Texas 2017 - 85th Regular

Texas Senate Bill SB1198 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	85R29617 TSR-F
2		-	By: Zaffirini, et al. S.B. No. 1198
3		-	(Isaac)
4		-	Substitute the following for S.B. No. 1198: No.
	1	+	S.B. No. 1198
5	2
6	3
7		-	A BILL TO BE ENTITLED
8	4		AN ACT
9	5		relating to the conversion of the Hays Caldwell Public Utility
10	6		Agency to the Alliance Regional Water Authority; providing
11	7		authority to issue bonds; granting the power of eminent domain;
12	8		providing authority to impose fees.
13	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	10		SECTION 1. (a) The Hays Caldwell Public Utility Agency is
15	11		converted to a conservation and reclamation district to be known as
16	12		the Alliance Regional Water Authority located in Bexar, Caldwell,
17	13		Comal, Guadalupe, and Hays Counties.
18	14		(b) The Alliance Regional Water Authority is not required to
19	15		hold an election to confirm the creation of the authority.
20	16		SECTION 2. Subtitle X, Title 6, Special District Local Laws
21	17		Code, is amended by adding Chapter 11010 to read as follows:
22	18		CHAPTER 11010. ALLIANCE REGIONAL WATER AUTHORITY
23	19		SUBCHAPTER A. GENERAL PROVISIONS
24	20		Sec. 11010.001. DEFINITIONS. In this chapter:
25	21		(1) "Authority" means the Alliance Regional Water
26	22		Authority.
27	23		(2) "Board" means the board of directors of the
28	24		authority.
29	25		(3) "Director" means a member of the board.
30	26		(4) "District" means any district or authority created
31	27		under Section 52, Article III, or Section 59, Article XVI, Texas
32	28		Constitution, regardless of the manner of creation.
33	29		(5) "Local government" means:
34	30		(A) a municipality, county, district, or other
35	31		political subdivision of this state;
36	32		(B) a local government corporation;
37	33		(C) a nonprofit corporation created to act on
38	34		behalf of a local government; or
39	35		(D) a combination of two or more of the entities
40	36		described by this subdivision.
41	37		(6) "Private entity" includes an individual,
42	38		corporation, organization, business trust, estate, trust,
43	39		partnership, and association and any other legal entity that is not
44	40		a governmental body or agency.
45	41		(7) "Sponsor" means:
46	42		(A) the City of Kyle;
47	43		(B) the City of San Marcos;
48	44		(C) the City of Buda;
49	45		(D) the Canyon Regional Water Authority; and
50	46		(E) any other local government or private entity
51	47		added to the authority as a sponsor under Section 11010.005.
52	48		(8) "Water" includes:
53	49		(A) groundwater, percolating or otherwise,
54	50		notwithstanding the quality of the groundwater;
55	51		(B) any surface water, naturally or artificially
56	52		impounded or in a navigable or nonnavigable watercourse; and
57	53		(C) municipal wastewater or industrial
58	54		wastewater, including municipal wastewater or industrial
59	55		wastewater that has been treated to a quality suitable for reuse for
60	56		a beneficial use.
61	57		Sec. 11010.002. NATURE OF AUTHORITY. The authority is a
62	58		regional water authority in Bexar, Caldwell, Comal, Guadalupe, and
63	59		Hays Counties created under and essential to accomplish the
64	60		purposes of Section 59, Article XVI, Texas Constitution.
65	61		Sec. 11010.003. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
66	62		(a) The authority is created to serve a public use and benefit.
67	63		(b) All land and other property included in the territory of
68	64		the authority will benefit from the works and projects to be
69	65		accomplished by the authority under powers conferred by Section 59,
70	66		Article XVI, Texas Constitution, and powers granted under this
71	67		chapter.
72	68		Sec. 11010.004. AUTHORITY TERRITORY. (a) The authority is
73	69		composed of the territory:
74	70		(1) of the sponsors, including territory within the
75	71		municipal boundaries of a sponsor that is a municipality;
76	72		(2) located in the service areas of the sponsors as
77	73		provided by the sponsors' respective certificates of convenience
78	74		and necessity; and
79	75		(3) added to and not excluded from the authority in
80	76		accordance with applicable law.
