By:  Rosson                                           S.B. No. 1663
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the creation, administration, powers, duties,
    1-2  operation, and financing of the Paseo del Este Municipal Utility
    1-3  District, and the extraterritorial jurisdiction of certain
    1-4  municipalities.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6                    ARTICLE I.  GENERAL PROVISIONS
    1-7        SECTION 1.01.  CREATION.  (a)  By virtue of Article XVI,
    1-8  Section 59, 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.  The
   1-12  requirements in Chapters 51 and 54, Texas Water Code, for
   1-13  confirmation and initial director elections shall not apply to the
   1-14  district.
   1-15        (b)  The district is created under and is essential to
   1-16  accomplish the purposes of Article XVI, Section 59, Texas
   1-17  Constitution.  The district shall have all of the powers of
   1-18  municipal utility districts established under Chapter 54, Texas
   1-19  Water Code, and the district shall conduct its affairs subject to
   1-20  Chapters 51 and 54, Texas Water Code, unless otherwise provided in
   1-21  this Act.
   1-22        SECTION 1.02.  TERRITORY.  (a)  The district shall comprise
   1-23  all of the following territory:  Section 315 1/2, C. D. Stewart
    2-1  Survey, El Paso County, Texas; Parcels A, B-1 and C-1, Section 317,
    2-2  C. D. Stewart Survey, El Paso County, Texas, as described in deed
    2-3  from EP Covington Capital Corp. to the State of Texas, recorded in
    2-4  Volume 2249, Page 1815, Real Property Records of El Paso County,
    2-5  Texas; Section 318, C. D. Stewart Survey, El Paso County, Texas;
    2-6  Section 319, C. D. Stewart Survey, El Paso County, Texas; Parcels
    2-7  B-2 and C-2, Section 316, O. A. Danielson Survey, El Paso County,
    2-8  Texas, as described in deed from EP Covington Capital Corp. to the
    2-9  State of Texas, recorded in Volume 2249, Page 1815, Real Property
   2-10  Records of El Paso County, Texas; all of the south one-half of
   2-11  Section 18, Texas and Pacific Railroad Company Survey, Block 79,
   2-12  Township 3, El Paso County, Texas; all of the northeast one-fourth
   2-13  of Section 18, Texas and Pacific Railroad Company Survey, Block 79,
   2-14  Township 3, El Paso County, Texas; all of the southwest one-fourth
   2-15  of Section 21, Texas and Pacific Railroad Company Survey, Block 79,
   2-16  Township 3, El Paso County, Texas; Tracts 1, 2 and 3, Section 21,
   2-17  Texas and Pacific Railroad Company Survey, Block 79, Township 3, El
   2-18  Paso County, Texas, as described in deed from MBJR Trust and Barry
   2-19  Lang to the State of Texas, recorded in Volume 2595, Page 1517,
   2-20  Real Property Records of El Paso County, Texas; part of Section 21,
   2-21  Texas and Pacific Railroad Company Survey, Block 79, Township 3, El
   2-22  Paso County, Texas, as described in deed from Socorro Independent
   2-23  School District to the State of Texas, recorded in Volume 2361,
   2-24  Page 831, Real Property Records of El Paso County, Texas; all of
   2-25  Section 22, Texas and Pacific Railroad Company Survey, Block 79,
    3-1  Township 3, El Paso County, Texas, SAVE AND EXCEPT:  (1) 7.889
    3-2  acres, being the remainder of a 38.18 acre tract, as described in
    3-3  deed from Texas Pacific Land Trust to Socorro Independent School
    3-4  District, recorded in Volume 1302, Page 769, Real Property Records
    3-5  of El Paso County, Texas, (2) Tracts 2 and 3, as described in deed
    3-6  from the State of Texas to 375/10 Texas Land L. P., recorded in
    3-7  Volume 2595, Page 1504, Real Property Records of El Paso County,
    3-8  Texas, and (3) Tracts 2 and 3, as described in deed from the State
    3-9  of Texas to MBJR Trust and Barry Lang, recorded in Volume 2595,
   3-10  Page 1517, Real Property Records of El Paso County, Texas.
   3-11        (b)  The legislature finds that the boundaries, patents
   3-12  and/or field notes of the district form a closure.  A mistake in
   3-13  the patents or field notes, or in copying the patents or field
   3-14  notes in the legislative process, does not affect the organization,
   3-15  existence, or validity of the district, the rights of the district
   3-16  to issue bonds or refunding bonds, or to pay the principal of or
   3-17  interest on the bonds, the right of the district to levy and
   3-18  collect taxes, or the legality or operation of the district or its
   3-19  board.
   3-20        (c)  Land included within the boundaries of a special utility
   3-21  district created under Article XVI, Section 59, which is subject to
   3-22  a district's outstanding indebtedness secured by taxes or net
   3-23  revenues on the effective date of this Act shall not be included
   3-24  within the district.  If the property described in subsection (a)
   3-25  includes any land subject to a tax or net revenue pledge by a
    4-1  district, it shall be excluded, and the remainder of this Act shall
    4-2  not be affected thereby.
    4-3                ARTICLE II.  ADMINISTRATIVE PROVISIONS
    4-4        SECTION 2.01.  BOARD.  The district shall be governed by, and
    4-5  all powers of the district shall be exercised by, a board of five
    4-6  directors.
    4-7        SECTION 2.02.  DIRECTOR ELIGIBILITY.  Other than initial
    4-8  directors, to be eligible for appointment as a director, a person
    4-9  must be a resident of El Paso County.  To be eligible for
   4-10  appointment as an initial director, a person must be a resident of
   4-11  El Paso County or Travis County.
   4-12        SECTION 2.03.  TERMS OF DIRECTORS AND APPOINTMENT PROCEDURES.
   4-13  (a)  Other than initial directors, directors serve staggered terms
   4-14  of four years, with terms expiring September 1 of each odd-numbered
   4-15  year.
   4-16        (b)  Appointment of initial directors shall be made promptly
   4-17  by the School Land Board after this Act takes effect.  The School
   4-18  Land Board shall appoint two initial directors to serve terms
   4-19  expiring September 1, 1997, and three initial directors to serve
   4-20  terms expiring September 1, 2001.  If an initial director dies,
   4-21  resigns, or is otherwise removed, the School Land Board shall
   4-22  appoint a successor to serve the unexpired term.  When a director's
   4-23  term expires, his successor shall be elected as provided in Section
   4-24  5 of this Act.
   4-25        SECTION 2.04.  ELECTION OF PERMANENT DIRECTORS.
