Texas 2009 - 81st Regular

Texas House Bill HB2620 Compare Versions

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11 81R4336 SGA-F
22 By: Frost H.B. No. 2620
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the creation, administration, powers, duties, and
88 operation of the Riverbend Water Resources District; providing
99 authority to issue bonds and exercise the power of eminent domain.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Title 6, Special District Local Laws Code, is
1212 amended by adding Subtitle L to read as follows:
1313 SUBTITLE L. MUNICIPAL WATER DISTRICTS
1414 CHAPTER 9601. RIVERBEND WATER RESOURCES DISTRICT
1515 SUBCHAPTER A. GENERAL PROVISIONS
1616 Sec. 9601.001. DEFINITIONS. In this chapter:
1717 (1) "Board" means the board of directors of the
1818 district.
1919 (2) "Bond" has the meaning assigned to the term
2020 "public security" by Section 1202.001, Government Code.
2121 (3) "Director" means a person appointed to the board.
2222 (4) "District" means the Riverbend Water Resources
2323 District.
2424 (5) "Member" means a municipality, county, or other
2525 political subdivision that is a member of the district as provided
2626 by Section 9601.005.
2727 Sec. 9601.002. NATURE OF DISTRICT. The district is a
2828 conservation and reclamation district created under and essential
2929 to accomplish the purposes of Section 59, Article XVI, Texas
3030 Constitution.
3131 Sec. 9601.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
3232 The district is created to serve a public use and benefit.
3333 (b) All land and other property included in the boundaries
3434 of the district will benefit from the works and projects
3535 accomplished by the district under the powers conferred by Section
3636 59, Article XVI, Texas Constitution.
3737 (c) The accomplishment of the purposes stated in this
3838 chapter is for the benefit of the people of this state and the
3939 improvement of their property and industries and will foster and
4040 encourage economic development in this state.
4141 (d) The district, in carrying out the purposes of this
4242 chapter, will be performing an essential public function under the
4343 constitution.
4444 Sec. 9601.004. LIBERAL CONSTRUCTION OF CHAPTER. This
4545 chapter shall be liberally construed to effect the purposes,
4646 powers, rights, and functions stated in this chapter.
4747 Sec. 9601.005. DISTRICT MEMBERS. (a) The district is
4848 composed of the following members:
4949 (1) the City of Annona;
5050 (2) the City of Avery;
5151 (3) the City of DeKalb;
5252 (4) the City of Hooks;
5353 (5) the City of Maud;
5454 (6) the City of New Boston;
5555 (7) the City of Texarkana, Texas;
5656 (8) the City of Wake Village; and
5757 (9) the Red River Redevelopment Authority.
5858 (b) After receipt of a petition from the governing body of a
5959 municipality, county, or other political subdivision that desires
6060 to join the district, the board may add a member to the district, on
6161 terms determined by the board to be in the best interests of the
6262 district.
6363 (c) A member's withdrawal from the district or the cessation
6464 of existence of a member does not affect the validity of the
6565 district or any of the district's powers or duties.
6666 Sec. 9601.006. DISTRICT TERRITORY. (a) The territory of the
6767 district is composed of all the territory contained in:
6868 (1) the cities of Annona, Avery, DeKalb, Hooks, Maud,
6969 New Boston, Texarkana, Texas, and Wake Village; and
7070 (2) the Red River Redevelopment Authority, the
7171 boundaries of which are described by Section 3503.004, including
7272 territory that may be added under Section 3503.005.
7373 (b) The territory of the district also includes all of the
7474 territory:
7575 (1) of any municipality, county, or other political
7676 subdivision that joins the district as a member; and
7777 (2) added to the territory of a member by annexation or
7878 other means.
7979 (c) A defect in the description of the boundaries of a
8080 member or in any past or future proceedings for the annexation of
8181 territory by a member does not affect the validity, powers, or
8282 duties of the district.
8383 Sec. 9601.007. CONFIRMATION ELECTION NOT REQUIRED. (a)
8484 The board is not required to hold an election to confirm the
8585 district's creation.
8686 (b) Sections 49.101-49.105, Water Code, do not apply to the
8787 district.
