Palangana Energy District Bill Never Says Who Appoints The Board

The text as introduced · 1,464 words

By: Guillen
H.B. No. 5524

A BILL TO BE ENTITLED

AN ACT

relating to creation of the Palangana Energy District; granting a

limited power of eminent domain; providing authority to issue

bonds; providing authority to impose assessments, fees, and taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle X, Special District Local Laws Code, is

amended by adding Chapter 11012 to read as follows:

CHAPTER 11012. THE PALANGANA ENERGY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 11012.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "Bond" means bond or note.

(3) "District" means the Palangana Energy District.

(4) "Director" means a member of the board.

Sec. 11012.002. APPLICABILITY. (a) This chapter only

applies to a county with a population of more than 8,000 but less

than 12,000 that:

(1) has the longest state highway passing through it;

(2) is located within 50 miles of the Texas-Mexico

Border;

Sec. 11012.003. FINDINGS OF PUBLIC PURPOSE AND BENEFIT.

(a) The district is created to serve a public use and benefit.

(b) The creation of the district is necessary to accomplish

essential public functions under the constitution of this state

that enhance energy security, reliability, and resiliency in an

environmentally responsible manner; to promote and diversify

economic development and commerce; and to conserve, secure, and

develop the natural energy resources of this state for the benefit

of the South Texas region and this state.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 11012.005. DIRECTORS. (a) The district is governed by

a board of directors consisting of at least 7 members.

(b) The board is responsible for the management, operation,

and control of the district.

(c) The board by rule shall:

(1) establish the number of directors of the district;

and

(2) establish that directors serve staggered

four-year terms.

Sec. 11012.006. ELIGIBILITY TO SERVE AS DIRECTOR. (a) To

be eligible to serve as a director, a person must be at least 18

years of age.

(b) To be eligible to serve as a director, a person may not:

(1) hold another public office; and

(2) be an officer or employee of the district.

(c) A director is eligible for reappointment.

Sec. 11012.007. VACANCIES. Any vacancy occurring on the

board shall be filled for the unexpired term by appointment in the

manner in which the vacating director was appointed.

Sec. 11012.008. REMOVAL OF DIRECTOR. A director may be

removed from office at any time, with or without cause.

Sec. 11012.009. OFFICERS. At the first meeting of the board

after May 1 of each year, the board shall elect officers for the

district, including a chair, vice chair, secretary, and treasurer.

Sec. 11012.010. MEETINGS AND ACTIONS OF BOARD; QUORUM.

(a) The board may meet as many times each year as the board

considers appropriate.

(b) A majority of the membership of the board constitutes a

quorum at a meeting of the board.

(c) A concurrence of a majority of the directors present and

voting is sufficient for transacting any business of the district

unless other applicable law, or the district by rule, requires a

concurrence of a greater number of directors for a specific type of

decision.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 11012.011. GENERAL POWERS AND DUTIES. The district

has the powers and duties necessary to accomplish the purposes for

which the district is created. The district may:

(1) acquire, purchase, own, hold, lease, construct,

operate, repair, improve, maintain, or extend a groundwater well or

other source of water supply, water and wastewater works, drainage,

road improvements, salt cavern storage facilities, facilities that

generate electricity, and any type of transmission line or

supporting facilities;

(3) finance any purchase or acquisition through a

bond, note, or other obligation or through a lease-purchase

agreement; and

(4) sell, lease, convey, or otherwise dispose of any

right, interest, or property the district considers to be

unnecessary for the efficient operation or maintenance of the

district's facilities.

Sec. 11012.012. EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain to acquire a fee simple or

other interest in property if the interest is necessary for the

district to exercise the rights or authority conferred by this

chapter.

(b) The district must exercise the power of eminent domain

in the manner provided by Chapter 21, Property Code.

Sec. 11012.013. CONTRACTS. The district may contract with

any person to carry out a power authorized by this chapter.

Sec. 11012.014. COOPERATIVE CONTRACTS. The district may

enter into an interlocal contract with a local government under

Chapter 791, Government Code, to carry out a power of the district.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 11012.015. GIFTS, GRANTS, LOANS, AND OTHER FUNDS. The

district may apply for, accept, receive, and administer gifts,

grants, loans, and other funds available from any source.

Sec. 11012.016. AUTHORITY TO ISSUE BONDS, NOTES, AND OTHER

OBLIGATIONS. The district may issue bonds, notes, or other

obligations payable wholly or partly from ad valorem taxes, impact

fees, revenue, contract payments, grants, sales and use taxes,

other district money, or any combination of those sources to pay for

any authorized district purpose.

Sec. 11012.017. TAXES FOR BONDS. At the time the district

issues bonds payable wholly or partly from ad valorem taxes, the

board shall provide for the annual imposition of continuing a

direct ad valorem tac, without limit to rate or amount, while all or

part of the bonds are outstanding as required and in the manner

provided by Chapter 49 of the Water Code.

Sec. 11012.018. BONDS, NOTES, AND OTHER OBLIGATIONS EXEMPT

FROM TAXATION. A bond, note, or other obligation issued under this

chapter, a transaction related to the bond, note, or other

obligation, the interest on the bond, note, or other obligation,

and the profit from the sale of the bond, note, or other obligation

are exempt from taxation by this state or a political subdivision of

this state.

SUBCHAPTER E. ASSESSMENTS

Sec. 11012.019. PETITION REQUIRED FOR FINANCING SERVICES

AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a

service or improvement project with assessments under this chapter

unless a written petition requesting that service or improvement

has been filed with the board.

(b) A petition filed under Subsection (a) must be signed by

the owners of a majority of the assessed value of real property in

the district subject to assessment according to the most recent

certified tax appraisal roll for the county.

Sec. 11012.020. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)

The board by resolution may impose and collect an assessment for any

purpose authorized by this chapter in all or any part of the

district.

(b) An assessment, a reassessment, or an assessment

resulting from an addition to or correction of the assessment roll

by the district, penalties and interest on an assessment or

reassessment, an expense of collection, and reasonable attorney's

fees incurred by the district:

(1) are a first and prior lien against the property

assessed;

(2) are superior to any other lien or claim other than

a lien or claim for county, school district, or municipal ad valorem

taxes; and

(3) are the personal liability of and a charge against

the owners of the property even if the owners are not named in the

assessment proceedings.

(c) The lien is effective from the date of the board's

resolution imposing the assessment until the date the assessment is

paid. The board may enforce the lien in the same manner that the

board may enforce an ad valorem tax lien against real property.

(d) The board may make a correction to or deletion from the

assessment roll that does not increase the amount of assessment of

any parcel of land without providing notice and holding a hearing in

the manner required for additional assessments.

SUBCHAPTER F. TAXES AND BONDS

Sec. 11012.021. TAX ELECTION REQUIRED. The district must

hold an election in the manner provided by Chapter 49, Water Code,

to obtain voter approval before the district may impose an ad

valorem tax.

Sec. 11012.022. OPERATION AND MAINTENANCE TAX. (a) If

authorized by a majority of the district voters voting at an

election, the district may impose an operation and maintenance tax

on taxable property in the district in the manner provided by

Section 49.107, Water Code, for any district purpose, including to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b) The board shall determine the operation and maintenance

tax rate. The rate may not exceed the rate approved at the

election.

SECTION 2. 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 vote necessary for immediate effect, this

Act takes effect September 1, 2025.