| 1 | 1 | | S.B. No. 794 |
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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 composition of the board of directors of the Central |
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| 6 | 6 | | Colorado River Authority. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Subsections (a) and (c), Section 4, Chapter 338, |
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| 9 | 9 | | General Laws, Acts of the 44th Legislature, Regular Session, 1935, |
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| 10 | 10 | | are amended to read as follows: |
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| 11 | 11 | | (a) The powers, rights, privileges and functions of the |
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| 12 | 12 | | District shall be exercised by a board of five [nine] directors |
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| 13 | 13 | | (herein called the Board), all of whom shall be residents of and |
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| 14 | 14 | | freehold property taxpayers in the State of Texas and shall be |
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| 15 | 15 | | residents of the District herein created, said five [nine] |
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| 16 | 16 | | directors of the Board to be appointed by the Governor of the State |
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| 17 | 17 | | of Texas and confirmed by the Senate of Texas. Provided that no |
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| 18 | 18 | | person shall be eligible for such appointment if he has during the |
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| 19 | 19 | | preceding three years before his appointment been employed by an |
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| 20 | 20 | | electric power and light company, gas company, telephone company, |
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| 21 | 21 | | or any other utility company of any kind or character whatsoever. |
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| 22 | 22 | | Directors are appointed for staggered terms of six years with one or |
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| 23 | 23 | | two [three] directors' terms expiring on February 1 of each |
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| 24 | 24 | | odd-numbered year. At the expiration of the term of any director, |
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| 25 | 25 | | another director shall be appointed by the Governor. Each director |
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| 26 | 26 | | shall hold office until the expiration of the term for which he was |
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| 27 | 27 | | appointed and thereafter until his successor shall have been |
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| 28 | 28 | | appointed and qualified, unless sooner removed as in this Act |
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| 29 | 29 | | provided. |
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| 30 | 30 | | (c) Until the adoption of by-laws fixing the time and place |
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| 31 | 31 | | of regular meetings and the manner in which special meetings may be |
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| 32 | 32 | | called, meetings of the Board shall be held at such times and places |
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| 33 | 33 | | as a majority [five] of all the directors may designate in writing. |
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| 34 | 34 | | A majority of the membership of the Board constitutes [Five |
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| 35 | 35 | | directors shall constitute] a quorum at any meeting, and, except as |
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| 36 | 36 | | otherwise provided in this Act, or in the by-laws, all actions may |
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| 37 | 37 | | be taken by the affirmative vote of a majority of the directors |
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| 38 | 38 | | present at any such meeting, except that no contract which involves |
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| 39 | 39 | | an amount greater than Ten Thousand ($10,000.00) Dollars, or which |
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| 40 | 40 | | is to run for a longer period than a year, and no bonds, notes or |
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| 41 | 41 | | other evidence of indebtedness and no amendment of the by-laws |
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| 42 | 42 | | shall be valid unless authorized or ratified by the affirmative |
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| 43 | 43 | | vote of at least a majority of the entire membership of the Board |
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| 44 | 44 | | [five directors]. |
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| 45 | 45 | | SECTION 2. Sections 6, 11, and 15, Chapter 338, General |
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| 46 | 46 | | Laws, Acts of the 44th Legislature, Regular Session, 1935, are |
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| 47 | 47 | | amended to read as follows: |
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| 48 | 48 | | Sec. 6. The moneys of the District shall be disbursed only |
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| 49 | 49 | | on checks, drafts, orders or other instruments signed by such |
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| 50 | 50 | | persons as shall be authorized to sign the same by the by-laws, or |
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| 51 | 51 | | resolution concurred in by not less than a majority of the entire |
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| 52 | 52 | | membership of the Board [five directors]. The General Manager, the |
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| 53 | 53 | | Treasurer and all other officers, agents and employees of the |
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| 54 | 54 | | District who shall be charged with the collection, custody or |
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| 55 | 55 | | payment of any funds of the District shall give bond conditioned |
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| 56 | 56 | | upon the faithful performance of their duties and an accounting for |
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| 57 | 57 | | all funds and property of the District coming into their respective |
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| 58 | 58 | | hands, each of which bonds shall be in form and amount and with a |
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| 59 | 59 | | surety (which shall be a surety company authorized to do business in |
