1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of the Paseo del Este Municipal Utility
1-4 District and to the authorization of bonds and the levy of taxes;
1-5 providing civil penalties.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. GENERAL PROVISIONS
1-8 SECTION 1.01. CREATION. (a) A conservation and reclamation
1-9 district, to be known as Paseo del Este Municipal Utility District,
1-10 is created. The district is a governmental agency and a body
1-11 politic and corporate.
1-12 (b) The district is created under and is essential to
1-13 accomplish the purposes of Section 59, Article XVI, Texas
1-14 Constitution.
1-15 (c) The district has the powers of a municipal utility
1-16 district as provided by Chapter 54, Water Code, and is governed by
1-17 Chapters 49 and 54, Water Code, unless otherwise provided by this
1-18 Act.
1-19 SECTION 1.02. DEFINITIONS. In this Act:
1-20 (1) "District" means the Paseo del Este Municipal
1-21 Utility District.
1-22 (2) "Board" means the board of directors of the Paseo
1-23 del Este Municipal Utility District or a district resulting from a
1-24 division under Article 8 of this Act.
2-1 SECTION 1.03. BOUNDARIES. (a) Except as provided by
2-2 Subsection (c) of this section, the district includes the territory
2-3 contained within the following area: Section 315 1/2, C. D.
2-4 Stewart Survey, El Paso County, Texas; Section 318, C. D. Stewart
2-5 Survey, El Paso County, Texas; Section 319, C. D. Stewart Survey,
2-6 El Paso County, Texas; the south one-half of Section 18, Texas and
2-7 Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-8 County, Texas; the northeast one-fourth out of Section 18, Texas
2-9 and Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-10 County, Texas, SAVE AND EXCEPT 39.37 acres described in a deed of
2-11 record at Volume 2039, Page 1312, Real Property Records of El Paso
2-12 County, Texas; the southwest one-fourth of Section 20, Texas and
2-13 Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-14 County, Texas; Section 22, Texas and Pacific Railroad Company
2-15 Survey, Block 79, Township 3, El Paso County, Texas, SAVE AND
2-16 EXCEPT: (1) 7.889 acres described in deed from Texas Pacific Land
2-17 Trust to Socorro Independent School District, recorded in Volume
2-18 1302, Page 769, Real Property Records of El Paso County, Texas, (2)
2-19 Tracts 2 and 3, as described in deed from the State of Texas to
2-20 375/10 Texas Land L.P., recorded in Volume 2595, Page 1504, Real
2-21 Property Records of El Paso County, Texas, (3) Tracts 2 and 3, as
2-22 described in deed from the State of Texas to MBJR Trust and Barry
2-23 Lang, recorded in Volume 2595, Page 1517, Real Property Records of
2-24 El Paso County, Texas, and (4) the northwest one-fourth of Section
2-25 22, Texas and Pacific Railroad Company Survey, Block 79, Township
2-26 3, El Paso County, Texas.
2-27 (b) A mistake in the patents or field notes or in copying
3-1 the patents or field notes in the legislative process does not
3-2 affect the organization, existence, or validity of the district,
3-3 the right of the district to issue bonds or refunding bonds or to
3-4 pay the principal of or interest on issued bonds, the right of the
3-5 district to levy and collect taxes, or the legality or operation
3-6 of the district or its governing board.
3-7 (c) The district does not include territory described by
3-8 Subsection (a) of this section that is subject to the outstanding
3-9 indebtedness secured by taxes or net revenues of a special utility
3-10 district created under Section 59, Article XVI, Texas Constitution,
3-11 on the effective date of this Act. If territory described by
3-12 Subsection (a) of this section is subject to a tax or net revenue
3-13 pledged by a special utility district created under Section 59,
3-14 Article XVI, Texas Constitution, the territory that is subject to
3-15 the tax or net revenue is excluded from the territory described by
3-16 Subsection (a) of this section. The exclusion of territory under
3-17 this subsection does not affect the validity of this Act.
3-18 ARTICLE 2. ADMINISTRATIVE PROVISIONS
3-19 SECTION 2.01. BOARD. The district shall be governed by and
3-20 all powers of the district shall be exercised by a board of five
3-21 directors.
3-22 SECTION 2.02. DIRECTOR ELIGIBILITY. Except for initial
3-23 directors, a person must meet the requirements of Section 54.102,
3-24 Water Code, to be eligible to serve as a director. A person must
3-25 be at least 18 years of age and a resident of El Paso County or
3-26 Travis County to be eligible to serve as an initial director.
3-27 Notwithstanding Section 49.052, Water Code, employment with a state
4-1 agency, other than the General Land Office or the School Land
4-2 Board, does not disqualify a person from serving as a director. An
4-3 employee of the district may not serve as a director.
4-4 SECTION 2.03. TERMS OF OFFICE AND APPOINTMENT OF DIRECTORS.
4-5 (a) Except for initial directors, directors serve staggered
4-6 four-year terms, with the terms of two or three directors expiring
4-7 September 1 of each even-numbered year.
4-8 (b) The School Land Board shall appoint five initial
4-9 directors as soon as practicable after the effective date of this
4-10 Act. The School Land Board shall appoint two initial directors to
4-11 serve terms expiring September 1, 2000, and three initial directors
4-12 to serve terms expiring September 1, 2002. If a vacancy occurs,
4-13 the School Land Board shall appoint a successor to fill the vacancy
4-14 and to serve the remainder of the unexpired term. Initial
4-15 directors shall serve until permanent directors are elected under
4-16 Section 2.04 of this Act and qualify for office.
4-17 SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. (a) A
4-18 director serves until the director's successor has qualified. An
4-19 election shall be held for the election of the appropriate number
4-20 of permanent directors on the first Saturday in May of each
4-21 even-numbered year.
4-22 (b) The board shall publish notice of an election under this
4-23 section once a week for two consecutive weeks in a newspaper of
4-24 general circulation in the district beginning not later than 14
4-25 days before the date of the election.
4-26 SECTION 2.05. QUALIFICATION OF DIRECTOR. A director shall
4-27 take the constitutional oath of office and, except for initial
5-1 directors, give bond for the faithful performance of the director's
5-2 duties as required by Section 49.055, Water Code. The cost of a
5-3 bond under this section shall be paid by the district.
