HBA-NMO C.S.H.B. 2965 76(R)BILL ANALYSIS
Office of House Bill AnalysisC.S.H.B. 2965
By: Hilbert
Natural Resources
4/12/1999
Committee Report (Substituted)
BACKGROUND AND PURPOSE
The Texas Constitution provides for the creation of certain conservation
and reclamation districts. C.S.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," "agricultural crop."
SECTION 1.03. DESCRIPTION OF BOUNDARIES. Describes the boundaries of the
authority.
SECTION 1.04. EXCLUSION OF CERTAIN TERRITORY. (a) Requires the authority,
within 60 days of petition by an incorporated municipality within the
territory of the authority for exclusion from the authority, to order the
exclusion provided that the petition meets certain conditions.
(b) Requires the authority to file for recording in the office of the
county clerk of Harris County, a copy of the order including a description
of the authority's boundaries after the territory is excluded. Provides
that immediately after the order and description are recorded , the
excluded territory is no longer a part of the authority.
(c) Provides that the excluded territory is responsible for its pro rata
share of the authority's indebtedness at the time the territory was
excluded.
SECTION 1.05. APPLICABILITY OF OTHER LAW. Provides that this Act prevails
over any inconsistent provision of general law. Prohibits this Act from
prevailing over or preempting 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 nine 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 nine 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 nine 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. 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 nine single-member
voting districts and on the first Saturday in May, 2000, hold an election
to confirm the establishment of the authority and to elect nine 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 Texas Natural Resource Conservation Commission
(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.
SECTION 2.06. ELECTION DATES. Requires election of the appropriate number
of directors to the board on the first Saturday in May in each subsequent
even-numbered year.
SECTION 2.07. COST OF ELECTION OF INITIAL PERMANENT DIRECTORS. Requires
the temporary board of directors to fund the cost of the election of
initial permanent directors 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 requiring the authority to repay the subsidence
district for those costs.
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.
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. Prohibits the fee from applying to certain wells.
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 sue to recover the
penalty in a district court in the county where the violation occurred.
Requires payment of the penalty to the authority. Requires the authority to
sue 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 sue 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, in addition to the powers granted under Section
4.01, to take certain actions relating to the acquisition, construction,
and operation of systems.
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.
Provides that the authority is not required to deposit a bond under Section
21.021(a) (relating to possession pending litigation), Property Code.
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 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 is grants it the
authority necessary to carry out the governmental function and services
specified in the interlocal contract.
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.
ARTICLE 5. NOTES, BONDS, AND TAXATION
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 source other than ad valorem taxes.
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 or on taxes imposed by the authority. Authorizes that an
obligation only be a charge on revenue pledged for the payment of the
obligation. Prohibits a tax imposed by the authority from being used to
pay any part 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 a pledge of ad
valorem taxes or of all or part of the revenue derived from any source
other than ad valorem taxes. Authorizes the authority, in 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. Prohibits bonds secured in whole or in part
by taxes from being issued until authorized at an election called and held
in compliance with Section 36.180 (Election), Water Code. 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 conservation and reclamation districts inside the
authority's boundaries if the authority project fulfills a governmental
purpose of both 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. Prohibits the project from being financed
in any part with bonds payable with revenue derived from ad valorem taxes.
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.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute differs from the original in ARTICLE 1, as follows:
Modifies proposed SECTION 1.01 by subjecting the creation of the North
Harris County Regional Water Authority (authority, rather than district, as
proposed) to a confirmation election.
Modifies proposed SECTION 1.02 by including the definitions of "authority,"
"subsidence," and "agricultural crop," and modifying the definition of
"water."
Modifies proposed SECTION 1.03 by making changes to the description of the
boundaries of the authority. Makes conforming changes.
Modifies proposed SECTION 1.04 by requiring the authority, within 60 days
of petition by an incorporated municipality within the territory of the
authority for exclusion from the authority, to order the exclusion provided
that the petition meets certain conditions, rather than authorizing the
governing body of a political subdivision within the territory of the
authority, upon meeting certain conditions and by order, to exclude from
from the authority the area inside the subdivision's territorial limits.
Makes changes to the filing procedure with the county clerk of Harris
County. Incorporates language from proposed Subsections (b) and (c) into
new Subsection (a). Creates new Subsection (b) from proposed Subsection
(d), and creates new Subsection (c) from proposed Subsection (e). Makes
conforming changes.
Modifies proposed SECTION 1.05 by adding Subsection (b) to prohibit this
Act from prevailing over or preempting any provision of Chapter 151
(Harris-Galveston Coastal Subsidence District), Water Code, or Chapter 36
(Groundwater Conservation Districts), Water Code, that is being implemented
by the subsidence district.
Modifies proposed SECTION 1.06 by making conforming changes.
The substitute differs from the original in ARTICLE 2, as follows:
Modifies proposed SECTION 2.01 by making conforming and nonsubstantive
changes.
Modifies proposed SECTION 2.02 by making conforming changes.
Modifies proposed SECTION 2.05 by providing the new title of "Confirmation
and Initial Permanent Directors' Election." Requires the temporary board
of directors to hold the election on the first Saturday in May 2000, rather
than the third Saturday in January, 2000. Provides a new Subsection (d) to
require 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 Texas Natural Resource Conservation Commission (TNRCC).
Redesignates proposed Subsections (d) and (e) as Subsections (e) and (f),
respectively. Makes conforming changes.
Modifies proposed SECTION 2.06 by making conforming changes.
Modifies proposed SECTION 2.07 by requiring the temporary board of
directors to fund the cost of the election of initial permanent directors
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
requiring the authority to repay the subsidence district for those costs.
Deletes proposed language requiring the subsidence district to pay the
costs of the election and requiring the authority to repay the subsidence
district.
The substitute differs from the original in ARTICLE 3, as follows:
Adds a new SECTION 3.02 (General Manager).
Redesignates SECTION 3.02 of the substitute original as SECTION 3.03 of the
substitute. Modifies SECTION 3.03 by setting out the duties of the general
manager. Requires the authority to pay employee bonds, rather than the
premiums on the bonds, as proposed.
The substitute differs from the original in ARTICLE 4, as follows:
Modifies proposed SECTION 4.01 by removing the provisions of Chapter 36,
Water Code, from the general powers and duties of the authority. Deletes
proposed Subsection (b) to makes conforming changes. Redesignates proposed
Subsection (c) as new Subsection (b). Modifies authorized actions of the
authority, including the authorization to administer and enforce the
provisions of this Act. Deletes proposed Subsection (d), relating to
consultation with the subsidence district, and proposed Subsection (e),
relating to state supervision of the powers and duties of the authority.
Makes conforming changes.
Modifies proposed SECTION 4.02 by requiring the board to compile its rules
in a book and make them available for use and inspection at the authority's
principal office, rather than requiring the authority to print its rules
and furnish copies of the rules to any person on written request. Makes
conforming changes.
Modifies proposed SECTION 4.03 by specifying that the fees and changes that
the authority is authorized to collect are for the fulfillment of the
authority's regulatory obligations. Adds Subsections (b), (c), (d), and (e)
regarding the establishment of fees. Makes conforming changes.
Redesignates proposed SECTION 4.06 as SECTION 4.04. Modifies this section
by not including a person who violates a permit among those subject to
civil penalty or injunction. Makes conforming changes. Deletes proposed
SECTION 4 (Inspections and Investigations)
Redesignates proposed SECTION 4.08 as SECTION 4.05. Modifies this section
by deleting provision providing that water supply plans must be consistent
with standards adopted by TNRCC. Makes conforming changes. Deletes
proposed SECTION 4.05 (HEARING AND ORDER).
Redesignates proposed SECTION 4.09 as SECTION 4.06. Modifies this section
by removing authority specific authorization to provide wholesale water
services. Makes nonsubstantive and conforming changes.
Redesignates proposed SECTION 4.11 as SECTION 4.07. Deletes proposed
SECTION 4.07 (Judicial Review).
Redesignates proposed SECTION 4.12 as SECTION 4.08. Makes conforming
changes.
Redesignates proposed SECTION 4.13 as SECTION 4.09. Modifies this section
by authorizing the authority to contract for water rights in addition to
water. Makes nonsubstantive, conforming, and corrective changes.
Adds a new SECTION 4.10 (Cooperation With and Assistance of Other
Governmental Agencies). Deletes proposed SECTION 4.10 (System Contracts).
Redesignates proposed SECTION 4.14 as SECTION 4.11. Modifies this section
by authorizing the authority to accept, rather than accept and use, as
proposed, a gift or grant from money collected by the subsidence district
under Chapter 151 (Harris-Galveston Coastal Subsidence District), rather
than 36 (Groundwater Conservation Districts), Water Code. Provides that
this authorization is in addition to the authorization provided in Section
49.229 (Grants and Gifts), Water Code.
Adds SECTION 4.12 (Expenditures).
The substitute differs from the original in ARTICLE 5, as follows:
Modifies proposed SECTION 5.01 by making conforming changes.
Modifies proposed SECTION 5.02 by removing Section 36.171(Issuance of Bonds
and Notes), Water Code, as a section that does not apply to bonds or note
issued by the authority. Makes conforming changes.
Modifies proposed SECTION 5.03 by making a conforming change.
Modifies proposed SECTION 5.04 by making a conforming change.
Modifies proposed SECTION 5.05 by deleting "conservation and reclamation"
from the title to yield "Funding by Other Districts." Makes conforming and
nonsubstantive changes.
Redesignates proposed ARTICLE 7 as ARTICLE 6. Deletes proposed ARTICLE 6
(Competitive Proposals and Contracts).
Redesignates proposed SECTIONS 6.01 and 6.02 as SECTIONS 7.01 and 7.02,
respectively.