81R7182 PMO-F
By: Laubenberg, Button H.B. No. 1082
A BILL TO BE ENTITLED
AN ACT
relating to the North Texas Municipal Water District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1a, Chapter 62, Acts of the 52nd
Legislature, Regular Session, 1951, is amended by adding
Subdivision (13) to read as follows:
(13) "Bonds" includes negotiable or nonnegotiable
bonds, notes, certificates, contractual obligations, or other
obligations of the district.
SECTION 2. Section 3(b), Chapter 62, Acts of the 52nd
Legislature, Regular Session, 1951, is amended to read as follows:
(b) Each director shall receive a fee of $150 for each day
the director spends performing the duties of a director, including
participating in board and committee meetings, other activities
involving substantive deliberation of District business, and
pertinent educational programs [$50 for attending each meeting of
the board and $20 per day devoted to the business of the District
other than attending board meetings], but not more than $7,200
[$1,200] shall be paid to any director in one calendar year
[therefor]. Each director shall be entitled to reimbursement for
actual expenses incurred in attending to District business provided
the service and expense are expressly approved by the Board.
SECTION 3. Section 4, Chapter 62, Acts of the 52nd
Legislature, Regular Session, 1951, is amended to read as follows:
Sec. 4. The board of directors shall elect from its number a
president and a vice-president of the District, and such other
officers as in the judgment of the board are necessary. The
president shall be the [chief executive officer of the District and
the] presiding officer of the board, and shall have the same right
to vote as any other director. The vice-president shall perform all
duties and exercise all powers conferred by this Act upon the
president when the president is absent or fails or declines to act.
The board shall also appoint a secretary and a treasurer who may or
may not be members of the board, and it may combine those offices.
The treasurer shall give bond in such amount as may be required by
the board of directors, but in no event less than $100,000.00. The
condition of such bond shall be that he will faithfully account for
all money which shall come into his custody as treasurer of the
District. The board shall appoint an executive director who shall
employ or contract with all necessary engineers, attorneys and
other employees. The board shall adopt a seal for the District.
SECTION 4. Section 27, Chapter 62, Acts of the 52nd
Legislature, Regular Session, 1951, is amended by amending
Subsections (a), (d), (e), (f), (h), (j), and (k) and adding
Subsection (h-1) to read as follows:
(a) The district has the functions, powers, authority,
rights, and duties necessary to accomplish the purposes for which
the district was created and the purposes authorized by Section 59,
Article XVI, Texas Constitution, this Act, or any other law. In
addition to all other powers, the district is authorized to
purchase, construct, acquire, own, operate, maintain, repair,
improve, or extend inside and outside its boundaries, at any
location whatsoever, in the sole discretion of the district, any
and all property, works, improvements, facilities, plants,
equipment, and appliances incident, helpful, or necessary to:
(1) provide[, pursuant to the provisions of Chapters 5
and 6, Water Code, as amended,] for the control, storage,
preservation, transmission, treatment, and distribution and use of
storm water and floodwater, the water of rivers and streams, and
underground water, for irrigation, power, hydroelectric, and all
other useful purposes, and to supply water for municipal, domestic,
power, hydroelectric, industrial, oil flooding, mining, and
commercial uses and purposes and all other beneficial uses and
purposes;
(2) collect, transport, process, treat, dispose of,
and control all municipal, domestic, industrial, or communal waste
whether in fluid, solid, or composite state, including specifically
the control, abatement, or reduction of all types of pollution; and
it is hereby found and determined by the legislature that all of the
aforesaid purposes are for the conservation and development of the
natural resources of the state within the meaning of Article XVI,
Section 59 of the Texas Constitution.
(d) The district is a "district" under the Regional Waste
Disposal Act, as amended (Chapter 30 [25], Water Code), and all
provisions of said Act are applicable to this district except to the
extent of any conflict with this Act, in which case the provisions
of this Act shall prevail.
(e) All cities, public agencies, and other political
subdivisions are authorized to contract with this district in any
manner authorized by the Regional Waste Disposal Act, as amended
(Chapter 30 [25], Water Code), provided that any city is authorized
to contract with this district in the manner authorized by Section
30.030(c), Water Code [25.030(c) of the Regional Waste Disposal
Act].
(f) The [It is further specifically provided that the]
district and all cities, public agencies, and other political
subdivisions shall have all of such rights, powers, and authority
with respect to the control, storage, preservation, transmission,
treatment, and disposition of storm water and floodwater, and the
water of rivers and streams, and underground water as are granted,
permitted, and authorized by the Regional Waste Disposal Act, as
amended (Chapter 30 [25], Water Code), with respect to waste, waste
disposal systems, and treatment facilities. Subsection (e) of this
section shall be applicable to contracts made pursuant to this
subsection.
(h) The district may issue bonds to borrow money for any
corporate purpose, including the purposes [For the purpose of
providing funds to acquire, purchase, construct, improve, enlarge,
and equip any property, buildings, structures, or other facilities
for any purpose or power] authorized by this section. The [, the]
board of directors of the district may issue [revenue] bonds from
time to time and in one or more issues or series, to be payable from
and secured by liens on and pledges of all or any part of any of the
revenues, income, or receipts derived by the district from its
ownership, operation, lease, or sale of any [such] property,
buildings, structures, or facilities, including the proceeds or
revenues from contracts with any person, firm, corporation, city,
public agency, or other political subdivision. The [Such] bonds
may be issued in certificated form or uncertificated book-entry
form to mature serially or otherwise within not to exceed 50 years
from their date, and provision may be made for the subsequent
issuance of additional parity bonds, or subordinate lien bonds,
under any terms or conditions that may be set forth in the
resolution authorizing the issuance of the bonds. The [Such]
bonds, and any interest coupons appertaining thereto, to the extent
issued in negotiable form, are and shall constitute negotiable
instruments within the meaning and for all purposes of the Texas
Business & Commerce [Uniform Commercial] Code, provided that the
bonds may be issued registrable as to principal alone or as to both
principal and interest, and shall be executed, and may be made
redeemable prior to maturity, and may be issued in such form,
denominations, and manner, and under such terms, conditions, and
details, and may be sold in such manner, including through a public
or private sale, at such price, and under such terms, and said bonds
shall bear interest at such rates, including fixed, variable,
floating, adjustable, or another method of computation, all as
shall be determined and provided in the resolution authorizing the
issuance of the bonds. In the bond resolution, the district may
authorize one or more designated officers or employees of the
district to act on behalf of the district, with the same force and
effect as if the action had been taken by the district, in selling
and delivering the bonds and setting the dates, prices, interest
rates, interest payment periods, and other procedures relating to
the bonds, as specified in the bond resolution. If so provided in
the bond resolution, the proceeds from the sale of the bonds may be
used for paying interest on the bonds during the period of the
acquisition or construction of any facilities to be provided
through the issuance of the bonds, for paying expenses of operation
and maintenance of facilities, for creating a reserve fund for the
payment of the principal of and interest on the bonds, and for
creating any other funds, and such proceeds may be placed on time
deposit or invested, until needed, all to the extent and in the
manner provided in the bond resolution. The district may pledge all
or any part of its revenues, income, or receipts from fees, rentals,
rates, charges, and contract proceeds or payments to the payment of
the bonds, including the payment of principal, interest, and any
other amounts required or permitted in connection with the bonds.
The pledged fees, rentals, rates, charges, proceeds, or payments
shall be fixed and collected in amounts that will be at least
sufficient, together with any other pledged resources, to provide
for all payments of principal, interest, and any other amounts
required in connection with the bonds, and, to the extent required
by the resolution authorizing the issuance of the bonds, to provide
for the payment of expenses in connection with the bonds, and
operation, maintenance, and other expenses in connection with the
aforesaid facilities. The [Said] bonds may be additionally secured
by mortgages or deeds of trust on any real property owned or to be
acquired by the district, and by chattel mortgages or liens on any
personal property appurtenant to such real property; and the board
of directors of the district may authorize the execution of trust
indentures, mortgages, deeds of trust, or other forms of
encumbrances to evidence same. Also, the district may pledge to the
payment of the bonds all or any part of any grant, donation,
revenues, or income received or to be received from the United
States government or any other public or private source, whether
pursuant to an agreement or otherwise.
(h-1) If funds are not available to meet any need of the
district and the board of directors of the district declares an
emergency, the board may issue bond anticipation notes or revenue
anticipation notes, or both bond anticipation notes and revenue
anticipation notes, to borrow the money needed by the district.
Bond anticipation notes may be issued for any purpose for which
bonds of the district may be issued. The district may enter into an
agreement with a purchaser of bond anticipation notes to use the
proceeds from the sale of any bond to pay principal, interest, or
redemption price on the bond anticipation notes. Revenue
anticipation notes may be issued for any purpose for which the
district is authorized to expend revenue of the district. The
district may enter into an agreement with a purchaser of revenue
anticipation notes to adopt, enforce, and collect charges, fees,
rentals, and other amounts for the district's facilities and
services that are sufficient to pay the principal of, any
redemption premium on, and interest on the revenue anticipation
notes.
(j) Chapter 1202, Government Code, applies to the issuance
of bonds by the district. [All bonds issued pursuant to this
section and the appropriate proceedings authorizing their issuance
shall be submitted to the Attorney General of the State of Texas for
examination. When the bonds are to be issued to finance in whole or
in part water-using facilities, except treatment or distribution
facilities, before giving his approval the attorney general shall
be furnished a resolution from the Texas Water Rights Commission
certifying that the district is possessed of the necessary water
right authorizing it to impound and appropriate the water to be
utilized by the project. Also, if the bonds recite that they are
secured by a pledge of revenues of any contract, a copy of such
contract and the proceedings relating thereto shall be submitted to
the attorney general. If he finds that such bonds have been
authorized and any such contract has been made in accordance with
law, he shall approve the bonds and any such contract, and thereupon
the bonds shall be registered by the Comptroller of Public Accounts
of the State of Texas; and after such approval and registration,
such bonds and any such contract shall be incontestable in any court
or other forum for any reason, and shall be valid and binding
obligations in accordance with their terms for all purposes.]
(k) All bonds issued pursuant to this section are legal and
authorized investments in the same manner as provided by Section
49.186(a), Water Code. The [for all banks, trust companies,
building and loan associations, savings and loan associations,
insurance companies of all kinds and types, and trustees, and for
all interest and sinking funds and other public funds of the State
of Texas and all agencies, subdivisions, and instrumentalities
thereof, including all counties, cities, towns, villages, school
districts, and all other kinds and types of districts, public
agencies, and bodies politic. Said] bonds also shall be eligible
and lawful security for [all] deposits of public funds in [of] the
same manner as provided by Section 49.186(b), Water Code [State of
Texas and all agencies, subdivisions, and instrumentalities
thereof, including all counties, cities, towns, villages, school
districts, and all other kinds and types of districts, public
agencies, and bodies politic, to the extent of the market value of
said bonds, when accompanied by any unmatured interest coupons
appurtenant thereto].
SECTION 5. Chapter 62, Acts of the 52nd Legislature,
Regular Session, 1951, is amended by adding Section 28 to read as
follows:
Sec. 28. If a quorum of the board of directors of the
district cannot be assembled due to multiple deaths or injuries
resulting from a catastrophe or disaster, any directors who are
available, or the highest ranking staff member of the district if no
director is available, shall within 24 hours after the catastrophe
or disaster has ended, or as soon as practicable under the
circumstances, take any action necessary to ensure the basic
health, safety, and welfare of the customers of the district and
call for the appointment of new directors by the member cities of
the district to fill the vacancies on the board resulting from the
catastrophe or disaster. Until a quorum of the board of directors
can be assembled, any directors who are available, or the highest
ranking staff member of the district if no director is available,
may only take actions as necessary to protect the basic health,
safety, and welfare of the district's customers. The board of
directors may subsequently ratify any action taken in accordance
with this section.
SECTION 6. Section 27(c), Chapter 62, Acts of the 52nd
Legislature, Regular Session, 1951, is repealed.
SECTION 7. (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 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 are fulfilled
and accomplished.
SECTION 8. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.