88R24686 LRM-F
	By: Kuempel	H.B. No. 5303
	Substitute the following for H.B. No. 5303:
	By:  King of Uvalde	C.S.H.B. No. 5303

	A BILL TO BE ENTITLED
	AN ACT
	relating to the creation of the Springs Hill Special Utility
	District; authorizing a fee; granting the power of eminent domain.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle C, Title 6, Special District Local Laws
	Code, is amended by adding Chapter 7208 to read as follows:
	CHAPTER 7208.  SPRINGS HILL SPECIAL UTILITY DISTRICT
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 7208.0101.  DEFINITIONS. In this chapter:
	(1)  "Board" means the district's board of directors.
	(2)  "Corporation" means the Springs Hill Water Supply
	Corporation.
	(3)  "Director" means a board member.
	(4)  "District" means the Springs Hill Special Utility
	District.
	Sec. 7208.0102.  NATURE OF DISTRICT. The district is a
	special utility district in Guadalupe and Wilson Counties created
	under and essential to accomplish the purposes of Section 59,
	Article XVI, Texas Constitution. The district is created to serve a
	public use and benefit.
	Sec. 7208.0103.  CONFIRMATION ELECTION REQUIRED. If the
	creation of the district is not confirmed at a confirmation and
	initial directors' election held before September 1, 2026:
	(1)  the district is dissolved on September 1, 2026,
	except that the district shall:
	(A)  pay any debts incurred;
	(B)  transfer to Guadalupe or Wilson County, as
	appropriate, any assets of the district that remain after the
	payment of debts; and
	(C)  maintain the organization of the district
	until all debts are paid and remaining assets are transferred; and
	(2)  this chapter expires September 1, 2027.
	Sec. 7208.0104.  APPLICABILITY OF OTHER LAW. Except as
	otherwise provided by this chapter, Chapters 49 and 65, Water Code,
	apply to the district.
	Sec. 7208.0105.  INITIAL DISTRICT TERRITORY. The district's
	boundaries are coextensive with the boundaries of the territory
	that is described by Certificate of Convenience and Necessity
	No. 10666 as it existed on the effective date of the Act enacting
	this section.
	SUBCHAPTER A-1. TEMPORARY PROVISIONS
	Sec. 7208.0151.  TEMPORARY DIRECTORS. (a) The temporary
	board of directors of the district is composed of:
	(1)  James Martin;
	(2)  Irene Moreno-Ybarra;
	(3)  Bernard Mueller;
	(4)  Deborah Magin;
	(5)  Keith Steffen; and
	(6)  Michael Andrews.
	(b)  Each temporary director shall qualify for office as
	provided by Section 49.055, Water Code.
	(c)  If a temporary director fails to qualify for office, the
	temporary directors who have qualified shall appoint a person to
	fill the vacancy. If at any time there are fewer than four
	qualified temporary directors, the Texas Commission on
	Environmental Quality shall appoint the necessary number of
	directors to fill all vacancies on the board.
	(d)  Temporary directors serve until the earlier of:
	(1)  the date initial directors are elected under
	Section 7208.0152; or
	(2)  the date this chapter expires under Section
	7208.0103.
	Sec. 7208.0152.  CONFIRMATION AND INITIAL DIRECTORS'
	ELECTION.  (a) Before September 1, 2026, the temporary directors
	shall hold an election to confirm the creation of the district and
	to elect six initial directors in accordance with Chapters 49 and
	65, Water Code.
	(b)  The temporary board of directors shall determine the
	method for determining the initial term of each person on the
	initial board of directors. The terms must be clearly stated on the
	ballot for the confirmation and directors' election.
	(c)  Section 41.001(a), Election Code, does not apply to a
	confirmation and directors' election held as provided by this
	section.
	(d)  The initial directors shall continue to serve until the
	district directors elected at the first regularly scheduled
	election of directors qualify for office.
	Sec. 7208.0153.  TRANSFER OF ASSETS; DISSOLUTION. (a) If the
	creation of the district is confirmed under Section 7208.0152, the
	corporation shall transfer the assets, debts, and contractual
	rights and obligations of the corporation to the district.
	(b)  Following the transfer under Subsection (a):
	(1)  the board of directors of the corporation shall
	commence dissolution proceedings of the corporation;
	(2)  Certificate of Convenience and Necessity No. 10666
	is considered to be held by the district; and
	(3)  the board of directors of the corporation shall
	notify:
	(A)  the Texas Commission on Environmental
	Quality of the dissolution of the corporation; and
	(B)  the Public Utility Commission of Texas of the
	transfer of Certificate of Convenience and Necessity No. 10666 to
	the district.
	(c)  On receipt of notice under Subsection (b)(3)(B), the
	Public Utility Commission of Texas shall note in its records that
	Certificate of Convenience and Necessity No. 10666 is held by the
	district and shall reissue the certificate in the name of the
	district without further application, notice, or hearing. A
	person, party, or entity does not have any right of protest,
	objection, or administrative review of the transfer prescribed by
	this section.
	Sec. 7208.0154.  EXPIRATION OF SUBCHAPTER. This subchapter
	expires September 1, 2027.
	SUBCHAPTER B. BOARD OF DIRECTORS
	Sec. 7208.0201.  DIRECTORS. The district shall be governed
	by a board of not fewer than 5 and not more than 11 directors,
	elected in accordance with Section 65.103, Water Code.
	SUBCHAPTER C. POWERS AND DUTIES
	Sec. 7208.0301.  GENERAL POWERS. Except as otherwise
	provided by this chapter, the district has all of the rights,
	powers, privileges, authority, functions, and duties provided by
	the general law of this state, including Chapters 49 and 65, Water
	Code, applicable to special utility districts created under Section
	59, Article XVI, Texas Constitution.
	Sec. 7208.0302.  WATER SERVICE IMPACT FEE. (a) The district
	may charge an initial water service impact fee that is not greater
	than the impact fee charged by the corporation on September 1, 2023,
	under the corporation's tariff.
	(b)  Chapter 395, Local Government Code, does not apply to an
	initial water service impact fee set under Subsection (a).
	(c)  The district may amend the water service impact fee
	authorized under Subsection (a) only as provided by Chapter 395,
	Local Government Code, as approved by the Texas Commission on
	Environmental Quality, or as otherwise provided by law.
	SECTION 2.  (a) The legal notice of the intention to
	introduce this Act, setting forth the general substance of this
	Act, has been published as provided by law, and the notice and a
	copy of this Act have been furnished to all persons, agencies,
	officials, or entities to which they are required to be furnished
	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
	Government Code.
	(b)  The governor, one of the required recipients, has
	submitted the notice and Act to the Texas Commission on
	Environmental Quality.
	(c)  The Texas Commission on Environmental Quality has filed
	its recommendations relating to this Act with the governor, the
	lieutenant governor, and the speaker of the house of
	representatives within the required time.
	(d)  All requirements of the constitution and laws of this
	state and the rules and procedures of the legislature with respect
	to the notice, introduction, and passage of this Act are fulfilled
	and accomplished.
	SECTION 3.  (a)  If this Act does not receive a two-thirds
	vote of all the members elected to each house, Subchapter C, Chapter
	7208, Special District Local Laws Code, as added by Section 1 of
	this Act, is amended by adding Section 7208.0303 to read as follows:
	Sec. 7208.0303.  NO EMINENT DOMAIN POWER. The district may
	not exercise the power of eminent domain.
	(b)  This section is not intended to be an expression of a
	legislative interpretation of the requirements of Section 17(c),
	Article I, Texas Constitution.
	SECTION 4.  This Act takes effect September 1, 2023.