Texas 2025 - 89th Regular

Texas Senate Bill SB1359 Compare Versions

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1	1	89R8464 ANG-F
2	2	By: Parker S.B. No. 1359
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6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation, powers, duties, and financing of the Wise
10	10	Regional Water District; granting a limited power of eminent
11	11	domain; providing authority to issue bonds; providing authority to
12	12	impose fees; creating a criminal offense.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subtitle X, Title 6, Special District Local Laws
15	15	Code, is amended by adding Chapter 11021 to read as follows:
16	16	CHAPTER 11021. WISE REGIONAL WATER DISTRICT
17	17	SUBCHAPTER A. GENERAL PROVISIONS
18	18	Sec. 11021.0101. DEFINITIONS. In this chapter:
19	19	(1) "Basic service area" means the geographic area in
20	20	the corporate limits of all participants and all customers and the
21	21	areas that are served by those members and customers.
22	22	(2) "Board" means the board of directors of the
23	23	district.
24	24	(3) "Contract member" means a governmental entity that
25	25	provides retail utility service in its boundaries, that contracts
26	26	with the district not later than the end of the second year after
27	27	the effective date of the Act enacting this chapter to preserve the
28	28	option to become a participant in the 10-year period following the
29	29	effective date of the Act enacting this chapter, and that agrees to
30	30	pay an annual pro rata share of the administrative and planning
31	31	costs of the district that are unrelated to capital projects to be
32	32	financed by the district, provided that the share of administrative
33	33	and planning costs may not exceed for a contract member 50 cents per
34	34	capita unless otherwise agreed by at least 75 percent of the
35	35	contract members having, collectively, at least 75 percent of the
36	36	population represented by all the contract members.
37	37	(4) "County" means Wise County, Texas.
38	38	(5) "Customer" means a wholesale user of the water or
39	39	wastewater services provided by the district that provides retail
40	40	utility service in the boundaries of the user.
41	41	(6) "District" means the Wise Regional Water District.
42	42	(7) "Participant" means a governmental entity that
43	43	provides retail utility service in the entity's boundaries and that
44	44	contracts with the district for the construction of and payment for
45	45	the water or wastewater projects to be financed by the district.
46	46	(8) "Service area" means that geographic area in the
47	47	boundaries of the district.
48	48	(9) "Subdistrict" means a subdistrict authorized to be
49	49	created under this chapter.
50	50	Sec. 11021.0102. LEGISLATIVE FINDINGS. (a) The
51	51	legislature finds that the creation and establishment of the
52	52	district and the creation and establishment of subdistricts in the
53	53	district are essential to the accomplishment of the purposes of
54	54	Section 59, Article XVI, Texas Constitution.
55	55	(b) The legislature finds that all of the land and other
56	56	property included in the boundaries of the district and in the
57	57	boundaries of a subdistrict will be benefited by the improvements,
58	58	works, and projects that are to be provided by the district and by
59	59	subdistricts under the powers conferred on the district and
60	60	subdistricts by this chapter, and that the district is created to
61	61	serve a public use and benefit and any subdistrict created will
62	62	serve a public use and will be for a public purpose.
63	63	Sec. 11021.0103. CREATION. (a) A conservation and
64	64	reclamation district is created under Section 59, Article XVI,
65	65	Texas Constitution. The district shall be known as the Wise
66	66	Regional Water District.
67	67	(b) An election confirming the creation of the district is
68	68	not required.
69	69	Sec. 11021.0104. BOUNDARIES. (a) Except as provided by
70	70	Subsection (b), the boundaries of the district are coextensive with
71	71	the boundaries of the county.
72	72	(b) The boundaries of the district also include the entire
73	73	area in the boundaries of any participant or contract member, a
74	74	portion of whose incorporated limits is partially in the boundaries
75	75	of the county as those boundaries existed on the effective date of
76	76	the Act enacting this chapter.
77	77	Sec. 11021.0105. EXPANSION OF DISTRICT. (a) The territory of
78	78	the district may be expanded to include the area within the
79	79	boundaries of a municipality outside the county, if the district
80	80	and the municipality execute a contract member's contract or a
81	81	participating member's contract not later than the second
82	82	anniversary of the effective date of the Act enacting this chapter.
83	83	(b) Approval of a contract member's contract between the
84	84	district and the municipality requires a three-quarters majority
85	85	vote of the district's board of directors. Approval of a
86	86	participating member's contract between the district and the
87	87	municipality requires a three-quarters majority vote of the
88	88	weighted vote of all directors eligible to vote.
89	89	SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
90	90	Sec. 11021.0201. BOARD OF DIRECTORS. (a) The district is
91	91	governed by a board of directors. A director may not be an elected
92	92	official of any governmental entity that has the authority to
93	93	appoint a member of the board.
94	94	(b) Directors shall be appointed by the commissioners court
95	95	of the county and the governing bodies of the participants and
96	96	contract members in the manner provided by Section 11021.0202.
97	97	(c) A director is subject to removal with or without cause
98	98	by action of the governing body of the entity that originally
99	99	appointed that member.
100	100	(d) The board has exclusive authority to manage the district
101	101	under this chapter.
102	102	Sec. 11021.02015. INITIAL BOARD. (a) The initial board
103	103	shall be appointed as follows:
104	104	(1) the county judge of the county shall appoint one
105	105	director; and
106	106	(2) each county commissioner serving on the Wise
107	107	County Commissioners Court shall appoint one director.
108	108	(b) The initial directors serve until the date the directors
109	109	are appointed under Section 11021.0202.
110	110	(c) This section expires on the second anniversary of the
111	111	effective date of the Act enacting this chapter.
112	112	Sec. 11021.0202. COMPOSITION OF BOARD. (a) Each
113	113	participant or contract member shall appoint one member to the
114	114	board and the Commissioners Court of Wise County shall appoint one
115	115	member to the board.
116	116	(b) The Commissioners Court of Wise County may appoint one
117	117	additional member to the board if the board determines that such an
118	118	appointment is in the best interests of the district and that the
119	119	directors to be appointed by the commissioners court are selected
120	120	from a list of nominees submitted to the commissioners court by the
121	121	board.
122	122	(c) An entity that contracts with the district more than
123	123	five years after the effective date of the Act enacting this chapter
124	124	is entitled to representation on the board only under the rules
125	125	established by the board for the admission of board members and
126	126	member entities. For a contract member to which this section
127	127	applies, the board may establish rules regarding:
128	128	(1) appointing members to the board by the contract
129	129	member;
130	130	(2) voting authority of a board member appointed by
131	131	the contract member; and
132	132	(3) for a member appointed by the contract member,
133	133	voting weight for that board member appointed by the contract
134	134	member.
135	135	Sec. 11021.0203. VOTES OF DIRECTORS. (a) Directors who are
136	136	appointed by the participants are entitled to vote on all matters
137	137	before the board, including all projects to be considered by the
138	138	board in all service areas of the district, regardless of whether
139	139	the participant is participating in the project.
140	140	(b) A board vote concerning the authorization of and
141	141	financial commitments for capital projects must be determined as
142	142	provided by this section.
143	143	(c) Each participant that is receiving or that has
144	144	contracted to receive service or capacity, including that service
145	145	or capacity to be received as a result of the capital project then
146	146	under consideration, has one vote for each four million gallons per
147	147	day, or portion of that amount, of service or capacity for which the
148	148	participant has contracted with the district. The amount for which
149	149	the participant has contracted shall be determined by taking into
150	150	account the amount of service or capacity the participant receives
151	151	from a water treatment plant, a wastewater treatment plant, or a raw
152	152	water supply, or any combination of the preceding.
153	153	(d) Each participant with a population of 50,000 or more is
154	154	entitled to one extra vote that may be cast on those matters
155	155	requiring a weighted vote.
156	156	(e) Participation in capital projects financed by the
157	157	district through the issuance of special facility bonds entitles
158	158	that entity to be classified as a participant, but does not entitle
159	159	that entity to receive any credit toward the four million gallons
160	160	per day of service or capacity standard established in Subsection
161	161	(c).
162	162	(f) A director who is appointed by a contract member that is
163	163	not a participant is entitled to one vote on all matters before the
164	164	board except those matters that require a weighted vote.
165	165	(g) Regardless of the date on which an entity became a
166	166	member, the entity is not entitled to a number of weighted votes
167	167	that exceeds 25 percent of the weighted votes of all directors
168	168	eligible to vote for a capital project.
169	169	(h) A director who is appointed by a contract member that is
170	170	not a participant is entitled to one vote on all matters before the
171	171	board except those matters that require a weighted vote.
172	172	Sec. 11021.0204. TERMS OF OFFICE. (a) Except as otherwise
173	173	provided by this chapter, directors serve staggered four-year terms
174	174	in accordance with the procedures to be adopted by the initial
175	175	board.
176	176	(b) A director may serve consecutive terms.
177	177	Sec. 11021.0205. DIRECTOR QUALIFICATIONS AND COMPENSATION.
178	178	(a) A director must be a qualified voter who resides in the
179	179	district and must qualify to serve by taking the oath of office and
180	180	furnishing evidence of the person's qualifications to serve on the
181	181	board consistent with the requirements of this chapter.
182	182	(b) A director is not entitled to receive compensation for
183	183	serving as a director, but may be reimbursed for actual reasonable
184	184	expenses necessarily incurred on behalf of the district or in the
185	185	discharge of official duties.
186	186	Sec. 11021.0206. EX OFFICIO BOARD MEMBERS. The board may
187	187	establish a category of ex officio directors and may provide for the
188	188	duties and responsibilities of the ex officio members in bylaws or
189	189	rules to be adopted by the board.
190	190	Sec. 11021.0207. BOARD PROCEDURES. (a) The board shall
191	191	prepare and adopt bylaws for the district, and shall hold regular,
192	192	special, or emergency meetings at times and on days or dates as
193	193	specified in those bylaws.
194	194	(b) A majority of the directors constitutes a quorum for the
195	195	transaction of district business, and approval of at least a
196	196	majority of the directors present at a meeting is necessary for
197	197	approval of any matter coming before the board, except in a
198	198	situation in which a weighted vote is required. If a weighted vote
199	199	is required, a majority of the weighted vote of all directors
200	200	eligible to vote is necessary for approval of any matter coming
201	201	before the board.
202	202	(c) The board shall provide in its bylaws for the method of
203	203	execution for all contracts, the signing of checks, and the
204	204	handling of any other matters approved by the board. The board
205	205	shall elect new officers annually.
206	206	(d) The board shall designate in the bylaws a regular place
207	207	for board meetings.
208	208	Sec. 11021.0208. BOARD OFFICERS. (a) The officers of the
209	209	board include the president, one or more vice presidents, a
210	210	secretary, and a treasurer.
211	211	(b) The board shall elect a president and any vice president
212	212	from among its members.
213	213	(c) The board may appoint a secretary, one or more assistant
214	214	secretaries, a treasurer, an assistant treasurer, and other
215	215	officers that are necessary. The secretary, assistant secretaries,
216	216	treasurer, and assistant treasurer are not required to be members
217	217	of the board.
218	218	(d) The president is the chief executive officer of the
219	219	district and shall preside over the meetings of the board. A vice
220	220	president may perform any duty and exercise any power of the
221	221	president when the president is absent or fails, refuses, or is
222	222	unable to act.
223	223	(e) The secretary or one of the assistant secretaries is
224	224	responsible for keeping the minutes of the meetings of the board and
225	225	all official records of the board and may certify the accuracy or
226	226	authenticity of any actions, proceedings, minutes, or records of
227	227	the board or of the district.
228	228	(f) The duties of the other officers may be prescribed by
229	229	the bylaws of the district.
230	230	Sec. 11021.0209. EMPLOYEES. The board may appoint and
231	231	employ any person, firm, corporation, partnership, and other entity
232	232	considered necessary to conduct the affairs of the district,
233	233	including engineers, attorneys, financial advisors, accountants, a
234	234	general manager, and other employees or consultants.
235	235	Sec. 11021.0210. CUSTOMER ADVISORY COUNCIL. (a) The board
236	236	shall establish a customer advisory council composed of one
237	237	representative from each customer receiving service from the
238	238	district.
239	239	(b) The members of the customer advisory council may act as
240	240	provided in the bylaws of the district or rules of the board, but
241	241	the customer advisory council may not vote on matters coming before
242	242	the board.
243	243	Sec. 11021.0211. CONFLICT OF INTEREST. The members of the
244	244	board and all other officers of the district are subject to the
245	245	conflict of interest provisions of Chapter 572, Government Code, in
246	246	the same manner as an elected or appointed officer expressly
247	247	subject to that chapter.
248	248	SUBCHAPTER C. POWERS AND DUTIES
249	249	Sec. 11021.0301. GENERAL POWERS AND DUTIES. (a) Subject to
250	250	specific provisions of this chapter, the district and the board
251	251	have the rights, powers, privileges, authority, and functions
252	252	granted by Section 59, Article XVI, Texas Constitution, including
253	253	the rights, powers, privileges, authority, and functions conferred
254	254	by Chapters 49 and 54, Water Code, relating to municipal utility
255	255	districts, together with the additional rights, powers,
256	256	privileges, authority, and functions authorized by this chapter.
257	257	(b) The district may not levy or collect ad valorem taxes.
258	258	(c) If any general law is in conflict or inconsistent with
259	259	this chapter, this chapter prevails.
260	260	Sec. 11021.0302. PLANNING AND ACQUISITION OF WORKS AND
261	261	FACILITIES. The district may plan, lay out, purchase, construct,
262	262	acquire, own, operate, maintain, repair, and improve, inside or
263	263	outside its boundaries, any works, improvements, facilities,
264	264	plants, equipment, and appliances, including any administrative
265	265	properties and facilities, any permits, franchises, licenses, or
266	266	contract or property rights, and any levees, drains, waterways,
267	267	lakes, reservoirs, channels, conduits, sewers, dams, stormwater
268	268	detention facilities, or other similar facilities and
269	269	improvements, whether for municipal, industrial, agricultural,
270	270	flood control, or related purposes, that are necessary, helpful, or
271	271	incidental to the exercise of any right, power, privilege,
272	272	authority, or function provided by this chapter, including
273	273	supplying water for municipal, domestic, and industrial uses, and
274	274	all other beneficial uses or controls; collecting, treating,
275	275	processing, disposing of, and controlling all domestic or
276	276	industrial wastes whether in fluid, solid, or composite state;
277	277	gathering, conducting, diverting, controlling, and treating local
278	278	stormwater or local harmful excesses of water in the boundaries of
279	279	the district; and irrigating and altering land elevations in the
280	280	boundaries of the district where needed.
281	281	Sec. 11021.0303. ACQUISITION OF PROPERTY; EMINENT DOMAIN.
282	282	(a) The district may acquire, by purchase or by exercise of the
283	283	power of eminent domain, any land, easements, rights-of-way, or
284	284	other property or improvements inside or outside the boundaries of
285	285	the district, including land above the probable high water line
286	286	around any reservoirs in which the district has an ownership or
287	287	operational interest, that are needed or are appropriate to carry
288	288	out the powers and functions of the district.
289	289	(b) The district may exercise the power of eminent domain in
290	290	the manner and with the privileges, rights, and immunities
291	291	available under the laws of this state, including Chapter 21,
292	292	Property Code.
