88R8822 LRM-F
By: Zaffirini S.B. No. 2575
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Springs Hill Special Utility
District; authorizing a fee; granting the power of eminent domain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 6, Special District Local Laws
Code, is amended by adding Chapter 7208 to read as follows:
CHAPTER 7208. SPRINGS HILL SPECIAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7208.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Corporation" means the Springs Hill Water Supply
Corporation.
(3) "Director" means a board member.
(4) "District" means the Springs Hill Special Utility
District.
Sec. 7208.0102. NATURE OF DISTRICT. The district is a
special utility district in Guadalupe and Wilson Counties created
under and essential to accomplish the purposes of Section 59,
Article XVI, Texas Constitution. The district is created to serve a
public use and benefit.
Sec. 7208.0103. CONFIRMATION ELECTION REQUIRED. If the
creation of the district is not confirmed at a confirmation and
initial directors' election held before September 1, 2026:
(1) the district is dissolved on September 1, 2026,
except that the district shall:
(A) pay any debts incurred;
(B) transfer to Guadalupe or Wilson County, as
appropriate, any assets of the district that remain after the
payment of debts; and
(C) maintain the organization of the district
until all debts are paid and remaining assets are transferred; and
(2) this chapter expires September 1, 2027.
Sec. 7208.0104. APPLICABILITY OF OTHER LAW. Except as
otherwise provided by this chapter, Chapters 49 and 65, Water Code,
apply to the district.
Sec. 7208.0105. INITIAL DISTRICT TERRITORY. The district's
boundaries are coextensive with the boundaries of the territory
that is described by Certificate of Convenience and Necessity
No. 10666 as it existed on the effective date of the Act enacting
this section.
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 7208.0151. TEMPORARY DIRECTORS. (a) The temporary
board of directors of the district is composed of:
(1) James Martin;
(2) Steve Ramsey;
(3) Bernard Mueller;
(4) Deborah Magin;
(5) Keith Steffens; and
(6) Michael Andrews.
(b) Each temporary director shall qualify for office as
provided by Section 49.055, Water Code.
(c) If a temporary director fails to qualify for office, the
temporary directors who have qualified shall appoint a person to
fill the vacancy. If at any time there are fewer than four
qualified temporary directors, the Texas Commission on
Environmental Quality shall appoint the necessary number of
directors to fill all vacancies on the board.
(d) Temporary directors serve until the earlier of:
(1) the date initial directors are elected under
Section 7208.0152; or
(2) the date this chapter expires under Section
7208.0103.
Sec. 7208.0152. CONFIRMATION AND INITIAL DIRECTORS'
ELECTION. (a) Before September 1, 2026, the temporary directors
shall hold an election to confirm the creation of the district and
to elect six initial directors in accordance with Chapters 49 and
65, Water Code.
(b) The temporary board of directors shall determine the
method for determining the initial term of each person on the
initial board of directors. The terms must be clearly stated on the
ballot for the confirmation and directors' election.
(c) Section 41.001(a), Election Code, does not apply to a
confirmation and directors' election held as provided by this
section.
(d) The initial directors shall continue to serve until the
district directors elected at the first regularly scheduled
election of directors qualify for office.
Sec. 7208.0153. TRANSFER OF ASSETS; DISSOLUTION. (a) If the
creation of the district is confirmed under Section 7208.0152, the
corporation shall transfer the assets, debts, and contractual
rights and obligations of the corporation to the district.
(b) Following the transfer under Subsection (a):
(1) the board of directors of the corporation shall
commence dissolution proceedings of the corporation;
(2) Certificate of Convenience and Necessity No. 10666
is considered to be held by the district; and
(3) the board of directors of the corporation shall
notify:
(A) the Texas Commission on Environmental
Quality of the dissolution of the corporation; and
(B) the Public Utility Commission of Texas of the
transfer of Certificate of Convenience and Necessity No. 10666 to
the district.
(c) On receipt of notice under Subsection (b)(3)(B), the
Public Utility Commission of Texas shall note in its records that
Certificate of Convenience and Necessity No. 10666 is held by the
district and shall reissue the certificate in the name of the
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.
Sec. 7208.0154. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2027.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7208.0201. DIRECTORS. The district shall be governed
by a board of not fewer than 5 and not more than 11 directors,
elected in accordance with Section 65.103, Water Code.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7208.0301. GENERAL POWERS. Except as otherwise
provided by this chapter, the district has all of the rights,
powers, privileges, authority, functions, and duties provided by
the general law of this state, including Chapters 49 and 65, Water
Code, applicable to special utility districts created under Section
59, Article XVI, Texas Constitution.
Sec. 7208.0302. WATER SERVICE IMPACT FEE. (a) The district
may charge a water service impact fee that is not greater than the
capital recovery fee charged by the corporation on October 26,
2021, under the corporation's tariff.
(b) Chapter 395, Local Government Code, does not apply to an
initial water service impact fee set under Subsection (a).
(c) The district may increase the water service impact fee
authorized under Subsection (a) only as provided by Chapter 395,
Local Government Code, as approved by the Texas Commission on
Environmental Quality, or as otherwise provided by law.
SECTION 2. (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 3. (a) If this Act does not receive a two-thirds
vote of all the members elected to each house, Subchapter C, Chapter
7208, Special District Local Laws Code, as added by Section 1 of
this Act, is amended by adding Section 7208.0303 to read as follows:
Sec. 7208.0303. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(b) This section is not intended to be an expression of a
legislative interpretation of the requirements of Section 17(c),
Article I, Texas Constitution.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.