H.B. No. 2360
 
 
 
 
  relating to the creation of the Corn Hill Regional Water Authority;
  providing authority to issue bonds.
         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 8364 to read as follows:
  CHAPTER 8364.  CORN HILL REGIONAL WATER AUTHORITY
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 8364.001.  DEFINITIONS.  In this chapter:
               (1)  "Authority" means the Corn Hill Regional Water
  Authority.
               (2)  "Board" means the authority's board of directors.
               (3)  "Commission" means the Texas Commission on
  Environmental Quality.
               (4)  "Director" means a board member.
               (5)  "Member entity" means a municipality or other
  political subdivision that is a member under Section 8364.071.
         Sec. 8364.002.  NATURE OF AUTHORITY.  The authority is a
  conservation and reclamation district created under Section 59,
  Article XVI, Texas Constitution.
         Sec. 8364.003.  CONFIRMATION ELECTION NOT REQUIRED.  The
  authority is not required to hold an election to confirm the
  creation of the authority.
         Sec. 8364.004.  FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a)
  The authority is created to serve a public purpose and benefit.
         (b)  All land and other property included in the authority
  will benefit from the improvements and services to be provided by
  the authority under powers conferred by Section 59, Article XVI,
  Texas Constitution, and other powers granted under this chapter.
         (c)  The authority is created to accomplish the control,
  storage, conservation, preservation, distribution, and use of
  water for domestic, industrial, municipal, and all other useful
  purposes as provided by Section 59, Article XVI, Texas
  Constitution.
         (d)  The creation of the authority is in the public interest
  and is essential to:
               (1)  further the public purposes of developing and
  diversifying the economy of the state;
               (2)  eliminate unemployment and underemployment;
               (3)  develop or expand commerce; and
               (4)  conserve the natural resources of this state.
         (e)  The authority will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, potential employees, employees, visitors,
  and consumers in the authority, and of the public; and
               (2)  provide needed funding for the authority to
  preserve, maintain, and enhance the economic health and vitality of
  the authority territory as a community and business center.
         Sec. 8364.005.  AUTHORITY TERRITORY.  The authority is
  composed of the territory in the member entities.
         Sec. 8364.006.  CHANGE IN MEMBERSHIP OR TERRITORY;
  NOTIFICATION TO COMMISSION.  The authority shall notify the
  commission of any changes in its membership or territory.
  [Sections 8364.007-8364.050 reserved for expansion]
  SUBCHAPTER B.  BOARD OF DIRECTORS
         Sec. 8364.051.  GOVERNING BODY; TERMS.  (a)  The authority is
  governed by a board of appointed directors.
         (b)  Directors serve staggered three-year terms, with terms
  expiring on September 1.
         (c)  Each member entity shall appoint two directors.
         (d)  A director serves at the pleasure of the governing body
  of the member entity that appointed the director. A member entity
  may remove the director and appoint a new director at any time by
  resolution or ordinance of the governing body of the member entity.
         [Sections 8364.052-8364.070 reserved for expansion]
  SUBCHAPTER B-1. AUTHORITY MEMBERSHIP
         Sec. 8364.071.  INITIAL MEMBER ENTITIES. The initial member
  entities are:
               (1)  Sonterra Municipal Utility District; and
               (2)  CLL Municipal Utility District No. 1.
         Sec. 8364.072.  PETITION TO JOIN AUTHORITY. (a) A
  municipality or other political subdivision may petition the board
  to add that municipality or political subdivision as a member
  entity.
         (b)  Before a new member entity may be added to the
  authority, the petition must be approved by a joint resolution or
  ordinance of the governing body of each member entity.
         Sec. 8364.073.  PETITION TO LEAVE AUTHORITY.  (a) A member
  entity may petition the board to leave the authority.
         (b)  If the authority determines that allowing the member
  entity to leave the authority will not impair any outstanding bonds
  or other obligations of the authority on the date the board receives
  the petition, the board may approve the petition.
         (c)  If on the date the board receives the petition the
  authority has bonds or other obligations outstanding for which the
  member entity seeking to leave is wholly or partly responsible, the
  board may approve the petition only if:
               (1)  the member entity agrees to pay its share of the
  bonds or other obligations; and
               (2)  the authority determines that as a result of that
  payment the remaining bonds or other obligations of the authority
  will not be impaired.
         [Sections 8364.074-8364.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 8364.101.  SERVICE TO MEMBER ENTITIES.  The authority
  shall serve its member entities.
         Sec. 8364.102.  GENERAL POWERS AND DUTIES.  The authority
  has only the powers and duties necessary to accomplish the purposes
  stated under Section 8364.004 for which the authority is created.
         Sec. 8364.103.  MUNICIPAL UTILITY DISTRICT POWERS AND
  DUTIES; LIMITATIONS.  (a)  Except as provided by Subsections (b) and
  (c), the authority has the powers and duties provided by the general
  law of this state, including Chapters 49 and 54, Water Code,
  applicable to municipal utility districts created under Section 59,
  Article XVI, Texas Constitution.
         (b)  The authority may not provide wastewater, drainage,
  solid waste disposal, or road facilities or services.
         (c)  The authority does not have any power that the member
  entities do not have.
         [Sections 8364.104-8364.150 reserved for expansion]
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
         Sec. 8364.151.  AUTHORITY TO ISSUE BONDS AND OTHER
  OBLIGATIONS. (a) For any authorized authority purpose, the
  authority may issue bonds or other obligations payable wholly or
  partly from revenue of the authority's water system, including
  revenue from contracts with member entities or customers.
         (b)  To provide revenue under Subsection (a), a member entity
  may make payments under a contract with the authority from any of
  the member entity's sources of revenue, including ad valorem taxes,
  impact fees, grants, sales and use taxes, and any other source.
         Sec. 8364.152.  NO TAXING POWER. The authority may not
  impose a tax.
         SECTION 2.  (a)  Not later than September 15, 2011, the
  Sonterra Municipal Utility District and the CLL Municipal Utility
  District No. 1 shall each appoint two directors to the board of
  directors of the Corn Hill Regional Water Authority under Section
  8364.051, Special District Local Laws Code, as added by this Act.
         (b)  To establish staggered three-year terms required under
  Section 8364.051, Special District Local Laws Code, as added by
  this Act, the initial directors appointed under that section shall,
  unless otherwise agreed, determine by lot which of the directors
  shall serve a one-year, two-year, or three-year term.
         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)  Any eminent domain powers granted under
  general law to the Corn Hill Regional Water Authority as created by
  this Act take 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 C, Chapter 8364, Special
  District Local Laws Code, as added by Section 1 of this Act, is
  amended by adding Section 8364.104 to read as follows:
         Sec. 8364.104.  NO EMINENT DOMAIN POWER. The authority may
  not exercise the power of eminent domain.
         (c)  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 5.  Except as provided by Section 4 of this Act:
               (1)  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; and
               (2)  if this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2360 was passed by the House on April
  7, 2011, by the following vote:  Yeas 144, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2360 on May 16, 2011, by the following vote:  Yeas 131, Nays 2,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2360 was passed by the Senate, with
  amendments, on May 10, 2011, by the following vote:  Yeas 31, Nays
  0
  .
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor