| 1 | 1 | | S.B. No. 715 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the North Texas Municipal Water District. |
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| 6 | 6 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 7 | 7 | | SECTION 1. Section 1a, Chapter 62, Acts of the 52nd |
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| 8 | 8 | | Legislature, Regular Session, 1951, is amended by adding |
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| 9 | 9 | | Subdivision (13) to read as follows: |
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| 10 | 10 | | (13) "Bonds" includes negotiable or nonnegotiable |
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| 11 | 11 | | bonds, notes, certificates, contractual obligations, or other |
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| 12 | 12 | | obligations of the district. |
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| 13 | 13 | | SECTION 2. Subsection (b), Section 3, Chapter 62, Acts of |
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| 14 | 14 | | the 52nd Legislature, Regular Session, 1951, is amended to read as |
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| 15 | 15 | | follows: |
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| 16 | 16 | | (b) Each director shall receive a fee of $150 for each day |
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| 17 | 17 | | the director spends performing the duties of a director, including |
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| 18 | 18 | | participating in board and committee meetings, other activities |
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| 19 | 19 | | involving substantive deliberation of District business, and |
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| 20 | 20 | | pertinent educational programs [$50 for attending each meeting of |
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| 21 | 21 | | the board and $20 per day devoted to the business of the District |
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| 22 | 22 | | other than attending board meetings], but not more than $7,200 |
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| 23 | 23 | | [$1,200] shall be paid to any director in one calendar year |
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| 24 | 24 | | [therefor]. Each director shall be entitled to reimbursement for |
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| 25 | 25 | | actual expenses incurred in attending to District business provided |
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| 26 | 26 | | the service and expense are expressly approved by the Board. |
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| 27 | 27 | | SECTION 3. Section 4, Chapter 62, Acts of the 52nd |
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| 28 | 28 | | Legislature, Regular Session, 1951, is amended to read as follows: |
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| 29 | 29 | | Sec. 4. The board of directors shall elect from its number a |
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| 30 | 30 | | president and a vice-president of the District, and such other |
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| 31 | 31 | | officers as in the judgment of the board are necessary. The |
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| 32 | 32 | | president shall be the [chief executive officer of the District and |
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| 33 | 33 | | the] presiding officer of the board, and shall have the same right |
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| 34 | 34 | | to vote as any other director. The vice-president shall perform all |
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| 35 | 35 | | duties and exercise all powers conferred by this Act upon the |
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| 36 | 36 | | president when the president is absent or fails or declines to act. |
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| 37 | 37 | | The board shall also appoint a secretary and a treasurer who may or |
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| 38 | 38 | | may not be members of the board, and it may combine those offices. |
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| 39 | 39 | | The treasurer shall give bond in such amount as may be required by |
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| 40 | 40 | | the board of directors, but in no event less than $100,000.00. The |
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| 41 | 41 | | condition of such bond shall be that he will faithfully account for |
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| 42 | 42 | | all money which shall come into his custody as treasurer of the |
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| 43 | 43 | | District. The board shall appoint an executive director, who shall |
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| 44 | 44 | | employ or contract with all necessary engineers, attorneys and |
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| 45 | 45 | | other employees. The board shall adopt a seal for the District. |
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| 46 | 46 | | SECTION 4. Section 27, Chapter 62, Acts of the 52nd |
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| 47 | 47 | | Legislature, Regular Session, 1951, is amended by amending |
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| 48 | 48 | | Subsections (a), (d), (e), (f), (h), (j), and (k) and adding |
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| 49 | 49 | | Subsection (h-1) to read as follows: |
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| 50 | 50 | | (a) The district has the functions, powers, authority, |
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| 51 | 51 | | rights, and duties necessary to accomplish the purposes for which |
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| 52 | 52 | | the district was created and the purposes authorized by Section 59, |
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| 53 | 53 | | Article XVI, Texas Constitution, this Act, or any other law. In |
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| 54 | 54 | | addition to all other powers, the district is authorized to |
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| 55 | 55 | | purchase, construct, acquire, own, operate, maintain, repair, |
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| 56 | 56 | | improve, or extend inside and outside its boundaries, at any |
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| 57 | 57 | | location whatsoever, in the sole discretion of the district, any |
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| 58 | 58 | | and all property, works, improvements, facilities, plants, |
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| 59 | 59 | | equipment, and appliances incident, helpful, or necessary to: |
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| 60 | 60 | | (1) provide[, pursuant to the provisions of Chapters 5 |
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| 61 | 61 | | and 6, Water Code, as amended,] for the control, storage, |