5-4 SECTION 2.06. MEETINGS AND BOARD ACTIONS. (a) The board
5-5 may establish regular meetings to conduct the business of the
5-6 district and may hold special meetings if necessary as determined
5-7 by the board. The board shall hold a meeting under this section
5-8 within the district unless the board, by a majority vote at a
5-9 public meeting, decides to hold the meeting outside of the
5-10 district.
5-11 (b) A majority of the directors shall constitute a quorum of
5-12 the board. A vote of a majority of the quorum present is necessary
5-13 to take board action. The board may adopt bylaws to govern the
5-14 affairs of the district and may adopt a seal for the district. The
5-15 board may provide in the bylaws that, except for initial directors,
5-16 a director shall receive compensation of $20 for attending a
5-17 meeting of the board. A director may not be paid more than $40 for
5-18 meetings held in a calendar month.
5-19 SECTION 2.07. ORGANIZATION OF BOARD OF DIRECTORS. The board
5-20 shall elect a president and vice president from members of the
5-21 board. The board may elect other officers as are deemed necessary
5-22 by the board. The president is the chief executive officer of the
5-23 district and the presiding officer of the board and has the same
5-24 right to vote as other members of the board. The vice president
5-25 shall perform the duties and exercise the powers of the president
5-26 if the president is absent, fails to act, or refuses to act. The
5-27 board shall appoint a secretary and treasurer. The secretary and
6-1 treasurer may be, but are not required to be, members of the board.
6-2 One person may serve as both secretary and treasurer. The
6-3 treasurer shall give bond in an amount required by the board. The
6-4 condition of the bond shall be that the treasurer will faithfully
6-5 account for all money that comes into the custody of the treasurer.
6-6 The board shall require a bond under this section of at least
6-7 $100,000 if the district has authorized the issuance of bonds. If
6-8 the district has not authorized the issuance of bonds, the board
6-9 shall require a bond of at least $5,000.
6-10 SECTION 2.08. CONFLICT OF INTEREST: CONTRACT. A director
6-11 who is financially interested in a contract that is proposed to be
6-12 executed by the board for the purchase of property or services or
6-13 for the construction of facilities shall disclose the director's
6-14 interest to the board and may not vote on the acceptance of the
6-15 contract.
6-16 SECTION 2.09. DISTRICT EMPLOYEES. The board is authorized
6-17 to employ a general manager and consulting engineers, financial
6-18 consultants, attorneys, and auditors. The general manager shall be
6-19 responsible for:
6-20 (1) administering the board's directives;
6-21 (2) maintaining district records, including minutes of
6-22 board meetings;
6-23 (3) coordinating with federal, state, and local
6-24 agencies;
6-25 (4) developing plans and programs for the board's
6-26 approval;
6-27 (5) hiring, supervising, training, and discharging the
7-1 district's employees;
7-2 (6) obtaining technical, scientific, legal, fiscal, or
7-3 other professional services for the district; and
7-4 (7) performing other duties as assigned by the board.
7-5 SECTION 2.10. EMPLOYEE BONDS. (a) The general manager and
7-6 each employee of the district who is charged with the collection,
7-7 custody, or payment of district money shall execute a fidelity bond
7-8 in an amount determined by the board and in a form and with a
7-9 surety approved by the board.
7-10 (b) The district shall pay the premium on a bond under this
7-11 section.
7-12 SECTION 2.11. PRINCIPAL OFFICE. (a) If the district has
7-13 not issued bonds, the district may maintain its principal office in
7-14 El Paso County or Travis County. If the district maintains its
7-15 principal office in Travis County, the district shall maintain
7-16 duplicates of district records in El Paso County and make the
7-17 duplicate records available for inspection during regular business
7-18 hours.
7-19 (b) If the district has issued bonds, the district shall
7-20 maintain its principal office in El Paso County.
7-21 SECTION 2.12. RECORDS. (a) The district shall keep at its
7-22 principal office:
7-23 (1) a complete and accurate account of the district's
7-24 business transactions in accordance with generally accepted
7-25 accounting methods;
7-26 (2) a complete and accurate record of the minutes of
7-27 board meetings; and
8-1 (3) contracts, documents, and other records of the
8-2 district.
8-3 (b) The district shall permit reasonable public inspection
8-4 of the district's records during regular business hours.
8-5 SECTION 2.13. SUIT. The district may sue and be sued in the
8-6 district's corporate name.
8-7 ARTICLE 3. AUTHORITY OF DISTRICT
8-8 SECTION 3.01. POWERS AND DUTIES. (a) The district shall:
8-9 (1) administer and enforce the provisions of this Act;
8-10 (2) use the facilities and powers of the district to
8-11 accomplish the purposes of this Act;
8-12 (3) coordinate water, wastewater, and drainage
8-13 services within the district; and
8-14 (4) control and abate water pollution within the
8-15 district.
8-16 (b) When designing utility infrastructure and related
8-17 systems, the district shall submit for review to a municipality
8-18 with a population in excess of 300,000, according to the most
8-19 recent federal census, and with a municipal boundary that is
8-20 contiguous to the district the district's design plans and
8-21 specifications for the utility infrastructure and related systems.
8-22 The district shall pay to the municipality a fee for conducting the
8-23 review if the municipality has established a fee that has general
8-24 application for comparable reviews. The municipality shall
8-25 complete the review of the design plans and specifications not
8-26 later than the 60th day after the date on which the plans and
8-27 specifications are delivered to the municipality. In constructing
9-1 the utility infrastructure, the district shall meet or exceed the
9-2 construction standards for materials and installation
9-3 specifications of a municipality with a population in excess of
9-4 300,000, according to the most recent federal census, and with a
9-5 municipal boundary that is contiguous to the district.
9-6 (c) Subject to the authority of the Texas Natural Resource
9-7 Conservation Commission, the district has the authority to control
9-8 and abate water pollution within the district. The authority of
9-9 the district under this subsection does not reduce or eliminate the
9-10 authority of a municipality to control and abate water pollution
9-11 within the district under state or federal law.
9-12 (d) Except as provided by this Act, the district has the
9-13 powers, rights, and privileges necessary and convenient for
9-14 accomplishing the purposes of this Act as provided by general law
9-15 relating to a municipal utility district or water control and
9-16 improvement district created under Section 59, Article XVI, Texas
9-17 Constitution.
9-18 (e) The powers granted to the district by this Act are
9-19 cumulative of powers granted by other law.
9-20 SECTION 3.02. DISTRICT RULES. (a) The district may adopt
9-21 and enforce rules reasonably required to implement this Act,
9-22 including rules governing procedure and practice before the board.
9-23 (b) The district shall keep a record of the district's rules
9-24 and provide a copy of the rules to a person on written request.
9-25 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. In addition
9-26 to the powers provided by Section 49.221, Water Code, the district
9-27 may enter public or private property located within the district
10-1 for purposes of inspecting and investigating conditions of the
10-2 property relating to the district's authorized purposes. The
10-3 district shall conduct an inspection or investigation in accordance
10-4 with provisions and restrictions applicable to the Texas Natural
10-5 Resource Conservation Commission.
10-6 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may:
10-7 (1) hold hearings, receive evidence from a party in
10-8 interest who appears before the board, compel the attendance of a
10-9 witness, and make findings of fact and determinations relating to
10-10 the administration of this Act or an order or rule of the board;
10-11 and
10-12 (2) delegate the authority to take testimony and
10-13 administer oaths in a hearing held by the district to a member of
10-14 the board or an employee of the district.
10-15 (b) An order of the board must:
10-16 (1) be in the name of the district; and
10-17 (2) be attested to by the appropriate members of the
10-18 board under the district's rules.
10-19 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who
10-20 violates a rule, permit, or order of the district is subject to a
10-21 civil penalty of not less than $50 and not more than $1,000 for
10-22 each violation or each day of a continuing violation.
10-23 (b) The district may sue to enjoin a threatened or present
10-24 activity or to recover the penalty in a district court in the
10-25 county in which the violation occurred. A penalty recovered under
10-26 this subsection shall be paid to the district.
10-27 SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.
11-1 (a) The district is authorized to obtain water appropriation
11-2 permits, construction permits, and other water and wastewater
11-3 discharge permits from the Texas Natural Resource Conservation
11-4 Commission or from permit owners. The district is authorized to
11-5 acquire water or a water supply from a person, firm, corporation,
11-6 municipal corporation, or public agency, the state, the United
11-7 States, or any agency of the state or the United States. The board
11-8 may contract with one or more substantial users of water to acquire
11-9 a water supply under an agreed allocation of storage space between
11-10 the district and the user or the district may contract for the
11-11 district's water supply independently. The district is authorized
11-12 to collect, transport, process, dispose of, and control all
11-13 domestic, industrial, and communal wastes, whether in fluid, solid,
11-14 or composite state. The district is authorized to contract with a
11-15 person, firm, corporation, municipal corporation, or public agency,
11-16 the state, the United States, or any agency of the state or the
11-17 United States for the collection, transportation, processing,
11-18 disposition, and control of all domestic, industrial, and communal
11-19 wastes. The authority of the district under this subsection
11-20 includes the authority to enter into contracts involving
11-21 coordinated infrastructure or regional utility plans. The district
11-22 may not unilaterally require a person, firm, corporation, municipal
11-23 corporation, public agency, or other entity to fund or construct
11-24 utility infrastructure for purposes of extending utilities to the
11-25 district.
11-26 (b) The district may enter into a contract with the state, a
11-27 municipality, an entity created under Section 59, Article XVI,
12-1 Texas Constitution, or another entity to supply water or to provide
12-2 services relating to domestic, industrial, or commercial waste.
12-3 The district is authorized to contract with a person, a
12-4 municipality, or an entity created under Section 59, Article XVI,
12-5 Texas Constitution, to rent, lease, or operate water production,
12-6 water supply, water filtration or purification, and water supply
12-7 facilities and facilities to provide services relating to the
12-8 wastes of the person, municipality, or entity for a consideration
12-9 as agreed to by the district and the person, municipality, or
12-10 entity. A contract under this subsection may provide that the
12-11 contract continues in effect until specified bonds or notes and
12-12 refunding bonds issued in lieu of the bonds or notes are paid. A
12-13 municipality or entity described by this subsection is authorized
12-14 to enter into a contract with the district to fix, charge, and
12-15 collect fees, rates, charges, rentals, or other amounts for a
12-16 service or facility provided under a contract with the district and
12-17 may pledge amounts that are sufficient to make the payments
12-18 required under the contract.
12-19 (c) For purposes of land use planning, the district shall
12-20 encourage owners and developers of land located within the district
12-21 to use and develop the land and buildings in compliance with
12-22 building, housing, and fire codes, subdivision and zoning
12-23 regulations, thoroughfare, water conservation, and land use plans,
12-24 and other land development and safety regulations of an adjacent
12-25 municipality with a population in excess of 300,000, according to
12-26 the most recent federal census.
12-27 SECTION 3.07. FACILITIES. (a) In addition to the authority
13-1 provided by Sections 49.218 and 54.201, Water Code, the district
13-2 may purchase, construct, acquire, own, lease, operate, maintain,
13-3 repair, improve, and extend, at any location within or outside of
13-4 the district, land, or an interest in land, a work, an improvement,
13-5 a facility, a plant, equipment, or an appliance that is incident,
13-6 helpful, or necessary to provide for:
13-7 (1) the control, storage, preservation, transmission,
13-8 treatment, and distribution and use of storm water and floodwater,
13-9 the water of rivers and streams, and underground water for
13-10 municipal, domestic, industrial, and other beneficial uses; and
13-11 (2) the collection, transportation, processing,
13-12 disposition, and control of domestic, industrial, or commercial
13-13 wastes.
13-14 (b) The district may:
13-15 (1) enter into a contract with a person, firm,
13-16 corporation, municipality, entity created under Section 59, Article
13-17 XVI, Texas Constitution, municipal corporation, public agency, or
13-18 other political subdivision of the state; and
13-19 (2) perform any other act consistent with the powers
13-20 of the district and necessary to fulfill the purposes of this Act.
