83R14248 SGA-F
By: Workman H.B. No. 890
Substitute the following for H.B. No. 890:
By: Thompson of Brazoria C.S.H.B. No. 890
A BILL TO BE ENTITLED
AN ACT
relating to the conversion of the West Travis County Public Utility
Agency to the Hill Country Regional Water Authority and to the
creation of the Hill Country Regional Water Authority; providing
authority to issue revenue bonds or notes; granting the power of
eminent domain; providing an administrative penalty; providing
authority to impose fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The West Travis County Public Utility Agency
is converted to a conservation and reclamation district to be known
as the Hill Country Regional Water Authority located in Hays and
Travis Counties.
(b) The Hill Country Regional Water Authority is not
required to hold an election to confirm the creation of the
authority.
SECTION 2. It is the intent and finding of the legislature
that:
(1) the residents and customers served by the West
Travis County Public Utility Agency before the effective date of
this Act will be provided by the creation of the Hill Country
Regional Water Authority under this Act with the means to obtain
services authorized by Sections 8601.101 and 8601.102, Special
District Local Laws Code, as added by this Act, in the most
effective and efficient manner without the impairment of any
existing contracts or obligations of the West Travis County Public
Utility Agency; and
(2) the creation of the Hill Country Regional Water
Authority under this Act will further important public policy
objectives by:
(A) supporting public ownership of important
water and wastewater utility infrastructure in an environmentally
sensitive area; and
(B) protecting the interests of current
ratepayers.
SECTION 3. The heading to Subtitle G, Title 6, Special
District Local Laws Code, is amended to read as follows:
SUBTITLE G. RIVER AUTHORITIES AND OTHER SPECIAL WATER AUTHORITIES
SECTION 4. Subtitle G, Title 6, Special District Local Laws
Code, is amended by adding Chapter 8601 to read as follows:
CHAPTER 8601. HILL COUNTRY REGIONAL WATER AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8601.001. DEFINITIONS. In this chapter:
(1) "Authority" means the Hill Country Regional Water
Authority.
(2) "Board" means the board of directors of the
authority.
(3) "Director" means a member of the board.
(4) "Member entity" means:
(A) Hays County;
(B) the City of Bee Cave; or
(C) West Travis County Municipal Utility
District No. 5.
Sec. 8601.002. NATURE OF AUTHORITY. The authority is a
conservation and reclamation district in Hays and Travis Counties
created under and essential to accomplish the purposes of Section
59, Article XVI, Texas Constitution.
Sec. 8601.003. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
The authority is created to serve a public use and benefit.
(b) All land and other property included in the territory of
the authority will benefit from the works and projects to be
accomplished by the authority under powers conferred by Section 59,
Article XVI, Texas Constitution, and 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, including the protection, preservation, and restoration
of the purity and sanitary condition of water within this state, as
provided by Section 59, Article XVI, Texas Constitution.
Sec. 8601.004. AUTHORITY BOUNDARIES. The authority's
boundaries are coextensive with the boundaries of the territory
described by Certificate of Public Convenience and Necessity No.
13207, as those boundaries exist on the effective date of the Act
enacting this chapter and as they may be amended in accordance with
applicable law.
Sec. 8601.005. APPLICABILITY OF OTHER LAW. (a) Except as
otherwise provided by this chapter, Chapter 49, Water Code, applies
to the authority. For the purposes of Chapter 49, Water Code, the
authority is a special water authority.
(b) The following subchapters of Chapter 49, Water Code, do
not apply to the authority:
(1) Subchapter J;
(2) Subchapter L;
(3) Subchapter M; and
(4) Subchapter N.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8601.051. DIRECTORS; TERMS. (a) The authority is
governed by a board of five appointed directors.
(b) Except for a director serving on the initial board,
directors serve staggered four-year terms that expire September 30
of even-numbered years.
(c) A director may serve consecutive terms of office.
Sec. 8601.0515. INITIAL BOARD. (a) The initial board
consists of:
Position 1--Larry Fox;
Position 2--Ray Whisenant;
Position 3--Michael Murphy;
Position 4--Scott Roberts; and
Position 5--Bill Goodwin.
