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H.B. No. 3181
AN ACT
relating to the creation of the Central Harris County Regional
Water Authority; providing authority to issue bonds or notes;
granting the power of eminent domain; providing an administrative
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle H, Title 6, Special District Local Laws
Code, is amended by adding Chapter 8815 to read as follows:
CHAPTER 8815. CENTRAL HARRIS COUNTY REGIONAL WATER AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8815.001. DEFINITIONS. In this chapter:
(1) "Authority" means the Central Harris County
Regional Water Authority.
(2) "Board" means the board of directors of the
authority.
(3) "Commission" means the Texas Commission on
Environmental Quality or its successor.
(4) "Director" means a member of the board.
(5) "District" means any district created under
Sections 52(b)(1) and (2), Article III, or Section 59, Article XVI,
Texas Constitution, regardless of the manner of creation, other
than:
(A) a navigation district or port authority; or
(B) a district governed by Chapter 36, Water
Code.
(6) "Groundwater reduction plan" means a plan adopted
or implemented to supply water, reduce reliance on groundwater,
regulate groundwater pumping and usage, or require and allocate
water usage among persons in order to comply with or exceed
requirements imposed by the subsidence district, including any
applicable groundwater reduction requirements.
(7) "Local government" means a municipality, county,
district, or other political subdivision of this state or a
combination of two or more of those entities.
(8) "Member district" means each of the following
conservation and reclamation districts created under Section 59,
Article XVI, Texas Constitution:
(A) Harris County Municipal Utility District No.
33;
(B) Harris County Municipal Utility District No.
150;
(C) Harris County Municipal Utility District No.
200;
(D) Harris County Municipal Utility District No.
205;
(E) Harris County Municipal Utility District No.
215;
(F) Harris County Municipal Utility District No.
217;
(G) Harris County Municipal Utility District No.
304;
(H) Harris County Municipal Utility District No.
399;
(I) Harris County Utility District No. 16;
(J) Fallbrook Utility District; and
(K) Rankin Road West Municipal Utility District.
(9) "Subsidence" means the lowering in elevation of
the surface of land by the withdrawal of groundwater.
(10) "Subsidence district" means the Harris-Galveston
Coastal Subsidence District.
(11) "System" means a network of pipelines, conduits,
valves, canals, pumping stations, force mains, treatment plants,
and any other construction, device, or related appurtenance used to
treat or transport water.
(12) "Water" includes:
(A) groundwater, percolating or otherwise;
(B) any surface water, natural or artificial,
navigable or nonnavigable; and
(C) industrial and municipal wastewater.
(13) "Well" includes a facility or device owned or
partially owned by a member district and used to withdraw
groundwater from a groundwater source inside or outside the
boundaries of the authority for the purpose of supplying water to
territory in the authority.
Sec. 8815.002. NATURE OF AUTHORITY. The authority is a
regional water authority in Harris County created under and
essential to accomplish the purposes of Section 59, Article XVI,
Texas Constitution.
Sec. 8815.003. CONFIRMATION ELECTION NOT REQUIRED. An
election to confirm the creation of the authority is not required.
Sec. 8815.004. AUTHORITY TERRITORY. (a) The initial
territory of the authority consists of the combined territories of
each of the member districts as of the effective date of the law
creating this chapter, regardless of whether the territory contains
noncontiguous parcels of land or whether the territory is located
within the boundaries of any other governmental entity or political
subdivision of this state.
(b) The authority may annex additional territory under
Section 8815.006.
(c) Territory may be excluded from the authority under
Section 8815.005.
Sec. 8815.005. EXCLUSION OF CERTAIN TERRITORY. (a) On the
mutual agreement of the board and the governing body of a member
district, all of the land within that member district may be
excluded from the authority.
(b) If a member district is excluded from the authority's
boundaries under this section, the authority:
(1) is not required to provide water or any other
service to the district; and
(2) is not required to include the district in any
groundwater reduction plan adopted or implemented by the authority
and may remove the district from any groundwater reduction plan
adopted by the authority that includes the district.
(c) If a member district excluded from the authority's
boundaries under this section petitions the authority to be annexed
under Section 8815.006, the authority may annex the district. The
authority may require, as a condition of annexation, terms and
conditions the board considers appropriate. The authority may
require the district to pay the authority the fees, user fees,
charges, and special assessments, with interest, that, as
determined by the authority, the district would have been charged
by the authority if the district had not been excluded from the
authority under this section.
Sec. 8815.006. ANNEXATION. (a) Except to the extent the
authority agrees in writing, a municipality's annexation of
territory within the authority does not affect:
(1) the authority's powers inside or outside the
annexed territory;
(2) the authority's boundaries or contracts; or
(3) the authority's ability to assess fees, user fees,
rates, charges, or special assessments inside or outside the
territory annexed by the municipality.
(b) Territory within the authority annexed by a
municipality may be excluded from the authority under a written
agreement between the authority and the municipality.
(c) Territory may be annexed to the authority, regardless of
whether the territory is contiguous to the authority, as provided
by Chapter 49, Water Code.
(d) In addition to the authority granted by Subsection (c),
regardless of whether the territory is contiguous to the authority,
the authority may annex all of the territory located within a
district if the district files with the authority a petition
requesting the annexation signed by a majority of the members of the
governing body of the district. The petition must include an
accurate legal description of the boundaries of the district. If
the authority has bonds, notes, or other obligations outstanding,
the authority shall require the petitioning district to be
obligated to pay its share of the principal of and interest on the
outstanding bonds, notes, or other obligations, and related costs.
The authority may also require the petitioning district to pay a
portion of the expenses incurred by the member districts in
connection with the organization, creation, and administration of
the authority. The board may grant the petition and order the
district annexed to the authority if:
(1) it is feasible, practicable, and to the advantage
of the authority; and
(2) the authority's system and other improvements are
sufficient or will be sufficient to supply surface water and
groundwater to the added territory, if required under any
groundwater reduction plan adopted and implemented by the
authority, without harming the territory already included in the
authority.
(e) Any territory that a member district annexes after the
effective date of the Act creating this chapter becomes territory
of the authority only on the adoption of an order or resolution by
the board consenting to the inclusion of the additional territory
within the authority. The authority by rule may require all member
districts to send to the authority written notice of the effective
date of an annexation and require the member districts to send to
the authority copies of any necessary documents describing the
annexed land and describing the member districts' boundaries and
actual and projected water usage requirements as they exist after
inclusion of the annexed land.
(f) The annexation to the authority of territory under this
section does not affect the validity of the authority's bonds
issued before or after the annexation.
(g) A municipality that annexes territory of the authority
for limited purposes under Subchapter F, Chapter 43, Local
Government Code, does not have the right to:
(1) receive notices from the authority under Section
8815.103(c);
(2) participate in the appointment of directors under
Subchapter B; or
(3) receive information about or have the opportunity
to fund its share of capital costs in the manner provided by the
authority under Section 8815.104.
Sec. 8815.007. APPLICABILITY OF OTHER LAW. (a) Except as
otherwise provided by this chapter, Chapter 49, Water Code, applies
to the authority.
(b) This chapter does not prevail over or preempt a
provision of Chapter 36, Water Code, or Chapter 8801 of this code
that is being implemented by the subsidence district.
[Sections 8815.008-8815.020 reserved for expansion]
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 8815.021. INITIAL DIRECTORS. (a) The initial board
consists of:
Name of Director: Representing Director Precinct:
Margaret Cox 1
Judge Caston 2
Barbara Hays 3
Julian Boddy At large
James A. Johnson At large
(b) At the first meeting of the initial board, or as soon as
practicable after that meeting, the directors shall draw lots to
determine:
(1) their terms so that:
(A) three directors, including one at-large
position, serve until the first appointment of directors under
Section 8815.055 in 2006; and
(B) two directors, including one at-large
position, serve until the second appointment of directors under
Section 8815.055 in 2008; and
(2) which two director precincts appoint a director in
the first even-numbered year in which directors are appointed under
Section 8815.055.
Sec. 8815.022. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2010.
[Sections 8815.023-8815.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8815.051. DIRECTORS; TERMS. (a) The authority is
governed by a board of five directors.
(b) The directors serve staggered four-year terms that
expire May 15 of even-numbered years.
(c) Each director must qualify to serve as director in the
manner provided by Section 49.055, Water Code.
Sec. 8815.052. ELIGIBILITY TO SERVE AS DIRECTOR. (a) To be
eligible to serve as a director or to be listed on a ballot as a
candidate for director, an individual must:
(1) be at least 18 years of age;
(2) be a resident of this state;
(3) own land in or be a qualified voter in the
authority; and
(4) have served as a director of one or more districts
for a total of at least two years.
(b) To be eligible to serve as a director representing a
director precinct or to be listed on a ballot as a candidate for
director representing a director precinct under Section 8815.055,
in addition to satisfying the requirements under Subsection (a), an
individual must own land or be a qualified voter within the director
precinct.
(c) A director serves until the director's successor has
qualified.
Sec. 8815.053. DISQUALIFICATION OF DIRECTORS. The common
law doctrine of incompatibility does not disqualify an official or
employee of a public entity from serving as a director.
Notwithstanding any other law, a director may participate in all
votes and decisions pertaining to the business of the authority
except that a director who is also an officer or employee of a
public entity may not participate in the discussion of or vote on a
matter regarding a contract with that public entity.
