Texas 2019 - 86th Regular

Texas House Bill HB1958 Compare Versions

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11 86R4517 SLB-F
22 By: Thompson of Brazoria H.B. No. 1958
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the territory, powers, and administration of the Gulf
88 Coast Water Authority.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Sections 2 and 3, Chapter 712, Acts of the 59th
1111 Legislature, Regular Session, 1965, are amended to read as follows:
1212 Sec. 2. The District's territory is [District shall be
1313 comprised of all of the territory contained within Galveston
1414 County, Texas, and its boundaries shall be the same as and]
1515 coextensive with the boundaries of Brazoria, Fort Bend, and
1616 Galveston Counties [County, Texas].
1717 Sec. 3. Except as expressly limited by this Act, the
1818 District shall have and exercise and is hereby vested with all
1919 rights, powers, privileges, and authority conferred by the General
2020 Laws of this State now in force or hereafter enacted applicable to
2121 municipal utility districts created under authority of Section 59
2222 of Article XVI, Constitution of Texas including without limitation
2323 those conferred by Chapters 49 and [Chapter] 54, Water Code, as
2424 amended, but to the extent that the provisions of such General Laws
2525 may be in conflict or inconsistent with the provisions of this Act,
2626 the provisions of this Act shall prevail. All such General Laws are
2727 hereby adopted and incorporated by reference with the same effect
2828 as if incorporated in full in this Act. Without in any way limiting
2929 the generalization of the foregoing, it is expressly provided that
3030 the District shall have, and is hereby authorized to exercise, the
3131 following rights, powers, privileges and functions:
3232 (a) the power to make, construct, or otherwise acquire
3333 improvements either within or without the boundaries thereof
3434 necessary to carry out the powers and authority granted by this Act
3535 and said General Laws and to exercise the power of eminent domain
3636 for such purposes; provided, however, that the District shall not
3737 have the power of eminent domain as to all or any part of the water
3838 supply, property, works or facilities of any private person or
3939 persons, or of any private or public corporation or association
4040 engaged in the business of supplying water in Brazoria County, Fort
4141 Bend County, or Galveston County, Texas, to any class of consumers
4242 for any use upon the effective date of this Act, but this provision
4343 shall not restrict the power of the District to acquire necessary
4444 crossing easements and rights-of-way;
4545 (b) to conserve, store, transport, treat and purify,
4646 distribute, sell and deliver water, both surface and underground,
4747 to persons, corporations, both public and private, political
4848 subdivisions of the State and others, and to purchase, construct or
4949 lease all property, works and facilities, both within and without
5050 the District, necessary or useful for such purposes;
5151 (c) to acquire water supplies from sources both within or
5252 without the boundaries of the District and to sell, transport and
5353 deliver water to customers situated within or without the District
5454 and to acquire all properties and facilities necessary or useful
5555 for such purposes, and for any or all of such purposes to enter into
5656 contracts with persons, corporations, both public and private, and
5757 political subdivisions of the State for such periods of time and on
5858 such terms and conditions as the Board of Directors may deem
5959 desirable;
6060 (d) subject to the provisions of this Act, to sell, lease,
6161 or exchange any property of any kind, or any interest therein, which
6262 is not necessary to the carrying on of the business of the District
6363 or the sale, lease, or exchange of which, in the judgment of the
6464 Board of Directors, is necessary for the exercise of the powers,
6565 rights, privileges, and functions conferred upon the District by
6666 this Act or by Chapters 49 and [Chapter] 54, Water Code, as amended;
6767 (e) subject to the provisions of this Act, to acquire by
6868 purchase, lease, gift, or otherwise, and to maintain, use, and
6969 operate any and all property of any kind, or any interest therein,
7070 within or without the boundaries of the District, necessary to the
7171 exercise of the powers, rights, privileges, and functions conferred
7272 by this Act or by Chapters 49 and [Chapter] 54, Water Code, as
7373 amended;
7474 (f) to construct, extend, improve, maintain, and
7575 reconstruct, to cause to be constructed, extended, improved,
7676 maintained, and reconstructed, and to use and operate, any and all
7777 facilities of any kind necessary to the exercise of such powers,
7878 rights, privileges, and functions;
7979 (g) to sue and be sued in its corporate name;
8080 (h) to adopt, use, and alter a corporate seal;
8181 (i) to invest and reinvest its funds;
8282 (j) to make bylaws for management and regulation of its
8383 affairs;
8484 (k) to appoint officers, agents, and employees, to
8585 prescribe their duties and fix their compensation;
8686 (l) to make contracts and to execute instruments convenient
8787 or necessary to the exercise of the powers, rights, privileges, and
8888 functions conferred by this Act or Chapters 49 and [Chapter] 54,
8989 Water Code, as amended, for such term and with such provisions as
9090 the Board of Directors may determine to be in the best interests of
9191 the District, including, without in any way limiting the generality
9292 of the foregoing, contracts with persons including the State of
9393 Texas, the United States of America and any corporation or agency
9494 thereof and districts, cities, towns, persons, organizations,
9595 firms, corporations or other entities as the Board of Directors may
9696 deem necessary or proper for or in connection with any of its
9797 corporate purposes;
9898 (m) to borrow money for its corporate purposes and, without
9999 limiting the generality of the foregoing, to borrow money, apply
100100 for and receive loans, and accept grants or contributions, directly
101101 or indirectly, from persons, including the State of Texas, the
102102 United States of America, or from any corporation, agency, or
103103 entity created or designated by the State of Texas or the United
104104 States of America, and in connection with any such loan, [or] grant,
105105 or contribution, to enter into such agreements as the State of
106106 Texas, the United States of America, or any such corporation,
107107 agency, or entity may require; and to make and issue its negotiable
108108 bonds or notes for money borrowed, in the manner and to the extent
109109 provided in this Act, and to refund or refinance any outstanding
110110 bonds, [or] notes, or loans, and to make and issue its negotiable
111111 bonds or notes therefor in the manner provided in this Act.
112112 SECTION 2. Chapter 712, Acts of the 59th Legislature,
113113 Regular Session, 1965, is amended by adding Sections 3B and 3C to
114114 read as follows:
115115 Sec. 3B. (a) In this section, "person" includes an
116116 individual, entity, partnership, and corporation. The term does
117117 not include a political subdivision or public agency.
118118 (b) Competitive bidding and contract procurement or
119119 delivery requirements otherwise applicable to the District do not
120120 apply to a contract or agreement made by the District with a person
121121 if:
122122 (1) the contract or agreement relates to a project for
123123 the acquisition or construction of equipment or facilities for the
124124 production, treatment, transmission, or delivery of water; and
125125 (2) payments made under the contract or agreement are
126126 for amounts substantially sufficient to finance a project described
127127 in Subdivision (1).
128128 Sec. 3C. (a) The Board by resolution may authorize the
129129 creation of a nonprofit corporation to assist and act for the
130130 district in implementing a project or providing a service
131131 authorized by this chapter.
132132 (b) The nonprofit corporation:
133133 (1) has each power of and is considered to be a local
134134 government corporation created under Subchapter D, Chapter 431,
135135 Transportation Code; and
136136 (2) may implement any project and provide any service
137137 authorized by this chapter.
138138 (c) The Board shall appoint the board of directors of the
139139 nonprofit corporation. The board of directors of the nonprofit
140140 corporation shall serve at the will of the district and in the same
141141 manner as the board of directors of a local government corporation
142142 created under Subchapter D, Chapter 431, Transportation Code.
143143 (d) The nonprofit corporation may not:
144144 (1) exercise the powers of a municipality or county;
145145 (2) participate in a project that the District is not
146146 authorized to participate in;
147147 (3) impose taxes; or
148148 (4) acquire, construct, or operate parks or
149149 recreational facilities.
150150 SECTION 3. Sections 4(a), (c), and (f), Chapter 712, Acts of
151151 the 59th Legislature, Regular Session, 1965, are amended to read as
152152 follows:
153153 (a) The District shall have no power or authority to levy
154154 and collect taxes on any property real, personal or mixed, within
155155 the boundaries of said District, nor shall the District have power
156156 or authority to issue bonds or create indebtedness which would in
157157 any way be payable from ad valorem taxes levied by the District upon
158158 property within said District; and provided further that said
159159 District shall have none of the powers conferred by General Law for
160160 the purposes of the collection, transportation, processing,
161161 disposal and control of domestic, industrial or communal wastes,
162162 and the gathering, conducting, directing and controlling of local
163163 storm waters, or other local harmful excesses of water except as
164164 directly related to the production and purification of water for
165165 agricultural, municipal, or industrial purposes, including the
166166 ownership, lease, or operation of a municipal wastewater treatment
167167 facility in which the effluent is used by the District for water
168168 reuse supply.
169169 (c) In the event that the District in the exercise of the
170170 power of eminent domain or power of relocation, or any other power
171171 granted hereunder, makes necessary the relocation, raising,
172172 rerouting or changing the grade of, or altering the construction
173173 of, any cemetery, highway, railroad, electric transmission line,
174174 telephone or telegraph properties and facilities, or pipeline, all
175175 such necessary relocation, raising, rerouting, changing of grade or
176176 alteration of construction shall be accomplished at the sole
177177 expense of the District. The term "sole expense" shall mean the
178178 actual cost of such relocation, raising, rerouting, or change in
179179 grade or alteration of construction in providing comparable
180180 replacement without enhancement of such facilities after deducting
181181 therefrom the net salvage value derived from the old facility.
182182 (f) The powers, rights, privileges, and functions conferred
183183 upon the District shall be subject to the continuing rights of
184184 supervision by the State, [which shall be exercised by the Texas
185185 Department of Water Resources, and the District shall obtain
186186 approval of its projects and they shall be supervised] as provided
187187 by the [Sections 54.516 and 54.517,] Water Code, as amended.
188188 SECTION 4. Section 5, Chapter 712, Acts of the 59th
189189 Legislature, Regular Session, 1965, is amended to read as follows:
190190 Sec. 5. (a) The management and control of the District is
191191 hereby vested in a Board of 10 directors.
192192 (b) Each director must be a resident of this state.
193193 (c) Vacancies on the Board of Directors, whether by death,
194194 resignation or termination of the term of office, shall be filled by
195195 appointment by the commissioners court that appointed the director
196196 for the unexpired term of the director.
197197 (d) A director may be removed by the commissioners court
198198 that appointed the director for inefficiency, neglect of duty, or
199199 misconduct of office. The Board must provide a director removed
200200 under this section written notice not later than the 30th day after
201201 the date the decision to remove is made and an opportunity to be
202202 heard in person or by counsel in a public hearing.
203203 (e) All terms of office shall be for a period of two (2)
204204 years. Terms shall be staggered ending on August 31 of the
205205 appropriate year.
206206 (f) Six directors constitute a quorum. Except as otherwise
207207 provided, a majority of those directors present and qualified to
208208 vote is sufficient for final action on a matter before the Board.
209209 SECTION 5. Chapter 712, Acts of the 59th Legislature,
210210 Regular Session, 1965, is amended by adding Sections 5C, 5D, 5E, 5F,
211211 and 5G to read as follows:
212212 Sec. 5C. (a) Chapter 171, Local Government Code, does not
213213 apply to a director appointed to represent agricultural or
214214 industrial interests.
215215 (b) A director who has a financial interest in a contract
216216 considered by the District for the purchase of property or the
217217 construction of a facility must disclose the interest to the other
218218 directors and may not vote on the contract.
219219 Sec. 5D. (a) The Board may hold an open or closed meeting by
220220 telephone conference call if at least five directors are present at
221221 the location where the meeting of the Board is held. A meeting held
222222 by telephone conference call is subject to the same notice
223223 requirements as other Board meetings and must be recorded. Each
224224 person who speaks in a meeting held by telephone conference call
225225 must be clearly identified. A director participating in a meeting
226226 held by telephone conference call is considered absent from any
227227 part of the meeting during which audio communication is lost.
228228 (b) The authority to hold a meeting held by telephone
229229 conference call described by this section is in addition to
230230 authority described by Chapter 551, Government Code.
231231 Sec. 5E. If the Board employs a general manager, the general
232232 manager is the chief executive officer of the District.
233233 Sec. 5F. The District is not required to provide notice for
234234 the sale or disposal of District personal property if the personal
235235 property has a value of less than $25,000.
236236 Sec. 5G. (a) The District may enter into a contract related
237237 to a water project located outside the District. The District may
238238 enter into a local agreement with a political subdivision for a
239239 purpose related to a water project.
240240 (b) A contract under this section may use money appropriated
241241 by a political subdivision that is a party to the contract to pay
242242 for pre-development costs, engineering, surveys, and the
243243 collection and compilation of data relating to conditions
244244 influencing determinations about the character and extent of
245245 proposed improvements, works, and facilities for the
246246 accomplishment of District purposes.
247247 (c) The District may contract or agree with an entity
248248 appropriating money under this section to receive a loan or money
249249 from other sources in return for services described by Subsection
250250 (a). The contract or agreement may provide for the repayment by the
251251 District of money advanced as a loan from project revenues, bond
252252 proceeds, or other available money.
253253 (d) The District and a state agency or political subdivision
254254 may enter into a contract to jointly pay all or part of the cost of a
255255 water project or the operation of a water project in the same way
256256 that a political subdivision may contract with a state agency or
257257 political subdivision under Chapter 472, Transportation Code, to
258258 jointly pay all or part of the cost associated with a state or local
259259 highway, turnpike, road, or street project.
260260 SECTION 6. Sections 7 and 8, Chapter 712, Acts of the 59th
261261 Legislature, Regular Session, 1965, are amended to read as follows:
262262 Sec. 7. The District shall have power and is hereby
263263 authorized to issue, from time to time, bonds as herein authorized
264264 for any of its corporate purposes. Such bonds may either be (1)
265265 sold for cash, at public or private sale, at such price or prices as
266266 the Board shall determine, provided that the net effective interest
267267 rate, calculated in accordance with Chapter 1204, Government Code
268268 [3, Acts of the 61st Legislature, Regular Session, 1969, as amended
269269 (Article 717k-2, Vernon's Texas Civil Statutes), as now or
270270 hereafter amended shall not exceed ten (10) percent], or (2) issued
271271 on such terms as the Board of Directors shall determine in exchange
272272 for property of any kind, real, personal or mixed or any interest
273273 therein which the Board shall deem necessary for any such corporate
274274 purposes, or (3) issued in exchange for like principal amounts of
275275 other obligations of the District, matured or unmatured. The
276276 proceeds of sale of such bonds shall be deposited in such bank or
277277 banks or trust company or trust companies, and shall be paid out
278278 pursuant to such terms and conditions, as may be agreed upon between
279279 the District and the purchasers of such bonds. All such bonds shall
280280 be authorized by resolution or resolutions of the Board of
281281 Directors, and shall bear such date or dates, mature at such time or
282282 times, bear interest payable annually, semiannually, or otherwise,
283283 be in such denominations, be in such form, either coupon or
284284 registered, carry such registration privileges as to principal only
285285 or as to both principal and interest, and as to exchange of coupon
286286 bonds for registered bonds or vice versa, and exchange of bonds of
287287 one denomination for bonds of other denominations, be executed in
288288 such manner and be payable at such place or places within or without
289289 the State of Texas, as such resolution or resolutions may provide.
290290 Any resolution or resolutions authorizing any bonds may contain
291291 provisions, which shall be part of the contract between the
292292 District and the holders thereof from time to time:
293293 (a) reserving the right to redeem such bonds or requiring
294294 the redemption of such bonds, at such time or times, in such amounts
295295 and at such prices, [not exceeding 105 percent of the principal
296296 amount thereof, plus accrued interest,] as may be provided;
297297 (b) providing for the setting aside of sinking funds or
298298 reserve funds and the regulation and disposition thereof;
299299 (c) pledging to secure the payment of the principal of and
300300 interest on such bonds and of the sinking fund or reserve fund
301301 payments agreed to be made in respect of such bonds all or any part
302302 of the gross or net revenues thereafter received by the District in
303303 respect of the property, real, personal, or mixed, to be acquired
304304 and/or constructed with such bonds or the proceeds thereof, or all
305305 or any part of the gross or net revenues thereafter received by the
306306 District from whatever source derived;
307307 (d) prescribing the purposes to which such bonds or any
308308 bonds thereafter to be issued, or the proceeds thereof, may be
309309 applied;
310310 (e) agreeing to fix and collect rates and charges sufficient
311311 to produce revenues adequate to pay (1) all expenses necessary to
312312 the operation and maintenance and replacements and additions to the
313313 properties and facilities of the District; (2) the principal of,
314314 and the interest and premium, if any, on bonds issued under this Act
315315 as and when the same became due and payable; (3) all sinking fund
316316 and/or reserve fund payments agreed to be made in respect of any
317317 such bonds out of such revenues as and when the same became due and
318318 payable, and to fulfill the terms of any agreements made with the
319319 holders of such bonds and/or with any person on their behalf and to
320320 discharge all other lawful obligations of the District as and when
321321 the same become due;
322322 (f) prescribing limitations upon the issuance of additional
323323 bonds and subordinate lien bonds and upon the agreements which may
324324 be made with the purchasers and successive holders thereof;
325325 (g) with regard to the construction, extension,
326326 improvement, reconstruction, operation, maintenance, and repair of
327327 the properties of the District and carrying of insurance upon all or
328328 any part of said properties covering loss or damage or loss of use
329329 and occupancy resulting from specified risks;
330330 (h) fixing the procedure, if any, by which, if the District
331331 shall so desire, the terms of any contract with the holders of such
332332 bonds may be amended or abrogated, the amount of bonds the holders
333333 of which must consent thereto, and the manner in which such consent
334334 may be given;
335335 (i) for the execution and delivery by the District to a bank
336336 or trust company authorized by law to accept trusts, or to the
337337 United States of America or any officer or agency thereof, of
338338 indentures and agreements for the benefit of the holders of such
339339 bonds and such other provisions as may be customary in such
340340 indentures or agreements; and
341341 (j) such other provisions, [not inconsistent with the
342342 provisions of this Act,] as the Board may approve.
343343 (k) The Board may declare an emergency in the matter of
344344 funds not being available to pay principal of and interest on any
345345 bonds of the District or to meet any other needs of the District and
346346 may issue bond anticipation notes or enter into a loan to pay the
347347 costs to meet the emergency need. A loan under this section may be
348348 payable from district revenues or the proceeds of a future series of
349349 bonds. Bond anticipation notes may bear interest at any rate or
350350 rates not to exceed 10 percent and shall mature within one (1) year
351351 of their date. The bond anticipation notes so issued will be taken
352352 up with the proceeds of bonds, or the bonds may be issued and
353353 delivered in exchange for and in substitution of such notes.
354354 (l) Before any bonds shall be sold or exchanged or
355355 substituted by the District, a certified copy of the proceedings of
356356 the issuance thereof, including the form of such bonds, together
357357 with any other information which the Attorney General of the State
358358 of Texas may require, shall be submitted to the Attorney General,
359359 and if he shall find that such bonds have been issued in accordance
360360 with law, and if he shall approve such bonds, he shall execute a
361361 certificate to that effect which shall be filed in the office of the
362362 Comptroller of the State of Texas and be recorded in a record kept
363363 for that purpose. No bonds shall be issued until the same shall
364364 have been registered by the Comptroller, who shall so register the
365365 same if the Attorney General shall have filed with the Comptroller
366366 his certificate approving the bonds and the proceedings for the
367367 issuance thereof as hereinabove provided.
368368 (m) All bonds approved by the Attorney General as aforesaid,
369369 and registered by the Comptroller as aforesaid, and issued in
370370 accordance with the proceedings so approved shall be valid and
371371 binding obligations of the District and shall be incontestable for
372372 any cause from and after the time of such registration.
373373 (n) If any bonds recite that they are secured by a pledge of
374374 the proceeds of a contract, lease, sale or other agreement (herein
375375 called "contract"), a copy of such contract and the proceedings of
376376 the contracting parties will also be submitted to the Attorney
377377 General. If such bonds have been authorized and such contracts made
378378 in compliance with law, the Attorney General shall approve the
379379 bonds and contracts, and the bonds shall then be registered by the
380380 Comptroller of Public Accounts. When so approved, such bonds and
381381 the contracts shall be valid and binding and shall be incontestable
382382 for any cause from and after the time of such registration.
383383 (o) The District is authorized to make and issue bonds
384384 (herein called "refunding bonds") for the purpose of refunding or
385385 refinancing any outstanding bonds or notes authorized and issued by
386386 the District pursuant to this Act or other law (herein called
387387 "bonds") and the interest and premium, if any, thereon to maturity
388388 or on any earlier redemption date specified in the resolution
389389 authorizing the issuance of the refunding bonds. Such refunding
390390 bonds may be issued to refund more than one series of outstanding
391391 bonds, may combine the pledges of the outstanding bonds for the
392392 security of the refunding bonds, or may be secured by other or
393393 additional revenues. All provisions of this Act with reference to
394394 the issuance of bonds, the terms and provisions thereof, their
395395 approval by the Attorney General, and the remedies of the
396396 bondholders shall be applicable to refunding bonds. Refunding
397397 bonds shall be registered by the Comptroller upon surrender and
398398 cancellation of the bonds to be refunded, but in lieu thereof, the
399399 resolution authorizing the issuance of refunding bonds may provide
400400 that they shall be sold and the proceeds thereof deposited at the
401401 places at which the original bonds are payable, in which case the
402402 refunding bonds may be issued in an amount sufficient to pay the
403403 interest and premium, if any, on the original bonds to their
404404 maturity date or specified earlier redemption date, and the
405405 Comptroller will register them without concurrent surrender and
406406 cancellation of the original bonds. The District may also refund
407407 any outstanding bonds in the manner provided by any applicable
408408 General Law.
409409 (p) All bonds issued by the District pursuant to the
410410 provisions of this Act shall constitute investment securities
411411 within the meaning of the Uniform Commercial Code.
412412 (q) This Act, without reference to other statutes of the
413413 State of Texas, shall constitute full authority for the
414414 authorization and issuance of bonds hereunder, and no other Act or
415415 law with regard to the authorization or issuance of obligations or
416416 the deposit of the proceeds thereof, or in any impeding or
417417 restricting the carrying out of the acts herein authorized to be
418418 done shall be construed as applying to any proceedings taken
419419 hereunder or acts done pursuant hereto.
420420 Sec. 8. (a) When any of such revenues are pledged to the
421421 payment of any bonds issued by said District or loans received by
422422 the District, it shall be the right and duty of the District's Board
423423 of Directors to cause to be fixed, maintained and enforced charges,
424424 fees or tolls for services rendered by properties and facilities,
425425 the revenues of which have been pledged, at rates and amounts at
426426 least sufficient to comply with and carry out the covenants and
427427 provisions contained in the order or orders authorizing the
428428 issuance of said bonds.
429429 (b) Regardless of whether the revenues are pledged to the
430430 payment of bonds, the [The] District shall have the right to impose
431431 penalties for failure to pay, when due, such charges, fees or tolls.
432432 SECTION 7. (a) The legal notice of the intention to
433433 introduce this Act, setting forth the general substance of this
434434 Act, has been published as provided by law, and the notice and a
435435 copy of this Act have been furnished to all persons, agencies,
436436 officials, or entities to which they are required to be furnished
437437 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
438438 Government Code.
439439 (b) The governor, one of the required recipients, has
440440 submitted the notice and Act to the Texas Commission on
441441 Environmental Quality.
442442 (c) The Texas Commission on Environmental Quality has filed
443443 its recommendations relating to this Act with the governor, the
444444 lieutenant governor, and the speaker of the house of
445445 representatives within the required time.
446446 (d) All requirements of the constitution and laws of this
447447 state and the rules and procedures of the legislature with respect
448448 to the notice, introduction, and passage of this Act are fulfilled
449449 and accomplished.
450450 SECTION 8. This Act takes effect immediately if it receives
451451 a vote of two-thirds of all the members elected to each house, as
452452 provided by Section 39, Article III, Texas Constitution. If this
453453 Act does not receive the vote necessary for immediate effect, this
454454 Act takes effect September 1, 2019.