By: Rosson S.B. No. 1663
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation, administration, powers, duties,
1-2 functions, operation, and financing of the Paseo del Este Municipal
1-3 Utility District; providing for the authorization of bonds and the
1-4 levy of taxes; providing civil penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. GENERAL PROVISIONS
1-7 SECTION 1.01. CREATION. (a) By virtue of Section 59,
1-8 Article XVI, Texas Constitution, a conservation and reclamation
1-9 district is hereby created to be known as Paseo del Este Municipal
1-10 Utility District (hereinafter the "district"), which shall be a
1-11 governmental agency and a body politic and corporate.
1-12 (b) The district is created under and is essential to
1-13 accomplish the purposes of Section 59, Article XVI, Texas
1-14 Constitution. The district shall have all of the powers of
1-15 municipal utility districts established under Chapter 54, Water
1-16 Code, and the district shall conduct its affairs subject to
1-17 Chapters 50 and 54, Water Code, unless otherwise provided in this
1-18 Act.
1-19 SECTION 1.02. TERRITORY. (a) The district shall comprise
1-20 all of the following territory: Section 315 1/2, C. D. Stewart
1-21 Survey, El Paso County, Texas; Section 318, C. D. Stewart Survey,
1-22 El Paso County, Texas; Section 319, C. D. Stewart Survey, El Paso
1-23 County, Texas; all of the south one-half of Section 18, Texas and
2-1 Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-2 County, Texas; all of the northeast one-fourth of Section 18, Texas
2-3 and Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-4 County, Texas, SAVE AND EXCEPT the south 655 feet of said northeast
2-5 one-fourth; all of Section 22, Texas and Pacific Railroad Company
2-6 Survey, Block 79, Township 3, El Paso County, Texas, SAVE AND
2-7 EXCEPT: (1) 7.889 acres, being the remainder of a 38.18 acre
2-8 tract, as described in deed from Texas Pacific Land Trust to
2-9 Socorro Independent School District, recorded in Volume 1302, Page
2-10 769, Real Property Records of El Paso County, Texas, (2) Tracts 2
2-11 and 3, as described in deed from the State of Texas to 375/10 Texas
2-12 Land L.P., recorded in Volume 2595, Page 1504, Real Property
2-13 Records of El Paso County, Texas, (3) Tracts 2 and 3, as described
2-14 in deed from the State of Texas to MBJR Trust and Barry Lang,
2-15 recorded in Volume 2595, Page 1517, Real Property Records of El
2-16 Paso County, Texas, (4) the northwest one-fourth of said Section
2-17 22; (5) Parcel I, as described in deed from Surety Savings
2-18 Association to the State of Texas, recorded in Volume 2043, Page
2-19 1726, Real Property Records of El Paso County, Texas; (6) 17.875
2-20 acres out of the 40.794 acre Tract I described in deed from Socorro
2-21 Independent School District to the State of Texas, recorded in
2-22 Volume 2361, Page 831, Real Property Records of El Paso County,
2-23 Texas; and (7) the southwest 1/4, Section 20, Block 79, Township 3,
2-24 Texas and Pacific Railroad Company Survey, El Paso County, Texas.
2-25 (b) A mistake in the patents or field notes, or in copying
3-1 the patents or field notes in the legislative process, does not
3-2 affect the organization, existence, or validity of the district,
3-3 the rights of the district to issue bonds or refunding bonds, or to
3-4 pay the principal of or interest on the bonds, the right of the
3-5 district to levy and collect taxes, or the legality or operation of
3-6 the district or its board.
3-7 (c) Land included within the boundaries of a special utility
3-8 district created under Section 59, Article XVI, Texas Constitution,
3-9 which is subject to a district's outstanding indebtedness secured
3-10 by taxes or net revenues on the effective date of this Act shall
3-11 not be included within the district. If the property described in
3-12 Subsection (a) of this section includes any land subject to a tax
3-13 or net revenue pledged by a district, it shall be excluded, and the
3-14 remainder of this Act shall not be affected thereby.
3-15 ARTICLE 2. ADMINISTRATIVE PROVISIONS
3-16 SECTION 2.01. BOARD. The district shall be governed by and
3-17 all powers of the district shall be exercised by a board of five
3-18 directors.
3-19 SECTION 2.02. DIRECTOR ELIGIBILITY. Other than initial
3-20 directors, to be eligible for appointment as a director, a person
3-21 must meet the requirements of Section 54.102, Water Code. To be
3-22 eligible for appointment as an initial director, a person must be a
3-23 member of the School Land Board or a resident of El Paso County or
3-24 Travis County. Employment with a state agency shall not disqualify
3-25 a person for appointment to the board under Section 50.026, Water
4-1 Code.
4-2 SECTION 2.03. TERMS OF DIRECTORS AND APPOINTMENT PROCEDURES.
4-3 (a) Other than initial directors, directors serve staggered terms
4-4 of four years, with terms expiring September 1 of each odd-numbered
4-5 year.
4-6 (b) Appointment of initial directors shall be made promptly
4-7 by the School Land Board after this Act takes effect. The School
4-8 Land Board shall appoint two initial directors to serve terms
4-9 expiring September 1, 1997, and three initial directors to serve
4-10 terms expiring September 1, 1999. If an initial director dies,
4-11 resigns, or is otherwise removed, the School Land Board shall
4-12 appoint a successor to serve the unexpired term. When a director's
4-13 term expires, his successor shall be elected as provided in Section
4-14 2.04 of this Act.
4-15 SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. (a) Each
4-16 director shall serve his term of office as herein provided, and
4-17 thereafter until his successor shall be appointed or elected and
4-18 qualified. Elections for the appropriate number of permanent
4-19 directors are to be held on the first Saturday in May of each
4-20 odd-numbered year. The directors serve until September 1 of the
4-21 second odd-numbered year after the date of the election.
4-22 (b) Notice of elections shall be given by the board of
4-23 directors by publishing a copy thereof once a week for two
4-24 consecutive weeks in a newspaper of general circulation in the
4-25 district, the first publication being at least 14 days prior to the
5-1 election.