(b) Directors Fox, Whisenant, and Murphy serve initial
terms expiring September 30, 2016. Directors Roberts and Goodwin
serve initial terms expiring September 30, 2014.
(c) A vacancy in a position on the initial board shall be
filled in the manner provided by Section 8601.053 for making an
appointment to the same position, except that an appointment to
fill a vacancy in position 4 or 5 does not require that both
positions be seated simultaneously.
(d) This section expires September 30, 2016.
Sec. 8601.052. ELIGIBILITY TO SERVE AS A DIRECTOR. (a) To
be eligible to serve as a director, an individual must be at least
18 years of age.
(b) To be eligible to serve as a director:
(1) in position 1, 2, or 3, an individual must reside
in Hays or Travis County;
(2) in position 4, an individual must reside in Hays
County; or
(3) in position 5, an individual must reside in Travis
County.
Sec. 8601.053. METHOD OF APPOINTING DIRECTORS. (a)
Directors are appointed or recommended for appointment to the five
numbered positions on the board by the governing body of each member
entity as follows:
(1) West Travis County Municipal Utility District No.
5 shall appoint the director who serves in position 1;
(2) Hays County shall appoint the director who serves
in position 2;
(3) the City of Bee Cave shall appoint the director who
serves in position 3;
(4) Hays County shall appoint the director who serves
in position 4, subject to approval by the member entities as
provided by Subsection (b); and
(5) the City of Bee Cave shall appoint the director who
serves in position 5, subject to approval by the member entities as
provided by Subsection (b).
(b) The governing bodies of all member entities must approve
the appointments of directors for positions 4 and 5 before the
persons begin to serve as directors. Upon approval, directors
appointed to serve in those positions shall be seated
simultaneously.
(c) Except to fill a vacancy, the appointment of a director
must be made during September of the year in which that position's
term begins.
Sec. 8601.054. VACANCY. (a) A vacancy in a position on the
board shall be filled in the same manner as an appointment to the
board for that position, except that a vacancy in position 4 or 5
does not require that positions 4 and 5 be seated simultaneously.
(b) A person appointed to fill a vacancy serves for the
remainder of the vacated term.
(c) Section 49.105, Water Code, does not apply to the
authority.
Sec. 8601.055. SERVICE ON BOARD BY EMPLOYEE OR OFFICER OF
OTHER PUBLIC ENTITY. (a) The common law doctrine of
incompatibility does not disqualify an employee or official of a
public entity from serving as a director.
(b) An employee, officer, or member of the governing body of
a public entity may serve as a director but may not have a personal
interest in a contract executed by the authority other than as an
employee, officer, or member of the governing body of the public
entity. If a director has a personal interest in a contract
executed by the authority, the director must abstain from any
participation in the matter. A director is not required to abstain
from further participation in the matter if a majority of the
members of the board of directors have similar interests in the same
official action.
Sec. 8601.056. COMPENSATION; EXPENSES. (a) A director
serves without compensation but, subject to board approval, may be
reimbursed for travel or other expenses incurred on behalf of the
authority if the director presents the board with a verified
statement of the expenses.
(b) Section 49.060, Water Code, does not apply to the
authority.
Sec. 8601.057. QUORUM. A majority of the membership of the
board constitutes a quorum for any meeting, and a concurrence of a
majority of the entire membership of the board is sufficient for
transacting any business of the authority.
Sec. 8601.058. OFFICERS. (a) Every two years on the
appointment or reappointment of directors, the board shall meet and
elect a president, a vice president, a secretary, and any other
officers or assistant officers the board considers necessary.
(b) The president is the chief executive officer of the
authority, presides at all meetings of the board, and shall execute
all documents on behalf of the authority unless the board
authorizes the general manager or other representative of the
authority to execute a document or documents on behalf of the
authority.
(c) The vice president shall act as president in case of the
absence or disability of the president.
(d) The secretary is responsible for seeing that all records
and books of the authority are properly kept and may attest the
president's signature on documents.
(e) The board may appoint another director, the general
manager, or any employee as assistant or deputy secretary to assist
the secretary, and any such person shall be entitled to certify as
to the authenticity of any record of the authority, including all
proceedings relating to bonds, contracts, or indebtedness of the
authority.
