1-1 By: Rosson S.B. No. 1663 1-2 (In the Senate - Filed April 20, 1995; April 20, 1995, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; April 27, 1995, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 11, Nays 0; 1-6 April 27, 1995, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1663 By: Rosson 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation, administration, powers, duties, 1-11 functions, operation, and financing of the Paseo del Este Municipal 1-12 Utility District; providing for the authorization of bonds and the 1-13 levy of taxes; providing civil penalties. 1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-15 ARTICLE I. GENERAL PROVISIONS 1-16 SECTION 1.01. CREATION. (a) By virtue of Section 59, 1-17 Article XVI, Texas Constitution, a conservation and reclamation 1-18 district is hereby created to be known as Paseo del Este Municipal 1-19 Utility District (hereinafter the "district"), which shall be a 1-20 governmental agency and a body politic and corporate. The 1-21 requirements in Chapters 50 and 54, Water Code, for confirmation 1-22 and initial director elections shall not apply to the district. 1-23 (b) The district is created under and is essential to 1-24 accomplish the purposes of Section 59, Article XVI, Texas 1-25 Constitution. The district shall have all of the powers of 1-26 municipal utility districts established under Chapter 54, Water 1-27 Code, and the district shall conduct its affairs subject to 1-28 Chapters 50 and 54, Water Code, unless otherwise provided in this 1-29 Act. 1-30 SECTION 1.02. TERRITORY. (a) The district shall comprise 1-31 all of the following territory: Section 315 1/2, C. D. Stewart 1-32 Survey, El Paso County, Texas; Parcels A, B-1 and C-1, Section 317, 1-33 C. D. Stewart Survey, El Paso County, Texas, as described in deed 1-34 from EP Covington Capital Corp. to the State of Texas, recorded in 1-35 Volume 2249, Page 1815, Real Property Records of El Paso County, 1-36 Texas; Section 318, C. D. Stewart Survey, El Paso County, Texas; 1-37 Section 319, C. D. Stewart Survey, El Paso County, Texas; Parcels 1-38 B-2 and C-2, Section 316, O. A. Danielson Survey, El Paso County, 1-39 Texas, as described in deed from EP Covington Capital Corp. to the 1-40 State of Texas, recorded in Volume 2249, Page 1815, Real Property 1-41 Records of El Paso County, Texas; all of the south one-half of 1-42 Section 18, Texas and Pacific Railroad Company Survey, Block 79, 1-43 Township 3, El Paso County, Texas; all of the northeast one-fourth 1-44 of Section 18, Texas and Pacific Railroad Company Survey, Block 79, 1-45 Township 3, El Paso County, Texas; all of the southwest one-fourth 1-46 of Section 21, Texas and Pacific Railroad Company Survey, Block 79, 1-47 Township 3, El Paso County, Texas; Tracts 1, 2 and 3, Section 21, 1-48 Texas and Pacific Railroad Company Survey, Block 79, Township 3, El 1-49 Paso County, Texas, as described in deed from MBJR Trust and Barry 1-50 Lang to the State of Texas, recorded in Volume 2595, Page 1517, 1-51 Real Property Records of El Paso County, Texas; part of Section 21, 1-52 Texas and Pacific Railroad Company Survey, Block 79, Township 3, El 1-53 Paso County, Texas, as described in deed from Socorro Independent 1-54 School District to the State of Texas, recorded in Volume 2361, 1-55 Page 831, Real Property Records of El Paso County, Texas; all of 1-56 Section 22, Texas and Pacific Railroad Company Survey, Block 79, 1-57 Township 3, El Paso County, Texas, SAVE AND EXCEPT: (1) 7.889 1-58 acres, being the remainder of a 38.18 acre tract, as described in 1-59 deed from Texas Pacific Land Trust to Socorro Independent School 1-60 District, recorded in Volume 1302, Page 769, Real Property Records 1-61 of El Paso County, Texas, (2) Tracts 2 and 3, as described in deed 1-62 from the State of Texas to 375/10 Texas Land L.P., recorded in 1-63 Volume 2595, Page 1504, Real Property Records of El Paso County, 1-64 Texas, and (3) Tracts 2 and 3, as described in deed from the State 1-65 of Texas to MBJR Trust and Barry Lang, recorded in Volume 2595, 1-66 Page 1517, Real Property Records of El Paso County, Texas. 1-67 (b) The legislature finds that the boundaries, patents, or 1-68 field notes of the district form a closure. A mistake in the 2-1 patents or field notes, or in copying the patents or field notes in 2-2 the legislative process, does not affect the organization, 2-3 existence, or validity of the district, the rights of the district 2-4 to issue bonds or refunding bonds, or to pay the principal of or 2-5 interest on the bonds, the right of the district to levy and 2-6 collect taxes, or the legality or operation of the district or its 2-7 board. 2-8 (c) Land included within the boundaries of a special utility 2-9 district created under Section 59, Article XVI, Texas Constitution, 2-10 which is subject to a district's outstanding indebtedness secured 2-11 by taxes or net revenues on the effective date of this Act shall 2-12 not be included within the district. If the property described in 2-13 Subsection (a) of this section includes any land subject to a tax 2-14 or net revenue pledged by a district, it shall be excluded, and the 2-15 remainder of this Act shall not be affected thereby. 2-16 ARTICLE II. ADMINISTRATIVE PROVISIONS 2-17 SECTION 2.01. BOARD. The district shall be governed by and 2-18 all powers of the district shall be exercised by a board of five 2-19 directors. 2-20 SECTION 2.02. DIRECTOR ELIGIBILITY. Other than initial 2-21 directors, to be eligible for appointment as a director, a person 2-22 must be an owner of land in the district. To be eligible for 2-23 appointment as an initial director, a person must be a member of 2-24 the School Land Board or a resident of El Paso County or Travis 2-25 County. 2-26 SECTION 2.03. TERMS OF DIRECTORS AND APPOINTMENT PROCEDURES. 2-27 (a) Other than initial directors, directors serve staggered terms 2-28 of four years, with terms expiring September 1 of each odd-numbered 2-29 year. 2-30 (b) Appointment of initial directors shall be made promptly 2-31 by the School Land Board after this Act takes effect. The School 2-32 Land Board shall appoint two initial directors to serve terms 2-33 expiring September 1, 1997, and three initial directors to serve 2-34 terms expiring September 1, 1999. If an initial director dies, 2-35 resigns, or is otherwise removed, the School Land Board shall 2-36 appoint a successor to serve the unexpired term. When a director's 2-37 term expires, his successor shall be elected as provided in Section 2-38 2.04 of this Act. 2-39 SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. (a) Each 2-40 director shall serve his term of office as herein provided, and 2-41 thereafter until his successor shall be appointed or elected and 2-42 qualified. Elections for the appropriate number of permanent 2-43 directors are to be held on the first Saturday in May of each 2-44 odd-numbered year. The directors serve until September 1 of the 2-45 second odd-numbered year after the date of the election. 2-46 (b) Notice of elections shall be given by the board of 2-47 directors by publishing a copy thereof once a week for two 2-48 consecutive weeks in a newspaper of general circulation in the 2-49 district, the first publication being at least 14 days prior to the 2-50 election. 2-51 SECTION 2.05. QUALIFICATION OF DIRECTOR. Except for initial 2-52 directors, no person shall be qualified to serve as a director 2-53 unless he resides in and owns taxable property in the district. 2-54 Initial directors shall be over 18 years of age and residents of 2-55 either El Paso County or Travis County. No employee of the 2-56 district shall serve as director. Directors shall subscribe the 2-57 constitutional oath of office. Except for the initial directors, 2-58 each director shall give bond for the faithful performance of his 2-59 duties as is required by Section 54.116, Water Code, the cost of 2-60 which shall be paid by the district. 2-61 SECTION 2.06. MEETINGS AND ACTIONS OF BOARD. (a) The board 2-62 may establish regular meetings to conduct district business and may 2-63 hold special meetings at other times as the business of the 2-64 district requires. The board shall hold its meetings within the 2-65 district unless the board, by a majority vote at a public meeting, 2-66 votes to hold a meeting or meetings outside the district. 2-67 (b) A majority of the directors shall constitute a quorum of 2-68 the board. A vote of a majority of the quorum present shall be 2-69 necessary to pass on any question before the board. The board may 2-70 adopt bylaws to govern its affairs. The board may adopt a seal for 3-1 the district. The board may provide in the bylaws that, except for 3-2 the initial directors, each director shall receive a fee of $20 for 3-3 attending each meeting of the board, provided that not more than 3-4 $40 shall be paid to any director for meetings held in any one 3-5 calendar month. 3-6 SECTION 2.07. ORGANIZATION OF BOARD. The board of directors 3-7 shall elect from its members a president and a vice president of 3-8 the district and such other officers as in the judgment of the 3-9 board are necessary. The president shall be the chief executive 3-10 officer of the district and the presiding officer of the board and 3-11 shall have the same right to vote as any other director. The vice 3-12 president shall perform all duties and exercise all powers 3-13 conferred by this Act on the president when the president is absent 3-14 or fails or declines to act. The board shall also appoint a 3-15 secretary and a treasurer who may or may not be members of the 3-16 board, and it may combine such offices. Except for the initial 3-17 treasurer, the treasurer shall give bond in the amount required by 3-18 the board of directors, but in no event less than $100,000. The 3-19 condition of the bond shall be that the treasurer will faithfully 3-20 account for all money which comes into the treasurer's custody. 3-21 Until the district authorizes the issuance of bonds, the amount of 3-22 the official bond of the treasurer may be fixed by the board of 3-23 directors in an amount not less than $5,000. 3-24 SECTION 2.08. INTEREST IN CONTRACT. A director who is 3-25 financially interested in a contract proposed to be executed by the 3-26 district for the purchase of property or services or for the 3-27 construction of facilities shall disclose the interest to the board 3-28 and may not vote on the acceptance of the contract. 3-29 SECTION 2.09. DISTRICT EMPLOYEES. The board shall have 3-30 authority to employ a general manager and all consulting engineers, 3-31 financial consultants, attorneys, and auditors. The general 3-32 manager shall be responsible for: 3-33 (1) administering the board's directives; 3-34 (2) keeping the district's records, including minutes 3-35 of board meetings; 3-36 (3) coordinating with federal, state, and local 3-37 agencies; 3-38 (4) developing plans and programs for the board's 3-39 approval; 3-40 (5) hiring, supervising, training, and discharging the 3-41 district's employees; 3-42 (6) obtaining technical, scientific, legal, fiscal, 3-43 and other professional services; and 3-44 (7) performing any other duties the board assigns. 3-45 SECTION 2.10. EMPLOYEE BONDS. (a) The general manager and 3-46 each employee of the district who is charged with the collection, 3-47 custody, or payment of any money of the district shall execute a 3-48 fidelity bond in an amount determined by the board and in a form 3-49 and with a surety approved by the board. 3-50 (b) The district shall pay the premium on each employee bond 3-51 under this section. 3-52 SECTION 2.11. PRINCIPAL OFFICE. Until such time as it 3-53 issues bonds, the district may maintain its principal office in 3-54 either El Paso County or Travis County, provided that, if the 3-55 district maintains its principal office in Travis County, it shall 3-56 maintain duplicate records in El Paso County, and the duplicate 3-57 records shall be available for inspection during regular business 3-58 hours. After it issues bonds, the district shall maintain its 3-59 office in El Paso County. 3-60 SECTION 2.12. RECORDS. (a) The district shall keep at its 3-61 principal office: 3-62 (1) complete and accurate accounts of its business 3-63 transactions in accordance with generally accepted methods of 3-64 accounting; 3-65 (2) complete and accurate minutes of its meetings; and 3-66 (3) its contracts, documents, and other records. 3-67 (b) The district shall permit reasonable public inspection 3-68 of its records during regular business hours. 3-69 SECTION 2.13. SUIT. The district may sue and be sued in its 3-70 corporate name. 4-1 ARTICLE 3. POWERS AND DUTIES 4-2 SECTION 3.01. POWERS AND DUTIES. (a) The district shall: 4-3 (1) administer and enforce the terms of this Act; 4-4 (2) use its facilities and powers to accomplish the 4-5 purposes of this Act; 4-6 (3) coordinate the provision of water, wastewater, and 4-7 drainage services; and 4-8 (4) control and abate water pollution within the 4-9 district. 4-10 (b) In designing utility infrastructure and related systems, 4-11 the district shall submit for review to any municipal corporation 4-12 with a population in excess of 300,000 according to the most recent 4-13 federal census, provided the corporate boundary of such municipal 4-14 corporation is contiguous to the district, its design plans and 4-15 specifications for the utility infrastructure and related systems. 4-16 In connection with the submission, the district shall pay to the 4-17 municipal corporation the fee for review, if any, which has been 4-18 established by municipal ordinance and has general application for 4-19 reviews of this type, and the municipal corporation shall complete 4-20 its review of the design plans and specifications within 60 days 4-21 after their delivery. 4-22 (c) Subject only to the authority of the Texas Natural 4-23 Resource Conservation Commission, the district has the authority to 4-24 control and abate water pollution within the district. Such 4-25 authority of the district will neither reduce nor eliminate the 4-26 authority of a municipal corporation to control and abate water 4-27 pollution within the district under applicable state or federal 4-28 law. 4-29 (d) Except as expressly limited by this Act, the district 4-30 shall have all of the powers, rights, and privileges necessary and 4-31 convenient for accomplishing the purposes of this Act conferred by 4-32 general law on any municipal utility district or water control and 4-33 improvement district created under Section 59, Article XVI, Texas 4-34 Constitution. 