83R5566 SLB-D
By: Fraser S.B. No. 235
A BILL TO BE ENTITLED
AN ACT
relating to the creation of regional authorities for water
infrastructure projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Water Code is amended by adding Title 6 to
read as follows:
TITLE 6. WATER INFRASTRUCTURE
SUBTITLE A. GENERAL PROVISIONS
CHAPTER 201. GENERAL PROVISIONS
Sec. 201.001. DEFINITIONS. In this title:
(1) "Commission" means the Texas Commission on
Environmental Quality.
(2) "Development board" means the Texas Water
Development Board.
SUBTITLE B. WATER INFRASTRUCTURE PROJECTS
CHAPTER 251. REGIONAL WATER AUTHORITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 251.001. DEFINITIONS. In this chapter:
(1) "Authority" means a regional water authority
organized under this chapter.
(2) "Board" means the board of directors of an
authority.
(3) "Bond" includes a bond, certificate, note, or
other obligation of an authority authorized by this chapter,
another statute, or the Texas Constitution.
(4) "Bond proceeding" includes a bond resolution and a
bond indenture authorized by the bond resolution, a credit
agreement, loan agreement, or other agreement entered into in
connection with the bond or the payments to be made under the
agreement, and any other agreement between an authority and another
person providing security for the payment of a bond.
(5) "Bond resolution" means an order or resolution of
a board authorizing the issuance of a bond.
(6) "Bondholder" means the owner of a bond and
includes a trustee acting on behalf of an owner of a bond under the
terms of a bond indenture.
(7) "Director" means a member of a board.
(8) "Governmental entity" means a political
subdivision of the state, including a municipality or a county, a
district organized or operating under Section 52, Article III, or
Section 59, Article XVI, Texas Constitution, a nonprofit
corporation, including a water supply or sewer service corporation
operating under Chapter 67, or any other public entity or
instrumentality.
(9) "Member entity" means a governmental entity that
is approved for inclusion in an authority.
(10) "Public utility facility" means:
(A) a water, wastewater, natural gas, or
petroleum pipeline or facility;
(B) an electric transmission or distribution
facility; or
(C) telecommunications infrastructure,
including fiber optic cable, conduit, and wireless communications
facilities.
(11) "Revenue" means fees, rents, and other money
received by an authority from the ownership or operation of a water
project.
(12) "Surplus revenue" means revenue that exceeds the
sum of:
(A) an authority's debt service requirements for
a water project;
(B) an authority's payment obligations under a
contract or agreement authorized by this chapter;
(C) coverage requirements of a bond indenture for
a water project;
(D) costs of operation and maintenance for a
water project;
(E) cost of repair, expansion, or improvement of
a water project;
(F) funds allocated for feasibility studies; and
(G) necessary reserves as determined by the
authority.
(13) "Water project" means a project approved for
inclusion in the state water plan, including:
(A) a conveyance facility for conveying water or
wastewater, including a canal or pipeline;
(B) a dam;
(C) a desalination facility;
(D) a drainage system;
(E) a dredging operation;
(F) a flood control system;
(G) an injection well;
(H) an irrigation system;
(I) a public utility facility;
(J) a surface water reservoir;
(K) an underground reservoir;
(L) a wastewater or water treatment facility,
including any:
(i) building or structure;
(ii) pumping equipment;
(iii) pipes; or
(iv) other operating equipment;
(M) other real or personal property associated
with a water project described by this subdivision; and
(N) any other project approved in the state water
plan for the area covered by the authority.
(14) "Water system" means a combination of water
projects.
Sec. 251.002. CONSTRUCTION COSTS DEFINED. (a) The cost of
the acquisition, construction, improvement, extension, or
expansion of a water project under this chapter includes the cost
of:
(1) the actual acquisition, construction,
improvement, extension, or expansion of the water project;
(2) the acquisition of real property, rights-of-way,
property rights, easements, and other interests in real property;
(3) machinery and equipment;
(4) interest payable before, during, and for not more
than three years after acquisition, construction, improvement,
extension, or expansion as provided in the bond proceedings;
(5) revenue estimates, engineering and legal
services, plans, specifications, surveys, appraisals, construction
cost estimates, and other expenses necessary or incidental to
determining the feasibility of the acquisition, construction,
improvement, extension, or expansion;
(6) necessary or incidental administrative, legal,
and other expenses;
(7) compliance with laws, regulations, and
administrative rulings, including any costs associated with
necessary environmental mitigation measures;
(8) financing; and
(9) expenses related to the initial operation of the
water project.
(b) Costs attributable to a water project and incurred
before the issuance of bonds to finance the water project may be
reimbursed from the proceeds of sale of the bonds.
Sec. 251.003. NATURE OF AUTHORITY. An authority is a
conservation and reclamation district created under and essential
to accomplish the purposes of Section 59, Article XVI, Texas
Constitution.
SUBCHAPTER B. CREATION OF AUTHORITY
Sec. 251.051. METHOD OF CREATING AUTHORITY. Two or more
governmental entities may submit a petition to the commission
requesting the creation of an authority. The petition must
include:
(1) the name of the proposed authority;
(2) the area and the boundaries of the proposed
authority, including a map generally outlining those boundaries;
(3) the purpose or purposes of the authority;
(4) a statement of the general nature of any water
projects proposed to be undertaken by the proposed authority, the
necessity and feasibility of the work, and the estimated costs of
those projects if those projects are to be funded by the sale of
bonds or notes;
(5) the names of at least five individuals qualified
to serve as temporary directors; and
(6) financial information, including a budget based on
projected expenses and revenue.
Sec. 251.052. NOTICE AND PUBLIC MEETING ON AUTHORITY
CREATION. If a petition is filed under Section 251.051, the
commission shall give notice of the application and shall conduct a
public meeting in a central location within the area of the proposed
authority on the application not later than the 60th day after the
date the commission issues notice. The notice must contain the
date, time, and location of the public meeting and must be published
in one or more newspapers of general circulation in the area of the
proposed authority.
Sec. 251.053. COMMISSION ORDER. (a) After a meeting
described by Section 251.052, if the commission determines that
creation of the authority satisfies the criteria adopted by the
commission under Section 251.054, the commission shall issue an
order creating the authority and notify the petitioners.
(b) An order issued under this section must include:
(1) the territory of the authority; and
(2) the names of the temporary directors.
Sec. 251.054. CRITERIA FOR CREATION OF AUTHORITY. The
commission shall adopt rules establishing the criteria to be used
to determine whether the creation of an authority would protect and
promote the health and safety of the public.
Sec. 251.055. ADDITION AND WITHDRAWAL OF GOVERNMENTAL
ENTITIES. (a) A governmental entity may petition the commission
for approval to become part of an existing authority. The
commission may approve the petition only if:
(1) the board has agreed to the petition; and
(2) the commission finds that the affected
governmental entities will be adequately represented on the board.
(b) A member entity may petition the commission for approval
to withdraw from an authority. The commission may approve the
petition only if:
(1) the authority has no bonded indebtedness; or
(2) the authority has debt other than bonded
indebtedness, but the board has agreed to the withdrawal.
(c) A governmental entity may not become part of an
authority or withdraw from an authority without the approval of the
commission.
Sec. 251.056. TERRITORY. An authority's territory is the
combined territory of its member entities.
SUBCHAPTER C. ADMINISTRATION
Sec. 251.101. BOARD OF DIRECTORS; TERMS. (a) The governing
body of an authority is the board, which shall consist of not fewer
than 5 and not more than 13 directors appointed by the member
entities that compose the authority.
(b) Directors serve staggered terms of four years.
Sec. 251.102. ELIGIBILITY. (a) To be eligible to serve as
a director, an individual:
(1) must reside in the territory of the authority; and
(2) may be a representative of the appointing member
entity.
(b) Notwithstanding any statutory or common law provision
that prohibits dual office holding, an individual may serve as a
director who is also an elected or appointed officer of a member
entity without forfeiting either office.
Sec. 251.103. APPOINTMENT OF DIRECTORS. The temporary
directors shall establish a method of appointing directors that
ensures equitable treatment of each member entity.
