Texas 2019 - 86th Regular

Texas Senate Bill SB2507 Compare Versions

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11 86R20841 SLB-F
22 By: Taylor S.B. No. 2507
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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, secure obligations under a loan or other
101101 contract for borrowed money with a pledge of district revenues or
102102 the proceeds of future borrowings, and accept grants or
103103 contributions, directly or indirectly, from persons, including the
104104 State of Texas, the United States of America, or from any
105105 corporation, agency, or entity created or designated by the State
106106 of Texas or the United States of America, and in connection with any
107107 such loan, [or] grant, or contribution, to enter into such
108108 agreements as the State of Texas, the United States of America, or
109109 any such corporation, agency, or entity may require; and to make and
110110 issue its negotiable bonds or notes for money borrowed, in the
111111 manner and to the extent provided in this Act, and to refund or
112112 refinance any outstanding bonds, [or] notes, or loans, and to make
113113 and issue its negotiable bonds or notes therefor in the manner
114114 provided in this Act.
115115 SECTION 2. Chapter 712, Acts of the 59th Legislature,
116116 Regular Session, 1965, is amended by adding Sections 3B and 3C to
117117 read as follows:
118118 Sec. 3B. (a) In this section, "person" includes an
119119 individual, entity, partnership, or corporation. The term does not
120120 include a political subdivision or public agency.
121121 (b) This section does not apply to a contract for
122122 architectural or engineering services. Section 2254.004,
123123 Government Code, applies to the procurement of architectural or
124124 engineering services.
125125 (c) Competitive bidding and contract procurement or
126126 delivery requirements otherwise applicable to the District do not
127127 apply to a contract or agreement made by the District with a person
128128 if:
129129 (1) the contract or agreement relates to a project for
130130 the acquisition or construction of equipment or facilities for the
131131 production, treatment, transmission, or delivery of water; and
132132 (2) payments made under the contract or agreement are
133133 for amounts substantially sufficient to finance a project described
134134 in Subdivision (1) of this subsection.
135135 Sec. 3C. (a) The Board by resolution may authorize the
136136 creation of a nonprofit corporation to assist and act for the
137137 district in implementing a project or providing a service
138138 authorized by this Act.
139139 (b) The nonprofit corporation:
140140 (1) has each power of and is considered to be a local
141141 government corporation created under Subchapter D, Chapter 431,
142142 Transportation Code; and
143143 (2) may implement any project and provide any service
144144 authorized by this Act.
145145 (c) The Board shall appoint the board of directors of the
146146 nonprofit corporation. The board of directors of the nonprofit
147147 corporation shall serve at the will of the District and in the same
148148 manner as the board of directors of a local government corporation
149149 created under Subchapter D, Chapter 431, Transportation Code.
150150 (d) The nonprofit corporation may not:
151151 (1) participate in a project that the District is not
152152 authorized to participate in;
153153 (2) impose taxes; or
154154 (3) acquire, construct, or operate parks or
155155 recreational facilities.
156156 SECTION 3. Sections 4(a), (c), and (f), Chapter 712, Acts of
157157 the 59th Legislature, Regular Session, 1965, are amended to read as
158158 follows:
159159 (a) The District shall have no power or authority to levy
160160 and collect taxes on any property real, personal or mixed, within
161161 the boundaries of said District, nor shall the District have power
162162 or authority to issue bonds or create indebtedness which would in
163163 any way be payable from ad valorem taxes levied by the District upon
164164 property within said District; and provided further that said
165165 District shall have none of the powers conferred by General Law for
166166 the purposes of the collection, transportation, processing,
167167 disposal and control of domestic, industrial or communal wastes,
168168 and the gathering, conducting, directing and controlling of local
169169 storm waters, or other local harmful excesses of water except as
170170 directly related to the production and purification of water for
171171 agricultural, municipal, or industrial purposes, including the
172172 ownership, lease, or operation of a municipal wastewater treatment
173173 facility in which the effluent is used by the District for water
174174 reuse supply.