    5-1        (a)  Each director shall serve his term of office as herein
    5-2  provided, and thereafter until his successor shall be appointed or
    5-3  elected and qualified.  Elections for permanent directors are to be
    5-4  held on the uniform dates for elections set forth in Section
    5-5  41.001, Election Code.  Upon election of permanent directors, the
    5-6  directors shall serve until September of the second odd-numbered
    5-7  year after the expiration of two years from the date of the
    5-8  election.
    5-9        (b)  Notice of elections shall be given by the board of
   5-10  directors by publishing a copy thereof once a week for two
   5-11  consecutive weeks in a newspaper of general circulation in the
   5-12  district, the first publication being at least 14 days prior to the
   5-13  election.
   5-14        SECTION 2.05.  QUALIFICATION OF DIRECTOR.  Except for initial
   5-15  directors, no person shall be qualified to serve as a director
   5-16  unless he resides in and owns taxable property in the district.
   5-17  Initial directors shall be over 18 years of age and residents of
   5-18  either El Paso County or Travis County.  No employee of the
   5-19  district shall serve as director.  Such directors shall subscribe
   5-20  the constitutional oath of office.  Except for the initial
   5-21  directors, each director shall give bond for the faithful
   5-22  performance of his duties as is required by Section 51.079, Texas
   5-23  Water Code, the cost of which shall be paid by the district.
   5-24        SECTION 2.06.  MEETINGS AND ACTIONS OF BOARD.  (a)  The board
   5-25  may establish regular meetings to conduct district business and may
    6-1  hold special meetings at other times as the business of the
    6-2  district requires.  The board shall hold its meetings within the
    6-3  district unless the board, by a majority vote at a public meeting,
    6-4  votes to hold a meeting or meetings outside the district.
    6-5        (b)  A majority of the directors shall constitute a quorum of
    6-6  the board.  A vote of a majority of the quorum present shall be
    6-7  necessary to pass on any question before the board.  The board may
    6-8  adopt bylaws to govern its affairs.  The board may adopt a seal for
    6-9  the district.  The board may provide in the bylaws that, except for
   6-10  the initial directors, each director shall receive a fee of $20 for
   6-11  attending each meeting of the board, provided that not more than
   6-12  $40 shall be paid to any director for meetings held in any one
   6-13  calendar month.
   6-14        SECTION 2.07.  ORGANIZATION OF BOARD.  The board of directors
   6-15  shall elect from its members a president and a vice-president of
   6-16  the district, and such other officers as in the judgment of the
   6-17  board are necessary.  The president shall be the chief executive
   6-18  officer of the district and the presiding officer of the board and
   6-19  shall have the same right to vote as any other director.  The
   6-20  vice-president shall perform all duties and exercise all powers
   6-21  conferred by this Act upon the president when the president is
   6-22  absent or fails or declines to act.  The board shall also appoint a
   6-23  secretary and a treasurer who may or may not be members of the
   6-24  board, and it may combine such offices.  Except for the initial
   6-25  treasurer, the treasurer shall give bond in such amount as may be
    7-1  required by the board of directors, but in no event less than
    7-2  $100,000.  The condition of such bond shall be that he will
    7-3  faithfully account for all money which shall come into his custody
    7-4  as treasurer of the district.  Until the district shall have
    7-5  authorized the issuance of bonds, the amount of the official bond
    7-6  of the treasurer may be fixed by the board of directors in any
    7-7  amount not less than $5,000.
    7-8        SECTION 2.08.  INTEREST IN CONTRACT.  A director who is
    7-9  financially interested in a contract proposed to be executed by the
   7-10  district for the purchase of property or services or the
   7-11  construction of facilities shall disclose the interest to the board
   7-12  and may not vote on the acceptance of the contract.
   7-13        SECTION 2.09.  DISTRICT EMPLOYEES.  The board shall have
   7-14  authority to employ a general manager and all consulting engineers,
   7-15  financial consultants, attorneys, and auditors.  The general
   7-16  manager shall be responsible for:
   7-17        (a)  administering the board's directives;
   7-18        (b)  keeping the district's records, including minutes of
   7-19  board meetings;
   7-20        (c)  coordinating with federal, state, and local agencies;
   7-21        (d)  developing plans and programs for the board's approval;
   7-22        (e)  hiring, supervising, training, and discharging the
   7-23  district's employees;
   7-24        (f)  obtaining technical, scientific, legal, fiscal, and
   7-25  other professional services; and
    8-1        (g)  performing any other duties the board assigns.
    8-2        SECTION 2.10.  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 2.11.  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, if the district
   8-12  maintains its principal office in Travis County, it shall maintain
   8-13  duplicate records in El Paso County, and the duplicate records
   8-14  shall be available for inspection during regular business hours.
   8-15  After it issues bonds, the district shall maintain its office in El
   8-16  Paso County.
   8-17        SECTION 2.12.  RECORDS.  (a)  The district shall keep:
   8-18              (1)  complete and accurate accounts of its business
   8-19  transactions in accordance with generally accepted methods of
   8-20  accounting;
   8-21              (2)  complete and accurate minutes of its meetings; and
   8-22              (3)  its accounts, contracts, documents, minutes, and
   8-23  other records at its principal office.
   8-24        (b)  The district shall permit reasonable public inspection
   8-25  of its records during regular business hours.
    9-1        SECTION 2.13.  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.  (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)  The creation of a local government, political
   9-13  subdivision, or municipal corporation within the district, or
   9-14  annexation of district territory by a local government, political
   9-15  subdivision, or municipal corporation is prohibited unless approved
   9-16  by board resolution.
   9-17        (c)  Subject only to the authority of the Texas Natural
   9-18  Resource Conservation Commission, the district has exclusive
   9-19  authority to control and abate water pollution within the district.
   9-20        (d)  Except as expressly limited by this Act, the district
   9-21  shall have all of the powers, rights, and privileges necessary and
   9-22  convenient for accomplishing the purposes of this Act conferred by
   9-23  general law upon any conservation and reclamation district created
   9-24  under Article XVI, Section 59, Texas Constitution.
   9-25        (e)  The powers granted to the district in this Act are
   10-1  cumulative of all powers granted by other law.
   10-2        SECTION 3.02.  DISTRICT RULES.  (a)  The district may adopt
   10-3  and enforce rules reasonably required to implement this Act,
   10-4  including rules governing procedure and practice before the board.
   10-5        (b)  The district shall print its rules and furnish copies of
   10-6  the rules to any person on written request.
   10-7        SECTION 3.03.  INSPECTIONS AND INVESTIGATIONS.  The district
   10-8  may enter public or private property in the district for the
   10-9  purpose of inspecting and investigating conditions relating to its
  10-10  authorized purposes under the same provisions and restrictions
  10-11  applicable to the Texas Natural Resource Conservation Commission.