Sec. 8601.059. REMOVAL FROM OFFICE. A director may be
removed from office at any time, with or without cause, by the
member entity that appointed the director.
Sec. 8601.060. EX OFFICIO BOARD MEMBERS. (a) This section
applies only to a person who is not an appointed director.
(b) Any of the following persons, or any of those persons'
designees, is entitled to serve as an ex officio, nonvoting member
of the board:
(1) the Hays County judge;
(2) the City of Bee Cave city administrator; or
(3) the president of the West Travis County Municipal
Utility District No. 5 Board of Directors.
(c) A person designated as an ex officio member of the board
is entitled to receive notice of and to attend the authority's board
meetings.
(d) A person designated as an ex officio member of the board
is not counted for purposes of determining a quorum under Section
8601.057.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8601.101. GENERAL POWERS AND DUTIES. (a) The
authority has all the rights, powers, privileges, functions, and
duties necessary and convenient to accomplish the purposes of this
chapter.
(b) Except as provided by this chapter, the authority has
the powers and duties provided by the general law of this state
applicable to a special water authority under Chapter 49, Water
Code.
(c) The authority retains all the rights, powers,
privileges, functions, obligations, and duties of the West Travis
County Public Utility Agency as in effect before the effective date
of the Act enacting this chapter.
Sec. 8601.102. WATER AND WASTE POWERS. (a) The authority
may supply water for municipal uses, domestic uses, power, and
commercial purposes, and all other beneficial uses or controls.
(b) The authority may not use groundwater from the Barton
Springs Segment of the Edwards Aquifer as a source of the
authority's water supply. This section shall not be interpreted to
prohibit an aquifer storage and recovery project or a recharge
improvement project that enhances water supply in the Barton
Springs Segment of the Edwards Aquifer.
(c) The authority may collect, transport, process, dispose
of, and control all domestic, industrial, or communal wastes
whether in fluid, solid, or composite state.
Sec. 8601.103. AUTHORITY POLICIES, RULES, AND BYLAWS. The
authority may adopt and enforce policies, rules, and bylaws
reasonably required to implement this chapter, including rules
governing procedures before the board and rules regarding
implementation, enforcement, and any other matters related to the
exercise of the rights, powers, privileges, and functions conferred
on the authority by this chapter for the provision of water and
wastewater service.
Sec. 8601.104. EXTENSION OF SERVICES. (a) In this section,
"commission" means the Texas Commission on Environmental Quality.
(b) Except as provided by this section, the authority may
extend service to new customers located inside or outside the
authority's boundaries.
(c) The authority may not extend wastewater service to new
customers in Hays County that are located inside the
extraterritorial jurisdiction or municipal limits of a
municipality or to new customers located inside the
extraterritorial jurisdiction or municipal limits of the City of
Austin unless the authority sends the applicable municipality
written notice of its intent to provide the service and the
municipality does not object in writing to the extension of service
on or before the 60th day after the date of receiving notice.
(d) In accordance with the provisions of Section
8601.003(c) related to the protection, preservation, and
restoration of the purity and sanitary condition of water in this
state, except as provided by this subsection, the authority may not
extend service to new customers in an area served by the authority
that is located in the contributing and recharge zone of the Barton
Springs Segment of the Edwards Aquifer. Before the authority
approves an extension of authority service under this subsection,
the applicant requesting the service must certify to the authority
that:
(1) the applicant has submitted any required
applications, notifications, or plans to the commission; and
(2) a draft permit has been issued by the executive
director of the commission or by any other governmental entity with
the requisite jurisdiction for the purpose of managing stormwater
and all domestic, industrial, or communal wastes in a manner
sufficient to maintain and support the Texas Surface Water Quality
Standards, 30 T.A.C. Chapter 307, including the anti-degradation
policy adopted under those standards.
(e) The authority shall hold a public hearing and provide an
opportunity for public comment before extending authority service
to new customers not located in the service area identified in the
10-year capital improvement plan that:
(1) has been adopted from time to time in compliance
with Chapter 395, Local Government Code; and
(2) is in effect when an application for service is
received.