13-21 SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. The
13-22 district may use a public roadway, street, alley, or easement in El
13-23 Paso County to accomplish the purposes of the district. The
13-24 district is not required to obtain a franchise or other
13-25 governmental agreement to use a roadway, street, alley, or easement
13-26 that is owned by a municipality that is adjacent to the district
13-27 with a population in excess of 300,000, according to the most
14-1 recent federal census, if, before using the roadway, street, alley,
14-2 or easement, the district obtains written consent of the
14-3 municipality to the particular use. The district shall pay a fee
14-4 to a municipality for the use of the roadway, street, alley, or
14-5 easement that equals the lesser of the district's pro rata share,
14-6 based on actual area encumbered, of the fair market value or the
14-7 initial purchase price for the roadway, street, alley, or easement.
14-8 SECTION 3.09. RELOCATION OF FACILITIES. The district may
14-9 relocate, raise, reroute, or change the grade of, or alter the
14-10 construction of, a highway, railroad, electric transmission line,
14-11 pipeline, canal, or drainage ditch, if deemed necessary by the
14-12 board. The district shall pay for any relocation, raising,
14-13 rerouting, changing, or altering under this section, unless
14-14 otherwise agreed in writing by the interested parties. The cost of
14-15 replacement is limited to the comparable replacement of any
14-16 replaced facility, less the replaced facility's net salvage value.
14-17 ARTICLE 4. GENERAL FISCAL PROVISIONS
14-18 SECTION 4.01. DISBURSEMENT OF MONEY. The district may
14-19 disburse money only by check, draft, order, or other instrument
14-20 signed by a person authorized in the bylaws of the district or by
14-21 board resolution.
14-22 SECTION 4.02. FEES AND CHARGES. The district may establish
14-23 fees and charges not to exceed the amounts necessary to enable the
14-24 district to fulfill the obligations of the district as provided by
14-25 this Act.
14-26 SECTION 4.03. LOANS AND GRANTS. (a) The district may apply
14-27 for and receive a loan or grant from the state or the United
15-1 States, or any agency of the state or the United States, or from a
15-2 private entity, for purposes of exercising the powers of the
15-3 district.
15-4 (b) The district may not enter into an agreement under this
15-5 section that violates state or federal law.
15-6 SECTION 4.04. FISCAL YEAR. The board shall establish a
15-7 fiscal year for the district.
15-8 SECTION 4.05. DEPOSITORY BANKS. (a) The board, as provided
15-9 by this section, shall designate at least one bank to serve as a
15-10 depository for the funds of the district. Subject to Section
15-11 49.156, Water Code, the funds of the district shall be deposited in
15-12 a depository bank designated under this subsection.
15-13 (b) Before designating a depository bank, the board shall
15-14 publish notice at least once in a newspaper of general circulation
15-15 in the district to solicit applications from banks interested in
15-16 serving as a depository for the district. The notice shall include
15-17 the time and place of the board meeting at which the board proposes
15-18 to designate a depository bank. The board shall prescribe the term
15-19 of service of a depository bank designated under Subsection (a) of
15-20 this section.
15-21 (c) The board shall review an application received under
15-22 Subsection (b) of this section, including examining the management
15-23 and condition of each bank submitting an application. In reviewing
15-24 an application under this subsection, the board may consider:
15-25 (1) the terms and conditions proposed by a bank for
15-26 handling the district's money;
15-27 (2) the management of the bank; and
16-1 (3) the ability of the bank to handle the district's
16-2 money.
16-3 (d) A bank is not disqualified from being a depository under
16-4 this section because an officer or a director of the bank is a
16-5 member of the board.
16-6 (e) An officer or a director of a bank is not disqualified
16-7 from being a member of the board.
16-8 (f) If the board does not receive an application under this
16-9 section, the board may designate a bank as depository on terms that
16-10 the board finds proper.
16-11 ARTICLE 5. BOND AND TAX PROVISIONS
16-12 SECTION 5.01. TAXES; REVENUE BONDS. (a) For purposes of
16-13 exercising the authority of the district as provided by this Act,
16-14 the district may issue bonds or other obligations that are:
16-15 (1) secured by ad valorem taxes;
16-16 (2) secured by a pledge of all or part of the revenues
16-17 accruing to the district, including revenues received from the sale
16-18 of water or other products, the rendition of service, tolls,
16-19 charges, and any other source of revenue, other than ad valorem
16-20 taxes; and
16-21 (3) secured by both a pledge of all or part of the
16-22 revenues described by Subdivision (2) of this subsection and ad
16-23 valorem taxes.
16-24 (b) An obligation issued by the district shall be authorized
16-25 by resolution of the board, issued in the name of the district,
16-26 signed by the president or vice president, attested to by the
16-27 secretary, and bear the seal of the district. The signatures of
17-1 the president or vice president and the secretary may be printed or
17-2 lithographed on the obligation. The seal of the district may be
17-3 impressed, printed, or lithographed on the obligation. An
17-4 obligation issued by the district:
17-5 (1) shall be in a form prescribed by the board;
17-6 (2) may be in any denomination;
17-7 (3) shall mature serially or otherwise not later than
17-8 50 years from the date of issuance;
17-9 (4) may bear any interest rate;
17-10 (5) may be sold at a price and under terms determined
17-11 by the board to be the most advantageous available;
17-12 (6) may, in the discretion of the board, be made
17-13 callable before maturity at times and prices as provided in the
17-14 obligation;
17-15 (7) may be made registrable as to principal or
17-16 principal and interest; and
17-17 (8) may be secured by an indenture of trust with a
17-18 corporate trustee.
17-19 (c) An obligation under this section may be issued in more
17-20 than one series as required to carry out the purposes of this Act.
17-21 A pledge of revenue may reserve the right to issue additional
17-22 obligations under conditions specified on the pledge. An
17-23 additional obligation is on a parity with or subordinate to the
17-24 original obligation.
17-25 (d) The district is an "issuer" as defined by Section 1,
17-26 Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
17-27 (Article 717q, Vernon's Texas Civil Statutes).
