By: Yost H.B. No. 1267 73R3007 CBH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the administration, powers, duties, operations, 1-3 financing, and organization of solid waste management districts; 1-4 granting the power of eminent domain and the authority to issue 1-5 bonds; authorizing a tax. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 SECTION 1. Title 5, Health and Safety Code, is amended by 1-8 adding Subtitle E to read as follows: 1-9 SUBTITLE E. SOLID WASTE MANAGEMENT DISTRICTS 1-10 CHAPTER 411. PROVISIONS APPLICABLE TO ALL DISTRICTS 1-11 SUBCHAPTER A. GENERAL PROVISIONS 1-12 Sec. 411.001. DEFINITIONS. In this subtitle: 1-13 (1) "Board" means the board of directors of a 1-14 district. 1-15 (2) "Commission" means the Texas Natural Resource 1-16 Conservation Commission. 1-17 (3) "Director" means a member of the board. 1-18 (4) "District" means a solid waste management district 1-19 governed by this chapter. 1-20 (5) "Local government" means an incorporated 1-21 municipality, a county, or a water or other special district or 1-22 authority acting under Article III, Sections 52(b)(1) and (2), or 1-23 Article XVI, Section 59, of the Texas Constitution. 1-24 (6) "Municipal solid waste" has the meaning assigned 2-1 by Section 361.003. 2-2 (7) "Outside the district" means the area contained in 2-3 counties adjacent to a district. 2-4 (8) "Resource recovery facility" means a facility used 2-5 to store, handle, sort, bail, recycle, process, and recover solid 2-6 waste. 2-7 (9) "Sewage" has the meaning assigned by Section 2-8 366.002. 2-9 (10) "Solid waste" has the meaning assigned by Section 2-10 361.003. 2-11 (11) "Solid waste management system" means a system 2-12 for controlling all aspects of the collection, handling, 2-13 transportation, processing, recovery, and disposal of solid waste. 2-14 (12) "Water" means groundwater, percolating or 2-15 otherwise, lakes, bays, ponds, springs, rivers, streams, creeks, 2-16 and all other bodies of surface water, natural or artificial, that 2-17 are wholly or partially within a district. 2-18 (13) "Water pollution" means the alteration of the 2-19 physical, chemical, or biological quality of or the contamination 2-20 of water that renders the water harmful, detrimental, or injurious 2-21 to humans, animal life, vegetation, or property, or to public 2-22 health, safety, or welfare, or that impairs the usefulness or the 2-23 public enjoyment of the water for any lawful or reasonable purpose. 2-24 Sec. 411.002. APPLICATION OF OTHER LAWS. A district 2-25 governed by this chapter is subject to: 2-26 (1) regulation under Chapter 361; and 2-27 (2) the applicable provisions of the: 3-1 (A) Election Code; 3-2 (B) Local Government Code; 3-3 (C) Property Code; 3-4 (D) Water Code; 3-5 (E) open meetings law, Chapter 271, Acts of the 3-6 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's 3-7 Texas Civil Statutes); and 3-8 (F) open records law, Chapter 424, Acts of the 3-9 63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's 3-10 Texas Civil Statutes). 3-11 Sec. 411.003. SUPERVISION OF DISTRICT. A district is 3-12 subject to the continuing right of supervision by the commission in 3-13 accordance with state law. 3-14 (Sections 411.004-411.010 reserved for expansion 3-15 SUBCHAPTER B. CREATION OF DISTRICT 3-16 Sec. 411.011. DISTRICT CREATED BY LEGISLATIVE ACT. (a) The 3-17 legislature by special law may create a solid waste management 3-18 district under Article XVI, Section 59, of the Texas Constitution. 3-19 The district is a governmental entity and a body politic and 3-20 corporate. 3-21 (b) The legislature shall provide for the appointment of 3-22 seven temporary directors for a district. 3-23 Sec. 411.012. CREATION AND DIRECTORS' ELECTION. (a) Within 3-24 30 days after all temporary directors have been appointed and have 3-25 qualified, the temporary directors shall meet and shall call an 3-26 election to be held within the boundaries of the proposed district 3-27 to approve the creation of the district and to elect permanent 4-1 directors. A person who desires to be a candidate for the office 4-2 of permanent director may file an application with the temporary 4-3 board to have the candidate's name printed on the ballot as 4-4 provided by Section 411.023. 4-5 (b) In the order calling the election, the temporary 4-6 directors shall designate election precincts and polling places for 4-7 the election. In designating the polling places, the temporary 4-8 directors shall consider the needs of all voters for conveniently 4-9 located polling places. 4-10 (c) The temporary directors shall publish notice of the 4-11 election at least one time in a newspaper or newspapers that have 4-12 general circulation within the boundaries of the proposed district. 4-13 (d) The ballot for the election must be printed to provide 4-14 for voting for or against the proposition: "The creation of the 4-15 _______ Solid Waste Management District." If the district levies a 4-16 maintenance tax for payment of its expenses, the proposition shall 4-17 include the following language: "and the levy of a maintenance tax 4-18 at a rate not to exceed _______ (insert amount not to exceed 50 4-19 cents) cents for each $100 of assessed valuation." In addition, 4-20 the temporary directors shall have the names of the seven persons 4-21 serving as temporary directors placed on the ballot together with 4-22 the name of any candidate filing for the office of director as 4-23 provided by Subsection (a) and blank spaces to write in the names 4-24 of other persons. 4-25 (e) Immediately after the election, the presiding judge of 4-26 each polling place shall deliver the returns of the election to the 4-27 temporary board, and the board shall canvass the returns and 5-1 declare the result. 5-2 (f) If a majority of the votes cast at the election favor 5-3 the creation of the district, the temporary board shall declare the 5-4 district created, enter the results in its minutes, and declare the 5-5 seven persons who receive the most votes to be elected as permanent 5-6 directors. If a majority of the votes cast at the election are 5-7 against the creation of the district, the temporary board shall 5-8 declare the district defeated and shall enter the results in its 5-9 minutes. The temporary board shall file a copy of the election 5-10 results with the commission. 5-11 (g) If the proposition to create a district is defeated, an 5-12 election to create a district in the area may not be called before 5-13 the first anniversary of the date on which the election on the 5-14 proposition was held. 5-15 Sec. 411.013. BOND AND TAX PROPOSITION. (a) At an election 5-16 to create a district, the temporary directors may include a 5-17 proposition for the issuance of bonds, the levy of taxes to retire 5-18 all or part of the bonds, and the levy of a maintenance tax at a 5-19 rate not to exceed 50 cents on each $100 of assessed valuation. 5-20 (b) The board shall include in any bond and tax proposition 5-21 the maximum amount of bonds to be issued and their maximum maturity 5-22 date. 5-23 (Sections 411.014-411.020 reserved for expansion 5-24 SUBCHAPTER C. ADMINISTRATIVE PROVISIONS 5-25 Sec. 411.021. ELECTION OF DIRECTORS. (a) On the first 5-26 Saturday in May of the second year after the year in which a 5-27 district is authorized to be created at a confirmation election, an 6-1 election shall be held in the district for the election of three 6-2 directors who shall each serve two-year terms and four directors 6-3 who shall each serve four-year terms. Thereafter, on the same date 6-4 in each subsequent second year, the appropriate number of directors 6-5 shall be elected to the board. 6-6 (b) If the district's boundaries are coextensive with the 6-7 boundaries of one county, one director shall be elected from each 6-8 commissioner precinct and three directors shall be elected from the 6-9 district at large. 6-10 (c) If the district's boundaries are not coextensive with 6-11 the boundaries of one county, the directors shall be elected from 6-12 the district at large. 6-13 (d) At the initial election of directors under Subsection 6-14 (b), the candidate receiving the highest number of votes from a 6-15 commissioner precinct is the director for that precinct, and the 6-16 three candidates receiving the highest number of votes from the 6-17 district at large are the directors for the district at large. If 6-18 two or more persons tie for the third-highest vote, the initial 6-19 board shall select the third member from those tying for the place. 6-20 The candidates elected from the odd-numbered precincts and the two 6-21 candidates elected from the district at large who receive the 6-22 highest number of votes at the election serve for a term of four 6-23 years. The candidates elected from the even-numbered precincts and 6-24 the candidate elected from the district at large who receives the 6-25 third-highest number of votes at that election serve for a term of 6-26 two years. 6-27 (e) At the initial election of directors under Subsection 7-1 (c), the seven candidates receiving the highest number of votes at 7-2 that election are directors for the district. The four directors 7-3 receiving the highest number of votes at the initial election serve 7-4 for a term of four years. The remaining directors serve for a term 7-5 of two years. 7-6 Sec. 411.022. QUALIFICATIONS FOR OFFICE. (a) To be 7-7 eligible to be a candidate for or to serve as director, a person 7-8 must be: 7-9 (1) a resident of the district; and 7-10 (2) a qualified voter. 7-11 (b) In addition to the qualifications required by Subsection 7-12 (a), a person who is elected from a commissioner precinct or who is 7-13 appointed to fill a vacancy for a commissioner precinct must be a 7-14 resident of that commissioner precinct. 7-15 (c) Each director must execute a bond in the amount of 7-16 $5,000 with a corporate surety authorized to do business in this 7-17 state and conditioned on the faithful performance of the director's 7-18 duties. 7-19 Sec. 411.023. APPLICATION FOR ELECTION. (a) A person who 7-20 wishes to have the person's name printed on the ballot at a 7-21 directors' election as a candidate for director shall file an 7-22 application with the secretary of the district. 7-23 (b) If applicable, the application must specify the 7-24 commissioner precinct the candidate wishes to represent or specify 7-25 that the candidate wishes to represent the district at large. 7-26 Sec. 411.024. VACANCY ON BOARD. A vacancy on a board shall 7-27 be filled by appointment of the remaining members of the board 8-1 until the next election of directors for the district. If that 8-2 position is not scheduled to be filled at that election, the person 8-3 elected to fill the position serves only for the remainder of the 8-4 unexpired term. 8-5 Sec. 411.025. OATH. Each director shall file the statement 8-6 and take the constitutional oath of office required of state 8-7 officers. 