Texas 2025 - 89th Regular

Texas Senate Bill SB1194 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Flores S.B. No. 1194
2		-
3		-
	2	+	(In the Senate - Filed February 10, 2025; February 28, 2025,
	3	+	read first time and referred to Committee on Water, Agriculture and
	4	+	Rural Affairs; March 17, 2025, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 6, Nays 0;
	6	+	March 17, 2025, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1194 By: Hinojosa of Nueces
4	9
5	10
6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to creating the Central Texas Water Alliance; providing
9	14		authority to issue bonds; granting the power of eminent domain;
10	15		providing authority to impose fees.
11	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	17		SECTION 1. Subtitle X, Title 6, Special District Local Laws
13	18		Code, is amended by adding Chapter 11020 to read as follows:
14	19		CHAPTER 11020. CENTRAL TEXAS WATER ALLIANCE
15	20		SUBCHAPTER A. GENERAL PROVISIONS
16	21		Sec. 11020.0101. DEFINITIONS. In this chapter:
17	22		(1) "Alliance" means the Central Texas Water Alliance.
18	23		(2) "Board" means the board of directors of the
19	24		alliance.
20	25		(3) "Director" means a member of the board.
21	26		(4) "District" means any district or authority created
22	27		under Section 52, Article III, or Section 59, Article XVI, Texas
23	28		Constitution, regardless of the manner of creation.
24	29		(5) "Local government" means:
25	30		(A) a municipality, county, district, or other
26	31		political subdivision of this state;
27	32		(B) a local government corporation;
28	33		(C) a nonprofit corporation created to act on
29	34		behalf of a local government; or
30	35		(D) a combination of two or more of the entities
31	36		described by this subdivision.
32	37		(6) "Private entity" includes an individual,
33	38		corporation, organization, business trust, estate, trust,
34	39		partnership, and association and any other legal entity that is not
35	40		a governmental body or agency.
36	41		(7) "Sponsor" means:
37	42		(A) the initial sponsors of the alliance under
38	43		Section 11020.0105; and
39	44		(B) a local government or private entity added to
40	45		the alliance as a member under Section 11020.0106.
41	46		(8) "Water" includes:
42	47		(A) groundwater, percolating or otherwise,
43	48		notwithstanding the quality of the groundwater;
44	49		(B) any surface water, naturally or artificially
45	50		impounded or in a navigable or nonnavigable watercourse; and
46	51		(C) municipal wastewater or industrial
47	52		wastewater, including municipal wastewater or industrial
48	53		wastewater that has been treated to a quality suitable for reuse for
49	54		a beneficial use.
50	55		Sec. 11020.0102. NATURE OF ALLIANCE. The alliance is a
51	56		regional water authority created under and essential to accomplish
52	57		the purposes of Section 59, Article XVI, Texas Constitution.
53	58		Sec. 11020.0103. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.
54	59		(a) The alliance is created to serve a public use and benefit.
55	60		(b) All land and other property included in the territory of
56	61		the alliance will benefit from the works and projects to be
57	62		accomplished by the alliance under powers conferred by Section 59,
58	63		Article XVI, Texas Constitution, and powers granted under this
59	64		chapter.
60	65		Sec. 11020.0104. ALLIANCE TERRITORY. The territory of the
61	66		alliance is composed of the territory:
62	67		(1) of the sponsors, including territory within the
63	68		municipal boundaries of a sponsor that is a municipality;
64	69		(2) if applicable, located in the service areas of the
65	70		sponsors, including the territory within the sponsors'
66	71		certificates of convenience and necessity; and
67	72		(3) added to and not excluded from the alliance in
68	73		accordance with applicable law.
69	74		Sec. 11020.0105. INITIAL SPONSORS. The initial sponsors of
70	75		the alliance are:
71	76		(1) Bell County;
72	77		(2) Bell County Water Control and Improvement District
73	78		No. 1;
74	79		(3) Clearwater Underground Water Conservation
75	80		District; and
76	81		(4) McLennan County.
