS.
Sec. 11010.059. MEETINGS
AND ACTIONS OF BOARD; QUORUM.
SUBCHAPTER C. POWERS AND
DUTIES
SUBCHAPTER D. GENERAL
FINANCIAL PROVISIONS
SUBCHAPTER E. BONDS,
NOTES, AND OTHER OBLIGATIONS
Sec. 11010.201. REVENUE
BONDS, NOTES, AND OTHER OBLIGATIONS. (a) In addition to bonds, notes, and
other obligations that the authority is authorized to issue under other
law, to accomplish the purposes of the authority, the authority may issue
bonds, notes, or other obligations payable solely from and secured by all or
part of any funds or any revenue from any source or sources, including:
(1) fees, rates, and
other charges the authority imposes or collects;
(2) the sale of:
(A) water;
(B) water or wastewater
services;
(C) water rights or
capacity;
(D) water transmission
rights, capacity, or services;
(E) water pumping;
(F) wastewater reused
directly or indirectly;
(G) aquifer storage and
recovery services;
(H) sewer services; or
(I) 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) the proceeds of
contracts.
(b) Bonds, notes, or
other obligations issued by the authority may be first or subordinate lien
obligations at the board's discretion.
(c) In connection with
any bonds, notes, or other obligations 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, notes, or other
obligations.
(e) The authority may
enter into one or more indentures of trust to further secure its bonds,
notes, or other obligations.
(f) The authority may
issue bonds, notes, or other obligations in more than one series as
necessary to carry out the purposes of this chapter. In issuing bonds,
notes, or other obligations secured by revenue of the authority, the
authority may reserve the right to issue additional bonds, notes, or other
obligations secured by the authority's revenue that are on parity with or
are senior or subordinate to the bonds, notes, or other obligations issued
earlier.
(g) A resolution of the
board or a trust indenture securing the bonds, notes, or other obligations
may specify additional provisions that constitute a contract between the
authority and the authority's bondholders, noteholders, or other obligation
holders.
(h) Bonds, notes, or
other obligations may be additionally secured by deed of trust or mortgage
on any or all of the authority's facilities.
(i) Bonds, notes, or other obligations issued by the authority
are not subject to approval by the Texas Commission on Environmental
Quality, and commission rules regarding bonds, notes, or other obligations
do not apply to bonds, notes, or other obligations issued by the authority.
(j) The authority
provided by this chapter for the authorization and issuance of bonds,
notes, and other obligations is in addition to, and not in lieu of, the
authority otherwise established under general law and may not be construed
as a limitation on, or a modification of, general law providing for
authorization and issuance of bonds, notes, and other forms of
obligations. Nothing in this chapter may be construed as affecting any
existing contract, bond, note, or other obligation of the authority or any
indenture, covenant, mortgage, or other agreement relating to them.
Sec. 11010.202. ELECTION
NOT REQUIRED.
Sec. 11010.203. USE OF
REVENUE AND GROWTH PROJECTIONS.
Sec. 11010.204. REFUNDING
BONDS.
Sec. 11010.205. BONDS,
NOTES, AND OTHER OBLIGATIONS EXEMPT FROM TAXATION.
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SECTION 2. Subtitle X, Title
6, Special District Local Laws Code, is amended by adding Chapter 11010 to
read as follows:
CHAPTER 11010. ALLIANCE
REGIONAL WATER AUTHORITY
SUBCHAPTER A. GENERAL
PROVISIONS
Sec. 11010.001.
DEFINITIONS.
Sec. 11010.002. NATURE OF
AUTHORITY.
Sec. 11010.003. FINDINGS
OF PUBLIC PURPOSE AND BENEFIT.
Sec. 11010.004. AUTHORITY
TERRITORY.
Sec. 11010.005. METHOD OF
ADDING SPONSORS. (a) The governing body of a local government or a
private entity, including a water supply corporation, may petition the
board to add that local government or private entity as a sponsor.
(b) A petition under
Subsection (a) must be submitted in the manner and form required by board
rule.
(c) On receipt of a
petition under Subsection (a), the board shall set a hearing on the
petition and provide notice of the date, time, place, and purpose of the
hearing to:
(1) the sponsors of the
authority; and
(2) the petitioning local
government or private entity.
(d) At the hearing, the
board shall determine whether:
(1) the local government
or private entity will benefit from being added to the authority as a
sponsor; and
(2) it is in the best
interest of the authority to add the local government or private entity to
the authority as a sponsor.
(e) If, after a hearing
on the petition, the board determines that
the local government or private entity should be added to the authority as
a sponsor, the board shall issue an order:
(1) adding the local
government or private entity to the authority;
(2) adding the local
government's or private entity's territory or service area to the territory
of the authority;
(3) making the local
government's or private entity's territory or service area subject to the
privileges, duties, assets, and financial obligations of the authority to
the same degree as other sponsors already included in the authority; and
(4) stating the proposed effective date of the order.
(f) An order issued under Subsection (e) takes effect on the
proposed effective date except as otherwise provided by this section. If
the subject of the order is a local government, the proposed effective date
must allow enough time for the local government to comply with Subsections
(g) and (h).
(g) A local government that is the subject of an order issued
under Subsection (e) shall publish notice of the authority's proposal to add
the local government to the authority as a sponsor. The notice must:
(1) be published in a newspaper of general circulation in the
county in which the local government is located;
(2) be published at least once per week for two consecutive
weeks and with the first publication appearing on or before the 14th day
before the proposed effective date of the order;
(3) state the proposed effective date of the order adding the
local government to the authority as a sponsor; and
(4) include information regarding the right of the local
government's voters to petition the governing body of the local government
to call an election on the question of authorizing the addition of the
local government to the authority as a sponsor and the method of making the
petition.
(h) If the governing body of the local government, before the
proposed effective date of the order, receives a petition calling for an
election on the question of authorizing the addition of the local
government to the authority as a sponsor that is signed by at least 10
percent of the local government's registered voters, the governing body
shall order a special election on the question. Section 41.001(a),
Election Code, does not apply to an election ordered under this subsection.
(i) On receipt of a qualifying petition under Subsection (h),
the effective date of the order issued under Subsection (e) is suspended
until after the date of the election and the governing body of the local
government shall notify the board of the petition and suspension.
(j) If a majority of voters voting in an election held under
this section vote in favor of the addition of the local government to the
authority as a sponsor, the order issued under Subsection (e) takes effect
on the date the result is declared. If a majority of voters voting in the
election vote against the addition of the local government to the authority
as a sponsor, the order issued under Subsection (e) is ineffective.
Sec. 11010.006. METHOD OF REMOVING SPONSORS. (a) The
governing body of a local government or private entity that is a sponsor of
the authority may petition the board to be removed from the authority as a
sponsor.
(b) A petition under Subsection (a) must be submitted in the
manner and form required by board rule.
(c) After receiving a petition under Subsection (a), the board
shall decide whether the petitioning sponsor should be removed from the
authority as a sponsor and shall by order approve, conditionally approve,
or disapprove the petition.
(d) The board may not approve a petition submitted to the board
under this section if that action would impair or violate or conflict with
the terms of any outstanding bonds, notes, or other obligations of the
authority.
(e) An order issued under Subsection (c) that approves or
conditionally approves a sponsor's petition to be removed from the
authority as a sponsor must address:
(1) all matters related to the removal as determined by the
board, including the removal of the territory of the sponsor and territory
located in the service area of the sponsor as provided by the sponsor's
certificate of convenience and necessity; and
(2) if applicable, any conditions imposed by the board that the
petitioning sponsor must satisfy before the board approves the petition,
which may include:
(A) payment by the petitioning sponsor of all bonds, notes, or
other obligations issued by the authority on behalf of the sponsor;
(B) payment by the petitioning sponsor of the sponsor's pro
rata share of any bond, note, or other obligation issued by the authority,
other than the bonds, notes, or other obligations described by Paragraph
(A), if the payment is allowed under the terms of the bond, note, or other
obligation;
(C) conditions related to the ownership or transfer of
ownership of real property, facilities, equipment, personnel, and supplies;
and
(D) conditions the authority considers necessary for the
winding up of activities in connection with the removal of the petitioning
sponsor as a sponsor from the authority.
(f) If the board by order conditionally approves a sponsor's
petition under Subsection (c), the petitioning sponsor remains a sponsor
and shall make all payments owed to the authority when due and shall
satisfy all conditions included in the order. The board shall approve the
petition immediately after all required payments to the authority are
received and all conditions included in the order are satisfied as
determined by the board.
(g) The removal of a local government or private entity from
the authority as a sponsor under this section does not prohibit the local
government or private entity from contracting with the authority for the
provision of water supply, wastewater treatment, or other services provided
by the authority.