5-2 (c) Owners of land within the district shall be the only
5-3 qualified voters in the confirmation election to be held under
5-4 Section 54.026, Water Code. Each qualified voter in such election
5-5 shall have one vote per 500 acres of land owned within the
5-6 district. This subsection applies in the event of division of the
5-7 district under Article 8 of this Act.
5-8 SECTION 2.05. QUALIFIED VOTERS. If any owner of over 500
5-9 acres of land within the district is a constitutional fund of the
5-10 state, the members of the state board responsible for administering
5-11 the land holdings of such fund shall each be qualified voters
5-12 within the district.
5-13 SECTION 2.06. QUALIFICATION OF DIRECTOR. Except for initial
5-14 directors, no person shall be qualified to serve as a director
5-15 unless he resides in and owns taxable property in the district.
5-16 Initial directors shall be over 18 years of age and residents of
5-17 either El Paso County or Travis County. No employee of the
5-18 district shall serve as director. Directors shall subscribe the
5-19 constitutional oath of office. Except for the initial directors,
5-20 each director shall give bond for the faithful performance of his
5-21 duties as is required by Section 54.116, Water Code, the cost of
5-22 which shall be paid by the district.
5-23 SECTION 2.07. MEETINGS AND ACTIONS OF BOARD. (a) The board
5-24 may establish regular meetings to conduct district business and may
5-25 hold special meetings at other times as the business of the
6-1 district requires. The board shall hold its meetings within the
6-2 district unless the board, by a majority vote at a public meeting,
6-3 votes to hold a meeting or meetings outside the district.
6-4 (b) A majority of the directors shall constitute a quorum of
6-5 the board. A vote of a majority of the quorum present shall be
6-6 necessary to pass on any question before the board. The board may
6-7 adopt bylaws to govern its affairs. The board may adopt a seal for
6-8 the district. The board may provide in the bylaws that, except for
6-9 the initial directors, each director shall receive a fee of $20 for
6-10 attending each meeting of the board, provided that not more than
6-11 $40 shall be paid to any director for meetings held in any one
6-12 calendar month.
6-13 SECTION 2.08. ORGANIZATION OF BOARD. The board of directors
6-14 shall elect from its members a president and a vice president of
6-15 the district and such other officers as in the judgment of the
6-16 board are necessary. The president shall be the chief executive
6-17 officer of the district and the presiding officer of the board and
6-18 shall have the same right to vote as any other director. The vice
6-19 president shall perform all duties and exercise all powers
6-20 conferred by this Act on the president when the president is absent
6-21 or fails or declines to act. The board shall also appoint a
6-22 secretary and a treasurer who may or may not be members of the
6-23 board, and it may combine such offices. The treasurer shall give
6-24 bond in the amount required by the board of directors, but in no
6-25 event less than $100,000. The condition of the bond shall be that
7-1 the treasurer will faithfully account for all money which comes
7-2 into the treasurer's custody. Until the district authorizes the
7-3 issuance of bonds, the amount of the official bond of the treasurer
7-4 may be fixed by the board of directors in an amount not less than
7-5 $5,000.
7-6 SECTION 2.09. INTEREST IN CONTRACT. A director who is
7-7 financially interested in a contract proposed to be executed by the
7-8 district for the purchase of property or services or for the
7-9 construction of facilities shall disclose the interest to the board
7-10 and may not vote on the acceptance of the contract.
7-11 SECTION 2.10. DISTRICT EMPLOYEES. The board shall have
7-12 authority to employ a general manager and all consulting engineers,
7-13 financial consultants, attorneys, and auditors. The general
7-14 manager shall be responsible for:
7-15 (1) administering the board's directives;
7-16 (2) keeping the district's records, including minutes
7-17 of board meetings;
7-18 (3) coordinating with federal, state, and local
7-19 agencies;
7-20 (4) developing plans and programs for the board's
7-21 approval;
7-22 (5) hiring, supervising, training, and discharging the
7-23 district's employees;
7-24 (6) obtaining technical, scientific, legal, fiscal,
7-25 and other professional services; and
8-1 (7) performing any other duties the board assigns.
8-2 SECTION 2.11. EMPLOYEE BONDS. (a) The general manager and
8-3 each employee of the district who is charged with the collection,
8-4 custody, or payment of any money of the district shall execute a
8-5 fidelity bond in an amount determined by the board and in a form
8-6 and with a surety approved by the board.
8-7 (b) The district shall pay the premium on each employee bond
8-8 under this section.
8-9 SECTION 2.12. PRINCIPAL OFFICE. Until such time as it
8-10 issues bonds, the district may maintain its principal office in
8-11 either El Paso County or Travis County, provided that, if the
8-12 district maintains its principal office in Travis County, it shall
8-13 maintain duplicate records in El Paso County, and the duplicate
8-14 records shall be available for inspection during regular business
8-15 hours. After it issues bonds, the district shall maintain its
8-16 office in El Paso County.
8-17 SECTION 2.13. RECORDS. (a) The district shall keep at its
8-18 principal office:
8-19 (1) complete and accurate accounts of its business
8-20 transactions in accordance with generally accepted methods of
8-21 accounting;
8-22 (2) complete and accurate minutes of its meetings; and
8-23 (3) its contracts, documents, and other records.
8-24 (b) The district shall permit reasonable public inspection
8-25 of its records during regular business hours.
9-1 SECTION 2.14. SUIT. The district may sue and be sued in its
9-2 corporate name.
9-3 ARTICLE 3. POWERS AND DUTIES
9-4 SECTION 3.01. POWERS AND DUTIES. (a) The district shall:
9-5 (1) administer and enforce the terms of this Act;
9-6 (2) use its facilities and powers to accomplish the
9-7 purposes of this Act;
9-8 (3) coordinate the provision of water, wastewater, and
9-9 drainage services; and
9-10 (4) control and abate water pollution within the
9-11 district.
9-12 (b) In designing utility infrastructure and related systems,
9-13 the district shall submit for review to any municipal corporation
9-14 with a population in excess of 300,000 according to the most recent
9-15 federal census, provided the corporate boundary of such municipal
9-16 corporation is contiguous to the district, its design plans and
9-17 specifications for the utility infrastructure and related systems.
9-18 In connection with the submission, the district shall pay to the
9-19 municipal corporation the fee for review, if any, which has been
9-20 established by municipal ordinance and has general application for
9-21 reviews of this type, and the municipal corporation shall complete
9-22 its review of the design plans and specifications within 60 days
9-23 after their delivery. In connection with the construction of its
9-24 utility infrastructure, the district shall meet or exceed the
9-25 construction standards with regard to materials and installation
10-1 specifications of any municipal corporation with a population in
10-2 excess of 300,000 according to the most recent federal census,
10-3 provided the corporate boundary of such municipal corporation is
10-4 contiguous to the district.
10-5 (c) Subject only to the authority of the Texas Natural
10-6 Resource Conservation Commission, the district has the authority to
10-7 control and abate water pollution within the district. Such
10-8 authority of the district will neither reduce nor eliminate the
10-9 authority of a municipal corporation to control and abate water
10-10 pollution within the district under applicable state or federal
10-11 law.
10-12 (d) Except as expressly limited by this Act, the district
10-13 shall have all of the powers, rights, and privileges necessary and
10-14 convenient for accomplishing the purposes of this Act conferred by
10-15 general law on any municipal utility district or water control and
10-16 improvement district created under Section 59, Article XVI, Texas
10-17 Constitution.
10-18 (e) The powers granted to the district in this Act are
10-19 cumulative of all powers granted by other law.
10-20 SECTION 3.02. DISTRICT RULES. (a) The district may adopt
10-21 and enforce rules reasonably required to implement this Act,
10-22 including rules governing procedure and practice before the board.
10-23 (b) The district shall print its rules and furnish copies of
10-24 the rules to any person on written request.
10-25 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. In addition
11-1 to the powers conferred on it under Section 54.216, Water Code, the
11-2 district may enter public or private property in the district for
11-3 the purpose of inspecting and investigating conditions relating to
11-4 its authorized purposes under the same provisions and restrictions
11-5 applicable to the Texas Natural Resource Conservation Commission.
11-6 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may:
11-7 (1) hold hearings, receive evidence from any party in
11-8 interest who appears before the board, compel the attendance of
11-9 witnesses, and make findings of fact and determinations with
11-10 respect to administering this Act or any order or rule of the
11-11 district; and
11-12 (2) delegate to one or more of its members or
11-13 employees the authority to take testimony and administer oaths in
11-14 any hearing held or authorized to be held by the district.
11-15 (b) An order of the board must be:
11-16 (1) in the district's name; and
11-17 (2) attested by proper members of the board under the
11-18 district's rules.
11-19 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who
11-20 violates a rule, permit, or order of the district is subject to a
11-21 civil penalty of not less than $50 and not more than $1,000 for
11-22 each violation or each day of a continuing violation.
11-23 (b) The district may sue to enjoin a threatened or present
11-24 activity or to recover the penalty in a district court in the
11-25 county where the violation occurred. The penalty shall be paid to
12-1 the district.
12-2 SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.
12-3 (a) The district is authorized to acquire water appropriation
12-4 permits, construction permits, and other water and wastewater
12-5 discharge permits directly from the Texas Natural Resource
12-6 Conservation Commission or from owners of permits. The district is
12-7 also authorized to acquire water or a water supply from any person,
12-8 firm, corporation, municipal corporation, public agency, the State
12-9 of Texas, or the United States government or any of its agencies.
12-10 The district may, within the discretion of its board, contract with
12-11 one or more substantial users of water to acquire such water supply
12-12 under an agreed allocation of storage space between the district
12-13 and the user or may contract independently for the district's water
12-14 supply. The district is authorized to collect, transport, process,
12-15 dispose of, and control all domestic, industrial, or communal
12-16 wastes, whether in fluid, solid, or composite state. The district
12-17 is authorized to contract with any person, firm, corporation,
12-18 municipal corporation, public agency, the State of Texas, or the
12-19 United States government or any of its agencies for the collection,
12-20 transportation, processing, disposition, and control of all
12-21 domestic, industrial, or communal wastes. Such contracting
12-22 authority includes the authority to enter into coordinated
12-23 infrastructure plans or regional utility plans.
12-24 (b) The district is authorized to enter into contracts with
12-25 the State of Texas, cities and districts organized pursuant to
13-1 Section 59, Article XVI, Texas Constitution, and others for
13-2 supplying water or providing services pertaining to domestic,
13-3 industrial, or commercial wastes. The district is also authorized
13-4 to contract with any city, district, or other person for the rental
13-5 or leasing of or for the operation of the water production, water
13-6 supply, water filtration or purification, and water supply
13-7 facilities and facilities for providing services pertaining to the
13-8 wastes of the city, the district, or other person for such
13-9 consideration as the district and the city, the district, or other
13-10 person may agree on. Any such contract may be on such terms and
13-11 for such time as the parties may agree, and it may provide that it
13-12 shall continue in effect until bonds or notes specified therein and
13-13 refunding bonds issued in lieu of such bonds or notes are paid.
13-14 All such cities and districts are authorized to enter into such
13-15 contracts with the district to fix, charge, and collect fees,
13-16 rates, charges, rentals, and other amounts for any service or
13-17 facilities provided pursuant to or in connection with any contract
13-18 with this district and to pledge such amounts sufficient to make
13-19 all payments required under the contract.
13-20 (c) With regard to land use planning, the district shall
13-21 encourage owners and developers of land within the district to use
13-22 and develop their land and buildings in a manner consistent with
13-23 building codes, housing codes, fire codes, subdivision regulations,
13-24 zoning regulations, thoroughfare plans, water conservation plans,
13-25 land use plans, and other land development and safety regulations
14-1 of each adjacent municipal corporation with a population in excess
14-2 of 300,000 according to the most recent federal census.
