By: Middleton (Senate Sponsor - Creighton) H.B. No. 3006
(In the Senate - Received from the House May 10, 2021;
May 12, 2021, read first time and referred to Committee on Water,
Agriculture & Rural Affairs; May 21, 2021, reported favorably by
the following vote: Yeas 8, Nays 0; May 21, 2021, sent to
printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Trinity Bay Special Utility
District and the powers and duties of the Trinity Bay Conservation
District; providing authority to issue bonds; providing authority
to impose assessments or fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TRINITY BAY SPECIAL UTILITY DISTRICT
SECTION 1.01. Subtitle C, Title 6, Special District Local
Laws Code, is amended by adding Chapter 7223 to read as follows:
CHAPTER 7223. TRINITY BAY SPECIAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7223.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Director" means a member of the board.
(3) "District" means the Trinity Bay Special Utility
District.
Sec. 7223.0102. NATURE OF DISTRICT; FINDINGS OF BENEFIT AND
PURPOSE. (a) The district is a special utility district created in
Chambers and Jefferson Counties under Section 59, Article XVI,
Texas Constitution.
(b) The district is created to serve a public use and
benefit.
(c) The district is essential to accomplish the purposes of
Section 59, Article XVI, Texas Constitution.
Sec. 7223.0103. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 1, Chapter 282, Acts of the 51st Legislature, Regular
Session, 1949, as that territory existed on September 1, 2021,
including any modifications made before that date under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
(b) The boundaries and field notes contained in Section 1,
Chapter 282, Acts of the 51st Legislature, Regular Session, 1949,
form a closure. A mistake made in the field notes or in copying the
field notes in the legislative process does not affect the
district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for the purposes
for which the district is created or to pay the principal of and
interest on a bond; or
(3) legality or operation.
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 7223.0151. TEMPORARY DIRECTORS. (a) Not later than
October 15, 2022, a temporary board of directors shall be appointed
as follows:
(1) three temporary directors appointed by the board
of directors of the Trinity Bay Conservation District; and
(2) two temporary directors appointed by the
commissioners court of Chambers County.
(b) A vacancy for a temporary director position shall be
filled in the same manner as the initial appointment.
Sec. 7223.0152. INITIAL DIRECTORS' ELECTION. Not later than
September 1, 2023, the temporary directors shall hold an election
to elect five directors.
Sec. 7223.0153. INITIAL ELECTED DIRECTORS; TERMS. The
directors elected under Section 7223.0152 shall draw lots to
determine which two shall serve until the first regularly scheduled
election of directors under Section 7223.0201 and which three shall
serve until the second regularly scheduled election of directors.
Sec. 7223.0154. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2025.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7223.0201. DIRECTORS. (a) The district is governed by
a board of five elected directors.
(b) To be eligible to serve as a director a person must
reside in the district.
(c) The board has all powers conferred on a board of
directors under Chapter 65, Water Code.
(d) Directors serve staggered terms of four years.
(e) The Texas Commission on Environmental Quality may
appoint a member of the board to fill a vacancy on the board.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7223.0301. GENERAL POWERS AND DUTIES. (a) Except as
provided by Subsection (b), the district has all rights, powers,
privileges, functions, and duties provided by the general law of
this state applicable to a special utility district created under
Section 59, Article XVI, Texas Constitution, including Chapters 49
and 65, Water Code.
(b) The district may not perform a function that may be
performed by a drainage district operating under Chapter 56, Water
Code.
ARTICLE 2. TRINITY BAY CONSERVATION DISTRICT
SECTION 2.01. Chapter 282, Acts of the 51st Legislature,
Regular Session, 1949, is amended by adding Section 1a to read as
follows:
Sec. 1a. (a) Except as provided by Subsection (b) of this
section, the District has all rights, powers, privileges,
functions, and duties provided by the general law of this state
applicable to a drainage district created under Section 59, Article
XVI, Texas Constitution, including Chapters 49 and 56, Water Code.
(b) The District may not perform the same function as a
conservation and reclamation district whose territory overlaps
with the territory of the District.
SECTION 2.02. Sections 9(j) and (k), Chapter 282, Acts of
the 51st Legislature, Regular Session, 1949, are amended to read as
follows:
(j) To regulate [plumbing,] sewers and other drains used
only for drainage purposes, and the construction, replacement, and
operation thereof, and to abate any obstructions or encroachments
thereof, for the protection and enhancement of the health, safety
and welfare of the residents of the District.
(k) To require the owner of a sewer [plumbing, sewers,] or
other drain used only for drainage purposes who is [drains] found to
be in violation of the rules and regulations of the District to fill
up, cleanse, drain, alter, relay, repair, fix, or improve the same
as may be ordered or required by any rule or regulation of the
District; and in the event of any failure, neglect, or refusal to
comply with such rule or regulation, or in the event there be no
person in the District on whom the order to comply with such rule or
regulation can be served, the District may, after not less than 30
days written notice to said owner, by either personal service or
certified mail, have such work done and such improvements made on
account of the owner thereof. All costs, charges, and expenses
incurred by the District in accomplishing said work shall be a lien
on the property upon which said work is done, on the filing of a
memorandum of such by the President of the Board of Directors under
the seal of the District, and recording the same with the County
Clerk of the county in which the property lies. The District may
enforce said lien and institute suit in its name and obtain judgment
against said owner for the amount so due as aforesaid in any Court
having jurisdiction.
SECTION 2.03. Section 13(a), Chapter 282, Acts of the 51st
Legislature, Regular Session, 1949, is amended to read as follows:
(a) The District may adopt and enforce reasonable rules and
regulations to:
(1) [secure and maintain safe, sanitary, and adequate
plumbing installations, connections, and appurtenances as
subsidiary parts of its sanitary sewer system;
[(2) preserve the sanitary condition of all water
controlled by the District;
[(3)] prevent waste or the unauthorized use of water
controlled by the District; and
(2) [(4)] regulate privileges on any land or any
easement owned or controlled by the District.
SECTION 2.04. Sections 9(g), 9(h), and 11, Chapter 282,
Acts of the 51st Legislature, Regular Session, 1949, are repealed.
ARTICLE 3. TRANSITION AND NOTICE
SECTION 3.01. (a) In this section:
(1) "Conservation district" means the Trinity Bay
Conservation District.
(2) "Special utility district" means the Trinity Bay
Special Utility District.
(b) Not later than November 30, 2022, the conservation
district and the special utility district shall enter into a
memorandum of understanding regarding compensation to the
conservation district for assets transferred under Subsection (c)
of this section.
(c) Not later than December 1, 2022, the conservation
district shall:
(1) transfer to the special utility district the
conservation district's assets, debts, and contractual rights and
obligations relating to the construction, acquisition, ownership,
operation, maintenance, repair, improvement, and extension of
facilities necessary to:
(A) supply water for municipal uses, domestic
uses, power and commercial purposes, and other beneficial uses; or
(B) collect, transport, process, dispose of,
store, and control domestic, industrial, or communal wastes whether
in fluid, solid, or composite state; and
(2) provide notice and make recordings of the
transfers under this subsection as required by the Water Code, the
Property Code, and other law.
(d) On December 1, 2022, the powers, functions, and duties
of the conservation district that may be exercised by the special
utility district are transferred to the special utility district.
(e) Following the transfer under Subsection (c) of this
section:
(1) Certificates of Convenience and Necessity
Nos. 10997 and 20399 are considered to be held by the special
utility district; and
(2) the board of directors of the conservation
district shall notify the Public Utility Commission of Texas of the
transfer of Certificates of Convenience and Necessity Nos. 10997
and 20399 to the special utility district.
(f) On receipt of notice under Subsection (e)(2) of this
section, the Public Utility Commission of Texas shall note in its
records that Certificates of Convenience and Necessity Nos. 10997
and 20399 are held by the special utility district and shall reissue
the certificates in the name of the special utility district
without further application, notice, or hearing. A person, party,
or entity does not have any right of protest, objection, or
administrative review of the transfer prescribed by this section.
(g) The sale and transfer of the conservation district's
assets, debts, and contractual rights and obligations under
Subsection (c) of this section does not:
(1) contravene a trust indenture or bond resolution
relating to the district's outstanding bonds; or
(2) diminish or impair the rights of a holder of an
outstanding bond, warrant, or other obligation of the district.
(h) Before December 1, 2022, the temporary board of
directors of the special utility district:
(1) may not take any regulatory action under Chapter
49 or 65, Water Code;
(2) shall adopt rules for the administration of the
special utility district under Chapters 49 and 65, Water Code; and
(3) may hire employees of the special utility
district.
SECTION 3.02. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
and accomplished.
ARTICLE 4. EFFECTIVE DATES
SECTION 4.01. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2021.
(b) Article 2 of this Act takes effect December 1, 2022.
* * * * *