Sec. 251.104. MEETINGS. The board shall hold regular
meetings at a location inside the authority as agreed upon by the
board.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 251.151. GENERAL POWERS. (a) An authority, through
its board, may:
(1) adopt rules for the regulation of its affairs and
the conduct of its business;
(2) adopt an official seal;
(3) study, evaluate, design, finance, acquire,
construct, maintain, repair, and operate water projects,
individually or as one or more water systems;
(4) acquire, hold, and dispose of property in the
exercise of its powers and the performance of its duties under this
chapter;
(5) enter into contracts or operating agreements with
a similar authority, another governmental entity, or an agency of
the United States, a state of the United States, the United Mexican
States, or a state of the United Mexican States;
(6) enter into contracts or agreements necessary or
incidental to its powers and duties under this chapter;
(7) employ and set the compensation and benefits of
administrators, consulting engineers, attorneys, accountants,
construction and financial experts, superintendents, managers,
full-time and part-time employees, agents, consultants, and other
persons as the authority considers necessary or useful;
(8) apply for, directly or indirectly receive, and
spend loans, gifts, grants, and other contributions for any purpose
of this chapter, including the construction of a water project, and
receive and spend contributions of money, property, labor, or other
things of value from any source, including the United States, a
state of the United States, the United Mexican States, a state of
the United Mexican States, the commission, a political subdivision
of this state, or a governmental entity or private entity, to be
used for the purposes for which the grants, loans, or contributions
are made, and enter into any agreement necessary for the grants,
loans, or contributions;
(9) relocate or remove or request the relocation or
removal of a public utility facility in, on, along, over, or under a
water project;
(10) enter into leases, operating agreements, service
agreements, licenses, franchises, and similar agreements with a
public or private party governing the party's use of all or any
portion of a water project and the rights and obligations of the
authority with respect to a water project;
(11) borrow money from or enter into a loan agreement
or other arrangement with the development board; and
(12) do all things necessary or appropriate to carry
out the powers and duties expressly granted or imposed by this
chapter.
(b) An authority may, if requested by the commission,
perform any function not specified by this chapter to promote or
develop a water project in this state.
(c) An authority may sue and be sued and plead and be
impleaded in its own name.
Sec. 251.152. PROJECTS ON BEHALF OF GOVERNMENTAL ENTITIES.
(a) An authority and a governmental entity may enter into a
contract, agreement, interlocal agreement, or other similar
arrangement under which the authority may plan, design, construct,
or operate a water project on behalf of the governmental entity. An
authority may enter into a contract with the commission under which
the authority will plan, develop, operate, or maintain a water
project on behalf of the commission.
(b) Payments to be made to an authority under a contract
described by this section constitute operating expenses of the
water project or system that is to be operated under the contract.
The contract may extend for the number of years as agreed to by the
parties.
Sec. 251.153. PROCUREMENT. An authority shall adopt rules
governing its procurement of goods and services that are consistent
with general laws applicable to the authority.
Sec. 251.154. PROVISION OF RETAIL PUBLIC UTILITY SERVICES
PROHIBITED. An authority may not operate a public utility facility
that provides retail public utility service.
Sec. 251.155. EMINENT DOMAIN. An authority may exercise
the power of eminent domain in accordance with Section 49.222.
SUBCHAPTER E. OPERATION OF WATER PROJECTS
Sec. 251.201. OPERATION OF WATER PROJECT. (a) An authority
shall operate a water project with employees of the authority or by
using services contracted under Subsection (b).
(b) An authority may enter into an agreement with one or
more persons to provide, on terms and conditions approved by the
authority, personnel and services to design, construct, operate,
maintain, expand, enlarge, or extend the water project of the
authority.
Sec. 251.202. AUDIT. (a) An authority shall have a
certified public accountant audit the authority's books and
accounts at least annually. The cost of the audit may be treated as
part of the cost of construction or operation of a water project.
(b) The commission may initiate an independent audit of the
authority or any of its activities at any time the commission
considers appropriate. An audit under this subsection shall be
conducted at the expense of the commission.
Sec. 251.203. TRANSFER OF WATER PROJECTS OR SYSTEMS. An
authority, acting through its board, may agree with another entity
to acquire a water project or system from that entity and to assume
any debts, obligations, and liabilities of the entity relating to a
water project or system transferred to the authority.
Sec. 251.204. AD VALOREM TAX. (a) If authorized at an
election held for that purpose, an authority may impose an
operation and maintenance tax on taxable property in the authority
in accordance with Section 49.107.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
(c) An authority may not impose an ad valorem tax for the
payment of bonds or other obligations.
