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