8-8 Sec. 411.026. ORGANIZATION OF BOARD. (a) After each 8-9 biennial election of directors, the board shall hold a regular 8-10 meeting in May at the district office and shall organize by 8-11 electing from the members of the board one person to serve as 8-12 chairman, one person to serve as vice-chairman, and one person to 8-13 serve as secretary. 8-14 (b) The chairman shall preside over meetings of the board, 8-15 and in the chairman's absence the vice-chairman shall preside. 8-16 (c) The chairman, vice-chairman, and secretary shall perform 8-17 the duties and may exercise the powers specifically given them by 8-18 this chapter or by orders of the board. 8-19 (d) The board may appoint a treasurer and an attorney for 8-20 the district. The persons appointed under this subsection are 8-21 entitled to the compensation provided by the district's budget. 8-22 (e) The person appointed as treasurer shall execute a bond 8-23 in the amount determined by the board, payable to the district, 8-24 conditioned on the faithful performance of the treasurer's duties. 8-25 The district shall pay for the bond. 8-26 Sec. 411.027. INTEREST IN CONTRACT. A director who is 8-27 financially interested in a contract to be executed by the district 9-1 for the purchase of property or the construction of facilities 9-2 shall disclose that fact to the other directors and may not vote on 9-3 the acceptance of the contract. 9-4 Sec. 411.028. DIRECTOR'S COMPENSATION. (a) A director is 9-5 entitled to receive $25 a day and reimbursement for actual and 9-6 necessary expenses incurred: 9-7 (1) for each day the director attends meetings of the 9-8 board; and 9-9 (2) for each day the director attends to the business 9-10 of the district that is authorized by board resolution or motion. 9-11 (b) A director is not entitled to receive a per diem 9-12 allowance for more than 30 days in any one calendar year. 9-13 Sec. 411.029. GENERAL MANAGER; PERSONNEL. (a) The board 9-14 may employ a general manager for a term and salary set by the 9-15 board. 9-16 (b) The general manager is the chief executive officer of 9-17 the district. Under policies established by the board, the general 9-18 manager is responsible to the board for: 9-19 (1) administering the directives of the board; 9-20 (2) keeping the district's records, including minutes 9-21 of the board's meetings; 9-22 (3) coordinating with state, federal, and local 9-23 agencies; 9-24 (4) developing plans and programs for the board's 9-25 approval; 9-26 (5) hiring, supervising, training, and discharging 9-27 district employees; 10-1 (6) contracting for or retaining technical, 10-2 scientific, legal, fiscal, and other professional services; and 10-3 (7) performing any other duty assigned to the general 10-4 manager by the board. 10-5 (c) The board may discharge the general manager on a 10-6 majority vote of all of the directors. 10-7 (d) The general manager and each employee of the district 10-8 charged with the collection, custody, or payment of any money of 10-9 the district shall execute a fidelity bond. The board shall 10-10 approve the form, amount, and surety of the bond. The district 10-11 shall pay the premiums on the employees' bonds under this section. 10-12 Sec. 411.030. PRINCIPAL OFFICE. A district shall maintain 10-13 its principal office inside the district's boundaries. 10-14 Sec. 411.031. MEETINGS. (a) The board shall hold regular 10-15 quarterly meetings. It may hold meetings at other times as 10-16 required for the business of the district. 10-17 (b) Any person may attend a meeting of the board and may 10-18 present in an orderly manner matters for the board's consideration. 10-19 (c) Meetings shall be conducted and notice of meetings shall 10-20 be posted in accordance with the open meetings law, Chapter 271, 10-21 Acts of the 60th Legislature, Regular Session, 1967 (Article 10-22 6252-17, Vernon's Texas Civil Statutes). 10-23 Sec. 411.032. MINUTES AND RECORDS OF DISTRICT. (a) The 10-24 board shall keep a complete account of all its meetings and 10-25 proceedings and shall preserve its minutes, contracts, records, 10-26 notices, accounts, receipts, and other records in a safe place. 10-27 All minutes, contracts, records, notices, accounts, receipts, and 11-1 other records are the property of the district and subject to 11-2 public inspection. 11-3 (b) Neither the board nor its employees may disclose a 11-4 district record that relates to trade secrets or the economics of 11-5 an industry's operations. 11-6 Sec. 411.033. ELECTION. (a) Except as provided by Section 11-7 411.012, an election in a district shall be held on an authorized 11-8 uniform election date as provided by the Election Code. 11-9 (b) Each election shall be held in accordance with the 11-10 Election Code. 11-11 Sec. 411.034. EMINENT DOMAIN. (a) A district may exercise 11-12 the power of eminent domain to acquire by condemnation a fee simple 11-13 or other interest in property located inside the district if the 11-14 property interest is necessary to the exercise of the authority 11-15 conferred by this chapter. 11-16 (b) The district must exercise the power of eminent domain 11-17 in the manner provided by Chapter 21, Property Code, but the 11-18 district is not required to deposit in the trial court money or a 11-19 bond as provided by Section 21.021(a), Property Code. 11-20 (c) In a condemnation proceeding brought by a district, the 11-21 district is not required to pay in advance or give bond or other 11-22 security for costs in the trial court, to give bond for the 11-23 issuance of a temporary restraining order or a temporary 11-24 injunction, or to give bond for costs or supersedeas on an appeal 11-25 or writ of error. 11-26 (d) In exercising the power of eminent domain, if the 11-27 district requires relocating, raising, lowering, rerouting, 12-1 changing the grade, or altering the construction of any railroad, 12-2 highway, pipeline, or electric transmission or distribution, 12-3 telegraph, or telephone lines, conduits, poles, or facilities, the 12-4 district must bear the actual cost of relocating, raising, 12-5 lowering, rerouting, changing the grade, or altering the 12-6 construction to provide comparable replacement without enhancement 12-7 of facilities after deducting the net salvage value derived from 12-8 the old facility. 12-9 Sec. 411.035. CONTRACTS. (a) The board may enter into 12-10 contracts for administration or services as provided by this 12-11 chapter and in accordance with the applicable provisions of the 12-12 Local Government Code. 12-13 (b) A contract shall be executed by the board in the name of 12-14 the district. 12-15 Sec. 411.036. CONSTRUCTION, RENOVATION, AND REPAIR 12-16 CONTRACTS. (a) A district may contract with any person to 12-17 construct, renovate, or repair any of its works, improvements, or 12-18 facilities, or other plants, pipelines, equipment, and appliances 12-19 and, from time to time, make improvements to them. 12-20 (b) Contracts entered into under this section requiring an 12-21 expenditure of more than $10,000 may be made only after competitive 12-22 bidding as provided by Subchapter B, Chapter 271, Local Government 12-23 Code. 12-24 (c) A contract entered into under this section must contain, 12-25 or have attached to it, the specifications, plans, and details for 12-26 work included in the contract, and work shall be done according to 12-27 those plans and specifications under the supervision of the 13-1 district. The contract must be in writing and signed by the 13-2 contractor and a representative of the district designated by the 13-3 board. The contract shall be kept in the district's office and 13-4 must be available for public inspection. 13-5 Sec. 411.037. CONTRACTOR'S BOND. (a) A contractor shall 13-6 execute a bond in an amount determined by the board, not to exceed 13-7 the contract price, payable to the district and approved by the 13-8 board, conditioned on the faithful performance of the obligations, 13-9 agreements, and covenants of the contract. 13-10 (b) The bond must provide that if the contractor defaults on 13-11 the contract, the contractor will pay to the district all damages 13-12 sustained as a result of the default. The bond shall be deposited 13-13 in the district's depository, and a copy of the bond shall be kept 13-14 in the district's office. 13-15 Sec. 411.038. MONITORING WORK. (a) The board has control 13-16 of construction, renovation, or repairs being done for the district 13-17 under a contract entered into under Section 411.036 and shall 13-18 determine whether or not the contract is being fulfilled. 13-19 (b) The board shall have the construction, renovation, or 13-20 repair work inspected by engineers, inspectors, and personnel of 13-21 the district. 13-22 (c) During the progress of the work, the engineers, 13-23 inspectors, and personnel doing the inspections shall submit to the 13-24 board written reports that show whether or not the contractor is 13-25 complying with the contract. 13-26 (d) On completion of construction, renovation, or repair 13-27 work, the engineers, inspectors, and personnel shall submit to the 14-1 board a final detailed written report including information 14-2 necessary to show whether or not the contractor has fully complied 14-3 with the contract. 14-4 Sec. 411.039. PAYMENT FOR WORK. (a) A district shall pay 14-5 the contract price of construction, renovation, or repair contracts 14-6 in accordance with this section. 14-7 (b) The district shall make progress payments under 14-8 contracts monthly as the work proceeds or at more frequent 14-9 intervals as determined by the board. 14-10 (c) If requested by the board, the contractor shall furnish 14-11 an analysis of the total contract price showing the amount included 14-12 for each principal category of the work, in such detail as 14-13 requested, to provide a basis for determining progress payments. 14-14 (d) In making progress payments, 10 percent of the estimated 14-15 amount shall be retained until final completion and acceptance of 14-16 the contract work. However, if the board, at any time after 50 14-17 percent of the work has been completed, finds that satisfactory 14-18 progress is being made, it may authorize any of the remaining 14-19 progress payments to be made in full. Also, if the work is 14-20 substantially complete, the board, if it finds the amount retained 14-21 to be in excess of the amount adequate for the protection of the 14-22 district, may release to the contractor all or a portion of the 14-23 excess amount. 14-24 (e) On completion and acceptance of each separate project, 14-25 work, or other division of the contract, on which the price is 14-26 stated separately in the contract, payment may be made without 14-27 retention of a percentage. 