18-1 (e) A board resolution authorizing an obligation or a trust
18-2 indenture under this section may include additional terms to
18-3 provide for a corporate trustee or receiver to take possession of
18-4 facilities of the district in the event of default by the district
18-5 relating to the obligation or trust indenture. The additional
18-6 terms, if any, constitute a contract between the district and the
18-7 owner of the obligation.
18-8 (f) The district may not issue bonds that are secured by or
18-9 otherwise encumber permanent school fund land located within the
18-10 district.
18-11 SECTION 5.02. BOND ANTICIPATION NOTES. The district may
18-12 issue bond anticipation notes for purposes of exercising the powers
18-13 of the district. Bond anticipation notes may be secured by a
18-14 pledge of all or part of the revenues of the district. The
18-15 district may authorize the issuance of bonds to pay the principal
18-16 of and interest on bond anticipation notes issued under this
18-17 section. Bond anticipation notes shall be secured by a pledge of
18-18 all or part of the revenues of the district and may be issued on a
18-19 parity with or subordinate to outstanding bonds of the issuer. If
18-20 the resolution or trust agreement authorizing the issuance of bond
18-21 anticipation notes contains a covenant that the notes are payable
18-22 from the proceeds of subsequently issued bonds, the district is not
18-23 required to demonstrate that the revenues that may be pledged to
18-24 the notes are sufficient to pay the principal of and interest on
18-25 the notes for purposes of receiving approval of the attorney
18-26 general or registration by the comptroller.
18-27 SECTION 5.03. REFUNDING BONDS. (a) The district may issue
19-1 refunding bonds to refund outstanding bonds and interest as
19-2 authorized by this Act.
19-3 (b) Refunding bonds may:
19-4 (1) be issued to refund one or more series of
19-5 outstanding bonds;
19-6 (2) combine the pledges for the outstanding bonds for
19-7 the security of the refunding bonds; or
19-8 (3) be secured by additional revenues.
19-9 (c) Refunding bonds may be issued without holding an
19-10 election to authorize the issuance of the bonds. The provisions of
19-11 this Act relating to the issuance of other bonds by the district,
19-12 security for the bonds, approval by the attorney general, and
19-13 remedies of the holders of the bonds apply to refunding bonds.
19-14 (d) Refunding bonds shall be registered by the comptroller
19-15 on surrender and cancellation of the bonds to be refunded or, if
19-16 the resolution authorizing the issuance of refunding bonds provides
19-17 that the bonds shall be sold and the proceeds deposited in the bank
19-18 where the bonds to be refunded are payable, the refunding bonds may
19-19 be issued in an amount sufficient to pay the principal and interest
19-20 of the bonds to be refunded to their option or maturity date. The
19-21 comptroller shall register the refunding bonds without concurrent
19-22 surrender and cancellation of the bonds to be refunded.
19-23 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. District
19-24 bond review and approval is governed by Subchapter F, Chapter 49,
19-25 Water Code.
19-26 SECTION 5.05. BONDS ARE AUTHORIZED INVESTMENTS. All bonds
19-27 and notes of the district are legal and authorized investments for
20-1 banks, savings banks, trust companies, savings and loan
20-2 associations, insurance companies, fiduciaries, trustees, and
20-3 guardians and for the sinking funds of municipalities, counties,
20-4 school districts, or other political corporations or subdivisions
20-5 of the state. Bonds and notes of the district are eligible to
20-6 secure the deposit of any and all public funds of the state and any
20-7 and all public funds of municipalities, counties, school districts,
20-8 or other political corporations or subdivisions of the state.
20-9 Bonds and notes of the district are lawful and sufficient security
20-10 for the deposits to the extent of their value.
20-11 SECTION 5.06. TAXATION. (a) Except for land owned by the
20-12 permanent school fund, the board may levy and collect ad valorem
20-13 taxes on land within the district for maintenance, improvements,
20-14 and administration relating to the district in amounts approved by
20-15 the qualified voters of the district in an election held for that
20-16 purpose.
20-17 (b) A maintenance tax or an administration tax shall not
20-18 exceed the maximum approved rate and an approved rate shall remain
20-19 in effect unless a different rate is approved by the qualified
20-20 voters in a subsequent election.
20-21 SECTION 5.07. PROPERTY: RENDITION; VALUATION; LEVY.
20-22 (a) Except as provided by this section, the rendition and
20-23 assessment of property for taxation, the equalization of values,
20-24 and the collection of taxes for the benefit of the district shall
20-25 be conducted in accordance with the law applicable to counties to
20-26 the extent possible.
20-27 (b) The tax assessor-collector of each county shall act as
21-1 the tax assessor-collector for the district for district property
21-2 located in the county. The tax assessor-collector in each county
21-3 shall place on the county tax rolls a column or columns as
21-4 necessary to show the taxes, including the amount of taxes, levied
21-5 by the district, based on the value of the property as approved and
21-6 equalized. The fee charged by each county tax assessor-collector
21-7 for assessing and collecting taxes is one percent of the taxes
21-8 collected and shall be paid and disbursed by the district in the
21-9 same manner as other fees of office.
21-10 (c) The mechanisms available to enforce the collection of
21-11 state and county taxes may be used by the district to enforce the
21-12 collection of taxes levied by the district. The district is
21-13 entitled to require the officers of each county to enforce and
21-14 collect the taxes due to the district in that county as provided
21-15 for the enforcement of state and county taxes.
21-16 (d) Taxes assessed and levied for the benefit of the
21-17 district shall be payable and shall become delinquent at the same
21-18 time, in the same manner, and subject to the same discount for
21-19 advance payment as taxes levied by and for the benefit of the
21-20 county in which the property is taxable. The fee for collecting
21-21 delinquent taxes through prosecution of suit is 15 percent of the
21-22 taxes collected by the suit, to be paid and disbursed by the
21-23 district in the same manner as other fees of office.
21-24 (e) At the same time that the commissioners court levies
21-25 county taxes, the board shall levy a tax on all taxable property in
21-26 the district that is subject to taxation. The board shall
21-27 immediately certify the tax rate to the tax assessor-collector of
22-1 each county that contains territory within the district.
22-2 ARTICLE 6. ADDITION OF LAND TO DISTRICT
22-3 SECTION 6.01. ANNEXATION. Notwithstanding any other law,
22-4 additional territory may be added to the district as provided by
22-5 Sections 6.02, 6.03, and 6.04 of this Act.
22-6 SECTION 6.02. PETITION. (a) An owner or owners of land,
22-7 whether or not contiguous to the territory of the district, may
22-8 file with the board a petition requesting that the land described
22-9 in the petition by metes and bounds or by lot and block number, if
22-10 there is a recorded plat of the area, be included in the district.
22-11 (b) A petition under Subsection (a) of this section shall be
22-12 signed and executed in the manner provided by law for the
22-13 conveyance of real estate.
22-14 (c) The board shall hear and consider a petition received
22-15 under Subsection (a) of this section and may add to the district
22-16 the land described in the petition if:
22-17 (1) the board determines that adding the land to the
22-18 district is advantageous to the district; and
22-19 (2) the water system and other improvements of the
22-20 district are sufficient or will be sufficient to provide service to
22-21 the land added to the district without injuring the land in the
22-22 district before the petition is granted.
22-23 SECTION 6.03. NOTICE AND HEARING. (a) A petition
22-24 requesting that the district annex a defined area shall be filed
22-25 with the secretary of the board and shall be signed by:
22-26 (1) a majority in value of the owners of land in the
22-27 defined area, as shown by the tax rolls of the county or counties
23-1 in which the defined area is located, if the number of landowners
23-2 in the defined area is 50 or less; or
23-3 (2) 50 landowners if the number of landowners in the
23-4 defined area is more than 50.
23-5 (b) The board shall issue an order setting a time and place
23-6 to hear a petition filed under Subsection (a) of this section. The
23-7 hearing shall be held not earlier than the 15th day after the date
23-8 on which the board issues the order.
23-9 (c) The secretary shall issue a notice providing the time
23-10 and place of the hearing set under Subsection (b) of this section
23-11 and describing the area proposed to be annexed. Notice of the
23-12 hearing shall be given by:
23-13 (1) posting copies of the notice in three public
23-14 places in the district and in one public place in the area proposed
23-15 to be annexed for at least seven days before the date of the
23-16 hearing; and
23-17 (2) publishing a copy of the notice in a newspaper of
23-18 general circulation in the county or counties in which the area
23-19 proposed to be annexed is located at least seven days before the
23-20 date of the hearing.
23-21 (d) If the board finds that the proposed annexation is
23-22 feasible and practicable and would benefit the district and the
23-23 area proposed to be added to the district, the board may by order
23-24 receive all or a part of the proposed area as an addition to and
23-25 part of the district. An order issued by the board under this
23-26 subsection shall describe the area added to the district and be
23-27 entered in the minutes.
24-1 SECTION 6.04. ANNEXATION ORDER. (a) A copy of the order
24-2 adding land to the district shall be signed by a majority of the
24-3 members of the board, attested to by the secretary of the board,
24-4 and filed and recorded in the deed records of the county or
24-5 counties in which the district is located.
24-6 (b) On the date that the order is recorded as required by
24-7 Subsection (a) of this section, the area described in the order is
24-8 included in the territory of the district.
24-9 ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT
24-10 SECTION 7.01. PETITION. (a) Notwithstanding any other law,
24-11 the board may, if there is no outstanding board order relating to
24-12 an election for the authorization of bonds payable in whole or in
24-13 part from taxes and the district does not have outstanding
24-14 indebtedness secured by taxes or net revenues of the district,
24-15 order a hearing to be held to exclude land from the district on
24-16 petition of a landowner or on motion of the board.
24-17 (b) A petition to exclude land from the district must
24-18 specifically describe the land to be excluded by metes and bounds
24-19 or by reference to a plat recorded in the plat records of the
24-20 county or counties in which the land is located. The petition must
24-21 be signed by at least 10 percent of the owners of land in the area
24-22 to be excluded or, if the number of owners of land is more than 50,
24-23 by at least five of the owners of land. The petition must be filed
24-24 with the district before the seventh day preceding the date the
24-25 hearing is held to consider the petition. The petition must
24-26 clearly state the grounds supporting the exclusion of the land from
24-27 the district. The board may consider only the grounds stated in
25-1 the petition.
25-2 SECTION 7.02. NOTICE AND HEARING. (a) The board shall hold
25-3 a hearing on petition of a landowner to exclude land from the
25-4 district.
25-5 (b) Notice of hearing under this section shall be published
25-6 by the board once a week for two consecutive weeks in one or more
25-7 newspapers of general circulation in the district. The first
25-8 notice shall be published not earlier than the 40th day or later
25-9 than the 14th day preceding the date of the hearing.
25-10 (c) The board may not exclude land from the district unless
25-11 the board determines that:
25-12 (1) the district has no obligations that will be
25-13 impaired by the exclusion of the land;
25-14 (2) the district will incur no obligations as a result
25-15 of the exclusion; and
25-16 (3) the exclusion is in the best interests of the
25-17 district.
25-18 (d) The board, after considering all engineering data and
25-19 other evidence presented at the hearing and making the
25-20 determinations required by Subsection (c) of this section, shall
25-21 enter an order excluding the land from the district and redefining
25-22 the boundaries of the district as appropriate. If land proposed to
25-23 be excluded contains water or wastewater customers of the district,
25-24 the customers remain customers of the district. Owners of lots
25-25 within the land proposed to be excluded in which water and
25-26 wastewater facilities have been extended retain the right to
25-27 connect to the district's water and wastewater system and become
26-1 district customers.
26-2 SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND.
26-3 (a) Except as provided by Subsection (c) of this section, an order
26-4 of the board excluding land from the district on petition signed by
26-5 the owner or owners of land that is proposed to be excluded takes
26-6 effect on the date on which the board enters the order.
26-7 (b) Except as provided by Subsection (c) of this section, an
26-8 order excluding land from the district on petition signed by less
26-9 than all the owners of land that is proposed to be excluded takes
26-10 effect:
26-11 (1) on the day immediately following the date on which
26-12 a petition under Section 7.04 of this Act must be received by the
26-13 board if the district does not receive a petition under that
26-14 section; or
26-15 (2) on the day immediately following the date on which
26-16 the election returns are canvassed if the exclusion is ratified at
26-17 an election under Section 7.04 of this Act.
26-18 (c) An order excluding land from the district under this
26-19 section may not take effect unless all taxes levied and assessed by
26-20 the district within the land that is proposed to be excluded are
26-21 paid in full.
26-22 SECTION 7.04. PETITION FOR RATIFICATION ELECTION. (a) If
26-23 the board issues an order excluding land on petition signed by less
26-24 than all the owners of land in the area proposed to be excluded,
26-25 the board shall publish a notice that describes the excluded land
26-26 and states that the exclusion will become final unless the board
26-27 receives, not later than the 25th day after the date on which the
27-1 board issues the order, a petition requesting a ratification
27-2 election. A petition under this subsection must be signed by at
27-3 least 10 percent of the qualified voters residing in the area that
27-4 is proposed to be excluded from the district.
27-5 (b) If the board receives a petition under Subsection (a) of
27-6 this section, the order excluding land from the district is not
27-7 effective unless the exclusion is approved by a majority vote of
27-8 the residents of the district at a ratification election held for
27-9 that purpose.
27-10 (c) A ratification election, including notice of the
27-11 election and the qualifications of the voters, shall be conducted
27-12 as provided by Subchapter J, Chapter 49, Water Code.
27-13 ARTICLE 8. DIVISION OF DISTRICT
27-14 SECTION 8.01. CONDITIONS OF DIVISION. (a) The board may,
27-15 if the district does not have outstanding indebtedness secured by
27-16 taxes or net revenues, divide the territory of the district into
27-17 two or more districts. The board may not divide the territory of
27-18 the district if the division results in a district with territory
27-19 of less than 100 acres. On petition of a landowner or on motion of
27-20 the board, the board may consider a proposal to divide the original
27-21 district or any district subsequently created by division.
27-22 (b) The board may not divide territory of the district if
27-23 the division results in numerous utility providers within the
27-24 original territory of the district. The board may divide territory
27-25 of the district for purposes of encouraging and promoting orderly
27-26 development within the original territory of the district and
27-27 facilitating dependable and efficient utility service at affordable
28-1 rates to customers of the district.
28-2 SECTION 8.02. PROVISIONS RELATING TO NEW DISTRICTS.
28-3 (a) Before the board may divide territory of the district or any
28-4 district resulting from a division under this article, the board
28-5 shall:
28-6 (1) determine the terms of the division, including a
28-7 plan to pay and perform the outstanding obligations of the
28-8 district; and
28-9 (2) prepare a metes and bounds description of the
28-10 proposed division.
28-11 (b) Except as provided by Section 8.03 of this Act, if the
28-12 board divides territory under this article, the board shall be
28-13 divided in an appropriate manner consistent with the division of
28-14 the district.
28-15 (c) Districts resulting from a division under this article
28-16 shall be designated in an appropriate manner.
28-17 (d) A district resulting from a division under this article
28-18 shall obtain authorization for the issuance of bonds payable wholly
28-19 or partially from ad valorem taxes by a majority vote of the
28-20 qualified voters of the district voting in an election called and
28-21 held for that purpose.
28-22 (e) A district resulting from a division under this article
28-23 shall be required to obtain authorization for a maintenance tax by
28-24 a majority vote of the qualified voters of the district voting in
28-25 an election called and held for that purpose.
28-26 SECTION 8.03. APPOINTMENT AND ELECTION OF DIRECTORS. (a) A
28-27 district resulting from a division under this article is a separate
29-1 district and shall be governed as a separate district.
29-2 (b) The board shall continue to act on behalf of the
29-3 district for 90 days after the date on which a division under this
29-4 article is approved for purposes of closing the district's affairs.
29-5 (c) The board shall appoint two initial directors for a
29-6 district resulting from a division under this article to serve
29-7 terms expiring September 1 of the first even-numbered year after
29-8 creation of the district, and three initial directors to serve
29-9 terms expiring September 1 of the second even-numbered year after
29-10 creation of the district. A member of the board may be appointed
29-11 as a director of a district resulting from a division under this
29-12 article.
29-13 (d) If a vacancy occurs on the board of directors of a
29-14 district resulting from a division under this article, the board of
29-15 directors of that district shall appoint a successor to serve for
29-16 the remainder of the unexpired term.
29-17 (e) A successor to the board of directors of a district
29-18 resulting from a division under this article shall be elected as
29-19 provided by Section 2.04 of this Act.
29-20 SECTION 8.04. PAYMENT OF DISTRICT DEBTS. A division of
29-21 territory of the district under this article may not impair the
29-22 current obligations or bond authorizations of the district. The
29-23 debts of the district may be paid by taxes, revenues, or
29-24 assessments levied on land in the district or by contributions from
29-25 each district resulting from a division under this article on terms
29-26 stated in the division proposed by the board under Section 8.02 of
29-27 this Act.
30-1 SECTION 8.05. AUTHORITY OF DISTRICTS RESULTING FROM A
30-2 DIVISION. A district resulting from a division under this article
30-3 shall have the power to incur and pay debts created by that
30-4 district, the power and authority granted to the district created
30-5 under this Act, and the authority to enter into contracts with
30-6 other districts resulting from a division under this article for
30-7 purposes of providing water and wastewater services or other
30-8 appropriate purpose.
30-9 SECTION 8.06. ASSUMPTION OF OBLIGATIONS. A district
30-10 resulting from a division under this article shall assume the
30-11 obligations of the district under an agreement or resolution
30-12 consenting to the creation of the district unless the agreement or
30-13 resolution imposes obligations that limit the powers and authority
30-14 of the district to issue bonds for a purpose authorized by this
30-15 Act. The remaining obligations of the district shall be divided on
30-16 a pro rata basis among the districts resulting from a division
30-17 under this article based on the number of acres in a district or on
30-18 terms agreed to by the districts resulting from a division under
30-19 this article.
