By: Middleton H.B. No. 3006
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Trinity Bay Special Utility
  District and the powers and duties of the Trinity Bay Conservation
  District; providing authority to issue bonds; providing authority
  to impose assessments or fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. TRINITY BAY SPECIAL UTILITY DISTRICT
         SECTION 1.01.  Subtitle C, Title 6, Special District Local
  Laws Code, is amended by adding Chapter 7223 to read as follows:
  CHAPTER 7223. TRINITY BAY SPECIAL UTILITY DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 7223.0101.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a member of the board.
               (3)  "District" means the Trinity Bay Special Utility
  District.
         Sec. 7223.0102.  NATURE OF DISTRICT; FINDINGS OF BENEFIT AND
  PURPOSE. (a) The district is a special utility district created in
  Chambers and Jefferson Counties under Section 59, Article XVI,
  Texas Constitution.
         (b)  The district is created to serve a public use and
  benefit.
         (c)  The district is essential to accomplish the purposes of
  Section 59, Article XVI, Texas Constitution.
         Sec. 7223.0103.  INITIAL DISTRICT TERRITORY. (a) The
  district is initially composed of the territory described by
  Section 1, Chapter 282, Acts of the 51st Legislature, Regular
  Session, 1949, as that territory existed on September 1, 2021,
  including any modifications made before that date under:
               (1)  Subchapter J, Chapter 49, Water Code; or
               (2)  other law.
         (b)  The boundaries and field notes contained in Section 1,
  Chapter 282, Acts of the 51st Legislature, Regular Session, 1949,
  form a closure. A mistake made in the field notes or in copying the
  field notes in the legislative process does not affect the
  district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bond for the purposes
  for which the district is created or to pay the principal of and
  interest on a bond;
               (3)  legality or operation.
  SUBCHAPTER A-1. TEMPORARY PROVISIONS
         Sec. 7223.0151.  TEMPORARY DIRECTORS. (a) Not later than 45
  days after the effective date of this chapter, a temporary board of
  directors shall be appointed as follows:
               (1)  three temporary directors appointed by the current
  board of directors of the Trinity Bay Conservation District; and
               (2)  two temporary directors appointed by the
  commissioners court of Chambers County.
         (b)  A vacancy for a temporary director position shall be
  filled in the same manner as the initial appointment.
         Sec. 7223.0152.  INITIAL DIRECTORS' ELECTION. Not later
  than September 1, 2023, the temporary directors shall hold an
  election to elect five directors.
         Sec. 7223.0153.  INITIAL ELECTED DIRECTORS; TERMS. The
  directors elected under Section 7223.0152 shall draw lots to
  determine which two shall serve until the first regularly scheduled
  election of directors under Section 7223.0201 and which three shall
  serve until the second regularly scheduled election of directors.
         Sec. 7223.0154.  EXPIRATION OF SUBCHAPTER. This subchapter
  expires September 1, 2025.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 7223.0201.  DIRECTORS. (a) The district is governed by
  a board of five elected directors.
         (b)  To be eligible to serve as a director a person must
  reside in the district.
         (c)  The board has all powers conferred on a board of
  directors under Chapter 65, Water Code.
         (d)  Directors serve staggered terms of four years.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 7223.0301.  GENERAL POWERS AND DUTIES. (a) Except as
  provided by Subsection (b), the district has all rights, powers,
  privileges, functions, and duties provided by the general law of
  this state applicable to a special utility district created under
  Section 59, Article XVI, Texas Constitution, including Chapters 49
  and 65, Water Code.
         (b)  The district may not perform a function that may be
  performed by a drainage district operating under Chapter 56, Water
  Code.
  ARTICLE 2. TRINITY BAY CONSERVATION DISTRICT
         SECTION 2.01.  Chapter 282, Acts of the 51st Legislature,
  Regular Session, 1949, is amended by adding Section 1a to read as
  follows:
         Sec. 1a.  (a)  Except as provided by Subsection (b) of this
  section, the District has all rights, powers, privileges,
  functions, and duties provided by the general law of this state
  applicable to a drainage district created under Section 59, Article
  XVI, Texas Constitution, including Chapters 49 and 56, Water Code.
         (b)  The District may not perform the same function as a
  conservation and reclamation district whose territory overlaps
  with the territory of the District.
         SECTION 2.02.  Sections 9(j), and (k), Chapter 282, Acts of
  the 51st Legislature, Regular Session, 1949, are amended to read as
  follows:
         (j)  To regulate [plumbing,] sewers and other drains used
  only for drainage purposes, and the construction, replacement, and
  operation thereof, and to abate any obstructions or encroachments
  thereof, for the protection and enhancement of the health, safety
  and welfare of the residents of the District.