15-1 (f) When work is completed according to the terms of the 15-2 contract, the board shall draw a warrant on the depository to pay 15-3 any balance due on the contract. 15-4 Sec. 411.040. CONTRACTS FOR PURCHASE OF VEHICLES, EQUIPMENT, 15-5 AND SUPPLIES OVER $10,000. (a) If the estimated amount of a 15-6 proposed contract for the purchase of vehicles, equipment, or 15-7 supplies is more than $10,000, the board shall ask for competitive 15-8 bids as provided by Section 411.036(b). 15-9 (b) This section does not apply to purchases of property 15-10 from public agencies or to contracts for personal or professional 15-11 services. 15-12 Sec. 411.041. SUITS; PAYMENT OF JUDGMENTS. (a) A district 15-13 may, through its board, sue and be sued in any court of this state 15-14 in the name of the district. Service of process in a suit may be 15-15 had by serving the general manager or other officers appointed by 15-16 the board. 15-17 (b) The courts of this state shall take judicial notice of 15-18 the creation of a district. 15-19 (c) A court of this state that renders a money judgment 15-20 against a district may require the board to pay the judgment from 15-21 money in the district depository that is not dedicated to the 15-22 payment of any indebtedness of the district. 15-23 Sec. 411.042. SEAL. The board shall adopt a seal for the 15-24 district and may alter the form of the seal from time to time. 15-25 (Sections 411.043-411.060 reserved for expansion 15-26 SUBCHAPTER D. DISTRICT POWERS AND DUTIES 15-27 Sec. 411.061. GENERAL POWERS AND DUTIES. (a) A district 16-1 shall administer and enforce this chapter and shall use its 16-2 facilities and powers to accomplish the purposes of this chapter. 16-3 (b) After notice and hearing, the board may adopt rules 16-4 necessary to carry out this chapter. The board shall adopt rules 16-5 providing procedures for giving notice and holding hearings. 16-6 (c) A district may prepare and adopt plans for and may 16-7 purchase, obtain permits for, construct, acquire, own, operate, 16-8 maintain, repair, improve, and extend inside the boundaries of the 16-9 district any works, improvements, landfills, recycling facilities, 16-10 waste-to-energy facilities, composting facilities, transfer 16-11 stations, storage sites, and other facilities, plants, pipelines, 16-12 equipment, and appliances necessary to transport, process, dispose 16-13 of, and control municipal solid waste and to protect groundwater 16-14 within the district in accordance with state law. 16-15 (d) A district shall acquire all permits required by state 16-16 law that are necessary to carry out this chapter. 16-17 (e) A district may conduct studies and research for the 16-18 disposal of municipal solid waste and the protection of water 16-19 within the district. 16-20 (f) The regulatory powers of a district under this chapter 16-21 extend to every person within the district. 16-22 (g) Except as expressly limited by this chapter, a district 16-23 has all powers, rights, and privileges necessary and convenient for 16-24 accomplishing the purposes of this chapter conferred by general law 16-25 on a conservation and reclamation district created under Article 16-26 XVI, Section 59, of the Texas Constitution. 16-27 (h) Subject only to the authority vested in other entities 17-1 by general law, including those vested in the commission by Chapter 17-2 26, Water Code, and by Chapter 361, Health and Safety Code, a 17-3 district may control water pollution within the district. 17-4 (i) The powers granted to a district by this chapter are 17-5 cumulative of all powers granted by other laws that are by their 17-6 terms applicable to the district. 17-7 (j) The powers and duties conferred on a district are 17-8 granted subject to the state policy to encourage the development 17-9 and use of regional and integrated solid waste management systems 17-10 to serve the needs of the citizens of the state. 17-11 (k) A district may not contract with a person outside the 17-12 boundaries of the district to provide to that person solid waste 17-13 management services or any other service authorized under this 17-14 chapter. 17-15 Sec. 411.062. SOLID WASTE RESOURCE RECOVERY FACILITIES. A 17-16 district may construct or acquire and operate municipal solid waste 17-17 resource recovery facilities inside the district. 17-18 Sec. 411.063. ON-SITE SEWAGE DISPOSAL SYSTEMS. (a) A 17-19 district may apply to the commission for designation as an 17-20 authorized agent to implement and enforce on-site sewage disposal 17-21 rules under Chapter 366. 17-22 (b) If a district finds that due to the nature of the soil 17-23 or drainage in the area it is necessary to prevent water pollution 17-24 that may injure the public health, the district by rule may: 17-25 (1) provide limits on the number and kind of septic 17-26 tanks in an area defined by the rule; 17-27 (2) prohibit the use of septic tanks in the area; or 18-1 (3) prohibit the installation of new septic tanks in 18-2 the area. 18-3 (c) The board shall consult the commission before the 18-4 adoption of a rule under Subsection (b). 18-5 (d) The board may not issue a rule under Subsection (b) 18-6 without first holding a public hearing in the area to be affected 18-7 by the rule. 18-8 Sec. 411.064. SOLID WASTE MANAGEMENT CONTRACTS. (a) Unless 18-9 otherwise provided by this chapter, a district may contract to 18-10 provide solid waste management services inside the district. 18-11 (b) A district shall set fees in a contract under Subsection 18-12 (a) after considering: 18-13 (1) the quality of the waste; 18-14 (2) the quantity of the waste; 18-15 (3) the difficulty encountered in treating or 18-16 disposing of the waste; 18-17 (4) operation and maintenance expenses and debt 18-18 retirement services; and 18-19 (5) any other reasonable considerations. 18-20 Sec. 411.065. REGULATION OF SOLID WASTE MANAGEMENT. A 18-21 district shall comply with all standards, laws, and rules relating 18-22 to the operation for all aspects of solid waste handling, including 18-23 storage, collection, recycling, incineration, sanitary landfill, or 18-24 composting. 18-25 Sec. 411.066. CONSULTATION, CONTRACTS, AND COOPERATION WITH 18-26 OTHER GOVERNMENTAL AGENCIES AND ENTITIES. To carry out any 18-27 purposes or powers under this chapter, a district may advise, 19-1 consult, contract, and cooperate with the federal government and 19-2 its agencies, the state and its agencies, local governments, and 19-3 private entities. 19-4 Sec. 411.067. ACQUISITION OF PROPERTY. A district may 19-5 acquire by gift, grant, devise, purchase, or lease any land, 19-6 easements, rights-of-way, and other property interests necessary 19-7 inside the district to carry out the powers and duties provided by 19-8 this chapter. 19-9 Sec. 411.068. ACQUISITION OF EXISTING FACILITIES. If a 19-10 district acquires existing works, improvements, facilities, plants, 19-11 pipelines, equipment, and appliances that are completed, partially 19-12 completed, or under construction, the district may assume the 19-13 contracts and obligations of the previous owner and perform the 19-14 obligations of the previous owner in the same manner and to the 19-15 same extent that any other purchaser or assignee would be bound. 19-16 Sec. 411.069. ENTRY ON LAND. (a) The directors, the 19-17 engineer, and the employees of a district may go on any land inside 19-18 or outside the boundaries of the district to make surveys and 19-19 examine the land with reference to the location of works, 19-20 improvements, and waste disposal, treatment, and other facilities, 19-21 plants, pipelines, equipment, and appliances and to attend to 19-22 business of the district. 19-23 (b) Before a director, engineer, or employee enters on the 19-24 land, the landowner must grant written permission or five days' 19-25 written notice must be given to the landowner. 19-26 (c) If any activities of a district on the land cause 19-27 damages to the land or property, the land or property shall be 20-1 restored as nearly as possible to its original state. The district 20-2 shall pay the cost of the restoration. 20-3 Sec. 411.070. RIGHT TO USE ROAD RIGHT-OF-WAY. (a) A 20-4 district has a right-of-way along and across all public state or 20-5 county roads or highways. 20-6 (b) A governmental entity that has jurisdiction of a 20-7 right-of-way may designate the place on the right-of-way on which 20-8 the facilities of the district may be installed and may require the 20-9 relocation of the district's facilities to accommodate any widening 20-10 or changing of traffic lanes. 20-11 (c) The district may not proceed with an action to change, 20-12 alter, or damage facilities or property of the state unless the 20-13 district first obtains the written consent of the governmental 20-14 entity that has control and jurisdiction of the facilities or 20-15 property. 20-16 (Sections 411.071-411.090 reserved for expansion 20-17 SUBCHAPTER E. DISTRICT FINANCES 20-18 Sec. 411.091. FISCAL YEAR. (a) A district operates on the 20-19 fiscal year established by the board. 20-20 (b) The fiscal year may not be changed more than once in a 20-21 24-month period. 20-22 Sec. 411.092. ANNUAL AUDIT. Annually, the board shall have 20-23 an audit made of the financial condition of the district. 20-24 Sec. 411.093. ANNUAL BUDGET. (a) The board shall prepare 20-25 and approve an annual budget for the district. 20-26 (b) The budget shall contain a complete financial statement, 20-27 including a statement of: 21-1 (1) the outstanding obligations of the district; 21-2 (2) the amount of cash on hand to the credit of each 21-3 fund of the district; 21-4 (3) the amount of money received by the district from 21-5 all sources during the previous year; 21-6 (4) the amount of money available to the district from 21-7 all sources during the ensuing year; 21-8 (5) the amount of the balances expected at the end of 21-9 the year in which the budget is being prepared; 21-10 (6) the estimated amount of revenues and balances 21-11 available to cover the proposed budget; and 21-12 (7) the estimated tax rate that will be required. 21-13 (c) After adoption, the annual budget may be amended on the 21-14 board's approval. 21-15 (d) Money may not be spent for an expense not included in 21-16 the annual budget or an amendment to it unless the board by order 21-17 declares the expense to be necessary. 21-18 (e) As soon as practicable after the close of the fiscal 21-19 year, the treasurer of the district shall prepare for the board a 21-20 sworn statement of the amount of money that belongs to the district 21-21 and an account of the disbursements of that money. 21-22 Sec. 411.094. DEPOSITORY. (a) The board shall name one or 21-23 more banks to serve as depository for district funds. 21-24 (b) District funds, other than those transmitted to a bank 21-25 for payment of bonds issued by the district, shall be deposited as 21-26 received with the depository bank and must remain on deposit. This 21-27 section does not limit the power of the board to invest the 22-1 district's funds as provided by Section 411.095. 22-2 (c) Before the district deposits funds in a bank in an 22-3 amount that exceeds the maximum amount secured by the Federal 22-4 Deposit Insurance Corporation, the bank must execute a bond or 22-5 provide other security in an amount sufficient to secure from loss 22-6 the district's funds that exceed the amount secured by the Federal 22-7 Deposit Insurance Corporation. 22-8 Sec. 411.095. INVESTMENTS. (a) Funds of a district may be 22-9 invested and reinvested by the board or its authorized 22-10 representative in those investments specified by Article 836 or 22-11 837, Revised Statutes, or the Public Funds Investment Act of 1987 22-12 (Article 842a-2, Vernon's Texas Civil Statutes). 22-13 (b) Funds of a district may be placed in certificates of 22-14 deposit of state or national banks or state or federal savings and 22-15 loan associations within the state provided that funds are secured 22-16 in the manner required for the security of the funds of counties of 22-17 the state. 22-18 (c) The board by resolution may provide that an authorized 22-19 representative of a district may invest and reinvest the funds of 22-20 the district and provide for money to be withdrawn from the 22-21 appropriate accounts of the district for investments on terms the 22-22 board considers advisable. 22-23 Sec. 411.096. PAYMENT OF EXPENSES. (a) A district's 22-24 directors may pay all costs and expenses necessarily incurred in 22-25 the creation, organization, and operation of the district, legal 22-26 fees, and other incidental expenses and may reimburse any person 22-27 for money advanced for those purposes. 23-1 (b) Payments may be made from money obtained from the sale 23-2 of bonds issued by the district or out of taxes, fees, or other 23-3 revenues of the district. 23-4 Sec. 411.097. FEES AND CHARGES. (a) The board may adopt 23-5 and enforce all necessary charges, fees, or rentals, in addition to 23-6 taxes, for providing any district facilities or services. 23-7 (b) The board may require a deposit for any services or 23-8 facilities furnished and may or may not provide that the deposit 23-9 will bear interest. The interest, if any, may accrue to the 23-10 deposit or be used to offset amounts due. 23-11 (c) The board may discontinue a facility or service to 23-12 prevent an abuse or enforce payment of an unpaid charge, fee, or 23-13 rental due the district, including taxes that have been due for not 23-14 less than six months. 23-15 Sec. 411.098. GIFTS, GRANTS, LOANS, AND OTHER FUNDS. To 23-16 carry out any purposes or powers under this chapter, a district may 23-17 apply for, accept, receive, and administer gifts, grants, loans, 23-18 and other funds available from any source. 23-19 Sec. 411.099. BORROWING MONEY. A district may borrow money 23-20 for any purpose authorized under this chapter or any combination of 23-21 those purposes. 23-22 (Sections 411.100-411.110 reserved for expansion 23-23 SUBCHAPTER F. BONDS 23-24 Sec. 411.111. AUTHORITY TO ISSUE BONDS. The board may issue 23-25 and sell bonds in the name of the district to acquire land and 23-26 construct works, improvements, and waste disposal, treatment, and 23-27 other facilities, plants, pipelines, equipment, and appliances as 24-1 provided by this chapter. 24-2 Sec. 411.112. BOND PAYMENT. The board may provide for the 24-3 payment of the principal of and interest on the bonds: 24-4 (1) from the levy and collection of property taxes on 24-5 all taxable property within the district; 24-6 (2) by pledging all or part of the designated revenues 24-7 from the ownership or operation of the district's works, 24-8 improvements, and facilities; or 24-9 (3) from a combination of the sources listed by 24-10 Subdivisions (1) and (2). 24-11 Sec. 411.113. BOND ELECTION. (a) Bonds may not be issued 24-12 by a district until authorized by a majority vote of individuals 24-13 qualified to vote and actually voting in the area within the 24-14 boundaries of the district at an election called and held for that 24-15 purpose. 24-16 (b) The board may order a bond election. The order calling 24-17 the election must state the nature and the date of the election, 24-18 the hours during which the polls will be open, the location of the 24-19 polling places, the amount of bonds to be authorized, and the 24-20 maximum maturity of the bonds. 24-21 (c) Notice of a bond election must be given as provided by 24-22 the Election Code. 24-23 (d) At an election to authorize bonds, the ballot must be 24-24 printed to provide for voting for or against the issuance of bonds 24-25 and the levy of property taxes for payment of the bonds. 24-26 (e) The board shall canvass the returns and declare the 24-27 results of the election. If a majority of the votes cast at the 25-1 election favor the issuance of the bonds, the bonds may be issued 25-2 by the board, but if a majority of the votes cast at the election 25-3 do not favor issuance of the bonds, the bonds may not be issued. 25-4 Sec. 411.114. TERMS; FORM. (a) A district may issue its 25-5 bonds in various series or issues. 25-6 (b) Bonds may mature serially or otherwise not more than 50 25-7 years after the date of issuance and shall bear interest at a rate 25-8 permitted by state law. 25-9 (c) A district's bonds and interest coupons, if any, are 25-10 investment securities under the terms of Chapter 8, Business & 25-11 Commerce Code, and may be issued registrable as to principal or as 25-12 to principal and interest or may be issued in book entry form and 25-13 may be made redeemable before maturity at the option of the 25-14 district or may contain a mandatory redemption provision. 25-15 (d) A district's bonds may be issued in the form, 25-16 denominations, and manner and under the terms, conditions, and 25-17 details and shall be signed and executed as provided by the board 25-18 in the resolution or order authorizing the bonds. 25-19 Sec. 411.115. BOND PROVISIONS. (a) In the orders or 25-20 resolutions authorizing the issuance of bonds, including refunding 25-21 bonds, the board may provide for the flow of funds, the 25-22 establishment and maintenance of the interest and sinking fund, the 25-23 reserve fund, and other funds and may make additional covenants 25-24 with respect to the bonds and the pledged fees. 25-25 (b) The orders or resolutions of the board authorizing the 25-26 issuance of bonds may prohibit the further issuance of bonds or 25-27 other obligations payable from the pledged fees or may reserve the 26-1 right to issue additional bonds to be secured by a pledge of and 26-2 payable from the fees on a parity with or subordinate to the pledge 26-3 in support of the bonds being issued. 26-4 (c) The orders or resolutions of the board issuing bonds may 26-5 contain other provisions and covenants as the board may determine. 26-6 (d) The board may adopt and have executed any other 26-7 proceedings or instruments necessary and convenient in the issuance 26-8 of bonds. 26-9 Sec. 411.116. APPROVAL AND REGISTRATION. (a) Bonds issued 26-10 by a district and the records relating to their issuance must be 26-11 submitted to the attorney general for examination as to their 26-12 validity. 26-13 (b) If the attorney general finds that the bonds have been 26-14 authorized in accordance with the law, the attorney general shall 26-15 approve them, and the comptroller of public accounts shall register 26-16 the bonds. 26-17 (c) Following approval and registration, the bonds are 26-18 incontestable and are binding obligations according to their terms. 26-19 Sec. 411.117. REFUNDING BONDS. (a) Refunding bonds of a 26-20 district may be issued to refund and pay off an outstanding 26-21 indebtedness the district has issued or assumed. 26-22 (b) The bonds must be issued in the manner provided by 26-23 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 26-24 (Article 717k-3, Vernon's Texas Civil Statutes). 26-25 (c) The refunding bonds may be sold and the proceeds applied 26-26 to the payment of outstanding indebtedness or may be exchanged in 26-27 whole or in part for not less than a similar principal amount of 27-1 outstanding indebtedness. If the refunding bonds are to be sold 27-2 and the proceeds applied to the payment of outstanding 27-3 indebtedness, the refunding bonds must be issued and payments made 27-4 in the manner provided by Chapter 503, Acts of the 54th 27-5 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas 27-6 Civil Statutes). 27-7 Sec. 411.118. LEGAL INVESTMENTS; SECURITY FOR DEPOSITS. (a) 27-8 District bonds are legal and authorized investments for: 27-9 (1) a bank; 27-10 (2) a savings bank; 27-11 (3) a trust company; 27-12 (4) a savings and loan association; 27-13 (5) an insurance company; 27-14 (6) a fiduciary; 27-15 (7) a trustee; 27-16 (8) a guardian; and 27-17 (9) the sinking fund of a municipality, county, school 27-18 district, or other political subdivision of the state and other 27-19 public funds of the state and its agencies, including the permanent 27-20 school fund. 27-21 (b) District bonds may secure deposits of public funds of 27-22 the state or a municipality, county, school district, or other 27-23 political subdivision of the state. The bonds are lawful and 27-24 sufficient security for deposits to the extent of their value, if 27-25 accompanied by all unmatured coupons. 27-26 Sec. 411.119. MANDAMUS BY BONDHOLDERS. In addition to all 27-27 other rights and remedies provided by law, if a district defaults 28-1 in the payment of principal, interest, or redemption price on its 28-2 bonds when due or if it fails to make payments into any fund or 28-3 funds created in the orders or resolutions authorizing the issuance 28-4 of the bonds or defaults in the observation or performance of any 28-5 other covenants, conditions, or obligations set forth in the orders 28-6 or resolutions authorizing the issuance of its bonds, the owners of 28-7 any of the bonds are entitled to a writ of mandamus issued by a 28-8 court of competent jurisdiction compelling and requiring the 28-9 district and its officials to observe and perform the covenants, 28-10 obligations, or conditions prescribed in the orders or resolutions 28-11 authorizing the issuance of the district's bonds. 28-12 Sec. 411.120. APPLICATION OF OTHER LAWS. Bonds of a 28-13 district are considered bonds under the Bond Procedures Act of 1981 28-14 (Article 717k-6, Vernon's Texas Civil Statutes). 28-15 (Sections 411.121-411.130 reserved for expansion 28-16 SUBCHAPTER G. TAXES 28-17 Sec. 411.131. TAX STATUS OF BONDS. Since a district created 28-18 under this chapter is a public entity performing an essential 28-19 public function, bonds issued by the district, any transaction 28-20 relating to the bonds, and profits made in the sale of the bonds 28-21 are free from taxation by the state or by a municipality, county, 28-22 special district, or other political subdivision of the state. 28-23 Sec. 411.132. LEVY OF TAXES. (a) The board may annually 28-24 levy taxes in the district in an amount necessary to pay the 28-25 principal of and interest on bonds issued by the district and the 28-26 expense of assessing and collecting taxes. 28-27 (b) The district may annually levy and collect a maintenance 29-1 and operating tax in an amount not to exceed 50 cents on each $100 29-2 of assessed valuation of property in the district to pay 29-3 maintenance and operating expenses of the district. 29-4 Sec. 411.133. BOARD AUTHORITY. (a) The board may levy 29-5 taxes for the entire year in which the district is created. 29-6 (b) The board shall levy taxes on all property within the 29-7 boundaries of the district subject to district taxation. 29-8 Sec. 411.134. TAX RATE. In setting the tax rate, the board 29-9 shall take into consideration the income of the district from 29-10 sources other than taxation. On determination of the amount of tax 29-11 required to be levied, the board shall make the levy and certify it 29-12 to the tax collector. 29-13 Sec. 411.135. TAX APPRAISAL, ASSESSMENT, AND COLLECTION. 29-14 (a) The Tax Code governs the appraisal, assessment, and collection 29-15 of district taxes. 29-16 (b) The board may provide for the appointment of a tax 29-17 collector for the district or may contract for the collection of 29-18 taxes as provided by the Tax Code. 29-19 CHAPTER 412. PROVISIONS APPLICABLE TO SPECIFIC SOLID WASTE 29-20 MANAGEMENT DISTRICTS 29-21 SUBCHAPTER A. VAN ZANDT COUNTY 29-22 Sec. 412.001. DEFINITION. In this subchapter, "district" 29-23 means the Van Zandt County Waste Management District. 29-24 Sec. 412.002. BOUNDARIES. The district consists of the area 29-25 within the boundaries of Van Zandt County. 29-26 Sec. 412.003. POWERS. The district has all of the rights, 29-27 powers, privileges, authority, functions, and duties provided by 30-1 the general law of this state, including Chapter 411, applicable to 30-2 a solid waste management district created under Article XVI, 30-3 Section 59, of the Texas Constitution. This subchapter prevails 30-4 over any provision of general law that is in conflict or 30-5 inconsistent with this subchapter. 30-6 Sec. 412.004. BOARD OF DIRECTORS. (a) The district is 30-7 governed by a board of directors composed of seven members, who are 30-8 elected as provided by this subchapter. 30-9 (b) The directors shall be elected from the district at 30-10 large. 30-11 Sec. 412.005. TERM OF OFFICE. A director holds office for a 30-12 term of three years and serves until the director's successor is 30-13 elected and has qualified. 30-14 Sec. 412.006. ELECTION OF DIRECTORS. On the first Saturday 30-15 in May in each year, an election shall be held in the district to 30-16 elect the appropriate number of directors to the board. 30-17 Sec. 412.007. BEGINNING OF DIRECTOR'S TERM. A director 30-18 shall take office at the first regular meeting of the board in May 30-19 following the director's election to the board. 30-20 Sec. 412.008. ORGANIZATION OF BOARD. (a) After each annual 30-21 directors' election, the board shall hold a regular meeting in May 30-22 at the district office and shall organize by electing from the 30-23 members of the board one person to serve as chairman, one person to 30-24 serve as vice-chairman, and one person to serve as secretary. 30-25 (b) A person selected to serve as chairman, vice-chairman, 30-26 or secretary serves in that capacity for a term of one year. 30-27 Sec. 412.009. DIRECTOR'S COMPENSATION. A director is not 31-1 entitled to receive a per diem allowance for more than 120 days in 31-2 any one calendar year. 31-3 Sec. 412.010. MAINTENANCE AND OPERATING TAX. On approval of 31-4 a majority of the voters in the district at an election called for 31-5 that purpose, the district may levy and collect a maintenance and 31-6 operating tax in an amount not to exceed five cents on each $100 of 31-7 assessed valuation of property in the district to pay maintenance 31-8 and operating expenses of the district. The maintenance and 31-9 operating tax election shall be held in the manner provided by 31-10 Chapter 411 for the confirmation and directors' election. 31-11 (Sections 412.011-412.030 reserved for expansion 31-12 SUBCHAPTER B. GAINES COUNTY 31-13 Sec. 412.031. DEFINITION. In this subchapter, "district" 31-14 means the Gaines County Waste Management District. 31-15 Sec. 412.032. BOUNDARIES. The district consists of the area 31-16 within the boundaries of Gaines County. 31-17 Sec. 412.033. POWERS. The district has all of the rights, 31-18 powers, privileges, authority, functions, and duties provided by 31-19 the general law of this state, including Chapter 411, applicable to 31-20 a solid waste management district created under Article XVI, 31-21 Section 59, of the Texas Constitution. This subchapter prevails 31-22 over any provision of general law that is in conflict or 31-23 inconsistent with this subchapter. 31-24 Sec. 412.034. APPOINTMENT OF INITIAL DIRECTORS. (a) On or 31-25 after the effective date of this subchapter, the Commissioners 31-26 Court of Gaines County shall appoint three persons, the governing 31-27 body of the city of Seminole shall appoint two persons, and the 32-1 governing body of the city of Seagraves shall appoint two persons 32-2 to serve as initial directors of the district. The four persons 32-3 appointed by the governing bodies of the cities of Seminole and 32-4 Seagraves shall represent the municipalities within the county, and 32-5 the three persons appointed by the Commissioners Court of Gaines 32-6 County shall represent the unincorporated areas of the county. In 32-7 addition, the board of regents of The University of Texas System 32-8 shall appoint one person to serve as an ex-officio nonvoting 32-9 director of the district. 32-10 (b) A vacancy on the initial board shall be filled in the 32-11 same manner as the original appointment for the unexpired term. 32-12 (c) The Commissioners Court of Gaines County and the 32-13 governing bodies of the cities of Seminole and Seagraves shall each 32-14 appoint one initial director to serve a term expiring on May 1 of 32-15 the first year after the year in which the original appointment is 32-16 made. In addition, the Commissioners Court of Gaines County shall 32-17 appoint two initial directors and the governing bodies of the 32-18 cities of Seminole and Seagraves shall each appoint one initial 32-19 director to serve terms expiring on May 1 of the second year after 32-20 the year in which the original appointment is made. The initial 32-21 ex-officio member serves a term expiring on May 1 of the second 32-22 year after the year in which the original appointment is made. 32-23 Successor directors serve two-year terms. 32-24 Sec. 412.035. BALLOT PROPOSITION. The ballot shall be 32-25 printed to permit voting for or against the proposition: "The 32-26 creation of the Gaines County Solid Waste Management District and 32-27 the levy of a maintenance and operating tax in an amount not to 33-1 exceed five cents on each $100 valuation." The ballot shall 33-2 include the names of the persons appointed as directors for the 33-3 district. 33-4 Sec. 412.036. EXPIRATION. If the creation of the district 33-5 is not confirmed on or before the fifth anniversary of the 33-6 effective date of this subchapter, this subchapter expires. 33-7 Sec. 412.037. BOARD OF DIRECTORS. (a) The district is 33-8 governed by a board of directors composed of seven voting members 33-9 and one ex-officio nonvoting member who are appointed as provided 33-10 by this subchapter. However, the district shall change to a system 33-11 of electing the voting directors if: 33-12 (1) the Commissioners Court of Gaines County and the 33-13 governing bodies of the cities of Seminole and Seagraves each pass 33-14 a resolution calling for the election of the directors; or 33-15 (2) the board receives a petition signed by at least 33-16 150 registered voters of Gaines County calling for the election of 33-17 the directors. 33-18 (b) If the resolution is passed or the petition presented to 33-19 the board as provided by Subsection (a), a directors' election 33-20 shall be held on the first Saturday in May that occurs after the 33-21 resolution is passed or the petition presented. The board by order 33-22 may postpone the election date for one year if: 33-23 (1) the election will occur within 60 days after the 33-24 date the resolution is passed or the petition is presented; or 33-25 (2) the board determines that there is not sufficient 33-26 time to comply with the requirements of law and to order the 33-27 election. 34-1 (c) The change to a system of electing the voting directors 34-2 does not apply to or affect the ex-officio nonvoting director 34-3 appointed by the board of regents of The University of Texas 34-4 System. 34-5 Sec. 412.038. METHOD OF ELECTION. (a) If directors are 34-6 elected, one director shall be elected from each commissioner 34-7 precinct and three directors shall be elected from the district at 34-8 large. 34-9 (b) At the initial election of directors, the candidate 34-10 receiving the highest number of votes from a commissioner precinct 34-11 is the director for that precinct, and the three candidates 34-12 receiving the highest number of votes from the district at large 34-13 are the directors for the district at large. If two or more 34-14 persons tie for the third-highest vote, the Commissioners Court of 34-15 Gaines County shall select the third member from those tying for 34-16 the place. 34-17 (c) The candidates elected from the odd-numbered precincts 34-18 and the two candidates elected from the district at large who 34-19 receive the highest number of votes at the initial election serve 34-20 for a term of two years. The candidates elected from the 34-21 even-numbered precincts and the candidate elected from the district 34-22 at large who receives the third-highest number of votes at that 34-23 election serve for a term of one year. 34-24 (d) After the initial election of directors, an election 34-25 shall be held on the first Saturday in May each year and the 34-26 appropriate number of successor directors shall be elected for 34-27 two-year terms. 35-1 Sec. 412.039. QUALIFICATIONS FOR OFFICE. (a) To be 35-2 eligible to be appointed as, to be a candidate for, or to serve as 35-3 a voting director, a person must be: 35-4 (1) a resident of the district; and 35-5 (2) a qualified voter. 35-6 (b) In addition to the qualifications required by Subsection 35-7 (a), a person who is elected from a commissioner precinct or who is 35-8 appointed to fill a vacancy for a commissioner precinct must be a 35-9 resident of that commissioner precinct. 