SUBCHAPTER F. WATER PROJECT FINANCING
Sec. 251.251. REVENUE BONDS. (a) An authority, by bond
resolution, may authorize the issuance of bonds to pay all or part
of the cost of a water project, to refund any bonds previously
issued for the water project, or to pay for all or part of the cost
of a water project that will become a part of another water system.
(b) As determined in the bond resolution, the bonds of each
issue shall:
(1) be dated;
(2) bear interest at the rate or rates provided by the
bond resolution and beginning on the dates provided by the bond
resolution and as authorized by law, or bear no interest;
(3) mature at the time or times provided by the bond
resolution, not exceeding 40 years from their date or dates; and
(4) be made redeemable before maturity at the price or
prices and under the terms provided by the bond resolution.
(c) An authority may sell the bonds at public or private
sale in the manner and for the price it determines to be in the best
interest of the authority.
(d) The proceeds of each bond issue shall be disbursed in
the manner and under any restrictions provided in the bond
resolution.
(e) Additional bonds may be issued in the same manner to pay
the costs of a water project. Unless otherwise provided in the bond
resolution, the additional bonds shall be on a parity, without
preference or priority, with bonds previously issued and payable
from the revenue of the water project. In addition, an authority
may issue bonds for a water project secured by a lien on the revenue
of the water project subordinate to the lien on the revenue securing
other bonds issued for the water project.
(f) If the proceeds of a bond issue exceed the cost of the
water project for which the bonds were issued, the surplus shall be
segregated from the other money of the authority and used only for
the purposes specified in the bond resolution.
(g) Bonds issued and delivered under this chapter and
interest coupons on the bonds are a security under Chapter 8,
Business & Commerce Code.
(h) Bonds issued under this chapter and income from the
bonds, including any profit made on the sale or transfer of the
bonds, are exempt from taxation in this state.
(i) Bonds issued under this chapter shall be considered
authorized investments under Chapter 2256, Government Code, for
this state, any governmental entity, and any other public entity
proposing to invest in the bonds.
Sec. 251.252. INTERIM BONDS. (a) An authority may, before
issuing definitive bonds, issue interim bonds, with or without
coupons, exchangeable for definitive bonds.
(b) The interim bonds may be authorized and issued in
accordance with this chapter, without regard to a requirement,
restriction, or procedural provision in any other law.
(c) A bond resolution authorizing interim bonds may provide
that the interim bonds recite that the bonds are issued under this
chapter. The recital is conclusive evidence of the validity and the
regularity of the bonds' issuance.
Sec. 251.253. PAYMENT OF BONDS; STATE AND COUNTY CREDIT.
(a) The principal of, interest on, and any redemption premium on
bonds issued by an authority are payable solely from:
(1) the revenue of the water project for which the
bonds are issued;
(2) payments made under an agreement with the
commission or another governmental entity;
(3) money derived from any other source available to
the authority, other than money derived from a water project that is
not part of the same water system or money derived from a different
system, except to the extent that the surplus revenue of a water
project or system has been pledged for that purpose; and
(4) amounts received under a credit agreement relating
to the water project for which the bonds are issued.
(b) Bonds issued under this chapter do not constitute a debt
of this state or of a governmental entity, or a pledge of the faith
and credit of this state or of a governmental entity. Each bond
must contain on its face a statement to the effect that:
(1) the state, the authority, or any governmental
entity is not obligated to pay the bond or the interest on the bond
from a source other than the amount pledged to pay the bond and the
interest on the bond; and
(2) the faith and credit and taxing power of this state
or of any governmental entity are not pledged to the payment of the
principal of or interest on the bond.
(c) An authority may not incur a financial obligation that
cannot be paid from revenue derived from owning or operating the
authority's water projects or from other revenue provided by law.
Sec. 251.254. EFFECT OF LIEN. (a) A lien on or a pledge of
revenue from a water project or a reserve, replacement, or other
fund established in connection with a bond issued under this
chapter:
(1) is enforceable at the time of payment for and
delivery of the bond;
(2) applies to each item on hand or subsequently
received;
(3) applies without physical delivery of an item or
other act; and
(4) is enforceable against any person having a claim,
in tort, contract, or other remedy, against the applicable
authority without regard to whether the person has notice of the
lien or pledge.
(b) A bond resolution is not required to be recorded except
in the regular records of the authority.
Sec. 251.255. BOND INDENTURE. (a) Bonds issued by an
authority under this chapter may be secured by a bond indenture
between the authority and a corporate trustee that is a trust
company or a bank that has the powers of a trust company.
(b) A bond indenture may pledge or assign the revenues to be
received but may not convey or mortgage any part of a water project.
(c) A bond indenture may:
(1) set forth the rights and remedies of the
bondholders and the trustee;
(2) restrict the individual right of action by
bondholders as is customary in trust agreements or indentures of
trust securing corporate bonds and debentures; and
(3) contain provisions the authority determines
reasonable and proper for the security of the bondholders,
including covenants:
(A) establishing the authority's duties relating
to:
(i) the acquisition of property;
(ii) the construction, maintenance,
operation, and repair of and insurance for a water project; and
(iii) custody, safeguarding, and
application of money;
(B) prescribing events that constitute default;
(C) prescribing terms on which any or all of the
bonds become or may be declared due before maturity; and
(D) relating to the rights, powers, liabilities,
or duties that arise on the breach of a duty of the authority.
(d) An expense incurred in carrying out a trust agreement
may be treated as part of the cost of operating the water project.
(e) In addition to all other rights by mandamus or other
court proceeding, an owner or trustee of a bond issued under this
chapter may enforce the owner's rights against an issuing
authority, the authority's employees, the authority's board, or an
agent or employee of the authority's board and is entitled to:
(1) require the authority or the board to impose and
collect fees, charges, and other revenue sufficient to carry out
any agreement contained in the bond proceedings; and
(2) apply for and obtain the appointment of a receiver
for the water project or system.
Sec. 251.256. APPROVAL OF BONDS BY ATTORNEY GENERAL. (a)
An authority shall submit to the attorney general for examination
the record of proceedings relating to bonds authorized under this
chapter. The record shall include the bond proceedings and any
contract securing or providing revenue for the payment of the
bonds.
(b) If the attorney general determines that the bonds, the
bond proceedings, and any supporting contract are authorized by
law, the attorney general shall approve the bonds and deliver to the
comptroller:
(1) a copy of the legal opinion of the attorney general
stating the approval; and
(2) the record of proceedings relating to the
authorization of the bonds.
(c) On receipt of the legal opinion of the attorney general
and the record of proceedings relating to the authorization of the
bonds, the comptroller shall register the record of proceedings.
(d) After approval by the attorney general, the bonds, the
bond proceedings, and any supporting contract are valid,
enforceable, and incontestable in any court or other forum for any
reason and are binding obligations according to their terms for all
purposes.
Sec. 251.257. FURNISHING OF INDEMNIFYING BONDS OR PLEDGES
OF SECURITIES. (a) A bank or trust company incorporated under the
laws of this state that acts as depository of the proceeds of bonds
or of revenue may furnish indemnifying bonds or pledge securities
that an authority requires.
(b) Bonds of an authority may secure the deposit of public
money of this state or a political subdivision of this state to the
extent of the lesser of the face value of the bonds or their market
value.
Sec. 251.258. APPLICABILITY OF OTHER LAW; CONFLICTS. All
laws affecting the issuance of bonds by local governmental
entities, including Chapters 1201, 1202, 1204, and 1371, Government
Code, apply to bonds issued under this chapter. To the extent of a
conflict between those laws and this chapter, the provisions of
this chapter prevail.
Sec. 251.259. REVENUE; SINKING FUND. (a) An authority may
impose fees or other charges related to each of its water projects.
(b) Revenue derived from a water project for which bonds are
issued, other than any part necessary to pay the cost of
maintenance, repair, and operation and to provide reserves for
those costs as provided in the bond proceedings, shall be set aside
at regular intervals as provided in the bond resolution or trust
agreement in a sinking fund that is pledged to and charged with the
payment of:
(1) interest on the bonds as it becomes due;
(2) principal of the bonds as it becomes due;
(3) necessary charges of paying agents for paying
principal and interest;
(4) the redemption price or the purchase price of
bonds retired by call or purchase as provided in the bond
proceedings; and
(5) any amounts due under credit agreements.
(c) Use and disposition of money deposited to the credit of
the sinking fund is subject to the bond proceedings.
(d) To the extent permitted under the applicable bond
proceedings, revenue from one water project of an authority may be
used to pay the cost of another water project of the authority.
(e) An authority may not use revenue from a water project in
a manner not authorized by this chapter. Except as provided by this
chapter, revenue derived from a water project may not be applied for
a purpose or to pay a cost other than a purpose or cost that is
reasonably related to or anticipated to be for the benefit of a
water project.
Sec. 251.260. AUTHORITY REVOLVING FUND. (a) An authority
may maintain a revolving fund to be held in trust by a banking
institution chosen by the authority separate from any other funds
and administered by the authority's board.
(b) An authority may transfer into its revolving fund money
from any permissible source, including:
(1) money from a water project if the transfer does not
diminish the money available for the project to less than any amount
required to be retained by the bond proceedings pertaining to the
project;
(2) money received by the authority from any source
and not otherwise committed, including money from the transfer of a
water project or system or sale of authority assets; and
(3) contributions, loans, grants, or assistance from
the United States, another state, another political subdivision of
this state, a foreign governmental entity, including the United
Mexican States or a state of the United Mexican States, a local
government, any private enterprise, or any person.
(c) The authority may use money in the revolving fund to:
(1) finance the acquisition, construction,
maintenance, or operation of a water project, including the
extension, expansion, or improvement of a water project;
(2) provide matching money required in connection with
any federal, state, local, or private aid, grant, or other funding,
including aid or funding by or with public-private partnerships;
(3) provide credit enhancement either directly or
indirectly for bonds issued to acquire, construct, extend, expand,
or improve a water project;
(4) provide security for or payment of future or
existing debt for the design, acquisition, construction,
operation, maintenance, extension, expansion, or improvement of a
water project or system;
(5) borrow money and issue promissory notes or other
indebtedness payable out of the revolving fund for any purpose
authorized by this chapter; and
(6) provide for any other reasonable purpose that
assists in the financing of an authority as authorized by this
chapter.
(d) Money spent or advanced from the revolving fund for a
water project must be reimbursed from the money of that water
project. There must be a reasonable expectation of repayment at the
time the expenditure or advancement is authorized.
Sec. 251.261. EXEMPTION FROM TAXATION OR ASSESSMENT. (a)
An authority is exempt from taxation of or assessments on:
(1) a water project or system;
(2) property the authority acquires or uses under this
chapter for a water project or system; or
(3) income from property described by Subdivision (1)
or (2).
(b) An authority is exempt from payment of development fees,
utility connection fees, assessments, and service fees imposed or
assessed by any governmental entity or any property owners' or
homeowners' association. This subsection does not apply to fees or
assessments charged under approved rate schedules or line extension
policies of a municipally owned electric or gas utility.
Sec. 251.262. PERFORMANCE AND PAYMENT BONDS AND SECURITY.
Notwithstanding Chapter 2253, Government Code, an authority shall
require any party to an agreement to operate or maintain a water
project to provide performance and payment bonds or other forms of
security, including a corporate guarantee, in amounts considered by
the authority to be adequate to protect the authority and to assure
performance of all obligations to the authority and to
subcontractors providing materials or labor for a water project.
SUBCHAPTER G. DISSOLUTION OF AUTHORITY
Sec. 251.301. VOLUNTARY DISSOLUTION. (a) An authority may
not be dissolved unless the dissolution is approved by the
commission.
(b) A board may submit a request to the commission for
approval to dissolve.
(c) The commission may approve a request to dissolve only
if:
(1) all debts, obligations, and liabilities of the
authority have been paid and discharged or adequate provision has
been made for the payment of all debts, obligations, and
liabilities; and
(2) there are no suits pending against the authority,
or adequate provision has been made for the satisfaction of any
judgment, order, or decree that may be entered against it in any
pending suit.
Sec. 251.302. INVOLUNTARY DISSOLUTION. (a) The commission
by order may require an authority to dissolve if the commission
determines that the authority has not substantially complied with
the requirements of a commission rule.
(b) The commission may not require dissolution unless:
(1) the conditions described in Section 251.301(c)
have been met; and
(2) the holders of any indebtedness have evidenced
their agreement to the dissolution.
SECTION 2. The Texas Commission on Environmental Quality
shall adopt rules necessary to implement Chapter 251, Water Code,
as added by this Act, not later than March 1, 2014.
SECTION 3. This Act takes effect September 1, 2013.