4-35 (e) The powers granted to the district in this Act are 4-36 cumulative of all powers granted by other law. 4-37 SECTION 3.02. DISTRICT RULES. (a) The district may adopt 4-38 and enforce rules reasonably required to implement this Act, 4-39 including rules governing procedure and practice before the board. 4-40 (b) The district shall print its rules and furnish copies of 4-41 the rules to any person on written request. 4-42 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. The district 4-43 may enter public or private property in the district for the 4-44 purpose of inspecting and investigating conditions relating to its 4-45 authorized purposes under the same provisions and restrictions 4-46 applicable to the Texas Natural Resource Conservation Commission. 4-47 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may: 4-48 (1) hold hearings, receive evidence from any party in 4-49 interest who appears before the board, compel the attendance of 4-50 witnesses, and make findings of fact and determinations with 4-51 respect to administering this Act or any order or rule of the 4-52 district; and 4-53 (2) delegate to one or more of its members or 4-54 employees the authority to take testimony and administer oaths in 4-55 any hearing held or authorized to be held by the district. 4-56 (b) An order of the board must be: 4-57 (1) in the district's name; and 4-58 (2) attested by proper members of the board under the 4-59 district's rules. 4-60 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who 4-61 violates a rule, permit, or order of the district is subject to a 4-62 civil penalty of not less than $50 and not more than $1,000 for 4-63 each violation or each day of a continuing violation. 4-64 (b) The district may sue to enjoin a threatened or present 4-65 activity or to recover the penalty in a district court in the 4-66 county where the violation occurred. The penalty shall be paid to 4-67 the district. 4-68 SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS. 4-69 (a) The district is authorized to acquire water appropriation 4-70 permits, construction permits, and other water and wastewater 5-1 discharge permits directly from the Texas Natural Resource 5-2 Conservation Commission or from owners of permits. The district is 5-3 also authorized to acquire water or a water supply from any person, 5-4 firm, corporation, municipal corporation, public agency, the State 5-5 of Texas, or the United States government or any of its agencies. 5-6 The district may, within the discretion of its board, contract with 5-7 one or more substantial users of water to acquire such water supply 5-8 under an agreed allocation of storage space between the district 5-9 and the user or may contract independently for the district's water 5-10 supply. The district is authorized to collect, transport, process, 5-11 dispose of, and control all domestic, industrial, or communal 5-12 wastes, whether in fluid, solid, or composite state. The district 5-13 is authorized to contract with any person, firm, corporation, 5-14 municipal corporation, public agency, the State of Texas, or the 5-15 United States government or any of its agencies for the collection, 5-16 transportation, processing, disposition, and control of all 5-17 domestic, industrial, or communal wastes. Such contracting 5-18 authority includes the authority to enter into coordinated 5-19 infrastructure plans or regional utility plans. 5-20 (b) The district is authorized to enter into contracts with 5-21 the State of Texas, cities and districts organized pursuant to 5-22 Section 59, Article XVI, Texas Constitution, and others for 5-23 supplying water or providing services pertaining to domestic, 5-24 industrial, or commercial wastes. The district is also authorized 5-25 to contract with any city, district, or other person for the rental 5-26 or leasing of or for the operation of the water production, water 5-27 supply, water filtration or purification, and water supply 5-28 facilities and facilities for providing services pertaining to the 5-29 wastes of the city, the district, or other person for such 5-30 consideration as the district and the city, the district, or other 5-31 person may agree on. Any such contract may be on such terms and 5-32 for such time as the parties may agree, and it may provide that it 5-33 shall continue in effect until bonds or notes specified therein and 5-34 refunding bonds issued in lieu of such bonds or notes are paid. 5-35 All such cities and districts are authorized to enter into such 5-36 contracts with the district to fix, charge, and collect fees, 5-37 rates, charges, rentals, and other amounts for any service or 5-38 facilities provided pursuant to or in connection with any contract 5-39 with this district and to pledge such amounts sufficient to make 5-40 all payments required under the contract. 5-41 (c) With regard to land use planning, the district shall 5-42 encourage owners and developers of land within the district to use 5-43 and develop their land and buildings in a manner consistent with 5-44 building codes, housing codes, fire codes, subdivision regulations, 5-45 zoning regulations, thoroughfare plans, water conservation plans, 5-46 land use plans, and other land development and safety regulations 5-47 of each adjacent municipal corporation with a population in excess 5-48 of 300,000 according to the most recent federal census. 5-49 SECTION 3.07. FACILITIES. The district is authorized to 5-50 purchase, construct, acquire, own, lease, operate, maintain, 5-51 repair, improve, and extend, at any location inside or outside its 5-52 boundaries, in the sole discretion of the district, land and any 5-53 interest in land, any and all works, improvements, facilities, 5-54 plants, equipment, and appliances incident, helpful, or necessary 5-55 to provide for: (1) the control, storage, preservation, 5-56 transmission, treatment, and distribution and use of storm water 5-57 and floodwater, the water of rivers and streams, and underground 5-58 water, for municipal, domestic, industrial, and other beneficial 5-59 uses; and (2) the collection, transportation, processing, 5-60 disposition, and control of domestic, industrial, or commercial 5-61 wastes. The district shall have the authority to enter into any 5-62 contract with any person, firm, corporation, city, district, 5-63 municipal corporation, public agency, or other political 5-64 subdivision and to perform any other act consistent with the powers 5-65 herein granted to carry out any such power. 5-66 SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. The 5-67 district is authorized to use any public roadway, street, alley, or 5-68 easement in El Paso County to accomplish its purposes, without the 5-69 necessity of securing a franchise or other governmental agreement, 5-70 provided that, with regard to the use of roadways, streets, alleys, 6-1 or easements which belong to an adjacent municipal corporation with 6-2 a population in excess of 300,000 according to the most recent 6-3 federal census, the district shall obtain the written consent of 6-4 the municipal corporation prior to use thereof within the corporate 6-5 limits of the municipal corporation. 6-6 SECTION 3.09. RELOCATION OF FACILITIES. In the event that 6-7 the district in the exercise of its powers makes necessary the 6-8 relocation, raising, rerouting, or changing the grade of or 6-9 altering the construction of any highway, railroad, electric 6-10 transmission line, pipeline, canal, or drainage ditch, all such 6-11 necessary relocation, raising, rerouting, changing of grade, or 6-12 alteration of construction shall be accomplished at the sole 6-13 expense of the district unless otherwise agreed on in writing by 6-14 interested parties; however, in the case of replacement, the cost 6-15 of such action shall be limited to the comparable replacement of 6-16 any replaced facility, less the replaced facility's net salvage 6-17 value. 6-18 SECTION 3.10. CONSTRUCTION CONTRACTS. Any construction 6-19 contract requiring an expenditure of more than $50,000 shall be 6-20 made after publication of a notice to bidders once each week for a 6-21 minimum of two weeks before awarding the contract. The notice 6-22 shall be sufficient if it states the time and place when and where 6-23 the bids will be opened, the general nature of the work to be done, 6-24 or the material, equipment, or supplies to be purchased and states 6-25 where and the terms on which copies of the plans and specifications 6-26 may be obtained. The publication shall be in a newspaper of 6-27 general circulation published in the district and designated by the 6-28 board of directors. It shall not be necessary to advertise work to 6-29 be performed in an emergency situation. 6-30 ARTICLE 4. GENERAL FISCAL PROVISIONS 6-31 SECTION 4.01. DISBURSEMENT OF MONEY. The district may 6-32 disburse money only by check, draft, order, or other instrument 6-33 signed by the person or persons authorized in the board's bylaws or 6-34 by board resolution. 6-35 SECTION 4.02. FEES AND CHARGES. The district may establish 6-36 fees and charges not to exceed the amounts necessary to enable the 6-37 district to fulfill the obligations imposed on it by this Act. 6-38 SECTION 4.03. LOANS AND GRANTS. The district may apply for 6-39 and receive loans and grants from the federal or the state 6-40 government or any agencies thereof, or from a private source, for 6-41 the purpose of carrying out one or more of its powers. The 6-42 district may enter into any agreement in connection with a loan or 6-43 grant that does not conflict with federal or state law. 6-44 SECTION 4.04. FISCAL YEAR. The board shall establish the 6-45 district's fiscal year. 6-46 SECTION 4.05. INDEPENDENT AUDIT AND REPORT. (a) The board 6-47 shall have an audit of the district's affairs for each fiscal year 6-48 prepared by an independent certified public accountant of 6-49 recognized integrity and ability. 6-50 (b) The district shall keep at least one copy of the most 6-51 recent audit at the district's office. 6-52 (c) The district shall make a copy of the most recent audit 6-53 available for inspection by any interested person during regular 6-54 business hours. 6-55 SECTION 4.06. DEPOSITORY BANKS. (a) The board shall 6-56 designate one or more banks to serve as depository or depositories 6-57 for the funds of the district. All funds of the district shall be 6-58 deposited in the depository bank or banks, except that funds 6-59 pledged to pay bonds or notes may be deposited with trustee banks 6-60 named in the trust agreement or bond or note resolution, and except 6-61 that funds shall be remitted to the bank of payment for the payment 6-62 of principal of and interest on bonds and notes. To the extent 6-63 that funds in the depository banks and a trustee bank are not 6-64 insured by the Federal Deposit Insurance Corporation, they shall be 6-65 secured in the manner provided by law for the security of state 6-66 funds. 6-67 (b) Before designating a depository bank, the board shall 6-68 publish notice at least once in a newspaper of general circulation 6-69 in the district requesting applications from banks interested in 6-70 serving as a depository. The notice shall include the time and 7-1 location of the board meeting at which the board proposes to 7-2 designate a depository bank. The board shall prescribe the term of 7-3 service of a depository bank. 7-4 (c) At the time stated in the notice required by Subsection 7-5 (b) of this section, the board shall consider the applications 7-6 received and the management and condition of each bank that files 7-7 an application. The board may designate as a depository the bank 7-8 or banks that offer the most favorable terms and conditions for the 7-9 handling of the district's money and that have proper management 7-10 and the ability to handle the district's money properly. 7-11 Membership of an officer or director of a bank on the board of the 7-12 district does not disqualify the bank from being designated as a 7-13 depository. 7-14 (d) If no application is received by the time stated in the 7-15 notice, the board may designate a bank or banks on such terms and 7-16 conditions as the board considers prudent. 7-17 ARTICLE 5. BOND AND TAX PROVISIONS 7-18 SECTION 5.01. TAX; REVENUE BONDS. (a) For the purpose of 7-19 carrying out any power or authority conferred by this Act, the 7-20 district may issue its bonds or other obligations in three general 7-21 classes: 7-22 (1) secured by ad valorem taxes; 7-23 (2) secured by a pledge of all or part of the revenues 7-24 accruing to the district, including without limitation those 7-25 received from sale of water or other products, rendition of 7-26 service, tolls, charges, and all other sources other than ad 7-27 valorem taxes; and 7-28 (3) secured by a combination pledge of all or part of 7-29 the revenues described in Subdivision (2) of this subsection and 7-30 taxes. 7-31 (b) The obligations shall be authorized by resolution of the 7-32 board and shall be issued in the name of the district, shall be 7-33 signed by the president or any vice president, shall be attested to 7-34 by the secretary, and shall bear the seal of the district. If 7-35 authorized by the board, the signatures of the president or any 7-36 vice president and of the secretary, or of both, may be printed or 7-37 lithographed on the obligations, and the seal of the district may 7-38 be impressed on the obligations or may be printed or lithographed 7-39 on the obligations. The obligations shall be in the form 7-40 prescribed by the board, shall be in any denomination or 7-41 denominations, shall mature serially or otherwise in not to exceed 7-42 50 years from their date, shall bear any interest, may be sold at a 7-43 price and under terms determined by the board to be the most 7-44 advantageous reasonably obtainable, may be made callable prior to 7-45 maturity, at the discretion of the board, at the times and prices 7-46 prescribed in the obligations, and may be made registrable as to 7-47 principal or as to both principal and interest. The obligations 7-48 may be further secured by an indenture of trust with a corporate 7-49 trustee. 7-50 (c) Obligations may be issued in more than one series and 7-51 from time to time, as required for carrying out the purposes of 7-52 this Act. Any pledge of revenue may reserve the right, under 7-53 conditions therein specified, to issue additional obligations which 7-54 will be on a parity with or subordinate to the obligations then 7-55 being issued. 7-56 (d) The district is an "issuer" for the purpose of 7-57 definitions in Chapter 656, Acts of the 68th Legislature, Regular 7-58 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes). 7-59 (e) The resolution authorizing the obligations or the trust 7-60 indenture further securing the obligations may specify additional 7-61 provisions which shall constitute a contract between the district 7-62 and the owners of the obligations. The board shall have full 7-63 discretion in providing for the additional provisions, including 7-64 the authority to provide for a corporate trustee or receiver to 7-65 take possession of facilities of the district in the event of 7-66 default on the part of the district in fulfilling the covenants 7-67 therein made. 7-68 (f) The district shall not issue bonds secured by or 7-69 otherwise encumber permanent school fund land contained within the 7-70 boundaries of the district. 8-1 SECTION 5.02. BOND ANTICIPATION NOTES. The district may 8-2 issue bond anticipation notes from time to time for the purpose of 8-3 carrying out any one or more of its powers. Such bond anticipation 8-4 notes may or may not be secured by a pledge of all or part of the 8-5 revenues of the district. The district may from time to time 8-6 authorize the issuance of bonds for the purpose of providing 8-7 proceeds to pay the principal of and interest on bond anticipation 8-8 notes. Such bonds shall be secured by a pledge of all or part of 8-9 the revenues of the district and may be issued on a parity with or 8-10 subordinate to outstanding bonds of the issuer. If the resolution 8-11 or trust agreement authorizing the issuance of bond anticipation 8-12 notes contains a covenant to the effect that such notes shall be 8-13 payable from the proceeds of the subsequently issued bonds, it 8-14 shall not be necessary to demonstrate for the purposes of receiving 8-15 the approval of the attorney general or registration by the 8-16 comptroller that the revenues that may be pledged to such notes 8-17 will be sufficient to pay the principal of and interest on the 8-18 notes. 8-19 SECTION 5.03. REFUNDING BONDS. (a) The district may issue 8-20 refunding bonds to refund outstanding bonds and interest authorized 8-21 by this Act. 8-22 (b) Refunding bonds may: 8-23 (1) be issued to refund one or more series of 8-24 outstanding bonds; 8-25 (2) combine the pledges for the outstanding bonds for 8-26 the security of the refunding bonds; or 8-27 (3) be secured by other or additional revenues. 8-28 (c) The refunding bonds may be issued without having been 8-29 authorized at an election. The provisions of this Act applicable 8-30 to the district's issuance of other bonds, their security, their 8-31 approval by the attorney general, and the remedies of the holders 8-32 are applicable to refunding bonds. 8-33 (d) Refunding bonds shall be registered by the comptroller 8-34 on surrender and cancellation of the bonds to be refunded. 8-35 Alternatively, the resolution authorizing the issuance of refunding 8-36 bonds may provide that the bonds shall be sold and the resulting 8-37 proceeds deposited in the bank where the bonds to be refunded are 8-38 payable, in which case the refunding bonds may be issued in an 8-39 amount sufficient to pay the principal and interest of the bonds to 8-40 be refunded to their option or maturity date. The comptroller 8-41 shall register the refunding bonds without concurrent surrender and 8-42 cancellation of the bonds to be refunded. 8-43 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. District 8-44 bond review and approval shall be governed by the provisions of 8-45 Subchapter F, Chapter 54, Water Code. 8-46 SECTION 5.05. TAXATION. (a) Except for land owned by the 8-47 permanent school fund, the board may levy and collect ad valorem 8-48 taxes for the maintenance of the district and its improvements or 8-49 for administrative expenses of the district, or for both purposes, 8-50 in such amounts as are voted in accordance with this Act. 8-51 (b) The maintenance tax and administration tax shall not 8-52 exceed the maximum rate voted, and the authorized rate shall remain 8-53 in effect unless changed by subsequent vote. 8-54 SECTION 5.06. BONDS ARE AUTHORIZED INVESTMENTS. All bonds 8-55 and notes of the district shall be and are hereby declared to be 8-56 legal and authorized investments for banks, savings banks, trust 8-57 companies, savings and loan associations, insurance companies, 8-58 fiduciaries, trustees, and guardians and for the sinking funds of 8-59 cities, towns, villages, counties, school districts, or other 8-60 political corporations or subdivisions of the State of Texas. Such 8-61 bonds and notes shall be eligible to secure the deposit of any and 8-62 all public funds of the State of Texas and any and all public funds 8-63 of cities, towns, villages, counties, school districts, or other 8-64 political corporations or subdivisions of the State of Texas; and 8-65 such bonds shall be lawful and sufficient security for the deposits 8-66 to the extent of their value. 8-67 SECTION 5.07. TAX ELECTION. No ad valorem tax for any 8-68 purpose authorized in this Act may be levied or collected and no 8-69 obligations payable wholly or partially from ad valorem taxes, 8-70 except refunding bonds, may be issued unless an election is held in 9-1 the district and the taxes or obligations are duly and favorably 9-2 voted by a majority of the resident electors of the district voting 9-3 at the election. Each election shall be called by resolution of 9-4 the board. The election resolution shall set forth the date of the 9-5 election, the proposition to be submitted and voted on, the polling 9-6 places, and any other matters considered advisable by the board. 9-7 There shall be at least two polling places in each county which 9-8 lies wholly inside the district, one of which shall be at the 9-9 county seat. There shall be at least one polling place in that 9-10 part of each county which lies partly inside the district. Notice 9-11 of the election shall be given by publishing a substantial copy of 9-12 the resolution calling the election in a newspaper or newspapers of 9-13 general circulation in the district, not less than twice in each 9-14 newspaper, with the interval between the publications to be at 9-15 least one week and with the first of each of the publications to be 9-16 at least 14 days prior to the date set for the election. To the 9-17 extent not inconsistent with the provisions hereof, the elections 9-18 herein provided for shall be held in accordance with the provisions 9-19 of the Election Code. 9-20 SECTION 5.08. PROPERTY: RENDITION; VALUATION; LEVY. 9-21 (a) The rendition and assessment of property for taxation, the 9-22 equalization of values, and the collection of taxes for the benefit 9-23 of the district shall be in accordance with the law applicable to 9-24 counties, insofar as such law can be made applicable, and except as 9-25 hereinafter specifically provided. 9-26 (b) The tax assessor-collector of each county shall act as 9-27 the tax assessor-collector for the district for property in the 9-28 district located in such county. It shall be the duty of the tax 9-29 assessor-collector in each county to cause to be placed on the 9-30 county tax rolls the additional column or columns needed to show 9-31 the taxes levied by the district and the amount thereof, based on 9-32 the value of the property as approved and equalized. The fee of 9-33 each county tax assessor-collector for assessing and collecting 9-34 taxes shall be one percent of the taxes collected, to be paid over 9-35 and disbursed in each county as are other fees of office. 9-36 (c) All the legal means available for the enforcement of 9-37 state and county taxes shall be available to the district. The 9-38 district shall have the right to cause the officers of each county 9-39 to enforce and collect the taxes due to the district in that county 9-40 as provided in the law for the enforcement of state and county 9-41 taxes. 9-42 (d) Taxes assessed and levied for the benefit of the 9-43 district shall be payable and shall become delinquent at the same 9-44 time, in the same manner, and subject to the same discount for 9-45 advance payment as taxes levied by and for the benefit of the 9-46 county in which the property is taxable. The fee for collecting 9-47 delinquent taxes through prosecution of suit shall be 15 percent of 9-48 the taxes collected by the suit, to be paid over and disbursed in 9-49 each county as are other fees of office. 9-50 (e) Concurrently with the levy of county taxes by the 9-51 commissioners courts, the board shall levy the tax on all taxable 9-52 property in the district which is subject to such taxation and 9-53 shall immediately certify the tax rate to the tax 9-54 assessor-collector of each county which lies inside the district. 9-55 ARTICLE 6. ADDITION OF LAND TO DISTRICT 9-56 SECTION 6.01. ANNEXATION. Other territory may be included 9-57 in the district as provided in Sections 6.02, 6.03, and 6.04 of 9-58 this Act. 9-59 SECTION 6.02. PETITION. (a) The owner or owners of land 9-60 contiguous to the district or otherwise may file with the board a 9-61 petition requesting that there be included in the district the land 9-62 described in the petition by metes and bounds or by lot and block 9-63 number if there is a recorded plat of the area to be included in 9-64 the district. 9-65 (b) The petition of the landowner or landowners to add land 9-66 to the district shall be signed and executed in the manner provided 9-67 by law for the conveyance of real estate. 9-68 (c) The board shall hear and consider the petition and may 9-69 add to the district the land described in the petition if it is 9-70 considered to be to the advantage of the district and if the water 10-1 system and other improvements of the district are sufficient or 10-2 will be sufficient to supply the added land without injuring land 10-3 already in the district. 10-4 SECTION 6.03. NOTICE AND HEARING. (a) A petition 10-5 requesting the annexation of a defined area shall be filed with the 10-6 secretary of the board and shall be signed by a majority in value 10-7 of the owners of land in the defined area, as shown by the tax 10-8 rolls of the county or counties in which such area is located, or 10-9 signed by 50 landowners, if the number of landowners in the defined 10-10 area is more than 50. 10-11 (b) It shall be the duty of the board to pass an order 10-12 fixing a time and place at which the petition for annexation shall 10-13 be heard, which shall not be less than 15 days from the day of the 10-14 order calling the hearing. 10-15 (c) The secretary shall issue a notice setting forth the 10-16 time and place of the hearing and describing the area proposed to 10-17 be annexed. Notice of the hearing shall be given by posting copies 10-18 of the notice in three public places in the district and in one 10-19 public place in the area proposed to be annexed for at least seven 10-20 days before the day of the hearing and by publishing a copy of the 10-21 notice in a newspaper of general circulation in the county or 10-22 counties in which the area proposed to be annexed is located one 10-23 time at least seven days before the day of the hearing. 10-24 (d) If on the hearing of the petition it is found by the 10-25 board that the proposed annexation of the area to the district is 10-26 feasible and practicable and would be of benefit both to the area 10-27 and to the district, the board, by order entered in its minutes 10-28 describing the area to be annexed, may receive the proposed area as 10-29 an addition to and part of the district. The order adding the 10-30 proposed territory to the district need not include all of the land 10-31 described in the petition, if on the hearing a modification or 10-32 change is found necessary or desirable by the board. 10-33 SECTION 6.04. ANNEXATION ORDER. (a) A copy of the order 10-34 adding or annexing land to the district, signed by a majority of 10-35 the members of the board and attested to by the secretary of the 10-36 board, shall be filed and recorded in the deed records of the 10-37 county or counties in which the district is located if the land is 10-38 finally annexed to the district. 10-39 (b) After the order is recorded, the area shall be a part of 10-40 the district. 10-41 ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT 10-42 SECTION 7.01. PETITION. (a) The district, provided it does 10-43 not have any outstanding indebtedness secured by taxes or net 10-44 revenues of the district, may exclude land from the district by 10-45 petition of a landowner or on motion of the board of directors. 10-46 (b) A petition for exclusion of land must accurately 10-47 describe the land to be excluded by metes and bounds or by 10-48 reference to a plat recorded in the plat records of the county or 10-49 counties in which the land is located. The petition must be signed 10-50 by the owner or owners of the land to be excluded, by at least 10 10-51 percent of the owners of land to be excluded, or by five or more of 10-52 the owners of land to be excluded if the number of owners is more 10-53 than 50, must be filed with the district at least 15 days before 10-54 the hearing on the petition for exclusion, and shall clearly state 10-55 the particular grounds on which exclusion is sought. Only the 10-56 ground stated in the petition shall be considered. 10-57 SECTION 7.02. NOTICE AND HEARING. (a) Notice of the 10-58 hearing shall be published by the board once a week for two 10-59 consecutive weeks in one or more newspapers of general circulation 10-60 in the district. The first publication shall appear at least 15 10-61 days and not more than 40 days before the date of the hearing. 10-62 (b) Before determining to exclude any land, the board shall 10-63 find that the district has no obligations that will be impaired by 10-64 the exclusion of the land, that the district will incur no 10-65 obligations because of the exclusion, and that the exclusion is in 10-66 the best interests of the district. 10-67 (c) After considering all engineering data and other 10-68 evidence presented to it, if the board makes the findings set forth 10-69 in Subsection (b) of this section, the board shall enter an order 10-70 excluding all land meeting the conditions and shall redefine the 11-1 boundaries of the district in order to embrace all land not 11-2 excluded. If the land to be excluded contains water or wastewater 11-3 customers of the district, such customers shall remain customers of 11-4 the district, and owners of lots to which water and wastewater 11-5 facilities have already been extended shall also be allowed to 11-6 connect to the district's system and shall be customers of the 11-7 district. 11-8 SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND. 11-9 (a) Except as provided by Subsection (c) of this section, an order 11-10 excluding land pursuant to a petition signed by the owner or owners 11-11 of the land to be excluded takes effect on the date the board 11-12 enters the order. 11-13 (b) Except as provided by Subsection (c) of this section, an 11-14 order excluding land pursuant to a petition signed by less than all 11-15 of the owners to be excluded takes effect: 11-16 (1) on the day following the deadline for submission 11-17 of a petition if the district does not receive a timely petition 11-18 under Subsection (b) of Section 7.04 of this Act; or 11-19 (2) on the day following the day the election returns 11-20 are canvassed if the district receives a timely petition under 11-21 Subsection (b) of Section 7.04 of this Act and the exclusion is 11-22 ratified at an election held for that purpose. 11-23 (c) Before an order excluding land under this section 11-24 becomes effective, all taxes levied and assessed by the district on 11-25 the land to be excluded shall be fully paid. 11-26 SECTION 7.04. PETITION FOR RATIFICATION ELECTION. (a) If 11-27 the board issues an order excluding land pursuant to a petition 11-28 signed by less than all of the owners of the land to be excluded, 11-29 the board shall publish notice describing the excluded land and 11-30 stating that the exclusion becomes final if the district does not 11-31 receive, not later than the 25th day after the date of the board's 11-32 order, a petition requesting a ratification election that is signed 11-33 by at least 10 percent of the qualified voters that reside in the 11-34 area to be excluded. 11-35 (b) Notice of the exclusion shall be published once a week 11-36 for two consecutive weeks in a newspaper of general circulation in 11-37 the district, and the first notice must be published not later than 11-38 the fifth day after the date of the board's order. If the district 11-39 receives, not later than the 25th day after the date of the board's 11-40 order, a petition requesting a ratification election that is signed 11-41 by at least 10 percent of the qualified voters that reside in the 11-42 land area to be excluded, the order does not take effect unless 11-43 approved by a majority vote of the residents of the district at a 11-44 ratification election held for that purpose. 11-45 (c) The notice of the election, the manner and time of 11-46 giving the notice, the manner of holding the election, and 11-47 qualifications of the voters shall be governed by Subchapter E, 11-48 Chapter 51, Water Code. 11-49 ARTICLE 8. DIVISION OF DISTRICT 11-50 SECTION 8.01. CONDITIONS OF DIVISION. (a) The district may 11-51 from time to time, provided it does not have any outstanding 11-52 indebtedness secured by taxes or net revenues, divide into two or 11-53 more districts; however, no division shall occur that would result 11-54 in the creation of a district of less than 100 acres in size. On 11-55 petition of any landowner or on the board's own motion, the board 11-56 of directors may consider a proposal to divide the original 11-57 district or any district subsequently created by division. 11-58 (b) With regard to the foregoing authority to divide the 11-59 district into one or more districts, it is not the intent of this 11-60 Act to encourage or promote the proliferation of numerous utility 11-61 providers within the subject territory. Rather, this Act is 11-62 intended to encourage and promote orderly development within the 11-63 subject territory and to facilitate the provision of dependable, 11-64 efficient utility services at affordable rates to customers of the 11-65 district. 11-66 SECTION 8.02. ELECTION; AUTHORITY OF NEW DISTRICTS. (a) 11-67 After the board of the original district has agreed on the terms 11-68 and conditions of division, which shall include a plan for the 11-69 payment of any outstanding current obligations and performance of 11-70 any outstanding obligations of the original district, and has 12-1 prepared a metes and bounds description of the proposed districts, 12-2 it shall order an election to be held in the district to determine 12-3 whether the original district should be divided as proposed. 12-4 (b) The board of the original district shall be divided if a 12-5 majority of the qualified voters in the original district vote in 12-6 favor of the division. The resulting districts shall be designated 12-7 by consecutive letters following the number of the original 12-8 district. For example, Paseo del Este No. 1, if divided into two 12-9 districts, shall become Paseo del Este No. 1A and Paseo del Este 12-10 No. 1B. No other confirmation election shall be necessary; 12-11 however, each resulting district, in order to issue bonds payable 12-12 wholly or partially from ad valorem taxes, shall be required to 12-13 obtain authorization for the issuance of the bonds by a majority 12-14 vote of the resident electors of the district voting in an election 12-15 called and held for that purpose. Notice of the election shall be 12-16 given as generally set forth for bond elections in Chapter 54, 12-17 Water Code. Each resulting district desiring to levy a maintenance 12-18 tax shall be required to obtain authorization for the tax by a 12-19 majority vote of the qualified resident electors of the district 12-20 voting in an election called and held for that purpose. Notice of 12-21 the election shall be given as generally set forth for such 12-22 elections in Chapter 54, Water Code. 12-23 SECTION 8.03. APPOINTMENT AND ELECTION OF DIRECTORS. 12-24 (a) After the district is divided into two or more districts, the 12-25 resulting districts shall be separate districts and shall be 12-26 governed as separate districts, provided that, during a period of 12-27 90 days after the date of the election to approve division, the 12-28 board of the original district shall continue to act on behalf of 12-29 the original district to wind up its affairs. The board of the 12-30 original district shall appoint two initial directors to each 12-31 resulting district to serve terms expiring September 1 of the 12-32 second year after the creation of each resulting district, and the 12-33 board of the original district shall appoint three initial 12-34 directors to each resulting district to serve terms expiring 12-35 September 1 of the fourth year after creation of each resulting 12-36 district. A board member of the original district may be appointed 12-37 as a director of one of the resulting districts. 12-38 (b) If an initial director dies, resigns, or is otherwise 12-39 removed, the board of the new district shall appoint a successor to 12-40 serve the unexpired term. When a director's term expires, his 12-41 successor shall be elected as provided in Section 2.04 of this Act. 12-42 SECTION 8.04. PAYMENT OF DISTRICT DEBTS. After the division 12-43 of the original district into two or more districts, the current 12-44 obligations and any bond authorizations of the original district 12-45 are protected and are not impaired. The debts may be paid by 12-46 taxes, revenues, or assessments levied on the land in the original 12-47 district as if it had not divided or with contributions from each 12-48 of the resulting districts on terms stated in the division proposed 12-49 by the board and approved by the election under Section 8.02 of 12-50 this Act. 12-51 SECTION 8.05. AUTHORITY OF RESULTING DISTRICTS. After 12-52 division, each of the resulting districts shall have the power to 12-53 incur and pay debts created by each district and shall in every 12-54 respect have the full power and authority of a district created and 12-55 governed by the provisions of this Act. Each of the resulting 12-56 districts shall have the authority to contract with one another for 12-57 the provision of water and wastewater services and for such other 12-58 matters as the board of directors of each of the districts deems 12-59 appropriate. 12-60 SECTION 8.06. ASSUMPTION OF OBLIGATIONS. After division, 12-61 each of the resulting districts shall assume the obligations of the 12-62 original district under any agreements or resolutions consenting to 12-63 the creation of the original district to the extent that such 12-64 agreements and resolutions do not impose obligations that limit the 12-65 district's powers and authority to issue bonds for any purpose 12-66 authorized by this Act. Any other obligations of the original 12-67 district shall be divided pro rata among the resulting districts 12-68 either on an acreage basis or on such other terms as are 12-69 satisfactory to the resulting districts. 12-70 SECTION 8.07. NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION 13-1 COMMISSION. Within 30 days after a division election, the original 13-2 district that confirms a plan for division shall provide written 13-3 notice of such plan to the Texas Natural Resource Conservation 13-4 Commission. 13-5 ARTICLE 9. ANNEXATION AND DISSOLUTION OF DISTRICT 13-6 SECTION 9.01. ANNEXATION. (a) Notwithstanding any other 13-7 provision of law, on the annexation of the district or districts, 13-8 in the event of division under Article 8 of this Act, the annexing 13-9 municipality shall: 13-10 (1) assume all of the outstanding indebtedness of the 13-11 district; 13-12 (2) dissolve the district within six months of 13-13 annexation and become the owner of all district assets, including, 13-14 without limitation, all accounts receivable and the right to 13-15 collect all outstanding taxes, delinquent taxes, and other 13-16 indebtedness; 13-17 (3) refrain from imposing city taxes on property 13-18 located within the district at any time prior to dissolution of the 13-19 district; 13-20 (4) provide all city utility, emergency medical, fire, 13-21 police, garbage collection, and other standard municipal services 13-22 to residents of the district at the same rate as such services are 13-23 provided to in-city residents of similar developments; and 13-24 (5) with regard to zoning and other land use 13-25 regulation, honor regional land use planning within the district. 13-26 (b) Immediately on annexation of the district, the district 13-27 shall transfer all district assets to the annexing municipal 13-28 corporation in accordance with the instruments approved by the 13-29 annexing municipal corporation and the district. 13-30 ARTICLE 10. AFFORDABLE HOUSING 13-31 SECTION 10.01. A minimum of five percent of the residential 13-32 housing units within the district shall be utilized for the 13-33 construction of affordable housing, such affordable housing to be 13-34 distributed among different residential areas within the district. 13-35 In this section, "affordable housing" means housing available to 13-36 those with moderate, low, or very low income levels, as those 13-37 levels are determined periodically by the United States Department 13-38 of Housing and Urban Development based on the El Paso Standard 13-39 Metropolitan Statistical Area. 13-40 ARTICLE 11. MISCELLANEOUS PROVISIONS 13-41 SECTION 11.01. NO TAXATION. The accomplishment of the 13-42 purposes stated in this Act being for the benefit of the people of 13-43 this state and for the improvement of their properties and 13-44 industries, the district in carrying out the purposes of this Act 13-45 will be performing an essential public function under the 13-46 constitution and shall not be required to pay any tax or assessment 13-47 on the project or any part thereof, and the bonds or notes issued 13-48 under this Act and their transfer and the income therefrom, 13-49 including the profits made on the sale thereof, shall at all times 13-50 be free from taxation within this state. 13-51 SECTION 11.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. 13-52 The proper and legal notice of the intention to introduce this Act, 13-53 setting forth the general substance of this Act, has been published 13-54 as provided by law, and the notice and a copy of this Act have been 13-55 furnished to all persons, agencies, officials, or entities to which 13-56 they are required to be furnished by the constitution and other 13-57 laws of this state, including the governor. All requirements of 13-58 the constitution and laws of this state and the rules and 13-59 procedures of the legislature with respect to the notice, 13-60 introduction, and passage of this Act are fulfilled and 13-61 accomplished. 13-62 SECTION 11.03. SEVERABILITY. If any word, phrase, clause, 13-63 sentence, paragraph, section, or other part of this Act or the 13-64 application thereof to any person or circumstance shall ever be 13-65 held to be invalid or unconstitutional by a court of competent 13-66 jurisdiction in this state, the remainder of the Act and the 13-67 application of such word, phrase, clause, sentence, paragraph, 13-68 section, or other part of this Act to other persons or 13-69 circumstances shall not be affected thereby. To the extent of a 13-70 conflict between a provision of this Act and any other law or 14-1 statute, this Act shall control. 14-2 SECTION 11.04. EMERGENCY. The importance of this 14-3 legislation and the crowded condition of the calendars in both 14-4 houses create an emergency and an imperative public necessity that 14-5 the constitutional rule requiring bills to be read on three several 14-6 days in each house be suspended, and this rule is hereby suspended, 14-7 and that this Act take effect and be in force from and after its 14-8 passage, and it is so enacted. 14-9 * * * * *