293	293	(c) The district may not exercise the power of eminent
294	294	domain to acquire:
295	295	(1) any property located in a municipality located
296	296	wholly or partly in the county without prior consent by resolution
297	297	of the governing body of the municipality in whose jurisdiction the
298	298	subject property is located;
299	299	(2) any property located outside the county to be used
300	300	as a water supply reservoir without the consent of the county or
301	301	counties in which the reservoir is to be located;
302	302	(3) any property owned by the county, any
303	303	municipality, or any agency or instrumentality of a county or
304	304	municipality; or
305	305	(4) a waterworks system or a wastewater system that is
306	306	owned by a municipality, a political subdivision of the state,
307	307	private persons, or a nonprofit corporation.
308	308	Sec. 11021.0304. ADDITIONAL GENERAL AUTHORITY. The
309	309	district may:
310	310	(1) acquire, construct, improve, maintain, and
311	311	operate wholesale water and wastewater systems and treatment works
312	312	necessary to provide service to district customers; and
313	313	(2) acquire, construct, improve, and maintain any
314	314	water supply, reservoir, or interest in any water supply or
315	315	reservoir necessary to fully implement the powers and duties of the
316	316	district as provided by this chapter.
317	317	Sec. 11021.0305. PROVIDING SERVICES OUTSIDE DISTRICT. On
318	318	approval of the board of directors, the district may elect to
319	319	provide water, wastewater, solid waste, or nonhazardous liquid
320	320	waste services outside its service area, but the district may not be
321	321	compelled to supply those services for use outside its service area
322	322	except by order of the state agency that has jurisdiction over those
323	323	matters.
324	324	Sec. 11021.0306. RIGHTS OF BASIC SERVICE AREA. The basic
325	325	service area has the primary right to water or wastewater treatment
326	326	capacity and to water supply in each classification that the
327	327	district secures under permit from the state agency that has
328	328	jurisdiction.
329	329	Sec. 11021.0307. RIGHTS PROTECTED. (a) This chapter does
330	330	not compel any customer or prospective customer to secure water or
331	331	wastewater service from the district, except under contracts
332	332	voluntarily executed.
333	333	(b) This chapter does not alter any outstanding permit,
334	334	contract, or other obligation, nor does this chapter in any manner
335	335	impair the rights of any entity to own, operate, maintain, or
336	336	otherwise use or control any water, wastewater, solid waste, or
337	337	liquid waste system in accordance with the law applicable to that
338	338	entity.
339	339	Sec. 11021.0308. DISPOSAL SYSTEMS. (a) The district may
340	340	exercise the powers needed to establish, acquire, operate, and
341	341	maintain a regional solid waste disposal system and a nonhazardous
342	342	liquid waste disposal system.
343	343	(b) The district shall provide the services afforded by a
344	344	disposal system to:
345	345	(1) any user as determined by the board if the services
346	346	are to be rendered in the basic service area of the district; and
347	347	(2) any customer if the services are to be rendered
348	348	outside the basic service area.
349	349	Sec. 11021.0309. WATER QUALITY RULES. (a) The district may
350	350	adopt and enforce rules to protect water quality in and flowing to
351	351	or from the areas in or surrounding the lakes, reservoirs, and other
352	352	sources of water supply owned, operated, or controlled by the
353	353	district.
354	354	(b) The rules shall be adopted for the purpose of the
355	355	prevention of waste or unauthorized use of water controlled by the
356	356	district and of the regulation of privileges on any land,
357	357	reservoir, or easement owned or controlled by the district.
358	358	(c) The rules shall be adopted and enforced in accordance
359	359	with Subchapter D, Chapter 54, Water Code, and must be consistent
360	360	with the applicable rules of any state agency that has jurisdiction
361	361	over those sources of water supply.
362	362	(d) Under a contract with a county, municipality, or water
363	363	district, the district may adopt and enforce rules applicable in
364	364	the boundaries of the county, municipality, or water district and
365	365	in other areas under the jurisdiction of the county, municipality,
366	366	or water district to:
367	367	(1) preserve and protect the quality and sanitary
368	368	condition of all water, sanitary sewage, and stormwater that may
369	369	affect a water supply of the county, municipality, or water
370	370	district or the district or the waters of the state;
371	371	(2) prevent waste or unauthorized use of water,
372	372	sanitary sewage, or stormwater under the jurisdiction of a county,
373	373	municipality, or water district or the district; or
374	374	(3) implement water conservation measures and
375	375	programs in the district.
376	376	(e) Rules adopted under Subsection (d):
377	377	(1) may not exceed the authority of the county,
378	378	municipality, or water district;
379	379	(2) must be consistent with and no more stringent than
380	380	state or federal requirements;
381	381	(3) must conform to the terms of the contract; and
382	382	(4) are not applicable within a municipality that is
383	383	not a party to the contract or does not consent to the rules
384	384	applying within the municipality.
385	385	(f) The district shall publish once a week for two
386	386	consecutive weeks in one or more newspapers with general
387	387	circulation in the district a notice of the substance of rules
388	388	adopted under Subsection (d) and of any penalties for a violation of
389	389	the rules.
390	390	(g) A person may not be charged with an offense under this
391	391	section before the fifth day after the date of the second
392	392	publication of the notice.
393	393	(h) A person who violates a rule or order adopted by the
394	394	board under this section commits an offense. An offense under this
395	395	section is a Class C misdemeanor.
396	396	Sec. 11021.0310. GENERAL CONTRACT AUTHORITY. (a) The
397	397	district may enter into contracts with the United States, an agency
398	398	of the United States, a municipality, or another public or private
399	399	person considered necessary in the exercise of the powers and
400	400	purposes of the district.
401	401	(b) The district may enter into contracts to acquire,
402	402	purchase, rent, lease, or operate the water production, water
403	403	supply, water filtration or purification, water supply facilities,
404	404	or other water or wastewater facilities that are owned or operated
405	405	by the contracting person.
406	406	(c) The district may acquire water appropriation permits
407	407	and other necessary permits directly from the appropriate agency of
408	408	the state or from owners of permits.
409	409	(d) Contracts that require a payment of money by the
410	410	district may be made payable from any general or specific source of
411	411	funds as determined by the board.
412	412	Sec. 11021.0311. CONTRACTS WITH MUNICIPALITIES. (a) A
413	413	municipality, public agency, political subdivision, or any
414	414	nonprofit water supply corporation doing business wholly or partly
415	415	in the district or a subdistrict may enter into any contract with
416	416	the district that is considered appropriate by its governing body.
417	417	(b) The governing body of an entity listed in Subsection (a)
418	418	may pledge to the payment of a contract any source of revenue that
419	419	may be available to the governing body, including the levy and
420	420	collection of ad valorem taxes, if that entity has the authority to
421	421	levy and collect those taxes.
422	422	(c) To the extent a governing body pledges to the payment of
423	423	the contract money to be derived from its own water system, its
424	424	wastewater system, or its combined system, the payments constitute
425	425	an operating expense of that system.
426	426	Sec. 11021.0312. REGULATORY POWER OF MUNICIPALITIES. This
427	427	chapter does not exempt the district or a subdistrict or land
428	428	located in the district from the terms and provisions of an
429	429	applicable ordinance, code, resolution, platting and zoning
430	430	requirement, rule, or regulation of a municipality.
431	431	Sec. 11021.0313. CREATION EXPENSES. The district is
432	432	authorized to pay all costs and expenses incurred in the creation
433	433	and organization of the district.
434	434	SUBCHAPTER D. FINANCIAL PROVISIONS
435	435	Sec. 11021.0401. RATES AND CHARGES. (a) The district may
436	436	establish rates and charges to be assessed against customers of the
437	437	district for each service rendered to those customers. The rates
438	438	and charges may be established by classes of customers, by project,
439	439	or by area of service.
440	440	(b) If revenue bonds or other obligations payable wholly
441	441	from revenue are issued, the board shall establish and revise rates
442	442	of compensation for water sold and for wastewater or other services
443	443	rendered by the district that will be sufficient to pay the expense
444	444	of operating and maintaining the facilities of the district, to pay
445	445	those bonds and obligations as they mature and the interest as it
446	446	accrues, and to maintain the reserve and other funds as provided by
447	447	the resolution or order authorizing those bonds or obligations.
448	448	Sec. 11021.0402. CHARGES, FEES, AND RENTALS. (a) The
449	449	district may adopt, enforce, and collect all necessary charges,
450	450	fees, or rentals for providing district facilities or services and
451	451	may require a deposit for any service or facilities furnished. The
452	452	district may provide that the deposit bear interest.
453	453	(b) The district may discontinue a facility or service to
454	454	prevent an abuse or enforce payment of an unpaid charge, fee, or
455	455	rental due the district.
456	456	(c) A municipality, a public agency, a political
457	457	subdivision, or any other entity that contracts with the district
458	458	may establish, charge, and collect fees, rates, charges, rentals,
459	459	and other amounts for any service or facility provided under or in
460	460	connection with a contract with the district, and to pledge
461	461	sufficient amounts to make all payments required under the
462	462	contract.
463	463	Sec. 11021.0403. DISTRICT AUDIT. The district shall have
464	464	the funds and accounts of the district audited by an independent
465	465	auditor. The district shall maintain a copy of any audit performed
466	466	under this section in the official records of the district.
467	467	Sec. 11021.0404. BONDS, NOTES, AND OTHER OBLIGATIONS. (a)
468	468	The district may issue its revenue bonds, notes, revenue
469	469	anticipation notes, bond anticipation notes, short-term
470	470	obligations, refunding bonds, or other obligations for any of its
471	471	purposes without an election and on those terms the board
472	472	determines to be appropriate.
473	473	(b) Obligations issued by the district may be made payable
474	474	from all or part of the revenues of the district derived from any
475	475	lawful source, including a contract with a customer or user of the
476	476	facilities owned or operated by the district under this chapter or
477	477	from the ownership and operation of any waterworks system,
478	478	wastewater system, sewer system, solid waste disposal system, or
479	479	nonhazardous liquid waste system, or any combination of those
480	480	systems. Additionally, those obligations may be paid from and
481	481	secured by liens on and pledges of all or part of any of the revenue,
482	482	income, or receipts derived by the district from its ownership,
483	483	operation, lease, or sale of the property, buildings, structures,
484	484	or facilities, including the proceeds or revenues from contracts
485	485	with a person, firm, corporation, municipality, public agency, or
486	486	other political subdivision or entity.
