Texas 2023 - 88th Regular

Texas House Bill HB5406 Compare Versions

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Version 2 (New)

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1	1	88R26417 SCP-D
2	2	By: Rogers H.B. No. 5406
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of the Cross Timbers Regional Utility
8	8	Authority; granting a limited power of eminent domain; providing
9	9	authority to issue bonds; providing authority to impose assessments
10	10	and fees.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle F, Title 6, Special District Local Laws
13	13	Code, is amended by adding Chapter 7966A to read as follows:
14	14	CHAPTER 7966A. CROSS TIMBERS REGIONAL UTILITY AUTHORITY
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 7966A.0101. DEFINITIONS. In this chapter:
17	17	(1) "Authority" means the Cross Timbers Regional
18	18	Utility Authority.
19	19	(2) "Board" means the board of directors of the
20	20	authority.
21	21	(3) "Director" means a member of the board.
22	22	Sec. 7966A.0102. NATURE OF AUTHORITY. (a) The authority is
23	23	a conservation and reclamation district created under Section 59,
24	24	Article XVI, Texas Constitution.
25	25	(b) The authority is a political subdivision of this state.
26	26	Sec. 7966A.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
27	27	(a) The authority is created to serve a public use and benefit.
28	28	(b) All land and other property included in the boundaries
29	29	of the authority will benefit from the works and projects
30	30	accomplished by the authority under the powers conferred by Section
31	31	59, Article XVI, Texas Constitution.
32	32	(c) The creation of the authority is essential to accomplish
33	33	the purposes of Section 59, Article XVI, Texas Constitution.
34	34	SUBCHAPTER B. AUTHORITY TERRITORY
35	35	Sec. 7966A.0201. AUTHORITY TERRITORY. The authority is
36	36	composed of all of the territory contained in Palo Pinto County,
37	37	Parker County, and Stephens County, as that territory may have been
38	38	modified under:
39	39	(1) Subchapter H, Chapter 54, Water Code;
40	40	(2) Subchapter J, Chapter 49, Water Code; or
41	41	(3) other law.
42	42	SUBCHAPTER C. BOARD OF DIRECTORS
43	43	Sec. 7966A.0301. COMPOSITION OF BOARD; TERMS. (a) The
44	44	authority is governed by a board of seven directors.
45	45	(b) Directors are appointed as follows:
46	46	(1) one director appointed by the Commissioners Court
47	47	of Palo Pinto County;
48	48	(2) three directors appointed by the Commissioners
49	49	Court of Parker County;
50	50	(3) one director appointed by the Commissioners Court
51	51	of Stephens County; and
52	52	(4) two directors appointed by the city council of the
53	53	City of Mineral Wells.
54	54	(c) Directors serve staggered four-year terms. Directors
55	55	may not serve more than two terms.
56	56	(d) When a director's term expires, the appointing entity
57	57	shall appoint a successor.
58	58	(e) The board shall select a presiding officer from among
59	59	the directors who have served on the board for at least two years to
60	60	serve in that position for the remainder of the director's term.
61	61	Sec. 7966A.0302. QUALIFICATIONS FOR OFFICE. (a) Each
62	62	director must be a qualified voter of the county or municipality
63	63	that appoints the director.
64	64	(b) An officer, employee, or member of an appointing entity
65	65	or of a political subdivision located in the authority may not be a
66	66	director.
67	67	Sec. 7966A.0303. BOARD VACANCY. A vacancy in the office of
68	68	director shall be filled for the unexpired term, if applicable, by
69	69	the appointing entity that appointed the previous director.
70	70	Sec. 7966A.0304. REMOVAL FROM OFFICE. (a) Under
71	71	procedures adopted by board rule, the board may remove a director
72	72	from office only for malfeasance in office.
73	73	(b) The procedures must be designed to guarantee due process
74	74	to the director.
75	75	Sec. 7966A.0305. VOTING REQUIREMENT. A majority vote of
76	76	the board is required to adopt any measure.
77	77	SUBCHAPTER D. POWERS AND DUTIES
78	78	Sec. 7966A.0401. MUNICIPAL UTILITY DISTRICT POWERS. Except
79	79	as otherwise provided by this chapter, the authority has the
80	80	rights, powers, privileges, and functions conferred and imposed by
81	81	the general law applicable to a municipal utility district created
82	82	under Section 59, Article XVI, Texas Constitution, including those
83	83	conferred by Chapters 30, 49, and 54, Water Code.
84	84	Sec. 7966A.0402. ACQUISITION AND USE OF PROPERTY. The
85	85	authority may operate, control, purchase, construct, lease, or
86	86	acquire, inside or outside the boundaries of the authority,
87	87	property, works, facilities, or improvements, whether previously
88	88	existing or to be made, constructed, or acquired, that the board
89	89	finds necessary to carry out the powers granted by this chapter or
90	90	general law.
91	91	Sec. 7966A.0403. WATER RIGHTS. The authority may acquire,
92	92	develop, and use rights to groundwater or surface water.
93	93	Sec. 7966A.0404. EMINENT DOMAIN. (a) Except as provided by
94	94	Subsection (b), to carry out an authority power or purpose, the
95	95	authority, in the manner provided by Chapter 49, Water Code, may
96	96	exercise the power of eminent domain to acquire land, an easement,
97	97	or other property inside or outside the authority's boundaries.
98	98	(b) The authority may not exercise the power of eminent
99	99	domain to acquire land owned by a municipal water district that the
100	100	district has acquired as a surface water reservoir site.
101	101	Sec. 7966A.0405. GENERAL CONTRACT POWERS. (a) The
102	102	authority may enter into a contract with a person, including a
103	103	political subdivision, on terms the board considers desirable,
104	104	fair, and advantageous for:
105	105	(1) the purchase or sale of raw or treated water;
106	106	(2) the purchase, lease, use, management, control, or
107	107	operation of water treatment or distribution facilities or sewer
108	108	collection and treatment facilities, all or part of the facilities
109	109	or systems owned by the other political subdivision, in accordance
110	110	with terms mutually agreed on by the governing bodies of the
111	111	contracting parties; or
112	112	(3) planning, making preliminary surveys,
113	113	investigations, or feasibility reports, engineering, or reports of
114	114	any kind.
115	115	(b) A contract for the acquisition of an existing water or
116	116	sewer facility may be made on terms approved by the contracting
117	117	parties.
118	118	(c) If changes in plans or specifications are necessary
119	119	after performance of a construction contract begins, the board may
120	120	approve change orders necessary to decrease or increase the amount
121	121	of materials, equipment, or supplies to be provided under the
122	122	contract or the amount of work to be performed. The total cost of
123	123	the change orders may not increase the original contract price by
124	124	more than 25 percent.
125	125	Sec. 7966A.0406. WATER, SEWER, SOLID WASTE, OR DRAINAGE
126	126	CONTRACTS; ELECTION NOT REQUIRED. The authority and a municipal
127	127	corporation or other political subdivision may enter into a water,
128	128	sewer, solid waste, or drainage contract or any combination of
129	129	those contracts without the necessity of an election by any
130	130	contracting party to approve the contract.
131	131	Sec. 7966A.0407. TREATMENT OF PAYMENTS UNDER CERTAIN
132	132	MUNICIPAL CORPORATION CONTRACTS. A payment by a municipal
133	133	corporation for the purchase of water or the treatment and disposal
134	134	of sewage is a maintenance and operating expense of the utility
135	135	system or combined systems of the municipal corporation unless the
136	136	contract:
137	137	(1) provides for the municipal corporation to acquire
138	138	an ownership interest in the facilities; or
139	139	(2) makes other provisions.
140	140	Sec. 7966A.0408. TAX PROHIBITION. The authority may not
141	141	impose a tax.
142	142	SUBCHAPTER E. BONDS
143	143	Sec. 7966A.0501. REVENUE BONDS. The authority may issue
144	144	revenue bonds to carry out any of its powers, functions, or
145	145	obligations.
146	146	Sec. 7966A.0502. BONDS FOR CERTAIN FACILITIES. If the
147	147	authority operates a facility under contract with a municipal
148	148	corporation, it may, if the contract permits the issuance, issue
149	149	bonds to improve or extend the facility.
150	150	SECTION 2. (a) Not later than the 45th day after the
151	151	effective date of this Act, the city council of the City of Mineral
152	152	Wells and the commissioners courts of Palo Pinto County, Parker
153	153	County, and Stephens County each shall appoint the appropriate
154	154	number of directors to the board of directors of the Cross Timbers
155	155	Regional Utility Authority as required under Section 7966A.0301,
156	156	Special District Local Laws Code, as added by this Act.
157	157	(b) Notwithstanding Section 7966A.0301(e), Special
158	158	District Local Laws Code, as added by this Act, at the first meeting
159	159	of the board of directors of the Cross Timbers Regional Utility
160	160	Authority after the effective date of this Act, the board shall
161	161	select a presiding officer from among the directors appointed under
162	162	Subsection (a) of this section to serve as presiding officer for the
163	163	remainder of the director's term.
164	164	(c) The presiding officer selected under Subsection (b) of
165	165	this section will serve an initial term that expires January 1,
166	166	2027. The six other directors appointed under Subsection (a) of
167	167	this section shall draw lots to determine which three directors
168	168	will serve initial terms that expire on January 1, 2025, and which
169	169	three directors will serve initial terms that expire January 1,
170	170	2027.
171	171	SECTION 3. (a) The legal notice of the intention to
172	172	introduce this Act, setting forth the general substance of this
173	173	Act, has been published as provided by law, and the notice and a
174	174	copy of this Act have been furnished to all persons, agencies,
175	175	officials, or entities to which they are required to be furnished
176	176	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
177	177	Government Code.
178	178	(b) The governor, one of the required recipients, has
179	179	submitted the notice and Act to the Texas Commission on
180	180	Environmental Quality.
181	181	(c) The Texas Commission on Environmental Quality has filed
182	182	its recommendations relating to this Act with the governor, the
183	183	lieutenant governor, and the speaker of the house of
184	184	representatives within the required time.
185	185	(d) All requirements of the constitution and laws of this
186	186	state and the rules and procedures of the legislature with respect
187	187	to the notice, introduction, and passage of this Act are fulfilled
188	188	and accomplished.
189	189	SECTION 4. (a) Section 7966A.0404, Special District Local
190	190	Laws Code, as added by Section 1 of this Act, takes effect only if
191	191	this Act receives a two-thirds vote of all the members elected to
192	192	each house.
193	193	(b) If this Act does not receive a two-thirds vote of all the
194	194	members elected to each house, Subchapter D, Chapter 7966A, Special
195	195	District Local Laws Code, as added by Section 1 of this Act, is
196	196	amended by adding Section 7966A.0404 to read as follows:
197	197	Sec. 7966A.0404. NO EMINENT DOMAIN POWER. The authority
198	198	may not exercise the power of eminent domain.
199	199	SECTION 5. This Act takes effect September 1, 2023.