175175 (c) In the event that the District in the exercise of the
176176 power of eminent domain or power of relocation, or any other power
177177 granted hereunder, makes necessary the relocation, raising,
178178 rerouting or changing the grade of, or altering the construction
179179 of, any cemetery, highway, railroad, electric transmission line,
180180 telephone or telegraph properties and facilities, or pipeline, all
181181 such necessary relocation, raising, rerouting, changing of grade or
182182 alteration of construction shall be accomplished at the sole
183183 expense of the District. The term "sole expense" shall mean the
184184 actual cost of such relocation, raising, rerouting, or change in
185185 grade or alteration of construction in providing comparable
186186 replacement without enhancement of such facilities after deducting
187187 therefrom the net salvage value derived from the old facility.
188188 (f) The powers, rights, privileges, and functions conferred
189189 upon the District shall be subject to the continuing rights of
190190 supervision by the State, [which shall be exercised by the Texas
191191 Department of Water Resources, and the District shall obtain
192192 approval of its projects and they shall be supervised] as provided
193193 by the [Sections 54.516 and 54.517,] Water Code, as amended.
194194 SECTION 4. Section 5, Chapter 712, Acts of the 59th
195195 Legislature, Regular Session, 1965, is amended to read as follows:
196196 Sec. 5. (a) The management and control of the District is
197197 hereby vested in a Board of 10 directors.
198198 (b) Each director must be a resident of this state.
199199 (c) Vacancies on the Board of Directors, whether by death,
200200 resignation or termination of the term of office, shall be filled by
201201 appointment by the commissioners court that appointed the director
202202 for the unexpired term of the director.
203203 (d) A director may be removed by the commissioners court
204204 that appointed the director for inefficiency, neglect of duty, or
205205 misconduct of office. The commissioners court must provide a
206206 director removed under this section written notice not later than
207207 the 30th day after the date the decision to remove is made and an
208208 opportunity to be heard in person or by counsel in a public hearing.
209209 (e) All terms of office shall be for a period of two (2)
210210 years. Terms shall be staggered ending on August 31 of the
211211 appropriate year.
212212 (f) Six directors constitute a quorum. Except as otherwise
213213 provided, a majority of those directors present and qualified to
214214 vote is sufficient for final action on a matter before the Board.
215215 SECTION 5. Chapter 712, Acts of the 59th Legislature,
216216 Regular Session, 1965, is amended by adding Sections 5C, 5D, 5E, 5F,
217217 and 5G to read as follows:
218218 Sec. 5C. (a) Chapter 171, Local Government Code, does not
219219 apply to a director appointed to represent agricultural or
220220 industrial interests.
221221 (b) A director who has a financial interest in a contract
222222 considered by the District for the purchase of property or the
223223 construction of a facility must disclose the interest to the other
224224 directors and may not vote on the contract.
225225 Sec. 5D. (a) The Board may hold an open or closed meeting by
226226 telephone conference call if at least five directors are present at
227227 the location where the meeting of the Board is held. A meeting held
228228 by telephone conference call is subject to the same notice
229229 requirements as other Board meetings and must be recorded. Each
230230 person who speaks in a meeting held by telephone conference call
231231 must be clearly identified. A director participating in a meeting
232232 held by telephone conference call is considered absent from any
233233 part of the meeting during which audio communication is lost.
234234 (b) The authority to hold a meeting held by telephone
235235 conference call described by this section is in addition to
236236 authority described by Chapter 551, Government Code.
237237 Sec. 5E. If the Board employs a general manager, the general
238238 manager is the chief executive officer of the District.
239239 Sec. 5F. The District is not required to provide notice for
240240 the sale or disposal of District personal property if the personal
241241 property has a value of less than $25,000.
242242 Sec. 5G. (a) The District may enter into a contract related
243243 to a water project located outside the District. The District may
244244 enter into a local agreement with a political subdivision for a
245245 purpose related to a water project.
246246 (b) A contract under this section may use money appropriated
247247 by a political subdivision that is a party to the contract to pay
248248 for pre-development costs, engineering, surveys, and the
249249 collection and compilation of data relating to conditions
250250 influencing determinations about the character and extent of
251251 proposed improvements, works, and facilities for the
252252 accomplishment of District purposes.
253253 (c) The District may contract or agree with an entity
254254 appropriating money under this section to receive a loan or money
255255 from other sources in return for services described by Subsection
256256 (a) of this section. The contract or agreement may provide for the
257257 repayment by the District of money advanced as a loan from project
258258 revenues, bond proceeds, or other available money.
259259 (d) The District and a state agency or political subdivision
260260 may enter into a contract to jointly pay all or part of the cost of a
261261 water project or the operation of a water project in the same way
262262 that a political subdivision may contract with a state agency or
263263 political subdivision under Chapter 472, Transportation Code, to
264264 jointly pay all or part of the cost associated with a state or local
265265 highway, turnpike, road, or street project.
266266 SECTION 6. Sections 7 and 8, Chapter 712, Acts of the 59th
267267 Legislature, Regular Session, 1965, are amended to read as follows:
268268 Sec. 7. The District shall have power and is hereby
269269 authorized to issue, from time to time, bonds as herein authorized
270270 for any of its corporate purposes. Such bonds may either be (1)
271271 sold for cash, at public or private sale, at such price or prices as
272272 the Board shall determine, provided that the net effective interest
273273 rate, calculated in accordance with Chapter 1204, Government Code
274274 [3, Acts of the 61st Legislature, Regular Session, 1969, as amended
275275 (Article 717k-2, Vernon's Texas Civil Statutes), as now or
276276 hereafter amended shall not exceed ten (10) percent], or (2) issued
277277 on such terms as the Board of Directors shall determine in exchange
278278 for property of any kind, real, personal or mixed or any interest
279279 therein which the Board shall deem necessary for any such corporate
280280 purposes, or (3) issued in exchange for like principal amounts of
281281 other obligations of the District, matured or unmatured. The
282282 proceeds of sale of such bonds shall be deposited in such bank or
283283 banks or trust company or trust companies, and shall be paid out
284284 pursuant to such terms and conditions, as may be agreed upon between
285285 the District and the purchasers of such bonds. All such bonds shall
286286 be authorized by resolution or resolutions of the Board of
287287 Directors, and shall bear such date or dates, mature at such time or
288288 times, bear interest payable annually, semiannually, or otherwise,
289289 be in such denominations, be in such form, either coupon or
290290 registered, carry such registration privileges as to principal only
291291 or as to both principal and interest, and as to exchange of coupon
292292 bonds for registered bonds or vice versa, and exchange of bonds of
293293 one denomination for bonds of other denominations, be executed in
294294 such manner and be payable at such place or places within or without
295295 the State of Texas, as such resolution or resolutions may provide.
296296 Any resolution or resolutions authorizing any bonds may contain
297297 provisions, which shall be part of the contract between the
298298 District and the holders thereof from time to time:
299299 (a) reserving the right to redeem such bonds or requiring
300300 the redemption of such bonds, at such time or times, in such amounts
301301 and at such prices, [not exceeding 105 percent of the principal
302302 amount thereof, plus accrued interest,] as may be provided;
303303 (b) providing for the setting aside of sinking funds or
304304 reserve funds and the regulation and disposition thereof;
305305 (c) pledging to secure the payment of the principal of and
306306 interest on such bonds and of the sinking fund or reserve fund
307307 payments agreed to be made in respect of such bonds all or any part
308308 of the gross or net revenues thereafter received by the District in
309309 respect of the property, real, personal, or mixed, to be acquired
310310 and/or constructed with such bonds or the proceeds thereof, or all
311311 or any part of the gross or net revenues thereafter received by the
312312 District from whatever source derived;
313313 (d) prescribing the purposes to which such bonds or any
314314 bonds thereafter to be issued, or the proceeds thereof, may be
315315 applied;
316316 (e) agreeing to fix and collect rates and charges sufficient
317317 to produce revenues adequate to pay (1) all expenses necessary to
318318 the operation and maintenance and replacements and additions to the
319319 properties and facilities of the District; (2) the principal of,
320320 and the interest and premium, if any, on bonds issued under this Act
321321 as and when the same became due and payable; (3) all sinking fund
322322 and/or reserve fund payments agreed to be made in respect of any
323323 such bonds out of such revenues as and when the same became due and
324324 payable, and to fulfill the terms of any agreements made with the
325325 holders of such bonds and/or with any person on their behalf and to
326326 discharge all other lawful obligations of the District as and when
327327 the same become due;
328328 (f) prescribing limitations upon the issuance of additional
329329 bonds and subordinate lien bonds and upon the agreements which may
330330 be made with the purchasers and successive holders thereof;
331331 (g) with regard to the construction, extension,
332332 improvement, reconstruction, operation, maintenance, and repair of
333333 the properties of the District and carrying of insurance upon all or
334334 any part of said properties covering loss or damage or loss of use
335335 and occupancy resulting from specified risks;
336336 (h) fixing the procedure, if any, by which, if the District
337337 shall so desire, the terms of any contract with the holders of such
338338 bonds may be amended or abrogated, the amount of bonds the holders
339339 of which must consent thereto, and the manner in which such consent
340340 may be given;
341341 (i) for the execution and delivery by the District to a bank
342342 or trust company authorized by law to accept trusts, or to the
343343 United States of America or any officer or agency thereof, of
344344 indentures and agreements for the benefit of the holders of such
345345 bonds and such other provisions as may be customary in such
346346 indentures or agreements; and
347347 (j) such other provisions, [not inconsistent with the
348348 provisions of this Act,] as the Board may approve.
349349 (k) The Board may declare an emergency in the matter of
350350 funds not being available to pay principal of and interest on any
351351 bonds of the District or to meet any other needs of the District and
352352 may issue bond anticipation notes or enter into a loan to pay the
353353 costs to meet the emergency need. A loan under this section may be
354354 secured by a pledge of and made payable from district revenues or
355355 the proceeds of a future series of bonds. Bond anticipation notes
356356 may bear interest at any rate or rates not to exceed 10 percent and
357357 shall mature within one (1) year of their date. The bond
358358 anticipation notes so issued will be taken up with the proceeds of
359359 bonds, or the bonds may be issued and delivered in exchange for and
360360 in substitution of such notes.
361361 (l) Before any bonds shall be sold or exchanged or
362362 substituted by the District, a certified copy of the proceedings of
363363 the issuance thereof, including the form of such bonds, together
364364 with any other information which the Attorney General of the State
365365 of Texas may require, shall be submitted to the Attorney General,
366366 and if he shall find that such bonds have been issued in accordance
367367 with law, and if he shall approve such bonds, he shall execute a
368368 certificate to that effect which shall be filed in the office of the
369369 Comptroller of the State of Texas and be recorded in a record kept
370370 for that purpose. No bonds shall be issued until the same shall
371371 have been registered by the Comptroller, who shall so register the
372372 same if the Attorney General shall have filed with the Comptroller
373373 his certificate approving the bonds and the proceedings for the
374374 issuance thereof as hereinabove provided.
375375 (m) All bonds approved by the Attorney General as aforesaid,
376376 and registered by the Comptroller as aforesaid, and issued in
377377 accordance with the proceedings so approved shall be valid and
378378 binding obligations of the District and shall be incontestable for
379379 any cause from and after the time of such registration.
380380 (n) If any bonds recite that they are secured by a pledge of
381381 the proceeds of a contract, lease, sale or other agreement (herein
382382 called "contract"), a copy of such contract and the proceedings of
383383 the contracting parties will also be submitted to the Attorney
384384 General. If such bonds have been authorized and such contracts made
385385 in compliance with law, the Attorney General shall approve the
386386 bonds and contracts, and the bonds shall then be registered by the
387387 Comptroller of Public Accounts. When so approved, such bonds and
388388 the contracts shall be valid and binding and shall be incontestable
389389 for any cause from and after the time of such registration.
390390 (o) The District is authorized to make and issue bonds
391391 (herein called "refunding bonds") for the purpose of refunding or
392392 refinancing any outstanding bonds or notes authorized and issued by
393393 the District pursuant to this Act or other law (herein called
394394 "bonds") and the interest and premium, if any, thereon to maturity
395395 or on any earlier redemption date specified in the resolution
396396 authorizing the issuance of the refunding bonds. Such refunding
397397 bonds may be issued to refund more than one series of outstanding
398398 bonds, may combine the pledges of the outstanding bonds for the
399399 security of the refunding bonds, or may be secured by other or
400400 additional revenues. All provisions of this Act with reference to
401401 the issuance of bonds, the terms and provisions thereof, their
402402 approval by the Attorney General, and the remedies of the
403403 bondholders shall be applicable to refunding bonds. Refunding
404404 bonds shall be registered by the Comptroller upon surrender and
405405 cancellation of the bonds to be refunded, but in lieu thereof, the
406406 resolution authorizing the issuance of refunding bonds may provide
407407 that they shall be sold and the proceeds thereof deposited at the
408408 places at which the original bonds are payable, in which case the
409409 refunding bonds may be issued in an amount sufficient to pay the
410410 interest and premium, if any, on the original bonds to their
411411 maturity date or specified earlier redemption date, and the
412412 Comptroller will register them without concurrent surrender and
413413 cancellation of the original bonds. The District may also refund
414414 any outstanding bonds in the manner provided by any applicable
415415 General Law.
416416 (p) All bonds issued by the District pursuant to the
417417 provisions of this Act shall constitute investment securities
418418 within the meaning of the Uniform Commercial Code.
419419 (q) This Act, without reference to other statutes of the
420420 State of Texas, shall constitute full authority for the
421421 authorization and issuance of bonds hereunder, and no other Act or
422422 law with regard to the authorization or issuance of obligations or
423423 the deposit of the proceeds thereof, or in any impeding or
424424 restricting the carrying out of the acts herein authorized to be
425425 done shall be construed as applying to any proceedings taken
426426 hereunder or acts done pursuant hereto.
427427 Sec. 8. (a) When any of such revenues are pledged to the
428428 payment of any bonds issued by said District or loans received by
429429 the District, it shall be the right and duty of the District's Board
430430 of Directors to cause to be fixed, maintained and enforced charges,
431431 fees or tolls for services rendered by properties and facilities,
432432 the revenues of which have been pledged, at rates and amounts at
433433 least sufficient to comply with and carry out the covenants and
434434 provisions contained in the order or orders authorizing the
435435 issuance of said bonds.
436436 (b) Regardless of whether the revenues are pledged to the
437437 payment of bonds, the [The] District shall have the right to impose
438438 penalties for failure to pay, when due, such charges, fees or tolls.
439439 SECTION 7. (a) The legal notice of the intention to
440440 introduce this Act, setting forth the general substance of this
441441 Act, has been published as provided by law, and the notice and a
442442 copy of this Act have been furnished to all persons, agencies,
443443 officials, or entities to which they are required to be furnished
444444 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
445445 Government Code.
446446 (b) The governor, one of the required recipients, has
447447 submitted the notice and Act to the Texas Commission on
448448 Environmental Quality.
449449 (c) The Texas Commission on Environmental Quality has filed
450450 its recommendations relating to this Act with the governor, the
451451 lieutenant governor, and the speaker of the house of
452452 representatives within the required time.
453453 (d) All requirements of the constitution and laws of this
454454 state and the rules and procedures of the legislature with respect
455455 to the notice, introduction, and passage of this Act are fulfilled
456456 and accomplished.
457457 SECTION 8. This Act takes effect immediately if it receives
458458 a vote of two-thirds of all the members elected to each house, as
459459 provided by Section 39, Article III, Texas Constitution. If this
460460 Act does not receive the vote necessary for immediate effect, this
461461 Act takes effect September 1, 2019.