         (k)  To require the owner of a sewer [plumbing, sewers,] or
  other drain used only for drainage purposes who is [drains] found to
  be in violation of the rules and regulations of the District to fill
  up, cleanse, drain, alter, relay, repair, fix, or improve the same
  as may be ordered or required by any rule or regulation of the
  District; and in the event of any failure, neglect, or refusal to
  comply with such rule or regulation, or in the event there be no
  person in the District on whom the order to comply with such rule or
  regulation can be served, the District may, after not less than 30
  days written notice to said owner, by either personal service or
  certified mail, have such work done and such improvements made on
  account of the owner thereof. All costs, charges, and expenses
  incurred by the District in accomplishing said work shall be a lien
  on the property upon which said work is done, on the filing of a
  memorandum of such by the President of the Board of Directors under
  the seal of the District, and recording the same with the County
  Clerk of the county in which the property lies. The District may
  enforce said lien and institute suit in its name and obtain judgment
  against said owner for the amount so due as aforesaid in any Court
  having jurisdiction.
         SECTION 2.03.  Section 13(a), Chapter 282, Acts of the 51st
  Legislature, Regular Session, 1949, is amended to read as follows:
         (a)  The District may adopt and enforce reasonable rules and
  regulations to:
               (1)  [secure and maintain safe, sanitary, and adequate
  plumbing installations, connections, and appurtenances as
  subsidiary parts of its sanitary sewer system;
               [(2)  preserve the sanitary condition of all water
  controlled by the District;
               [(3)]  prevent waste or the unauthorized use of water
  controlled by the District; and
               (2) [(4)]  regulate privileges on any land or any
  easement owned or controlled by the District.
         SECTION 2.04.  Sections 9(g), 9(h), and 11, Chapter 282,
  Acts of the 51st Legislature, Regular Session, 1949, are repealed.
  ARTICLE 3. TRANSITION AND NOTICE
         SECTION 3.01.  (a)  In this section:
               (1)  "Conservation district" means the Trinity Bay
  Conservation District.
               (2)  "Special utility district" means the Trinity Bay
  Special Utility District.
         (b)  Not later than November 30, 2021, the conservation
  district and the special utility district shall enter into a
  memorandum of understanding regarding compensation to the
  conservation district for assets transferred under Subsection (c)
  of this section.
         (c)  Not later than December 1, 2021, the conservation
  district shall:
               (1)  transfer to the special utility district the
  conservation district's assets, debts, and contractual rights and
  obligations relating to the construction, acquisition, ownership,
  operation, maintenance, repair, improvement, and extension of
  facilities necessary to:
                     (A)  supply water for municipal uses, domestic
  uses, power and commercial purposes, and other beneficial uses; or
                     (B)  collect, transport, process, dispose of,
  store, and control domestic, industrial, or communal wastes whether
  in fluid, solid, or composite state; and
               (2)  provide notice and make recordings of the
  transfers under this subsection as required by the Water Code, the
  Property Code, and other law.
         (d)  On December 1, 2021, the powers, functions, and duties
  of the conservation district that may be exercised by the special
  utility district are transferred to the special utility district.
         (e)  Following the transfer under Subsection (c):
               (1)  Certificates of Convenience and Necessity Nos.
  10997 and 20399 are considered to be held by the special utility
  district; and
               (2)  the board of directors of the conservation
  district shall notify the Public Utility Commission of Texas of the
  transfer of Certificates of Convenience and Necessity Nos. 10997
  and 20399 to the special utility district.
         (f)  On receipt of notice under Subsection (e)(2), the Public
  Utility Commission of Texas shall note in its records that
  Certificates of Convenience and Necessity Nos. 10997 and 20399 are
  held by the special utility district and shall reissue the
  certificates in the name of the special utility district without
  further application, notice, or hearing. A person, party, or
  entity does not have any right of protest, objection, or
  administrative review of the transfer prescribed by this section.
         (g)  The sale and transfer of the conservation district's
  assets, debts, and contractual rights and obligations under
  Subsection (c) does not:
               (1)  contravene a trust indenture or bond resolution
  relating to the district's outstanding bonds; or
               (2)  diminish or impair the rights of a holder of an
  outstanding bond, warrant, or other obligation of the district.
         (h)  Before December 1, 2021, the temporary board of
  directors of the special utility district:
               (1)  may not take any regulatory action under Chapter
  49 or 65, Water Code;
               (2)  shall adopt rules for the administration of the
  special utility district under Chapters 49 and 65, Water Code; and
               (3)  may hire employees of the special utility
  district.
         SECTION 3.02.  (a)  The legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished
  under Section 59, Article XVI, Texas Constitution, and Chapter 313,
  Government Code.
         (b)  The governor, one of the required recipients, has
  submitted the notice and Act to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this Act with the governor, the
  lieutenant governor, and the speaker of the house of
  representatives within the required time.
         (d)  All requirements of the constitution and laws of this
  state and the rules and procedures of the legislature with respect
  to the notice, introduction, and passage of this Act are fulfilled
  and accomplished.
  ARTICLE 4. EFFECTIVE DATES
         SECTION 4.01.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect September 1, 2021.
         (b)  Article 2 of this Act takes effect December 1, 2021.