Sec. 11010.007.
REAPPORTIONMENT OF DIRECTORS. After the addition or removal of a sponsor under
this subchapter, the board by
rule shall reapportion the directors of the authority among the
sponsors in accordance with Section 11010.051(c)(2). The board may
increase or decrease the number of directors on the board in accordance with Section
11010.051(a).
Sec. 11010.008. LIBERAL
CONSTRUCTION OF CHAPTER.
SUBCHAPTER B. BOARD OF
DIRECTORS
Sec. 11010.051.
DIRECTORS. (a) The authority is governed by a board of directors
consisting of at least 7 and not more than 17 members.
(b) The board is
responsible for the management, operation, and control of the authority.
(c) The board by rule shall:
(1) establish the number
of directors of the authority; and
(2) apportion the directors for each
sponsor based on the amount of water contracted to be supplied to the
sponsor under the terms of the authority's water supply contract with the
sponsor, subject to Section
11010.053(a).
Sec. 11010.052.
ELIGIBILITY TO SERVE AS DIRECTOR.
Sec. 11010.053.
APPOINTMENT OF DIRECTORS.
Sec. 11010.054. TERMS OF
OFFICE.
Sec. 11010.055. REMOVAL
OF DIRECTOR.
Sec. 11010.056. BOARD
VACANCY.
Sec. 11010.057. VOTING
AUTHORITY.
Sec. 11010.058. OFFICERS.
Sec. 11010.059. MEETINGS
AND ACTIONS OF BOARD; QUORUM.
SUBCHAPTER C. POWERS AND
DUTIES
SUBCHAPTER D. GENERAL
FINANCIAL PROVISIONS
SUBCHAPTER E. BONDS,
NOTES, AND OTHER OBLIGATIONS
Sec. 11010.201. REVENUE
BONDS, NOTES, AND OTHER OBLIGATIONS. (a) In addition to bonds, notes, and
other obligations that the authority is authorized to issue under other
law, to accomplish the purposes of the authority, the authority may issue
bonds, notes, or other obligations payable solely from and secured by all or
part of any funds or any revenue from any source or sources, including:
(1) fees, rates, and
other charges the authority imposes or collects;
(2) the sale of:
(A) water;
(B) water or wastewater
services;
(C) water rights or
capacity;
(D) water transmission
rights, capacity, or services;
(E) water pumping;
(F) wastewater reused
directly or indirectly;
(G) aquifer storage and
recovery services;
(H) sewer services; or
(I) 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) the proceeds of
contracts.
(b) Bonds, notes, or
other obligations issued by the authority may be first or subordinate lien
obligations at the board's discretion.
(c) In connection with
any bonds, notes, or other obligations 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, notes, or other
obligations.
(e) The authority may
enter into one or more indentures of trust to further secure its bonds,
notes, or other obligations.
(f) The authority may
issue bonds, notes, or other obligations in more than one series as
necessary to carry out the purposes of this chapter. In issuing bonds,
notes, or other obligations secured by revenue of the authority, the
authority may reserve the right to issue additional bonds, notes, or other
obligations secured by the authority's revenue that are on parity with or
are senior or subordinate to the bonds, notes, or other obligations issued
earlier.
(g) A resolution of the
board or a trust indenture securing the bonds, notes, or other obligations
may specify additional provisions that constitute a contract between the
authority and the authority's bondholders, noteholders, or other obligation
holders.
(h) Bonds, notes, or
other obligations may be additionally secured by deed of trust or mortgage
on any or all of the authority's facilities.
(i) The authority
provided by this chapter for the authorization and issuance of bonds,
notes, and other obligations is in addition to, and not in lieu of, the
authority otherwise established under general law and may not be construed
as a limitation on, or a modification of, general law providing for
authorization and issuance of bonds, notes, and other forms of
obligations. Nothing in this chapter may be construed as affecting any
existing contract, bond, note, or other obligation of the authority or any
indenture, covenant, mortgage, or other agreement relating to them.
Sec. 11010.202. ELECTION
NOT REQUIRED.
Sec. 11010.203. USE OF
REVENUE AND GROWTH PROJECTIONS.
Sec. 11010.204. REFUNDING
BONDS.
Sec. 11010.205. BONDS,
NOTES, AND OTHER OBLIGATIONS EXEMPT FROM TAXATION.
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