77	82		Sec. 11020.0106. METHOD OF ADDING SPONSORS. (a) A local
78	83		government or a private entity may petition the board to add that
79	84		local government or private entity as a sponsor.
80	85		(b) A petition under Subsection (a) must be submitted in the
81	86		manner and form required by board rule.
82	87		(c) On receipt of a petition under Subsection (a), the board
83	88		shall set a hearing on the petition and provide notice of the date,
84	89		time, place, and purpose of the hearing to:
85	90		(1) the sponsors of the alliance; and
86	91		(2) the petitioning local government or private
87	92		entity.
88	93		(d) At the hearing, the board shall determine whether:
89	94		(1) the local government or private entity will
90	95		benefit from being added to the alliance as a sponsor; and
91	96		(2) it is in the best interest of the alliance to add
92	97		the local government or private entity to the alliance as a sponsor.
93	98		(e) If, after a hearing on the petition, the board
94	99		determines that the local government or private entity should be
95	100		added to the alliance as a sponsor, the board shall issue an order:
96	101		(1) adding the local government or private entity to
97	102		the alliance;
98	103		(2) adding the local government's or private entity's
99	104		territory or service area to the territory of the alliance;
100	105		(3) making the local government's or private entity's
101	106		territory or service area subject to the privileges, duties,
102	107		assets, and financial obligations of the alliance to the same
103	108		degree as other sponsors already included in the alliance; and
104	109		(4) stating the effective date of the order.
105	110		(f) If the subject of the order is a local government, the
106	111		effective date of the order must allow enough time for the local
107	112		government to comply with Subsection (g).
108	113		(g) A local government that is the subject of an order
109	114		issued under Subsection (e) shall publish notice of the alliance's
110	115		proposal to add the local government to the alliance as a sponsor.
111	116		The notice must:
112	117		(1) be published in a newspaper of general circulation
113	118		in the county in which the local government is located;
114	119		(2) be published at least once per week for two
115	120		consecutive weeks and with the first publication appearing on or
116	121		before the 14th day before the effective date of the order; and
117	122		(3) state the effective date of the order.
118	123		Sec. 11020.0107. METHOD OF REMOVING SPONSORS. (a) The
119	124		governing body of a sponsor may petition the board to remove the
120	125		entity from the alliance as a sponsor.
121	126		(b) A petition must be submitted in the manner and form
122	127		required by board rule.
123	128		(c) After receiving a petition under Subsection (a), the
124	129		board shall:
125	130		(1) decide whether the petitioning sponsor should be
126	131		removed from the alliance as a sponsor; and
127	132		(2) by order approve, conditionally approve, or
128	133		disapprove the petition.
129	134		(d) The board may not approve a petition submitted under
130	135		this section if that action would impair or violate or conflict with
131	136		the terms of any outstanding bonds, notes, or other obligations of
132	137		the alliance.
133	138		(e) An order issued under Subsection (c) that approves or
134	139		conditionally approves a sponsor's petition to be removed from the
135	140		alliance as a sponsor must address:
136	141		(1) all matters related to the removal as determined
137	142		by the board, including the removal of the territory of the sponsor
138	143		and, if applicable, territory located in the service area of the
139	144		sponsor as provided by the sponsor's certificate of convenience and
140	145		necessity; and
141	146		(2) if applicable, any conditions imposed by the board
142	147		that the petitioning sponsor must satisfy before the board approves
143	148		the petition, which may include:
144	149		(A) payment by the petitioning sponsor of all
145	150		bonds, notes, or other obligations issued by the alliance on behalf
146	151		of the sponsor;
147	152		(B) payment by the petitioning sponsor of the
148	153		sponsor's pro rata share of any bond, note, or other obligation
149	154		issued by the alliance, other than the bonds, notes, or other
150	155		obligations described by Paragraph (A), if the payment is allowed
151	156		under the terms of the bond, note, or other obligation;
152	157		(C) conditions related to the ownership or
153	158		transfer of ownership of real property, facilities, equipment,
154	159		personnel, and supplies; and
155	160		(D) conditions the alliance considers necessary
156	161		for the winding up of activities in connection with the removal of
157	162		the petitioning sponsor as a sponsor from the alliance.