14-3 SECTION 3.07. FACILITIES. In addition to authority
14-4 conferred on it under Sections 54.201 and 54.211, Water Code, the
14-5 district is authorized to purchase, construct, acquire, own, lease,
14-6 operate, maintain, repair, improve, and extend, at any location
14-7 inside or outside its boundaries, in the sole discretion of the
14-8 district, land and any interest in land, any and all works,
14-9 improvements, facilities, plants, equipment, and appliances
14-10 incident, helpful, or necessary to provide for: (1) the control,
14-11 storage, preservation, transmission, treatment, and distribution
14-12 and use of storm water and floodwater, the water of rivers and
14-13 streams, and underground water, for municipal, domestic,
14-14 industrial, and other beneficial uses; and (2) the collection,
14-15 transportation, processing, disposition, and control of domestic,
14-16 industrial, or commercial wastes. The district shall have the
14-17 authority to enter into any contract with any person, firm,
14-18 corporation, city, district, municipal corporation, public agency,
14-19 or other political subdivision and to perform any other act
14-20 consistent with the powers herein granted to carry out any such
14-21 power.
14-22 SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. The
14-23 district is authorized to use any public roadway, street, alley, or
14-24 easement in El Paso County to accomplish its purposes, without the
14-25 necessity of securing a franchise or other governmental agreement,
15-1 provided that, with regard to the use of public roadways, streets,
15-2 alleys, or easements which belong to an adjacent municipal
15-3 corporation with a population in excess of 300,000 according to the
15-4 most recent federal census, the district shall obtain the written
15-5 consent of the municipal corporation prior to use thereof, and,
15-6 with regard to the use of any roadway, street, alley, or easement
15-7 to which such a municipal corporation has exclusive rights,
15-8 district use shall be subject to payment of a fee equal to the
15-9 lesser of the district's pro rata share, based on actual area
15-10 encumbered, of the fair market value of or the initial purchase
15-11 price for such roadway, street, alley, or easement.
15-12 SECTION 3.09. RELOCATION OF FACILITIES. In the event that
15-13 the district in the exercise of its powers makes necessary the
15-14 relocation, raising, rerouting, or changing the grade of or
15-15 altering the construction of any highway, railroad, electric
15-16 transmission line, pipeline, canal, or drainage ditch, all such
15-17 necessary relocation, raising, rerouting, changing of grade, or
15-18 alteration of construction shall be accomplished at the sole
15-19 expense of the district unless otherwise agreed on in writing by
15-20 interested parties; however, in the case of replacement, the cost
15-21 of such action shall be limited to the comparable replacement of
15-22 any replaced facility, less the replaced facility's net salvage
15-23 value.
15-24 ARTICLE 4. GENERAL FISCAL PROVISIONS
15-25 SECTION 4.01. DISBURSEMENT OF MONEY. The district may
16-1 disburse money only by check, draft, order, or other instrument
16-2 signed by the person or persons authorized in the board's bylaws or
16-3 by board resolution.
16-4 SECTION 4.02. FEES AND CHARGES. The district may establish
16-5 fees and charges not to exceed the amounts necessary to enable the
16-6 district to fulfill the obligations imposed on it by this Act.
16-7 SECTION 4.03. LOANS AND GRANTS. The district may apply for
16-8 and receive loans and grants from the federal or the state
16-9 government or any agencies thereof, or from a private source, for
16-10 the purpose of carrying out one or more of its powers. The
16-11 district may enter into any agreement in connection with a loan or
16-12 grant that does not conflict with federal or state law.
16-13 SECTION 4.04. FISCAL YEAR. The board shall establish the
16-14 district's fiscal year.
16-15 SECTION 4.05. DEPOSITORY BANKS. (a) The board shall
16-16 designate one or more banks to serve as depository or depositories
16-17 for the funds of the district. Subject to Section 54.307, Water
16-18 Code, all funds of the district shall be deposited in the
16-19 depository bank or banks.
16-20 (b) Before designating a depository bank, the board shall
16-21 publish notice at least once in a newspaper of general circulation
16-22 in the district requesting applications from banks interested in
16-23 serving as a depository. The notice shall include the time and
16-24 location of the board meeting at which the board proposes to
16-25 designate a depository bank. The board shall prescribe the term of
17-1 service of a depository bank.
17-2 (c) At the time stated in the notice required by Subsection
17-3 (b) of this section, the board shall consider the applications
17-4 received and the management and condition of each bank that files
17-5 an application. The board may designate as a depository the bank
17-6 or banks that offer the most favorable terms and conditions for the
17-7 handling of the district's money and that have proper management
17-8 and the ability to handle the district's money properly.
17-9 Membership of an officer or director of a bank on the board of the
17-10 district does not disqualify the bank from being designated as a
17-11 depository. Service as an officer or director of a bank does not
17-12 disqualify the officer or director of the bank from membership on
17-13 the board of the district.
17-14 (d) If no application is received by the time stated in the
17-15 notice, the board may designate a bank or banks on such terms and
17-16 conditions as the board considers prudent.
17-17 ARTICLE 5. BOND AND TAX PROVISIONS
17-18 SECTION 5.01. TAX; REVENUE BONDS. (a) For the purpose of
17-19 carrying out any power or authority conferred by this Act, the
17-20 district may issue its bonds or other obligations in three general
17-21 classes:
17-22 (1) secured by ad valorem taxes;
17-23 (2) secured by a pledge of all or part of the revenues
17-24 accruing to the district, including without limitation those
17-25 received from sale of water or other products, rendition of
18-1 service, tolls, charges, and all other sources other than ad
18-2 valorem taxes; and
18-3 (3) secured by a combination pledge of all or part of
18-4 the revenues described in Subdivision (2) of this subsection and
18-5 taxes.
18-6 (b) The obligations shall be authorized by resolution of the
18-7 board and shall be issued in the name of the district, shall be
18-8 signed by the president or any vice president, shall be attested to
18-9 by the secretary, and shall bear the seal of the district. If
18-10 authorized by the board, the signatures of the president or any
18-11 vice president and of the secretary, or of both, may be printed or
18-12 lithographed on the obligations, and the seal of the district may
18-13 be impressed on the obligations or may be printed or lithographed
18-14 on the obligations. The obligations shall be in the form
18-15 prescribed by the board, shall be in any denomination or
18-16 denominations, shall mature serially or otherwise in not to exceed
18-17 50 years from their date, shall bear any interest, may be sold at a
18-18 price and under terms determined by the board to be the most
18-19 advantageous reasonably obtainable, may be made callable prior to
18-20 maturity, at the discretion of the board, at the times and prices
18-21 prescribed in the obligations, and may be made registrable as to
18-22 principal or as to both principal and interest. The obligations
18-23 may be further secured by an indenture of trust with a corporate
18-24 trustee.
18-25 (c) Obligations may be issued in more than one series and
19-1 from time to time, as required for carrying out the purposes of
19-2 this Act. Any pledge of revenue may reserve the right, under
19-3 conditions therein specified, to issue additional obligations which
19-4 will be on a parity with or subordinate to the obligations then
19-5 being issued.
19-6 (d) The district is an "issuer" for the purpose of
19-7 definitions in Chapter 656, Acts of the 68th Legislature, Regular
19-8 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).
19-9 (e) The resolution authorizing the obligations or the trust
19-10 indenture further securing the obligations may specify additional
19-11 provisions which shall constitute a contract between the district
19-12 and the owners of the obligations. The board shall have full
19-13 discretion in providing for the additional provisions, including
19-14 the authority to provide for a corporate trustee or receiver to
19-15 take possession of facilities of the district in the event of
19-16 default on the part of the district in fulfilling the covenants
19-17 therein made.
19-18 (f) The district shall not issue bonds secured by or
19-19 otherwise encumber permanent school fund land contained within the
19-20 boundaries of the district.
19-21 SECTION 5.02. BOND ANTICIPATION NOTES. The district may
19-22 issue bond anticipation notes from time to time for the purpose of
19-23 carrying out any one or more of its powers. Such bond anticipation
19-24 notes may or may not be secured by a pledge of all or part of the
19-25 revenues of the district. The district may from time to time
20-1 authorize the issuance of bonds for the purpose of providing
20-2 proceeds to pay the principal of and interest on bond anticipation
20-3 notes. Such bonds shall be secured by a pledge of all or part of
20-4 the revenues of the district and may be issued on a parity with or
20-5 subordinate to outstanding bonds of the issuer. If the resolution
20-6 or trust agreement authorizing the issuance of bond anticipation
20-7 notes contains a covenant to the effect that such notes shall be
20-8 payable from the proceeds of the subsequently issued bonds, it
20-9 shall not be necessary to demonstrate for the purposes of receiving
20-10 the approval of the attorney general or registration by the
20-11 comptroller that the revenues that may be pledged to such notes
20-12 will be sufficient to pay the principal of and interest on the
20-13 notes.
20-14 SECTION 5.03. REFUNDING BONDS. (a) The district may issue
20-15 refunding bonds to refund outstanding bonds and interest authorized
20-16 by this Act.
20-17 (b) Refunding bonds may:
20-18 (1) be issued to refund one or more series of
20-19 outstanding bonds;
20-20 (2) combine the pledges for the outstanding bonds for
20-21 the security of the refunding bonds; or
20-22 (3) be secured by other or additional revenues.
20-23 (c) The refunding bonds may be issued without having been
20-24 authorized at an election. The provisions of this Act applicable
20-25 to the district's issuance of other bonds, their security, their
21-1 approval by the attorney general, and the remedies of the holders
21-2 are applicable to refunding bonds.
21-3 (d) Refunding bonds shall be registered by the comptroller
21-4 on surrender and cancellation of the bonds to be refunded.
21-5 Alternatively, the resolution authorizing the issuance of refunding
21-6 bonds may provide that the bonds shall be sold and the resulting
21-7 proceeds deposited in the bank where the bonds to be refunded are
21-8 payable, in which case the refunding bonds may be issued in an
21-9 amount sufficient to pay the principal and interest of the bonds to
21-10 be refunded to their option or maturity date. The comptroller
21-11 shall register the refunding bonds without concurrent surrender and
21-12 cancellation of the bonds to be refunded.
21-13 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. District
21-14 bond review and approval shall be governed by the provisions of
21-15 Subchapter F, Chapter 54, Water Code.
21-16 SECTION 5.05. TAXATION. (a) Except for land owned by the
21-17 permanent school fund, the board may levy and collect ad valorem
21-18 taxes for the maintenance of the district and its improvements or
21-19 for administrative expenses of the district, or for both purposes,
21-20 in such amounts as are voted in accordance with this Act.
21-21 (b) The maintenance tax and administration tax shall not
21-22 exceed the maximum rate voted, and the authorized rate shall remain
21-23 in effect unless changed by subsequent vote.
21-24 SECTION 5.06. BONDS ARE AUTHORIZED INVESTMENTS. All bonds
21-25 and notes of the district shall be and are hereby declared to be
22-1 legal and authorized investments for banks, savings banks, trust
22-2 companies, savings and loan associations, insurance companies,
22-3 fiduciaries, trustees, and guardians and for the sinking funds of
22-4 cities, towns, villages, counties, school districts, or other
22-5 political corporations or subdivisions of the State of Texas. Such
22-6 bonds and notes shall be eligible to secure the deposit of any and
22-7 all public funds of the State of Texas and any and all public funds
22-8 of cities, towns, villages, counties, school districts, or other
22-9 political corporations or subdivisions of the State of Texas; and
22-10 such bonds shall be lawful and sufficient security for the deposits
22-11 to the extent of their value.
22-12 SECTION 5.07. PROPERTY: RENDITION; VALUATION; LEVY.
22-13 (a) The rendition and assessment of property for taxation, the
22-14 equalization of values, and the collection of taxes for the benefit
22-15 of the district shall be in accordance with the law applicable to
22-16 counties, insofar as such law can be made applicable, and except as
22-17 hereinafter specifically provided.
22-18 (b) The tax assessor-collector of each county shall act as
22-19 the tax assessor-collector for the district for property in the
22-20 district located in such county. It shall be the duty of the tax
22-21 assessor-collector in each county to cause to be placed on the
22-22 county tax rolls the additional column or columns needed to show
22-23 the taxes levied by the district and the amount thereof, based on
22-24 the value of the property as approved and equalized. The fee of
22-25 each county tax assessor-collector for assessing and collecting
23-1 taxes shall be one percent of the taxes collected, to be paid over
23-2 and disbursed in each county as are other fees of office.
23-3 (c) All the legal means available for the enforcement of
23-4 state and county taxes shall be available to the district. The
23-5 district shall have the right to cause the officers of each county
23-6 to enforce and collect the taxes due to the district in that county
23-7 as provided in the law for the enforcement of state and county
23-8 taxes.
23-9 (d) Taxes assessed and levied for the benefit of the
23-10 district shall be payable and shall become delinquent at the same
23-11 time, in the same manner, and subject to the same discount for
23-12 advance payment as taxes levied by and for the benefit of the
23-13 county in which the property is taxable. The fee for collecting
23-14 delinquent taxes through prosecution of suit shall be 15 percent of
23-15 the taxes collected by the suit, to be paid over and disbursed in
23-16 each county as are other fees of office.
23-17 (e) Concurrently with the levy of county taxes by the
23-18 commissioners courts, the board shall levy the tax on all taxable
23-19 property in the district which is subject to such taxation and
23-20 shall immediately certify the tax rate to the tax
23-21 assessor-collector of each county which lies inside the district.
23-22 ARTICLE 6. ADDITION OF LAND TO DISTRICT
23-23 SECTION 6.01. ANNEXATION. Notwithstanding any other
23-24 provision of law, other territory may be included in the district
23-25 as provided in Sections 6.02, 6.03, and 6.04 of this Act.
24-1 SECTION 6.02. PETITION. (a) The owner or owners of land
24-2 contiguous to the district or otherwise may file with the board a
24-3 petition requesting that there be included in the district the land
24-4 described in the petition by metes and bounds or by lot and block
24-5 number if there is a recorded plat of the area to be included in
24-6 the district.
24-7 (b) The petition of the landowner or landowners to add land
24-8 to the district shall be signed and executed in the manner provided
24-9 by law for the conveyance of real estate.
24-10 (c) The board shall hear and consider the petition and may
24-11 add to the district the land described in the petition if it is
24-12 considered to be to the advantage of the district and if the water
24-13 system and other improvements of the district are sufficient or
24-14 will be sufficient to supply the added land without injuring land
24-15 already in the district.
24-16 SECTION 6.03. NOTICE AND HEARING. (a) A petition
24-17 requesting the annexation of a defined area shall be filed with the
24-18 secretary of the board and shall be signed by a majority in value
24-19 of the owners of land in the defined area, as shown by the tax
24-20 rolls of the county or counties in which such area is located, or
24-21 signed by 50 landowners, if the number of landowners in the defined
24-22 area is more than 50.
24-23 (b) It shall be the duty of the board to pass an order
24-24 fixing a time and place at which the petition for annexation shall
24-25 be heard, which shall not be less than 15 days from the day of the
25-1 order calling the hearing.
25-2 (c) The secretary shall issue a notice setting forth the
25-3 time and place of the hearing and describing the area proposed to
25-4 be annexed. Notice of the hearing shall be given by posting copies
25-5 of the notice in three public places in the district and in one
25-6 public place in the area proposed to be annexed for at least seven
25-7 days before the day of the hearing and by publishing a copy of the
25-8 notice in a newspaper of general circulation in the county or
25-9 counties in which the area proposed to be annexed is located one
25-10 time at least seven days before the day of the hearing.
25-11 (d) If on the hearing of the petition it is found by the
25-12 board that the proposed annexation of the area to the district is
25-13 feasible and practicable and would be of benefit both to the area
25-14 and to the district, the board, by order entered in its minutes
25-15 describing the area to be annexed, may receive the proposed area as
25-16 an addition to and part of the district. The order adding the
25-17 proposed territory to the district need not include all of the land
25-18 described in the petition, if on the hearing a modification or
25-19 change is found necessary or desirable by the board.
25-20 SECTION 6.04. ANNEXATION ORDER. (a) A copy of the order
25-21 adding or annexing land to the district, signed by a majority of
25-22 the members of the board and attested to by the secretary of the
25-23 board, shall be filed and recorded in the deed records of the
25-24 county or counties in which the district is located if the land is
25-25 finally annexed to the district.
26-1 (b) After the order is recorded, the area shall be a part of
26-2 the district.
26-3 ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT
26-4 SECTION 7.01. PETITION. (a) Notwithstanding any other
26-5 provision of law, the board, provided there is no outstanding board
26-6 order regarding an election for the authorization of bonds payable
26-7 in whole or in part from taxes and/or provided the district does
26-8 not have any outstanding indebtedness secured by taxes or net
26-9 revenues of the district, may call a hearing on exclusion of land
26-10 from the district by petition of a landowner or on motion of the
26-11 board of directors.
26-12 (b) A petition for exclusion of land must accurately
26-13 describe the land to be excluded by metes and bounds or by
26-14 reference to a plat recorded in the plat records of the county or
26-15 counties in which the land is located. The petition must be signed
26-16 by the owner or owners of the land to be excluded, by at least 10
26-17 percent of the owners of land to be excluded, or by five or more of
26-18 the owners of land to be excluded if the number of owners is more
26-19 than 50, must be filed with the district at least 7 days before the
26-20 hearing on the petition for exclusion, and shall clearly state the
26-21 particular grounds on which exclusion is sought. Only the ground
26-22 stated in the petition shall be considered.
26-23 SECTION 7.02. NOTICE AND HEARING. (a) A hearing shall be
26-24 held on any petition for exclusion, but shall not be required for
26-25 exclusion by motion of the board.
27-1 (b) Notice of hearing shall be published by the board once a
27-2 week for two consecutive weeks in one or more newspapers of general
27-3 circulation in the district. The first publication shall appear at
27-4 least 14 days and not more than 40 days before the date of the
27-5 hearing.
27-6 (c) Before determining to exclude any land, the board shall
27-7 find that the district has no obligations that will be impaired by
27-8 the exclusion of the land, that the district will incur no
27-9 obligations because of the exclusion, and that the exclusion is in
27-10 the best interests of the district.
27-11 (d) After considering all engineering data and other
27-12 evidence presented to it, if the board makes the findings set forth
27-13 in Subsection (c) of this section, the board shall enter an order
27-14 excluding all land meeting the conditions and shall redefine the
27-15 boundaries of the district in order to embrace all land not
27-16 excluded. If the land to be excluded contains water or wastewater
27-17 customers of the district, such customers shall remain customers of
27-18 the district, and owners of lots to which water and wastewater
27-19 facilities have already been extended shall also be allowed to
27-20 connect to the district's system and shall be customers of the
27-21 district.
27-22 SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND.
27-23 (a) Except as provided by Subsection (c) of this section, an order
27-24 excluding land pursuant to a petition signed by the owner or owners
27-25 of the land to be excluded takes effect on the date the board
28-1 enters the order.
28-2 (b) Except as provided by Subsection (c) of this section, an
28-3 order excluding land pursuant to a petition signed by less than all
28-4 of the owners to be excluded takes effect:
28-5 (1) on the day following the deadline for submission
28-6 of a petition if the district does not receive a timely petition
28-7 under Subsection (b) of Section 7.04 of this Act; or
28-8 (2) on the day following the day the election returns
28-9 are canvassed if the district receives a timely petition under
28-10 Subsection (b) of Section 7.04 of this Act and the exclusion is
28-11 ratified at an election held for that purpose.
28-12 (c) Before an order excluding land under this section
28-13 becomes effective, all taxes levied and assessed by the district on
28-14 the land to be excluded shall be fully paid.
28-15 SECTION 7.04. PETITION FOR RATIFICATION ELECTION. (a) If
28-16 the board issues an order excluding land pursuant to a petition
28-17 signed by less than all of the owners of the land to be excluded,
28-18 the board shall publish notice describing the excluded land and
28-19 stating that the exclusion becomes final if the district does not
28-20 receive, within 25 days after the date of the board's order, a
28-21 petition requesting a ratification election that is signed by at
28-22 least 10 percent of the qualified voters that reside in the area to
28-23 be excluded.
28-24 (b) If the district receives, within 25 days after the date
28-25 of the board's order, a petition requesting a ratification election
29-1 that is signed by at least 10 percent of the qualified voters that
29-2 reside in the land area to be excluded, the order does not take
29-3 effect unless approved by a majority vote of the residents of the
29-4 district at a ratification election held for that purpose.
29-5 (c) The notice of the election, the manner and time of
29-6 giving the notice, the manner of holding the election, and
29-7 qualifications of the voters shall be governed by Subchapter E,
29-8 Chapter 51, Water Code.
29-9 ARTICLE 8. DIVISION OF DISTRICT
29-10 SECTION 8.01. CONDITIONS OF DIVISION. (a) The district may
29-11 from time to time, provided it does not have any outstanding
29-12 indebtedness secured by taxes or net revenues, divide into two or
29-13 more districts; however, no division shall occur that would result
29-14 in the creation of a district of less than 100 acres in size. On
29-15 petition of any landowner or on the board's own motion, the board
29-16 of directors may consider a proposal to divide the original
29-17 district or any district subsequently created by division.
29-18 (b) With regard to the foregoing authority to divide the
29-19 district into one or more districts, it is not the intent of this
29-20 Act to encourage or promote the proliferation of numerous utility
29-21 providers within the subject territory. Rather, this Act is
29-22 intended to encourage and promote orderly development within the
29-23 subject territory and to facilitate the provision of dependable,
29-24 efficient utility services at affordable rates to customers of the
29-25 district.
30-1 SECTION 8.02. ELECTION; AUTHORITY OF NEW DISTRICTS.
30-2 (a) After the board of the original district has agreed on the
30-3 terms and conditions of division, which shall include a plan for
30-4 the payment of any outstanding current obligations and performance
30-5 of any outstanding obligations of the original district, and has
30-6 prepared a metes and bounds description of the proposed districts,
30-7 it shall order an election to be held in the district to determine
30-8 whether the original district should be divided as proposed.
30-9 (b) The board of the original district shall be divided if a
30-10 majority of the qualified voters in the original district vote in
30-11 favor of the division. The resulting districts shall be designated
30-12 by consecutive letters following the number of the original
30-13 district. For example, Paseo del Este No. 1, if divided into two
30-14 districts, shall become Paseo del Este No. 1A and Paseo del Este
30-15 No. 1B. Each resulting district, in order to issue bonds payable
30-16 wholly or partially from ad valorem taxes, shall be required to
30-17 obtain authorization for the issuance of the bonds by a majority
30-18 vote of the qualified voters of the district voting in an election
30-19 called and held for that purpose. Notice of the election shall be
30-20 given as generally set forth for bond elections in Chapter 54,
30-21 Water Code. Each resulting district desiring to levy a maintenance
30-22 tax shall be required to obtain authorization for the tax by a
30-23 majority vote of the qualified voters of the district voting in an
30-24 election called and held for that purpose. Notice of the election
30-25 shall be given as generally set forth for such elections in Chapter
31-1 54, Water Code.
31-2 SECTION 8.03. APPOINTMENT AND ELECTION OF DIRECTORS.
31-3 (a) After the district is divided into two or more districts, the
31-4 resulting districts shall be separate districts and shall be
31-5 governed as separate districts, provided that, during a period of
31-6 90 days after the date of the election to approve division, the
31-7 board of the original district shall continue to act on behalf of
31-8 the original district to wind up its affairs. The board of the
31-9 original district shall appoint two initial directors to each
31-10 resulting district to serve terms expiring September 1 of the
31-11 second year after the creation of each resulting district, and the
31-12 board of the original district shall appoint three initial
31-13 directors to each resulting district to serve terms expiring
31-14 September 1 of the fourth year after creation of each resulting
31-15 district. A board member of the original district may be appointed
31-16 as a director of one of the resulting districts. In any election
31-17 held to confirm the creation of the district and appointment of
31-18 initial directors, Section 2.04 of this Act applies.
31-19 (b) If an initial director dies, resigns, or is otherwise
31-20 removed, the board of the new district shall appoint a successor to
31-21 serve the unexpired term. When a director's term expires, his
31-22 successor shall be elected as provided in Section 2.04 of this Act.