35-10 (c) Each voting director must execute a bond in the amount 35-11 of $5,000 with a corporate surety authorized to do business in this 35-12 state and conditioned on the faithful performance of the director's 35-13 duties. 35-14 Sec. 412.040. BEGINNING OF DIRECTOR'S TERM. A director 35-15 shall take office at the first regular meeting of the board in May 35-16 following the director's appointment or election and qualification. 35-17 Sec. 412.041. VACANCY ON BOARD. (a) If the directors are 35-18 appointed, a vacancy on the board shall be filled in the same 35-19 manner as the original appointment for the unexpired term. 35-20 (b) If the directors are elected, the vacancy of an elected 35-21 director's position on the board shall be filled by appointment of 35-22 the remaining members of the board until the next election of 35-23 directors for the district. If that position is not scheduled to 35-24 be filled at that election, the person elected to fill the position 35-25 serves only for the remainder of the unexpired term. 35-26 Sec. 412.042. ORGANIZATION OF BOARD. (a) After each annual 35-27 appointment or election of directors, the board shall hold a 36-1 regular meeting in May at the district office and shall organize by 36-2 electing from the members of the board one person to serve as 36-3 chairman, one person to serve as vice-chairman, and one person to 36-4 serve as secretary. 36-5 (b) A person selected to serve as chairman, vice-chairman, 36-6 or secretary serves in that capacity for a term of one year. 36-7 Sec. 412.043. MEETING AND ACTIONS OF THE BOARD. (a) A 36-8 majority of the voting members of the board constitute a quorum for 36-9 the transaction of business of the district. 36-10 (b) Except as otherwise provided by this subchapter, the 36-11 vote of a majority of the voting directors is required for board 36-12 action. 36-13 Sec. 412.044. GENERAL MANAGER. The board may discharge the 36-14 general manager on a majority vote of all of the voting directors. 36-15 Sec. 412.045. ADDITIONAL POWERS AND DUTIES. (a) The 36-16 district shall prepare and adopt plans for and shall purchase, 36-17 obtain permits for, construct, acquire, own, operate, maintain, 36-18 repair, improve, and extend inside and outside the boundaries of 36-19 the district any works, improvements, landfills, recycling 36-20 facilities, waste-to-energy facilities, composting facilities, 36-21 transfer stations, storage sites, and other facilities, plants, 36-22 pipelines, equipment, and appliances necessary to transport, 36-23 process, dispose of, and control solid waste and to protect 36-24 groundwater within the district in accordance with state law. 36-25 (b) The district may conduct studies and research for the 36-26 disposal of solid waste and the protection of water within the 36-27 district. 37-1 Sec. 412.046. LIMITATION OF CERTAIN POWERS. The district 37-2 may not provide solid waste collection services without an 37-3 interlocal agreement approved by the county, the city of Seminole, 37-4 and the city of Seagraves. However, the district shall purchase 37-5 equipment, facilities, containers, and other necessary items for 37-6 collection services if the district adopts a recycling program. 37-7 Sec. 412.047. ACQUISITION OF PROPERTY. The district may 37-8 acquire by gift, grant, devise, purchase, or lease any land, 37-9 easements, rights-of-way, and other property interests necessary to 37-10 carry out the powers and duties provided by this subchapter. 37-11 Sec. 412.048. SOLID WASTE RESOURCE RECOVERY FACILITIES. The 37-12 district may construct or acquire and operate solid waste resource 37-13 recovery facilities. 37-14 Sec. 412.049. LEVY OF TAXES. (a) The board may annually 37-15 levy taxes in the district in an amount necessary to pay the 37-16 principal of and interest on bonds issued by the district and the 37-17 expense of assessing and collecting taxes. 37-18 (b) The district may annually levy and collect a maintenance 37-19 and operating tax in an amount not to exceed five cents on each 37-20 $100 of assessed valuation of property in the district to pay 37-21 maintenance and operating expenses of the district. 37-22 (c) The combined tax rate for all purposes may not exceed 10 37-23 cents on each $100 of assessed valuation of property in the 37-24 district. 37-25 Sec. 412.050. Expansion of District Territory. (a) 37-26 Registered voters of a defined territory that is not included in 37-27 the district may file a petition with the secretary of the board 38-1 requesting the inclusion of the territory in the district. The 38-2 petition must be signed by at least 50 registered voters of the 38-3 territory or a majority of those voters, whichever is less. 38-4 (b) The board by order shall set a time and place to hold a 38-5 hearing on the petition to include the territory in the district. 38-6 The board shall set a date for the hearing that is after the 30th 38-7 day after the date the board issues the order. 38-8 (c) If after the hearing the board finds that annexation of 38-9 the territory into the district would be feasible and would benefit 38-10 the district, the board may approve the annexation by a resolution 38-11 entered in its minutes. The board is not required to include all 38-12 of the territory described in the petition if the board finds that 38-13 a modification or change is necessary or desirable. 38-14 (d) Annexation of territory is final when approved by a 38-15 majority of the voters at an election held in the district and by a 38-16 majority of the voters at a separate election held in the territory 38-17 to be annexed. If the district has outstanding debts or taxes, the 38-18 voters in the election to approve the annexation must also 38-19 determine if the annexed territory will assume its proportion of 38-20 the debts or taxes if added to the district. 38-21 (e) The election ballots shall be printed to provide for 38-22 voting for or against the following, as applicable: 38-23 (1) "Adding (description of territory to be added) to 38-24 the Gaines County Solid Waste Management District." 38-25 (2) "(Description of territory to be added) assuming 38-26 its proportionate share of the outstanding debts and taxes of the 38-27 Gaines County Solid Waste Management District, if it is added to 39-1 the district." 39-2 (f) The election shall be held after the 45th day and on or 39-3 before the 60th day after the date the election is ordered. The 39-4 election shall be ordered and notice of the election shall be given 39-5 in accordance with the Election Code. 39-6 (Sections 412.051-412.100 reserved for expansion) 39-7 SUBCHAPTER C. UPPER SABINE VALLEY 39-8 Sec. 412.101. DEFINITION. In this subchapter, "district" 39-9 means the Upper Sabine Valley Solid Waste Management District. 39-10 Sec. 412.102. DESCRIPTION. Except as provided by Section 39-11 412.105, the district's territory consists of the area within the 39-12 boundaries of Upshur, Wood, and Rains counties and that portion of 39-13 Smith County that is north of Interstate Highway 20. 39-14 Sec. 412.103. POWERS. The district has all of the rights, 39-15 powers, privileges, authority, functions, and duties provided by 39-16 the general law of this state, including Chapter 411, applicable to 39-17 a solid waste management district created under Article XVI, 39-18 Section 59, of the Texas Constitution. This subchapter prevails 39-19 over any provision of general law that is in conflict or 39-20 inconsistent with this subchapter. 39-21 Sec. 412.104. APPOINTMENT OF TEMPORARY DIRECTORS. (a) On 39-22 or after the effective date of this subchapter, the commissioners 39-23 court of each county included in the proposed district shall each 39-24 appoint two persons to serve as temporary directors of the 39-25 district. 39-26 (b) Members of the temporary board serve until the persons 39-27 selected as directors under Sections 412.106-412.110 have been 40-1 appointed and have qualified for office. 40-2 (c) A vacancy on the temporary board shall be filled by 40-3 appointment in the same manner as the original appointment. 40-4 Sec. 412.105. CONFIRMATION AND TAX ELECTIONS. (a) The 40-5 temporary directors shall call and hold a separate election in each 40-6 county within the boundaries of the proposed district to determine 40-7 if the proposed district will be created and a tax authorized. The 40-8 elections shall be held on the same day and within six months of 40-9 the effective date of this subchapter. 40-10 (b) Section 41.001(a), Election Code, does not apply to a 40-11 confirmation and tax election held under this section. 40-12 (c) Notice of the confirmation and tax elections shall state 40-13 the day and places for holding the elections and the proposition to 40-14 be voted on. The temporary board shall publish the notice of the 40-15 elections one time in one or more newspapers of general circulation 40-16 in the proposed district. The notice must be published before the 40-17 35th day before the date set for the elections. 40-18 (d) The ballot for the elections shall be printed to permit 40-19 voting for or against the proposition: "The creation of the Upper 40-20 Sabine Valley Solid Waste Management District and the levy of a 40-21 maintenance and operating tax in an amount not to exceed three 40-22 cents on each $100 valuation." 40-23 (e) Immediately after the confirmation and tax elections, 40-24 the presiding judge of each polling place shall deliver returns of 40-25 the elections to the temporary board, and the temporary board shall 40-26 canvass the returns and declare the results. 40-27 (f) If a majority of the votes cast at the election in one 41-1 or more counties favor creation of the district, the board shall 41-2 declare the district created and shall enter the results in its 41-3 minutes. If the election results are favorable in one or more 41-4 counties, but not in all counties, the temporary directors shall 41-5 set the boundaries of the district to include only the counties in 41-6 which the vote was favorable. If a majority of the votes cast at 41-7 each election are against the creation of the district, the board 41-8 shall declare that the creation of the district was defeated and 41-9 shall enter the results in its minutes. The board shall file a 41-10 copy of the election results with the commission. 41-11 (g) If a majority of the voters in each county vote against 41-12 the creation of the district, the board may call and hold 41-13 additional confirmation and tax elections, but another election to 41-14 confirm creation of the district may not be called and held by the 41-15 board before the first anniversary of the most recent confirmation 41-16 and tax elections. If the creation of the district is not 41-17 confirmed on or before the fifth anniversary of the effective date 41-18 of this subchapter, this subchapter expires. 41-19 Sec. 412.106. BOARD OF DIRECTORS. (a) The district is 41-20 governed by a board of directors composed of not fewer than six 41-21 members who are appointed as provided by this subchapter. 41-22 (b) If the district is composed of only one county, the 41-23 commissioners court of that county shall appoint six persons to 41-24 serve as directors. 41-25 (c) If the district is composed of two counties, the 41-26 commissioners court of each county included in the district shall 41-27 each appoint three persons to serve as directors. 42-1 (d) If the district is composed of three or more counties, 42-2 the commissioners court of each county included in the district 42-3 shall each appoint two persons to serve as directors. 42-4 (e) At least one of the directors appointed by each 42-5 commissioners court shall represent the interests of municipalities 42-6 and of unincorporated communities with a population of 1,000 or 42-7 more that are located in that county. 42-8 Sec. 412.107. QUALIFICATIONS OF DIRECTORS. (a) To be 42-9 eligible to be appointed as or to serve as a director, a person 42-10 must be: 42-11 (1) 18 years of age or older; 42-12 (2) a qualified voter; and 42-13 (3) a resident of the county of the appointing 42-14 commissioners court. 42-15 (b) If a member of a commissioners court or a municipal 42-16 government officer is appointed as a director, the member's or 42-17 officer's service as a director is considered an additional duty of 42-18 the member's or officer's existing office. The member or officer 42-19 is not entitled to a per diem allowance under Section 412.112 but 42-20 is entitled to reimbursement for actual and necessary expenses 42-21 incurred in performing official duties as a director. 42-22 (c) Each director must execute a bond in the amount of 42-23 $5,000 with a corporate surety authorized to do business in this 42-24 state and conditioned on the faithful performance of the director's 42-25 duties. The district shall pay the premiums on the directors' 42-26 bonds under this section. 42-27 Sec. 412.108. TERM OF OFFICE. Except as provided by 43-1 Sections 412.110 and 412.131, a director holds office for a term of 43-2 four years and until the director's successor has been appointed 43-3 and has qualified. 43-4 Sec. 412.109. VACANCY ON BOARD. A vacancy on the board 43-5 shall be filled in the same manner as the original appointment for 43-6 the unexpired term. 43-7 Sec. 412.110. INITIAL MEETING AND ORGANIZATION. (a) As 43-8 soon as possible after all directors have been appointed and have 43-9 qualified, the county judge of the county included in the district 43-10 that has the largest population shall call a meeting of the board 43-11 and shall preside at the meeting until the directors have elected 43-12 from the board's membership a chairman, a vice-chairman, a 43-13 secretary, and a treasurer. 43-14 (b) A person selected as an officer serves for a term of one 43-15 year. 43-16 (c) At the initial meeting, the directors shall draw lots so 43-17 that one-half of the initial directors serve four-year terms that 43-18 begin on the date on which the initial meeting is held, and 43-19 one-half of the directors serve two-year terms that begin on that 43-20 date. 43-21 (d) The board shall adopt bylaws at the initial meeting or 43-22 as soon after the initial meeting as practicable. The bylaws must 43-23 prescribe the powers, duties, and procedures for removal from a 43-24 board office. 43-25 Sec. 412.111. MEETING AND ACTIONS OF BOARD. (a) The board 43-26 shall meet at least one time each month and may meet at any other 43-27 time provided by its bylaws. 44-1 (b) A majority of the members of the board constitute a 44-2 quorum for the transaction of business of the district. 44-3 (c) Except as otherwise provided by this subchapter, the 44-4 vote of a majority of directors is required for board action. 44-5 Sec. 412.112. DIRECTOR'S COMPENSATION. (a) A director is 44-6 entitled to receive $50 a day and reimbursement for actual and 44-7 necessary expenses incurred: 44-8 (1) for each day the director attends meetings of the 44-9 board; and 44-10 (2) for each day the director attends to the business 44-11 of the district that is authorized by board resolution or motion. 44-12 (b) A director is not entitled to receive a per diem 44-13 allowance for more than 60 days in any one calendar year. 44-14 Sec. 412.113. GENERAL MANAGER; PERSONNEL. The board shall 44-15 employ a general manager for a term and salary set by the board. 44-16 Sec. 412.114. RECORDS. (a) The district shall keep 44-17 complete and accurate accounts of its business transactions in 44-18 accordance with generally accepted methods of accounting. 44-19 (b) The district shall keep complete and accurate minutes of 44-20 its meetings. 44-21 (c) The district shall keep its accounts, contracts, 44-22 documents, minutes, and other records at its principal office. 44-23 (d) Neither the board nor its employees may disclose a 44-24 district record that relates to trade secrets or the economics of 44-25 an industry's operations. 44-26 Sec. 412.115. CONTRACTS. The board may enter into contracts 44-27 as provided by this subchapter, and those contracts shall be 45-1 executed by the board in the name of the district. 45-2 Sec. 412.116. SUPERVISION OF DISTRICT. The district is 45-3 subject to the continuing right of supervision by the state in 45-4 accordance with state law. 45-5 Sec. 412.117. SUITS; PAYMENTS OF JUDGMENTS. The district 45-6 may, through its board, sue and be sued in any court of this state 45-7 in the name of the district. Service of process in a suit may be 45-8 had by serving the general manager. 45-9 Sec. 412.118. ADDITIONAL POWERS AND DUTIES. (a) The 45-10 district may prepare and adopt plans for and may purchase, 45-11 construct, acquire, own, operate, maintain, repair, improve, and 45-12 extend inside and outside the boundaries of the district any works, 45-13 improvements, waste disposal, treatment, and other facilities, 45-14 plants, pipelines, equipment, and appliances necessary to collect, 45-15 transport, process, dispose of, and control domestic, industrial, 45-16 and communal waterborne and solid waste within the district. 45-17 (b) The district shall conduct studies and research for the 45-18 control of water pollution and waste disposal within the district, 45-19 shall cooperate with the department and commission in any studies, 45-20 and shall use the results of those studies. 45-21 (c) Except as expressly limited by this subchapter, the 45-22 district has all powers, rights, and privileges necessary and 45-23 convenient for accomplishing the purposes of this subchapter 45-24 conferred by general law on a conservation and reclamation district 45-25 created under Article XVI, Section 59, of the Texas Constitution, 45-26 including specifically all powers, rights, and privileges conferred 45-27 by Subtitle B, Title 5, Health and Safety Code, on a local or 46-1 regional government. 46-2 (d) Subject only to the authority vested in other entities 46-3 by general law, including those vested in the commission by Chapter 46-4 26, Water Code, and those vested in the department by Chapter 361, 46-5 the district may control water pollution and waste disposal within 46-6 the district. 46-7 (e) The district may enter into cooperative agreements with 46-8 local governments and other political subdivisions to jointly 46-9 operate solid waste management activities and to charge reasonable 46-10 fees for those services. 46-11 Sec. 412.119. ACQUISITION OF PROPERTY. The district may 46-12 acquire by gift, grant, devise, purchase, lease, or eminent domain 46-13 any land, easements, rights-of-way, and other property interests 46-14 necessary to carry out the powers and duties provided by this 46-15 subchapter. 46-16 Sec. 412.120. EMINENT DOMAIN. (a) The district may acquire 46-17 land for the purposes authorized by Section 412.118(a) by 46-18 condemnation if the board determines, after notice and hearing, 46-19 that it is necessary. 46-20 (b) The district must exercise the power of eminent domain 46-21 in the manner provided by Chapter 21, Property Code, but the 46-22 district is not required to: 46-23 (1) deposit in the trial court money or a bond as 46-24 provided by Section 21.021(a), Property Code; 46-25 (2) pay in advance or give bond or other security for 46-26 costs in the trial court; 46-27 (3) give bond for the issuance of a temporary 47-1 restraining order or a temporary injunction; or 47-2 (4) give bond for costs or supersedeas on an appeal or 47-3 writ of error. 47-4 (c) If the district, in the exercise of the power of eminent 47-5 domain, requires relocating, raising, lowering, rerouting, changing 47-6 the grade, or altering the construction of any railroad, highway, 47-7 pipeline, or electric transmission and electric distribution, 47-8 telegraph, or telephone lines, conduits, poles or facilities, the 47-9 district must bear the actual cost of relocating, raising, 47-10 lowering, rerouting, changing the grade, or altering the 47-11 construction to provide comparable replacement without enhancement 47-12 of facilities, after deducting the net salvage value derived from 47-13 the old facility. 47-14 Sec. 412.121. AUTHORITY TO ENTER INTO CONSTRUCTION, 47-15 RENOVATION, AND REPAIR CONTRACTS. The district may contract with 47-16 any person to construct, renovate, or repair any of its works, 47-17 improvements, waste disposal, treatment, or other facilities, 47-18 plants, pipelines, equipment, and appliances and, from time to 47-19 time, make improvements to them. 47-20 Sec. 412.122. ENTRY ON LAND. Before a director, engineer, 47-21 or employee enters on the land, five days' written notice must be 47-22 given to the landowner. 47-23 Sec. 412.123. ACQUISITION OF EXISTING FACILITIES. If the 47-24 district acquires existing works, improvements, and waste 47-25 disposal, treatment, and other facilities, plants, pipelines, 47-26 equipment, and appliances that are completed, partially completed, 47-27 or under construction, the district may assume the contracts and 48-1 obligations of the previous owner and perform the obligations of 48-2 the previous owner in the same manner and to the same extent that 48-3 any other purchaser or assignee would be bound. 48-4 Sec. 412.124. SOLID WASTE RESOURCE RECOVERY OR RECYCLING 48-5 FACILITIES. The district may construct or acquire and operate 48-6 solid waste resource recovery or recycling facilities. 48-7 Sec. 412.125. REGULATION OF SOLID WASTE DISPOSAL. (a) The 48-8 district shall establish minimum standards of operation for all 48-9 aspects of solid waste handling, including storage, collection, 48-10 incineration, recycling, sanitary landfill, and composting. 48-11 (b) Before establishing the standards, the district shall: 48-12 (1) hold public hearings after giving public notice in 48-13 the time and manner prescribed by board rule; 48-14 (2) consult with the commission, the Texas Air Control 48-15 Board, and the department to ensure that the standards are not 48-16 inconsistent with established criteria; and 48-17 (3) find that the standards are reasonably necessary 48-18 to protect the public health or welfare from water pollution or 48-19 other environment harm. 48-20 (c) To amend standards, the district shall follow the same 48-21 procedures required for establishing standards. 48-22 (d) The district may make rules reasonably necessary to 48-23 implement solid waste disposal standards. 48-24 (e) The district may assume the exclusive authority to 48-25 exercise the powers granted to a county under Section 361.165, 48-26 including the power to issue licenses and exercise municipal solid 48-27 waste management authority. If the district elects to exercise the 49-1 licensing authority granted under this subsection, it must adopt 49-2 and enforce rules for the management of municipal solid waste. The 49-3 rules must be compatible with and at least as stringent as those of 49-4 the department and must be approved by the department. 49-5 Sec. 412.126. SEPTIC TANKS. The board may provide in the 49-6 order for a gradual and systematic reduction of the number or kind 49-7 of septic tanks in the area and, by rule, may provide for a system 49-8 of licensing and issuing permits for the installation of new septic 49-9 tanks in the area affected, in which event a person may not install 49-10 septic tanks in the area without a license or permit from the 49-11 board. 49-12 Sec. 412.127. ACQUISITION, CONSTRUCTION, AND OPERATION OF 49-13 DISPOSAL SYSTEMS. The district may: 49-14 (1) acquire and provide by purchase, gift, or lease 49-15 any disposal systems inside or outside the district; 49-16 (2) construct and provide disposal systems inside or 49-17 outside the district; 49-18 (3) operate and sell any disposal systems that it 49-19 constructs or acquires; 49-20 (4) contract with a person to operate and maintain a 49-21 disposal system belonging to the person; and 49-22 (5) contract with a person to train or supervise 49-23 employees of a disposal system. 49-24 Sec. 412.128. WASTE DISPOSAL CONTRACTS. (a) The district 49-25 may contract to receive and to treat or dispose of waste from a 49-26 person in the district. 49-27 (b) The district shall set fees in a contract under 50-1 Subsection (a) after considering: 50-2 (1) the quality of the waste; 50-3 (2) the quantity of the waste; 50-4 (3) the difficulty encountered in treating or 50-5 disposing of the waste; 50-6 (4) operation and maintenance expenses and debt 50-7 retirement services; and 50-8 (5) any other reasonable considerations. 50-9 Sec. 412.129. AREA-WIDE WASTE TREATMENT. The powers and 50-10 duties conferred on the district are granted subject to the state 50-11 policy to encourage the development and use of integrated area-wide 50-12 waste collection, treatment, and disposal systems to serve the 50-13 waste disposal needs of the citizens of the state, it being an 50-14 objective of the policy to avoid the economic burden to the people 50-15 and the impact on the quality of the water in the state that result 50-16 from the construction and operation of numerous small waste 50-17 collection, treatment, and disposal facilities to serve an area 50-18 when an integrated area-wide waste collection, treatment, and 50-19 disposal system for the area can be reasonably provided. 50-20 Sec. 412.130. LEVY OF TAXES. The district may levy and 50-21 collect a maintenance and operating tax in an amount not to exceed 50-22 three cents on each $100 of assessed valuation of property in the 50-23 district to pay maintenance and operating expenses of the district. 50-24 Sec. 412.131. ANNEXATION OF TERRITORY. (a) The board may 50-25 annex the territory within the boundaries of an adjacent county in 50-26 the manner provided by this section. 50-27 (b) To initiate annexation proceedings, the commissioners 51-1 court of the adjacent county must petition the board requesting the 51-2 board to call an annexation election for the territory within the 51-3 petitioner's county. The petition must be in writing and be 51-4 endorsed by a majority of the members of the commissioners court. 51-5 (c) On receipt of the petition, the board shall set a time 51-6 and place to hold a hearing on the petition. The board shall set a 51-7 date for the hearing that is not later than the 20th day after the 51-8 date on which the board receives the petition. 51-9 (d) The board shall publish notice of the place, time, date, 51-10 and purpose of the hearing in one or more newspapers with general 51-11 circulation in the district and in the county to be annexed. This 51-12 notice is in addition to the notice required under the open 51-13 meetings law, Chapter 271, Acts of the 60th Legislature, Regular 51-14 Session, 1967 (Article 6252-17, Vernon's Texas Civil Statutes). 51-15 (e) Any person may testify at the hearing for or against 51-16 annexation of the county to the district. 51-17 (f) At the conclusion of the hearing, the board shall 51-18 determine if an election should be held in the county to be annexed 51-19 to determine if the county should be annexed to the district. 51-20 (g) Annexation of a county is final when approved by a 51-21 majority of the voters at an election held in the county to be 51-22 annexed. If the district has outstanding debts or taxes, the 51-23 voters in the election to approve the annexation must also 51-24 determine if the annexed county will assume its proportion of the 51-25 debts or taxes if added to the district. An election in the 51-26 existing district accepting the addition of the county is not 51-27 required. 52-1 (h) The election ballots shall be printed to provide for 52-2 voting for or against the following, as applicable: 52-3 (1) "Adding (description of county to be added) to the 52-4 Upper Sabine Valley Solid Waste Management District." 52-5 (2) "(Description of county to be added) assuming its 52-6 proportionate share of the outstanding debts and taxes of the Upper 52-7 Sabine Valley Solid Waste Management District, if it is added to 52-8 the district." 52-9 (i) The election shall be held after the 45th day and on or 52-10 before the 60th day after the date the election is ordered. The 52-11 election shall be ordered and notice of the election shall be given 52-12 in accordance with the Election Code. Section 41.001(a), Election 52-13 Code, does not apply to an election held under this section. 52-14 (j) The board shall file a copy of the election results with 52-15 the commission. 52-16 (k) The commissioners court of the annexed county shall 52-17 appoint two directors to serve on the district's board of 52-18 directors. The newly appointed directors shall draw lots to 52-19 determine their initial terms of office. One new director shall 52-20 serve an initial term that coincides with the terms of district 52-21 directors that expire within two years and the other director shall 52-22 serve a term that expires within two to four years. 52-23 Sec. 412.132. EXCLUSION FROM DISTRICT. (a) At any time 52-24 before the district incurs bonded or other long term indebtedness, 52-25 the commissioners court of a county within the district may 52-26 petition the board to hold an election within the county to 52-27 determine if a majority of voters of that county want to exclude 53-1 the county from the district. On receipt of the petition, the 53-2 board shall enter an order authorizing the commissioners court to 53-3 call the election. 53-4 (b) After the issuance of bonds or other long term 53-5 indebtedness, a county commissioners court may petition the board 53-6 to hold an election to determine if the county should be excluded 53-7 from the district. Before authorizing the commissioners court to 53-8 call an election for this purpose, the board must obtain adequate 53-9 legal and financial assurances that the county will assume and pay 53-10 to the district its proportionate share, based on assessed 53-11 valuation of taxable property in the county and district, of the 53-12 district's outstanding debt if the county withdraws from the 53-13 district. After obtaining assurances the board determines to be 53-14 adequate, the board shall enter an order authorizing the 53-15 commissioners court of that county to call an election in that 53-16 county to determine if the county should be excluded from the 53-17 district. 53-18 Sec. 412.133. ELECTION. (a) Exclusion of a county is final 53-19 when approved by a majority of the voters at an election held in 53-20 the county to be excluded. If the district has outstanding bonds 53-21 or other long term obligations, the voters in the election to 53-22 approve the exclusion must also determine if the excluded county 53-23 will assume a duty to pay its proportion of the district's 53-24 outstanding indebtedness. 53-25 (b) The ballots for the election shall be printed to provide 53-26 for voting for or against the proposition, as applicable: "The 53-27 exclusion of __________ County from the Upper Sabine Valley Solid 54-1 Waste Management District and assumption by the county of a duty to 54-2 pay its proportionate share of the outstanding indebtedness of the 54-3 district." 54-4 (c) The election shall be held after the 45th day and on or 54-5 before the 60th day after the date the election is ordered. The 54-6 election shall be ordered and notice of the election shall be given 54-7 in accordance with the Election Code. Section 41.001(a), Election 54-8 Code, does not apply to an election held under this section. 54-9 (d) The board shall file a copy of the election results with 54-10 the commission. 54-11 Sec. 412.134. CONTINUED OBLIGATION FOR INDEBTEDNESS. The 54-12 exclusion of a county under Section 412.132(b) does not relieve the 54-13 district of its obligation to perform and observe the covenants and 54-14 obligations or the conditions prescribed by the orders or 54-15 resolution authorizing the issuance of the district's bonds. 54-16 SECTION 2. The following are repealed: 54-17 (1) Chapter 1256, Acts of the 71st Legislature, 54-18 Regular Session, 1989; 54-19 (2) Chapter 670, Acts of the 72nd Legislature, Regular 54-20 Session, 1991 (Article 4477-7j, Vernon's Texas Civil Statutes); and 54-21 (3) Chapter 734, Acts of the 72nd Legislature, Regular 54-22 Session, 1991 (Article 4477-7k, Vernon's Texas Civil Statutes). 54-23 SECTION 3. The repeal of a law by this Act does not affect 54-24 an amendment of that law by the 73rd Legislature, Regular Session, 54-25 1993. That amendment is preserved and given effect as part of this 54-26 Act. 54-27 SECTION 4. This Act takes effect September 1, 1993. 55-1 SECTION 5. The importance of this legislation and the 55-2 crowded condition of the calendars in both houses create an 55-3 emergency and an imperative public necessity that the 55-4 constitutional rule requiring bills to be read on three several 55-5 days in each house be suspended, and this rule is hereby suspended.