Sec. 8601.105. ACQUISITION, CONSTRUCTION, MAINTENANCE, AND
OPERATION OF SYSTEMS. (a) The authority may purchase, construct,
acquire, own, operate, maintain, repair, improve, or extend inside
or outside its boundaries any works, improvements, facilities,
plants, equipment, or appliances necessary to accomplish authority
purposes under this chapter, including all works, improvements,
facilities, plants, equipment, and appliances incident, helpful,
or necessary to provide services inside or outside the authority's
boundaries.
(b) Any new construction or extension of authority
facilities in the jurisdiction of a municipality must comply with
the municipality's:
(1) ordinances governing subdivision platting and
site development; and
(2) design criteria for fire flow.
Sec. 8601.106. WATER CONSERVATION OR DROUGHT CONTINGENCY
PLANS. The authority by rule may develop, prepare, revise, adopt,
implement, enforce, and manage comprehensive water conservation or
drought contingency plans for the authority or any portion of the
authority.
Sec. 8601.107. CONTRACTS AND INSTRUMENTS. The authority
may, as necessary or convenient to the exercise of the rights,
powers, privileges, and functions conferred on the authority by
this chapter:
(1) enter into a contract, including an interlocal
contract under Chapter 791, Government Code; or
(2) execute an instrument.
Sec. 8601.108. MEMBER ENTITY CONVEYANCES AND ACQUISITIONS.
(a) In this section, "utility system" has the meaning assigned by
Section 1502.001, Government Code.
(b) A member entity may convey a utility system facility or
asset or its interest in a utility system facility or asset to the
authority without holding an election to approve the conveyance.
(c) A member entity is exempt from the provisions of Chapter
1502, Government Code, regarding the conveyance, sale, or
acquisition of a utility system, or any related works,
improvements, facilities, plants, equipment, or appliances.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8601.151. FEES, RATES, AND OTHER CHARGES. The board
shall establish, charge, and collect tolls, fees, user fees, rates,
and other charges for the sale or use of water, water connections,
wastewater service, wastewater connections, or other services
sold, furnished, or supplied by the authority inside and outside
the authority's boundaries. The tolls, fees, user fees, rates, and
other charges must be reasonable and nondiscriminatory and
sufficient to produce revenue adequate to:
(1) pay all expenses necessary to the operation and
maintenance of the properties and facilities of the authority;
(2) pay the interest on and principal of all bonds,
notes, or other obligations assumed, issued, or incurred by the
authority;
(3) pay the principal of and interest on and any other
amounts owed under any legal debt created or assumed by the
authority;
(4) pay all sinking fund and reserve fund payments
agreed to be made with respect to bonds, notes, or other obligations
and payable out of those revenues, as the payments become due and
payable; and
(5) fulfill the terms of any agreements made with the
bondholders, other counterparties or creditors, or with any person
on their behalf.
Sec. 8601.152. IMPACT FEES. The authority may assess and
collect impact fees under Chapter 395, Local Government Code,
inside and outside the authority's boundaries.
Sec. 8601.153. LATE OR PARTIAL PAYMENTS: INTEREST AND
PENALTIES. (a) The board may require the payment of interest on
any late or unpaid tolls, fees, user fees, impact fees, rates, or
other charges due the authority. The interest rate may not exceed
the interest rate permitted by Section 2251.025, Government Code.
(b) The board may impose penalties for the failure to make a
complete or timely payment to the authority.
Sec. 8601.154. ADMINISTRATIVE PENALTY. A person who
violates a rule or order of the authority is subject to an
administrative penalty of not more than $5,000, as determined by
the board, for each violation or each day of a continuing violation.
The person shall pay the penalty to the authority.
Sec. 8601.155. DISBURSEMENTS. (a) The authority may
disburse authority money by check, draft, order, federal reserve
wire system, or other instrument or authorization.
(b) Except as provided by Subsection (c), disbursements of
the authority must be signed by at least a majority of the
directors.
(c) The board by resolution may allow the general manager,
treasurer, bookkeeper, or other employee or representative of the
authority to sign disbursements.
Sec. 8601.156. NO AD VALOREM TAXATION OR SPECIAL
ASSESSMENTS. The authority may not impose an ad valorem tax or a
special assessment.
Sec. 8601.157. FISCAL YEAR. The authority's fiscal year
begins on October 1 and ends on September 30.
Sec. 8601.158. FRANCHISE FEES. The authority may not
assess or collect a franchise fee for the use of its real property.
The authority may pay a franchise fee to another governmental
entity.
SUBCHAPTER E. BONDS AND NOTES
Sec. 8601.201. REVENUE BONDS AND NOTES. (a) To accomplish
the purposes of the authority, the authority may issue bonds or
notes payable solely from and secured by all or part of any funds or
any revenue from any source or sources, including:
(1) tolls, fees, user fees, impact fees, rates, and
other charges the authority imposes or collects;
(2) the sale of water, water services, water rights or
capacity, water transmission rights or services, water pumping,
sewer services, or any other service or product of the authority
provided inside or outside the boundaries of the authority;
(3) grants or gifts;
(4) the ownership or operation of all or a designated
part of the authority's works, improvements, facilities, plants, or
equipment; and
(5) contracts between the authority and a member
entity, customer, or any other person.
(b) Bonds or notes issued by the authority may be first or
subordinate lien obligations at the board's discretion.
(c) In connection with any bonds or notes of the authority,
the authority may exercise any power of an issuer under Chapter
1371, Government Code.
(d) The authority may conduct a public, private, or
negotiated sale of the bonds or notes.
(e) The authority may enter into one or more indentures of
trust to further secure its bonds or notes.
(f) The authority may issue bonds or notes in more than one
series as necessary to carry out the purposes of this chapter. In
issuing bonds or notes secured by revenue of the authority, the
authority may reserve the right to issue additional bonds or notes
secured by the authority's revenue that are on parity with or are
senior or subordinate to the bonds or notes issued earlier.
(g) A resolution of the board or a trust indenture securing
the bonds or notes may specify additional provisions that
constitute a contract between the authority and its bondholders or
noteholders.
(h) Bonds and notes may be additionally secured by deed of
trust or mortgage on any or all of the authority's facilities.
(i) Bonds and notes issued by the authority are not subject
to approval by the Texas Commission on Environmental Quality, and
commission rules regarding bonds or notes do not apply to bonds or
notes issued by the authority.
Sec. 8601.202. ELECTION NOT REQUIRED. The authority is not
required to hold an election to approve the issuance of revenue
bonds or notes or other obligations under this subchapter.
Sec. 8601.203. USE OF REVENUE AND GROWTH PROJECTIONS. For
the purposes of attorney general review and approval and in lieu of
any other manner of demonstrating the ability to pay debt service
and satisfy any other pecuniary obligations relating to bonds,
notes, or other obligations, the authority may demonstrate its
ability to satisfy the debt service and those obligations using
accumulated funds of the authority and revenue and growth
projections prepared by a professional utility rate consultant at
the direction of the authority. If the resolution authorizing the
issuance of the bonds, notes, or other obligations provides that
the authority intends to increase rates to the extent necessary to
pay debt service and satisfy any other pecuniary obligations
arising under the bonds, notes, or other obligations, the revenue
projections prepared by a professional utility rate consultant may
include forecast rate increases and accumulated and available fund
balances as determined by the authority.
SECTION 5. On the effective date of this Act:
(1) the Hill Country Regional Water Authority shall
assume all assets, liabilities, and obligations of the West Travis
County Public Utility Agency;
(2) all contracts and written agreements of the West
Travis County Public Utility Agency are assigned to and assumed by
the Hill Country Regional Water Authority; and
(3) the Utilities Installment Purchase Agreement
entered January 17, 2012, between the Lower Colorado River
Authority and the West Travis County Public Utility Agency, as
amended, is assigned to and assumed by the Hill Country Regional
Water Authority created by Section 4 of this Act and is valid and
enforceable by its terms. Governmental immunity from liability or
suit is waived for the parties to enforce that Utilities
Installment Purchase Agreement to the extent provided by Subchapter
I, Chapter 271, Local Government Code.
SECTION 6. (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 7. (a) Any eminent domain powers granted by general
law that apply to the Hill Country 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 8601, Special
District Local Laws Code, as added by this Act, is amended by adding
Section 8601.109 to read as follows:
Sec. 8601.109. NO EMINENT DOMAIN POWER. The district 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 8. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.