By: Seliger S.B. No. 2544
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the West Texas Water Supply District;
providing authority to impose a tax and issue bonds; granting the
power of eminent domain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle X, Title 6, Special District Local Laws
Code, is amended by adding Chapter 11003 to read as follows:
CHAPTER 11003. WEST TEXAS WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 11003.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Director" means a board member.
(3) "District" means the West Texas Water Supply
District.
Sec. 11003.002. NATURE OF DISTRICT. The district is a water
supply district in Midland County created under and essential to
accomplish the purposes of Section 52, Article III, and Section 59,
Article XVI, Texas Constitution. The district is created to serve a
public use and benefit.
Sec. 11003.003. CONFIRMATION ELECTION NOT REQUIRED. The
district is not required to hold a confirmation election to confirm
the creation of the district.
Sec. 11003.004. DISTRICT TERRITORY. (a) The district is
initially composed of the territory described by Section 2 of the
Act creating this chapter.
(b) The boundaries and field notes contained in Section 2 of
the Act creating this chapter form a closure. A mistake made in the
field notes or in copying the field notes in the legislative process
does not affect:
(1) the organization, existence, or validity of the
district;
(2) the right of the district to impose taxes; or
(3) the legality or operation of the board.
(c) The district may annex land as provided by Subchapter J,
Chapter 49, Water Code, or other law regardless of whether the land
is contiguous to the district if the land is located not more than
130 miles outside the initial boundaries of the district as
described by Section 2 of the Act creating this chapter and if the
district determines that the annexation is necessary or convenient
for the district to:
(1) exercise its powers under this chapter; or
(2) supply water from a water source to a municipality
or other political subdivision.
[Sections 11003.005-11003.020 reserved for expansion]
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 11003.021. INITIAL DIRECTORS. (a) The initial board
consists of:
(1) Paul Latham;
(2) Brock Thompson;
(3) Mitch Malouf;
(4) Robert Rendall; and
(5) Mark Tisdale.
(b) If an initial director fails to qualify for office, the
initial directors who have qualified shall appoint a person to fill
the vacancy. If at any time there are fewer than three qualified
initial directors, the Texas Commission on Environmental Quality
shall appoint the necessary number of persons to fill all vacancies
on the board.
Sec. 11003.022. ORGANIZATIONAL MEETING OF INITIAL
DIRECTORS. As soon as practicable after all of the initial
directors have qualified under Section 49.055, Water Code, the
initial directors shall meet at a location inside or outside the
district that is agreeable to a majority of the directors. If a
location cannot be agreed on, the organizational meeting shall be
at the Midland County Courthouse.
Sec. 11003.023. TERMS OF INITIAL DIRECTORS. The first two
initial directors listed in Section 11003.021 shall serve a term
expiring December 1 following the first regularly scheduled
election of directors under Section 11003.053, and the remaining
three initial directors shall serve a term expiring December 1
following the second regularly scheduled election of directors.
Sec. 11003.024. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2015.
[Sections 11003.025-11003.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 11003.051. COMPOSITION OF BOARD; TERMS. (a) The
district is governed by a board of five directors.
(b) Except for initial directors, directors serve staggered
four-year terms.
Sec. 11003.052. QUALIFICATIONS. To be qualified to serve
as a director, a person must meet only the qualifications provided
by Section 54.102, Water Code.
Sec. 11003.053. ELECTION OF DIRECTORS. Notwithstanding
Section 49.103, Water Code, the board shall hold an election to
elect the appropriate number of directors on the uniform election
date in November of each even-numbered year.
[Sections 11003.054-11003.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 11003.101. GENERAL POWERS AND DUTIES. (a) Except as
provided by Subsections (c) and (d), the district has the powers and
duties provided by the general law of this state, including
Chapters 49, 51, 53, and 54, Water Code, applicable to water control
and improvement districts, fresh water supply districts, and
municipal utility districts created under Section 59, Article XVI,
Texas Constitution.
(b) Except as otherwise specifically provided by this
chapter, the district may not exercise its powers more than 130
miles outside the initial boundaries of the district as described
by Section 2 of the Act creating this chapter.
(c) Sections 53.029(b), 53.030-53.034, and 53.040-53.043,
Water Code, do not apply to the district.
(d) If a provision of Chapter 49, 51, 53, or 54, Water Code,
is in conflict or inconsistent with this chapter, this chapter
prevails. If there is a conflict between a provision of Chapter 49,
51, 53, or 54, Water Code, and a provision of another chapter listed
in this subsection, the district may operate under either
provision, and it is not necessary for the district to designate the
law under which action is being taken.
Sec. 11003.102. GENERAL AUTHORITY TO ENTER INTO CONTRACTS.
(a) The district and a public agency or political subdivision of
this state, including the Cities of Midland and Fort Stockton, may
enter into a contract on terms agreed to by the parties for any
purpose relating to the district's powers or functions, including
for the purpose of supplying water to the agency or political
subdivision.
(b) Except as provided by Section 11003.153, the district is
not required to:
(1) hold an election to obtain voter approval of a
contract authorized by this section or otherwise obtain approval of
or consent to the contract; or
(2) provide notice of the contract.
Sec. 11003.103. CONTRACTS TO SUPPLY WATER. (a) The
district may contract with a municipality, public agency, special
district, other political subdivision of this state, or other
entity, including the Cities of Midland and Fort Stockton, to:
(1) supply water to the entity; or
(2) rent or lease or operate the water production,
water field, water supply, or water filtration or purification
facilities of the entity.
(b) Except as provided by Section 11003.153, the district
may contract, without holding an election to approve the contract,
with a municipality or other political subdivision located not more
than 130 miles from the initial boundaries of the district,
including the Cities of Midland and Fort Stockton, for the
operation of the district's water facilities.
(c) A contract under this section may be on terms and for the
period agreed to by the parties and may provide that the contract
will continue in effect until bonds specified in the contract and
refunding bonds issued in lieu of the bonds are paid.
(d) The district may purchase, sell, treat, transport, and
convey water inside and outside the boundaries of the district.
(e) The district has all rights, powers, and privileges
necessary or useful to enable the district to acquire, provide,
supply, deliver, transport, treat, or sell potable or nonpotable
water for any beneficial purpose in the district or in territory
located:
(1) not more than 130 miles from the initial
boundaries of the district; and
(2) in Pecos, Crane, Upton, Ector, or Midland County.
Sec. 11003.104. SOURCES FOR WATER; ACQUISITION OF LAND;
STORAGE CAPACITY. (a) The district may acquire, construct, or
develop inside or outside the district sources for water, including
one or more reservoirs or wells and any work, water field, pump,
plant, transmission line, or other facility necessary or useful to
develop, divert, impound, drill for, pump, store, treat, or
transport water, including groundwater, to the Cities of Midland
and Fort Stockton or another entity for municipal, domestic,
industrial, mining, oil flooding, or other useful purposes.
(b) The district may acquire land or an interest in land
inside or outside the district for any work, water well, water
field, pump, plant, or other facility necessary or useful to
develop, divert, impound, drill for, pump, store, treat, or
transport water to the Cities of Midland and Fort Stockton or
another entity for municipal, domestic, industrial, mining, oil
flooding, or other useful purposes.
(c) The district may purchase water or a water supply from
any person, including a public agency.
(d) The district may lease, purchase, or otherwise acquire
rights in and to storage and storage capacity in any reservoir
constructed or to be constructed from any person, including the
United States.
(e) The district may develop or otherwise acquire sources of
groundwater.
(f) The district may acquire water appropriation permits
directly from the Texas Commission on Environmental Quality or from
owners of permits.
Sec. 11003.105. ACQUISITION, DISPOSAL, AND MANAGEMENT OF
PROPERTY. (a) The district may construct or otherwise acquire all
works, plants, and other facilities necessary or useful to:
(1) process water impounded, developed, or otherwise
acquired; or
(2) transport water to municipalities and others for
municipal, domestic, or industrial purposes.
(b) The district may acquire, own, rent, lease, accept,
hold, or dispose of any property, or any interest in property,
including a right or easement, by purchase, exchange, gift,
assignment, condemnation, sale, lease, or otherwise, in performing
district duties or exercising district powers under this chapter.
(c) The district may manage, operate, or improve property.
(d) The district may lease or rent any land, building,
structure, or facility to achieve the purposes of this chapter.
(e) The district may sell, assign, lease, encumber,
mortgage, or otherwise dispose of property, or an interest in
property, and release or relinquish a right, title, claim, lien,
interest, easement, or demand by public or private sale, with or
without public bidding, notwithstanding any other law.
Sec. 11003.106. EMINENT DOMAIN. (a) Notwithstanding any
other law, this section applies in addition to any other authority
granted by this chapter or other law.
(b) Subject to the limitation in Subsection (d), if the
district contracts under this chapter with a municipality or other
political subdivision of this state to supply water from any public
or private source, the district may exercise the power of eminent
domain to acquire the fee simple title to or other interest in land,
easements, or other private property located inside the district or
not more than 130 miles from the initial boundaries of the district
for any purpose under this chapter.
(c) Section 49.222, Water Code, applies to the district's
exercise of eminent domain powers under this section.
(d) Before exercising the power of eminent domain to acquire
land, an easement, or other property, the district shall first
attempt to acquire the property by good faith negotiation.
Sec. 11003.107. REGIONAL WASTE DISPOSAL. (a) The district
may exercise any power granted by Chapter 30, Water Code, to a water
district created under Section 59, Article XVI, Texas Constitution,
including the power to collect, transport, process, treat, dispose
of, and control all municipal, domestic, industrial, or communal
waste, whether in fluid, solid, or composite state, including the
control, abatement, or reduction of any type of pollution.
(b) The powers granted to the district by Chapter 30, Water
Code, are for the purposes of conservation and development of the
natural resources of this state within the meaning of Section 59,
Article XVI, Texas Constitution.
Sec. 11003.108. AUTHORITY FOR ROAD PROJECTS; CONTRACTS.
(a) Under Section 52, Article III, Texas Constitution, the
district may acquire, construct, improve, operate, and maintain
macadamized, graveled, or paved roads, or improvements in aid of
those roads, inside or outside the district.
(b) The district may enter into a contract for a road
project in the manner provided by Subchapter I, Chapter 49, Water
Code, for construction work.
Sec. 11003.109. WATER CONTROL AND STORAGE PROJECTS.
(a) The district may construct, acquire, improve, enlarge,
extend, repair, or maintain dams, levees, walls, dikes,
embankments, canals, reservoirs, lakes, or other improvements as
necessary to control, store, or preserve water in the district for
any useful purpose.
(b) The district may overflow and inundate district lands
and other district property in the district.
(c) A project authorized by this section is subject to all
applicable permitting and regulatory requirements.
Sec. 11003.110. CERTIFICATE OF CONVENIENCE AND NECESSITY.
(a) The district may pay out of bond proceeds or other available
district money all expenses, including legal, engineering, and
other fees, related to obtaining a new certificate of convenience
and necessity under Chapter 13, Water Code, authorizing the
district to provide retail water or sewer service inside or outside
the district.
(b) The district may pay out of bond proceeds or other
available district money all expenses, including the purchase
price, related to acquiring certificate of convenience and
necessity rights from another retail public utility to allow the
district to provide retail water or sewer service in the district.
Sec. 11003.111. CONTRACT WITH POLITICAL SUBDIVISION FOR
WATER OR SEWER SERVICES. (a) The district may enter into a
contract to allow a political subdivision to provide retail water
or sewer service in the district. The contract may contain terms
the board considers desirable, fair, and advantageous to the
district.
(b) The contract may provide that the district will
construct or acquire and convey or lease to the political
subdivision a water supply or treatment system, a water
distribution system, or a sanitary sewage collection or treatment
system, as necessary to provide water or sewer service in the
district.
(c) The district may use bond proceeds or other available
district money to pay for its obligations and for services and
facilities provided under the contract.
(d) If the contract requires the district to make payments
from taxes other than operation and maintenance taxes, the contract
is subject to Section 49.108, Water Code.
[Sections 11003.112-11003.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 11003.151. ELECTIONS REGARDING TAXES OR BONDS.
(a) The district may issue, without an election, bonds and other
obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 11003.153.
(b) The district must hold an election in the manner
provided by Chapters 49 and 54, Water Code, to obtain voter approval
before the district may impose an ad valorem tax or issue bonds
payable from ad valorem taxes.
(c) The district may not issue bonds payable from ad valorem
taxes to finance a road project unless the issuance is approved by a
vote of a two-thirds majority of the district voters voting at an
election held for that purpose.
Sec. 11003.152. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held under Section 11003.151, the
district may impose an operation and maintenance tax on taxable
property in the district in accordance with Section 49.107, Water
Code.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
(c) Section 49.107(f), Water Code, does not apply to
reimbursements for projects constructed or acquired under Section
11003.103.
Sec. 11003.153. CONTRACT TAXES. (a) In accordance with
Section 49.108, Water Code, the district may impose a tax other than
an operation and maintenance tax and use the revenue derived from
the tax to make payments under a contract after the provisions of
the contract have been approved by a majority of the district voters
voting at an election held for that purpose.
(b) A contract approved by the district voters may contain a
provision stating that the contract may be modified or amended by
the board without further voter approval.
[Sections 11003.154-11003.200 reserved for expansion]
SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS
Sec. 11003.201. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. (a) The district may issue bonds or other
obligations payable wholly or partly from ad valorem taxes, impact
fees, revenue, including revenue received by the district under
Chapter 311, Tax Code, or Chapter 380, Local Government Code,
contract payments, assessments, grants, or other district money, or
any combination of those sources, to pay for any authorized
district purpose.
(b) In addition to the other powers granted to the district
by this chapter, the district has the powers of an issuer under
Chapter 1371, Government Code, with regard to the issuance of
obligations.
Sec. 11003.202. TAXES FOR BONDS. At the time the district
issues bonds payable wholly or partly from ad valorem taxes, the
board shall provide for the annual imposition of a continuing
direct ad valorem tax, without limit as to rate or amount, while all
or part of the bonds are outstanding as required and in the manner
provided by Sections 54.601 and 54.602, Water Code.
Sec. 11003.203. BONDS FOR ROAD PROJECTS. At the time of
issuance, the total principal amount of bonds or other obligations
issued or incurred to finance road projects and payable from ad
valorem taxes may not exceed one-fourth of the assessed value of the
real property in the district.
SECTION 2. The West Texas Water Supply District initially
includes all the territory contained in the following area:
BEING 20 acres of land situated in Section 48, Block 41, T-1-S, and
Section 1, Block 41, T-2-S, T&P RR Co. Survey, Midland County,
Texas, Boundary Being More Fully Described By Metes and Bounds As
Follows:
BEGINNING at (Y=10,675,907.69', and X= 1,702,572.75') a 1/2" Iron
rod with plastic cap marked "LCA ODESSA TX" set at an interior
corner of a 91.466 acre tract as described in Volume 1145, Page 201,
Midland County Deed Records and being the east corner of this tract,
whence a 1/2" Iron pipe and a large set stone found at the southeast
corner of said Section 48 and the northeast corner of said Section 1
bears N 3423'26" W, a distance of 308.35 feet and N 7459'33" E, a
distance of 1424.53 feet;
THENCE S 5530'34" W with a southerly line of said 91.466 acre tract,
a distance of 99.59 feet to a 1/2" Iron rod with plastic marked "LCA
ODESSA TX" set at the most westerly corner of said 91.466 acre tract
and being an interior corner of this tract, whence a found 3/8" Iron
rod with plastic cap marked "HOWELL" bears S 7614'W, a distance of
1.24 feet;
THENCE S 3440'37" E with the west line of said 91.466 acre tract, a
distance of 299.97 feet to a 1/2" iron rod with plastic cap marked
"LCA ODESSA TX" set for the most easterly corner of this tract;
THENCE S 5530'34" W, a distance of 867.04 feet to a 1/2" Iron rod
with plastic cap marked "LCA ODESSA TX" set at the most southerly
corner of this tract:
THENCE N 3423'26" W, a distance of 933.19 feet to a 1/2" Iron rod
with plastic marked "LCA ODESSA TX" set for the most northerly
corner of this tract;
THENCE N 5530'34" E, at a distance of 46.29 feet pass the north line
of Section 1, Block 41, T-2-S and the south line of Section 48,
Block 41, T-1-S, continuing on for a total distance of 965.13 feet
to a 1/2" Iron rod with plastic cap marked "LCA ODESSA TX" set in the
west line of said 91.466 acre tract and being the most northerly
corner of this tract.
THENCE S 3423'26" E with the west line of said 91.466 acre tract, at
a distance of 324.87 feet pass the south line of said Section 48 and
the north line of said Section 1, continuing on for a total distance
of 633.22 feet to the Point of Beginning, containing 20.00 acres of
land, more or less.
Bearings, distances and coordinates are relative to the Texas
Coordinate System, 1983 NAD, Central Zone, with a combined grid
factor of 0.999883498 and a theta angle of -0059'17 at City of
Midland GPS Control Monument "191/1788". Acreage is average
horizontal surface.
SECTION 3. (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.
SECTION 4. 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.