Texas 2011 - 82nd Regular

Texas House Bill HB1901 Compare Versions

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1	1	By: Kefler (Senate Sponsor - Birdwell) H.B. No. 1901
2	2	(In the Senate - Received from the House April 18, 2011;
3	3	April 20, 2011, read first time and referred to Committee on
4	4	Natural Resources; May 4, 2011, reported favorably by the
5	5	following vote: Yeas 9, Nays 0; May 4, 2011, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the applicability of provisions concerning bond
11	11	approval by the Texas Commission on Environmental Quality to
12	12	certain water entities.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Sections 49.181(a) and (h), Water Code, are
15	15	amended to read as follows:
16	16	(a) A district may not issue bonds unless the commission
17	17	determines that the project to be financed by the bonds is feasible
18	18	and issues an order approving the issuance of the bonds. This
19	19	section does not apply to:
20	20	(1) refunding bonds if the commission issued an order
21	21	approving the issuance of the bonds or notes that originally
22	22	financed the project;
23	23	(2) refunding bonds that are issued by a district
24	24	under an agreement between the district and a municipality allowing
25	25	the issuance of the district's bonds to refund bonds issued by the
26	26	municipality to pay the cost of financing facilities;
27	27	(3) bonds issued to and approved by the Farmers Home
28	28	Administration, the United States Department of Agriculture, the
29	29	North American Development Bank, or the Texas Water Development
30	30	Board; [or]
31	31	(4) refunding bonds issued to refund bonds described
32	32	by Subdivision (3); or
33	33	(5) bonds issued by a public utility agency created
34	34	under Chapter 572, Local Government Code, any of the public
35	35	entities participating in which are districts if at least one of
36	36	those districts is a district described by Subsection (h)(1)(E).
37	37	(h) This section does not apply to:
38	38	(1) a district if:
39	39	(A) [(1)] the district's boundaries include one
40	40	entire county;
41	41	(B) [(2)] the district was created by a special
42	42	Act of the legislature and:
43	43	(i) [(A)] the district is located entirely
44	44	within one county;
45	45	(ii) [(B)] the district is located entirely
46	46	within one or more home-rule municipalities;
47	47	(iii) [(C)] the total taxable value of the
48	48	real property and improvements to the real property zoned by one or
49	49	more home-rule municipalities for residential purposes and located
50	50	within the district does not exceed 25 percent of the total taxable
51	51	value of all taxable property in the district, as shown by the most
52	52	recent certified appraisal tax roll prepared by the appraisal
53	53	district for the county; and
54	54	(iv) [(D)] the district was not required by
55	55	law to obtain commission approval of its bonds before the effective
56	56	date of this section;
57	57	(C) [(3)] the district is a special water
58	58	authority;
59	59	(D) [(4)] the district is governed by a board of
60	60	directors appointed in whole or in part by the governor, a state
61	61	agency, or the governing body or chief elected official of a
62	62	municipality or county and does not provide, or propose to provide,
63	63	water, sewer, drainage, reclamation, or flood control services to
64	64	residential retail or commercial customers as its principal
65	65	function; or
66	66	(E) [(5)] the district on September 1, 2003:
67	67	(i) [(A)] is a municipal utility district
68	68	that includes territory in only two counties;
69	69	(ii) [(B)] has outstanding long-term
70	70	indebtedness that is rated BBB or better by a nationally recognized
71	71	rating agency for municipal securities; and
72	72	(iii) [(C)] has at least 5,000 active water
73	73	connections; or
74	74	(2) a public utility agency created under Chapter 572,
75	75	Local Government Code, any of the public entities participating in
76	76	which are districts if at least one of those districts is a district
77	77	described by Subdivision (1)(E).
78	78	SECTION 2. Section 49.052(f), Water Code, is amended to
79	79	read as follows:
80	80	(f) This section shall not apply to special water
81	81	authorities, districts described in Section 49.181(h)(1)(D)
82	82	[49.181(h)(4)], or a district where the principal function of the
83	83	district is to provide irrigation water to agricultural lands or to
84	84	provide nonpotable water for any purpose.
85	85	SECTION 3. Section 49.183(d), Water Code, is amended to
86	86	read as follows:
87	87	(d) A district's bonds are negotiable instruments within
88	88	the meaning and purposes of the Business & Commerce Code. A
89	89	district's bonds may be issued and bear interest in accordance with
90	90	Chapters 1201, 1204, and 1371, Government Code, and Subchapters
91	91	A-C, Chapter 1207, Government Code. Except for this subsection,
92	92	this section does not apply to special water authorities or
93	93	districts described in Section 49.181(h)(1)(D) [49.181(h)(4)].
94	94	SECTION 4. The change in law made by this Act does not apply
95	95	to bonds for which an application and report were submitted to the
96	96	Texas Commission on Environmental Quality under Section 49.181(b),
97	97	Water Code, before the effective date of this Act. Those bonds are
98	98	governed by the law as it existed immediately before the effective
99	99	date of this Act, and that law is continued in effect for that
100	100	purpose.
101	101	SECTION 5. This Act takes effect immediately if it receives
102	102	a vote of two-thirds of all the members elected to each house, as
103	103	provided by Section 39, Article III, Texas Constitution. If this
104	104	Act does not receive the vote necessary for immediate effect, this
105	105	Act takes effect September 1, 2011.
106	106	* * * * *