8888 [Sections 9601.008-9601.050 reserved for expansion]
8989 SUBCHAPTER B. BOARD OF DIRECTORS
9090 Sec. 9601.051. COMPOSITION OF BOARD; TERMS. (a) The
9191 district is governed by its board.
9292 (b) The governing body of each member shall appoint a
9393 director to represent the member on the board and shall promptly
9494 fill a vacancy in that board position in accordance with the
9595 member's policies, resolutions, and procedures.
9696 (c) Except as provided by Subsection (d), directors serve
9797 staggered terms of four years.
9898 (d) A director who is also an elected official of a
9999 political subdivision serves for a term coinciding with the term of
100100 the elected office.
101101 (e) The board shall determine the method of staggering the
102102 terms of the directors.
103103 (f) A director may serve consecutive terms.
104104 Sec. 9601.052. QUALIFICATIONS FOR OFFICE. To be eligible to
105105 be appointed or to serve as a director, a person must be a resident,
106106 qualified voter of the district.
107107 Sec. 9601.053. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a)
108108 The district shall act through orders or resolutions adopted by the
109109 board.
110110 (b) All directors are entitled to vote.
111111 Sec. 9601.054. OFFICERS AND ASSISTANTS. (a) The board
112112 shall elect a president, vice president, secretary, and treasurer.
113113 (b) The board shall elect the president and vice president
114114 from among the directors.
115115 (c) The president and vice president serve for a one-year
116116 term.
117117 (d) The offices of secretary and treasurer:
118118 (1) may be held by one person; and
119119 (2) are not required to be held by a director.
120120 (e) The board may appoint one or more assistant officers who
121121 are not required to be directors.
122122 (f) A person may not concurrently hold the offices of board
123123 president and secretary.
124124 Sec. 9601.055. MEETINGS. The board shall have regular
125125 meetings at times specified by board resolution or bylaws and shall
126126 have special meetings when called by the board president or by a
127127 number of directors that is equal to or greater than the number of
128128 directors that is one less than a majority of the board.
129129 Sec. 9601.056. TELEPHONE CONFERENCE CALL MEETINGS. (a) The
130130 board may hold an open or closed meeting by telephone conference
131131 call only if:
132132 (1) the meeting is a special called meeting;
133133 (2) immediate action is required; and
134134 (3) convening a quorum of the board at one location is
135135 difficult or impossible.
136136 (b) A telephone conference call meeting is subject to the
137137 notice requirements applicable to other meetings of the board.
138138 (c) Each part of a telephone conference call meeting that is
139139 required to be open to the public shall be made audible to the
140140 public at the location specified in the notice of the meeting as the
141141 location of the meeting.
142142 (d) The location designated in the notice as the location of
143143 the meeting shall provide two-way communication during the entire
144144 telephone conference call meeting, and the identification of each
145145 party to the telephone conference shall be clearly stated prior to
146146 speaking.
147147 (e) Section 551.125, Government Code, does not apply to a
148148 meeting held under this section.
149149 Sec. 9601.057. RECALL. A director may be recalled at any
150150 time by the governing body of the member that appointed the
151151 director.
152152 Sec. 9601.058. COMPENSATION; REIMBURSEMENT. A director is
153153 not entitled to compensation for service on the board but is
154154 entitled to be reimbursed for necessary expenses incurred in the
155155 performance of official duties.
156156 Sec. 9601.059. BOARD POSITION NOT A CIVIL OFFICE OF
157157 EMOLUMENT. (a) A position on the board may not be construed to be a
158158 civil office of emolument for any purpose, including a purpose
159159 described in Section 40, Article XVI, Texas Constitution.
160160 (b) An elected official of any county, municipality, or
161161 other political subdivision in the territory of the district may be
162162 appointed to and serve on the board as a director without penalty or
163163 forfeiture of office.
164164 [Sections 9601.060-9601.100 reserved for expansion]
165165 SUBCHAPTER C. POWERS AND DUTIES
166166 Sec. 9601.101. GENERAL POWERS. Except as provided by this
167167 chapter, the district may exercise the powers applicable to a
168168 district under Chapter 49, Water Code.
169169 Sec. 9601.102. SPECIFIC POWERS. The district may exercise
170170 any power necessary or appropriate to achieve the purposes of this
171171 chapter, including the power to:
172172 (1) adopt and enforce:
173173 (A) a trade name or trademark;
174174 (B) bylaws and rules for the conduct of the
175175 affairs of the district;
176176 (C) any rule that a water control and improvement
177177 district may adopt and enforce in accordance with Sections
178178 51.127-51.130, Water Code; and
179179 (D) specific rates, charges, fees, or rentals,
180180 and reasonable rules and regulations, for providing any district
181181 commodity, facility, or service;
182182 (2) in the manner and to the extent permitted by this
183183 chapter:
184184 (A) borrow money for a district purpose;
185185 (B) enter into an agreement in connection with
186186 the borrowing;
187187 (C) issue bonds for money borrowed;
188188 (D) provide for and secure the payment of the
189189 bonds; and
190190 (E) provide for the rights of the holders of the
191191 bonds;
192192 (3) acquire any and all storage rights and storage
193193 capacity in a reservoir or other water source inside or outside the
194194 boundaries of the district, and acquire the right to take water from
195195 that reservoir or source, subject to the rights or permits held by
196196 municipalities or other persons, and in accordance with any
197197 contract or contracts that the district may make with the United
198198 States, any state of the United States, or any political
199199 subdivision of any state of the United States, in reference to those
200200 rights;
201201 (4) construct, acquire, own, finance, operate,
202202 maintain, sell, lease as lessor or lessee, dispose of, or otherwise
203203 use any work, plant, or other district facility as defined by
204204 Section 49.001, Water Code, inside or outside the boundaries of the
205205 district, that the board determines is necessary or useful for the
206206 exercise of a district power; and
207207 (5) pledge all or part of district revenue to the
208208 payment of district obligations under a contract or agreement to
209209 the same extent and on the same conditions as the district may
210210 pledge revenue to secure district bonds.
211211 Sec. 9601.103. GENERAL POWERS REGARDING WATER. The
212212 district has all rights, powers, and privileges necessary or useful
213213 to enable it to acquire, provide, supply, deliver, and sell water,
214214 whether processed or unprocessed, raw or potable, inside or
215215 outside its boundaries to any person for any beneficial purpose.
216216 Sec. 9601.104. AUTHORITY OF PUBLIC AGENCIES AND POLITICAL
217217 SUBDIVISIONS TO CONTRACT WITH DISTRICT. (a) A public agency or a
218218 county, municipality, or other political subdivision of this state
219219 or another state may enter into a contract or agreement with the
220220 district, on terms agreed to by the parties, for:
221221 (1) the purchase or sale of water;
222222 (2) waste collection, transportation, processing, or
223223 disposal; or
224224 (3) any purpose relating to the district's powers or
225225 functions.
226226 (b) A contract or agreement under this section must comply
227227 with Chapter 791, Government Code.
228228 (c) A provision of district services or facilities to a
229229 member or an exercise of district power regarding a member's retail
230230 services may only be made through a contract between the district
231231 and the member under this section.
232232 Sec. 9601.105. CONVEYANCE OF PROPERTY TO DISTRICT. A public
233233 agency or a county, municipality, or other political subdivision of
234234 this state may lease, sell, or otherwise convey to the district, for
235235 any consideration that the parties agree is adequate, any of its
236236 land, improvements, property, plants, lines, or other facilities
237237 related to:
238238 (1) the supply, delivery, or sale of water;
239239 (2) waste collection, transportation, processing, or
240240 disposal; or
241241 (3) garbage collection or disposal.
242242 Sec. 9601.106. ACQUISITION OF EXISTING FACILITIES. If the
243243 district acquires existing works, improvements, facilities,
244244 plants, equipment, or appliances that are completed, partially
245245 created, or under construction, the district may:
246246 (1) assume the contracts and obligations of the
247247 previous owner; and
248248 (2) perform the obligations of the previous owner in
249249 the same manner and to the same extent that any other purchaser or
250250 assignee would be bound.
251251 [Sections 9601.107-9601.150 reserved for expansion]
252252 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
253253 Sec. 9601.151. PROHIBITION ON ASSESSMENTS OR TAXES. (a)
254254 The district may not under this chapter or any other law impose an
255255 assessment on real property or an ad valorem tax or create a debt
256256 payable from an assessment on real property or an ad valorem tax.
257257 (b) Sections 49.106-49.108, Water Code, do not apply to the
258258 district.
259259 Sec. 9601.152. DEPOSITORY. District money shall be
260260 deposited in the depository or depositories designated by the
261261 board, except that:
262262 (1) bond proceeds and money pledged to pay bonds, to
263263 the extent provided in the proceedings authorizing the issuance of
264264 bonds, or the trust indenture securing the bonds, may be deposited
265265 with another depository or trustee named in the proceedings or
266266 trust indenture; and
267267 (2) money shall be remitted to each paying agent for
268268 the payment of principal of and interest on the bonds.
269269 Sec. 9601.153. INVESTMENT OF DISTRICT MONEY. (a) Chapter
270270 2256, Government Code, applies to the district and the investment
271271 of district funds and funds under district control.
272272 (b) The board may invest bond proceeds in a manner
273273 determined by the board or in the manner permitted or required in
274274 the proceedings authorizing the issuance of bonds or in the trust
275275 indenture securing the bonds.
276276 Sec. 9601.154. DISTRICT FACILITIES EXEMPT FROM TAXATION AND
277277 ASSESSMENT. The district is not required to pay a tax or assessment
278278 on its facilities or any part of its facilities.
279279 [Sections 9601.155-9601.200 reserved for expansion]
280280 SUBCHAPTER E. BONDS
281281 Sec. 9601.201. AUTHORITY TO ISSUE BONDS. (a) The district
282282 by resolution may authorize the issuance of bonds payable from and
283283 secured by revenue or any other available source of district money
284284 to carry out a power conferred by this chapter. Bonds issued by the
285285 district are not a direct obligation of any member.
286286 (b) The bonds must be issued in the manner and under the
287287 terms of the proceedings authorizing the issuance of the bonds.
288288 (c) Bonds may be issued by the district without an election.
289289 (d) Sections 49.181-49.186, Water Code, do not apply to the
290290 district.
291291 Sec. 9601.202. FORM OF BONDS. District bonds must be:
292292 (1) issued in the district's name; and
293293 (2) signed by the officers of the district in
294294 accordance with the proceedings authorizing the issuance of the
295295 bonds.
296296 Sec. 9601.203. MATURITY. District bonds must mature not
297297 later than 50 years after the date of their issuance.
298298 Sec. 9601.204. BONDS SECURED BY REVENUE; ADDITIONAL BONDS.
299299 (a) Bonds may be secured by a pledge of all or part of the district's
300300 revenue, or by all or part of the payments or rentals under one or
301301 more contracts or leases specified by the proceedings authorizing
302302 the issuance of the bonds.
303303 (b) The proceedings authorizing the issuance of bonds
304304 secured by a pledge of revenue of all or part of the district's
305305 facilities may provide that the district shall first pay the
306306 expenses of operating and maintaining all or part of the facilities
307307 as the board considers appropriate before paying the principal of
308308 and interest on the bonds.
309309 (c) In the proceedings authorizing the issuance of bonds
310310 secured by revenue, contract payments, or lease rentals, the
311311 district may reserve the right, under conditions specified by the
312312 proceedings, to issue additional bonds that will be on a parity
313313 with, superior to, or subordinate to the bonds then being issued.
314314 Sec. 9601.205. ADDITIONAL SECURITY. (a) At the discretion
315315 of the board, bonds may be additionally secured by a deed of trust
316316 or mortgage lien on all or part of the district's physical
317317 property, facilities, easements, water rights and appropriation
318318 permits, leases, contracts, and all rights appurtenant to the
319319 property, vesting in the trustee power to:
320320 (1) sell the property for the payment of the bonds;
321321 (2) operate the property; and
322322 (3) take other action to further secure the bonds.
323323 (b) A purchaser under a sale under the deed of trust lien, if
324324 one is given, is:
325325 (1) the absolute owner of the property, facilities,
326326 and rights purchased; and
327327 (2) entitled to maintain and operate the property,
328328 facilities, and rights.
329329 Sec. 9601.206. DELEGATION OF AUTHORITY. (a) In connection
330330 with the issuance of bonds, the board may:
331331 (1) prescribe the maximum principal amount of bonds to
332332 be issued and the maximum rate of interest the bonds may bear;
333333 (2) recite the public purpose for which the bonds are
334334 to be issued;
335335 (3) delegate to any officer or employee of the
336336 district the authority to effect the sale of the bonds; and
337337 (4) determine the period during which the delegation
338338 authority under Subdivision (3) may be exercised.
339339 (b) In exercising the authority delegated by the board to an
340340 officer or employee, the officer or employee may establish the
341341 terms and details related to the issuance and sale of the bonds,
342342 including:
343343 (1) the form and designation of the bonds;
344344 (2) the principal amount of the bonds and the amount of
345345 the bonds to mature in each year;
346346 (3) the dates, price, interest rates, interest payment
347347 dates, principal payment dates, and redemption features of the
348348 bonds;
349349 (4) the execution of agreements determined by the
350350 officer or employee to be necessary in connection with the issuance
351351 of the bonds; and
352352 (5) any other details relating to the issuance and
353353 sale of the bonds as specified by the board in the proceedings
354354 authorizing the issuance of the bonds.
355355 (c) A finding or determination made by an officer or
356356 employee acting under the authority delegated to the officer or
357357 employee has the same force and effect as a finding or determination
358358 made by the board.
359359 Sec. 9601.207. TRUST INDENTURE. District bonds authorized
360360 by this chapter, including refunding bonds, may be additionally
361361 secured by a trust indenture. The trustee may be a bank with trust
362362 powers that is located inside or outside the state.
363363 Sec. 9601.208. CREDIT AGREEMENT. In connection with the
364364 issuance of bonds under this chapter, the board may exercise the
365365 authority granted to the governing body of an issuer with regard to
366366 the execution and delivery of a credit agreement under Chapter
367367 1371, Government Code.
368368 Sec. 9601.209. CHARGES FOR DISTRICT SERVICES. If bonds
369369 payable wholly from revenue are issued, the board shall set and
370370 revise the rates, fees, and charges assessed for water sold, waste
371371 collection and treatment services provided, and garbage collection
372372 services provided by the district. The rates, fees, and charges
373373 must be sufficient to:
374374 (1) pay the expense of operating and maintaining the
375375 district facilities that generate the revenue from which the bonds
376376 may or will be paid;
377377 (2) pay the principal of and interest on the bonds when
378378 due; and
379379 (3) maintain the reserve fund and other funds as
380380 provided in the proceedings authorizing the issuance of bonds or
381381 the trust indenture securing the bonds.
382382 Sec. 9601.210. STATE PLEDGE REGARDING RIGHTS AND REMEDIES
383383 OF BONDHOLDERS. Without depriving this state of its power to
384384 regulate and control the rates, fees, and charges assessed for
385385 water sold and waste collection and treatment services provided by
386386 the district, the state pledges to and agrees with the holders of
387387 district bonds that the state will not exercise its power to
388388 regulate and control the rates, fees, and charges in any way that
389389 would impair the rights or remedies of the holders of the bonds.
390390 Sec. 9601.211. USE OF BOND PROCEEDS. In addition to the
391391 permitted use of bond proceeds provided by general law, the
392392 district may use proceeds from the sale of bonds:
393393 (1) for the payment of interest on the bonds while the
394394 project or facility is being acquired or constructed and for the
395395 year after it is acquired or constructed;
396396 (2) for the operation and maintenance of the project
397397 or facility during the estimated period of acquisition or
398398 construction of the project or facility and for one year after it is
399399 acquired or constructed;
400400 (3) for a debt service reserve fund;
401401 (4) for other funds as may be provided in the
402402 proceedings authorizing the issuance of bonds or in the trust
403403 indenture securing the bonds;
404404 (5) to pay any expense necessarily incurred in
405405 accomplishing the purpose of the district, including any expense of
406406 issuing and selling the bonds; and
407407 (6) to pay any costs incurred under the terms of a
408408 credit agreement.
409409 Sec. 9601.212. ADDITIONAL AUTHORITY TO PROVIDE DEBT SERVICE
410410 RESERVE. (a) The board may provide that in lieu of or in addition to
411411 providing for the funding of a debt service reserve fund with cash,
412412 a line or letter of credit or an insurance policy may be used for the
413413 debt service reserve fund.
414414 (b) Any agreement under which a line or letter of credit or
415415 insurance policy is provided must be submitted to the attorney
416416 general for examination and approval. After approval, the
417417 agreement is incontestable in any court or other forum for any
418418 reason and is a valid and binding obligation of the district in
419419 accordance with its terms for all purposes.
420420 Sec. 9601.213. REFUNDING BONDS. (a) The district may issue
421421 refunding bonds to refund all or part of its outstanding bonds
422422 issued under this chapter, including matured but unpaid interest
423423 and obligations incurred under a credit agreement.
424424 (b) Refunding bonds may be issued in the manner provided by
425425 Chapter 1207, Government Code.
426426 Sec. 9601.214. REMEDIES AND COVENANTS. The proceedings
427427 authorizing the issuance of any bonds authorized under this
428428 chapter, including refunding bonds, the execution of a trust
429429 indenture securing the bonds, and the execution of a credit
430430 agreement, may provide other remedies and covenants the board
431431 considers necessary to issue the bonds on terms the board
432432 determines to be most favorable to the district.
433433 Sec. 9601.215. LIMITATION ON RIGHTS OF BONDHOLDERS. The
434434 proceedings authorizing the issuance of bonds or the trust
435435 indenture securing the bonds may limit or qualify the rights of the
436436 holders of less than all of the outstanding bonds payable from the
437437 same source to institute or prosecute litigation affecting the
438438 district's property or income.
439439 Sec. 9601.216. BONDS EXEMPT FROM TAXATION. Payments made
440440 by the district in connection with the issuance of bonds, the
441441 transfer of any bond, and the income from any bond, including
442442 profits made on the sale of any bond, are exempt from taxation in
443443 this state.
444444 Sec. 9601.217. APPOINTMENT OF RECEIVER. (a) On default or
445445 threatened default in the payment of the principal of or interest on
446446 obligations incurred by the district in connection with the
447447 issuance of bonds that are payable wholly or partly from revenue, a
448448 court may, on petition of the holders of at least 25 percent of the
449449 district's outstanding revenue bonds, or the party to a credit
450450 agreement, appoint a receiver for the district.
451451 (b) The receiver may collect and receive all district
452452 revenue, employ and discharge district agents and employees, take
453453 charge of money on hand, and manage the district's proprietary
454454 affairs without the consent of or hindrance by the board.
455455 (c) The receiver may be authorized to sell or contract for
456456 the sale of water, the collection or treatment of waste, or the
457457 provision of garbage collection or disposal services, or to renew
458458 contracts with the approval of the court that appointed the
459459 receiver.
460460 (d) The court may vest the receiver with any other power or
461461 duty the court finds necessary to protect the holders of the bonds
462462 or the party to a credit agreement.
463463 SECTION 2. (a) The legal notice of the intention to
464464 introduce this Act, setting forth the general substance of this
465465 Act, has been published as provided by law, and the notice and a
466466 copy of this Act have been furnished to all persons, agencies,
467467 officials, or entities to which they are required to be furnished
468468 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
469469 Government Code.
470470 (b) The governor has submitted the notice and Act to the
471471 Texas Commission on Environmental Quality.
472472 (c) The Texas Commission on Environmental Quality has filed
473473 its recommendations relating to this Act with the governor,
474474 lieutenant governor, and speaker of the house of representatives
475475 within the required time.
476476 (d) All requirements of the constitution and laws of this
477477 state and the rules and procedures of the legislature with respect
478478 to the notice, introduction, and passage of this Act are fulfilled
479479 and accomplished.
480480 SECTION 3. This Act takes effect immediately if it receives
481481 a vote of two-thirds of all the members elected to each house, as
482482 provided by Section 39, Article III, Texas Constitution. If this
483483 Act does not receive the vote necessary for immediate effect, this
484484 Act takes effect September 1, 2009.