HBA-NMO H.B. 2965 76(R)BILL ANALYSIS
Office of House Bill AnalysisH.B. 2965
By: Hilbert
Natural Resources
8/5/1999
Enrolled
BACKGROUND AND PURPOSE
The Texas Constitution provides for the creation of certain conservation
and reclamation districts. H.B. 2965 creates the North Harris County
Regional Water Authority, subject to a confirmation election.
RULEMAKING AUTHORITY
It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency or institution.
SECTION BY SECTION ANALYSIS
ARTICLE 1. GENERAL PROVISIONS.
SECTION 1.01. CREATION. Creates a regional water authority, known as the
North Harris County Regional Water Authority (authority), subject to
confirmation election held under SECTION 2.05 of this Act. Provides that
the authority is a governmental agency and a body politic and corporate.
Provides that the authority is created under and is essential to accomplish
the purposes provided by Section 59, Article XVI, Texas Constitution.
SECTION 1.02. DEFINITIONS. Defines "authority," "board," "commission,"
"director," "local government," "person," "subsidence district," "system,"
"water," "subsidence," and "agricultural crop."
SECTION 1.03. DESCRIPTION OF BOUNDARIES. Describes the boundaries of the
authority.
SECTION 1.04. EXCLUSION OF CERTAIN TERRITORY. Authorizes a certain
district to petition for exclusion of its territory from the authority's
territory. Requires the board, before the 61st day after the date the
authority receives the petition, to grant the petition and order the
territory excluded if the petition meets certain stipulations. Requires
the board, if it grants the petition, to file for recording in the office
of the county clerk of Harris County a copy of the order and a description
of the authority's boundaries as they exist after the exclusion of the
territory. Provides that the order excluding the territory is effective
immediately after the order and description are recorded.
SECTION 1.05. APPLICABILITY OF OTHER LAW. Provides that this Act prevails
over any inconsistent provision of general law. Provides that this Act
does not prevail over or preempt any provision of Chapter 151
(Harris-Galveston Costal Subsidence District), Water Code, or Chapter 36
(Groundwater Conservation Districts), Water Code, that is being implemented
by the subsidence district.
SECTION 1.06. FINDING OF BENEFIT. Sets forth finding of benefit.
ARTICLE 2. DIRECTORS
SECTION 2.01. BOARD OF DIRECTORS. Provides that the authority is governed
by a board, consisting of five directors. Requires the board to appoint a
person to fill a vacancy in the office of director until the next election
for directors. Requires the person elected to fill the position to serve
only for the remainder of the unexpired term, if the position is not
scheduled to be filled at the election. Provides that a person, to be
eligible to serve as director, must be a qualified voter in the voting
district from which the person is elected or appointed.
SECTION 2.02. METHOD OF ELECTION OF DIRECTORS. Requires one director to be
elected from each of five single-member voting districts by the qualified
voters of the voting district. Requires a person to indicate on the
person's application for a place on the ballot the voting district that the
person seeks to represent. Requires the board to redraw the single-member
voting districts as soon as practicable after each federal census and any
change in authority boundaries. Requires the election of five new
directors, at the first election after each time the voting districts are
redrawn. Requires the newly elected directors to draw lots regarding
staggered terms. Provides that Subchapter C (Write-in Candidate in City
Election), Chapter 146, Election Code, applies to the consideration of
voters for a write-in candidate for initial permanent director or permanent
director as if the authority were a municipality.
SECTION 2.03. SERVICE OF DIRECTORS. Provides that temporary directors serve
until the initial permanent directors are elected under SECTION 2.05 of
this Act and that initial permanent directors serve until permanent
directors are elected under SECTION 2.06 of this Act. Sets forth the terms
of the directors.
SECTION 2.04. TEMPORARY DIRECTORS. Provides that the temporary board of
directors is composed of three individuals appointed by the Texas Natural
Resource Conservation Commission (TNRCC). Requires the temporary directors
who have qualified to appoint a person to fill the vacancy, if a temporary
director fails to qualify for office. Requires TNRCC to appoint the
necessary number of persons to fill all vacancies on the board, if at any
time there are fewer than two qualified directors, or if the temporary
directors cannot agree on the appointment. Provides that a temporary
director is not eligible to be elected under SECTION 2.05 of this Act.
SECTION 2.05. CONFIRMATION AND INITIAL PERMANENT DIRECTORS' ELECTION.
Requires the temporary board of directors to establish five single-member
voting districts and on the first uniform election date of the calendar
year 2000, hold an election to confirm the establishment of the authority
and to elect five initial permanent directors. Authorizes a person who
desires to be a candidate for the office of initial permanent director to
file an application with the temporary board to have the candidate's name
printed on the ballot. Requires the temporary board of directors to have
placed on the ballot certain provisions for the confirmation and initial
permanent directors' election. Requires the temporary board of directors,
if the authority is confirmed and at the time the vote is canvassed, to
declare election winners and include the results of the initial director's
election in the authority's report to the TNRCC. Requires the initial
permanent directors to draw lots regarding staggered terms. Provides that
Section 41.001(a) (Uniform Election Dates), Election Code, does not apply
to the confirmation and initial permanent directors' election held under
this section. Requires the temporary board of directors to draft language
for the ballot proposition used for the confirmation election. Provides
that the ballot proposition must clearly and completely explain certain
information.
SECTION 2.06. ELECTION DATES. Requires election of the appropriate number
of directors to the board on the first uniform election date of the
calendar year in each subsequent even-numbered year.
SECTION 2.07. COST OF ELECTION. Requires the temporary board of directors
to fund the cost of the confirmation and initial permanent directors
election if it is able to find a reasonable means of funding the election.
Authorizes the temporary board and the board of directors of the subsidence
district to execute an agreement requiring the subsidence district to pay
the costs of the election that could not be funded by the district and
requires the authority to repay the subsidence district for those costs
within a reasonable period.
ARTICLE 3. ADMINISTRATIVE PROVISIONS
SECTION 3.01. MEETINGS AND ACTIONS OF BOARD. Requires the board to meet at
least four times each year and authorizes it to meet at any other time
considered appropriate.
SECTION 3.02. GENERAL MANAGER. Requires the board to employ a general
manager as the chief administrative officer of the authority. Authorizes
the board the delegate to the general manager full authority to manage and
operate the affairs of the authority subject only to the orders of the
board. Sets forth the duties of the general manager. Requires the board
to determine the terms of office and employment and the compensation to be
paid to the general manager, and authorizes that the general manager be
discharged by majority vote of the board.
SECTION 3.03. EMPLOYEE BONDS. Requires the general manager to employ all
persons necessary for the proper handling of the business and operation of
the authority and authorizes the general manager to employ attorneys,
bookkeepers, engineers, and other expert and specialized personnel
considered necessary. Requires the general manager to determine
compensation to be paid by the authority. Authorizes the general manager
to discharge employees of the authority. Requires the general manager and
each employee or contractor of the authority who is charged with the
collection, custody, or payment of any money of the authority to execute a
fidelity bond in an amount determined by the board and in a form and with a
surety approved by the board. Requires the authority to pay for any bonds
required under this section.
ARTICLE 4. POWERS AND DUTIES
SECTION 4.01. GENERAL POWERS AND DUTIES. Authorizes the authority to
exercise all of the rights, privileges, authority, functions, and duties
necessary and convenient to accomplish the purposes of this Act, including
those provided by 49 (Provisions Applicable to All Districts), Water Code.
Authorizes the authority to take certain enumerated actions, including the
administration and enforcement of the provisions of this Act. Provides
that 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 TNRCC. Requires the authority to exercise its
rights, powers, privileges, and authority in a manner that will promote
regionalization of water treatment and distribution.
SECTION 4.02. AUTHORITY RULES. Requires the authority to adopt certain
rules reasonably required to implement this Act, including rules governing
procedure and practice before the board. Requires the board to compile its
rules in a book and make them available for use and inspection at the
authority's principal office.
SECTION 4.03. FEES AND CHARGES. Authorizes the authority to establish fees
and charges necessary to enable the authority to fulfill the authority's
regulatory obligations under this Act. Authorizes the authority to charge
against the owner of a well within the authority's boundaries a fee on the
amount of water pumped from the well. Sets forth the procedure for
determining the fee. Requires the board to establish the rate of a fee
under this subsection only after a special meeting on the fee. Prohibits
the board from applying the fee to certain wells. Provides that fees the
board establishes must be sufficient to meet certain conditions.
Authorizes the temporary board to set fees to pay for initial operation of
the authority and the election of the initial permanent board, until such
time as the permanent board has been elected.
SECTION 4.04. CIVIL PENALTY; INJUNCTION. Provides that a person who
violates a rule or order of the authority is subject to a civil penalty of
not less than $50 and not more than $5,000 for each violation or each day
of a continuing violation. Authorizes the authority to bring an action to
recover the penalty in a district court in the county where the violation
occurred. Requires payment of the penalty to the authority. Authorizes the
authority to 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. Authorizes the court to 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. Authorizes the authority to bring an
action for a civil penalty and injunctive relief in the same proceeding.
SECTION 4.05. WATER SUPPLY PLANS. Requires the authority, by rule, as
needed but not less frequently than every five years, to develop, prepare,
revise, and adopt comprehensive water supply plans for various areas of the
authority. Sets forth requirements of the plan.
SECTION 4.06. ACQUISITION, CONSTRUCTION, AND OPERATION OF SYSTEMS.
Authorizes the authority to take certain actions relating to the
acquisition, construction, and operation of systems. Requires the
authority to give persons outside the authority's boundaries, including the
city of Houston, the option to contract for available excess capacity of
the authority's water treatment or supply system or, before construction of
such a facility begins, for additional capacity of the system. Provides
that the authority must offer a contract that would enable the person to
pay for the excess capacity or additional capacity in accordance with the
person's pro rata share of the capital investment and operational and
maintenance costs for providing the excess capacity or additional capacity.
SECTION 4.07. SALE OR REUSE OF WATER OR BY-PRODUCT. Authorizes the
authority to store, sell, or reuse water or any by-product from the
authority's operation.
SECTION 4.08. EMINENT DOMAIN. Authorizes the authority to exercise the
power of eminent domain under Chapter 21 (Eminent Domain), Property Code,
to acquire property of any kind to further authorize authority purposes.
Prohibits the authority from exercising the power of eminent domain outside
of the boundaries of the authority.
SECTION 4.09. CONTRACTS. Authorizes the authority to enter into a contract
with any person or legal entity regarding the performance of any purpose or
function of the authority to accomplish a purpose or function of the
authority. Authorizes a contract to be of unlimited duration. Authorizes
the authority to purchase an interest in a project used for a purpose or a
function of the authority. Authorizes the authority to contract for certain
purposes. Authorizes the authority to purchase surplus property from this
state, the United States, or another public entity through a negotiated
contract without bids. Requires an officer, agent, or employee of the
authority who is financially interested in a contract of the type
described in a surplus property contract to disclose the interest to the
board before the board votes on the acceptance of the contract.
SECTION 4.10. COOPERATION WITH AND ASSISTANCE OF OTHER GOVERNMENTAL
ENTITIES. Authorizes the board, in implementing this Act, to cooperate
with and request the assistance of the Texas Water Development Board,
TNRCC, the U.S. Geological Survey, the subsidence district, other local
governments, and other agencies of the U.S. and this state in implementing
this Act. Authorizes the subsidence district to enter into an interlocal
contract with the authority to carry out the authority's purposes and
grants it the authority necessary to carry out the governmental function
and services specified in the interlocal contract. Requires the board to
coordinate with the city of Houston to develop an interregional plan for a
system to distribute treated surface water in an economical and efficient
manner.
SECTION 4.11. GIFTS AND GRANTS. Authorizes the authority to accept a gift
or grant from money collected by the subsidence district under Chapter 151
(Harris-Galveston Coastal Subsidence District), Water Code, to fund a water
treatment or supply system. Provides that this authorization is in
addition to the authorization provided in Section 49.229 (Gifts and
Grants), Water Code.
SECTION 4.12. EXPENDITURES. Authorizes that the authority's money be
disbursed only by check, draft, order, or other instrument. Sets forth
procedure for disbursement.
SECTION 4.13. TAXATION. Prohibits the authority from imposing an ad
valorem tax.
ARTICLE 5. NOTES AND BONDS
SECTION 5.01. REVENUE NOTES. Authorizes the board, without an election, to
borrow money on negotiable notes of the authority to be paid solely from
the revenue derived from any legal source. Authorizes that the notes be
first or subordinate lien notes at the board's discretion. Prohibits an
obligation from being a charge on the property of the authority.
Authorizes that an obligation only be a charge on revenue pledged for the
payment of the obligation.
SECTION 5.02. BONDS. Authorizes the authority, to carry out a power or
authority conferred by this Act, to issue bonds secured by all or part of
the revenue derived from any source. Authorizes the authority, in issuing
or securing a bond or note of the authority, to exercise any power of an
issuer under Chapter 656, Acts of the 68th Legislature, Regular Session,
1983 (Article 717q, V.T.C.S.). Authorizes the authority to conduct a
public, private, or negotiated sale of the bonds. Provides that the
authority's bonds must conform to certain standards. Authorizes that an
authority bond be secured by an indenture of trust with a corporate
trustee. Authorizes the authority to issue bonds in more than one series
as required for carrying out the purposes of this Act. Authorizes the
authority, in issuing bonds secured by the authority's ad valorem taxes or
by revenue, to reserve the right to issue additional bonds secured by the
authority's ad valorem taxes or by revenue that are on a parity with or are
senior or subordinate to the bonds issued earlier. Authorizes that the
resolution authorizing the bonds or the trust indenture securing the bonds
specify additional provisions that constitute a contract between the
authority and its bondholders. Authorizes the board to provide for
additional bond provisions and for a corporate trustee or receiver to take
possession of the authority's facilities if the authority defaults.
Provides that Section 49.181 (Authority of Commission Over Issuance of
District Bonds), Water Code, does not apply to bonds or notes issued by the
authority.
SECTION 5.03. REFUNDING BONDS. Provides that the provisions of this Act
that apply to the authority's issuance of other bonds, their security, and
the remedies of the holders apply to refunding bonds.
SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. Requires the authority to
submit the bonds and the record relating to their issuance to the attorney
general for approval, after the authority authorizes bonds. Requires the
authority to submit to the attorney general a copy of the contract and the
proceedings of the municipality or other governmental agency, authority, or
district authorizing the contract, if the bonds are secured by a pledge of
the proceeds of a contract between the authority and a municipality or
other governmental agency, authority, or district. Requires the attorney
general to approve the bonds and contracts, if the attorney general finds
that the bonds have been authorized and each contract has been made in
accordance with the constitution and laws of this state. Requires the
bonds, on approval, to be registered by the comptroller.
SECTION 5.05. FUNDING BY OTHER DISTRICTS. Requires the authority to
develop a procedure for cooperatively funding an authority project with
money from other districts inside the authority's boundaries if the
authority project fulfills a governmental purpose of both the authority and
other districts. Requires the authority by a certain date to provide
written notice of the authority's intention to issue the bonds to each
district inside the authority's boundaries that may be benefited or
affected by the project. Provides that the notice must include certain
information related to the value of the bonds planned to be issued.
Provides that the schedule must be prepared by means of a formula certified
by the authority engineer. Authorizes a district to enter into a certain
contract with the authority. Requires the contract to be executed before
the authority issues the bonds. Requires the authority to take certain
actions as provided by the contract.
ARTICLE 6. MISCELLANEOUS PROVISIONS
SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. Sets forth
certain findings related to procedural requirements.
SECTION 6.02. Emergency clause.
Effective date: upon passage.