158	163		(f) If the board by order issued under Subsection (c)
159	164		conditionally approves a sponsor's petition, the petitioning
160	165		sponsor remains a sponsor and shall make all payments owed to the
161	166		alliance when due and shall satisfy all conditions included in the
162	167		order. The board shall approve the petition immediately after all
163	168		required payments to the alliance are received and all conditions
164	169		included in the order are satisfied as determined by the board.
165	170		(g) The removal of a sponsor from the alliance under this
166	171		section does not prohibit the former sponsor from contracting with
167	172		the alliance for the provision of water supply, wastewater
168	173		treatment, or other services provided by the alliance.
169	174		Sec. 11020.0108. REAPPORTIONMENT OF DIRECTORS. After the
170	175		addition or removal of a sponsor under this subchapter, the board by
171	176		rule shall reapportion the directors of the alliance among the
172	177		sponsors in accordance with Section 11020.0201(c)(2). The board
173	178		may increase or decrease the number of directors on the board in
174	179		accordance with Section 11020.0201(a).
175	180		Sec. 11020.0109. LIBERAL CONSTRUCTION OF CHAPTER. This
176	181		chapter shall be liberally construed to effect its purposes.
177	182		SUBCHAPTER B. BOARD OF DIRECTORS
178	183		Sec. 11020.0201. DIRECTORS. (a) Except for the initial
179	184		board of directors, the alliance is governed by a board of directors
180	185		consisting of at least 5 and not more than 18 members.
181	186		(b) The board is responsible for the management, operation,
182	187		and control of the alliance.
183	188		(c) The board by rule shall:
184	189		(1) establish the number of directors of the alliance;
185	190		and
186	191		(2) apportion the directors for each sponsor based on
187	192		the amount of water contracted to be supplied to the sponsor under
188	193		the terms of the alliance's water supply contract with the sponsor,
189	194		subject to Section 11020.0203(a).
190	195		Sec. 11020.0202. ELIGIBILITY TO SERVE AS DIRECTOR. (a) To
191	196		be eligible to serve as a director, a person must be:
192	197		(1) at least 18 years of age; and
193	198		(2) a resident of the territory located in the
194	199		alliance or an employee of a sponsor.
195	200		(b) A director who also serves on the governing body of a
196	201		sponsor is not a dual officeholder and is not prohibited by the
197	202		common law doctrine of incompatibility from serving on both the
198	203		board and the governing body.
199	204		(c) Service on the board by a public officeholder is an
200	205		additional duty of that person's office.
201	206		Sec. 11020.0203. APPOINTMENT OF DIRECTORS. (a) Each
202	207		sponsor is entitled to appoint at least one director.
203	208		(b) Each director must be appointed by the governing body of
204	209		a sponsor in accordance with the rules adopted under Section
205	210		11020.0201 that govern the apportionment of directors among the
206	211		sponsors.
207	212		(c) Each sponsor shall appoint the appropriate number of
208	213		directors not earlier than January 1 and not later than February 28
209	214		of each year.
210	215		Sec. 11020.0204. TERMS OF OFFICE. (a) Directors serve
211	216		staggered three-year terms, with one-third or as near as possible
212	217		to one-third of the members' terms expiring February 28 of each
213	218		year.
214	219		(b) A director's term begins on March 1 of the year the
215	220		director is appointed.
216	221		(c) A director may not serve more than five consecutive
217	222		terms as a director.
218	223		Sec. 11020.0205. REMOVAL OF DIRECTOR. A sponsor that
219	224		appoints a director may remove the director from office at any time,
220	225		with or without cause.
221	226		Sec. 11020.0206. BOARD VACANCY. If there is a vacancy on
222	227		the board, the governing body of the sponsor that appointed the
223	228		director who vacated the office shall appoint a director to serve
224	229		the remainder of the term.
