HB 4820

relating to the issuance of obligations by certain water districts
bordering the Gulf of America and an international border during a
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)
(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
(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
(i)  does not contain a municipality that
has a population of more than 750,000; and
(ii)  is not adjacent to a county described
(2)  a district described by Section 49.181(h).; or
(3)  a district entirely within a county bordering both
the Gulf of America and an international border 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,Ddistricts 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:
(A)  the district's boundaries include one entire
(B)  the district was created by a special Act of
(i)  the district is located entirely within
(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
(iv)  the district was not required by law to
obtain commission approval of its bonds before the effective date
(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
(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
(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
(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