82R17055 SGA-F
By: Schwertner H.B. No. 2360
Substitute the following for H.B. No. 2360:
By: King of Zavala C.S.H.B. No. 2360
A BILL TO BE ENTITLED
relating to the creation of the Corn Hill Regional Water Authority;
providing authority to issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 6, Special District Local Laws
Code, is amended by adding Chapter 8364 to read as follows:
CHAPTER 8364. CORN HILL REGIONAL WATER AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8364.001. DEFINITIONS. In this chapter:
(1) "Authority" means the Corn Hill Regional Water
Authority.
(2) "Board" means the authority's board of directors.
(3) "Commission" means the Texas Commission on
Environmental Quality.
(4) "Director" means a board member.
(5) "Member entity" means a municipality or other
political subdivision that is a member under Section 8364.071.
Sec. 8364.002. NATURE OF AUTHORITY. The authority is a
conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution.
Sec. 8364.003. CONFIRMATION ELECTION NOT REQUIRED. The
authority is not required to hold an election to confirm the
creation of the authority.
Sec. 8364.004. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
The authority is created to serve a public purpose and benefit.
(b) All land and other property included in the authority
will benefit from the improvements and services to be provided by
the authority under powers conferred by Section 59, Article XVI,
Texas Constitution, and other powers granted under this chapter.
(c) The authority is created to accomplish the control,
storage, conservation, preservation, distribution, and use of
water for domestic, industrial, municipal, and all other useful
purposes as provided by Section 59, Article XVI, Texas
Constitution.
(d) The creation of the authority is in the public interest
and is essential to:
(1) further the public purposes of developing and
diversifying the economy of the state;
(2) eliminate unemployment and underemployment;
(3) develop or expand commerce; and
(4) conserve the natural resources of this state.
(e) The authority will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the authority, and of the public; and
(2) provide needed funding for the authority to
preserve, maintain, and enhance the economic health and vitality of
the authority territory as a community and business center.
Sec. 8364.005. AUTHORITY TERRITORY. The authority is
composed of the territory in the member entities.
Sec. 8364.006. CHANGE IN MEMBERSHIP OR TERRITORY;
NOTIFICATION TO COMMISSION. The authority shall notify the
commission of any changes in its membership or territory.
[Sections 8364.007-8364.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8364.051. GOVERNING BODY; TERMS. (a) The authority is
governed by a board of appointed directors.
(b) Directors serve staggered three-year terms, with terms
expiring on September 1.
(c) Each member entity shall appoint two directors.
(d) A director serves at the pleasure of the governing body
of the member entity that appointed the director. A member entity
may remove the director and appoint a new director at any time by
resolution or ordinance of the governing body of the member entity.
[Sections 8364.052-8364.070 reserved for expansion]
SUBCHAPTER B-1. AUTHORITY MEMBERSHIP
Sec. 8364.071. INITIAL MEMBER ENTITIES. The initial member
entities are:
(1) Sonterra Municipal Utility District; and
(2) CLL Municipal Utility District No. 1.
Sec. 8364.072. PETITION TO JOIN AUTHORITY. (a) A
municipality or other political subdivision may petition the board
to add that municipality or political subdivision as a member
entity.
(b) Before a new member entity may be added to the
authority, the petition must be approved by a joint resolution or
ordinance of the governing body of each member entity.
Sec. 8364.073. PETITION TO LEAVE AUTHORITY. (a) A member
entity may petition the board to leave the authority.
(b) If the authority determines that allowing the member
entity to leave the authority will not impair any outstanding bonds
or other obligations of the authority on the date the board receives
the petition, the board may approve the petition.
(c) If on the date the board receives the petition the
authority has bonds or other obligations outstanding for which the
member entity seeking to leave is wholly or partly responsible, the
board may approve the petition only if:
(1) the member entity agrees to pay its share of the
bonds or other obligations; and
(2) the authority determines that as a result of that
payment the remaining bonds or other obligations of the authority
will not be impaired.
[Sections 8364.074-8364.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8364.101. SERVICE TO MEMBER ENTITIES. The authority
shall serve its member entities.
Sec. 8364.102. GENERAL POWERS AND DUTIES. The authority
has the powers and duties necessary to accomplish the purposes for
which the authority is created.
Sec. 8364.103. MUNICIPAL UTILITY DISTRICT POWERS AND
DUTIES. The authority has the powers and duties provided by the
general law of this state, including Chapters 49 and 54, Water Code,
applicable to municipal utility districts created under Section 59,
Article XVI, Texas Constitution.
[Sections 8364.104-8364.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8364.151. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. (a) For any authorized authority purpose, the
authority may issue bonds or other obligations payable wholly or
partly from revenue of the authority's water system, including
revenue from contracts with member entities or customers.
(b) To provide revenue under Subsection (a), a member entity
may make payments under a contract with the authority from any of
the member entity's sources of revenue, including ad valorem taxes,
impact fees, grants, sales and use taxes, and any other source.
Sec. 8364.152. NO TAXING POWER. The authority may not
impose a tax.
SECTION 2. (a) Not later than September 15, 2011, the
Sonterra Municipal Utility District and the CLL Municipal Utility
District No. 1 shall each appoint two directors to the board of
directors of the Corn Hill Regional Water Authority under Section
8364.051, Special District Local Laws Code, as added by this Act.
(b) To establish staggered three-year terms required under
Section 8364.051, Special District Local Laws Code, as added by
this Act, the initial directors appointed under that section shall,
unless otherwise agreed, determine by lot which of the directors
shall serve a one-year, two-year, or three-year term.
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. (a) Any eminent domain powers granted under
general law to the Corn Hill Regional Water Authority as created by
this Act take effect only if this Act receives a two-thirds vote of
all the members elected to each house.
(b) If this Act does not receive a two-thirds vote of all the
members elected to each house, Subchapter C, Chapter 8364, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 8364.104 to read as follows:
Sec. 8364.104. NO EMINENT DOMAIN POWER. The authority may
not exercise the power of eminent domain.
(c) This section is not intended to be an expression of a
legislative interpretation of the requirements of Section 17(c),
Article I, Texas Constitution.
SECTION 5. Except as provided by Section 4 of this Act:
(1) 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; and
(2) if this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2011.