31-23 SECTION 8.04. PAYMENT OF DISTRICT DEBTS. After the division
31-24 of the original district into two or more districts, the current
31-25 obligations and any bond authorizations of the original district
32-1 are protected and are not impaired. The debts may be paid by
32-2 taxes, revenues, or assessments levied on the land in the original
32-3 district as if it had not divided or with contributions from each
32-4 of the resulting districts on terms stated in the division proposed
32-5 by the board and approved by the election under Section 8.02 of
32-6 this Act.
32-7 SECTION 8.05. AUTHORITY OF RESULTING DISTRICTS. After
32-8 division, each of the resulting districts shall have the power to
32-9 incur and pay debts created by each district and shall in every
32-10 respect have the full power and authority of a district created and
32-11 governed by the provisions of this Act. Each of the resulting
32-12 districts shall have the authority to contract with one another for
32-13 the provision of water and wastewater services and for such other
32-14 matters as the board of directors of each of the districts deems
32-15 appropriate.
32-16 SECTION 8.06. ASSUMPTION OF OBLIGATIONS. After division,
32-17 each of the resulting districts shall assume the obligations of the
32-18 original district under any agreements or resolutions consenting to
32-19 the creation of the original district to the extent that such
32-20 agreements and resolutions do not impose obligations that limit the
32-21 district's powers and authority to issue bonds for any purpose
32-22 authorized by this Act. Any other obligations of the original
32-23 district shall be divided pro rata among the resulting districts
32-24 either on an acreage basis or on such other terms as are
32-25 satisfactory to the resulting districts.
33-1 SECTION 8.07. NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION
33-2 COMMISSION. Within 30 days after a division election, the original
33-3 district that confirms a plan for division shall provide written
33-4 notice of such plan to the Texas Natural Resource Conservation
33-5 Commission.
33-6 ARTICLE 9. ANNEXATION AND DISSOLUTION OF DISTRICT
33-7 SECTION 9.01. ANNEXATION. (a) Notwithstanding any other
33-8 provision of law, on the annexation of the district or districts,
33-9 in the event of division under Article 8 of this Act, the annexing
33-10 municipality shall:
33-11 (1) assume all of the outstanding indebtedness of the
33-12 district;
33-13 (2) dissolve the district within six months of
33-14 annexation and become the owner of all district assets, including,
33-15 without limitation, all accounts receivable and the right to
33-16 collect all outstanding taxes, delinquent taxes, and other
33-17 indebtedness;
33-18 (3) refrain from imposing city taxes on property
33-19 located within the district at any time prior to dissolution of the
33-20 district;
33-21 (4) provide all city utility, emergency medical, fire,
33-22 police, garbage collection, and other standard municipal services
33-23 to residents of the district at the same rate as such services are
33-24 provided to in-city residents of similar developments; and
33-25 (5) with regard to zoning and other land use
34-1 regulation, honor regional land use planning within the district.
34-2 (b) Notwithstanding Subsection (a)(4) of this section, the
34-3 annexing municipality may, following annexation and dissolution of
34-4 the district, impose water supply fees, impact fees, and other
34-5 assessments allowed by state law on property previously located
34-6 within the district, provided that the annexing municipality shall
34-7 not impose any such fee or assessment on property which had
34-8 received a utility service allocation by the district or property
34-9 for which site development has been authorized or on which site
34-10 development has commenced.
34-11 (c) Immediately on annexation of the district, the district
34-12 shall transfer all district assets to the annexing municipal
34-13 corporation in accordance with the instruments approved by the
34-14 annexing municipal corporation and the district.
34-15 ARTICLE 10. AFFORDABLE HOUSING
34-16 SECTION 10.01. A minimum of five percent of the residential
34-17 housing units within the district shall be utilized for the
34-18 construction of affordable housing, such affordable housing to be
34-19 distributed among different residential areas within the district.
34-20 In this section, "affordable housing" means housing available to
34-21 those with low or very low income levels, as those levels are
34-22 determined periodically by the United States Department of Housing
34-23 and Urban Development based on the El Paso Standard Metropolitan
34-24 Statistical Area.
34-25 ARTICLE 11. MISCELLANEOUS PROVISIONS
35-1 SECTION 11.01. NO TAXATION. The accomplishment of the
35-2 purposes stated in this Act being for the benefit of the people of
35-3 this state and for the improvement of their properties and
35-4 industries, the district in carrying out the purposes of this Act
35-5 will be performing an essential public function under the
35-6 constitution and shall not be required to pay any tax or assessment
35-7 on the project or any part thereof, and the bonds or notes issued
35-8 under this Act and their transfer and the income therefrom,
35-9 including the profits made on the sale thereof, shall at all times
35-10 be free from taxation within this state.
35-11 SECTION 11.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
35-12 The proper and legal notice of the intention to introduce this Act,
35-13 setting forth the general substance of this Act, has been published
35-14 as provided by law, and the notice and a copy of this Act have been
35-15 furnished to all persons, agencies, officials, or entities to which
35-16 they are required to be furnished by the constitution and other
35-17 laws of this state, including the governor. All requirements of
35-18 the constitution and laws of this state and the rules and
35-19 procedures of the legislature with respect to the notice,
35-20 introduction, and passage of this Act are fulfilled and
35-21 accomplished.
35-22 SECTION 11.03. SEVERABILITY. If any word, phrase, clause,
35-23 sentence, paragraph, section, or other part of this Act or the
35-24 application thereof to any person or circumstance shall ever be
35-25 held to be invalid or unconstitutional by a court of competent
36-1 jurisdiction in this state, the remainder of the Act and the
36-2 application of such word, phrase, clause, sentence, paragraph,
36-3 section, or other part of this Act to other persons or
36-4 circumstances shall not be affected thereby. To the extent of a
36-5 conflict between a provision of this Act and any other law or
36-6 statute, this Act shall control.
36-7 SECTION 11.04. EMERGENCY. The importance of this
36-8 legislation and the crowded condition of the calendars in both
36-9 houses create an emergency and an imperative public necessity that
36-10 the constitutional rule requiring bills to be read on three several
36-11 days in each house be suspended, and this rule is hereby suspended,
36-12 and that this Act take effect and be in force from and after its
36-13 passage, and it is so enacted.