  10-12        SECTION 3.04.  HEARING AND ORDER.  (a)  The board may:
  10-13              (1)  hold hearings, receive evidence from any party in
  10-14  interest who appears before the board, compel the attendance of
  10-15  witnesses, and make findings of fact and determinations with
  10-16  respect to administering this Act or any order of rule of the
  10-17  district; and
  10-18              (2)  delegate to one or more of its members or
  10-19  employees the authority to take testimony and administer oaths in
  10-20  any hearing held or authorized to be held by the district.
  10-21        (b)  An order of the board must be:
  10-22              (1)  in the district's name; and
  10-23              (2)  attested by proper members of the board under the
  10-24  district's rules.
  10-25        SECTION 3.05.  CIVIL PENALTY; INJUNCTION.  (a)  A person who
   11-1  violates a rule, permit, or order of the district is subject to a
   11-2  civil penalty of not less than $50 and not more than $1,000 for
   11-3  each violation or each day of a continuing violation.
   11-4        (b)  The district may sue to enjoin a threatened or present
   11-5  activity, or to recover the penalty, in a district court in the
   11-6  county where the violation occurred.  The penalty shall be paid to
   11-7  the district.
   11-8        SECTION 3.06.  PERMITS/CONTRACTS/COOPERATIVE AGREEMENTS.
   11-9  (a)  The district is authorized to acquire water appropriation
  11-10  permits, construction permits and other water and wastewater
  11-11  discharge permits directly from the Texas Natural Resource
  11-12  Conservation Commission or from owners of permits.  The district is
  11-13  also authorized to acquire water or a water supply from any person,
  11-14  firm, corporation, municipal corporation, public agency, the State
  11-15  of Texas, or from the United States government or any of its
  11-16  agencies.  The district may, within the discretion of its board,
  11-17  contract with one or more substantial users of water to acquire
  11-18  such water supply on an agreed allocation of storage space as
  11-19  between the district and such user, or may contract independently
  11-20  for the district's water supply.  The district is authorized to
  11-21  collect, transport, process, dispose of, and control all domestic,
  11-22  industrial, or communal wastes, whether in fluid, solid, or
  11-23  composite state.  The district is authorized to contract with any
  11-24  person, firm, corporation, municipal corporation, public agency,
  11-25  the State of Texas, or from the United States government or any of
   12-1  its agencies for the collection, transportation, processing,
   12-2  disposition of, and control of all domestic, industrial, or
   12-3  communal wastes.
   12-4        (b)  The district is authorized to enter into contracts with
   12-5  the State of Texas, cities and districts organized pursuant to
   12-6  Article XVI, Section 59, Texas Constitution, and others for
   12-7  supplying water or providing services pertaining to domestic,
   12-8  industrial, or commercial wastes.  The district is also authorized
   12-9  to contract with any city, district, or other person for the rental
  12-10  or leasing of, or for the operation of the water production, water
  12-11  supply, water filtration, or purification, and water supply
  12-12  facilities and facilities for providing services pertaining to such
  12-13  wastes of such city, such district, or other person upon such
  12-14  consideration as the district and the city, the district, or other
  12-15  person may agree.  Any such contract may be upon such terms and for
  12-16  such time as the parties may agree, and it may provide that it
  12-17  shall continue in effect until bonds or notes specified therein and
  12-18  refunding bonds issued in lieu of such bonds or notes are paid.
  12-19  All such cities and districts are authorized to enter into such
  12-20  contracts with the district and to fix, charge, and collect fees,
  12-21  rates, charges, rentals, and other amounts for any service or
  12-22  facilities provided pursuant to or in connection with any contract
  12-23  with this district, and to pledge such amounts sufficient to make
  12-24  all payments required under the contract.
  12-25        SECTION 3.07.  FACILITIES.  The district is authorized to
   13-1  purchase, construct, acquire, own, lease, operate, maintain,
   13-2  repair, improve, and extend inside and outside its boundaries, at
   13-3  any location whatsoever, in the sole discretion of the district,
   13-4  land and any interest in land, any and all works, improvements,
   13-5  facilities, plants, equipment, and appliances incident, helpful, or
   13-6  necessary to provide for:  (1) the control, storage, preservation,
   13-7  transmission, treatment, and distribution and use of storm water
   13-8  and floodwater, the water of rivers and streams, and underground
   13-9  water, for municipal, domestic, industrial, and other beneficial
  13-10  uses, and (2) the collection, transportation, processing,
  13-11  disposition, and control of domestic, industrial, or commercial
  13-12  wastes.  The district shall have the authority to enter into any
  13-13  contract with any person, firm, corporation, city, district,
  13-14  municipal corporation, public agency, or other political
  13-15  subdivision, and to perform any other act consistent with the
  13-16  powers herein granted to carry out any such power.
  13-17        SECTION 3.08.  ACQUISITION AND DISPOSITION OF PROPERTY.  The
  13-18  district is authorized to use any public roadway, street, alley, or
  13-19  easement in El Paso County to accomplish its purposes, without the
  13-20  necessity of securing a franchise or other governmental agreement.
  13-21        SECTION 3.09.  RELOCATION OF FACILITIES.  In the event that
  13-22  the district, in the exercise of its powers, makes necessary the
  13-23  relocation, raising, rerouting, or changing the grade of, or
  13-24  altering the construction of any highway, railroad, electric
  13-25  transmission line, pipeline, canal, or drainage ditch, all such
   14-1  necessary relocation, raising, rerouting, changing of grade, or
   14-2  alteration of construction shall be accomplished at the sole
   14-3  expense of the district, unless otherwise agreed upon in writing by
   14-4  interested parties; provided, however, in the case of replacement,
   14-5  the cost of such action shall be limited to the comparable
   14-6  replacement of any replaced facility, less the replaced facility's
   14-7  net salvage value.
   14-8        SECTION 3.10.  CONSTRUCTION CONTRACTS.  Any construction
   14-9  contract requiring an expenditure of more than $50,000 shall be
  14-10  made after publication of a notice to bidders once each week for a
  14-11  minimum of two weeks before awarding the contract.  Such notice
  14-12  shall be sufficient if it states the time and place when and where
  14-13  the bids will be opened, the general nature of the work to be done,
  14-14  or the material, equipment, or supplies to be purchased, and states
  14-15  where and the terms upon which copies of the plans and
  14-16  specifications may be obtained. The publication shall be in a
  14-17  newspaper of general circulation published in the district and
  14-18  designated by the board of directors.  It shall not be necessary to
  14-19  advertise work to be performed in an emergency situation.