225	230		Sec. 11020.0207. VOTING AUTHORITY. (a) Except as provided
226	231		by Subsection (b), each director is entitled to one vote on any
227	232		issue before the board.
228	233		(b) The board may establish a graduated voting procedure
229	234		after each sponsor has appointed a director to the board.
230	235		Sec. 11020.0208. OFFICERS. At the first meeting of the
231	236		board after March 1 of each year, the board shall elect officers for
232	237		the alliance, including a chair, vice chair, secretary, and
233	238		treasurer.
234	239		Sec. 11020.0209. MEETINGS AND ACTIONS OF BOARD; QUORUM.
235	240		(a) The board may meet as many times each year as the board
236	241		considers appropriate.
237	242		(b) A concurrence of a majority of the directors present and
238	243		voting is sufficient for transacting any business of the alliance
239	244		unless other applicable law, or the alliance by rule, requires a
240	245		concurrence of a greater number of directors for a specific type of
241	246		decision.
242	247		(c) Directors of the alliance are public officials and are
243	248		entitled to governmental immunity for their actions in their
244	249		capacity as directors and officers of the alliance.
245	250		Sec. 11020.0210. CONFLICTS OF INTEREST. (a) A director
246	251		appointed by a sponsor that has regulatory authority over an issue
247	252		before the board shall:
248	253		(1) before a vote or decision on the issue, file an
249	254		affidavit stating the nature and extent of the regulatory
250	255		authority; and
251	256		(2) abstain from any further participation on the
252	257		issue.
253	258		(b) A director required to file an affidavit related to an
254	259		issue before the board under Subsection (a) may not:
255	260		(1) attend a closed meeting related to the issue; and
256	261		(2) vote on a matter related to the issue unless a
257	262		majority of the directors are required to file an affidavit under
258	263		Subsection (a) related to that issue.
259	264		SUBCHAPTER C. POWERS AND DUTIES
260	265		Sec. 11020.0301. GENERAL POWERS AND DUTIES. (a) The
261	266		alliance may:
262	267		(1) acquire, purchase, own, hold, lease, construct,
263	268		improve, and maintain a reservoir, groundwater well, or other
264	269		source of water supply, including:
265	270		(A) groundwater, surface water, and wastewater
266	271		reused directly or indirectly; and
267	272		(B) aquifer storage and recovery facilities;
268	273		(2) acquire, own, construct, operate, repair,
269	274		improve, maintain, or extend, inside or outside the alliance's
270	275		boundaries, water and wastewater works, improvements, facilities,
271	276		plants, pipelines, equipment, and appliances for:
272	277		(A) the treatment and transportation of water and
273	278		wastewater;
274	279		(B) the direct or indirect reuse of wastewater;
275	280		(C) aquifer storage and recovery projects; and
276	281		(D) the provision of wholesale water and
277	282		wastewater services to alliance customers, municipalities,
278	283		districts, water supply corporations, and other persons in this
279	284		state;
280	285		(3) acquire, purchase, own, hold, lease, and maintain
281	286		interests, including capacity rights and other contractual rights,
282	287		in sources of water supply, reservoirs, groundwater wells, water
283	288		and wastewater systems, treatment works, improvements, facilities,
284	289		plants, equipment, appliances, aquifer storage and recovery
285	290		projects, and the direct or indirect reuse of wastewater;
286	291		(4) finance any purchase or acquisition through a
287	292		bond, note, or other obligation under Subchapter E, or through a
288	293		lease-purchase agreement; and
289	294		(5) sell, lease, convey, or otherwise dispose of any
290	295		right, interest, or property the alliance considers to be
291	296		unnecessary for the efficient operation or maintenance of the
292	297		alliance's facilities.
293	298		(b) In addition to the powers specifically provided by this
294	299		chapter, the alliance may exercise the powers provided by Section
295	300		65.201, Water Code.
296	301		Sec. 11020.0302. ALLIANCE POLICIES, RULES, AND BYLAWS. The
297	302		alliance may adopt and enforce policies, rules, and bylaws
298	303		reasonably required to implement this chapter, including rules
299	304		governing procedures before the board and rules regarding
300	305		implementation, enforcement, and any other matters related to the
301	306		exercise of the rights, powers, privileges, and functions conferred
302	307		on the alliance by this chapter for the provision of water and
303	308		wastewater service.
304	309		Sec. 11020.0303. WATER CONSERVATION OR DROUGHT CONTINGENCY
305	310		PLANS. The alliance by rule may develop, prepare, revise, adopt,
306	311		implement, enforce, and manage water conservation or drought
307	312		contingency plans for the alliance or any portion of the alliance.
308	313		Sec. 11020.0304. SPONSOR CONVEYANCES AND ACQUISITIONS. (a)
309	314		In this section, "utility system" has the meaning assigned by
310	315		Section 1502.001, Government Code.
311	316		(b) A sponsor may convey a utility system facility or asset
312	317		or the sponsor's interest in a utility system facility or asset to
313	318		the alliance without holding an election to approve the conveyance.
314	319		(c) A sponsor is exempt from the provisions of Chapter 1502,
315	320		Government Code, regarding the conveyance, sale, or acquisition of
316	321		a utility system, or any related works, improvements, facilities,
317	322		plants, equipment, or appliances.
318	323		Sec. 11020.0305. CONTRACTS. (a) The alliance may contract
319	324		with any person to carry out a power authorized by this chapter.
320	325		(b) A person who enters into a contract with the alliance
321	326		may pledge to the payment of the contract any source of revenue that
322	327		may be available to the person, including ad valorem taxes, if the
323	328		person has the authority to impose those taxes.
324	329		(c) Payments made under a contract with the alliance
325	330		constitute an operating expense of the person served under the
326	331		contract, unless otherwise prohibited by a previously outstanding
327	332		obligation of the person. To the extent a person pledges funds to
328	333		the payment of the contract that are to be derived from the person's
329	334		own water system, the payments constitute an operating expense of
330	335		that system.
331	336		Sec. 11020.0306. COOPERATIVE CONTRACTS. The alliance may
332	337		enter into an interlocal contract with a local government under
333	338		Chapter 791, Government Code, to carry out a power of the alliance.
334	339		Sec. 11020.0307. RATES AND FEES. (a) The alliance shall
335	340		establish rates and fees to be assessed against sponsors and
336	341		customers of the alliance. The rates and fees may be established by
337	342		classes of customers, by project, or by area of service.
338	343		(b) A sponsor, local government, water supply corporation,
339	344		private entity, or other person that contracts with the alliance
340	345		shall establish, charge, and collect fees, rates, charges, rentals,
341	346		and other amounts for any service or facility provided under or in
342	347		connection with a contract with the alliance and shall pledge
343	348		sufficient amounts to make all payments required under the
344	349		contract.
345	350		Sec. 11020.0308. EMINENT DOMAIN. (a) The alliance may
346	351		exercise the power of eminent domain to acquire a fee simple or
347	352		other interest in property if the interest is necessary for the
348	353		alliance to exercise the rights or authority conferred by this
349	354		chapter.
350	355		(b) The alliance shall exercise the right of eminent domain
351	356		in the manner provided by Chapter 21, Property Code. The alliance
352	357		is not required to give bond for appeal or bond for costs in a
353	358		condemnation suit or other suit to which it is a party.
354	359		(c) The alliance may not use the power of eminent domain for
355	360		the condemnation of land for the purpose of acquiring rights to
356	361		groundwater or for the purpose of acquiring water or water rights.
357	362		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
358	363		Sec. 11020.0401. AD VALOREM TAXES PROHIBITED. The alliance
359	364		may not impose an ad valorem tax.
360	365		Sec. 11020.0402. GIFTS, GRANTS, LOANS, AND OTHER MONEY.
