85R19780 JXC-D

By: Faircloth H.B. No. 4308

A BILL TO BE ENTITLED

AN ACT

relating to the Gulf Coast Waste Disposal Authority and expanding the territory and powers of the authority; authorizing fees and the issuance of bonds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1.01, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended to read as follows:

Sec. 1.01. PURPOSE. The purpose of this Act is to:

(1) establish an instrumentality for developing and effectuating for the upper Gulf Coast region in this state [Chambers, Galveston, and Harris Counties] a regional water quality management program including provision of waste disposal and water systems and regulation of disposal of wastes; and

(2) establish an instrumentality for operating and maintaining a coastal barrier constructed with federal funds to protect the upper Gulf Coast region in this state from hurricane-induced storm surges.

SECTION 2. Section 1.02, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended to read as follows:

Sec. 1.02. FINDINGS AND DECLARATION OF POLICY. The legislature finds [It is hereby found and declared] that:

(1) the quality of waters in the upper Gulf Coast region in this state [Chambers, Galveston, and Harris Counties] is materially affected by the disposal of wastes [throughout those counties];

(2) [that] regional approaches to studying water pollution in that region [these counties], [to] planning corrective and preventive measures, [to] providing coordinated facilities for waste disposal, and [to] regulating waste disposal would be far more effective than efforts on a county-wide, city-wide, or smaller scale;

(3) [that] solid wastes, as well as other kinds of waste, may impair water quality by seepage, drainage, and otherwise;

(4) [that] creation of the Gulf Coast Waste Disposal Authority would advance the established policy of the state to maintain the quality of the waters in the state consistent with the public health and public enjoyment thereof, the propagation and protection of terrestrial and aquatic life, the operation of existing industries, and the economic development of the state;

(5) [and that] impending shortage of water in the district for beneficial uses requires that all reasonable measures be taken to prevent and abate water pollution, and to reclaim polluted water for beneficial uses; and

(6) the territory in the upper Gulf Coast region in this state is vulnerable to damage from hurricane-induced storm surges and that granting the Gulf Coast Waste Disposal Authority the power to operate and maintain a coastal barrier constructed with federal funds would advance the public purpose of protecting the upper Gulf Coast region in this state from hurricane-induced storm surges.

SECTION 3. Section 1.03(a), Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended by adding Subdivision (24) to read as follows:

(24) "Coastal spine" means a coastal barrier to protect the upper Gulf Coast region in this state from hurricane-induced storm surges.

SECTION 4. Section 2.02, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended to read as follows:

Sec. 2.02. DESCRIPTION. (a) Except as provided by Subsection (b) of this section, the [The] authority's territory consists of [the area inside the boundaries of] Chambers, Galveston, and Harris Counties.

(b) On the date the authority adopts a resolution under Section 3A.01 of this Act stating that the requirements of that section have been met, the authority's territory consists of Brazoria, Chambers, Galveston, Harris, Jefferson, and Orange Counties.

(c) The Legislature declares that all the area included in the authority's territory [district] will be benefited by the exercise of the powers conferred by this Act.

SECTION 5. Section 2.03, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended by amending Subsections (b) and (e) and adding Subsections (f), (g), and (h) to read as follows:

(b) Except as provided by Subsection (g) of this section, the [The] board consists of nine voting directors.

(e) The [From each county within the district, the] municipalities waste disposal councils [council] of Chambers, Galveston, and Harris Counties each [that county, hereinafter created,] shall appoint one director.

(f) The board may appoint one or more persons to the board to serve as nonvoting directors for any term.

(g) On the date the authority adopts a resolution under Section 3A.01 of this Act stating that the requirements of that section have been met, the board consists of eighteen voting directors.

(h) If the board consists of eighteen voting directors, as provided by Subsection (g) of this section, in addition to appointments made under Subsections (c), (d), and (e) of this section, the appointment councils of Brazoria, Jefferson, and Orange Counties each shall appoint one voting director.

SECTION 6. Section 2.05, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended by amending Subsections (a) and (c) and adding Subsections (a-1), (a-2), (c-1), (c-2), and (g) to read as follows:

(a) A director's term of office shall be two years, commencing September 1 of the year in which the director is appointed [of his appointment, except that four directors of the first board shall have one-year terms, in order to obtain staggered terms. When the directors have been appointed, they shall draw lots to determine which have one-year terms].

(a-1) If the board has nine voting directors, as provided by Section 2.03(b) of this Act, the directors' terms must be staggered so that the terms of not more than five directors expire in a single year.

(a-2) If the board has eighteen voting directors, as provided by Section 2.03(g) of this Act, the directors' terms must be staggered so that the terms of not more than 10 directors expire in a single year.

(c) There are [hereby] created:

(1) the Municipalities Waste Disposal Council of Chambers County, [which shall be] composed of the mayors of each and all of the incorporated cities and towns the city hall of which is situated within Chambers County;

(2) the Municipalities Waste Disposal Council of Galveston County, [which shall be] composed of the mayors of each and all of the incorporated cities and towns the city hall of which is situated within Galveston County; and

(3) the Municipalities Waste Disposal Council of Harris County, [which shall be] composed of the mayors of each and all of the incorporated cities and towns the city hall of which is situated within Harris County.

(c-1) On the date the authority adopts a resolution under Section 3A.01 of this Act stating that the requirements of that section have been met, there are created:

(1) the Appointment Council of Brazoria County, composed of the mayors of the municipalities in Brazoria County;

(2) the Appointment Council of Jefferson County, composed of the mayors of the municipalities in Jefferson County; and

(3) the Appointment Council of Orange County, composed of the mayors of the municipalities in Orange County.

(c-2) The sole function of the [these] councils created under Subsections (c) and (c-1) of this section is [shall be] the selection of directors. Each [The temporary chairman of each council shall be the mayor of the county seat. Promptly after this Act becomes effective, each municipalities waste disposal council shall meet at a time and place designated by its temporary chairman after notice of the time and place of that meeting has been mailed by the temporary chairman to each member of the council at least 48 hours prior to the time fixed for the meeting. At that meeting, the] council shall elect a chairman, vice-chairman, and secretary, and shall adopt such bylaws relating to the conduct of its affairs as the council shall determine to be necessary.

(g) Subsection (f) of this section governs the appointment of directors by appointment councils created under Subsection (c-1) of this section in the same way that Subsection (f) of this section governs appointments by municipal waste disposal councils.

SECTION 7. Subchapter 2, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended by adding Section 2.17 to read as follows:

Sec. 2.17. ADVISORY BOARD. (a) The Coastal Spine Advisory Board shall advise the authority board during the construction of a coastal spine that is to be operated and maintained by the authority on matters related to the operation and maintenance of the coastal spine.

(b) The advisory board is not required to be appointed or to meet unless the authority has adopted a resolution under Section 3A.01 of this Act stating that the requirements of that section have been met.

(c) The advisory board is composed of seven members as follows:

(1) one member appointed by the governor;

(2) one member appointed by the lieutenant governor;

(3) one member appointed by the speaker of the house of representatives;

(4) one member appointed by the Texas Commission on Environmental Quality;

(5) one member appointed by the Parks and Wildlife Commission;

(6) the commissioner of the General Land Office, or the commissioner's designee; and

(7) one member of the authority board chosen by the authority board.

(d) The advisory board is not authorized to act on behalf of the authority without the approval of the authority board.

(e) The advisory board shall:

(1) select from among its members a presiding officer; and

(2) adopt provisions to determine the terms of board members and stagger the members' terms and other provisions necessary to administer the board.

(f) An advisory board member is not entitled to reimbursement of expenses or to compensation.

(g) The advisory board may appoint one or more persons to the advisory board to serve as nonvoting members.

(h) If the authority board determines that construction of a coastal spine is complete:

(1) the advisory board is abolished as of the date the authority board makes the determination; and

(2) the authority board shall notify each appointing person and entity named in Subsection (c) of this section that the advisory board is abolished.

SECTION 8. Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended by adding Subchapter 3A to read as follows:

SUBCHAPTER 3A. COASTAL SPINE

Sec. 3A.01. COASTAL SPINE CONTINGENT ON FEDERAL FUNDING AND FINDING OF SUFFICIENT REVENUE. The authority may not begin to operate or maintain a coastal spine, exercise a power granted to the authority under this subchapter, or otherwise exercise a power granted to the authority by this Act in support of the operation or maintenance of a coastal spine unless:

(1) the federal government approves money for the construction of a coastal spine in this state;

(2) the authority determines that the authority's revenue sources, or projected revenue sources, authorized for use for the operation and maintenance of a coastal spine under Section 3A.03 of this Act are sufficient to cover the cost of operating and maintaining a coastal spine; and

(3) the authority adopts a resolution stating that the requirements of Subdivisions (1) and (2) of this section have been met and submits a copy of the resolution to the legislature.

Sec. 3A.02. GENERAL POWERS AND DUTIES. (a) The authority is authorized to operate and maintain a coastal spine in the manner provided by this subchapter.

(b) The authority may exercise a power granted to the authority by Subchapter 3 of this Act to support the operation and maintenance of a coastal spine.

(c) A duty assigned to the authority under Subchapter 3 of this Act that relates to the authority's duty to develop and effectuate a regional water quality management program does not apply to the operation or maintenance of a coastal spine by the authority unless otherwise provided by this subchapter.

(d) A coastal spine may be operated and maintained inside or outside the territory of the authority.

(e) The authority may convey material and rights produced or acquired during the operation or maintenance of a coastal spine, including spoil, dredged material, and development rights.

(f) The authority may:

(1) apply for a permit for an activity related to the operation or maintenance of a coastal spine; and

(2) seek other necessary approvals for the operation or maintenance of a coastal spine from a state or federal agency.

Sec. 3A.03. USE OF FUNDS FOR COASTAL SPINE. The authority may operate and maintain a coastal spine using money available to the authority, including tax revenue, only if the money is not related to the authority's waste disposal, pollution control, wastewater treatment, water reuse, water systems, or solid waste operations.

Sec. 3A.04. MASTER PLAN. (a) In addition to the master plan developed under Section 3.10 of this Act, the authority shall develop, prepare, and revise, as needed, a master plan for the operation and maintenance of a coastal spine.

(b) The authority shall submit the first master plan and any revised versions of the master plan to the General Land Office before implementing the plan. The General Land Office may approve or disapprove a plan submitted under this section. If the General Land Office does not issue a decision on a plan submitted under this section before the 31st day after the date the General Land Office receives the plan, the plan is considered to be approved.

Sec. 3A.05. ACQUISITION. The authority may:

(1) purchase, lease, acquire by gift, maintain, use, and operate facilities and systems related to the operation or maintenance of a coastal spine; and

(2) acquire permits, licenses, and rights related to the operation or maintenance of a coastal spine.

Sec. 3A.06. CONTRACTS. (a) The authority may make contracts and execute instruments that are necessary or convenient to the exercise of its powers, rights, duties, and functions under this subchapter. The authority is authorized to execute all appropriate documents and instruments in connection with the contracts.

(b) The authority may enter into contracts for a purpose related to the operation or maintenance of a coastal spine in the manner that a municipal management district may enter into contracts under Chapter 375, Local Government Code, as amended.

(c) The authority and all persons are authorized to enter into contracts with respect to the operation or maintenance of a coastal spine.

(d) A public agency or local government is authorized to:

(1) enter into a contract with the authority;

(2) determine, agree, and pledge that all or any part of its payments under a contract with the authority shall be payable from any source, subject only to the authorization by a majority vote of the governing body of such public agency or local government of the contract, pledge, and payments;

(3) use and pledge any available revenues or resources for and to the payment of amounts due under a contract with the authority as an additional source of payment or as the sole source of payment and agree with the authority to assure the availability of revenue and resources when required; and

(4) fix, charge, and collect impact fees and utility charges, if the public agency or local government is otherwise authorized to impose the fees and charges, and to use and pledge revenue from the fees or charges to make payments to the authority required under a contract with the authority.

(e) The authority and another governmental entity may enter into a contract for the operation or maintenance of a coastal spine in the same way that a political subdivision may contract with another governmental entity under Chapter 472, Transportation Code, to construct or maintain a road or highway.

(f) Notwithstanding Section 3.23(a) of this Act, a contract related to the operation or maintenance of a coastal spine may be for any term if the contract is approved by the General Land Office.

Sec. 3A.07. AGREEMENTS. (a) The authority may enter into a cooperative agreement with a political subdivision, state agency, or federal agency for a purpose related to the operation or maintenance of a coastal spine.

(b) The authority may enter into an interlocal agreement with a political subdivision for a purpose related to the operation or maintenance of a coastal spine.

Sec. 3A.08. POWER TO REGULATE NAVIGATION. (a) The authority has the powers provided to navigation districts by Sections 60.043 and 62.118, Water Code, as amended.

(b) The authority may control and distribute storm water and floodwater of rivers and streams in aid of navigation, in the manner provided by Chapter 62, Water Code, as amended, for navigation districts.

(c) For a purpose related to operating or maintaining a coastal spine, an order or action of the authority supersedes an order or action of a navigation district.

Sec. 3A.09. DEVELOPMENT CORPORATION POWERS. (a) The authority may act as a unit, as defined by Section 501.002, Local Government Code, to create a development corporation for a purpose related to the operation or maintenance of a coastal spine.

(b) This section does not authorize the authority to impose a sales tax.

Sec. 3A.10. LOCAL GOVERNMENT CORPORATION POWERS. (a) The board by resolution may authorize the creation of a nonprofit corporation to assist and act for the authority in operating or maintaining a coastal spine.

(b) The nonprofit corporation:

(1) has each power of and is considered to be a local government corporation created under Subchapter D, Chapter 431, Transportation Code, as amended, including for the purposes of Section 431.105, Transportation Code; and

(2) may implement a project related to the operation or maintenance of a coastal spine.

(c) The board shall appoint the board of directors of the nonprofit corporation. The board of directors of the nonprofit corporation shall serve in the same manner as the board of directors of a local government corporation created under Subchapter D, Chapter 431, Transportation Code, as amended.

SECTION 9. Section 5.01(a), Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended to read as follows:

(a) For the purpose of carrying out any power or authority conferred by this Act, including the expense of preparing the master plan and the payment of engineering and other expenses in connection therewith, the authority is empowered to issue its bonds in three general classes:

(1) bonds secured by ad valorem taxes;

(2) bonds secured by a pledge of all or part of the revenues accruing to the authority, including [without limitation] those received from:

(A) sale of water or other products;

(B) [,] rendition of service;

(C) [,] tolls;

(D) [,] charges;

(E) a contract entered into with a city or other governmental agency, authority, or district related to the operation or maintenance of a coastal spine;[,] and

(F) [from] all other sources other than ad valorem taxes; and

(3) bonds secured by a combination pledge of all or part of the revenues described in Subdivision (2) of this subsection[,] and taxes.

SECTION 10. Subchapter 5, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, is amended by adding Section 5.10 to read as follows:

Sec. 5.10. CATASTROPHE BONDS. A corporation created by the authority under Section 3A.09 or 3A.10 of this Act may issue a security with a condition that the corporation's obligation to pay interest or repay the principal is deferred or forgiven if the corporation suffers a loss from a particular predefined catastrophe.

SECTION 11. If the territory of the Gulf Coast Waste Disposal Authority is expanded, the initial directors from Brazoria, Jefferson, and Orange Counties under Sections 2.03 and 2.05, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, as amended by this Act, shall draw lots to determine which director or directors will serve one-year terms and which will serve two-year terms to fulfill the staggered terms requirement of Section 2.05, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, as amended by this Act.

SECTION 12. If the territory of the Gulf Coast Waste Disposal Authority is expanded, the temporary chairman of each appointment council created under Section 2.05(c-1), Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, as added by this Act, for Brazoria, Jefferson, and Orange Counties shall be the mayor of the county seat for that county. Promptly after the date the councils are created, each council shall meet at a time and place designated by the temporary chairman to elect a chairman, vice-chairman, and secretary and adopt bylaws relating to the conduct of council affairs.

SECTION 13. (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, lieutenant governor, and speaker of the house of representatives within the required time.

(d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished.

SECTION 14. 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, 2017.