Sec. 8815.054. SINGLE-MEMBER DIRECTOR PRECINCTS. (a) The
authority is divided into three single-member director precincts as
follows:
(1) Director Precinct No. 1 includes the territory
that is contained in the following member districts: Harris County
Municipal Utility District No. 33, Fallbrook Utility District,
Rankin Road West Municipal Utility District, and Harris County
Municipal Utility District No. 215.
(2) Director Precinct No. 2 includes the territory
that is contained in the following member districts: Harris County
Municipal Utility District No. 150, Harris County Municipal Utility
District No. 217, and Harris County Municipal Utility District No.
304.
(3) Director Precinct No. 3 includes the territory
that is contained in the following member districts: Harris County
Municipal Utility District No. 200, Harris County Municipal Utility
District No. 205, Harris County Municipal Utility District No. 399,
and Harris County Utility District No. 16.
(b) The board may redraw the single-member director
precincts in a manner that is reasonable and equitable:
(1) after any change in the boundaries of the
authority; or
(2) by a resolution redrawing the director precincts
adopted by a majority of the board based on changed circumstances.
Sec. 8815.055. METHOD OF APPOINTMENT OF DIRECTORS. (a) One
director is appointed from each of the three director precincts and
two directors are appointed at large. Two directors from director
precincts and one director at large shall be appointed in the first
even-numbered year after the authority is created, and one director
from a director precinct and one director at large shall be
appointed in the next even-numbered year after the authority is
created. Each subsequent even-numbered year, the appropriate
number of directors shall be appointed.
(b) In the appropriate even-numbered year, the governing
bodies of the member districts located within a director precinct
jointly shall appoint one director to represent the precinct by a
vote conducted as provided by this section. Each even-numbered
year, the governing bodies of each member district shall appoint
one director for an at-large position by a vote conducted as
provided by this section.
(c) If a member district is located within two or more
director precincts, the member district is considered, for purposes
of this subchapter, to be located only within the director precinct
in which the greatest amount of territory of the member district is
located.
(d) For the appointment of a director for a director
precinct, the board shall determine the number of votes each member
district may cast. The number of votes for a governing body of a
member district within the precinct is equal to the number computed
by dividing the total number of units of water, as determined by the
board, used within the member district during the calendar year
preceding the year in which the director is selected by the total
number of units of water used by all member districts in the
precinct, multiplying that quotient by 100, and rounding that
result to the nearest one-tenth. The board shall provide the
presiding officer of each governing body of a member district
within each director precinct written notice of the number of votes
computed for that governing body to cast.
(e) For the appointment of a director for an at-large
position, the board shall determine the number of votes each member
district may cast. The number of votes for a governing body of a
member district is equal to the number computed by dividing the
total number of units of water, as determined by the board, used
within the member district during the calendar year preceding the
year in which the director is selected by the total number of units
of water used by all member districts in the authority, multiplying
that quotient by 100, and rounding that result to the nearest
one-tenth. The board shall provide the presiding officer of each
governing body of a member district written notice of the number of
votes computed for that governing body to cast.
(f) For purposes of Subsections (d) and (e), the board shall
determine the amount of water usage of all member districts within
each director precinct.
(g) In the appropriate even-numbered year, the governing
body of each member district in a director precinct by resolution
may nominate one candidate for the position of director for that
director precinct. Each member district shall submit the name of
its candidate, if any, to the presiding officer of the authority by
February 15 of that year. If by February 15 of that year only one
candidate's name is submitted for the position of director for a
director precinct, the board may declare the unopposed candidate
elected and may cancel the director appointment procedures
generally required by this section for that position. If more than
one candidate's name is submitted for the position of director for a
director precinct, before March 15 of that year, the board shall
prepare, for the director precinct or precincts from which a
director is being appointed, a ballot listing all of the candidates
for that director precinct and shall provide a copy of the
appropriate ballot to the presiding officer of the governing body
of each member district located within the director precinct or
precincts from which a director is being appointed.
(h) The governing body of each member district in the
authority by resolution may nominate one candidate for the at-large
director position. Each member district shall submit the name of
its candidate, if any, to the presiding officer of the authority by
February 15 of each even-numbered year. If by February 15 of that
year only one candidate's name is submitted for the at-large
director position, the board may declare the unopposed candidate
elected and may cancel the director appointment procedures
generally required by this section for that position. If more than
one candidate's name is submitted for the at-large director
position, before March 15 of that year, the board shall prepare a
ballot listing all of the candidates for the at-large director
position and shall provide a copy of the ballot to the presiding
officer of the governing body of each member district.
(i) An individual may not be listed as a candidate on the
ballot for more than one director position. If a candidate is
nominated for more than one director position, the candidate must
choose to be on the ballot for only one director position.
(j) The governing body of each member district shall
determine its votes for director by resolution and submit them to
the presiding officer of the authority before May 1 of each
even-numbered year. In casting its votes for director, the
governing body of each member district may vote for only one
candidate on the ballot for the director precinct in which the
member district is located and for one candidate on the at-large
position ballot. For each director precinct from which a director
is being appointed, the board shall count the votes, declare
elected the candidate who received the greatest number of votes
from member districts located within that director precinct, and
submit the results before May 15 of that year to the governing body
of each member district within that director precinct. For the
at-large position, the board shall count the votes, declare elected
the candidate who received the greatest number of votes, and submit
the results before May 15 of that year to the governing body of each
member district.
(k) The board may adopt rules regarding:
(1) the manner and timing of determinations and
computations required by this section;
(2) the reporting of water usage to the authority by
member districts; and
(3) the conduct and process of the appointment of
directors.
Sec. 8815.056. VACANCY IN OFFICE OF DIRECTOR. A vacancy in
the office of director for a director precinct shall be filled by
appointment by the governing bodies of the member districts that
are located within the director precinct for which the vacancy
occurred. A vacancy in the office of director for an at-large
position shall be filled by appointment by the governing bodies of
all of the member districts. The appointment process shall follow
the procedures of Section 8815.055. The board may establish dates
different from those specified by Sections 8815.055(g) and (h), but
the date for the board's submission of the voting results to each
member district may not be later than the 120th day after the date
the vacancy occurs.
Sec. 8815.057. MEETINGS AND ACTIONS OF BOARD. (a) The
board may meet as many times each year as the board considers
appropriate.
(b) Directors are public officials and are entitled to
governmental immunity for their actions in their capacity as
directors and officers of the authority.
(c) Directors may receive fees of office and reimbursement
of expenses as provided by Section 49.060, Water Code.
Sec. 8815.058. GENERAL MANAGER. (a) The board may employ a
general manager of the authority or contract with a person to
perform the duties of a general manager. The board may delegate to
the general manager full authority to manage and operate the
affairs of the authority subject only to orders of the board.
(b) The board may delegate to the general manager the
authority to employ all persons necessary for the proper handling
of the business and operation of the authority and to determine the
compensation to be paid to all employees, other than the general
manager.
[Sections 8815.059-8815.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8815.101. GENERAL POWERS AND DUTIES. (a) The
authority may:
(1) provide for the conservation, preservation,
protection, recharge, and prevention of waste of groundwater, and
for the reduction of groundwater withdrawals as necessary to
develop, implement, or enforce a groundwater reduction plan, in a
manner consistent with the purposes of Section 59, Article XVI,
Texas Constitution, and facilitate compliance with subsidence
district rules, orders, regulations, or requirements;
(2) acquire or develop surface water and groundwater
supplies from sources inside or outside the boundaries of the
authority, conserve, store, transport, treat, purify, distribute,
sell, and deliver water to or among persons inside and outside the
boundaries of the authority, and allocate water among persons
participating in the authority's groundwater reduction plan
whether they are located inside or outside the authority's
boundaries;
(3) enter into contracts with persons inside or
outside the authority on terms and conditions the board considers
desirable, fair, and advantageous for the performance of its
rights, powers, and authority under this chapter;
(4) coordinate water services provided inside,
outside, or into the authority; and
(5) administer and enforce this chapter.
(b) Sections 49.451-49.455, Water Code, do not apply to the
authority.
(c) The authority has all the rights, powers, privileges,
authority, functions, and duties necessary and convenient to
accomplish the purposes of this chapter.
(d) The authority's rights, powers, privileges, authority,
functions, and duties are subject to the continuing right of
supervision of the state, to be exercised by and through the
commission.
Sec. 8815.102. AUTHORITY RULES. The authority may adopt
and enforce rules reasonably required to implement this chapter,
including rules governing procedures before the board and rules
regarding implementation, enforcement, and any other matters
related to the authority's water supply or groundwater reduction
plan.
Sec. 8815.103. FEES, USER FEES, RATES, AND CHARGES. (a)
The authority may establish fees, user fees, rates, and charges and
classifications of payers of fees and rates as necessary to enable
the authority to fulfill the authority's purposes and regulatory
functions provided by this chapter. The authority may impose fees,
user fees, rates, and charges on any person within the authority.
(b) The authority may charge the owner of a well located
within the authority's boundaries a fee or user fee according to the
amount of water pumped from the well.
(c) The board shall make reasonable efforts to send member
districts written notice of the date, time, and location of the
meeting at which the board intends to adopt a proposed charge under
Subsection (b) and the amount of the proposed charge. The board's
failure to comply with this subsection does not invalidate a charge
adopted by the board under Subsection (b).
(d) The board shall exempt from the charge under Subsection
(b) classes of wells that are not subject to any groundwater
reduction requirement imposed by the subsidence district. If any
of those classes of wells become subject to a groundwater reduction
requirement imposed by the subsidence district, the authority may
impose the charge under Subsection (b) on those classes. The board
by rule may exempt any other classes of wells from the charge under
Subsection (b). The board may not apply the charge under Subsection
(b) to a well:
(1) with a casing diameter of less than five inches
that serves only a single-family dwelling; or
(2) regulated under Chapter 27, Water Code.
(e) The authority may establish fees, user fees, rates, and
charges that are sufficient to:
(1) achieve water conservation;
(2) prevent waste of water;
(3) serve as a disincentive to pumping groundwater;
(4) develop, implement, or enforce a groundwater
reduction plan;
(5) accomplish the purposes of this chapter, including
making available alternative water supplies;
(6) enable the authority to meet operation and
maintenance expenses;
(7) pay the principal of and interest on notes, bonds,
and other obligations issued in connection with the exercise of the
authority's general powers and duties; and
(8) satisfy all rate covenants relating to the
issuance of notes, bonds, and other obligations.
(f) The authority may charge rates established by the
authority for water purchased from the authority.
(g) The authority may impose fees, user fees, or charges for
the importation of water into the authority's boundaries from a
source located outside the authority's boundaries.
Sec. 8815.104. PURCHASE OF WATER FROM ANOTHER ENTITY. (a)
If the authority purchases water from another entity for resale to
local governments, the authority shall use its best efforts in
negotiating with the entity to determine the amount of capital
costs included in any rates or charges paid by the authority. The
authority shall determine the amount of expected capital costs of
its own system.
(b) The authority shall provide each member district
information regarding the share of the capital costs to be paid by
the member district, as determined by the authority, and shall
provide each member district the opportunity, in a manner and by a
procedure determined by the authority, to fund its share of the
capital costs with proceeds from the sale of bonds or fees and
charges collected by the member districts. A member district may
use any lawful source of revenue, including bond funds, to pay any
sums due to the authority.
Sec. 8815.105. ASSESSMENTS. (a) The board may undertake
improvement projects and services that confer a special benefit on
all or a definable part of the authority. The board may impose
special assessments on property in that area, including property of
a local government, based on the benefit conferred by the
improvement project or services, to pay all or part of the cost of
the project and services. The board may provide improvements and
services to an area outside the boundaries of the authority if the
board determines that there is a benefit to the authority. The
authority may finance with special assessments any improvement
project or service authorized by this chapter or any other
applicable law.
(b) Services or improvement projects may be financed with
special assessments under this chapter only after the board holds a
public hearing on the advisability of the improvements and services
and the proposed assessments.
(c) The board shall publish notice of the hearing in a
newspaper or newspapers with general circulation in Harris County.
The publication must be made not later than the 30th day before the
date of the hearing.
(d) Notice provided under this section must include:
(1) the time and place of the hearing;
(2) the general nature of the proposed improvement
project or services;
(3) the estimated cost of the improvement, including
interest during construction and associated financing costs; and
(4) the proposed method of assessment.
(e) Written notice containing the information required by
Subsection (d) shall be mailed by certified mail, return receipt
requested, not later than the 30th day before the date of the
hearing. The notice shall be mailed to each member district. The
subsidence district shall provide to the authority a list of the
member districts that hold a well permit issued by the subsidence
district.
(f) The board may establish rules regarding procedures for a
hearing. A hearing on the services or improvement project, whether
conducted by the board or a hearings examiner, may be adjourned from
time to time. At the conclusion of a hearing conducted by the
board, the board shall make written findings and conclusions
relating to the advisability of the improvement project or
services, the nature of the improvement project or services, the
estimated cost, and the area benefited. If the board appoints a
hearings examiner to conduct the hearing, after conclusion of the
hearing, the hearings examiner shall file with the board a written
report of the examiner's findings and conclusions.
(g) At a hearing on proposed assessments, on adjournment of
the hearing, or after consideration of the hearings examiner's
report, the board shall hear and rule on all objections to each
proposed assessment. The board may amend proposed assessments for
any property. After the board hears and takes action on those
objections, the board, by order:
(1) shall impose the assessments as special
assessments on the property;
(2) shall specify the method of payment of the
assessments; and
(3) may provide that those assessments, including
interest, be paid in periodic installments.
(h) Periodic installments must be in amounts sufficient to
meet annual costs for services and improvements as provided by
Subsection (j) and continue for the number of years required to
retire the indebtedness or pay for the services to be rendered. The
board may provide interest charges or penalties for failure to make
timely payment and may impose an amount to cover delinquencies and
expenses of collection.
(i) If assessments are imposed for more than one service or
improvement project, the board may provide that assessments
collected for one service or improvement project may be borrowed to
be used for another service or improvement project. The board shall
establish a procedure for the distribution or use of any
assessments in excess of those necessary to finance the services or
improvement project for which those assessments were collected.
(j) The board shall apportion the cost of an improvement
project or services to be assessed against the property in the
authority according to the special benefits that accrue to the
property because of the improvement project or services. The board
may assess the cost only according to the number of gallons of
groundwater pumped from wells within the authority that are subject
to a groundwater reduction requirement imposed by the subsidence
district. The board may not assess the cost according to
groundwater pumped from:
(1) a well with a casing diameter of less than five
inches that serves only a single-family dwelling; or
(2) a well that is regulated by Chapter 27, Water Code.
(k) The area of the authority to be assessed according to
the findings of the board may be the entire authority or any part of
the authority and may be less than the area proposed in the notice
of the hearing.
(l) The area to be assessed may not include property that is
not within the authority boundaries at the time of the hearing
unless there is an additional hearing, following the required
notice.
(m) Notwithstanding Subsection (l), the owner of land
annexed to the authority after the authority has imposed
assessments may waive the right to notice and an assessment hearing
and may agree to the imposition and payment of assessments at an
agreed rate for land annexed to the authority. A member district
may waive the right to notice and an assessment hearing for land
within its boundaries annexed to the authority and may agree to the
imposition and payment of assessments at an agreed rate for the
annexed land.
(n) The board shall have prepared an assessment roll showing
the assessments against each property and the board's basis for the
assessment. The assessment roll shall be:
(1) filed with the secretary of the board or other
officer who performs the function of secretary; and
(2) open for public inspection.
(o) After notice and hearing in the manner required for an
original assessment, the board may make supplemental assessments to
correct omissions or mistakes in the assessment:
(1) relating to the total cost of the improvement
project or services; or
(2) covering delinquencies or costs of collection.
Sec. 8815.106. INTEREST AND PENALTIES. The board may
require the payment of interest on any late or unpaid fees, user
fees, rates, charges, and special assessments due the authority,
but the interest rate may not exceed the interest rate permitted by
Section 2251.025, Government Code. The board may also impose
penalties for the failure to make a complete or timely payment to
the authority. In addition, the board may exclude a member district
or other person, or any territory or well owned or controlled by a
member district or other person, from the authority's groundwater
reduction plan for failure to make a complete or timely payment to
the authority.
Sec. 8815.107. ADMINISTRATIVE PENALTY; INJUNCTION. (a) A
person who violates a rule or order of the authority is subject to
an administrative penalty of not more than $5,000, as determined by
the board, for each violation or each day of a continuing violation.
The person shall pay the penalty to the authority.
(b) The authority may bring an action to recover the penalty
in a district court in the county where the violation occurred.
(c) The authority may bring an action for injunctive relief
in a district court in the county where a violation of an authority
rule or order occurs or is threatened to occur. The court may grant
to the authority, without bond or other undertaking, a prohibitory
or mandatory injunction that the facts warrant, including a
temporary restraining order, temporary injunction, or permanent
injunction.
(d) The authority may bring an action for an administrative
penalty and injunctive relief in the same proceeding.
Sec. 8815.108. WATER SUPPLY OR DROUGHT CONTINGENCY PLANS.
The authority by rule may develop, prepare, revise, adopt,
implement, enforce, and manage comprehensive water supply or
drought contingency plans for the authority, or any portion of the
authority.
Sec. 8815.109. GROUNDWATER REDUCTION PLAN. (a)
Notwithstanding any other law, regardless of whether the authority
enters into contracts with local governments located within its
boundaries, and regardless of whether the authority holds any well
permit issued by the subsidence district under Chapter 8801, the
authority by rule may wholly or partly develop, prepare, revise,
adopt, implement, enforce, manage, or participate in a groundwater
reduction plan that is applicable only to the authority or a
groundwater reduction plan that is applicable to the authority and
one or more persons outside the authority. The authority may
require that any groundwater reduction plan that the authority
wholly or partly develops, prepares, revises, adopts, implements,
enforces, or manages or in which the authority participates be the
exclusive groundwater reduction plan that is binding and mandatory
on some or all of the territory, member districts or other persons,
or wells located within the authority. A groundwater reduction
plan may:
(1) specify the measures to be taken to reduce
groundwater withdrawals;
(2) identify alternative sources of water to be
provided to those affected;
(3) identify the rates, terms, and conditions under
which alternative sources of water will be provided, which may be
changed from time to time as considered necessary by the authority;
(4) specify the dates and extent to which member
districts or other persons within the authority's boundaries shall
reduce or cease reliance on groundwater and accept water from
alternative sources;
(5) include other terms and measures that are
consistent with the powers and duties of the authority;
(6) exceed the minimum requirements imposed by the
subsidence district, including any applicable groundwater
reduction requirements; and
(7) be amended from time to time at the discretion of
the authority.
(b) Fees, user fees, rates, charges, and special
assessments of the authority may be imposed under this chapter for a
person's participation in and benefit derived from the authority's
groundwater reduction plan or a groundwater reduction plan in which
the authority participates.
Sec. 8815.110. ACQUISITION, CONSTRUCTION, AND OPERATION OF
SYSTEMS. (a) The authority may:
(1) acquire by purchase, gift, lease, contract, or any
other legal means a water treatment or supply system, or any other
works, plants, improvements, or facilities necessary or convenient
to accomplish the purposes of the authority, or any interest of the
authority, inside or outside the authority's boundaries;
(2) design, finance, operate, maintain, or construct a
water treatment or supply system or any other works, plants,
improvements, or facilities necessary or convenient to accomplish
the purposes of the authority and provide water services inside or
outside the authority's boundaries;
(3) lease or sell a water treatment or supply system or
any other works, plants, improvements, or facilities necessary or
convenient to accomplish the purposes of the authority that the
authority constructs or acquires inside or outside the authority's
boundaries;
(4) contract with any person to operate or maintain a
water treatment or supply system the person owns; or
(5) acquire water rights under any law or permit.
(b) Except as otherwise provided by this chapter, the
provisions of Chapter 49, Water Code, pertaining to competitive
bidding apply to the authority.
(c) The authority may contract, according to terms and
conditions the board considers desirable, fair, and advantageous,
with a person outside the authority's boundaries:
(1) to allow the person to be included in a groundwater
reduction plan adopted or implemented wholly or partly by the
authority or in a groundwater reduction plan in which the authority
participates;
(2) to sell water to the person; or
(3) to sell the person available excess capacity or
additional capacity of the authority's water treatment or supply
system.
(d) The authority by rule may require that the plans and
specifications of water lines to be constructed within the
authority that are designed or intended to serve more than one
member district or more than one person owning or holding a well
permit issued by the subsidence district be approved by the
authority before the commencement of construction of the water
lines.
Sec. 8815.111. SALE OR REUSE OF WATER OR BY-PRODUCT. The
authority may store, sell, or reuse:
(1) water; or
(2) any by-product from the authority's operations.
Sec. 8815.112. CONTRACTS. (a) The authority may enter into
a contract with a person for the performance of a purpose or
function of the authority, including a contract to design,
construct, finance, lease, own, manage, operate, or maintain works,
improvements, facilities, plants, equipment, or appliances
necessary to accomplish a purpose or function of the authority. A
contract may be of unlimited duration.
(b) The authority may purchase, acquire, finance, or lease
an interest in a project used for a purpose or function of the
authority.
(c) The authority may contract for:
(1) the purchase, sale, or lease of water or water
rights;
(2) the performance of activities within the powers of
the authority through the purchase, construction, or installation
of works, improvements, facilities, plants, equipment, or
appliances; or
(3) the design, construction, ownership, management,
maintenance, or operation of any works, improvements, facilities,
plants, equipment, or appliances of the authority or another
person.
(d) The authority may purchase surplus property from this
state, the United States, or another public entity through a
negotiated contract without bids.
Sec. 8815.113. COOPERATION WITH AND ASSISTANCE OF OTHER
GOVERNMENTAL ENTITIES. (a) In implementing this chapter, the
board may cooperate with and request the assistance of the Texas
Water Development Board, the commission, the United States
Geological Survey, the subsidence district, other local
governments, and other agencies of the United States and this
state.
(b) The subsidence district may enter into an interlocal
contract with the authority to carry out the authority's purposes
and may carry out the governmental functions and services specified
in the interlocal contract.
(c) The board shall endeavor to coordinate with the City of
Houston to develop a plan for a system to distribute surface water
in an economical and efficient manner to the authority.
(d) In an attempt to minimize costs associated with
preparing a groundwater reduction plan, the board shall consider
the usefulness of water supply studies and plans prepared by or on
behalf of the North Harris County Regional Water Authority, the
West Harris County Regional Water Authority, the City of Houston,
or other governmental entities to the extent those studies or plans
are available and applicable to the authority.
Sec. 8815.114. GIFTS AND GRANTS. The authority may accept a
gift or grant from money collected by the subsidence district under
Chapter 8801 to fund the construction, maintenance, or operation of
a water treatment or supply system.
Sec. 8815.115. EXPENDITURES. (a) The authority's money
may be disbursed only by check, draft, order, federal reserve wire
system, or other instrument or authorization.
(b) Disbursements of the authority must be signed by at
least a majority of the directors. Notwithstanding any other law,
the board by resolution may allow the general manager, treasurer,
bookkeeper, or other employee of the authority to sign
disbursements, except as limited by Subsection (c).
(c) The board by resolution may allow disbursements to be
transferred by federal reserve wire system to accounts in the name
of the authority without the necessity of any directors signing the
disbursement. Disbursements of the authority's money by federal
reserve wire system to any accounts not in the name of the authority
must be signed by at least a majority of the directors.
Sec. 8815.116. AD VALOREM TAXATION. The authority may not
impose an ad valorem tax.
Sec. 8815.117. EMINENT DOMAIN. (a) The authority may
acquire by condemnation any land, easements, or other property
inside the authority's boundaries to further authorized purposes,
powers, or duties of the authority. The authority may acquire by
condemnation any land, easements, or other property outside the
authority's boundaries for the purpose of pumping, storing,
treating, or transporting water. When exercising the power of
eminent domain granted by this section, the authority may elect to
condemn either the fee simple title or a lesser property interest.
(b) The authority shall exercise the right of eminent domain
in the manner provided by Chapter 21, Property Code. The authority
is not required to give bond for appeal or bond for costs in a
condemnation suit or other suit to which it is a party. The
authority is not required to deposit more than the amount of an
award in a suit.
(c) The authority may not use the power of eminent domain
for the condemnation of land for the purpose of acquiring rights to
groundwater or for the purpose of acquiring water or water rights.
(d) The authority may not use the power of eminent domain
for the condemnation of property that is:
(1) owned by the City of Houston or any
instrumentality of the City of Houston, including a local
government corporation created under Chapter 431, Transportation
Code, to aid or act on behalf of the City of Houston; or
(2) located within the municipal limits of the City of
Houston.
(e) Notwithstanding Subsection (d)(2), and as limited by
Subsection (a), the authority may use the power of eminent domain to
acquire property that is not owned by the City of Houston that is
within the municipal limits of the City of Houston if:
(1) the property is located in an area of the
municipality that is less than 1,000 feet wide at its narrowest
point; or
(2) the municipality grants permission for the
condemnation.
Sec. 8815.118. CONSENT REQUIRED FOR SERVICE OUTSIDE OF
AUTHORITY. (a) Notwithstanding any contrary provision of this
subchapter, the authority must obtain the consent of the City of
Houston before providing water service to any person or territory
outside the boundaries of the authority.
(b) Subsection (a) does not apply to a person or territory
that receives water service or has contracted to receive water
service from a member district on the effective date of the Act
creating this chapter.
[Sections 8815.119-8815.150 reserved for expansion]
SUBCHAPTER D. BONDS AND NOTES
Sec. 8815.151. REVENUE BONDS AND NOTES. (a) The authority
may issue bonds or notes payable solely from revenue from any
source, including:
(1) tolls, charges, rates, fees, user fees, and
special assessments the authority imposes or collects;
(2) the sale of water, water services, water rights or
capacity, water transmission rights or services, water pumping, or
any other service or product of the authority provided inside or
outside the boundaries of the authority;
(3) grants or gifts;
(4) the ownership or operation of all or a designated
part of the authority's works, improvements, facilities, plants, or
equipment; and
(5) contracts between the authority and any person.
(b) Notes issued by the authority may be first or
subordinate lien notes at the board's discretion.
(c) In connection with any bonds or notes of the authority,
the authority may exercise any power of an issuer under Chapter
1371, Government Code.
(d) The authority may conduct a public, private, or
negotiated sale of the bonds or notes.
(e) The authority may enter into one or more indentures of
trust to further secure its bonds or notes.
(f) The authority may issue bonds or notes in more than one
series as necessary to carry out the purposes of this chapter. In
issuing bonds or notes secured by revenue of the authority, the
authority may reserve the right to issue additional bonds or notes
secured by the authority's revenue that are on a parity with or are
senior or subordinate to the bonds or notes issued earlier.
(g) A resolution of the board authorizing the bonds or notes
or a trust indenture securing the bonds or notes may specify
additional provisions that constitute a contract between the
authority and its bondholders or noteholders.
(h) Bonds and notes may be additionally secured by deed of
trust or mortgage on any or all of the authority's facilities.
(i) Sections 49.153, 49.154, and 49.181, Water Code, do not
apply to bonds or notes issued by the authority. Commission rules
regarding bonds or notes do not apply to bonds or notes issued by
the authority.
SECTION 2. (a) The proper and legal notice of the intention
to introduce this Act, setting out 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 by
the constitution and other laws of this state, including the
governor, who has submitted the notice and this Act to the
commission.
(b) The commission has filed its recommendations relating
to this Act with the governor, lieutenant governor, and speaker of
the house of representatives within the required time.
(c) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to notice, introduction, and passage of this Act are fulfilled and
accomplished.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3181 was passed by the House on May
10, 2005, by the following vote: Yeas 147, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3181 was passed by the Senate on May
25, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor