Bill Text: TX HB5406 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to the creation of the Cross Timbers Regional Utility Authority; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments and fees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2023-05-15 - Received from the House [HB5406 Detail]
Download: Texas-2023-HB5406-Engrossed.html
88R26417 SCP-D | ||
By: Rogers | H.B. No. 5406 |
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relating to the creation of the Cross Timbers Regional Utility | ||
Authority; granting a limited power of eminent domain; providing | ||
authority to issue bonds; providing authority to impose assessments | ||
and fees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle F, Title 6, Special District Local Laws | ||
Code, is amended by adding Chapter 7966A to read as follows: | ||
CHAPTER 7966A. CROSS TIMBERS REGIONAL UTILITY AUTHORITY | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 7966A.0101. DEFINITIONS. In this chapter: | ||
(1) "Authority" means the Cross Timbers Regional | ||
Utility Authority. | ||
(2) "Board" means the board of directors of the | ||
authority. | ||
(3) "Director" means a member of the board. | ||
Sec. 7966A.0102. NATURE OF AUTHORITY. (a) The authority is | ||
a conservation and reclamation district created under Section 59, | ||
Article XVI, Texas Constitution. | ||
(b) The authority is a political subdivision of this state. | ||
Sec. 7966A.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. | ||
(a) The authority is created to serve a public use and benefit. | ||
(b) All land and other property included in the boundaries | ||
of the authority will benefit from the works and projects | ||
accomplished by the authority under the powers conferred by Section | ||
59, Article XVI, Texas Constitution. | ||
(c) The creation of the authority is essential to accomplish | ||
the purposes of Section 59, Article XVI, Texas Constitution. | ||
SUBCHAPTER B. AUTHORITY TERRITORY | ||
Sec. 7966A.0201. AUTHORITY TERRITORY. The authority is | ||
composed of all of the territory contained in Palo Pinto County, | ||
Parker County, and Stephens County, as that territory may have been | ||
modified under: | ||
(1) Subchapter H, Chapter 54, Water Code; | ||
(2) Subchapter J, Chapter 49, Water Code; or | ||
(3) other law. | ||
SUBCHAPTER C. BOARD OF DIRECTORS | ||
Sec. 7966A.0301. COMPOSITION OF BOARD; TERMS. (a) The | ||
authority is governed by a board of seven directors. | ||
(b) Directors are appointed as follows: | ||
(1) one director appointed by the Commissioners Court | ||
of Palo Pinto County; | ||
(2) three directors appointed by the Commissioners | ||
Court of Parker County; | ||
(3) one director appointed by the Commissioners Court | ||
of Stephens County; and | ||
(4) two directors appointed by the city council of the | ||
City of Mineral Wells. | ||
(c) Directors serve staggered four-year terms. Directors | ||
may not serve more than two terms. | ||
(d) When a director's term expires, the appointing entity | ||
shall appoint a successor. | ||
(e) The board shall select a presiding officer from among | ||
the directors who have served on the board for at least two years to | ||
serve in that position for the remainder of the director's term. | ||
Sec. 7966A.0302. QUALIFICATIONS FOR OFFICE. (a) Each | ||
director must be a qualified voter of the county or municipality | ||
that appoints the director. | ||
(b) An officer, employee, or member of an appointing entity | ||
or of a political subdivision located in the authority may not be a | ||
director. | ||
Sec. 7966A.0303. BOARD VACANCY. A vacancy in the office of | ||
director shall be filled for the unexpired term, if applicable, by | ||
the appointing entity that appointed the previous director. | ||
Sec. 7966A.0304. REMOVAL FROM OFFICE. (a) Under | ||
procedures adopted by board rule, the board may remove a director | ||
from office only for malfeasance in office. | ||
(b) The procedures must be designed to guarantee due process | ||
to the director. | ||
Sec. 7966A.0305. VOTING REQUIREMENT. A majority vote of | ||
the board is required to adopt any measure. | ||
SUBCHAPTER D. POWERS AND DUTIES | ||
Sec. 7966A.0401. MUNICIPAL UTILITY DISTRICT POWERS. Except | ||
as otherwise provided by this chapter, the authority has the | ||
rights, powers, privileges, and functions conferred and imposed by | ||
the general law applicable to a municipal utility district created | ||
under Section 59, Article XVI, Texas Constitution, including those | ||
conferred by Chapters 30, 49, and 54, Water Code. | ||
Sec. 7966A.0402. ACQUISITION AND USE OF PROPERTY. The | ||
authority may operate, control, purchase, construct, lease, or | ||
acquire, inside or outside the boundaries of the authority, | ||
property, works, facilities, or improvements, whether previously | ||
existing or to be made, constructed, or acquired, that the board | ||
finds necessary to carry out the powers granted by this chapter or | ||
general law. | ||
Sec. 7966A.0403. WATER RIGHTS. The authority may acquire, | ||
develop, and use rights to groundwater or surface water. | ||
Sec. 7966A.0404. EMINENT DOMAIN. (a) Except as provided by | ||
Subsection (b), to carry out an authority power or purpose, the | ||
authority, in the manner provided by Chapter 49, Water Code, may | ||
exercise the power of eminent domain to acquire land, an easement, | ||
or other property inside or outside the authority's boundaries. | ||
(b) The authority may not exercise the power of eminent | ||
domain to acquire land owned by a municipal water district that the | ||
district has acquired as a surface water reservoir site. | ||
Sec. 7966A.0405. GENERAL CONTRACT POWERS. (a) The | ||
authority may enter into a contract with a person, including a | ||
political subdivision, on terms the board considers desirable, | ||
fair, and advantageous for: | ||
(1) the purchase or sale of raw or treated water; | ||
(2) the purchase, lease, use, management, control, or | ||
operation of water treatment or distribution facilities or sewer | ||
collection and treatment facilities, all or part of the facilities | ||
or systems owned by the other political subdivision, in accordance | ||
with terms mutually agreed on by the governing bodies of the | ||
contracting parties; or | ||
(3) planning, making preliminary surveys, | ||
investigations, or feasibility reports, engineering, or reports of | ||
any kind. | ||
(b) A contract for the acquisition of an existing water or | ||
sewer facility may be made on terms approved by the contracting | ||
parties. | ||
(c) If changes in plans or specifications are necessary | ||
after performance of a construction contract begins, the board may | ||
approve change orders necessary to decrease or increase the amount | ||
of materials, equipment, or supplies to be provided under the | ||
contract or the amount of work to be performed. The total cost of | ||
the change orders may not increase the original contract price by | ||
more than 25 percent. | ||
Sec. 7966A.0406. WATER, SEWER, SOLID WASTE, OR DRAINAGE | ||
CONTRACTS; ELECTION NOT REQUIRED. The authority and a municipal | ||
corporation or other political subdivision may enter into a water, | ||
sewer, solid waste, or drainage contract or any combination of | ||
those contracts without the necessity of an election by any | ||
contracting party to approve the contract. | ||
Sec. 7966A.0407. TREATMENT OF PAYMENTS UNDER CERTAIN | ||
MUNICIPAL CORPORATION CONTRACTS. A payment by a municipal | ||
corporation for the purchase of water or the treatment and disposal | ||
of sewage is a maintenance and operating expense of the utility | ||
system or combined systems of the municipal corporation unless the | ||
contract: | ||
(1) provides for the municipal corporation to acquire | ||
an ownership interest in the facilities; or | ||
(2) makes other provisions. | ||
Sec. 7966A.0408. TAX PROHIBITION. The authority may not | ||
impose a tax. | ||
SUBCHAPTER E. BONDS | ||
Sec. 7966A.0501. REVENUE BONDS. The authority may issue | ||
revenue bonds to carry out any of its powers, functions, or | ||
obligations. | ||
Sec. 7966A.0502. BONDS FOR CERTAIN FACILITIES. If the | ||
authority operates a facility under contract with a municipal | ||
corporation, it may, if the contract permits the issuance, issue | ||
bonds to improve or extend the facility. | ||
SECTION 2. (a) Not later than the 45th day after the | ||
effective date of this Act, the city council of the City of Mineral | ||
Wells and the commissioners courts of Palo Pinto County, Parker | ||
County, and Stephens County each shall appoint the appropriate | ||
number of directors to the board of directors of the Cross Timbers | ||
Regional Utility Authority as required under Section 7966A.0301, | ||
Special District Local Laws Code, as added by this Act. | ||
(b) Notwithstanding Section 7966A.0301(e), Special | ||
District Local Laws Code, as added by this Act, at the first meeting | ||
of the board of directors of the Cross Timbers Regional Utility | ||
Authority after the effective date of this Act, the board shall | ||
select a presiding officer from among the directors appointed under | ||
Subsection (a) of this section to serve as presiding officer for the | ||
remainder of the director's term. | ||
(c) The presiding officer selected under Subsection (b) of | ||
this section will serve an initial term that expires January 1, | ||
2027. The six other directors appointed under Subsection (a) of | ||
this section shall draw lots to determine which three directors | ||
will serve initial terms that expire on January 1, 2025, and which | ||
three directors will serve initial terms that expire January 1, | ||
2027. | ||
SECTION 3. (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 4. (a) Section 7966A.0404, Special District Local | ||
Laws Code, as added by Section 1 of this Act, takes effect only if | ||
this Act receives a two-thirds vote of all the members elected to | ||
each house. | ||
(b) If this Act does not receive a two-thirds vote of all the | ||
members elected to each house, Subchapter D, Chapter 7966A, Special | ||
District Local Laws Code, as added by Section 1 of this Act, is | ||
amended by adding Section 7966A.0404 to read as follows: | ||
Sec. 7966A.0404. NO EMINENT DOMAIN POWER. The authority | ||
may not exercise the power of eminent domain. | ||
SECTION 5. This Act takes effect September 1, 2023. |