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.