HB4820 - Relating to the issuance of obligations by certain water districts bordering certain counties during a disaster declaration.

  89R28643 TYPED     By: Lopez of Cameron, Louderback, Lozano, H.B. No. 4820       Manuel, Phelan     Substitute the following for H.B. No. 4820:     By:  Lambert C.S.H.B. No. 4820       A BILL TO BE ENTITLED   AN ACT   relating to the issuance of obligations by certain water districts   bordering certain counties during a disaster declaration.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 49.153, Water Code, is amended by   amending Subsections (c) and (e), and adding subsections (f), (g)   and (h) to read as follows:          (c)  Except as provided by Subsection (e) and (f) , a district   may not execute a note for a term longer than three years unless the   commission issues an order approving the note.          (d)  This section does not apply to special water   authorities.          (e)  Subsection (c) does not apply to:                (1)  a note issued to and approved by:                      (A)  the Farmers Home Administration;                      (B)  the United States Department of Agriculture;                      (C)  the Texas Water Development Board;                      (D)  the North American Development Bank; or                      (E)  a federally chartered instrumentality of the   United States authorized under 12 U.S.C. Section 2128(f) to provide   financing for water and waste disposal facilities, provided that   the district that executes the note is located wholly in a county   that:                            (i)  does not contain a municipality that   has a population of more than 750,000; and                            (ii)  is not adjacent to a county described   by Subparagraph (i); or                (2)  a district described by Section 49.181(h) . ; or                 (3)     districts whose territory is located wholly within   first tier coastal counties, as defined by Section 2210.003,   Insurance Code, subject to the requirements of Subsection (f).           (f)     Notwithstanding any other law or limitations provided   in this Section, a district described in subsection (e)(3) may   issue notes during or prior to a disaster pursuant to the terms of a   note authorization provided that a certified copy of the note   authorization and all proceedings related to the issuance of notes   have been sent to the attorney general for approval in accordance   with Section 49.184. If a disaster declaration is made, a district   described in subsection (e)(3) may issue notes pursuant to this   Section beginning on the date of the disaster declaration and   continuing for the duration specified in the note authorization or   until the disaster declaration expires, whichever is later. Any   notes issued pursuant to this Section shall be incontestable in any   court or other forum, for any reason, and shall be valid and binding   obligations in accordance with their terms for all purposes.           (g)     For purposes of this Section, the term note shall   include commercial paper notes if the terms of such notes meet the   requirements of Section 2256.013(1), Government Code.           (h)     For purposes of this Section "disaster declaration"   means declaration of a state of disaster or emergency made by the   president of the United States for the state or any portion of the   district's territory, or a declaration of a state of disaster is   made pursuant to Chapter 418, Government Code, for the entire state   or any portion of the district's territory, and any amendment,   modification, or extension of the declaration.          SECTION 3.  Section 49.154, Water Code, is amended by   amending Subsection (d) to read as follows:          (d)   Except for instances in which a disaster declaration as   described by 49.153(h) is in effect, D districts required to seek   commission approval of bonds must have an application for such   approval on file with the commission prior to the issuance of bond   anticipation notes or tax anticipation notes. If a disaster   declaration is made, a district described in 49.153(e)(3) may issue   bond anticipation notes or tax anticipation notes as described by   subsection (b) beginning on the date of the disaster declaration   and continuing for the duration of the disaster declaration.          SECTION 4.  Section 49.181, Water Code, is amended by   amending Subsection (h) to read as follows:          (h)  This section does not apply to:                (1)  a district if:                      (A)  the district's boundaries include one entire   county;                      (B)  the district was created by a special Act of   the legislature and:                            (i)  the district is located entirely within   one county;                            (ii)  the district is located entirely   within one or more home-rule municipalities;                            (iii)  the total taxable value of the real   property and improvements to the real property zoned by one or more   home-rule municipalities for residential purposes and located   within the district does not exceed 25 percent of the total taxable   value of all taxable property in the district, as shown by the most   recent certified appraisal tax roll prepared by the appraisal   district for the county; and                            (iv)  the district was not required by law to   obtain commission approval of its bonds before the effective date   of this section;                      (C)  the district is a special water authority;                      (D)  the district is governed by a board of   directors appointed in whole or in part by the governor, a state   agency, or the governing body or chief elected official of a   municipality or county and does not provide, or propose to provide,   water, sewer, drainage, reclamation, or flood control services to   residential retail or commercial customers as its principal   function;                      (E)  the district on September 1, 2003:                            (i)  is a municipal utility district that   includes territory in only two counties;                            (ii)  has outstanding long-term   indebtedness that is rated BBB or better by a nationally recognized   rating agency for municipal securities; and                            (iii)  has at least 5,000 active water   connections; or                      (F)  the district:                            (i)  is a conservation and reclamation   district created under Section 59, Article XVI, Texas Constitution,   that includes territory in at least three counties; and                            (ii)  has the rights, powers, privileges,   and functions applicable to a river authority under Chapter 30; or                       (G)     the district is a district described by   49.153(e)(3) if:                             (i)     a declaration of a state of disaster or   emergency, and any amendment, modification, or extension of said   declaration, made by the president of the United States for the   state or any portion of the district's territory, is in effect; or                             (ii)     a declaration of a state of disaster,   and any amendment, modification, or extension of said declaration,   made pursuant to Chapter 418, Government Code, for the entire state   or any portion of the district's territory, is in effect.                (2)  a public utility agency created under Chapter 572,   Local Government Code, any of the public entities participating in   which are districts if at least one of those districts is a district   described by Subdivision (1)(E).          SECTION 5.  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 necessary vote, this Act takes effect   September 1, 2025.