81(R) SB 1223 - Enrolled version

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	S.B. No. 1223




	AN ACT
	relating to the creation, administration, powers, duties, and
	operation of the Riverbend Water Resources District; providing
	authority to issue bonds and exercise the power of eminent domain.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Title 6, Special District Local Laws Code, is
	amended by adding Subtitle L to read as follows:
	SUBTITLE L. MUNICIPAL WATER DISTRICTS
	CHAPTER 9601. RIVERBEND WATER RESOURCES DISTRICT
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 9601.001. DEFINITIONS. In this chapter:
	(1) "Board" means the board of directors of the
	district.
	(2) "Bond" has the meaning assigned to the term
	"public security" by Section 1202.001, Government Code.
	(3) "Director" means a person appointed to the board.
	(4) "District" means the Riverbend Water Resources
	District.
	(5) "Member" means a municipality, county, or other
	political subdivision that is a member of the district as provided
	by Section 9601.005.
	Sec. 9601.002. NATURE OF DISTRICT. The district is a
	conservation and reclamation district created under and essential
	to accomplish the purposes of Section 59, Article XVI, Texas
	Constitution.
	Sec. 9601.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
	(a) The district is created to serve a public use and benefit.
	(b) All land and other property included in the boundaries
	of the district will benefit from the works and projects
	accomplished by the district under the powers conferred by Section
	59, Article XVI, Texas Constitution.
	(c) The accomplishment of the purposes stated in this
	chapter is for the benefit of the people of this state and the
	improvement of their property and industries and will foster and
	encourage economic development in this state.
	(d) The district, in carrying out the purposes of this
	chapter, will be performing an essential public function under the
	constitution.
	Sec. 9601.004. LIBERAL CONSTRUCTION OF CHAPTER. This
	chapter shall be liberally construed to effect the purposes,
	powers, rights, and functions stated in this chapter.
	Sec. 9601.005. DISTRICT MEMBERS. (a) The district is
	composed of the following members:
	(1) the City of Annona;
	(2) the City of Avery;
	(3) the City of DeKalb;
	(4) the City of Hooks;
	(5) the City of Maud;
	(6) the City of New Boston;
	(7) the City of Texarkana, Texas;
	(8) the City of Wake Village; and
	(9) the Red River Redevelopment Authority.
	(b) After receipt of a petition from the governing body of a
	municipality, county, or other political subdivision that desires
	to join the district, the board may add a member to the district on
	terms determined by the board to be in the best interests of the
	district.
	(c) A member's withdrawal from the district or the cessation
	of existence of a member does not affect the validity of the
	district or any of the district's powers or duties.
	Sec. 9601.006. DISTRICT TERRITORY. (a) The territory of
	the district is composed of all the territory contained in:
	(1) the cities of Annona, Avery, DeKalb, Hooks, Maud,
	New Boston, Texarkana, Texas, and Wake Village; and
	(2) the Red River Redevelopment Authority, the
	boundaries of which are described by Section 3503.004, including
	territory that may be added under Section 3503.005.
	(b) The territory of the district also includes all of the
	territory:
	(1) of any municipality, county, or other political
	subdivision that joins the district as a member; and
	(2) added to the territory of a member by annexation or
	other means.
	(c) A defect in the description of the boundaries of a
	member or in any past or future proceedings for the annexation of
	territory by a member does not affect the validity, powers, or
	duties of the district.
	Sec. 9601.007. CONFIRMATION ELECTION NOT REQUIRED.
	(a) The board is not required to hold an election to confirm the
	district's creation.
	(b) Sections 49.101-49.105, Water Code, do not apply to the
	district.
	[Sections 9601.008-9601.050 reserved for expansion]
	SUBCHAPTER B. BOARD OF DIRECTORS
	Sec. 9601.051. COMPOSITION OF BOARD; TERMS. (a) The
	district is governed by its board.
	(b) The governing body of each member shall appoint a
	director to represent the member on the board and shall promptly
	fill a vacancy in that board position in accordance with the
	member's policies, resolutions, and procedures.
	(c) Except as provided by Subsection (d), directors serve
	staggered terms of four years.
	(d) A director who is also an elected official of a
	political subdivision serves for a term coinciding with the term of
	the elected office.
	(e) The board shall determine the method of staggering the
	terms of the directors.
	(f) A director may serve consecutive terms.
	Sec. 9601.052. QUALIFICATIONS FOR OFFICE. To be eligible
	to be appointed or to serve as a director, a person must be a
	resident, qualified voter of the district.
	Sec. 9601.053. BOARD RESOLUTIONS; VOTING REQUIREMENTS.
	(a) The district shall act through orders or resolutions adopted
	by the board.
	(b) All directors are entitled to vote.
	Sec. 9601.054. OFFICERS AND ASSISTANTS. (a) The board
	shall elect a president, vice president, secretary, and treasurer.
	(b) The board shall elect the president and vice president
	from among the directors.
	(c) The president and vice president serve for a one-year
	term.
	(d) The offices of secretary and treasurer:
	(1) may be held by one person; and
	(2) are not required to be held by a director.
	(e) The board may appoint one or more assistant officers who
	are not required to be directors.
	(f) A person may not concurrently hold the offices of board
	president and secretary.
	Sec. 9601.055. MEETINGS. The board shall have regular
	meetings at times specified by board resolution or bylaws and shall
	have special meetings when called by the board president or by a
	number of directors that is equal to or greater than the number of
	directors that is one less than a majority of the board.
	Sec. 9601.056. TELEPHONE CONFERENCE CALL MEETINGS.
	(a) The board may hold an open or closed meeting by telephone
	conference call only if:
	(1) the meeting is a special called meeting;
	(2) immediate action is required; and
	(3) convening a quorum of the board at one location is
	difficult or impossible.
	(b) A telephone conference call meeting is subject to the
	notice requirements applicable to other meetings of the board.
	(c) Each part of a telephone conference call meeting that is
	required to be open to the public shall be made audible to the
	public at the location specified in the notice of the meeting as the
	location of the meeting.
	(d) The location designated in the notice as the location of
	the meeting shall provide two-way communication during the entire
	telephone conference call meeting, and the identification of each
	party to the telephone conference shall be clearly stated prior to
	speaking.
	(e) Section 551.125, Government Code, does not apply to a
	meeting held under this section.
	Sec. 9601.057. RECALL. A director may be recalled at any
	time by the governing body of the member that appointed the
	director.
	Sec. 9601.058. COMPENSATION; REIMBURSEMENT. A director is
	not entitled to compensation for service on the board but is
	entitled to be reimbursed for necessary expenses incurred in the
	performance of official duties.
	Sec. 9601.059. BOARD POSITION NOT A CIVIL OFFICE OF
	EMOLUMENT. (a) A position on the board may not be construed to be
	a civil office of emolument for any purpose, including a purpose
	described in Section 40, Article XVI, Texas Constitution.
	(b) An elected official of any county, municipality, or
	other political subdivision in the territory of the district may be
	appointed to and serve on the board as a director without penalty or
	forfeiture of office.
	[Sections 9601.060-9601.100 reserved for expansion]
	SUBCHAPTER C. POWERS AND DUTIES
	Sec. 9601.101. GENERAL POWERS. Except as provided by this
	chapter, the district may exercise the powers applicable to a
	district under Chapter 49, Water Code.
	Sec. 9601.102. SPECIFIC POWERS. The district may exercise
	any power necessary or appropriate to achieve the purposes of this
	chapter, including the power to:
	(1) adopt and enforce:
	(A) a trade name or trademark;
	(B) bylaws and rules for the conduct of the
	affairs of the district;
	(C) any rule that a water control and improvement
	district may adopt and enforce in accordance with Sections
	51.127-51.130, Water Code; and
	(D) specific rates, charges, fees, or rentals,
	and reasonable rules and regulations, for providing any district
	commodity, facility, or service;
	(2) in the manner and to the extent permitted by this
	chapter:
	(A) borrow money for a district purpose;
	(B) enter into an agreement in connection with
	the borrowing;
	(C) issue bonds for money borrowed;
	(D) provide for and secure the payment of the
	bonds; and
	(E) provide for the rights of the holders of the
	bonds;
	(3) acquire any and all storage rights and storage
	capacity in a reservoir or other water source inside or outside the
	boundaries of the district, and acquire the right to take water from
	that reservoir or source, subject to the rights or permits held by
	municipalities or other persons, and in accordance with any
	contract or contracts that the district may make with the United
	States, any state of the United States, or any political
	subdivision of any state of the United States, in reference to those
	rights;
	(4) construct, acquire, own, finance, operate,
	maintain, sell, lease as lessor or lessee, dispose of, or otherwise
	use any work, plant, or other district facility as defined by
	Section 49.001, Water Code, inside or outside the boundaries of the
	district, that the board determines is necessary or useful for the
	exercise of a district power; and
	(5) pledge all or part of district revenue to the
	payment of district obligations under a contract or agreement to
	the same extent and on the same conditions as the district may
	pledge revenue to secure district bonds.
	Sec. 9601.103. GENERAL POWERS REGARDING WATER. The
	district has all rights, powers, and privileges necessary or useful
	to enable it to acquire, provide, supply, deliver, and sell water,
	whether processed or unprocessed, raw or potable, inside or outside
	its boundaries to any person for any beneficial purpose.
	Sec. 9601.104. AUTHORITY OF PUBLIC AGENCIES AND POLITICAL
	SUBDIVISIONS TO CONTRACT WITH DISTRICT. (a) A public agency or a
	county, municipality, or other political subdivision of this state
	or another state may enter into a contract or agreement with the
	district, on terms agreed to by the parties, for:
	(1) the purchase or sale of water;
	(2) waste collection, transportation, processing, or
	disposal; or
	(3) any purpose relating to the district's powers or
	functions.
	(b) A contract or agreement under this section must comply
	with Chapter 791, Government Code.
	(c) A provision of district services or facilities to a
	member or an exercise of district power regarding a member's retail
	services may only be made through a contract between the district
	and the member under this section.
	Sec. 9601.105. CONVEYANCE OF PROPERTY TO DISTRICT. A
	public agency or a county, municipality, or other political
	subdivision of this state may lease, sell, or otherwise convey to
	the district, for any consideration that the parties agree is
	adequate, any of its land, improvements, property, plants, lines,
	or other facilities related to:
	(1) the supply, delivery, or sale of water;
	(2) waste collection, transportation, processing, or
	disposal; or
	(3) garbage collection or disposal.
	Sec. 9601.106. ACQUISITION OF EXISTING FACILITIES. If the
	district acquires existing works, improvements, facilities,
	plants, equipment, or appliances that are completed, partially
	created, or under construction, the district may:
	(1) assume the contracts and obligations of the
	previous owner; and
	(2) perform the obligations of the previous owner in
	the same manner and to the same extent that any other purchaser or
	assignee would be bound.
	[Sections 9601.107-9601.150 reserved for expansion]
	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
	Sec. 9601.151. PROHIBITION ON ASSESSMENTS OR TAXES.
	(a) The district may not under this chapter or any other law impose
	an assessment on real property or an ad valorem tax or create a debt
	payable from an assessment on real property or an ad valorem tax.
	(b) Sections 49.106-49.108, Water Code, do not apply to the
	district.
	Sec. 9601.152. DEPOSITORY. District money shall be
	deposited in the depository or depositories designated by the
	board, except that:
	(1) bond proceeds and money pledged to pay bonds, to
	the extent provided in the proceedings authorizing the issuance of
	bonds, or the trust indenture securing the bonds, may be deposited
	with another depository or trustee named in the proceedings or
	trust indenture; and
	(2) money shall be remitted to each paying agent for
	the payment of principal of and interest on the bonds.
	Sec. 9601.153. INVESTMENT OF DISTRICT MONEY. (a) Chapter
	2256, Government Code, applies to the district and the investment
	of district funds and funds under district control.
	(b) The board may invest bond proceeds in a manner
	determined by the board or in the manner permitted or required in
	the proceedings authorizing the issuance of bonds or in the trust
	indenture securing the bonds.
	Sec. 9601.154. DISTRICT FACILITIES EXEMPT FROM TAXATION AND
	ASSESSMENT. The district is not required to pay a tax or assessment
	on its facilities or any part of its facilities.
	[Sections 9601.155-9601.200 reserved for expansion]
	SUBCHAPTER E. BONDS
	Sec. 9601.201. AUTHORITY TO ISSUE BONDS. (a) The district
	by resolution may authorize the issuance of bonds payable from and
	secured by revenue or any other available source of district money
	to carry out a power conferred by this chapter. Bonds issued by the
	district are not a direct obligation of any member.
	(b) The bonds must be issued in the manner and under the
	terms of the proceedings authorizing the issuance of the bonds.
	(c) Bonds may be issued by the district without an election.
	(d) Sections 49.181-49.186, Water Code, do not apply to the
	district.
	Sec. 9601.202. FORM OF BONDS. District bonds must be:
	(1) issued in the district's name; and
	(2) signed by the officers of the district in
	accordance with the proceedings authorizing the issuance of the
	bonds.
	Sec. 9601.203. MATURITY. District bonds must mature not
	later than 50 years after the date of their issuance.
	Sec. 9601.204. BONDS SECURED BY REVENUE; ADDITIONAL BONDS.
	(a) Bonds may be secured by a pledge of all or part of the
	district's revenue, or by all or part of the payments or rentals
	under one or more contracts or leases specified by the proceedings
	authorizing the issuance of the bonds.
	(b) The proceedings authorizing the issuance of bonds
	secured by a pledge of revenue of all or part of the district's
	facilities may provide that the district shall first pay the
	expenses of operating and maintaining all or part of the facilities
	as the board considers appropriate before paying the principal of
	and interest on the bonds.
	(c) In the proceedings authorizing the issuance of bonds
	secured by revenue, contract payments, or lease rentals, the
	district may reserve the right, under conditions specified by the
	proceedings, to issue additional bonds that will be on a parity
	with, superior to, or subordinate to the bonds then being issued.
	Sec. 9601.205. ADDITIONAL SECURITY. (a) At the discretion
	of the board, bonds may be additionally secured by a deed of trust
	or mortgage lien on all or part of the district's physical property,
	facilities, easements, water rights and appropriation permits,
	leases, contracts, and all rights appurtenant to the property,
	vesting in the trustee power to:
	(1) sell the property for the payment of the bonds;
	(2) operate the property; and
	(3) take other action to further secure the bonds.
	(b) A purchaser under a sale under the deed of trust lien, if
	one is given, is:
	(1) the absolute owner of the property, facilities,
	and rights purchased; and
	(2) entitled to maintain and operate the property,
	facilities, and rights.
	Sec. 9601.206. DELEGATION OF AUTHORITY. (a) In connection
	with the issuance of bonds, the board may:
	(1) prescribe the maximum principal amount of bonds to
	be issued and the maximum rate of interest the bonds may bear;
	(2) recite the public purpose for which the bonds are
	to be issued;
	(3) delegate to any officer or employee of the
	district the authority to effect the sale of the bonds; and
	(4) determine the period during which the delegation
	authority under Subdivision (3) may be exercised.
	(b) In exercising the authority delegated by the board to an
	officer or employee, the officer or employee may establish the
	terms and details related to the issuance and sale of the bonds,
	including:
	(1) the form and designation of the bonds;
	(2) the principal amount of the bonds and the amount of
	the bonds to mature in each year;
	(3) the dates, price, interest rates, interest payment
	dates, principal payment dates, and redemption features of the
	bonds;
	(4) the execution of agreements determined by the
	officer or employee to be necessary in connection with the issuance
	of the bonds; and
	(5) any other details relating to the issuance and
	sale of the bonds as specified by the board in the proceedings
	authorizing the issuance of the bonds.
	(c) A finding or determination made by an officer or
	employee acting under the authority delegated to the officer or
	employee has the same force and effect as a finding or determination
	made by the board.
	Sec. 9601.207. TRUST INDENTURE. District bonds authorized
	by this chapter, including refunding bonds, may be additionally
	secured by a trust indenture. The trustee may be a bank with trust
	powers that is located inside or outside the state.
	Sec. 9601.208. CREDIT AGREEMENT. In connection with the
	issuance of bonds under this chapter, the board may exercise the
	authority granted to the governing body of an issuer with regard to
	the execution and delivery of a credit agreement under Chapter
	1371, Government Code.
	Sec. 9601.209. CHARGES FOR DISTRICT SERVICES. If bonds
	payable wholly from revenue are issued, the board shall set and
	revise the rates, fees, and charges assessed for water sold, waste
	collection and treatment services provided, and garbage collection
	services provided by the district. The rates, fees, and charges
	must be sufficient to:
	(1) pay the expense of operating and maintaining the
	district facilities that generate the revenue from which the bonds
	may or will be paid;
	(2) pay the principal of and interest on the bonds when
	due; and
	(3) maintain the reserve fund and other funds as
	provided in the proceedings authorizing the issuance of bonds or
	the trust indenture securing the bonds.
	Sec. 9601.210. STATE PLEDGE REGARDING RIGHTS AND REMEDIES
	OF BONDHOLDERS. Without depriving this state of its power to
	regulate and control the rates, fees, and charges assessed for
	water sold and waste collection and treatment services provided by
	the district, the state pledges to and agrees with the holders of
	district bonds that the state will not exercise its power to
	regulate and control the rates, fees, and charges in any way that
	would impair the rights or remedies of the holders of the bonds.
	Sec. 9601.211. USE OF BOND PROCEEDS. In addition to the
	permitted use of bond proceeds provided by general law, the
	district may use proceeds from the sale of bonds:
	(1) for the payment of interest on the bonds while the
	project or facility is being acquired or constructed and for the
	year after it is acquired or constructed;
	(2) for the operation and maintenance of the project
	or facility during the estimated period of acquisition or
	construction of the project or facility and for one year after it is
	acquired or constructed;
	(3) for a debt service reserve fund;
	(4) for other funds as may be provided in the
	proceedings authorizing the issuance of bonds or in the trust
	indenture securing the bonds;
	(5) to pay any expense necessarily incurred in
	accomplishing the purpose of the district, including any expense of
	issuing and selling the bonds; and
	(6) to pay any costs incurred under the terms of a
	credit agreement.
	Sec. 9601.212. ADDITIONAL AUTHORITY TO PROVIDE DEBT SERVICE
	RESERVE. (a) The board may provide that in lieu of or in addition
	to providing for the funding of a debt service reserve fund with
	cash, a line or letter of credit or an insurance policy may be used
	for the debt service reserve fund.
	(b) Any agreement under which a line or letter of credit or
	insurance policy is provided must be submitted to the attorney
	general for examination and approval. After approval, the
	agreement is incontestable in any court or other forum for any
	reason and is a valid and binding obligation of the district in
	accordance with its terms for all purposes.
	Sec. 9601.213. REFUNDING BONDS. (a) The district may
	issue refunding bonds to refund all or part of its outstanding bonds
	issued under this chapter, including matured but unpaid interest
	and obligations incurred under a credit agreement.
	(b) Refunding bonds may be issued in the manner provided by
	Chapter 1207, Government Code.
	Sec. 9601.214. REMEDIES AND COVENANTS. The proceedings
	authorizing the issuance of any bonds authorized under this
	chapter, including refunding bonds, the execution of a trust
	indenture securing the bonds, and the execution of a credit
	agreement, may provide other remedies and covenants the board
	considers necessary to issue the bonds on terms the board
	determines to be most favorable to the district.
	Sec. 9601.215. LIMITATION ON RIGHTS OF BONDHOLDERS. The
	proceedings authorizing the issuance of bonds or the trust
	indenture securing the bonds may limit or qualify the rights of the
	holders of less than all of the outstanding bonds payable from the
	same source to institute or prosecute litigation affecting the
	district's property or income.
	Sec. 9601.216. BONDS EXEMPT FROM TAXATION. Payments made
	by the district in connection with the issuance of bonds, the
	transfer of any bond, and the income from any bond, including
	profits made on the sale of any bond, are exempt from taxation in
	this state.
	Sec. 9601.217. APPOINTMENT OF RECEIVER. (a) On default or
	threatened default in the payment of the principal of or interest on
	obligations incurred by the district in connection with the
	issuance of bonds that are payable wholly or partly from revenue, a
	court may, on petition of the holders of at least 25 percent of the
	district's outstanding revenue bonds, or the party to a credit
	agreement, appoint a receiver for the district.
	(b) The receiver may collect and receive all district
	revenue, employ and discharge district agents and employees, take
	charge of money on hand, and manage the district's proprietary
	affairs without the consent of or hindrance by the board.
	(c) The receiver may be authorized to sell or contract for
	the sale of water, the collection or treatment of waste, or the
	provision of garbage collection or disposal services, or to renew
	contracts with the approval of the court that appointed the
	receiver.
	(d) The court may vest the receiver with any other power or
	duty the court finds necessary to protect the holders of the bonds
	or the party to a credit agreement.
	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 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,
	lieutenant governor, and 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. 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, 2009.





	______________________________	______________________________
	President of the Senate	Speaker of the House

	I hereby certify that S.B. No. 1223 passed the Senate on
	April 16, 2009, by the following vote: Yeas 31, Nays 0.


	______________________________
	Secretary of the Senate

	I hereby certify that S.B. No. 1223 passed the House on
	May 26, 2009, by the following vote: Yeas 143, Nays 0, one
	present not voting.


	______________________________
	Chief Clerk of the House



	Approved:

	______________________________
	Date


	______________________________
	Governor