  14-20                 ARTICLE 4.  GENERAL FISCAL PROVISIONS
  14-21        SECTION 4.01.  DISBURSEMENT OF MONEY.  The district may
  14-22  disburse money only by check, draft, order, or other instrument
  14-23  signed by the person or persons authorized in the board's bylaws or
  14-24  by board resolution.
  14-25        SECTION 4.02.  FEES AND CHARGES.  The district may establish
   15-1  fees and charges not to exceed the amounts necessary to enable the
   15-2  district to fulfill the obligations imposed on it by this Act.
   15-3        SECTION 4.03.  LOANS AND GRANTS.  The district may apply for
   15-4  and receive loans and grants from the federal government, the state
   15-5  government, or any agencies thereof, or from a private source, for
   15-6  the purpose of carrying out one or more of its powers.  The
   15-7  district may enter into any agreement in connection with a loan or
   15-8  grant that does not conflict with federal or state law.
   15-9        SECTION 4.04.  FISCAL YEAR.  The board shall establish the
  15-10  district's fiscal year.
  15-11        SECTION 4.05.  INDEPENDENT AUDIT AND REPORT.  (a)  The board
  15-12  shall have an audit of the district's affairs for each fiscal year
  15-13  prepared by an independent certified public accountant of
  15-14  recognized integrity and ability.
  15-15        (b)  The district shall keep at least one copy of the most
  15-16  recent audit at the district's office.
  15-17        (c)  The district shall make a copy of the most recent audit
  15-18  available for inspection by any interested person during regular
  15-19  business hours.
  15-20        SECTION 4.06.  DEPOSITORY BANKS.  (a)  The board shall
  15-21  designate one or more banks to serve as depository or depositories
  15-22  for the funds of the district.  All funds of the district shall be
  15-23  deposited in such depository bank or banks, except that funds
  15-24  pledged to pay bonds or notes may be deposited with trustee banks
  15-25  named in the trust agreement or bond or note resolution, and except
   16-1  that funds shall be remitted to the bank of payment for the payment
   16-2  of principal of and interest on bonds and notes.  To the extent
   16-3  that funds in the depository banks and a trustee bank are not
   16-4  insured by the Federal Deposit Insurance Corporation they shall be
   16-5  secured in the manner provided by law for the security of state
   16-6  funds.
   16-7        (b)  Before designating a depository bank, the board shall
   16-8  publish notice at least once in a newspaper of general circulation
   16-9  in the district requesting applications from banks interested in
  16-10  serving as a depository.  The notice shall include the time and
  16-11  location of the board meeting at which the board proposes to
  16-12  designate a depository bank.  The board shall prescribe the term of
  16-13  service of a depository bank.
  16-14        (c)  At the time stated in the notice required by subsection
  16-15  (b) of this section, the board shall consider the applications
  16-16  received and the management and condition of each bank that files
  16-17  an application.  The board may designate as a depository the bank
  16-18  or banks that offer the most favorable terms and conditions for the
  16-19  handling of the district's money and that have proper management
  16-20  and the ability to properly handle the district's money.
  16-21  Membership of an officer or director of a bank on the board of the
  16-22  district does not disqualify the bank from being designated as a
  16-23  depository.
  16-24        (d)  If no application is received by the time stated in the
  16-25  notice, the board may designate a bank or banks on such terms and
   17-1  conditions as the board considers prudent.
   17-2                  ARTICLE 5.  BOND AND TAX PROVISIONS
   17-3        SECTION 5.01.  TAX/REVENUE BONDS.  (a)  For the purpose of
   17-4  carrying out any power or authority conferred by this Act, the
   17-5  district may issue its bonds or other obligations in three general
   17-6  classes:
   17-7              (1)  secured by ad valorem taxes;
   17-8              (2)  secured by a pledge of all or part of the revenues
   17-9  accruing to the district, including without limitation those
  17-10  received from sale of water or other products, rendition of
  17-11  service, tolls, charges, and from all other sources other than ad
  17-12  valorem taxes; and
  17-13              (3)  secured by a combination pledge of all or part of
  17-14  the revenues described in Subdivision (2) of this subsection, and
  17-15  taxes.
  17-16        (b)  The obligations shall be authorized by resolution of the
  17-17  board and shall be issued in the name of the district, shall be
  17-18  signed by the president or any vice-president, shall be attested by
  17-19  the secretary, and shall bear the seal of the district.  If
  17-20  authorized by the board, the signatures of the president, or any
  17-21  vice-president, and the secretary or of both may be printed or
  17-22  lithographed on the obligations, and the seal of the district may
  17-23  be impressed on the obligations or may be printed or lithographed
  17-24  on the obligations.  The obligations shall be in the form
  17-25  prescribed by the board, shall be in any denomination or
   18-1  denominations, shall mature serially or otherwise in not to exceed
   18-2  50 years from their date, shall bear any interest, and may be sold
   18-3  at a price and under terms determined by the board to be the most
   18-4  advantageous reasonably obtainable, and within the discretion of
   18-5  the board, may be made callable prior to maturity at the times and
   18-6  prices prescribed in the obligations, and may be made registrable
   18-7  as to principal or as to both principal and interest.  The
   18-8  obligations may be further secured by an indenture of trust with a
   18-9  corporate trustee.
  18-10        (c)  Obligations may be issued in more than one series, and
  18-11  from time to time, as required for carrying out the purposes of
  18-12  this Act.  Any pledge of revenue may reserve the right, under
  18-13  conditions therein specified, to issue additional obligations which
  18-14  will be on a parity with or subordinate to the obligations then
  18-15  being issued.
  18-16        (d)  The district is an "issuer" for the purpose of
  18-17  definitions in Article 717q, Revised Statutes.
  18-18        (e)  The resolution authorizing the obligations or the trust
  18-19  indenture further securing the obligations may specify additional
  18-20  provisions which shall constitute a contract between the district
  18-21  and the owners of such obligations.  The board shall have full
  18-22  discretion in providing for the additional provisions, including
  18-23  the authority to provide for a corporate trustee or receiver to
  18-24  take possession of facilities of the district in the event of
  18-25  default on the part of the district in fulfilling the covenants
   19-1  therein made.
   19-2        (f)  The district shall not issue bonds or otherwise encumber
   19-3  Permanent School Fund land contained within the boundaries of the
   19-4  district.
   19-5        SECTION 5.02.  BOND ANTICIPATION NOTES.  The district may
   19-6  issue bond anticipation notes from time to time for the purpose of
   19-7  carrying out any one or more of its powers.  Such bond anticipation
   19-8  notes may or may not be secured by a pledge of all or part of
   19-9  revenues of the district.  The district may from time to time
  19-10  authorize the issuance of bonds for the purpose of providing
  19-11  proceeds to pay the principal of and interest on bond anticipation
  19-12  notes.  Such bonds shall be secured by a pledge of all or part of
  19-13  the revenues of the district, and may be issued on a parity with or
  19-14  subordinate to outstanding bonds of the issuer.  If the resolution
  19-15  or trust agreement authorizing the issuance of bond anticipation
  19-16  notes contains a covenant to the effect that such notes shall be
  19-17  payable from the proceeds of the subsequently issued bonds, it
  19-18  shall not be necessary to demonstrate for the purposes of receiving
  19-19  the approval of the attorney general or registration by the
  19-20  comptroller that the revenues that may be pledged to such notes
  19-21  will be sufficient to pay the principal of and interest on the
  19-22  notes.
  19-23        SECTION 5.03.  REFUNDING BONDS.  (a)  The district may issue
  19-24  refunding bonds to refund outstanding bonds and interest authorized
  19-25  by this Act.
   20-1        (b)  Refunding bonds may:
   20-2              (1)  be issued to refund one or more series of
   20-3  outstanding bonds;
   20-4              (2)  combine the pledges for the outstanding bonds for
   20-5  the security of the refunding bonds;
   20-6              (3)  be secured by other or additional revenues.
   20-7        (c)  The refunding bonds may be issued without having been
   20-8  authorized at an election.  The provisions of this Act applicable
   20-9  to the district's issuance of other bonds, their security, their
  20-10  approval by the attorney general, and the remedies of the holders
  20-11  are applicable to refunding bonds.
  20-12        (d)  Refunding bonds shall be registered by the comptroller
  20-13  of public accounts on surrender and cancellation of the bonds to be
  20-14  refunded.  Alternatively, the resolution authorizing the issuance
  20-15  of refunding bonds may provide that the bonds shall be sold and the
  20-16  resulting proceeds deposited in the bank where the bonds to be
  20-17  refunded are payable, in which case the refunding bonds may be
  20-18  issued in an amount sufficient to pay the principal and interest of
  20-19  the bonds to be refunded to their option or maturity date.  The
  20-20  comptroller of public accounts shall register the refunding bonds
  20-21  without concurrent surrender and cancellation of the bonds to be
  20-22  refunded.
  20-23        SECTION 5.03.  APPROVAL AND REGISTRATION OF BONDS.  After the
  20-24  district authorizes any bonds, the district shall submit the bonds
  20-25  and the record relating to their issuance to the attorney general
   21-1  for approval.  If the bonds are secured by a pledge of the proceeds
   21-2  of a contract between the district and a municipality or other
   21-3  governmental agency, authority, or district, the district shall
   21-4  submit to the attorney general a copy of the contract and the
   21-5  proceedings of the municipality or other governmental agency,
   21-6  authority, or district authorizing the contract.  If the attorney
   21-7  general finds that such bonds have been authorized in accordance
   21-8  with law, and, if submitted, such contract has been made in
   21-9  accordance with law, the attorney general shall approve the bonds
  21-10  and, if submitted, any such contract, and thereupon the bonds shall
  21-11  be registered by the comptroller of public accounts of the State of
  21-12  Texas; and after such approval and registration, such bonds and any
  21-13  such contract shall be incontestable in any court or other forum
  21-14  for any reason, and shall be valid and binding obligations in
  21-15  accordance with their terms for all purposes.  Except as provided
  21-16  in Section 5.01, the foregoing shall also apply to bond
  21-17  anticipation notes.
  21-18        SECTION 5.04.  TAXATION.  (a)  Except for land owned by the
  21-19  Permanent School Fund, the board may levy and collect ad valorem
  21-20  taxes for the maintenance of the district and its improvements or
  21-21  for administrative expenses of the district, or for both purposes,
  21-22  in such amounts as are voted in accordance with this Act.
  21-23        (b)  The maintenance tax and administration tax shall not
  21-24  exceed the maximum rate voted, and the authorized rate shall remain
  21-25  in effect until or unless changed by subsequent vote.
   22-1        SECTION 5.05.  All bonds and notes of the district shall be
   22-2  and are hereby declared to be legal and authorized investments for
   22-3  banks, savings banks, trust companies, savings and loan
   22-4  associations, insurance companies, fiduciaries, trustees,
   22-5  guardians, and for the sinking funds of cities, towns, villages,
   22-6  counties, school districts, or other political corporations or
   22-7  subdivisions of the State of Texas.  Such bonds and notes shall be
   22-8  eligible to secure the deposit of any and all public funds of the
   22-9  State of Texas, and any and all public funds of cities, towns,
  22-10  villages, counties, school districts, or other political
  22-11  corporations or subdivisions of the State of Texas; and such bonds
  22-12  shall be lawful and sufficient security for said deposits to the
  22-13  extent of their value.
  22-14        SECTION 5.06.  TAX ELECTION.  No ad valorem tax for any
  22-15  purpose authorized in this Act may be levied or collected and no
  22-16  obligations payable wholly or partially from ad valorem taxes,
  22-17  except refunding bonds, may be issued unless an election is held in
  22-18  the district and the taxes or obligations are duly and favorably
  22-19  voted by the majority of the resident electors of the district
  22-20  voting at the election.  Each election shall be called by
  22-21  resolution of the board.  The election resolution shall set forth
  22-22  the date of the election, the proposition to be submitted and voted
  22-23  on, the polling places, and any other matters considered advisable
  22-24  by the board.  There shall be at least two polling places in each
  22-25  county which lies wholly inside the district, one of which shall be
   23-1  at the county seat.  There shall be at least one polling place in
   23-2  that part of each county which lies partly inside the district.
   23-3  Notice of the election shall be given by publishing a substantial
   23-4  copy of the resolution calling the election in a newspaper or
   23-5  newspapers of general circulation in the district not less than
   23-6  twice in each newspaper, with the interval between the publications
   23-7  to be at least one week, and with the first of each of the
   23-8  publications to be at least 14 days prior to the date set for the
   23-9  election.  To the extent not inconsistent with the provisions
  23-10  hereof, the elections herein provided for such be held in
  23-11  accordance with the provisions of the Texas Elections Code.
  23-12        SECTION 5.07.  PROPERTY RENDITION/VALUATION/LEVY.  (a)  The
  23-13  rendition and assessment of property for taxation, the equalization
  23-14  of values, and the collection of taxes for the benefit of the
  23-15  district shall be in accordance with the law applicable to
  23-16  counties, insofar as such law can be made applicable, and except as
  23-17  hereinafter specifically provided.
  23-18        (b)  The tax assessor-collector of each county shall act as
  23-19  the tax assessor-collector for the district for property in the
  23-20  district located in such county.  It shall be the duty of the tax
  23-21  assessor-collector in each such county to cause to be placed on the
  23-22  county tax rolls the additional column or columns needed to show
  23-23  the taxes levied by the district and the amount thereof, based on
  23-24  the value of such property as approved and equalized.  The fee of
  23-25  each county tax assessor-collector for assessing and collecting
   24-1  taxes shall be one percent of the taxes collected, to be paid over
   24-2  and disbursed in each county as are other fees of office.
   24-3        (c)  All the laws for the enforcement of state and county
   24-4  taxes shall be available to the district.  The district shall have
   24-5  the right to cause the officers of each county to enforce and
   24-6  collect the taxes due to the district in that county, as provided
   24-7  in the law for the enforcement of state and county taxes.
   24-8        (d)  Taxes assessed and levied for the benefit of the
   24-9  district shall be payable and shall become delinquent at the same
  24-10  time, in the same manner, and subject to the same discount for
  24-11  advance payment as taxes levied by and for the benefit of the
  24-12  county in which the property is taxable.  The fee for collecting
  24-13  delinquent taxes through prosecution of suit shall be 15 percent of
  24-14  the taxes collected by the suit, to be paid over and disbursed in
  24-15  each county as are other fees of office.
  24-16        (e)  Concurrently with the levy of county taxes by the
  24-17  commissioners courts, the board shall levy the tax on all taxable
  24-18  property in the district which is subject to such taxation and
  24-19  shall immediately certify the tax rate to the tax
  24-20  assessors-collectors of the counties which lie inside the district.
  24-21            ARTICLE 6.  SUBDIVISION OF LAND WITHIN DISTRICT
  24-22        SECTION 6.01.  SUBDIVISION.  (a)  Subject only to the
  24-23  authority vested in a county under Chapter 232, Local Government
  24-24  Code, the district shall have the exclusive authority to approve a
  24-25  plat or replat required of a tract of land located within the
   25-1  district, and shall replace and supersede the authority of any
   25-2  local government with respect to such authority.  Any plat or
   25-3  replat of land located within the district may not be filed with
   25-4  the county clerk without the approval of both the district and the
   25-5  county.  If a county regulation conflicts with a district
   25-6  regulation, the district regulation shall prevail and shall replace
   25-7  and supersede the county regulation to the extent of such conflict.
   25-8        (b)  Subject to Subsection (a) of this section, the district
   25-9  and the county must approve a plat or replat that satisfies the
  25-10  uniform, non-discriminatory requirements established by the
  25-11  commissioner's court of the county under Section 232.003, Local
  25-12  Government Code.  The district and the county shall act on a plat
  25-13  or replat within 30 days after the plat or replat application is
  25-14  filed.  A plat or replat shall be considered approved by the county
  25-15  unless it is disapproved and the specific manner in which it fails
  25-16  to satisfy all applicable regulations is provided to the owner of
  25-17  the land included in such plat or replat application within such 30
  25-18  day period.
  25-19        (c)  With respect to land located within the district, the
  25-20  district and a county shall not regulate:
  25-21              (1)  the use of any building or property for business,
  25-22  industrial, residential, or other purposes;
  25-23              (2)  the size, bulk, height, location, or number of
  25-24  buildings and other structures that may be constructed, including,
  25-25  without limitation, any restriction on the ratio of building area
   26-1  to land area;
   26-2              (3)  the number of residential units that may be built
   26-3  on a particular tract of land; or
   26-4              (4)  the size of yards, courts, and other open areas,
   26-5  or the impervious cover that can be constructed on a particular
   26-6  tract of land.
   26-7               ARTICLE 7.  ADDITION OF LAND TO DISTRICT
   26-8        SECTION 7.01.  ANNEXATION.  Other territory may be included
   26-9  in the district as  provided in Sections 7.02, 7.03, and 7.04 of
  26-10  this Act.
  26-11        SECTION 7.02.  PETITION.  (a)  The owner or owners of land
  26-12  contiguous to the district or otherwise may file with the board a
  26-13  petition requesting that there be included in the district the land
  26-14  described in the petition by metes and bounds or by lot and block
  26-15  number if there is a recorded plat of the area to be included in
  26-16  the district.
  26-17        (b)  The petition of the landowner or landowners to add land
  26-18  to the district shall be signed and executed in the manner provided
  26-19  by law for the conveyance of real estate.
  26-20        (c)  The board shall hear and consider the petition and may
  26-21  add to the district the land described in the petition if it is
  26-22  considered to be to the advantage of the district and if the water
  26-23  system and other improvements of the district are sufficient or
  26-24  will be sufficient to supply the added land without injuring land
  26-25  already in the district.
   27-1        SECTION 7.03.  NOTICE AND HEARING.  (a)  A petition
   27-2  requesting the annexation of a defined area shall be filed with the
   27-3  secretary of the board, and shall be signed by a majority in value
   27-4  of the owners of land in the defined area, as shown by the tax
   27-5  rolls of the county or counties in which such area is located, or
   27-6  signed by 50 landowners if the number of landowners in such defined
   27-7  area is more than 50.
   27-8        (b)  It shall be the duty of the board to pass an order
   27-9  fixing a time and place at which the petition for annexation shall
  27-10  be heard which shall not be less than 15 days from the day of the
  27-11  order calling the hearing.
  27-12        (c)  The secretary shall issue a notice setting forth the
  27-13  time and place of the hearing and describing the area proposed to
  27-14  be annexed.  Notice of the hearing shall be given by posting copies
  27-15  of the notice in three public places in the district, and in one
  27-16  public place in the area proposed to be annexed for at least seven
  27-17  days before the day of the hearing and by publishing a copy of the
  27-18  notice in a newspaper of general circulation in the county or
  27-19  counties in which the area proposed to be annexed is located one
  27-20  time at least seven days before the day of the hearing.
  27-21        (d)  If upon the hearing of the petition it is found by the
  27-22  board that the proposed annexation of the area to the district is
  27-23  feasible and practicable and would be of benefit both to the area
  27-24  and to the district, then the board, by order entered in its
  27-25  minutes describing such area, may receive the proposed area as an
   28-1  addition to and to become a part of the district.  The order adding
   28-2  the proposed territory to the district need not include all of the
   28-3  land described in the petition, if on the hearing a modification or
   28-4  change is found necessary or desirable by the board.
   28-5        SECTION 7.04.  ANNEXATION ORDER.  (a)  A copy of the order
   28-6  adding or annexing land to the district, signed by a majority of
   28-7  the members of the board and attested by the secretary of the
   28-8  board, shall be filed and recorded in the deed records of the
   28-9  county or counties in which the district is located if the land is
  28-10  finally annexed to the district.
  28-11        (b)  After the order is recorded, the area shall be a part of
  28-12  the district.
  28-13              ARTICLE 8.  EXCLUSION OF LAND FROM DISTRICT
  28-14        SECTION 8.01.  PETITION.  (a)  The district, provided it does
  28-15  not have any outstanding indebtedness secured by taxes or net
  28-16  revenues of the district, may exclude land from the district by
  28-17  petition of a landowner or on motion of the board of directors.
  28-18        (b)  A petition for exclusion of land must accurately
  28-19  describe the land to be excluded by metes and bounds or by
  28-20  reference to a plat recorded in the plat records of the county or
  28-21  counties in which the land is located.  The petition must be signed
  28-22  by the owner or owners of the land to be excluded, or by at least
  28-23  10 percent of the owners of land to be excluded, or by five or more
  28-24  of the owners if the number of owners is more than 50, and must be
  28-25  filed with the district at least 15 days before the hearing on the
   29-1  petition for exclusion and shall clearly state the particular
   29-2  grounds on which exclusion is sought.  Only the ground stated in
   29-3  the petition shall be considered.
   29-4        SECTION 8.02.  NOTICE AND HEARING.  (a)  Notice of the
   29-5  hearing shall be published by the board once a week for two
   29-6  consecutive weeks in one or more newspapers of general circulation
   29-7  in the district.  The first publication shall appear at least 15
   29-8  days and not more than 40 days before the date of the hearing.
   29-9        (b)  Before determining to exclude any land, the board shall
  29-10  find that the district has no obligations that will be impaired by
  29-11  the exclusion of the land, the district will incur no obligations
  29-12  because of the exclusion, and that the exclusion is in the best
  29-13  interests of the district.
  29-14        (c)  After considering all engineering data and other
  29-15  evidence presented to it, if the board makes the findings set forth
  29-16  in subsection (b) of this section, the board shall enter an order
  29-17  excluding all land meeting the conditions and shall redefine the
  29-18  boundaries of the district in order to embrace all land not
  29-19  excluded.  If the land to be excluded contains water or wastewater
  29-20  customers of the district, such customers shall remain customers of
  29-21  the district, and owners of lots to which water and wastewater
  29-22  facilities have already been extended shall also be allowed to
  29-23  connect to the district's system and shall be customers of the
  29-24  district.
  29-25        SECTION 8.03.  EFFECTIVE DATE OF ORDER EXCLUDING LAND.
   30-1  (a)  Except as provided by subsection (c) of this section, an order
   30-2  excluding land pursuant to a petition signed by the owner or owners
   30-3  of the land to be excluded takes effect on the date the board
   30-4  enters the order.
   30-5        (b)  Except as provided by subsection (c) of this section, an
   30-6  order excluding land pursuant to a petition signed by less than all
   30-7  of the owners to be excluded takes effect:
   30-8              (1)  if the district does not receive a timely petition
   30-9  under subsection (h) of this section on the day following the
  30-10  deadline for submission of a petition; or
  30-11              (2)  if the district receives timely petition under
  30-12  subsection (h) of this section and the exclusion is ratified at an
  30-13  election held for that purpose.
  30-14        (c)  Before an order excluding land under this section
  30-15  becomes effective, all taxes levied and assessed by the district on
  30-16  the land to be excluded shall be fully paid.
  30-17        SECTION 8.04.  PETITION FOR RATIFICATION ELECTION.  (a)  If
  30-18  the board issues an order excluding land pursuant to a petition
  30-19  signed by less than all of the owners of the land to be excluded,
  30-20  the board shall publish notice describing the excluded land and
  30-21  stating that the exclusion becomes final if the district does not
  30-22  receive, not later than the 25th day after the date of the board's
  30-23  order, a petition requesting a ratification election that is signed
  30-24  by at least 10 percent of the qualified voters that reside in the
  30-25  land area to be excluded.
   31-1        (b)  Notice of the exclusion shall be published once a week
   31-2  for two consecutive weeks in a newspaper of general circulation in
   31-3  the district, and the first notice must be published not later than
   31-4  the fifth day after the date of the board's order.  If the district
   31-5  receives, not later than the 35th day after the date of the board's
   31-6  order, a petition requesting a ratification election that is signed
   31-7  by at least 10 percent of the qualified voters that reside in the
   31-8  land area to be excluded, the order does not take effect unless
   31-9  approved by a majority vote at a ratification election held for
  31-10  that purpose of the residents of the district.
  31-11        (c)  The notice of the election, the manner and time of
  31-12  giving the notice, the manner of holding the election, and
  31-13  qualifications of the voters shall be governed by Subchapter E,
  31-14  Chapter 51, Texas Water Code.
  31-15                   ARTICLE 9.  DIVISION OF DISTRICT
  31-16        ARTICLE 9.01.  CONDITIONS OF DIVISION.  The district may,
  31-17  from time to time, provided it does not have any outstanding
  31-18  indebtedness secured by taxes or net revenues, divide into two or
  31-19  more districts; provided, however, no division shall occur that
  31-20  would result in the creation of a district of less than  100 acres
  31-21  in size.  Upon petition of any landowner, or upon the board's own
  31-22  motion, the board of directors may consider a proposal to divide
  31-23  the original district or any district subsequently created by
  31-24  division.
  31-25        SECTION 9.02.  ELECTION/AUTHORITY OF NEW DISTRICTS.
   32-1  (a)  After the board of the original district has agreed upon the
   32-2  terms and conditions of division, which shall include a plan for
   32-3  the payment of any outstanding current obligations and performance
   32-4  of any outstanding obligations of the original district, and has
   32-5  prepared a metes and bounds description of the proposed districts,
   32-6  it shall order an election to be held in the district to determine
   32-7  whether the original district should be divided as proposed.
   32-8        (b)  The board of the original district shall be divided if a
   32-9  majority of the qualified voters in the original district vote in
  32-10  favor of the division.  The resulting districts shall be assigned
  32-11  consecutive letters, corresponding to the number of the original
  32-12  district.  For example, Paseo del Este #1, if divided into two
  32-13  districts, shall become Paseo del Este #1A and Paseo del Este #1B.
  32-14  No other confirmation election shall be necessary; provided,
  32-15  however, each resulting district desiring to issue bonds payable
  32-16  wholly or partially from ad valorem taxes shall be required to
  32-17  obtain authorization for the issuance of such bonds by a majority
  32-18  vote of the resident electors of such district voting in an
  32-19  election called for that purpose.  Notice of such an election shall
  32-20  be given as generally set forth for bond elections in Chapter 51,
  32-21  Texas Water Code.  Each resulting district desiring to levy a
  32-22  maintenance tax shall be required to obtain authorization by a
  32-23  majority vote of the qualified resident electors of such district
  32-24  voting in an election called for that purpose.  Notice of such
  32-25  election shall be given as generally set forth for such elections
   33-1  in Chapter 51, Texas Water Code.
   33-2        SECTION 9.03.  ELECTION OF DIRECTORS.  After the district is
   33-3  divided into two or more districts, the resulting districts shall
   33-4  be separate districts and shall be governed as separate districts;
   33-5  provided, however, during a period of 90 days after the date of the
   33-6  election to approve division, the board of the original district
   33-7  shall continue to act on behalf of the original district to wind up
   33-8  its affairs, and the directors of the original district shall
   33-9  continue to act as directors of one of the resulting districts
  33-10  until the next general election.  The directors of the original
  33-11  district shall name persons to serve as temporary directors of each
  33-12  of the other resulting districts until an election is held on the
  33-13  next uniform date for elections set forth in Section 41.001,
  33-14  Election Code, for the election of permanent directors.  Upon
  33-15  elections of such directors, the three directors receiving the
  33-16  greatest number of votes shall serve until May of the first
  33-17  even-numbered year after the expiration of four years from the date
  33-18  of the election, and two directors shall serve until May of the
  33-19  first even-numbered year after the expiration of two years from the
  33-20  date of the election.
  33-21        SECTION 9.04.  PAYMENT OF DISTRICT DEBTS.  After the division
  33-22  of the original district into two or more districts, the current
  33-23  obligations and any bond authorizations of the original district
  33-24  are protected and are not impaired.  The debts may be paid by
  33-25  taxes, revenues, or assessments levied on the land in the original
   34-1  district as if it had not divided or with contributions from each
   34-2  of the resulting districts on terms stated in the division proposed
   34-3  by the board and approved by the election under subsection (c) of
   34-4  this section.
   34-5        SECTION 9.05.  AUTHORITY OF RESULTING DISTRICTS.  After
   34-6  division, each of the resulting districts shall have the power to
   34-7  incur and pay debts created by each district and shall in every
   34-8  respect have the full power and authority of a district created and
   34-9  governed by the provisions of this Act.  Each of the resulting
  34-10  districts shall have the authority to contract with one another for
  34-11  the provision of water, wastewater, and such other matters as the
  34-12  board of directors of each of the districts deems appropriate.
  34-13        SECTION 9.06.  ASSUMPTION OF OBLIGATIONS.  After division,
  34-14  each of the resulting districts shall assume the obligations of the
  34-15  original district under any agreements or resolutions consenting to
  34-16  the creation of the original district to the extent that such
  34-17  agreements and resolutions do not impose obligations that limit the
  34-18  district's powers and authority to issue bonds for any purpose
  34-19  authorized by this Act.  Any other obligations of the original
  34-20  district shall be divided pro rata among the resulting districts
  34-21  either on an acreage basis or on such other terms as are
  34-22  satisfactory to such resulting districts.
  34-23        SECTION 9.07.  NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION
  34-24  COMMISSION.  Within 30 days after a division election, the original
  34-25  district that confirms a plan for division shall provide written
   35-1  notice of such plan to the Texas Natural Resource Conservation
   35-2  Commission.
   35-3        ARTICLE 10.  REMOVAL FROM EXTRATERRITORIAL JURISDICTION
   35-4        SECTION 10.01.  REMOVAL.  The extraterritorial jurisdiction
   35-5  of a municipality located in a county with a population of more
   35-6  than 1/2 million does not include any land owned by the Permanent
   35-7  School Fund of the State of Texas of 500 or more contiguous acres.
   35-8  If, immediately before the effective date of this Act, the
   35-9  extraterritorial jurisdiction of a municipality located in a county
  35-10  with a population of more than 1/2 million includes land owned by
  35-11  the Permanent School Fund of the State of Texas of 500 or more
  35-12  contiguous acres, the boundaries of the extraterritorial
  35-13  jurisdiction are revised on the effective date of this Act to
  35-14  exclude that land.  In calculating contiguous acreage, a
  35-15  municipality shall exclude coastal public land owned and managed on
  35-16  behalf of the Permanent School Fund under Chapter 33, Natural
  35-17  Resources Code.
  35-18                 ARTICLE 11.  MISCELLANEOUS PROVISIONS
  35-19        SECTION 11.01.  NO TAXATION.  The accomplishment of the
  35-20  purposes stated in this Act being for the benefit of the people of
  35-21  this state and for the improvement of their properties and
  35-22  industries, the district in carrying out the purposes of this Act
  35-23  will be performing an essential public function under the
  35-24  constitution and shall not be required to pay any tax or assessment
  35-25  on the project or any part thereof, and the bonds or notes issued
   36-1  hereunder and their transfer and the income therefrom, including
   36-2  the profits made on the sale thereof, shall at all times be free
   36-3  from taxation within this state.
   36-4        SECTION 11.02.  CONSTITUTIONAL NOTICES.  Proof is required
   36-5  that the publication and the giving of the constitutional notices
   36-6  required in the enactment hereof under the provisions of Article
   36-7  XVI, Sections 59(d) and (e), of the Texas Constitution have been
   36-8  made in the manner provided therein.  It is hereby confirmed that
   36-9  copies of said notices and the bill as originally introduced have
  36-10  been delivered to the governor of the State of Texas and others as
  36-11  required in such constitutional provisions, and such notices and
  36-12  deliveries are hereby found and declared to be proper and
  36-13  sufficient to  satisfy such requirements.
  36-14        SECTION 11.03.  SAVINGS CLAUSE.  If any word, phrase, clause,
  36-15  sentence, paragraph, section, or other part of this Act or the
  36-16  application thereof to any person or circumstance shall ever be
  36-17  held to be invalid or unconstitutional by a court of competent
  36-18  jurisdiction in this state, and remainder of the Act and
  36-19  application of such word, phrase, clause, sentence, paragraph,
  36-20  section, or other part of this Act to other persons or
  36-21  circumstances shall not be affected thereby.  To the extent of a
  36-22  conflict between a provision of this Act and any other law or
  36-23  statute, this Act shall control.
  36-24        SECTION 11.04.  EMERGENCY CLAUSE.  The importance of this
  36-25  legislation and the crowded conditions of the calendars in both
   37-1  houses create an emergency and an imperative public necessity that
   37-2  the constitutional rule requiring bills to be read on three several
   37-3  days in each house be suspended, and this rule is hereby suspended,
   37-4  and that this Act take effect and be in force from and after its
   37-5  passage, and it is so enacted.