487	487	Sec. 11021.0405. BOND PROCEDURES. (a) The district's
488	488	bonds or other obligations may be issued to mature serially or
489	489	otherwise not later than 40 years from their date of issuance, and
490	490	provision may be made for the subsequent issuance of additional
491	491	parity obligations, or subordinate lien obligations, under terms or
492	492	conditions in the resolution authorizing the issuance of the
493	493	obligations.
494	494	(b) The obligations are negotiable instruments within the
495	495	meaning of Chapter 8, Business & Commerce Code.
496	496	(c) The district's bonds or other obligations shall be
497	497	executed and may be made redeemable before maturity, issued in the
498	498	form, denominations, and manner, and under the terms, conditions,
499	499	and details, and sold in the manner, at the price, and under the
500	500	terms provided by the bond resolution.
501	501	(d) The district's bonds and obligations shall bear
502	502	interest at rates provided in the resolution authorizing the
503	503	issuance of the bonds or other obligations.
504	504	(e) If provided in the authorizing resolution, the proceeds
505	505	from the sale of the bonds or other obligations may be used to pay
506	506	interest on those bonds or other obligations during the period of
507	507	the acquisition or construction of any facilities to be provided
508	508	through the issuance of the bonds or other obligations, to pay
509	509	expenses of operation and maintenance of facilities, to create a
510	510	reserve fund for the payment of the principal of and interest on the
511	511	bonds or other obligations, and to create any other funds.
512	512	(f) The proceeds from the sale of bonds or other obligations
513	513	may be placed on time deposit or invested to the extent and in the
514	514	manner provided by the authorizing resolution.
515	515	(g) The district may pledge all or any part of its revenue,
516	516	income, or receipts from fees, rentals, rates, charges, or contract
517	517	proceeds or payments to the payment of the district's bonds or other
518	518	obligations, including the payment of principal, interest, and any
519	519	other amounts required or permitted in connection with the bonds or
520	520	other obligations. The pledged fees, rentals, rates, charges,
521	521	proceeds, or payments shall be established and collected in amounts
522	522	that will be at least sufficient, together with any other pledged
523	523	resources, to provide for the payment of expenses in connection
524	524	with the bonds or other obligations, and for operation,
525	525	maintenance, and other expenses in connection with the facilities
526	526	for which the bonds or other obligations were issued.
527	527	(h) The district's bonds and other obligations may be
528	528	additionally secured by mortgages or deeds of trust on real
529	529	property owned or to be acquired by the district, and by chattel
530	530	mortgages or liens on any personal property appurtenant to that
531	531	real property. The board may authorize the execution of trust
532	532	indentures, mortgages, deeds of trust, or other forms of
533	533	encumbrances. Also, the district may pledge to the payment of the
534	534	obligations all or any part of any grant, donation, revenue, or
535	535	income received or to be received from the United States government
536	536	or any other public or private source.
537	537	(i) The district shall issue its bonds and other obligations
538	538	in accordance with Chapters 1201 and 1371, Government Code, as
539	539	applicable.
540	540	Sec. 11021.0406. DEPOSITORY. (a) The board, by order or
541	541	resolution, shall designate one or more banks inside or outside the
542	542	district to serve as depository for the district's money.
543	543	(b) Except as specifically provided by this chapter, the
544	544	district's money shall be deposited in the depository bank or
545	545	banks.
546	546	(c) The district's money may be invested as provided by law
547	547	for the investment of county funds and may be invested in accordance
548	548	with Chapter 2256, Government Code.
549	549	(d) The district's money shall be secured in the manner
550	550	provided by law for investment of public funds.
551	551	SUBCHAPTER E. SUBDISTRICTS
552	552	Sec. 11021.0501. CREATION OF SUBDISTRICTS. To provide for
553	553	the orderly development of water, wastewater, and other services of
554	554	the district in its boundaries and to prevent unnecessary
555	555	duplication of facilities, the district may create subdistricts.
556	556	Sec. 11021.0502. PETITION. (a) A petition requesting the
557	557	creation of a subdistrict in the district may be presented to the
558	558	board of the district.
559	559	(b) The petition must be signed by at least 25 persons who
560	560	own property in the boundaries of the proposed subdistrict, or the
561	561	petition may be submitted by the governing body of a municipality if
562	562	accompanied by a resolution of the governing body authorizing the
563	563	submission of the petition.
564	564	(c) A petition must specify:
565	565	(1) the boundaries of the proposed subdistrict as
566	566	required by the board;
567	567	(2) the general nature of the improvements to be
568	568	acquired, constructed, or otherwise implemented in the
569	569	subdistrict;
570	570	(3) the necessity and feasibility of those
571	571	improvements; and
572	572	(4) the proposed method for funding those
573	573	improvements.
574	574	(d) If a subdistrict is proposed in the corporate limits or
575	575	extraterritorial jurisdiction of a municipality, the petition
576	576	requesting the creation of the subdistrict must be accompanied by
577	577	an official action of the governing body of the municipality in
578	578	whose jurisdiction the subdistrict is proposed approving the
579	579	creation of the subdistrict. If the governing body of the
580	580	municipality in whose jurisdiction the subdistrict is proposed
581	581	objects to the creation of the subdistrict, the subdistrict may not
582	582	be created in the incorporated limits or the extraterritorial
583	583	jurisdiction of that municipality.
584	584	Sec. 11021.0503. NOTICE AND HEARING. (a) The board shall
585	585	set a date for a hearing on a petition not earlier than the 30th day
586	586	and not later than the 90th day after the date the petition is
587	587	presented to the district.
588	588	(b) Notice of the hearing shall be given to each
589	589	municipality in whose boundaries or extraterritorial jurisdiction
590	590	the proposed subdistrict is to be located.
591	591	(c) A copy of the notice of the hearing also shall be posted
592	592	in three public places located in the proposed subdistrict and at
593	593	the county courthouse not later than the 14th day before the date
594	594	set for the hearing.
595	595	(d) Notice of the hearing shall be published at least one
596	596	time in a newspaper of general circulation in the county not later
597	597	than the 10th day before the date of the hearing.
598	598	Sec. 11021.0504. APPEARANCE AT AND PROCEDURES FOR HEARING.
599	599	An interested person may appear at the hearing for the purpose of
600	600	supporting or opposing the creation of the subdistrict. The
601	601	hearing shall be conducted in accordance with the procedures
602	602	established by the board.
603	603	Sec. 11021.0505. BOARD ORDER. (a) After the public
604	604	hearing, the board shall enter an order in the official records of
605	605	the district making its findings.
606	606	(b) If the board considers the creation of a subdistrict to
607	607	be feasible and practical and finds that the creation of the
608	608	proposed subdistrict will be beneficial to the public, will benefit
609	609	the residents of and the land included in the proposed subdistrict,
610	610	and will contribute to the orderly growth and development of the
611	611	regional water and wastewater systems within the district, the
612	612	board shall enter an order granting the petition and ordering the
613	613	creation of the subdistrict under Section 11021.0506.
614	614	(c) The board shall include its findings in the order and
615	615	shall file the order in the official records of the district.
616	616	(d) The order shall define the boundaries of the
617	617	subdistrict, but the board is not required to include in the
618	618	subdistrict all of the land described in the petition if the board
619	619	in its judgment determines that a modification or change in the
620	620	subdistrict is necessary or beneficial to the public.
621	621	(e) If the board finds the subdistrict not to be feasible,
622	622	practical, or beneficial, the board shall enter an order dismissing
623	623	the petition and the proposed subdistrict may not be created. The
624	624	dismissal order does not affect the ability to petition for the
625	625	creation of a subdistrict covering the same territory at a later
626	626	time.
627	627	Sec. 11021.0506. CONFIRMATION ELECTION REQUIREMENT. If the
628	628	board orders the creation of a subdistrict, the subdistrict shall
629	629	be created and in existence from and after the date stated in the
630	630	order of the district, without the necessity of a confirmation
631	631	election in the boundaries of the subdistrict. The subdistrict
632	632	does not have the authority to levy or collect ad valorem taxes.
633	633	Sec. 11021.0507. STATUS OF SUBDISTRICTS. (a) A
634	634	subdistrict is a conservation and reclamation district under
635	635	Section 59, Article XVI, Texas Constitution, with the powers
636	636	granted in that section.
637	637	(b) Except as otherwise provided by this chapter, a
638	638	subdistrict has the powers specified in this chapter and the same
639	639	powers as the district, including the power of eminent domain, and
640	640	is subject to the same limitations.
641	641	(c) A subdistrict may not provide services outside its
642	642	boundaries, except that it may provide retail water and sewer
643	643	services in its customer service area as certificated by a state
644	644	regulatory agency.
645	645	Sec. 11021.0508. SUBDISTRICT GOVERNING BOARD. (a) A
646	646	subdistrict is governed by a board of supervisors consisting of at
647	647	least five members, as determined by the district's board at the
648	648	time the creation petition is granted.
649	649	(b) The initial board of supervisors shall be appointed by
650	650	the district from among the residents of the subdistrict.
651	651	(c) The district shall make the appointments for terms
652	652	specified in the order creating the subdistrict but not to exceed
653	653	four years.
654	654	(d) The initial supervisors are subject to removal, with or
655	655	without cause, by action of the district's board.
656	656	(e) Vacancies on the board of supervisors shall be filled by
657	657	the district's board for the unexpired term.
658	658	(f) Except for the initial supervisors and before the
659	659	issuance of bonds, notes, or other obligations of the subdistrict,
660	660	members of the board of supervisors shall be elected in the manner
661	661	provided by Chapter 49, Water Code. The election shall be held on
662	662	the first Saturday in May. At the initial election of supervisors,
663	663	the supervisors' positions shall be divided by the district's board
664	664	into two groups as nearly equal as possible for the purpose of
665	665	electing initial supervisors for two-year terms and four-year
666	666	terms. Successor supervisors serve four-year terms.
667	667	Sec. 11021.0509. GENERAL POWERS OF SUBDISTRICTS. (a) A
668	668	subdistrict may exercise the powers provided by this chapter and
669	669	shall own and manage the affairs, works, and projects of the
670	670	subdistrict subject to any contracts with the district.
671	671	(b) The issuance of bonds by the subdistrict is not
672	672	effective until the issuance is approved by official action of the
673	673	district's board.
674	674	Sec. 11021.0510. SUPERVISORS' COMPENSATION. The members of
675	675	the board of supervisors are not entitled to receive compensation
676	676	for serving as supervisors but may be reimbursed for actual
677	677	reasonable expenses necessarily incurred on behalf of the
678	678	subdistrict or in the discharge of their official duties.
679	679	Sec. 11021.0511. STATUS OF SUBDISTRICT. A subdistrict may
680	680	only become a participant of the district.
681	681	Sec. 11021.0512. CONVERSION OF WATER SUPPLY CORPORATION TO
682	682	A SUBDISTRICT. (a) On the adoption of a conversion resolution by
683	683	the board of directors of any nonprofit water supply corporation
684	684	doing business wholly or partly in the boundaries of the district,
685	685	the board may consider the question of converting the nonprofit
686	686	water supply corporation to a subdistrict by following the
687	687	procedures provided by this subchapter for creation of
688	688	subdistricts.
689	689	(b) The resolution required by Subsection (a) shall
690	690	include, in addition to the information required by Section
691	691	11021.0502, a plan of conversion, including the proposed method for
692	692	the transfer of assets and the assumption of debts to the
693	693	subdistrict.
694	694	Sec. 11021.0513. MEETINGS OF BOARD OF SUPERVISORS. The
695	695	board of supervisors of a subdistrict shall hold regular, special,
696	696	or emergency meetings at the times and on the dates the board
697	697	determines.
698	698	Sec. 11021.0514. SUBDISTRICT OFFICE; MEETING PLACE. The
699	699	board of supervisors of each subdistrict shall designate a meeting
700	700	place in the subdistrict as the regular office and meeting place,
701	701	but the regular meeting place may be at the regular meeting place of
702	702	the district if approved by order of the district.
703	703	Sec. 11021.0515. TAX EXEMPTION. (a) All property owned,
704	704	operated, leased, or controlled by the district or a subdistrict is
705	705	exempt from taxation.
706	706	(b) District or subdistrict bonds, transactions relating to
707	707	the bonds, and profits made in the sale of the bonds are exempt from
708	708	state taxation or taxation by a municipality, county, special
709	709	district, or other political subdivision of the state.
710	710	SECTION 2. (a) The legal notice of the intention to
711	711	introduce this Act, setting forth the general substance of this
712	712	Act, has been published as provided by law, and the notice and a
713	713	copy of this Act have been furnished to all persons, agencies,
714	714	officials, or entities to which they are required to be furnished
715	715	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
716	716	Government Code.
717	717	(b) The governor, one of the required recipients, has
718	718	submitted the notice and Act to the Texas Commission on
719	719	Environmental Quality.
720	720	(c) The Texas Commission on Environmental Quality has filed
721	721	its recommendations relating to this Act with the governor, the
722	722	lieutenant governor, and the speaker of the house of
723	723	representatives within the required time.
724	724	(d) All requirements of the constitution and laws of this
725	725	state and the rules and procedures of the legislature with respect
726	726	to the notice, introduction, and passage of this Act are fulfilled
727	727	and accomplished.
728	728	SECTION 3. Each entity that enters into a contract with the
729	729	Wise Regional Water District before the second anniversary of the
730	730	effective date of this Act and qualifies to be a participant or
731	731	contract member shall appoint one member to the board of directors
732	732	of the Wise Regional Water District before the second anniversary
733	733	of the effective date of this Act.
734	734	SECTION 4. (a) Sections 11021.0303 and 11021.0507(b),
735	735	Special District Local Laws Code, as added by Section 1 of this Act,
736	736	take effect only if this Act receives a two-thirds vote of all the
737	737	members elected to each house.
738	738	(b) If this Act does not receive a two-thirds vote of all the
739	739	members elected to each house, Subchapter C, Chapter 11021, Special
740	740	District Local Laws Code, as added by Section 1 of this Act, is
741	741	amended by adding Section 11021.0303 to read as follows:
742	742	Sec. 11021.0303. ACQUISITION OF PROPERTY; NO POWER OF
743	743	EMINENT DOMAIN. (a) The district may acquire by purchase any land,
744	744	easements, rights-of-way, or other property or improvements inside
745	745	or outside the boundaries of the district, including land above the
746	746	probable high water line around any reservoirs in which the
747	747	district has an ownership or operational interest, that are needed
748	748	or are appropriate to carry out the powers and functions of the
749	749	district.
750	750	(b) The district may not exercise the power of eminent
751	751	domain.
752	752	(c) If this Act does not receive a two-thirds vote of all the
753	753	members elected to each house, Section 11021.0507, Special District
754	754	Local Laws Code, as added by Section 1 of this Act, is amended by
755	755	adding Subsection (b) to read as follows:
756	756	(b) Except as otherwise provided by this chapter, a
757	757	subdistrict has the powers specified in this chapter and the same
758	758	powers as the district and is subject to the same limitations. The
759	759	subdistrict may not exercise the power of eminent domain.
760	760	(d) This section is not intended to be an expression of a
761	761	legislative interpretation of the requirements of Section 17(c),
762	762	Article I, Texas Constitution.
763	763	SECTION 5. This Act takes effect immediately if it receives
764	764	a vote of two-thirds of all the members elected to each house, as
765	765	provided by Section 39, Article III, Texas Constitution. If this
766	766	Act does not receive the vote necessary for immediate effect, this
767	767	Act takes effect September 1, 2025.