Texas 2025 - 89th Regular

Texas House Bill HB2626 Compare Versions

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Old	New		Differences
1		-	~~89R18946~~ MP-F
2		-	By: Buckley~~, Hickland, Curry, Spiller~~ H.B. No. 2626
3		-	~~Substitute the following for H.B. No. 2626:~~
4		-	~~By: Martinez C.S.H.B. No. 2626~~
	1	+	89R6023 MP-F
	2	+	By: Buckley H.B. No. 2626
	3	+
	4	+
5	5
6	6
7	7		A BILL TO BE ENTITLED
8	8		AN ACT
9	9		relating to creating the Central Texas Water Alliance; providing
10	10		authority to issue bonds; granting the power of eminent domain;
11	11		providing authority to impose fees.
12	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13		SECTION 1. Subtitle X, Title 6, Special District Local Laws
14	14		Code, is amended by adding Chapter 11020 to read as follows:
15	15		CHAPTER 11020. CENTRAL TEXAS WATER ALLIANCE
16	16		SUBCHAPTER A. GENERAL PROVISIONS
17	17		Sec. 11020.0101. DEFINITIONS. In this chapter:
18	18		(1) "Alliance" means the Central Texas Water Alliance.
19	19		(2) "Board" means the board of directors of the
20	20		alliance.
21	21		(3) "Director" means a member of the board.
22	22		(4) "District" means any district or authority created
23	23		under Section 52, Article III, or Section 59, Article XVI, Texas
24	24		Constitution, regardless of the manner of creation.
25	25		(5) "Local government" means:
26	26		(A) a municipality, county, district, or other
27	27		political subdivision of this state;
28	28		(B) a local government corporation;
29	29		(C) a nonprofit corporation created to act on
30	30		behalf of a local government; or
31	31		(D) a combination of two or more of the entities
32	32		described by this subdivision.
33	33		(6) "Private entity" includes an individual,
34	34		corporation, organization, business trust, estate, trust,
35	35		partnership, and association and any other legal entity that is not
36	36		a governmental body or agency.
37	37		(7) "Sponsor" means:
38	38		(A) the initial sponsors of the alliance under
39	39		Section 11020.0105; and
40	40		(B) a local government or private entity added to
41	41		the alliance as a member under Section 11020.0106.
42	42		(8) "Water" includes:
43	43		(A) groundwater, percolating or otherwise,
44	44		notwithstanding the quality of the groundwater;
45	45		(B) any surface water, naturally or artificially
46	46		impounded or in a navigable or nonnavigable watercourse; and
47	47		(C) municipal wastewater or industrial
48	48		wastewater, including municipal wastewater or industrial
49	49		wastewater that has been treated to a quality suitable for reuse for
50	50		a beneficial use.
51	51		Sec. 11020.0102. NATURE OF ALLIANCE. The alliance is a
52	52		regional water authority created under and essential to accomplish
53	53		the purposes of Section 59, Article XVI, Texas Constitution.
54	54		Sec. 11020.0103. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
55	55		(a) The alliance is created to serve a public use and benefit.
56	56		(b) All land and other property included in the territory of
57	57		the alliance will benefit from the works and projects to be
58	58		accomplished by the alliance under powers conferred by Section 59,
59	59		Article XVI, Texas Constitution, and powers granted under this
60	60		chapter.
61	61		Sec. 11020.0104. ALLIANCE TERRITORY. The territory of the
62	62		alliance is composed of the territory:
63	63		(1) of the sponsors, including territory within the
64	64		municipal boundaries of a sponsor that is a municipality;
65	65		(2) if applicable, located in the service areas of the
66	66		sponsors, including the territory within the sponsors'
67	67		certificates of convenience and necessity; and
68	68		(3) added to and not excluded from the alliance in
69	69		accordance with applicable law.
70	70		Sec. 11020.0105. INITIAL SPONSORS. The initial sponsors of
71	71		the alliance are:
72	72		(1) Bell County;
73	73		(2) Bell County Water Control and Improvement District
74	74		No. 1;
75	75		(3) Clearwater Underground Water Conservation
76	76		District; and
77	77		(4) McLennan County.
78	78		Sec. 11020.0106. METHOD OF ADDING SPONSORS. (a) A local
79	79		government or a private entity may petition the board to add that
80	80		local government or private entity as a sponsor.
81	81		(b) A petition under Subsection (a) must be submitted in the
82	82		manner and form required by board rule.
83	83		(c) On receipt of a petition under Subsection (a), the board
84	84		shall set a hearing on the petition and provide notice of the date,
85	85		time, place, and purpose of the hearing to:
86	86		(1) the sponsors of the alliance; and
87	87		(2) the petitioning local government or private
88	88		entity.
89	89		(d) At the hearing, the board shall determine whether:
90	90		(1) the local government or private entity will
91	91		benefit from being added to the alliance as a sponsor; and
92	92		(2) it is in the best interest of the alliance to add
93	93		the local government or private entity to the alliance as a sponsor.
94	94		(e) If, after a hearing on the petition, the board
95	95		determines that the local government or private entity should be
96	96		added to the alliance as a sponsor, the board shall issue an order:
97	97		(1) adding the local government or private entity to
98	98		the alliance;
99	99		(2) adding the local government's or private entity's
100	100		territory or service area to the territory of the alliance;
101	101		(3) making the local government's or private entity's
102	102		territory or service area subject to the privileges, duties,
103	103		assets, and financial obligations of the alliance to the same
104	104		degree as other sponsors already included in the alliance; and
105	105		(4) stating the effective date of the order.
106	106		(f) If the subject of the order is a local government, the
107	107		effective date of the order must allow enough time for the local
108	108		government to comply with Subsection (g).
109	109		(g) A local government that is the subject of an order
110	110		issued under Subsection (e) shall publish notice of the alliance's
111	111		proposal to add the local government to the alliance as a sponsor.
112	112		The notice must:
113	113		(1) be published in a newspaper of general circulation
114	114		in the county in which the local government is located;
115	115		(2) be published at least once per week for two
116	116		consecutive weeks and with the first publication appearing on or
117	117		before the 14th day before the effective date of the order; and
118	118		(3) state the effective date of the order.
119	119		Sec. 11020.0107. METHOD OF REMOVING SPONSORS. (a) The
120	120		governing body of a sponsor may petition the board to remove the
121	121		entity from the alliance as a sponsor.
122	122		(b) A petition must be submitted in the manner and form
123	123		required by board rule.
124	124		(c) After receiving a petition under Subsection (a), the
125	125		board shall:
126	126		(1) decide whether the petitioning sponsor should be
127	127		removed from the alliance as a sponsor; and
128	128		(2) by order approve, conditionally approve, or
129	129		disapprove the petition.
130	130		(d) The board may not approve a petition submitted under
131	131		this section if that action would impair or violate or conflict with
132	132		the terms of any outstanding bonds, notes, or other obligations of
133	133		the alliance.
134	134		(e) An order issued under Subsection (c) that approves or
135	135		conditionally approves a sponsor's petition to be removed from the
136	136		alliance as a sponsor must address:
137	137		(1) all matters related to the removal as determined
138	138		by the board, including the removal of the territory of the sponsor
139	139		and, if applicable, territory located in the service area of the
140	140		sponsor as provided by the sponsor's certificate of convenience and
141	141		necessity; and
142	142		(2) if applicable, any conditions imposed by the board
143	143		that the petitioning sponsor must satisfy before the board approves
144	144		the petition, which may include:
145	145		(A) payment by the petitioning sponsor of all
146	146		bonds, notes, or other obligations issued by the alliance on behalf
147	147		of the sponsor;
148	148		(B) payment by the petitioning sponsor of the
149	149		sponsor's pro rata share of any bond, note, or other obligation
150	150		issued by the alliance, other than the bonds, notes, or other
151	151		obligations described by Paragraph (A), if the payment is allowed
152	152		under the terms of the bond, note, or other obligation;
153	153		(C) conditions related to the ownership or
154	154		transfer of ownership of real property, facilities, equipment,
155	155		personnel, and supplies; and
156	156		(D) conditions the alliance considers necessary
157	157		for the winding up of activities in connection with the removal of
158	158		the petitioning sponsor as a sponsor from the alliance.
159	159		(f) If the board by order issued under Subsection (c)
160	160		conditionally approves a sponsor's petition, the petitioning
161	161		sponsor remains a sponsor and shall make all payments owed to the
162	162		alliance when due and shall satisfy all conditions included in the
163	163		order. The board shall approve the petition immediately after all
164	164		required payments to the alliance are received and all conditions
165	165		included in the order are satisfied as determined by the board.
166	166		(g) The removal of a sponsor from the alliance under this
167	167		section does not prohibit the former sponsor from contracting with
168	168		the alliance for the provision of water supply, wastewater
169	169		treatment, or other services provided by the alliance.
170	170		Sec. 11020.0108. REAPPORTIONMENT OF DIRECTORS. After the
171	171		addition or removal of a sponsor under this subchapter, the board by
172	172		rule shall reapportion the directors of the alliance among the
173	173		sponsors in accordance with Section 11020.0201(c)(2). The board
174	174		may increase or decrease the number of directors on the board in
175	175		accordance with Section 11020.0201(a).
176	176		Sec. 11020.0109. LIBERAL CONSTRUCTION OF CHAPTER. This
177	177		chapter shall be liberally construed to effect its purposes.
178	178		SUBCHAPTER B. BOARD OF DIRECTORS
179	179		Sec. 11020.0201. DIRECTORS. (a) Except for the initial
180	180		board of directors, the alliance is governed by a board of directors
181	181		consisting of at least 5 and not more than 18 members.
182	182		(b) The board is responsible for the management, operation,
183	183		and control of the alliance.
184	184		(c) The board by rule shall:
185	185		(1) establish the number of directors of the alliance;
186	186		and
187	187		(2) apportion the directors for each sponsor based on
188	188		the amount of water contracted to be supplied to the sponsor under
189	189		the terms of the alliance's water supply contract with the sponsor,
190	190		subject to Section 11020.0203(a).
191	191		Sec. 11020.0202. ELIGIBILITY TO SERVE AS DIRECTOR. (a) To
192	192		be eligible to serve as a director, a person must be:
193	193		(1) at least 18 years of age; and
194	194		(2) a resident of the territory located in the
195	195		alliance or an employee of a sponsor.
196	196		(b) A director who also serves on the governing body of a
197	197		sponsor is not a dual officeholder and is not prohibited by the
198	198		common law doctrine of incompatibility from serving on both the
199	199		board and the governing body.
200	200		(c) Service on the board by a public officeholder is an
201	201		additional duty of that person's office.
202	202		Sec. 11020.0203. APPOINTMENT OF DIRECTORS. (a) Each
203	203		sponsor is entitled to appoint at least one director.
204	204		(b) Each director must be appointed by the governing body of
205	205		a sponsor in accordance with the rules adopted under Section
206	206		11020.0201 that govern the apportionment of directors among the
207	207		sponsors.
208	208		(c) Each sponsor shall appoint the appropriate number of
209	209		directors not earlier than January 1 and not later than February 28
210	210		of each year.
211	211		Sec. 11020.0204. TERMS OF OFFICE. (a) Directors serve
212	212		staggered three-year terms, with one-third or as near as possible
213	213		to one-third of the members' terms expiring February 28 of each
214	214		year.
215	215		(b) A director's term begins on March 1 of the year the
216	216		director is appointed.
217	217		(c) A director may not serve more than five consecutive
218	218		terms as a director.
219	219		Sec. 11020.0205. REMOVAL OF DIRECTOR. A sponsor that
220	220		appoints a director may remove the director from office at any time,
221	221		with or without cause.
222	222		Sec. 11020.0206. BOARD VACANCY. If there is a vacancy on
223	223		the board, the governing body of the sponsor that appointed the
224	224		director who vacated the office shall appoint a director to serve
225	225		the remainder of the term.
226	226		Sec. 11020.0207. VOTING AUTHORITY. (a) Except as provided
227	227		by Subsection (b), each director is entitled to one vote on any
228	228		issue before the board.
229	229		(b) The board may establish a graduated voting procedure
230	230		after each sponsor has appointed a director to the board.
231	231		Sec. 11020.0208. OFFICERS. At the first meeting of the
232	232		board after March 1 of each year, the board shall elect officers for
233	233		the alliance, including a chair, vice chair, secretary, and
234	234		treasurer.
235	235		Sec. 11020.0209. MEETINGS AND ACTIONS OF BOARD; QUORUM.
236	236		(a) The board may meet as many times each year as the board
237	237		considers appropriate.
238	238		(b) A concurrence of a majority of the directors present and
239	239		voting is sufficient for transacting any business of the alliance
240	240		unless other applicable law, or the alliance by rule, requires a
241	241		concurrence of a greater number of directors for a specific type of
242	242		decision.
243	243		(c) Directors of the alliance are public officials and are
244	244		entitled to governmental immunity for their actions in their
245	245		capacity as directors and officers of the alliance.
246		-	Sec. 11020.0210. CONFLICTS OF INTEREST. (a) A director
247		-	appointed by a sponsor that has regulatory authority over an issue
248		-	before the board shall:
249		-	(1) before a vote or decision on the issue, file an
250		-	affidavit stating the nature and extent of the regulatory
251		-	authority; and
252		-	(2) abstain from any further participation on the
253		-	issue.
254		-	(b) A director required to file an affidavit related to an
255		-	issue before the board under Subsection (a) may not:
256		-	(1) attend a closed meeting related to the issue; and
257		-	(2) vote on a matter related to the issue unless a
258		-	majority of the directors are required to file an affidavit under
259		-	Subsection (a) related to that issue.
260	246		SUBCHAPTER C. POWERS AND DUTIES
261	247		Sec. 11020.0301. GENERAL POWERS AND DUTIES. (a) The
262	248		alliance may:
263	249		(1) acquire, purchase, own, hold, lease, construct,
264	250		improve, and maintain a reservoir, groundwater well, or other
265	251		source of water supply, including:
266	252		(A) groundwater, surface water, and wastewater
267	253		reused directly or indirectly; and
268	254		(B) aquifer storage and recovery facilities;
269	255		(2) acquire, own, construct, operate, repair,
270	256		improve, maintain, or extend, inside or outside the alliance's
271	257		boundaries, water and wastewater works, improvements, facilities,
272	258		plants, pipelines, equipment, and appliances for:
273	259		(A) the treatment and transportation of water and
274	260		wastewater;
275	261		(B) the direct or indirect reuse of wastewater;
276	262		(C) aquifer storage and recovery projects; and
277	263		(D) the provision of wholesale water and
278	264		wastewater services to alliance customers, municipalities,
279	265		districts, water supply corporations, and other persons in this
280	266		state;
281	267		(3) acquire, purchase, own, hold, lease, and maintain
282	268		interests, including capacity rights and other contractual rights,
283	269		in sources of water supply, reservoirs, groundwater wells, water
284	270		and wastewater systems, treatment works, improvements, facilities,
285	271		plants, equipment, appliances, aquifer storage and recovery
286	272		projects, and the direct or indirect reuse of wastewater;
287	273		(4) finance any purchase or acquisition through a
288	274		bond, note, or other obligation under Subchapter E, or through a
289	275		lease-purchase agreement; and
290	276		(5) sell, lease, convey, or otherwise dispose of any
291	277		right, interest, or property the alliance considers to be
292	278		unnecessary for the efficient operation or maintenance of the
293	279		alliance's facilities.
294	280		(b) In addition to the powers specifically provided by this
295	281		chapter, the alliance may exercise the powers provided by Section
296	282		65.201, Water Code.
297	283		Sec. 11020.0302. ALLIANCE POLICIES, RULES, AND BYLAWS. The
298	284		alliance may adopt and enforce policies, rules, and bylaws
299	285		reasonably required to implement this chapter, including rules
300	286		governing procedures before the board and rules regarding
301	287		implementation, enforcement, and any other matters related to the
302	288		exercise of the rights, powers, privileges, and functions conferred
303	289		on the alliance by this chapter for the provision of water and
304	290		wastewater service.
305		-	Sec. 11020.0303. WATER CONSERVATION OR DROUGHT CONTINGENCY
	291	+	Sec. 11020.0303. EMINENT DOMAIN. (a) The alliance may
	292	+	exercise the power of eminent domain to acquire a fee simple or
	293	+	other interest in property if the interest is necessary for the
	294	+	alliance to exercise the rights or authority conferred by this
	295	+	chapter.
	296	+	(b) The alliance shall exercise the right of eminent domain
	297	+	in the manner provided by Chapter 21, Property Code. The alliance
	298	+	is not required to give bond for appeal or bond for costs in a
	299	+	condemnation suit or other suit to which it is a party.
	300	+	(c) The alliance may not use the power of eminent domain for
	301	+	the condemnation of land for the purpose of acquiring rights to
	302	+	groundwater or for the purpose of acquiring water or water rights.
	303	+	Sec. 11020.0304. WATER CONSERVATION OR DROUGHT CONTINGENCY
306	304		PLANS. The alliance by rule may develop, prepare, revise, adopt,
307	305		implement, enforce, and manage water conservation or drought
308	306		contingency plans for the alliance or any portion of the alliance.
309		-	Sec. 11020.~~0304~~. SPONSOR CONVEYANCES AND ACQUISITIONS. (a)
	307	+	Sec. 11020.0305. SPONSOR CONVEYANCES AND ACQUISITIONS. (a)
310	308		In this section, "utility system" has the meaning assigned by
311	309		Section 1502.001, Government Code.
312	310		(b) A sponsor may convey a utility system facility or asset
313	311		or the sponsor's interest in a utility system facility or asset to
314	312		the alliance without holding an election to approve the conveyance.
315	313		(c) A sponsor is exempt from the provisions of Chapter 1502,
316	314		Government Code, regarding the conveyance, sale, or acquisition of
317	315		a utility system, or any related works, improvements, facilities,
318	316		plants, equipment, or appliances.
319		-	Sec. 11020.~~0305~~. CONTRACTS. (a) The alliance may contract
	317	+	Sec. 11020.0306. CONTRACTS. (a) The alliance may contract
320	318		with any person to carry out a power authorized by this chapter.
321	319		(b) A person who enters into a contract with the alliance
322	320		may pledge to the payment of the contract any source of revenue that
323	321		may be available to the person, including ad valorem taxes, if the
324	322		person has the authority to impose those taxes.
325	323		(c) Payments made under a contract with the alliance
326	324		constitute an operating expense of the person served under the
327	325		contract, unless otherwise prohibited by a previously outstanding
328	326		obligation of the person. To the extent a person pledges funds to
329	327		the payment of the contract that are to be derived from the person's
330	328		own water system, the payments constitute an operating expense of
331	329		that system.
332		-	Sec. 11020.~~0306~~. COOPERATIVE CONTRACTS. The alliance may
	330	+	Sec. 11020.0307. COOPERATIVE CONTRACTS. The alliance may
333	331		enter into an interlocal contract with a local government under
334	332		Chapter 791, Government Code, to carry out a power of the alliance.
335		-	Sec. 11020.~~0307~~. RATES AND FEES. (a) The alliance shall
	333	+	Sec. 11020.0308. RATES AND FEES. (a) The alliance shall
336	334		establish rates and fees to be assessed against sponsors and
337	335		customers of the alliance. The rates and fees may be established by
338	336		classes of customers, by project, or by area of service.
339	337		(b) A sponsor, local government, water supply corporation,
340	338		private entity, or other person that contracts with the alliance
341	339		shall establish, charge, and collect fees, rates, charges, rentals,
342	340		and other amounts for any service or facility provided under or in
343	341		connection with a contract with the alliance and shall pledge
344	342		sufficient amounts to make all payments required under the
345	343		contract.
346		-	Sec. 11020.0308. EMINENT DOMAIN. (a) The alliance may
347		-	exercise the power of eminent domain to acquire a fee simple or
348		-	other interest in property if the interest is necessary for the
349		-	alliance to exercise the rights or authority conferred by this
350		-	chapter.
351		-	(b) The alliance shall exercise the right of eminent domain
352		-	in the manner provided by Chapter 21, Property Code. The alliance
353		-	is not required to give bond for appeal or bond for costs in a
354		-	condemnation suit or other suit to which it is a party.
355		-	(c) The alliance may not use the power of eminent domain for
356		-	the condemnation of land for the purpose of acquiring rights to
357		-	groundwater or for the purpose of acquiring water or water rights.
358	344		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
359	345		Sec. 11020.0401. AD VALOREM TAXES PROHIBITED. The alliance
360	346		may not impose an ad valorem tax.
361	347		Sec. 11020.0402. GIFTS, GRANTS, LOANS, AND OTHER MONEY.
362	348		The alliance may apply for, accept, receive, and administer gifts,
363	349		grants, loans, and other money available from any source.
364	350		SUBCHAPTER E. BONDS, NOTES, AND OTHER OBLIGATIONS
365	351		Sec. 11020.0501. REVENUE BONDS, NOTES, AND OTHER
366	352		OBLIGATIONS. (a) In addition to bonds, notes, and other
367	353		obligations that the alliance is authorized to issue under other
368	354		law, to accomplish the purposes of the alliance, the alliance may
369	355		issue bonds, notes, or other obligations payable solely from and
370	356		secured by all or part of any funds or any revenue from any source or
371	357		sources, including:
372	358		(1) fees, rates, and other charges the alliance
373	359		imposes or collects;
374	360		(2) the sale of:
375	361		(A) water;
376	362		(B) water or wastewater services;
377	363		(C) water rights or capacity;
378	364		(D) water transmission rights, capacity, or
379	365		services;
380	366		(E) water pumping;
381	367		(F) wastewater reused directly or indirectly;
382	368		(G) aquifer storage and recovery services;
383	369		(H) sewer services; or
384	370		(I) any other service or product of the alliance
385	371		provided inside or outside the boundaries of the alliance;
386	372		(3) grants or gifts;
387	373		(4) the ownership or operation of all or a designated
388	374		part of the alliance's works, improvements, facilities, plants, or
389	375		equipment; and
390	376		(5) the proceeds of contracts.
391	377		(b) Bonds, notes, or other obligations issued by the
392	378		alliance may be first or subordinate lien obligations at the
393	379		board's discretion.
394	380		(c) In connection with any bonds, notes, or other
395	381		obligations of the alliance, the alliance may exercise any power of
396	382		an issuer under Chapter 1371, Government Code.
397	383		(d) The alliance may conduct a public, private, or
398	384		negotiated sale of the bonds, notes, or other obligations.
399	385		(e) The alliance may enter into one or more indentures of
400	386		trust to further secure its bonds, notes, or other obligations.
401	387		(f) The alliance may issue bonds, notes, or other
402	388		obligations in more than one series as necessary to carry out the
403	389		purposes of this chapter. In issuing bonds, notes, or other
404	390		obligations secured by revenue of the alliance, the alliance may
405	391		reserve the right to issue additional bonds, notes, or other
406	392		obligations secured by the alliance's revenue that are on parity
407	393		with or are senior or subordinate to the bonds, notes, or other
408	394		obligations issued earlier.
409	395		(g) A resolution of the board or a trust indenture securing
410	396		the bonds, notes, or other obligations may specify additional
411	397		provisions that constitute a contract between the alliance and the
412	398		alliance's bondholders, noteholders, or other obligation holders.
413	399		(h) Bonds, notes, or other obligations may be additionally
414	400		secured by deed of trust or mortgage on any or all of the alliance's
415	401		facilities.
416	402		(i) The authority provided by this chapter for the
417	403		authorization and issuance of bonds, notes, and other obligations
418	404		is in addition to, and not in lieu of, the authority otherwise
419	405		established under general law and may not be construed as a
420	406		limitation on, or a modification of, general law providing for
421	407		authorization and issuance of bonds, notes, and other forms of
422	408		obligations. Nothing in this chapter may be construed as affecting
423	409		any existing contract, bond, note, or other obligation of the
424	410		alliance or any indenture, covenant, mortgage, or other agreement
425	411		relating to them.
426	412		Sec. 11020.0502. ELECTION NOT REQUIRED. The alliance is
427	413		not required to hold an election to approve the issuance of revenue
428	414		bonds or notes or of other obligations under this subchapter.
429	415		Sec. 11020.0503. USE OF REVENUE AND GROWTH PROJECTIONS.
430	416		For the purposes of attorney general review and approval and in lieu
431	417		of any other manner of demonstrating the ability to pay debt service
432	418		and satisfy any other pecuniary obligations relating to bonds,
433	419		notes, or other obligations, the alliance may demonstrate the
434	420		alliance's ability to satisfy the debt service and those
435	421		obligations using accumulated funds of the alliance and revenue and
436	422		growth projections prepared by a professional utility rate
437	423		consultant at the direction of the alliance. If the resolution
438	424		authorizing the issuance of the bonds, notes, or other obligations
439	425		provides that the alliance intends to increase rates to the extent
440	426		necessary to pay debt service and satisfy any other pecuniary
441	427		obligations arising under the bonds, notes, or other obligations,
442	428		the revenue projections prepared by a professional utility rate
443	429		consultant may include forecast rate increases and accumulated and
444	430		available fund balances as determined by the alliance.
445	431		Sec. 11020.0504. REFUNDING BONDS. The alliance may issue
446	432		refunding bonds, notes, and other obligations to refund any of its
447	433		bonds, notes, or other obligations in any manner provided by law,
448	434		including Chapter 1207, Government Code.
449	435		Sec. 11020.0505. BONDS, NOTES, AND OTHER OBLIGATIONS EXEMPT
450	436		FROM TAXATION. A bond, note, or other obligation issued under this
451	437		chapter, a transaction related to the bond, note, or other
452	438		obligation, the interest on the bond, note, or other obligation,
453	439		and the profit from the sale of the bond, note, or other obligation
454	440		are exempt from taxation by this state or a political subdivision of
455	441		this state.
456	442		SECTION 2. (a) The sponsors of the Central Texas Water
457	443		Alliance shall appoint the initial directors under Section
458	444		11020.0203, Special District Local Laws Code, as added by this Act,
459	445		not earlier than 30 days and not later than 90 days after the
460	446		effective date of this Act.
461	447		(b) As soon as practicable after the initial directors have
462	448		been appointed under Section 11020.0203, Special District Local
463	449		Laws Code, as added by this Act, the initial directors shall draw
464	450		lots to determine which directors serve a one-year term expiring
465	451		February 28, 2027, which directors serve a two-year term expiring
466	452		February 28, 2028, and which directors serve a three-year term
467	453		expiring February 28, 2029. The lots must be split into thirds or
468	454		as near to thirds as possible.
469	455		SECTION 3. (a) The legal notice of the intention to
470	456		introduce this Act, setting forth the general substance of this
471	457		Act, has been published as provided by law, and the notice and a
472	458		copy of this Act have been furnished to all persons, agencies,
473	459		officials, or entities to which they are required to be furnished
474	460		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
475	461		Government Code.
476	462		(b) The governor, one of the required recipients, has
477	463		submitted the notice and Act to the Texas Commission on
478	464		Environmental Quality.
479	465		(c) The Texas Commission on Environmental Quality has filed
480	466		its recommendations relating to this Act with the governor, the
481	467		lieutenant governor, and the speaker of the house of
482	468		representatives within the required time.
483	469		(d) All requirements of the constitution and laws of this
484	470		state and the rules and procedures of the legislature with respect
485	471		to the notice, introduction, and passage of this Act are fulfilled
486	472		and accomplished.
487	473		SECTION 4. (a) If this Act does not receive a two-thirds
488	474		vote of all the members elected to each house, Subchapter C, Chapter
489	475		11020, Special District Local Laws Code, as added by Section 1 of
490		-	this Act, is amended by ~~striking~~ Section 11020.~~0308 and~~
491		-	~~substituting Section 11020.0308 to read as~~ follows:
492		-	Sec. 11020.~~0308~~. NO EMINENT DOMAIN POWER. The district may
	476	+	this Act, is amended by adding Section 11020.0309 to read as
	477	+	follows:
	478	+	Sec. 11020.0309. NO EMINENT DOMAIN POWER. The district may
493	479		not exercise the power of eminent domain.
494	480		(b) This section is not intended to be an expression of a
495	481		legislative interpretation of the requirements of Section 17(c),
496	482		Article I, Texas Constitution.
497	483		SECTION 5. This Act takes effect immediately if it receives
498	484		a vote of two-thirds of all the members elected to each house, as
499	485		provided by Section 39, Article III, Texas Constitution. If this
500	486		Act does not receive the vote necessary for immediate effect, this
501	487		Act takes effect September 1, 2025.