81	77		(b) Territory added to the authority may be in a county
82	78		other than a county listed in Section 11010.002.
83	79		Sec. 11010.005. METHOD OF ADDING SPONSORS. (a) The
84	80		governing body of a local government or a private entity, including
85	81		a water supply corporation, may petition the board to add that local
86	82		government or private entity as a sponsor.
87	83		(b) A petition under Subsection (a) must be submitted in the
88	84		manner and form required by board rule.
89	85		(c) On receipt of a petition under Subsection (a), the board
90	86		shall set a hearing on the petition and provide notice of the date,
91	87		time, place, and purpose of the hearing to:
92	88		(1) the sponsors of the authority; and
93	89		(2) the petitioning local government or private
94	90		entity.
95	91		(d) At the hearing, the board shall determine whether:
96	92		(1) the local government or private entity will
97	93		benefit from being added to the authority as a sponsor; and
98	94		(2) it is in the best interest of the authority to add
99	95		the local government or private entity to the authority as a
100	96		sponsor.
101	97		(e) If, after a hearing on the petition, the board
102	98		determines that the local government or private entity should be
103	99		added to the authority as a sponsor, the board shall issue an order:
104	100		(1) adding the local government or private entity to
105	101		the authority;
106	102		(2) adding the local government's or private entity's
107	103		territory or service area to the territory of the authority;
108	104		(3) making the local government's or private entity's
109	105		territory or service area subject to the privileges, duties,
110	106		assets, and financial obligations of the authority to the same
111	107		degree as other sponsors already included in the authority; and
112	108		(4) stating the proposed effective date of the order.
113	109		(f) An order issued under Subsection (e) takes effect on the
114	110		proposed effective date except as otherwise provided by this
115	111		section. If the subject of the order is a local government, the
116	112		proposed effective date must allow enough time for the local
117	113		government to comply with Subsections (g) and (h).
118	114		(g) A local government that is the subject of an order
119	115		issued under Subsection (e) shall publish notice of the authority's
120	116		proposal to add the local government to the authority as a sponsor.
121	117		The notice must:
122	118		(1) be published in a newspaper of general circulation
123	119		in the county in which the local government is located;
124	120		(2) be published at least once per week for two
125	121		consecutive weeks and with the first publication appearing on or
126	122		before the 14th day before the proposed effective date of the order;
127	123		(3) state the proposed effective date of the order
128	124		adding the local government to the authority as a sponsor; and
129	125		(4) include information regarding the right of the
130	126		local government's voters to petition the governing body of the
131	127		local government to call an election on the question of authorizing
132	128		the addition of the local government to the authority as a sponsor
133	129		and the method of making the petition.
134	130		(h) If the governing body of the local government, before
135	131		the proposed effective date of the order, receives a petition
136	132		calling for an election on the question of authorizing the addition
137	133		of the local government to the authority as a sponsor that is signed
138	134		by at least 10 percent of the local government's registered voters,
139	135		the governing body shall order a special election on the question.
140	136		Section 41.001(a), Election Code, does not apply to an election
141	137		ordered under this subsection.
142	138		(i) On receipt of a qualifying petition under Subsection
143	139		(h), the effective date of the order issued under Subsection (e) is
144	140		suspended until after the date of the election and the governing
145	141		body of the local government shall notify the board of the petition
146	142		and suspension.
147	143		(j) If a majority of voters voting in an election held under
148	144		this section vote in favor of the addition of the local government
149	145		to the authority as a sponsor, the order issued under Subsection (e)
150	146		takes effect on the date the result is declared. If a majority of
151	147		voters voting in the election vote against the addition of the local
152	148		government to the authority as a sponsor, the order issued under
153	149		Subsection (e) is ineffective.
154	150		Sec. 11010.006. METHOD OF REMOVING SPONSORS. (a) The
155	151		governing body of a local government or private entity that is a
156	152		sponsor of the authority may petition the board to be removed from
157	153		the authority as a sponsor.
158	154		(b) A petition under Subsection (a) must be submitted in the
159	155		manner and form required by board rule.
160	156		(c) After receiving a petition under Subsection (a), the
161	157		board shall decide whether the petitioning sponsor should be
162	158		removed from the authority as a sponsor and shall by order approve,
163	159		conditionally approve, or disapprove the petition.
164	160		(d) The board may not approve a petition submitted to the
165	161		board under this section if that action would impair or violate or
166	162		conflict with the terms of any outstanding bonds, notes, or other
167	163		obligations of the authority.
168	164		(e) An order issued under Subsection (c) that approves or
169	165		conditionally approves a sponsor's petition to be removed from the
170	166		authority as a sponsor must address:
171	167		(1) all matters related to the removal as determined
172	168		by the board, including the removal of the territory of the sponsor
173	169		and territory located in the service area of the sponsor as provided
174	170		by the sponsor's certificate of convenience and necessity; and
175	171		(2) if applicable, any conditions imposed by the board
176	172		that the petitioning sponsor must satisfy before the board approves
177	173		the petition, which may include:
178	174		(A) payment by the petitioning sponsor of all
179	175		bonds, notes, or other obligations issued by the authority on
180	176		behalf of the sponsor;
181	177		(B) payment by the petitioning sponsor of the
182	178		sponsor's pro rata share of any bond, note, or other obligation
183	179		issued by the authority, other than the bonds, notes, or other
184	180		obligations described by Paragraph (A), if the payment is allowed
185	181		under the terms of the bond, note, or other obligation;
186	182		(C) conditions related to the ownership or
187	183		transfer of ownership of real property, facilities, equipment,
188	184		personnel, and supplies; and
189	185		(D) conditions the authority considers necessary
190	186		for the winding up of activities in connection with the removal of
191	187		the petitioning sponsor as a sponsor from the authority.
192	188		(f) If the board by order conditionally approves a sponsor's
193	189		petition under Subsection (c), the petitioning sponsor remains a
194	190		sponsor and shall make all payments owed to the authority when due
195	191		and shall satisfy all conditions included in the order. The board
196	192		shall approve the petition immediately after all required payments
197	193		to the authority are received and all conditions included in the
198	194		order are satisfied as determined by the board.
199	195		(g) The removal of a local government or private entity from
200	196		the authority as a sponsor under this section does not prohibit the
201	197		local government or private entity from contracting with the
202	198		authority for the provision of water supply, wastewater treatment,
203	199		or other services provided by the authority.
204	200		Sec. 11010.007. REAPPORTIONMENT OF DIRECTORS. After the
205	201		addition or removal of a sponsor under this subchapter, the board by
206	202		rule shall reapportion the directors of the authority among the
207	203		sponsors in accordance with Section 11010.051(c)(2). The board may
208	204		increase or decrease the number of directors on the board in
209	205		accordance with Section 11010.051(a).
210	206		Sec. 11010.008. LIBERAL CONSTRUCTION OF CHAPTER. This
211	207		chapter shall be liberally construed to effect its purposes.
212	208		SUBCHAPTER B. BOARD OF DIRECTORS
213	209		Sec. 11010.051. DIRECTORS. (a) The authority is governed
214	210		by a board of directors consisting of at least 7 and not more than 17
215	211		members.
216	212		(b) The board is responsible for the management, operation,
217	213		and control of the authority.
218	214		(c) The board by rule shall:
219	215		(1) establish the number of directors of the
220	216		authority; and
221	217		(2) apportion the directors for each sponsor based on
222	218		the amount of water contracted to be supplied to the sponsor under
223	219		the terms of the authority's water supply contract with the
224	220		sponsor, subject to Section 11010.053(a).
225	221		Sec. 11010.052. ELIGIBILITY TO SERVE AS DIRECTOR. (a) To
226	222		be eligible to serve as a director, a person must be:
227	223		(1) at least 18 years of age; and
228	224		(2) a resident of the territory located in the
229	225		authority or an employee of a sponsor.
230	226		(b) A director who also serves on the governing body of a
231	227		sponsor is not a dual officeholder and is not prohibited by the
232	228		common law doctrine of incompatibility from serving on both the
233	229		board and the governing body.
234	230		(c) Service on the board by a public officeholder is an
235	231		additional duty of that person's office.
236	232		Sec. 11010.053. APPOINTMENT OF DIRECTORS. (a) Each
237	233		sponsor is entitled to appoint at least one director.
238	234		(b) Each director must be appointed by the governing body of
239	235		a sponsor in accordance with the rules adopted under Section
240	236		11010.051 that govern the apportionment of directors among the
241	237		sponsors.
242	238		(c) Directors must be appointed not earlier than April 1 and
243	239		not later than April 30 of each year.
244	240		Sec. 11010.054. TERMS OF OFFICE. (a) Directors serve
245	241		staggered three-year terms, with one-third or as near as possible
246	242		to one-third of the members' terms expiring April 30 of each year.
247	243		(b) A director's term begins on May 1 of the year the
248	244		director is appointed.
249	245		(c) A director may not serve more than five consecutive
250	246		terms as a director.
251	247		Sec. 11010.055. REMOVAL OF DIRECTOR. A sponsor that
252	248		appoints a director may remove the director from office at any time,
253	249		with or without cause.
254	250		Sec. 11010.056. BOARD VACANCY. If there is a vacancy on the
255	251		board, the governing body of the sponsor that appointed the
256	252		director who vacated the office shall appoint a director to serve
257	253		the remainder of the term.
258	254		Sec. 11010.057. VOTING AUTHORITY. Each director is
259	255		entitled to one vote on any issue before the board.
260	256		Sec. 11010.058. OFFICERS. At the first meeting of the board
261	257		after May 1 of each year, the board shall elect officers for the
262	258		authority, including a chair, vice chair, secretary, and treasurer.
263	259		Sec. 11010.059. MEETINGS AND ACTIONS OF BOARD; QUORUM.
264	260		(a) The board may meet as many times each year as the board
265	261		considers appropriate.
266	262		(b) A majority of the membership of the board constitutes a
267	263		quorum at a meeting of the board.
268	264		(c) A concurrence of a majority of the directors present and
269	265		voting is sufficient for transacting any business of the authority
270	266		unless other applicable law, or the authority by rule, requires a
271	267		concurrence of a greater number of directors for a specific type of
272	268		decision.
273	269		(d) Directors of the authority are public officials and are
274	270		entitled to governmental immunity for their actions in their
275	271		capacity as directors and officers of the authority.
276	272		SUBCHAPTER C. POWERS AND DUTIES
277	273		Sec. 11010.101. GENERAL POWERS AND DUTIES. (a) The
278	274		authority may:
279	275		(1) acquire, purchase, own, hold, lease, construct,
280	276		improve, and maintain a reservoir, groundwater well, or other
281	277		source of water supply, including:
282	278		(A) groundwater, surface water, and wastewater
283	279		reused directly or indirectly; and
284	280		(B) aquifer storage and recovery facilities;
285	281		(2) acquire, own, construct, operate, repair,
286	282		improve, maintain, or extend, inside or outside the authority's
287	283		boundaries, water and wastewater works, improvements, facilities,
288	284		plants, pipelines, equipment, and appliances for:
289	285		(A) the treatment and transportation of water and
290	286		wastewater;
291	287		(B) the direct or indirect reuse of wastewater;
292	288		(C) aquifer storage and recovery projects; and
293	289		(D) the provision of wholesale water and
294	290		wastewater services to authority customers, municipalities,
295	291		districts, water supply corporations, and other persons in this
296	292		state;
297	293		(3) acquire, purchase, own, hold, lease, and maintain
298	294		interests, including capacity rights and other contractual rights,
299	295		in sources of water supply, reservoirs, groundwater wells, water
300	296		and wastewater systems, treatment works, improvements, facilities,
301	297		plants, equipment, appliances, aquifer storage and recovery
302	298		projects, and the direct or indirect reuse of wastewater;
303	299		(4) finance any purchase or acquisition through a
304	300		bond, note, or other obligation under Subchapter E, or through a
305	301		lease-purchase agreement; and
306	302		(5) sell, lease, convey, or otherwise dispose of any
307	303		right, interest, or property the authority considers to be
308	304		unnecessary for the efficient operation or maintenance of the
309	305		authority's facilities.
310	306		(b) In addition to the powers specifically provided by this
311	307		chapter, the authority may exercise the powers provided by Section
312	308		65.201, Water Code.
313	309		Sec. 11010.102. AUTHORITY POLICIES, RULES, AND BYLAWS. The
314	310		authority may adopt and enforce policies, rules, and bylaws
315	311		reasonably required to implement this chapter, including rules
316	312		governing procedures before the board and rules regarding
317	313		implementation, enforcement, and any other matters related to the
318	314		exercise of the rights, powers, privileges, and functions conferred
319	315		on the authority by this chapter for the provision of water and
320	316		wastewater service.
321	317		Sec. 11010.103. EMINENT DOMAIN. (a) The authority may
322	318		exercise the power of eminent domain to acquire a fee simple or
323	319		other interest in property if the interest is necessary for the
324	320		authority to exercise the rights or authority conferred by this
325	321		chapter.
326	322		(b) The authority shall exercise the right of eminent domain
327	323		in the manner provided by Chapter 21, Property Code. The authority
328	324		is not required to give bond for appeal or bond for costs in a
329	325		condemnation suit or other suit to which it is a party.
330	326		(c) The authority may not use the power of eminent domain
331	327		for the condemnation of land for the purpose of acquiring rights to
332	328		groundwater or for the purpose of acquiring water or water rights.
333	329		Sec. 11010.104. WATER CONSERVATION OR DROUGHT CONTINGENCY
334	330		PLANS. The authority by rule may develop, prepare, revise, adopt,
335	331		implement, enforce, and manage water conservation or drought
336	332		contingency plans for the authority or any portion of the
337	333		authority.
338	334		Sec. 11010.105. SPONSOR CONVEYANCES AND ACQUISITIONS.
339	335		(a) In this section, "utility system" has the meaning assigned by
340	336		Section 1502.001, Government Code.
341	337		(b) A sponsor may convey a utility system facility or asset
342	338		or the sponsor's interest in a utility system facility or asset to
343	339		the authority without holding an election to approve the
344	340		conveyance.
345	341		(c) A sponsor is exempt from the provisions of Chapter 1502,
346	342		Government Code, regarding the conveyance, sale, or acquisition of
347	343		a utility system, or any related works, improvements, facilities,
348	344		plants, equipment, or appliances.
349	345		Sec. 11010.106. CONTRACTS. (a) The authority may contract
350	346		with any person to carry out a power authorized by this chapter.
351	347		(b) A person who enters into a contract with the authority
352	348		may pledge to the payment of the contract any source of revenue that
353	349		may be available to the person, including ad valorem taxes, if the
354	350		person has the authority to impose those taxes.
355	351		(c) Payments made under a contract with the authority
356	352		constitute an operating expense of the person served under the
357	353		contract, unless otherwise prohibited by a previously outstanding
358	354		obligation of the person. To the extent a person pledges funds to
359	355		the payment of the contract that are to be derived from the person's
360	356		own water system, the payments constitute an operating expense of
361	357		that system.
362	358		Sec. 11010.107. COOPERATIVE CONTRACTS. The authority may
363	359		enter into an interlocal contract with a local government under
364	360		Chapter 791, Government Code, to carry out a power of the authority.
365	361		Sec. 11010.108. RATES AND FEES. (a) The authority shall
366	362		establish rates and fees to be assessed against sponsors and
367	363		customers of the authority. The rates and fees may be established
368	364		by classes of customers, by project, or by area of service.
369	365		(b) A sponsor, local government, water supply corporation,
370	366		private entity, or other person that contracts with the authority
371	367		shall establish, charge, and collect fees, rates, charges, rentals,
372	368		and other amounts for any service or facility provided under or in
373	369		connection with a contract with the authority and shall pledge
374	370		sufficient amounts to make all payments required under the
375	371		contract.
376	372		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
377	373		Sec. 11010.151. AD VALOREM TAXES PROHIBITED. The authority
378	374		may not impose an ad valorem tax.
379	375		Sec. 11010.152. GIFTS, GRANTS, LOANS, AND OTHER FUNDS. The
380	376		authority may apply for, accept, receive, and administer gifts,
381	377		grants, loans, and other funds available from any source.
382	378		SUBCHAPTER E. BONDS, NOTES, AND OTHER OBLIGATIONS
383	379		Sec. 11010.201. REVENUE BONDS, NOTES, AND OTHER
384	380		OBLIGATIONS. (a) In addition to bonds, notes, and other
385	381		obligations that the authority is authorized to issue under other
386	382		law, to accomplish the purposes of the authority, the authority may
387	383		issue bonds, notes, or other obligations payable solely from and
388	384		secured by all or part of any funds or any revenue from any source or
389	385		sources, including:
390	386		(1) fees, rates, and other charges the authority
391	387		imposes or collects;
392	388		(2) the sale of:
393	389		(A) water;
394	390		(B) water or wastewater services;
395	391		(C) water rights or capacity;
396	392		(D) water transmission rights, capacity, or
397	393		services;
398	394		(E) water pumping;
399	395		(F) wastewater reused directly or indirectly;
400	396		(G) aquifer storage and recovery services;
401	397		(H) sewer services; or
402	398		(I) any other service or product of the authority
403	399		provided inside or outside the boundaries of the authority;
404	400		(3) grants or gifts;
405	401		(4) the ownership or operation of all or a designated
406	402		part of the authority's works, improvements, facilities, plants, or
407	403		equipment; and
408	404		(5) the proceeds of contracts.
409	405		(b) Bonds, notes, or other obligations issued by the
410	406		authority may be first or subordinate lien obligations at the
411	407		board's discretion.
412	408		(c) In connection with any bonds, notes, or other
413	409		obligations of the authority, the authority may exercise any power
414	410		of an issuer under Chapter 1371, Government Code.
415	411		(d) The authority may conduct a public, private, or
416	412		negotiated sale of the bonds, notes, or other obligations.
417	413		(e) The authority may enter into one or more indentures of
418	414		trust to further secure its bonds, notes, or other obligations.
419	415		(f) The authority may issue bonds, notes, or other
420	416		obligations in more than one series as necessary to carry out the
421	417		purposes of this chapter. In issuing bonds, notes, or other
422	418		obligations secured by revenue of the authority, the authority may
423	419		reserve the right to issue additional bonds, notes, or other
424	420		obligations secured by the authority's revenue that are on parity
425	421		with or are senior or subordinate to the bonds, notes, or other
426	422		obligations issued earlier.
427	423		(g) A resolution of the board or a trust indenture securing
428	424		the bonds, notes, or other obligations may specify additional
429	425		provisions that constitute a contract between the authority and the
430	426		authority's bondholders, noteholders, or other obligation holders.
431	427		(h) Bonds, notes, or other obligations may be additionally
432	428		secured by deed of trust or mortgage on any or all of the
433	429		authority's facilities.
434	430		(i) The authority provided by this chapter for the
435	431		authorization and issuance of bonds, notes, and other obligations
436	432		is in addition to, and not in lieu of, the authority otherwise
437	433		established under general law and may not be construed as a
438	434		limitation on, or a modification of, general law providing for
439	435		authorization and issuance of bonds, notes, and other forms of
440	436		obligations. Nothing in this chapter may be construed as affecting
441	437		any existing contract, bond, note, or other obligation of the
442	438		authority or any indenture, covenant, mortgage, or other agreement
443	439		relating to them.
444	440		Sec. 11010.202. ELECTION NOT REQUIRED. The authority is
445	441		not required to hold an election to approve the issuance of revenue
446	442		bonds or notes or of other obligations under this subchapter.
447	443		Sec. 11010.203. USE OF REVENUE AND GROWTH PROJECTIONS. For
448	444		the purposes of attorney general review and approval and in lieu of
449	445		any other manner of demonstrating the ability to pay debt service
450	446		and satisfy any other pecuniary obligations relating to bonds,
451	447		notes, or other obligations, the authority may demonstrate the
452	448		authority's ability to satisfy the debt service and those
453	449		obligations using accumulated funds of the authority and revenue
454	450		and growth projections prepared by a professional utility rate
455	451		consultant at the direction of the authority. If the resolution
456	452		authorizing the issuance of the bonds, notes, or other obligations
457	453		provides that the authority intends to increase rates to the extent
458	454		necessary to pay debt service and satisfy any other pecuniary
459	455		obligations arising under the bonds, notes, or other obligations,
460	456		the revenue projections prepared by a professional utility rate
461	457		consultant may include forecast rate increases and accumulated and
462	458		available fund balances as determined by the authority.
463	459		Sec. 11010.204. REFUNDING BONDS. The authority may issue
464	460		refunding bonds, notes, and other obligations to refund any of its
465	461		bonds, notes, or other obligations in any manner provided by law,
466	462		including Chapter 1207, Government Code.
467	463		Sec. 11010.205. BONDS, NOTES, AND OTHER OBLIGATIONS EXEMPT
468	464		FROM TAXATION. A bond, note, or other obligation issued under this
469	465		chapter, a transaction related to the bond, note, or other
470	466		obligation, the interest on the bond, note, or other obligation,
471	467		and the profit from the sale of the bond, note, or other obligation
472	468		are exempt from taxation by this state or a political subdivision of
473	469		this state.
474	470		SECTION 3. On the effective date of this Act:
475	471		(1) the Alliance Regional Water Authority shall assume
476	472		all assets, liabilities, bonds, notes, and other obligations of the
477	473		Hays Caldwell Public Utility Agency;
478	474		(2) all contracts and written agreements of the Hays
479	475		Caldwell Public Utility Agency are assigned to and assumed by the
480	476		Alliance Regional Water Authority; and
481	477		(3) the Alliance Regional Water Authority may refund
482	478		all or a portion of the bonds, notes, or other obligations issued by
483	479		the Hays Caldwell Public Utility Agency in any manner provided by
484	480		law, including Chapter 1207, Government Code.
485	481		SECTION 4. (a) The sponsors of the Alliance Regional Water
486	482		Authority shall appoint the initial directors under Section
487	483		11010.053, Special District Local Laws Code, as added by this Act,
488	484		not earlier than April 1, 2018, and not later than April 30, 2018.
489	485		Directors of the Hays Caldwell Public Utility Agency serving on the
490	486		effective date of this Act shall serve as the temporary directors of
491	487		the Alliance Regional Water Authority until the initial directors
492	488		take office on May 1, 2018.
493	489		(b) As soon as practicable after the initial directors have
494	490		been appointed under Section 11010.053, Special District Local Laws
495	491		Code, as added by this Act, the initial directors shall draw lots to
496	492		determine which directors serve a one-year term expiring April 30,
497	493		2019, which directors serve a two-year term expiring April 30,
498	494		2020, and which directors serve a three-year term expiring April
499	495		30, 2021. The lots must be split into thirds or as near to thirds as
500	496		possible.
501	497		(c) This section expires January 1, 2022.
502	498		SECTION 5. (a) The legal notice of the intention to
503	499		introduce this Act, setting forth the general substance of this
504	500		Act, has been published as provided by law, and the notice and a
505	501		copy of this Act have been furnished to all persons, agencies,
506	502		officials, or entities to which they are required to be furnished
507	503		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
508	504		Government Code.
509	505		(b) The governor, one of the required recipients, has
510	506		submitted the notice and Act to the Texas Commission on
511	507		Environmental Quality.
512	508		(c) The Texas Commission on Environmental Quality has filed
513	509		its recommendations relating to this Act with the governor, the
514	510		lieutenant governor, and the speaker of the house of
515	511		representatives within the required time.
516	512		(d) All requirements of the constitution and laws of this
517	513		state and the rules and procedures of the legislature with respect
518	514		to the notice, introduction, and passage of this Act are fulfilled
519	515		and accomplished.
520	516		SECTION 6. This Act takes effect immediately if it receives
521	517		a vote of two-thirds of all the members elected to each house, as
522	518		provided by Section 39, Article III, Texas Constitution. If this
523	519		Act does not receive the vote necessary for immediate effect, this
524	520		Act takes effect September 1, 2017.
	521	+	______________________________ ______________________________
	522	+	President of the Senate Speaker of the House
	523	+	I hereby certify that S.B. No. 1198 passed the Senate on
	524	+	April 18, 2017, by the following vote: Yeas 28, Nays 3; and that
	525	+	the Senate concurred in House amendment on May 27, 2017, by the
	526	+	following vote: Yeas 28, Nays 3.
	527	+	______________________________
	528	+	Secretary of the Senate
	529	+	I hereby certify that S.B. No. 1198 passed the House, with
	530	+	amendment, on May 24, 2017, by the following vote: Yeas 137,
	531	+	Nays 9, two present not voting.
	532	+	______________________________
	533	+	Chief Clerk of the House
	534	+	Approved:
	535	+	______________________________
	536	+	Date
	537	+	______________________________
	538	+	Governor