88R26417 SCP-D
By: Rogers H.B. No. 5406
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Cross Timbers Regional Utility
Authority; granting a limited power of eminent domain; providing
authority to issue bonds; providing authority to impose assessments
and fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 6, Special District Local Laws
Code, is amended by adding Chapter 7966A to read as follows:
CHAPTER 7966A. CROSS TIMBERS REGIONAL UTILITY AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7966A.0101. DEFINITIONS. In this chapter:
(1) "Authority" means the Cross Timbers Regional
Utility Authority.
(2) "Board" means the board of directors of the
authority.
(3) "Director" means a member of the board.
Sec. 7966A.0102. NATURE OF AUTHORITY. (a) The authority is
a conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution.
(b) The authority is a political subdivision of this state.
Sec. 7966A.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) The authority is created to serve a public use and benefit.
(b) All land and other property included in the boundaries
of the authority will benefit from the works and projects
accomplished by the authority under the powers conferred by Section
59, Article XVI, Texas Constitution.
(c) The creation of the authority is essential to accomplish
the purposes of Section 59, Article XVI, Texas Constitution.
SUBCHAPTER B. AUTHORITY TERRITORY
Sec. 7966A.0201. AUTHORITY TERRITORY. The authority is
composed of all of the territory contained in Palo Pinto County,
Parker County, and Stephens County, as that territory may have been
modified under:
(1) Subchapter H, Chapter 54, Water Code;
(2) Subchapter J, Chapter 49, Water Code; or
(3) other law.
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 7966A.0301. COMPOSITION OF BOARD; TERMS. (a) The
authority is governed by a board of seven directors.
(b) Directors are appointed as follows:
(1) one director appointed by the Commissioners Court
of Palo Pinto County;
(2) three directors appointed by the Commissioners
Court of Parker County;
(3) one director appointed by the Commissioners Court
of Stephens County; and
(4) two directors appointed by the city council of the
City of Mineral Wells.
(c) Directors serve staggered four-year terms. Directors
may not serve more than two terms.
(d) When a director's term expires, the appointing entity
shall appoint a successor.
(e) The board shall select a presiding officer from among
the directors who have served on the board for at least two years to
serve in that position for the remainder of the director's term.
Sec. 7966A.0302. QUALIFICATIONS FOR OFFICE. (a) Each
director must be a qualified voter of the county or municipality
that appoints the director.
(b) An officer, employee, or member of an appointing entity
or of a political subdivision located in the authority may not be a
director.
Sec. 7966A.0303. BOARD VACANCY. A vacancy in the office of
director shall be filled for the unexpired term, if applicable, by
the appointing entity that appointed the previous director.
Sec. 7966A.0304. REMOVAL FROM OFFICE. (a) Under
procedures adopted by board rule, the board may remove a director
from office only for malfeasance in office.
(b) The procedures must be designed to guarantee due process
to the director.
Sec. 7966A.0305. VOTING REQUIREMENT. A majority vote of
the board is required to adopt any measure.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 7966A.0401. MUNICIPAL UTILITY DISTRICT POWERS. Except
as otherwise provided by this chapter, the authority has the
rights, powers, privileges, and functions conferred and imposed by
the general law applicable to a municipal utility district created
under Section 59, Article XVI, Texas Constitution, including those
conferred by Chapters 30, 49, and 54, Water Code.
Sec. 7966A.0402. ACQUISITION AND USE OF PROPERTY. The
authority may operate, control, purchase, construct, lease, or
acquire, inside or outside the boundaries of the authority,
property, works, facilities, or improvements, whether previously
existing or to be made, constructed, or acquired, that the board
finds necessary to carry out the powers granted by this chapter or
general law.
Sec. 7966A.0403. WATER RIGHTS. The authority may acquire,
develop, and use rights to groundwater or surface water.
Sec. 7966A.0404. EMINENT DOMAIN. (a) Except as provided by
Subsection (b), to carry out an authority power or purpose, the
authority, in the manner provided by Chapter 49, Water Code, may
exercise the power of eminent domain to acquire land, an easement,
or other property inside or outside the authority's boundaries.
(b) The authority may not exercise the power of eminent
domain to acquire land owned by a municipal water district that the
district has acquired as a surface water reservoir site.
Sec. 7966A.0405. GENERAL CONTRACT POWERS. (a) The
authority may enter into a contract with a person, including a
political subdivision, on terms the board considers desirable,
fair, and advantageous for:
(1) the purchase or sale of raw or treated water;
(2) the purchase, lease, use, management, control, or
operation of water treatment or distribution facilities or sewer
collection and treatment facilities, all or part of the facilities
or systems owned by the other political subdivision, in accordance
with terms mutually agreed on by the governing bodies of the
contracting parties; or
(3) planning, making preliminary surveys,
investigations, or feasibility reports, engineering, or reports of
any kind.
(b) A contract for the acquisition of an existing water or
sewer facility may be made on terms approved by the contracting
parties.
(c) If changes in plans or specifications are necessary
after performance of a construction contract begins, the board may
approve change orders necessary to decrease or increase the amount
of materials, equipment, or supplies to be provided under the
contract or the amount of work to be performed. The total cost of
the change orders may not increase the original contract price by
more than 25 percent.
Sec. 7966A.0406. WATER, SEWER, SOLID WASTE, OR DRAINAGE
CONTRACTS; ELECTION NOT REQUIRED. The authority and a municipal
corporation or other political subdivision may enter into a water,
sewer, solid waste, or drainage contract or any combination of
those contracts without the necessity of an election by any
contracting party to approve the contract.
Sec. 7966A.0407. TREATMENT OF PAYMENTS UNDER CERTAIN
MUNICIPAL CORPORATION CONTRACTS. A payment by a municipal
corporation for the purchase of water or the treatment and disposal
of sewage is a maintenance and operating expense of the utility
system or combined systems of the municipal corporation unless the
contract:
(1) provides for the municipal corporation to acquire
an ownership interest in the facilities; or
(2) makes other provisions.
Sec. 7966A.0408. TAX PROHIBITION. The authority may not
impose a tax.
SUBCHAPTER E. BONDS
Sec. 7966A.0501. REVENUE BONDS. The authority may issue
revenue bonds to carry out any of its powers, functions, or
obligations.
Sec. 7966A.0502. BONDS FOR CERTAIN FACILITIES. If the
authority operates a facility under contract with a municipal
corporation, it may, if the contract permits the issuance, issue
bonds to improve or extend the facility.
SECTION 2. (a) Not later than the 45th day after the
effective date of this Act, the city council of the City of Mineral
Wells and the commissioners courts of Palo Pinto County, Parker
County, and Stephens County each shall appoint the appropriate
number of directors to the board of directors of the Cross Timbers
Regional Utility Authority as required under Section 7966A.0301,
Special District Local Laws Code, as added by this Act.
(b) Notwithstanding Section 7966A.0301(e), Special
District Local Laws Code, as added by this Act, at the first meeting
of the board of directors of the Cross Timbers Regional Utility
Authority after the effective date of this Act, the board shall
select a presiding officer from among the directors appointed under
Subsection (a) of this section to serve as presiding officer for the
remainder of the director's term.
(c) The presiding officer selected under Subsection (b) of
this section will serve an initial term that expires January 1,
2027. The six other directors appointed under Subsection (a) of
this section shall draw lots to determine which three directors
will serve initial terms that expire on January 1, 2025, and which
three directors will serve initial terms that expire January 1,
2027.
SECTION 3. (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.
SECTION 4. (a) Section 7966A.0404, Special District Local
Laws Code, as added by Section 1 of this Act, takes effect only if
this Act receives a two-thirds vote of all the members elected to
each house.
(b) If this Act does not receive a two-thirds vote of all the
members elected to each house, Subchapter D, Chapter 7966A, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 7966A.0404 to read as follows:
Sec. 7966A.0404. NO EMINENT DOMAIN POWER. The authority
may not exercise the power of eminent domain.
SECTION 5. This Act takes effect September 1, 2023.