361	366		The alliance may apply for, accept, receive, and administer gifts,
362	367		grants, loans, and other money available from any source.
363	368		SUBCHAPTER E. BONDS, NOTES, AND OTHER OBLIGATIONS
364	369		Sec. 11020.0501. REVENUE BONDS, NOTES, AND OTHER
365	370		OBLIGATIONS. (a) In addition to bonds, notes, and other
366	371		obligations that the alliance is authorized to issue under other
367	372		law, to accomplish the purposes of the alliance, the alliance may
368	373		issue bonds, notes, or other obligations payable solely from and
369	374		secured by all or part of any funds or any revenue from any source or
370	375		sources, including:
371	376		(1) fees, rates, and other charges the alliance
372	377		imposes or collects;
373	378		(2) the sale of:
374	379		(A) water;
375	380		(B) water or wastewater services;
376	381		(C) water rights or capacity;
377	382		(D) water transmission rights, capacity, or
378	383		services;
379	384		(E) water pumping;
380	385		(F) wastewater reused directly or indirectly;
381	386		(G) aquifer storage and recovery services;
382	387		(H) sewer services; or
383	388		(I) any other service or product of the alliance
384	389		provided inside or outside the boundaries of the alliance;
385	390		(3) grants or gifts;
386	391		(4) the ownership or operation of all or a designated
387	392		part of the alliance's works, improvements, facilities, plants, or
388	393		equipment; and
389	394		(5) the proceeds of contracts.
390	395		(b) Bonds, notes, or other obligations issued by the
391	396		alliance may be first or subordinate lien obligations at the
392	397		board's discretion.
393	398		(c) In connection with any bonds, notes, or other
394	399		obligations of the alliance, the alliance may exercise any power of
395	400		an issuer under Chapter 1371, Government Code.
396	401		(d) The alliance may conduct a public, private, or
397	402		negotiated sale of the bonds, notes, or other obligations.
398	403		(e) The alliance may enter into one or more indentures of
399	404		trust to further secure its bonds, notes, or other obligations.
400	405		(f) The alliance may issue bonds, notes, or other
401	406		obligations in more than one series as necessary to carry out the
402	407		purposes of this chapter. In issuing bonds, notes, or other
403	408		obligations secured by revenue of the alliance, the alliance may
404	409		reserve the right to issue additional bonds, notes, or other
405	410		obligations secured by the alliance's revenue that are on parity
406	411		with or are senior or subordinate to the bonds, notes, or other
407	412		obligations issued earlier.
408	413		(g) A resolution of the board or a trust indenture securing
409	414		the bonds, notes, or other obligations may specify additional
410	415		provisions that constitute a contract between the alliance and the
411	416		alliance's bondholders, noteholders, or other obligation holders.
412	417		(h) Bonds, notes, or other obligations may be additionally
413	418		secured by deed of trust or mortgage on any or all of the alliance's
414	419		facilities.
415	420		(i) The authority provided by this chapter for the
416	421		authorization and issuance of bonds, notes, and other obligations
417	422		is in addition to, and not in lieu of, the authority otherwise
418	423		established under general law and may not be construed as a
419	424		limitation on, or a modification of, general law providing for
420	425		authorization and issuance of bonds, notes, and other forms of
421	426		obligations. Nothing in this chapter may be construed as affecting
422	427		any existing contract, bond, note, or other obligation of the
423	428		alliance or any indenture, covenant, mortgage, or other agreement
424	429		relating to them.
425	430		Sec. 11020.0502. ELECTION NOT REQUIRED. The alliance is
426	431		not required to hold an election to approve the issuance of revenue
427	432		bonds or notes or of other obligations under this subchapter.
428	433		Sec. 11020.0503. USE OF REVENUE AND GROWTH PROJECTIONS.
429	434		For the purposes of attorney general review and approval and in lieu
430	435		of any other manner of demonstrating the ability to pay debt service
431	436		and satisfy any other pecuniary obligations relating to bonds,
432	437		notes, or other obligations, the alliance may demonstrate the
433	438		alliance's ability to satisfy the debt service and those
434	439		obligations using accumulated funds of the alliance and revenue and
435	440		growth projections prepared by a professional utility rate
436	441		consultant at the direction of the alliance. If the resolution
437	442		authorizing the issuance of the bonds, notes, or other obligations
438	443		provides that the alliance intends to increase rates to the extent
439	444		necessary to pay debt service and satisfy any other pecuniary
440	445		obligations arising under the bonds, notes, or other obligations,
441	446		the revenue projections prepared by a professional utility rate
442	447		consultant may include forecast rate increases and accumulated and
443	448		available fund balances as determined by the alliance.
444	449		Sec. 11020.0504. REFUNDING BONDS. The alliance may issue
445	450		refunding bonds, notes, and other obligations to refund any of its
446	451		bonds, notes, or other obligations in any manner provided by law,
447	452		including Chapter 1207, Government Code.
448	453		Sec. 11020.0505. BONDS, NOTES, AND OTHER OBLIGATIONS EXEMPT
449	454		FROM TAXATION. A bond, note, or other obligation issued under this
450	455		chapter, a transaction related to the bond, note, or other
451	456		obligation, the interest on the bond, note, or other obligation,
452	457		and the profit from the sale of the bond, note, or other obligation
453	458		are exempt from taxation by this state or a political subdivision of
454	459		this state.
455	460		SECTION 2. (a) The sponsors of the Central Texas Water
456	461		Alliance shall appoint the initial directors under Section
457	462		11020.0203, Special District Local Laws Code, as added by this Act,
458	463		not earlier than 30 days and not later than 90 days after the
459	464		effective date of this Act.
460	465		(b) As soon as practicable after the initial directors have
461	466		been appointed under Section 11020.0203, Special District Local
462	467		Laws Code, as added by this Act, the initial directors shall draw
463	468		lots to determine which directors serve a one-year term expiring
464	469		February 28, 2027, which directors serve a two-year term expiring
465	470		February 28, 2028, and which directors serve a three-year term
466	471		expiring February 28, 2029. The lots must be split into thirds or
467	472		as near to thirds as possible.
468	473		SECTION 3. (a) The legal notice of the intention to
469	474		introduce this Act, setting forth the general substance of this
470	475		Act, has been published as provided by law, and the notice and a
471	476		copy of this Act have been furnished to all persons, agencies,
472	477		officials, or entities to which they are required to be furnished
473	478		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
474	479		Government Code.
475	480		(b) The governor, one of the required recipients, has
476	481		submitted the notice and Act to the Texas Commission on
477	482		Environmental Quality.
478	483		(c) The Texas Commission on Environmental Quality has filed
479	484		its recommendations relating to this Act with the governor, the
480	485		lieutenant governor, and the speaker of the house of
481	486		representatives within the required time.
482	487		(d) All requirements of the constitution and laws of this
483	488		state and the rules and procedures of the legislature with respect
484	489		to the notice, introduction, and passage of this Act are fulfilled
485	490		and accomplished.
486	491		SECTION 4. (a) If this Act does not receive a two-thirds
487	492		vote of all the members elected to each house, Subchapter C, Chapter
488	493		11020, Special District Local Laws Code, as added by Section 1 of
489	494		this Act, is amended by striking Section 11020.0308 and
490	495		substituting Section 11020.0308 to read as follows:
491	496		Sec. 11020.0308. NO EMINENT DOMAIN POWER. The district may
492	497		not exercise the power of eminent domain.
493	498		(b) This section is not intended to be an expression of a
494	499		legislative interpretation of the requirements of Section 17(c),
495	500		Article I, Texas Constitution.
496	501		SECTION 5. This Act takes effect immediately if it receives
497	502		a vote of two-thirds of all the members elected to each house, as
498	503		provided by Section 39, Article III, Texas Constitution. If this
499	504		Act does not receive the vote necessary for immediate effect, this
500	505		Act takes effect September 1, 2025.
	506	+	* * * * *