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| 62 | 62 | | preservation, transmission, treatment, and distribution and use of |
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| 63 | 63 | | storm water and floodwater, the water of rivers and streams, and |
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| 64 | 64 | | underground water, for irrigation, power, hydroelectric, and all |
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| 65 | 65 | | other useful purposes, and to supply water for municipal, domestic, |
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| 66 | 66 | | power, hydroelectric, industrial, oil flooding, mining, and |
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| 67 | 67 | | commercial uses and purposes and all other beneficial uses and |
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| 68 | 68 | | purposes; |
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| 69 | 69 | | (2) collect, transport, process, treat, dispose of, |
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| 70 | 70 | | and control all municipal, domestic, industrial, or communal waste |
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| 71 | 71 | | whether in fluid, solid, or composite state, including specifically |
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| 72 | 72 | | the control, abatement, or reduction of all types of pollution; and |
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| 73 | 73 | | it is hereby found and determined by the legislature that all of the |
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| 74 | 74 | | aforesaid purposes are for the conservation and development of the |
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| 75 | 75 | | natural resources of the state within the meaning of Article XVI, |
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| 76 | 76 | | Section 59 of the Texas Constitution. |
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| 77 | 77 | | (d) The district is a "district" under the Regional Waste |
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| 78 | 78 | | Disposal Act, as amended (Chapter 30 [25], Water Code), and all |
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| 79 | 79 | | provisions of said Act are applicable to this district except to the |
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| 80 | 80 | | extent of any conflict with this Act, in which case the provisions |
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| 81 | 81 | | of this Act shall prevail. |
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| 82 | 82 | | (e) All cities, public agencies, and other political |
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| 83 | 83 | | subdivisions are authorized to contract with this district in any |
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| 84 | 84 | | manner authorized by the Regional Waste Disposal Act, as amended |
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| 85 | 85 | | (Chapter 30 [25], Water Code), provided that any city is authorized |
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| 86 | 86 | | to contract with this district in the manner authorized by Section |
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| 87 | 87 | | 30.030(c), Water Code [25.030(c) of the Regional Waste Disposal |
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| 88 | 88 | | Act]. |
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| 89 | 89 | | (f) The [It is further specifically provided that the] |
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| 90 | 90 | | district and all cities, public agencies, and other political |
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| 91 | 91 | | subdivisions shall have all of such rights, powers, and authority |
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| 92 | 92 | | with respect to the control, storage, preservation, transmission, |
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| 93 | 93 | | treatment, and disposition of storm water and floodwater, and the |
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| 94 | 94 | | water of rivers and streams, and underground water as are granted, |
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| 95 | 95 | | permitted, and authorized by the Regional Waste Disposal Act, as |
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| 96 | 96 | | amended (Chapter 30 [25], Water Code), with respect to waste, waste |
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| 97 | 97 | | disposal systems, and treatment facilities. Subsection (e) of this |
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| 98 | 98 | | section shall be applicable to contracts made pursuant to this |
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| 99 | 99 | | subsection. |
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| 100 | 100 | | (h) The district may issue bonds to borrow money for any |
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| 101 | 101 | | corporate purpose, including the purposes [For the purpose of |
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| 102 | 102 | | providing funds to acquire, purchase, construct, improve, enlarge, |
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| 103 | 103 | | and equip any property, buildings, structures, or other facilities |
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| 104 | 104 | | for any purpose or power] authorized by this section. The[, the] |
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| 105 | 105 | | board of directors of the district may issue [revenue] bonds from |
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| 106 | 106 | | time to time and in one or more issues or series, to be payable from |
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| 107 | 107 | | and secured by liens on and pledges of all or any part of any of the |
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| 108 | 108 | | revenues, income, or receipts derived by the district from its |
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| 109 | 109 | | ownership, operation, lease, or sale of any [such] property, |
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| 110 | 110 | | buildings, structures, or facilities, including the proceeds or |
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| 111 | 111 | | revenues from contracts with any person, firm, corporation, city, |
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| 112 | 112 | | public agency, or other political subdivision. The [Such] bonds |
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| 113 | 113 | | may be issued in certificated form or uncertificated book-entry |
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| 114 | 114 | | form to mature serially or otherwise within not to exceed 50 years |
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| 115 | 115 | | from their date, and provision may be made for the subsequent |
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| 116 | 116 | | issuance of additional parity bonds, or subordinate lien bonds, |
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| 117 | 117 | | under any terms or conditions that may be set forth in the |
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| 118 | 118 | | resolution authorizing the issuance of the bonds. The [Such] |
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| 119 | 119 | | bonds, and any interest coupons appertaining thereto, to the extent |
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| 120 | 120 | | issued in negotiable form, are and shall constitute negotiable |
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| 121 | 121 | | instruments within the meaning and for all purposes of the Texas |
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| 122 | 122 | | Business & Commerce [Uniform Commercial] Code, provided that the |
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| 123 | 123 | | bonds may be issued registrable as to principal alone or as to both |
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| 124 | 124 | | principal and interest, and shall be executed, and may be made |
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| 125 | 125 | | redeemable prior to maturity, and may be issued in such form, |
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| 126 | 126 | | denominations, and manner, and under such terms, conditions, and |
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| 127 | 127 | | details, and may be sold in such manner, including through a public |
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| 128 | 128 | | or private sale, at such price, and under such terms, and said bonds |
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| 129 | 129 | | shall bear interest at such rates, including fixed, variable, |
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| 130 | 130 | | floating, adjustable, or another method of computation, all as |
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| 131 | 131 | | shall be determined and provided in the resolution authorizing the |
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| 132 | 132 | | issuance of the bonds. In the bond resolution, the district may |
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| 133 | 133 | | authorize one or more designated officers or employees of the |
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| 134 | 134 | | district to act on behalf of the district, with the same force and |
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| 135 | 135 | | effect as if the action had been taken by the district, in selling |
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| 136 | 136 | | and delivering the bonds and setting the dates, prices, interest |
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| 137 | 137 | | rates, interest payment periods, and other procedures relating to |
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| 138 | 138 | | the bonds, as specified in the bond resolution. If so provided in |
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| 139 | 139 | | the bond resolution, the proceeds from the sale of the bonds may be |
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| 140 | 140 | | used for paying interest on the bonds during the period of the |
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| 141 | 141 | | acquisition or construction of any facilities to be provided |
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| 142 | 142 | | through the issuance of the bonds, for paying expenses of operation |
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| 143 | 143 | | and maintenance of facilities, for creating a reserve fund for the |
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| 144 | 144 | | payment of the principal of and interest on the bonds, and for |
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| 145 | 145 | | creating any other funds, and such proceeds may be placed on time |
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| 146 | 146 | | deposit or invested, until needed, all to the extent and in the |
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| 147 | 147 | | manner provided in the bond resolution. The district may pledge all |
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| 148 | 148 | | or any part of its revenues, income, or receipts from fees, rentals, |
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| 149 | 149 | | rates, charges, and contract proceeds or payments to the payment of |
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| 150 | 150 | | the bonds, including the payment of principal, interest, and any |
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| 151 | 151 | | other amounts required or permitted in connection with the bonds. |
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| 152 | 152 | | The pledged fees, rentals, rates, charges, proceeds, or payments |
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| 153 | 153 | | shall be fixed and collected in amounts that will be at least |
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| 154 | 154 | | sufficient, together with any other pledged resources, to provide |
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| 155 | 155 | | for all payments of principal, interest, and any other amounts |
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| 156 | 156 | | required in connection with the bonds, and, to the extent required |
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| 157 | 157 | | by the resolution authorizing the issuance of the bonds, to provide |
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| 158 | 158 | | for the payment of expenses in connection with the bonds, and |
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| 159 | 159 | | operation, maintenance, and other expenses in connection with the |
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| 160 | 160 | | aforesaid facilities. The [Said] bonds may be additionally secured |
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| 161 | 161 | | by mortgages or deeds of trust on any real property owned or to be |
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| 162 | 162 | | acquired by the district, and by chattel mortgages or liens on any |
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| 163 | 163 | | personal property appurtenant to such real property; and the board |
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| 164 | 164 | | of directors of the district may authorize the execution of trust |
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| 165 | 165 | | indentures, mortgages, deeds of trust, or other forms of |
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| 166 | 166 | | encumbrances to evidence same. Also, the district may pledge to the |
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| 167 | 167 | | payment of the bonds all or any part of any grant, donation, |
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| 168 | 168 | | revenues, or income received or to be received from the United |
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| 169 | 169 | | States government or any other public or private source, whether |
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| 170 | 170 | | pursuant to an agreement or otherwise. |
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| 171 | 171 | | (h-1) If funds are not available to meet any need of the |
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| 172 | 172 | | district and the board of directors of the district declares an |
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| 173 | 173 | | emergency, the board may issue bond anticipation notes or revenue |
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| 174 | 174 | | anticipation notes, or both bond anticipation notes and revenue |
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| 175 | 175 | | anticipation notes, to borrow the money needed by the district. |
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| 176 | 176 | | Bond anticipation notes may be issued for any purpose for which |
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| 177 | 177 | | bonds of the district may be issued. The district may enter into an |
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| 178 | 178 | | agreement with a purchaser of bond anticipation notes to use the |
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| 179 | 179 | | proceeds from the sale of any bond to pay principal, interest, or |
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| 180 | 180 | | redemption price on the bond anticipation notes. Revenue |
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| 181 | 181 | | anticipation notes may be issued for any purpose for which the |
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| 182 | 182 | | district is authorized to expend revenue of the district. The |
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| 183 | 183 | | district may enter into an agreement with a purchaser of revenue |
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| 184 | 184 | | anticipation notes to adopt, enforce, and collect charges, fees, |
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| 185 | 185 | | rentals, and other amounts for the district's facilities and |
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| 186 | 186 | | services that are sufficient to pay the principal of, any |
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| 187 | 187 | | redemption premium on, and interest on the revenue anticipation |
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| 188 | 188 | | notes. |
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| 189 | 189 | | (j) Chapter 1202, Government Code, applies to the issuance |
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| 190 | 190 | | of bonds by the district [All bonds issued pursuant to this section |
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| 191 | 191 | | and the appropriate proceedings authorizing their issuance shall be |
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| 192 | 192 | | submitted to the Attorney General of the State of Texas for |
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| 193 | 193 | | examination. When the bonds are to be issued to finance in whole or |
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| 194 | 194 | | in part water-using facilities, except treatment or distribution |
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| 195 | 195 | | facilities, before giving his approval the attorney general shall |
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| 196 | 196 | | be furnished a resolution from the Texas Water Rights Commission |
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| 197 | 197 | | certifying that the district is possessed of the necessary water |
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| 198 | 198 | | right authorizing it to impound and appropriate the water to be |
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| 199 | 199 | | utilized by the project. Also, if the bonds recite that they are |
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| 200 | 200 | | secured by a pledge of revenues of any contract, a copy of such |
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| 201 | 201 | | contract and the proceedings relating thereto shall be submitted to |
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| 202 | 202 | | the attorney general. If he finds that such bonds have been |
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| 203 | 203 | | authorized and any such contract has been made in accordance with |
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| 204 | 204 | | law, he shall approve the bonds and any such contract, and thereupon |
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| 205 | 205 | | the bonds shall be registered by the Comptroller of Public Accounts |
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| 206 | 206 | | of the State of Texas; and after such approval and registration, |
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| 207 | 207 | | such bonds and any such contract shall be incontestable in any court |
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| 208 | 208 | | or other forum for any reason, and shall be valid and binding |
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| 209 | 209 | | obligations in accordance with their terms for all purposes]. |
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| 210 | 210 | | (k) All bonds issued pursuant to this section are legal and |
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| 211 | 211 | | authorized investments in the same manner as provided by Section |
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| 212 | 212 | | 49.186(a), Water Code. The [for all banks, trust companies, |
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| 213 | 213 | | building and loan associations, savings and loan associations, |
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| 214 | 214 | | insurance companies of all kinds and types, and trustees, and for |
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| 215 | 215 | | all interest and sinking funds and other public funds of the State |
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| 216 | 216 | | of Texas and all agencies, subdivisions, and instrumentalities |
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| 217 | 217 | | thereof, including all counties, cities, towns, villages, school |
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| 218 | 218 | | districts, and all other kinds and types of districts, public |
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| 219 | 219 | | agencies, and bodies politic. Said] bonds also shall be eligible |
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| 220 | 220 | | and lawful security for [all] deposits of public funds in [of] the |
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| 221 | 221 | | same manner as provided by Section 49.186(b), Water Code [State of |
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| 222 | 222 | | Texas and all agencies, subdivisions, and instrumentalities |
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| 223 | 223 | | thereof, including all counties, cities, towns, villages, school |
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| 224 | 224 | | districts, and all other kinds and types of districts, public |
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| 225 | 225 | | agencies, and bodies politic, to the extent of the market value of |
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| 226 | 226 | | said bonds, when accompanied by any unmatured interest coupons |
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| 227 | 227 | | appurtenant thereto]. |
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| 228 | 228 | | SECTION 5. Chapter 62, Acts of the 52nd Legislature, |
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| 229 | 229 | | Regular Session, 1951, is amended by adding Section 28 to read as |
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| 230 | 230 | | follows: |
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| 231 | 231 | | Sec. 28. If a quorum of the board of directors of the |
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| 232 | 232 | | district cannot be assembled due to multiple deaths or injuries |
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| 233 | 233 | | resulting from a catastrophe or disaster, any directors who are |
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| 234 | 234 | | available, or the highest ranking staff member of the district if no |
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| 235 | 235 | | director is available, shall within 24 hours after the catastrophe |
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| 236 | 236 | | or disaster has ended, or as soon as practicable under the |
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| 237 | 237 | | circumstances, take any action necessary to ensure the basic |
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| 238 | 238 | | health, safety, and welfare of the customers of the district and |
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| 239 | 239 | | call for the appointment of new directors by the member cities of |
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| 240 | 240 | | the district to fill the vacancies on the board resulting from the |
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| 241 | 241 | | catastrophe or disaster. Until a quorum of the board of directors |
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| 242 | 242 | | can be assembled, any directors who are available, or the highest |
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| 243 | 243 | | ranking staff member of the district if no director is available, |
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| 244 | 244 | | may only take actions as necessary to protect the basic health, |
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| 245 | 245 | | safety, and welfare of the district's customers. The board of |
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| 246 | 246 | | directors may subsequently ratify any action taken in accordance |
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| 247 | 247 | | with this section. |
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| 248 | 248 | | SECTION 6. Subsection (c), Section 27, Chapter 62, Acts of |
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| 249 | 249 | | the 52nd Legislature, Regular Session, 1951, is repealed. |
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| 250 | 250 | | SECTION 7. (a) The legal notice of the intention to |
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| 251 | 251 | | introduce this Act, setting forth the general substance of this |
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| 252 | 252 | | Act, has been published as provided by law, and the notice and a |
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| 253 | 253 | | copy of this Act have been furnished to all persons, agencies, |
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| 254 | 254 | | officials, or entities to which they are required to be furnished |
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| 255 | 255 | | under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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| 256 | 256 | | Government Code. |
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| 257 | 257 | | (b) The governor has submitted the notice and Act to the |
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| 258 | 258 | | Texas Commission on Environmental Quality. |
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| 259 | 259 | | (c) The Texas Commission on Environmental Quality has filed |
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| 260 | 260 | | its recommendations relating to this Act with the governor, |
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| 261 | 261 | | lieutenant governor, and speaker of the house of representatives |
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| 262 | 262 | | within the required time. |
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| 263 | 263 | | (d) All requirements of the constitution and laws of this |
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| 264 | 264 | | state and the rules and procedures of the legislature with respect |
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| 265 | 265 | | to the notice, introduction, and passage of this Act are fulfilled |
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| 266 | 266 | | and accomplished. |
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| 267 | 267 | | SECTION 8. This Act takes effect immediately if it receives |
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| 268 | 268 | | a vote of two-thirds of all the members elected to each house, as |
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| 269 | 269 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 270 | 270 | | Act does not receive the vote necessary for immediate effect, this |
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| 271 | 271 | | Act takes effect September 1, 2009. |
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| 272 | 272 | | ______________________________ ______________________________ |
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| 273 | 273 | | President of the Senate Speaker of the House |
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| 274 | 274 | | I hereby certify that S.B. No. 715 passed the Senate on |
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| 275 | 275 | | April 2, 2009, by the following vote: Yeas 31, Nays 0. |
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| 276 | 276 | | ______________________________ |
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| 277 | 277 | | Secretary of the Senate |
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| 278 | 278 | | I hereby certify that S.B. No. 715 passed the House on |
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| 279 | 279 | | April 28, 2009, by the following vote: Yeas 149, Nays 0, one |
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| 280 | 280 | | present not voting. |
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| 281 | 281 | | ______________________________ |
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| 282 | 282 | | Chief Clerk of the House |
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| 283 | 283 | | Approved: |
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| 284 | 284 | | ______________________________ |
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| 285 | 285 | | Date |
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| 286 | 286 | | ______________________________ |
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| 287 | 287 | | Governor |
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