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| 60 | 60 | | the State of Texas) approved by the Board, and the premiums on such |
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| 61 | 61 | | bonds shall be paid by the District and charged as an operating |
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| 62 | 62 | | expense. |
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| 63 | 63 | | Sec. 11. The District shall have power and is hereby |
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| 64 | 64 | | authorized to issue, from time to time, bonds as herein authorized |
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| 65 | 65 | | for any corporate purpose, not to exceed Five Hundred Thousand |
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| 66 | 66 | | ($500,000.00) Dollars, in aggregate principal amount. Any |
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| 67 | 67 | | additional amount of bonds must be authorized by an Act of the |
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| 68 | 68 | | Legislature. Such bonds may either be (1) sold for cash, at public |
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| 69 | 69 | | or private sale, at such price or prices as the Board shall |
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| 70 | 70 | | determine, provided that the interest cost of the money received |
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| 71 | 71 | | therefor, computed to maturity in accordance with standard bond |
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| 72 | 72 | | tables in general use by banks and insurance companies, shall not |
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| 73 | 73 | | exceed six (6%) per centum per annum, or (2) may be issued on such |
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| 74 | 74 | | terms as the Board shall determine in exchange for property of any |
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| 75 | 75 | | kind, real, personal, or mixed or any interest therein which the |
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| 76 | 76 | | Board shall determine in exchange for property of any kind, real, |
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| 77 | 77 | | personal or mixed or any interest therein which the Board shall deem |
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| 78 | 78 | | necessary or convenient for any such corporate purpose, or (3) may |
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| 79 | 79 | | be issued in exchange for like principal amounts of other |
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| 80 | 80 | | obligations of the District, matured or unmatured. The proceeds of |
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| 81 | 81 | | sale of such bonds shall be deposited in such bank or banks or trust |
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| 82 | 82 | | company or trust companies, and shall be paid out pursuant to such |
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| 83 | 83 | | terms and conditions, as may be agreed upon between the District and |
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| 84 | 84 | | the purchasers of such bonds. All such bonds shall be authorized by |
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| 85 | 85 | | resolution of the Board concurred in by at least a majority of the |
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| 86 | 86 | | entire membership of the Board [five of the members thereof], and |
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| 87 | 87 | | shall bear such date or dates, mature at such time or times, bear |
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| 88 | 88 | | interest at such rate or rates (not exceeding six (6%) per centum |
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| 89 | 89 | | per annum) payable annually or semiannually, be in such |
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| 90 | 90 | | denominations, be in such form, either coupon or registered, carry |
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| 91 | 91 | | such registration privileges as to principal only or as to both |
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| 92 | 92 | | principal and interest, and as to exchange of coupon bonds for |
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| 93 | 93 | | registered bonds or vice versa, and exchange of bonds of one |
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| 94 | 94 | | denomination for bonds of other denominations, be executed in such |
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| 95 | 95 | | manner and be payable at such place or places within or without the |
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| 96 | 96 | | State of Texas, as such resolution or resolutions may provide. Any |
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| 97 | 97 | | resolution or resolutions authorizing any bonds may contain |
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| 98 | 98 | | provisions, which shall be part of the contract between the |
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| 99 | 99 | | District and the holders thereof from time to time (a) reserving the |
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| 100 | 100 | | right to redeem such bonds at such time or times, in such amounts |
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| 101 | 101 | | and at such prices, not exceeding one hundred five (105%) per centum |
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| 102 | 102 | | of the principal amount thereof, plus accrued interest, as may be |
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| 103 | 103 | | provided; (b) providing for the setting aside of sinking funds or |
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| 104 | 104 | | reserve funds and the regulation and disposition thereof; (c) |
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| 105 | 105 | | pledging to secure the payment of the principal of and interest on |
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| 106 | 106 | | such bonds and of the sinking fund or reserve fund payments agreed |
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| 107 | 107 | | to be made in respect of such bonds all or any part of the gross or |
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| 108 | 108 | | net revenues thereafter received by the District in respect of the |
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| 109 | 109 | | property, real, personal or mixed, to be acquired and/or |
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| 110 | 110 | | constructed with such bonds or the proceeds thereof, or all or any |
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| 111 | 111 | | part of the gross or net revenues thereafter received by the |
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| 112 | 112 | | District from whatever source derived; (d) prescribing the purposes |
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| 113 | 113 | | to which such bonds or any bonds thereafter to be issued, or the |
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| 114 | 114 | | proceeds thereof, may be applied; (e) agreeing to fix and collect |
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| 115 | 115 | | rates and charges sufficient to produce revenues adequate to pay |
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| 116 | 116 | | the items specified in subdivisions (a), (b), (c), and (d) of |
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| 117 | 117 | | Section 9 hereof, and prescribing the use and disposition of all |
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| 118 | 118 | | revenues; (f) prescribing limitations upon the issuance of |
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| 119 | 119 | | additional bonds and upon the agreements which may be made with the |
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| 120 | 120 | | purchasers and successive holders thereof; (g) with regard to the |
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| 121 | 121 | | construction, extension, improvement, reconstruction, operation, |
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| 122 | 122 | | maintenance and repair of the properties of the District and |
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| 123 | 123 | | carrying of insurance upon all or any part of said properties |
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| 124 | 124 | | covering loss or damage or loss of use and occupancy resulting from |
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| 125 | 125 | | specified risks; (h) fixing the procedure, if any, by which, if the |
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| 126 | 126 | | District shall so desire, the terms of any contract with the holders |
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| 127 | 127 | | of such bonds may be amended or abrogated, the amount of bonds the |
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| 128 | 128 | | holders of which must consent thereto, and the manner in which such |
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| 129 | 129 | | consent may be given; (i) for the execution and delivery by the |
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| 130 | 130 | | District to a bank or trust company authorized by law to accept |
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| 131 | 131 | | trusts, or to the United States of America or any officer or agency |
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| 132 | 132 | | thereof, of indentures and agreements for the benefit of the |
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| 133 | 133 | | holders of such bonds setting forth any or all of the agreements |
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| 134 | 134 | | herein authorized to be made with or for the benefit of the holders |
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| 135 | 135 | | of such bonds and such other provisions as may be customary in such |
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| 136 | 136 | | indentures or agreements; and (j) such other provisions not |
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| 137 | 137 | | inconsistent with the provisions of this Act, as the Board may |
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| 138 | 138 | | approve. |
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| 139 | 139 | | Any such resolution and any indenture or agreement entered |
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| 140 | 140 | | into pursuant thereto may provide that in the event that |
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| 141 | 141 | | (a) default shall be made in the payment of the interest on |
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| 142 | 142 | | any or all bonds when and as the same shall become due and payable, |
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| 143 | 143 | | or |
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| 144 | 144 | | (b) default shall be made in the payment of the principal of |
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| 145 | 145 | | any or all bonds when and as the same shall become due and payable, |
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| 146 | 146 | | whether at the maturity thereof, by call for redemption or |
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| 147 | 147 | | otherwise, or |
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| 148 | 148 | | (c) default shall be made in the performance of any |
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| 149 | 149 | | agreement made with the purchasers or successive holders of any |
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| 150 | 150 | | bonds. |
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| 151 | 151 | | And such default shall have continued such period, if any, as |
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| 152 | 152 | | may be prescribed by said resolution in respect thereof, the |
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| 153 | 153 | | trustee under the indenture or indentures entered into in respect |
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| 154 | 154 | | of the bonds authorized thereby, or if there shall be no such |
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| 155 | 155 | | indenture, a trustee appointed in the manner provided in such |
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| 156 | 156 | | resolution or resolutions by the holders of twenty-five (25%) per |
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| 157 | 157 | | centum in aggregate principal amount of the bonds authorized |
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| 158 | 158 | | thereby and at the time outstanding may, and upon the written |
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| 159 | 159 | | request of the holders of twenty-five (25%) per centum in aggregate |
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| 160 | 160 | | principal amount of the bonds authorized by such resolution or |
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| 161 | 161 | | resolutions at the time outstanding, shall, in his or its own name, |
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| 162 | 162 | | but for the equal and proportionate benefit of the holders of all of |
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| 163 | 163 | | such bonds; and with or without having possession thereof; |
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| 164 | 164 | | (1) by mandamus or other suit, action or proceeding at |
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| 165 | 165 | | law or in equity, enforce all rights of the holders of such bonds; |
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| 166 | 166 | | (2) bring suit upon such bonds and/or the appurtenant |
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| 167 | 167 | | coupons; |
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| 168 | 168 | | (3) by action or suit in equity, require the district |
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| 169 | 169 | | to account as if it were the trustee or an express trust for the |
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| 170 | 170 | | bondholders; |
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| 171 | 171 | | (4) by action or suit in equity, enjoin any acts or |
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| 172 | 172 | | things which may be unlawful or in violation of the rights of the |
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| 173 | 173 | | holders of such bonds; and/or |
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| 174 | 174 | | (5) after such notice to the District as such |
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| 175 | 175 | | resolution may provide, declare the principal of all such bonds due |
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| 176 | 176 | | and payable, and if all defaults shall have been made good, then |
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| 177 | 177 | | with the written consent of the holders of twenty-five (25%) per |
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| 178 | 178 | | centum in aggregate principal amount of such bonds at the time |
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| 179 | 179 | | outstanding, annul such declaration and its consequences; |
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| 180 | 180 | | provided, however, that the holders of more than a majority in |
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| 181 | 181 | | principal amount of the bonds authorized thereby and at the time |
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| 182 | 182 | | outstanding shall by instrument or instruments in writing delivered |
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| 183 | 183 | | to such trustee have the right to direct and control any and all |
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| 184 | 184 | | action taken or to be taken by such trustee under this paragraph. |
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| 185 | 185 | | Any such resolution, indenture or agreement may provide that in any |
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| 186 | 186 | | such suit, action or proceeding, any such trustee, whether or not |
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| 187 | 187 | | all of such bonds shall have been declared due and payable, and with |
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| 188 | 188 | | or without possession of any thereof, shall be entitled as of right |
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| 189 | 189 | | to the appointment of a receiver who may enter and take possession |
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| 190 | 190 | | of all or any part of the properties of the District and operate and |
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| 191 | 191 | | maintain the same, and fix, collect and receive rates and charges |
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| 192 | 192 | | sufficient to provide revenues adequate to pay the items set forth |
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| 193 | 193 | | in subparagraphs (a), (b), (c), and (d) of Section 9 hereof and the |
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| 194 | 194 | | costs and disbursements of such suit, action or proceeding and to |
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| 195 | 195 | | apply such revenues in conformity with the provisions of this Act |
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| 196 | 196 | | and the resolution or resolutions authorizing such bonds. In any |
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| 197 | 197 | | suit, action or proceeding by any such trustee, the reasonable |
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| 198 | 198 | | fees, counsel fees and expenses of such trustee and of the receiver |
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| 199 | 199 | | or receivers, if any, shall constitute taxable disbursements, and |
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| 200 | 200 | | all costs and disbursements allowed by the court shall be a first |
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| 201 | 201 | | charge upon any revenues pledged to secure the payment of such |
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| 202 | 202 | | bonds. Subject to the provisions of the Constitution of the State |
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| 203 | 203 | | of Texas, the courts of the County of Coleman shall have |
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| 204 | 204 | | jurisdiction of any such suit, action or proceeding by any such |
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| 205 | 205 | | trustee on behalf of the bondholders and of all property involved |
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| 206 | 206 | | therein. In addition to the powers hereinabove specifically |
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| 207 | 207 | | provided for, each such trustee shall have and possess all powers |
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| 208 | 208 | | necessary or appropriate for the exercise of any thereof, or |
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| 209 | 209 | | incident to the general representation of the bondholders in the |
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| 210 | 210 | | enforcement of their rights. |
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| 211 | 211 | | Before any bonds shall be sold by the District, a certified |
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| 212 | 212 | | copy of the proceedings for the issuance thereof, including the |
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| 213 | 213 | | form of such bonds, together with any other information which the |
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| 214 | 214 | | Attorney General of the State of Texas may require, shall be |
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| 215 | 215 | | submitted to the Attorney General, and if he shall find that such |
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| 216 | 216 | | bonds have been issued in accordance with law, and if he shall |
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| 217 | 217 | | approve such bonds, he shall execute a certificate to that effect |
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| 218 | 218 | | which shall be filed in the office of the Comptroller of the State |
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| 219 | 219 | | of Texas and be recorded in a record kept for that purpose. No bonds |
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| 220 | 220 | | shall be issued until the same shall have been registered by the |
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| 221 | 221 | | Comptroller, who shall so register the same if the Attorney General |
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| 222 | 222 | | shall have filed with the Comptroller his certificate approving the |
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| 223 | 223 | | bonds and the proceedings for the issuance thereof as hereinabove |
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| 224 | 224 | | provided. |
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| 225 | 225 | | All bonds approved by the Attorney General as aforesaid, and |
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| 226 | 226 | | registered by the Comptroller as aforesaid, and issued in |
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| 227 | 227 | | accordance with the proceedings so approved, shall be valid and |
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| 228 | 228 | | binding obligation of the District and shall be incontestable for |
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| 229 | 229 | | any cause from and after the time of such registration. |
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| 230 | 230 | | Sec. 15. Nothing in this Act shall be construed as |
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| 231 | 231 | | authorizing the District, and it shall not be authorized to |
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| 232 | 232 | | mortgage or otherwise encumber any of its property of any kind, |
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| 233 | 233 | | real, personal or mixed, or any interest thereon, or to acquire any |
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| 234 | 234 | | such property or interest subject to a mortgage or conditional |
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| 235 | 235 | | sale, provided that this section shall not be construed as |
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| 236 | 236 | | preventing the pledging of the revenues of the District as herein |
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| 237 | 237 | | authorized. Nothing in this Act shall be construed as authorizing |
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| 238 | 238 | | the sale, lease or other disposition of any such property or |
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| 239 | 239 | | interest by the District, or any receiver of any of its properties |
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| 240 | 240 | | or through any court proceeding or otherwise, provided, however, |
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| 241 | 241 | | that the District may sell for cash any such property or interest in |
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| 242 | 242 | | an aggregate value not exceeding the sum of Fifty Thousand |
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| 243 | 243 | | ($50,000.00) Dollars, in any one year if the Board, by the |
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| 244 | 244 | | affirmative vote of a two-thirds majority of the entire membership |
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| 245 | 245 | | of the Board [six of the members thereof] shall have determined that |
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| 246 | 246 | | the same is not necessary or convenient to the business of the |
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| 247 | 247 | | District and shall have approved the terms of any such sale, it |
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| 248 | 248 | | being the intention of this Act that except by sale as in this |
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| 249 | 249 | | section expressly authorized, no such property or interest except |
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| 250 | 250 | | personal property shall ever come into the ownership or control, |
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| 251 | 251 | | directly or indirectly, of any person, firm or corporation other |
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| 252 | 252 | | than a public authority created under the laws of the State of |
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| 253 | 253 | | Texas. All property of the District except personal property shall |
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| 254 | 254 | | be at all times exempted from forced sale, and nothing in this Act |
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| 255 | 255 | | contained shall authorize the sale of any of the property of the |
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| 256 | 256 | | District except personal property under any judgment rendered in |
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| 257 | 257 | | any suit, and such sales are hereby prohibited and forbidden. |
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| 258 | 258 | | SECTION 3. (a) The change in law made by this Act does not |
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| 259 | 259 | | affect the term of a member of the board of directors of the Central |
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| 260 | 260 | | Colorado River Authority serving on the effective date of this Act. |
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| 261 | 261 | | Except as provided by Section 4 of this Act, members appointed to |
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| 262 | 262 | | fill vacancies occurring on or after the effective date of this Act |
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| 263 | 263 | | must be appointed in accordance with Section 4, Chapter 338, |
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| 264 | 264 | | General Laws, Acts of the 44th Legislature, Regular Session, 1935, |
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| 265 | 265 | | as amended by this Act. |
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| 266 | 266 | | (b) The change in law made by this Act does not prohibit a |
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| 267 | 267 | | person who is a member of the Central Colorado River Authority board |
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| 268 | 268 | | of directors before the effective date of this Act from being |
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| 269 | 269 | | appointed as a member of the board of directors under the new |
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| 270 | 270 | | composition of the board of directors if the person is otherwise |
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| 271 | 271 | | qualified. |
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| 272 | 272 | | SECTION 4. (a) In this section, "board" means the board of |
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| 273 | 273 | | directors of the Central Colorado River Authority. |
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| 274 | 274 | | (b) To maintain a board with an odd number of directors |
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| 275 | 275 | | during the transition from a board of nine to a board of five |
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| 276 | 276 | | directors, the governor shall make appointments to the board as |
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| 277 | 277 | | provided by Subsections (c) through (f) of this section. |
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| 278 | 278 | | (c) When the terms of members of the board expire on |
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| 279 | 279 | | February 1, 2009, the governor shall appoint one director whose |
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| 280 | 280 | | term expires February 1, 2015. |
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| 281 | 281 | | (d) When the terms of members of the board expire on |
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| 282 | 282 | | February 1, 2011, the governor shall appoint one director whose |
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| 283 | 283 | | term expires February 1, 2017. |
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| 284 | 284 | | (e) When the terms of members of the board expire on |
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| 285 | 285 | | February 1, 2013, the governor shall appoint: |
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| 286 | 286 | | (1) one director whose term expires February 1, 2015; |
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| 287 | 287 | | (2) one director whose term expires February 1, 2017; |
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| 288 | 288 | | and |
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| 289 | 289 | | (3) one director whose term expires February 1, 2019. |
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| 290 | 290 | | (f) A member of the board appointed on or after February 1, |
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| 291 | 291 | | 2017, shall be appointed to a term as provided by Section 4, Chapter |
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| 292 | 292 | | 338, General Laws, Acts of the 44th Legislature, Regular Session, |
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| 293 | 293 | | 1935, as amended by this Act. |
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| 294 | 294 | | SECTION 5. (a) The legal notice of the intention to |
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| 295 | 295 | | introduce this Act, setting forth the general substance of this |
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| 296 | 296 | | Act, has been published as provided by law, and the notice and a |
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| 297 | 297 | | copy of this Act have been furnished to all persons, agencies, |
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| 298 | 298 | | officials, or entities to which they are required to be furnished |
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| 299 | 299 | | under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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| 300 | 300 | | Government Code. |
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| 301 | 301 | | (b) The governor, one of the required recipients, has |
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| 302 | 302 | | submitted the notice and Act to the Texas Commission on |
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| 303 | 303 | | Environmental Quality. |
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| 304 | 304 | | (c) The Texas Commission on Environmental Quality has filed |
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| 305 | 305 | | its recommendations relating to this Act with the governor, the |
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| 306 | 306 | | lieutenant governor, and the speaker of the house of |
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| 307 | 307 | | representatives within the required time. |
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| 308 | 308 | | (d) All requirements of the constitution and laws of this |
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| 309 | 309 | | state and the rules and procedures of the legislature with respect |
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| 310 | 310 | | to the notice, introduction, and passage of this Act are fulfilled |
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| 311 | 311 | | and accomplished. |
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| 312 | 312 | | SECTION 6. This Act takes effect immediately if it receives |
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| 313 | 313 | | a vote of two-thirds of all the members elected to each house, as |
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| 314 | 314 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 315 | 315 | | Act does not receive the vote necessary for immediate effect, this |
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| 316 | 316 | | Act takes effect September 1, 2009. |
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| 317 | 317 | | ______________________________ ______________________________ |
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| 318 | 318 | | President of the Senate Speaker of the House |
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| 319 | 319 | | I hereby certify that S.B. No. 794 passed the Senate on |
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| 320 | 320 | | April 8, 2009, by the following vote: Yeas 31, Nays 0. |
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| 321 | 321 | | ______________________________ |
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| 322 | 322 | | Secretary of the Senate |
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| 323 | 323 | | I hereby certify that S.B. No. 794 passed the House on |
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| 324 | 324 | | May 26, 2009, by the following vote: Yeas 142, Nays 0, one |
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| 325 | 325 | | present not voting. |
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| 326 | 326 | | ______________________________ |
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| 327 | 327 | | Chief Clerk of the House |
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| 328 | 328 | | Approved: |
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| 329 | 329 | | ______________________________ |
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| 330 | 330 | | Date |
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| 331 | 331 | | ______________________________ |
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| 332 | 332 | | Governor |
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