30-20 SECTION 8.07. NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION
30-21 COMMISSION. The district shall provide written notice of a plan to
30-22 divide the district under this article to the Texas Natural
30-23 Resource Conservation Commission not later than the 30th day after
30-24 the date on which the board of the district decides to divide the
30-25 district.
30-26 ARTICLE 9. ANNEXATION AND DISSOLUTION OF DISTRICT
30-27 SECTION 9.01. ANNEXATION. (a) Notwithstanding any other
31-1 law, a municipality may annex the district, including districts
31-2 resulting from a division under Article 8 of this Act, only if the
31-3 municipality:
31-4 (1) assumes the outstanding indebtedness of the
31-5 district or districts;
31-6 (2) dissolves the district or districts not later than
31-7 six months after the date of annexation;
31-8 (3) assumes the assets, including all accounts
31-9 receivable and the right to collect outstanding taxes, delinquent
31-10 taxes, and other indebtedness of the district or districts;
31-11 (4) refrains from imposing municipal taxes on property
31-12 located within the district or districts before the dissolution of
31-13 the district or districts;
31-14 (5) provides municipal utility, emergency medical,
31-15 fire, police, garbage collection, and other standard municipal
31-16 services to the residents of the district or districts at the same
31-17 rate as is charged to residents within the municipality, or
31-18 residents of similar developments; and
31-19 (6) complies with regional land use planning within
31-20 the district.
31-21 (b) Notwithstanding Subsection (a)(5) of this section, a
31-22 municipality that annexes and dissolves the district or districts
31-23 may impose water supply fees, impact fees, and other assessments
31-24 allowed by state law on property previously located within the
31-25 district or districts, except for property that has received a
31-26 utility service allocation by the district or districts or property
31-27 in which site development has been authorized or commenced.
32-1 (c) The district or districts shall transfer all assets of
32-2 the district or districts to a municipality that annexes and
32-3 dissolves the district or districts, as provided by instruments
32-4 approved by the municipality and district or districts.
32-5 ARTICLE 10. AFFORDABLE HOUSING
32-6 SECTION 10.01. AFFORDABLE HOUSING. (a) It is in the best
32-7 interest of the state to encourage the development of affordable
32-8 housing for the citizens of the state. To the extent that
32-9 territory of the district can be used to accomplish this purpose in
32-10 a manner that is consistent with the constitutional and statutory
32-11 provisions relating to the management of lands dedicated to the
32-12 permanent school fund, the legislature directs that 15 percent of
32-13 all residential development within the district shall be developed
32-14 to provide affordable housing. A minimum of five percent of the
32-15 residential housing units within the district shall be used to
32-16 provide affordable housing, to be located in different residential
32-17 areas within the district. The affordable housing shall be
32-18 dispersed evenly throughout the district to the extent possible and
32-19 may not be concentrated in areas that consist primarily of
32-20 affordable housing units.
32-21 (b) On the sale of permanent school fund land in the
32-22 district that may be used for residential purposes, the School Land
32-23 Board shall, through the imposition of restrictive covenants or by
32-24 deed restriction, restrict property use in a manner that requires
32-25 construction of affordable housing in a percentage sufficient to
32-26 satisfy the requirements of this section.
32-27 (c) In this section, "affordable housing" means housing for
33-1 residents having low or very low income levels, as determined
33-2 periodically by the United States Department of Housing and Urban
33-3 Development, based on the El Paso Standard Metropolitan Statistical
33-4 Area.
33-5 ARTICLE 11. MISCELLANEOUS PROVISIONS
33-6 SECTION 11.01. TAX EXEMPTION. The purposes stated in this
33-7 Act are for the benefit of the people of the state, including the
33-8 improvement of property and industry. The district, in carrying
33-9 out the purposes of this Act, is performing an essential public
33-10 function under the constitution and is not required to pay a tax or
33-11 assessment on a project of the district or on the bonds or notes
33-12 issued by the district under this Act, including the transfer of,
33-13 the income from, and the profits made on the sale of issued bonds
33-14 and notes.
33-15 SECTION 11.02. INITIAL ELECTION. Notwithstanding Section
33-16 2.04 of this Act, the district shall hold its first election for
33-17 permanent directors on the first Saturday in May 2000.
33-18 SECTION 11.03. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
33-19 (a) The proper and legal notice of the intention to introduce this
33-20 Act, setting forth the general substance of this Act, has been
33-21 published as provided by law, and the notice and a copy of this Act
33-22 have been furnished to all persons, agencies, officials, or
33-23 entities to which they are required to be furnished by the
33-24 constitution and other laws of this state, including the governor,
33-25 who has submitted the notice and Act to the Texas Natural Resource
33-26 Conservation Commission.
33-27 (b) The Texas Natural Resource Conservation Commission has
34-1 filed its recommendations relating to this Act with the governor,
34-2 lieutenant governor, and speaker of the house of representatives
34-3 within the required time.
34-4 (c) All requirements of the constitution and laws of this
34-5 state and the rules and procedures of the legislature with respect
34-6 to the notice, introduction, and passage of this Act are fulfilled
34-7 and accomplished.
34-8 SECTION 11.04. SEVERABILITY. If any word, phrase, clause,
34-9 sentence, paragraph, section, or other part of this Act or the
34-10 application of this Act to any person or circumstance is ever held
34-11 to be invalid or unconstitutional by a court of competent
34-12 jurisdiction in this state, the remainder of the Act and the
34-13 application of that word, phrase, clause, sentence, paragraph,
34-14 section, or other part of this Act to other persons or
34-15 circumstances are not affected by that holding. To the extent of a
34-16 conflict between a provision of this Act and any other law or
34-17 statute, this Act controls.
34-18 SECTION 11.05. EMERGENCY. The importance of this
34-19 legislation and the crowded condition of the calendars in both
34-20 houses create an emergency and an imperative public necessity that
34-21 the constitutional rule requiring bills to be read on three several
34-22 days in each house be suspended, and this rule is hereby suspended,
34-23 and that this Act take effect and be in force from and after its
34-24 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2300 was passed by the House on May
7, 1997, by the following vote: Yeas 139, Nays 0, 2 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2300 was passed by the Senate on May
16, 1997, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor