Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Serna H.B. No. 2300
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 functions, operation, and financing of the Paseo del Este Municipal
1-4 Utility District; providing for the authorization of bonds and the
1-5 levy of taxes; providing civil penalties.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE I. GENERAL PROVISIONS
1-8 SECTION 1.01. CREATION. (a) By virtue of Section 59,
1-9 Article XVI, Texas Constitution, a conservation and reclamation
1-10 district is hereby created to be known as Paseo del Este Municipal
1-11 Utility District (hereinafter the "district"), which shall be a
1-12 governmental agency and a body politic and corporate.
1-13 (b) The district is created under and is essential to
1-14 accomplish the purposes of Section 59, Article XVI, Texas
1-15 Constitution. The district shall have all of the powers of
1-16 municipal utility districts established under Chapter 54, Water
1-17 Code, and the district shall conduct its affairs subject to
1-18 Chapters 50 and 54, Water Code, unless otherwise provided in this
1-19 Act.
1-20 SECTION 1.02. TERRITORY. (a) The district shall comprise
1-21 all of the following territory: Section 315 1/2, C. D. Stewart
1-22 Survey, El Paso County, Texas; Section 318, C. D. Stewart Survey,
1-23 El Paso County, Texas; Section 319, C. D. Stewart Survey, El Paso
1-24 County, Texas; the south one-half of Section 18, Texas and Pacific
2-1 Railroad Company Survey, Block 79, Township 3, El Paso County,
2-2 Texas; the northeast one-fourth out of Section 18, Texas and
2-3 Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-4 County, Texas, SAVE AND EXCEPT 39.37 acres, as described in a deed
2-5 of record at Volume 2039, Page 1312, Real Property Records of El
2-6 Paso County, Texas; the southwest one-fourth of Section 20, Texas
2-7 and Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-8 County, Texas; Section 22, Texas and Pacific Railroad Company
2-9 Survey, Block 79, Township 3, El Paso County, Texas, SAVE AND
2-10 EXCEPT: (1) 7.889 acres described in deed from Texas Pacific Land
2-11 Trust to Socorro Independent School District, recorded in Volume
2-12 1302, Page 769, Real Property Records of El Paso County, Texas, (2)
2-13 Tracts 2 and 3, as described in deed from the State of Texas to
2-14 375/10 Texas Land L.P., recorded in Volume 2595, Page 1504, Real
2-15 Property Records of El Paso County, Texas, (3) Tracts 2 and 3, as
2-16 described in deed from the State of Texas to MBJR Trust and Barry
2-17 Lang, recorded in Volume 2595, Page 1517, Real Property Records of
2-18 El Paso County, Texas, and (4) the northwest one-fourth of Section
2-19 22, Texas and Pacific Railroad Company Survey, Block 79, Township
2-20 3, El Paso County, Texas.
2-21 (b) A mistake in the patents or field notes, or in copying
2-22 the patents or field notes in the legislative process, does not
2-23 affect the organization, existence, or validity of the district,
2-24 the rights of the district to issue bonds or refunding bonds, or to
2-25 pay the principal of or interest on the bonds, the right of the
2-26 district to levy and collect taxes, or the legality or operation of
2-27 the district or its board.
2-28 (c) Land included within the boundaries of a special utility
2-29 district created under Section 59, Article XVI, Texas Constitution,
2-30 which is subject to a district's outstanding indebtedness secured
3-1 by taxes or net revenues on the effective date of this Act shall
3-2 not be included within the district. If the property described in
3-3 Subsection (a) of this section includes any land subject to a tax
3-4 or net revenue pledged by a district, it shall be excluded, and the
3-5 remainder of this Act shall not be affected thereby.
3-6 ARTICLE II. ADMINISTRATIVE PROVISIONS
3-7 SECTION 2.01. BOARD. The district shall be governed by and
3-8 all powers of the district shall be exercised by a board of five
3-9 directors.
3-10 SECTION 2.02. DIRECTOR ELIGIBILITY. Other than initial
3-11 directors, to be eligible for appointment as a director, a person
3-12 must meet the requirements of Section 54.102, Water Code. To be
3-13 eligible for appointment as an initial director, a person must be a
3-14 member of the School Land Board or a resident of El Paso County or
3-15 Travis County. Employment with a state agency shall not disqualify
3-16 a person for appointment to the board under Section 50.026, Water
3-17 Code.
3-18 SECTION 2.03. TERMS OF DIRECTORS AND APPOINTMENT PROCEDURES.
3-19 (a) Other than initial directors, directors serve staggered terms
3-20 of four years, with terms expiring September 1 of each odd-numbered
3-21 year.
3-22 (b) Appointment of initial directors shall be made promptly
3-23 by the School Land Board after this Act takes effect. The School
3-24 Land Board shall appoint two initial directors to serve terms
3-25 expiring September 1, 1997, and three initial directors to serve
3-26 terms expiring September 1, 1999. If an initial director dies,
3-27 resigns, or is otherwise removed, the School Land Board shall
3-28 appoint a successor to serve the unexpired term. When a director's
3-29 term expires, his successor shall be elected as provided in Section
3-30 2.04 of this Act.
4-1 SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. (a) Each
4-2 director shall serve his term of office as herein provided, and
4-3 thereafter until his successor shall be appointed or elected and
4-4 qualified. Elections for the appropriate number of permanent
4-5 directors are to be held on the first Saturday in May of each
4-6 odd-numbered year. The directors serve until September 1 of the
4-7 second odd-numbered year after the date of the election.
4-8 (b) Notice of elections shall be given by the board of
4-9 directors by publishing a copy thereof once a week for two
4-10 consecutive weeks in a newspaper of general circulation in the
4-11 district, the first publication being at least 14 days prior to the
4-12 election.
4-13 (c) Owners of land within the district shall be the only
4-14 qualified voters in the confirmation election to be held under
4-15 Section 54.026, Water Code. Each qualified voter in such election
4-16 shall have one vote per 500 acres of land owned within the
4-17 district. This subsection applies in the event of division of the
4-18 district under Article 8 of this Act.
4-19 SECTION 2.05. QUALIFIED VOTERS. If any owner of over 500
4-20 acres of land within the district is a constitutional fund of the
4-21 state, the members of the state board responsible for administering
4-22 the land holdings of such fund shall each be qualified voters
4-23 within the district.
4-24 SECTION 2.06. QUALIFICATION OF DIRECTOR. Except for initial
4-25 directors, no person shall be qualified to serve as a director
4-26 unless he resides in and owns taxable property in the district.
4-27 Initial directors shall be over 18 years of age and residents of
4-28 either El Paso County or Travis County. No employee of the
4-29 district shall serve as director. Directors shall subscribe the
4-30 constitutional oath of office. Except for the initial directors,
5-1 each director shall give bond for the faithful performance of his
5-2 duties as is required by Section 54.116, Water Code, the cost of
5-3 which shall be paid by the district.
5-4 SECTION 2.07. MEETINGS AND ACTIONS OF BOARD. (a) The board
5-5 may establish regular meetings to conduct district business and may
5-6 hold special meetings at other times as the business of the
5-7 district requires. The board shall hold its meetings within the
5-8 district unless the board, by a majority vote at a public meeting,
5-9 votes to hold a meeting or meetings outside the district.
5-10 (b) A majority of the directors shall constitute a quorum of
5-11 the board. A vote of a majority of the quorum present shall be
5-12 necessary to pass on any question before the board. The board may
5-13 adopt bylaws to govern its affairs. The board may adopt a seal for
5-14 the district. The board may provide in the bylaws that, except for
5-15 the initial directors, each director shall receive a fee of $20 for
5-16 attending each meeting of the board, provided that not more than
5-17 $40 shall be paid to any director for meetings held in any one
5-18 calendar month.
5-19 SECTION 2.08. ORGANIZATION OF BOARD. The board of directors
5-20 shall elect from its members a president and a vice president of
5-21 the district and such other officers as in the judgment of the
5-22 board are necessary. The president shall be the chief executive
5-23 officer of the district and the presiding officer of the board and
5-24 shall have the same right to vote as any other director. The vice
5-25 president shall perform all duties and exercise all powers
5-26 conferred by this Act on the president when the president is absent
5-27 or fails or declines to act. The board shall also appoint a
5-28 secretary and a treasurer who may or may not be members of the
5-29 board, and it may combine such offices. The treasurer shall give
5-30 bond in the amount required by the board of directors, but in no
6-1 event less than $100,000. The condition of the bond shall be that
6-2 the treasurer will faithfully account for all money which comes
6-3 into the treasurer's custody. Until the district authorizes the
6-4 issuance of bonds, the amount of the official bond of the treasurer
6-5 may be fixed by the board of directors in an amount not less than
6-6 $5,000.
6-7 SECTION 2.09. INTEREST IN CONTRACT. A director who is
6-8 financially interested in a contract proposed to be executed by the
6-9 district for the purchase of property or services or for the
6-10 construction of facilities shall disclose the interest to the board
6-11 and may not vote on the acceptance of the contract.
6-12 SECTION 2.10. DISTRICT EMPLOYEES. The board shall have
6-13 authority to employ a general manager and all consulting engineers,
6-14 financial consultants, attorneys, and auditors. The general
6-15 manager shall be responsible for:
6-16 (1) administering the board's directives;
6-17 (2) keeping the district's records, including minutes
6-18 of board meetings;
6-19 (3) coordinating with federal, state, and local
6-20 agencies;
6-21 (4) developing plans and programs for the board's
6-22 approval;
6-23 (5) hiring, supervising, training, and discharging the
6-24 district's employees;
6-25 (6) obtaining technical, scientific, legal, fiscal,
6-26 and other professional services; and
6-27 (7) performing any other duties the board assigns.
6-28 SECTION 2.11. EMPLOYEE BONDS. (a) The general manager and
6-29 each employee of the district who is charged with the collection,
6-30 custody, or payment of any money of the district shall execute a
7-1 fidelity bond in an amount determined by the board and in a form
7-2 and with a surety approved by the board.
7-3 (b) The district shall pay the premium on each employee bond
7-4 under this section.
7-5 SECTION 2.12. PRINCIPAL OFFICE. Until such time as it
7-6 issues bonds, the district may maintain its principal office in
7-7 either El Paso County or Travis County, provided that, if the
7-8 district maintains its principal office in Travis County, it shall
7-9 maintain duplicate records in El Paso County, and the duplicate
7-10 records shall be available for inspection during regular business
7-11 hours. After it issues bonds, the district shall maintain its
7-12 office in El Paso County.
7-13 SECTION 2.13. RECORDS. (a) The district shall keep at its
7-14 principal office:
7-15 (1) complete and accurate accounts of its business
7-16 transactions in accordance with generally accepted methods of
7-17 accounting;
7-18 (2) complete and accurate minutes of its meetings; and
7-19 (3) its contracts, documents, and other records.
7-20 (b) The district shall permit reasonable public inspection
7-21 of its records during regular business hours.
7-22 SECTION 2.14. SUIT. The district may sue and be sued in its
7-23 corporate name.
7-24 ARTICLE 3. POWERS AND DUTIES
7-25 SECTION 3.01. POWERS AND DUTIES. (a) The district shall:
7-26 (1) administer and enforce the terms of this Act;
7-27 (2) use its facilities and powers to accomplish the
7-28 purposes of this Act;
7-29 (3) coordinate the provision of water, wastewater, and
7-30 drainage services; and
8-1 (4) control and abate water pollution within the
8-2 district.
8-3 (b) In designing utility infrastructure and related systems,
8-4 the district shall submit for review to any municipal corporation
8-5 with a population in excess of 300,000 according to the most recent
8-6 federal census, provided the corporate boundary of such municipal
8-7 corporation is contiguous to the district, its design plans and
8-8 specifications for the utility infrastructure and related systems.
8-9 In connection with the submission, the district shall pay to the
8-10 municipal corporation the fee for review, if any, which has been
8-11 established by municipal ordinance and has general application for
8-12 reviews of this type, and the municipal corporation shall complete
8-13 its review of the design plans and specifications within 60 days
8-14 after their delivery. In connection with the construction of its
8-15 utility infrastructure, the district shall meet or exceed the
8-16 construction standards with regard to materials and installation
8-17 specifications of any municipal corporation with a population in
8-18 excess of 300,000 according to the most recent federal census,
8-19 provided the corporate boundary of such municipal corporation is
8-20 contiguous to the district.
8-21 (c) Subject only to the authority of the Texas Natural
8-22 Resource Conservation Commission, the district has the authority to
8-23 control and abate water pollution within the district. Such
8-24 authority of the district will neither reduce nor eliminate the
8-25 authority of a municipal corporation to control and abate water
8-26 pollution within the district under applicable state or federal
8-27 law.
8-28 (d) Except as expressly limited by this Act, the district
8-29 shall have all of the powers, rights, and privileges necessary and
8-30 convenient for accomplishing the purposes of this Act conferred by
9-1 general law on any municipal utility district or water control and
9-2 improvement district created under Section 59, Article XVI, Texas
9-3 Constitution.
9-4 (e) The powers granted to the district in this Act are
9-5 cumulative of all powers granted by other law.
9-6 SECTION 3.02. DISTRICT RULES. (a) The district may adopt
9-7 and enforce rules reasonably required to implement this Act,
9-8 including rules governing procedure and practice before the board.
9-9 (b) The district shall print its rules and furnish copies of
9-10 the rules to any person on written request.
9-11 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. In addition
9-12 to the powers conferred on it under Section 54.216, Water Code, the
9-13 district may enter public or private property in the district for
9-14 the purpose of inspecting and investigating conditions relating to
9-15 its authorized purposes under the same provisions and restrictions
9-16 applicable to the Texas Natural Resource Conservation Commission.
9-17 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may:
9-18 (1) hold hearings, receive evidence from any party in
9-19 interest who appears before the board, compel the attendance of
9-20 witnesses, and make findings of fact and determinations with
9-21 respect to administering this Act or any order or rule of the
9-22 district; and
9-23 (2) delegate to one or more of its members or
9-24 employees the authority to take testimony and administer oaths in
9-25 any hearing held or authorized to be held by the district.
9-26 (b) An order of the board must be:
9-27 (1) in the district's name; and
9-28 (2) attested by proper members of the board under the
9-29 district's rules.
9-30 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who
10-1 violates a rule, permit, or order of the district is subject to a
10-2 civil penalty of not less than $50 and not more than $1,000 for
10-3 each violation or each day of a continuing violation.
10-4 (b) The district may sue to enjoin a threatened or present
10-5 activity or to recover the penalty in a district court in the
10-6 county where the violation occurred. The penalty shall be paid to
10-7 the district.
10-8 SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.
10-9 (a) The district is authorized to acquire water appropriation
10-10 permits, construction permits, and other water and wastewater
10-11 discharge permits directly from the Texas Natural Resource
10-12 Conservation Commission or from owners of permits. The district is
10-13 also authorized to acquire water or a water supply from any person,
10-14 firm, corporation, municipal corporation, public agency, the State
10-15 of Texas, or the United States government or any of its agencies.
10-16 The district may, within the discretion of its board, contract with
10-17 one or more substantial users of water to acquire such water supply
10-18 under an agreed allocation of storage space between the district
10-19 and the user or may contract independently for the district's water
10-20 supply. The district is authorized to collect, transport, process,
10-21 dispose of, and control all domestic, industrial, or communal
10-22 wastes, whether in fluid, solid, or composite state. The district
10-23 is authorized to contract with any person, firm, corporation,
10-24 municipal corporation, public agency, the State of Texas, or the
10-25 United States government or any of its agencies for the collection,
10-26 transportation, processing, disposition, and control of all
10-27 domestic, industrial, or communal wastes. Such contracting
10-28 authority includes the authority to enter into coordinated
10-29 infrastructure plans or regional utility plans.
10-30 (b) The district is authorized to enter into contracts with
11-1 the State of Texas, cities and districts organized pursuant to
11-2 Section 59, Article XVI, Texas Constitution, and others for
11-3 supplying water or providing services pertaining to domestic,
11-4 industrial, or commercial wastes. The district is also authorized
11-5 to contract with any city, district, or other person for the rental
11-6 or leasing of or for the operation of the water production, water
11-7 supply, water filtration or purification, and water supply
11-8 facilities and facilities for providing services pertaining to the
11-9 wastes of the city, the district, or other person for such
11-10 consideration as the district and the city, the district, or other
11-11 person may agree on. Any such contract may be on such terms and
11-12 for such time as the parties may agree, and it may provide that it
11-13 shall continue in effect until bonds or notes specified therein and
11-14 refunding bonds issued in lieu of such bonds or notes are paid.
11-15 All such cities and districts are authorized to enter into such
11-16 contracts with the district to fix, charge, and collect fees,
11-17 rates, charges, rentals, and other amounts for any service or
11-18 facilities provided pursuant to or in connection with any contract
11-19 with this district and to pledge such amounts sufficient to make
11-20 all payments required under the contract.
11-21 (c) With regard to land use planning, the district shall
11-22 encourage owners and developers of land within the district to use
11-23 and develop their land and buildings in a manner consistent with
11-24 building codes, housing codes, fire codes, subdivision regulations,
11-25 zoning regulations, thoroughfare plans, water conservation plans,
11-26 land use plans, and other land development and safety regulations
11-27 of each adjacent municipal corporation with a population in excess
11-28 of 300,000 according to the most recent federal census.
11-29 SECTION 3.07. FACILITIES. In addition to authority
11-30 conferred on it under Sections 54.201 and 54.211, Water Code, the
12-1 district is authorized to purchase, construct, acquire, own, lease,
12-2 operate, maintain, repair, improve, and extend, at any location
12-3 inside or outside its boundaries, in the sole discretion of the
12-4 district, land and any interest in land, any and all works,
12-5 improvements, facilities, plants, equipment, and appliances
12-6 incident, helpful, or necessary to provide for: (1) the control,
12-7 storage, preservation, transmission, treatment, and distribution
12-8 and use of storm water and floodwater, the water of rivers and
12-9 streams, and underground water, for municipal, domestic,
12-10 industrial, and other beneficial uses; and (2) the collection,
12-11 transportation, processing, disposition, and control of domestic,
12-12 industrial, or commercial wastes. The district shall have the
12-13 authority to enter into any contract with any person, firm,
12-14 corporation, city, district, municipal corporation, public agency,
12-15 or other political subdivision and to perform any other act
12-16 consistent with the powers herein granted to carry out any such
12-17 power.
12-18 SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. The
12-19 district is authorized to use any public roadway, street, alley, or
12-20 easement in El Paso County to accomplish its purposes, without the
12-21 necessity of securing a franchise or other governmental agreement,
12-22 provided that, with regard to the use of public roadways, streets,
12-23 alleys, or easements which belong to an adjacent municipal
12-24 corporation with a population in excess of 300,000 according to the
12-25 most recent federal census, the district shall obtain the written
12-26 consent of the municipal corporation prior to use thereof, and with
12-27 regard to the use of any roadway, street, alley or easement to
12-28 which such a municipal corporation has exclusive rights, district
12-29 use shall be subject to payment of a fee equal to the lesser of the
12-30 district's pro rata share, based upon actual area encumbered, of
13-1 the fair market value, or the initial purchase price for, such
13-2 roadway, street, alley, or easement.
13-3 SECTION 3.09. RELOCATION OF FACILITIES. In the event that
13-4 the district in the exercise of its powers makes necessary the
13-5 relocation, raising, rerouting, or changing the grade of or
13-6 altering the construction of any highway, railroad, electric
13-7 transmission line, pipeline, canal, or drainage ditch, all such
13-8 necessary relocation, raising, rerouting, changing of grade, or
13-9 alteration of construction shall be accomplished at the sole
13-10 expense of the district unless otherwise agreed on in writing by
13-11 interested parties; however, in the case of replacement, the cost
13-12 of such action shall be limited to the comparable replacement of
13-13 any replaced facility, less the replaced facility's net salvage
13-14 value.
13-15 ARTICLE 4. GENERAL FISCAL PROVISIONS
13-16 SECTION 4.01. DISBURSEMENT OF MONEY. The district may
13-17 disburse money only by check, draft, order, or other instrument
13-18 signed by the person or persons authorized in the board's bylaws or
13-19 by board resolution.
13-20 SECTION 4.02. FEES AND CHARGES. The district may establish
13-21 fees and charges not to exceed the amounts necessary to enable the
13-22 district to fulfill the obligations imposed on it by this Act.
13-23 SECTION 4.03. LOANS AND GRANTS. The district may apply for
13-24 and receive loans and grants from the federal or the state
13-25 government or any agencies thereof, or from a private source, for
13-26 the purpose of carrying out one or more of its powers. The
13-27 district may enter into any agreement in connection with a loan or
13-28 grant that does not conflict with federal or state law.
13-29 SECTION 4.04. FISCAL YEAR. The board shall establish the
13-30 district's fiscal year.
14-1 SECTION 4.05. DEPOSITORY BANKS. (a) The board shall
14-2 designate one or more banks to serve as depository or depositories
14-3 for the funds of the district. Subject to Section 54.307, Water
14-4 Code, all funds of the district shall be deposited in the
14-5 depository bank or banks
14-6 (b) Before designating a depository bank, the board shall
14-7 publish notice at least once in a newspaper of general circulation
14-8 in the district requesting applications from banks interested in
14-9 serving as a depository. The notice shall include the time and
14-10 location of the board meeting at which the board proposes to
14-11 designate a depository bank. The board shall prescribe the term of
14-12 service of a depository bank.
14-13 (c) At the time stated in the notice required by Subsection
14-14 (b) of this section, the board shall consider the applications
14-15 received and the management and condition of each bank that files
14-16 an application. The board may designate as a depository the bank
14-17 or banks that offer the most favorable terms and conditions for the
14-18 handling of the district's money and that have proper management
14-19 and the ability to handle the district's money properly.
14-20 Membership of an officer or director of a bank on the board of the
14-21 district does not disqualify the bank from being designated as a
14-22 depository. Service as an officer or director of a bank does not
14-23 disqualify the officer or director of the bank from membership on
14-24 the board of the district.
14-25 (d) If no application is received by the time stated in the
14-26 notice, the board may designate a bank or banks on such terms and
14-27 conditions as the board considers prudent.
14-28 ARTICLE 5. BOND AND TAX PROVISIONS
14-29 SECTION 5.01. TAX; REVENUE BONDS. (a) For the purpose of
14-30 carrying out any power or authority conferred by this Act, the
15-1 district may issue its bonds or other obligations in three general
15-2 classes:
15-3 (1) secured by ad valorem taxes;
15-4 (2) secured by a pledge of all or part of the revenues
15-5 accruing to the district, including without limitation those
15-6 received from sale of water or other products, rendition of
15-7 service, tolls, charges, and all other sources other than ad
15-8 valorem taxes; and
15-9 (3) secured by a combination pledge of all or part of
15-10 the revenues described in Subdivision (2) of this subsection and
15-11 taxes.
15-12 (b) The obligations shall be authorized by resolution of the
15-13 board and shall be issued in the name of the district, shall be
15-14 signed by the president or any vice president, shall be attested to
15-15 by the secretary, and shall bear the seal of the district. If
15-16 authorized by the board, the signatures of the president or any
15-17 vice president and of the secretary, or of both, may be printed or
15-18 lithographed on the obligations, and the seal of the district may
15-19 be impressed on the obligations or may be printed or lithographed
15-20 on the obligations. The obligations shall be in the form
15-21 prescribed by the board, shall be in any denomination or
15-22 denominations, shall mature serially or otherwise in not to exceed
15-23 50 years from their date, shall bear any interest, may be sold at a
15-24 price and under terms determined by the board to be the most
15-25 advantageous reasonably obtainable, may be made callable prior to
15-26 maturity, at the discretion of the board, at the times and prices
15-27 prescribed in the obligations, and may be made registrable as to
15-28 principal or as to both principal and interest. The obligations
15-29 may be further secured by an indenture of trust with a corporate
15-30 trustee.
16-1 (c) Obligations may be issued in more than one series and
16-2 from time to time, as required for carrying out the purposes of
16-3 this Act. Any pledge of revenue may reserve the right, under
16-4 conditions therein specified, to issue additional obligations which
16-5 will be on a parity with or subordinate to the obligations then
16-6 being issued.
16-7 (d) The district is an "issuer" for the purpose of
16-8 definitions in Section 1, Chapter 656, Acts of the 68th
16-9 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
16-10 Civil Statutes).
16-11 (e) The resolution authorizing the obligations or the trust
16-12 indenture further securing the obligations may specify additional
16-13 provisions which shall constitute a contract between the district
16-14 and the owners of the obligations. The board shall have full
16-15 discretion in providing for the additional provisions, including
16-16 the authority to provide for a corporate trustee or receiver to
16-17 take possession of facilities of the district in the event of
16-18 default on the part of the district in fulfilling the covenants
16-19 therein made.
16-20 (f) The district shall not issue bonds secured by or
16-21 otherwise encumber permanent school fund land contained within the
16-22 boundaries of the district.
16-23 SECTION 5.02. BOND ANTICIPATION NOTES. The district may
16-24 issue bond anticipation notes from time to time for the purpose of
16-25 carrying out any one or more of its powers. Such bond anticipation
16-26 notes may or may not be secured by a pledge of all or part of the
16-27 revenues of the district. The district may from time to time
16-28 authorize the issuance of bonds for the purpose of providing
16-29 proceeds to pay the principal of and interest on bond anticipation
16-30 notes. Such bonds shall be secured by a pledge of all or part of
17-1 the revenues of the district and may be issued on a parity with or
17-2 subordinate to outstanding bonds of the issuer. If the resolution
17-3 or trust agreement authorizing the issuance of bond anticipation
17-4 notes contains a covenant to the effect that such notes shall be
17-5 payable from the proceeds of the subsequently issued bonds, it
17-6 shall not be necessary to demonstrate for the purposes of receiving
17-7 the approval of the attorney general or registration by the
17-8 comptroller that the revenues that may be pledged to such notes
17-9 will be sufficient to pay the principal of and interest on the
17-10 notes.
17-11 SECTION 5.03. REFUNDING BONDS. (a) The district may issue
17-12 refunding bonds to refund outstanding bonds and interest authorized
17-13 by this Act.
17-14 (b) Refunding bonds may:
17-15 (1) be issued to refund one or more series of
17-16 outstanding bonds;
17-17 (2) combine the pledges for the outstanding bonds for
17-18 the security of the refunding bonds; or
17-19 (3) be secured by other or additional revenues.
17-20 (c) The refunding bonds may be issued without having been
17-21 authorized at an election. The provisions of this Act applicable
17-22 to the district's issuance of other bonds, their security, their
17-23 approval by the attorney general, and the remedies of the holders
17-24 are applicable to refunding bonds.
17-25 (d) Refunding bonds shall be registered by the comptroller
17-26 on surrender and cancellation of the bonds to be refunded.
17-27 Alternatively, the resolution authorizing the issuance of refunding
17-28 bonds may provide that the bonds shall be sold and the resulting
17-29 proceeds deposited in the bank where the bonds to be refunded are
17-30 payable, in which case the refunding bonds may be issued in an
18-1 amount sufficient to pay the principal and interest of the bonds to
18-2 be refunded to their option or maturity date. The comptroller
18-3 shall register the refunding bonds without concurrent surrender and
18-4 cancellation of the bonds to be refunded.
18-5 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. District
18-6 bond review and approval shall be governed by the provisions of
18-7 Subchapter F, Chapter 54, Water Code.
18-8 SECTION 5.05. TAXATION. (a) Except for land owned by the
18-9 permanent school fund, the board may levy and collect ad valorem
18-10 taxes for the maintenance of the district and its improvements or
18-11 for administrative expenses of the district, or for both purposes,
18-12 in such amounts as are voted in accordance with this Act.
18-13 (b) The maintenance tax and administration tax shall not
18-14 exceed the maximum rate voted, and the authorized rate shall remain
18-15 in effect unless changed by subsequent vote.
18-16 SECTION 5.06. BONDS ARE AUTHORIZED INVESTMENTS. All bonds
18-17 and notes of the district shall be and are hereby declared to be
18-18 legal and authorized investments for banks, savings banks, trust
18-19 companies, savings and loan associations, insurance companies,
18-20 fiduciaries, trustees, and guardians and for the sinking funds of
18-21 cities, towns, villages, counties, school districts, or other
18-22 political corporations or subdivisions of the State of Texas. Such
18-23 bonds and notes shall be eligible to secure the deposit of any and
18-24 all public funds of the State of Texas and any and all public funds
18-25 of cities, towns, villages, counties, school districts, or other
18-26 political corporations or subdivisions of the State of Texas; and
18-27 such bonds shall be lawful and sufficient security for the deposits
18-28 to the extent of their value.
18-29 SECTION 5.07. PROPERTY: RENDITION; VALUATION; LEVY. (a)
18-30 The rendition and assessment of property for taxation, the
19-1 equalization of values, and the collection of taxes for the benefit
19-2 of the district shall be in accordance with the law applicable to
19-3 counties, insofar as such law can be made applicable, and except as
19-4 hereinafter specifically provided.
19-5 (b) The tax assessor-collector of each county shall act as
19-6 the tax assessor-collector for the district for property in the
19-7 district located in such county. It shall be the duty of the tax
19-8 assessor-collector in each county to cause to be placed on the
19-9 county tax rolls the additional column or columns needed to show
19-10 the taxes levied by the district and the amount thereof, based on
19-11 the value of the property as approved and equalized. The fee of
19-12 each county tax assessor-collector for assessing and collecting
19-13 taxes shall be one percent of the taxes collected, to be paid over
19-14 and disbursed in each county as are other fees of office.
19-15 (c) All the legal means available for the enforcement of
19-16 state and county taxes shall be available to the district. The
19-17 district shall have the right to cause the officers of each county
19-18 to enforce and collect the taxes due to the district in that county
19-19 as provided in the law for the enforcement of state and county
19-20 taxes.
19-21 (d) Taxes assessed and levied for the benefit of the
19-22 district shall be payable and shall become delinquent at the same
19-23 time, in the same manner, and subject to the same discount for
19-24 advance payment as taxes levied by and for the benefit of the
19-25 county in which the property is taxable. The fee for collecting
19-26 delinquent taxes through prosecution of suit shall be 15 percent of
19-27 the taxes collected by the suit, to be paid over and disbursed in
19-28 each county as are other fees of office.
19-29 (e) Concurrently with the levy of county taxes by the
19-30 commissioners courts, the board shall levy the tax on all taxable
20-1 property in the district which is subject to such taxation and
20-2 shall immediately certify the tax rate to the tax
20-3 assessor-collector of each county which lies inside the district.
20-4 ARTICLE 6. ADDITION OF LAND TO DISTRICT
20-5 SECTION 6.01. ANNEXATION. Notwithstanding any other
20-6 provision of law, other territory may be included in the district
20-7 as provided in Sections 6.02, 6.03, and 6.04 of this Act.
20-8 SECTION 6.02. PETITION. (a) The owner or owners of land
20-9 contiguous to the district or otherwise may file with the board a
20-10 petition requesting that there be included in the district the land
20-11 described in the petition by metes and bounds or by lot and block
20-12 number if there is a recorded plat of the area to be included in
20-13 the district.
20-14 (b) The petition of the landowner or landowners to add land
20-15 to the district shall be signed and executed in the manner provided
20-16 by law for the conveyance of real estate.
20-17 (c) The board shall hear and consider the petition and may
20-18 add to the district the land described in the petition if it is
20-19 considered to be to the advantage of the district and if the water
20-20 system and other improvements of the district are sufficient or
20-21 will be sufficient to supply the added land without injuring land
20-22 already in the district.
20-23 SECTION 6.03. NOTICE AND HEARING. (a) A petition
20-24 requesting the annexation of a defined area shall be filed with the
20-25 secretary of the board and shall be signed by a majority in value
20-26 of the owners of land in the defined area, as shown by the tax
20-27 rolls of the county or counties in which such area is located, or
20-28 signed by 50 landowners, if the number of landowners in the defined
20-29 area is more than 50.
20-30 (b) It shall be the duty of the board to pass an order
21-1 fixing a time and place at which the petition for annexation shall
21-2 be heard, which shall not be less than 15 days from the day of the
21-3 order calling the hearing.
21-4 (c) The secretary shall issue a notice setting forth the
21-5 time and place of the hearing and describing the area proposed to
21-6 be annexed. Notice of the hearing shall be given by posting copies
21-7 of the notice in three public places in the district and in one
21-8 public place in the area proposed to be annexed for at least seven
21-9 days before the day of the hearing and by publishing a copy of the
21-10 notice in a newspaper of general circulation in the county or
21-11 counties in which the area proposed to be annexed is located one
21-12 time at least seven days before the day of the hearing.
21-13 (d) If on the hearing of the petition it is found by the
21-14 board that the proposed annexation of the area of the district is
21-15 feasible and practicable and would be of benefit both to the area
21-16 and to the district, the board, by order entered in its minutes
21-17 describing the area to be annexed, may receive the proposed area as
21-18 an addition to and part of the district. The order adding the
21-19 proposed territory to the district need not include all of the land
21-20 described in the petition, if on the hearing a modification or
21-21 change is found necessary or desirable by the board.
21-22 SECTION 6.04. ANNEXATION ORDER. (a) A copy of the order
21-23 adding or annexing land to the district, signed by a majority of
21-24 the members of the board and attested to by the secretary of the
21-25 board, shall be filed and recorded in the deed records of the
21-26 county or counties in which the district is located if the land is
21-27 finally annexed to the district.
21-28 (b) After the order is recorded, the area shall be a part of
21-29 the district.
22-1 ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT
22-2 SECTION 7.01. PETITION. (a) Notwithstanding any other
22-3 provision of law, the board, provided there is no outstanding board
22-4 order regarding an election for the authorization of bonds payable
22-5 in whole or in part from taxes and/or provided the district does
22-6 not have any outstanding indebtedness secured by taxes or net
22-7 revenues of the district, may call a hearing on exclusion of land
22-8 from the district by petition of a landowner or on motion of the
22-9 board of directors.
22-10 (b) A petition for exclusion of land must accurately
22-11 describe the land to be excluded by metes and bounds or by
22-12 reference to a plat recorded in the plat records of the county or
22-13 counties in which the land is located. The petition must be signed
22-14 by the owner or owners of the land to be excluded, by at least 10
22-15 percent of the owners of land to be excluded, or by five or more of
22-16 the owners of land to be excluded if the number of owners is more
22-17 than 50, must be filed with the district at least 7 days before the
22-18 hearing on the petition for exclusion, and shall clearly state the
22-19 particular grounds on which exclusion is sought. Only the ground
22-20 stated in the petition shall be considered.
22-21 SECTION 7.02. NOTICE AND HEARING. (a) A hearing shall be
22-22 held on any petition for exclusion, but shall not be required for
22-23 exclusion by motion of the board.
22-24 (b) Notice of hearing shall be published by the board once a
22-25 week for two consecutive weeks in one or more newspapers of general
22-26 circulation in the district. The first publication shall appear at
22-27 least 14 days and not more than 40 days before the date of the
22-28 hearing.
22-29 (c) Before determining to exclude any land, the board shall
22-30 find that the district has no obligations that will be impaired by
23-1 the exclusion of the land, that the district will incur no
23-2 obligations because of the exclusion, and that the exclusion is in
23-3 the best interests of the district.
23-4 (d) After considering all engineering data and other
23-5 evidence presented to it, if the board makes the findings set forth
23-6 in Subsection (c) of this section, the board shall enter an order
23-7 excluding all land meeting the conditions and shall redefine the
23-8 boundaries of the district in order to embrace all land not
23-9 excluded. If the land to be excluded contains water or wastewater
23-10 customers of the district, such customers shall remain customers of
23-11 the district, and owners of lots to which water and wastewater
23-12 facilities have already been extended shall also be allowed to
23-13 connect to the district's system and shall be customers of the
23-14 district.
23-15 SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND. (a)
23-16 Except as provided by Subsection (c) of this section, an order
23-17 excluding land pursuant to a petition signed by the owner or owners
23-18 of the land to be excluded takes effect on the date the board
23-19 enters the order.
23-20 (b) Except as provided by Subsection (c) of this section, an
23-21 order excluding land pursuant to a petition signed by less than all
23-22 of the owners to be excluded takes effect:
23-23 (1) on the day following the deadline for submission
23-24 of a petition if the district does not receive a timely petition
23-25 under Subsection (b) of Section 7.04 of this Act; or
23-26 (2) on the day following the day the election returns
23-27 are canvassed if the district receives a timely petition under
23-28 Subsection (b) of Section 7.04 of this Act and the exclusion is
23-29 ratified at an election held for that purpose.
23-30 (c) Before an order excluding land under this section
24-1 becomes effective, all taxes levied and assessed by the district on
24-2 the land to be excluded shall be fully paid.
24-3 SECTION 7.04. PETITION FOR RATIFICATION ELECTION. (a) If
24-4 the board issues an order excluding land pursuant to a petition
24-5 signed by less than all of the owners of the land to be excluded,
24-6 the board shall publish notice describing the excluded land and
24-7 stating that the exclusion becomes final if the district does not
24-8 receive, within 25 days after the date of the board's order, a
24-9 petition requesting a ratification election that is signed by at
24-10 least 10 percent of the qualified voters that reside in the area to
24-11 be excluded.
24-12 (b) If the district receives, within 25 days after the date
24-13 of the board's order, a petition requesting a ratification election
24-14 that is signed by at least 10 percent of the qualified voters that
24-15 reside in the land area to be excluded, the order does not take
24-16 effect unless approved by a majority vote of the residents of the
24-17 district at a ratification election held for that purpose.
24-18 (c) The notice of the election, the manner and time of
24-19 giving the notice, the manner of holding the election, and
24-20 qualifications of the voters shall be governed by Subchapter E,
24-21 Chapter 51, Water Code.
24-22 ARTICLE 8. DIVISION OF DISTRICT
24-23 SECTION 8.01. CONDITIONS OF DIVISION. (a) The district may
24-24 from time to time, provided it does not have any outstanding
24-25 indebtedness secured by taxes or net revenues, divide into two or
24-26 more districts; however, no division shall occur that would result
24-27 in the creation of a district of less than 100 acres in size. On
24-28 petition of any landowner or on the board's own motion, the board
24-29 of directors may consider a proposal to divide the original
24-30 district or any district subsequently created by division.
25-1 (b) With regard to the foregoing authority to divide the
25-2 district into one or more districts, it is not the intent of this
25-3 Act to encourage or promote the proliferation of numerous utility
25-4 providers within the subject territory. Rather, this Act is
25-5 intended to encourage and promote orderly development within the
25-6 subject territory and to facilitate the provision of dependable,
25-7 efficient utility services at affordable rates to customers of the
25-8 district.
25-9 SECTION 8.02. ELECTION; AUTHORITY OF NEW DISTRICTS. (a)
25-10 After the board of the original district has agreed on the terms
25-11 and conditions of division, which shall include a plan for the
25-12 payment of any outstanding current obligations and performance of
25-13 any outstanding obligations of the original district, and has
25-14 prepared a metes and bounds description of the proposed districts,
25-15 it shall order an election to be held in the district to determine
25-16 whether the original district should be divided as proposed.
25-17 (b) The board of the original district shall be divided if a
25-18 majority of the qualified voters in the original district vote in
25-19 favor of the division. The resulting districts shall be designated
25-20 by consecutive letters following the number of the original
25-21 district. For example, Paseo del Este No. 1, if divided into two
25-22 districts, shall become Paseo del Este No. 1A and Paseo del Este
25-23 No. 1B. Each resulting district, in order to issue bonds payable
25-24 wholly or partially from ad valorem taxes, shall be required to
25-25 obtain authorization for the issuance of the bonds by a majority
25-26 vote of the qualified voters of the district voting in an election
25-27 called and held for that purpose. Notice of the election shall be
25-28 given as generally set forth for bond elections in Chapter 54,
25-29 Water Code. Each resulting district desiring to levy a maintenance
25-30 tax shall be required to obtain authorization for the tax by a
26-1 majority vote of the qualified voters of the district voting in an
26-2 election called and held for that purpose. Notice of the election
26-3 shall be given as generally set forth for such elections in Chapter
26-4 54, Water Code.
26-5 SECTION 8.03. APPOINTMENT AND ELECTION OF DIRECTORS. (a)
26-6 After the district is divided into two or more districts, the
26-7 resulting districts shall be separate districts and shall be
26-8 governed as separate districts, provided that, during a period of
26-9 90 days after the date of the election to approve division, the
26-10 board of the original district shall continue to act on behalf of
26-11 the original district to wind up its affairs. The board of the
26-12 original district shall appoint two initial directors to each
26-13 resulting district to serve terms expiring September 1 of the
26-14 second year after the creation of each resulting district, and the
26-15 board of the original district shall appoint three initial
26-16 directors to each resulting district to serve terms expiring
26-17 September 1 of the fourth year after creation of each resulting
26-18 district. A board member of the original district may be appointed
26-19 as a director of one of the resulting districts. In any election
26-20 held to confirm the creation of the district and appointment of
26-21 initial directors, Section 2.04 of this Act shall apply.
26-22 (b) If an initial director dies, resigns, or is otherwise
26-23 removed, the board of the new district shall appoint a successor to
26-24 serve the unexpired term. When a director's term expires, his
26-25 successor shall be elected as provided in Section 2.04 of this Act.
26-26 SECTION 8.04. PAYMENT OF DISTRICT DEBTS. After the division
26-27 of the original district into two or more districts, the current
26-28 obligations and any bond authorizations of the original district
26-29 are protected and are not impaired. The debts may be paid by
26-30 taxes, revenues, or assessments levied on the land in the original
27-1 district as if it had not divided or with contributions from each
27-2 of the resulting districts on terms stated in the division proposed
27-3 by the board and approved by the election under Section 8.02 of
27-4 this Act.
27-5 SECTION 8.05. AUTHORITY OF RESULTING DISTRICTS. After
27-6 division, each of the resulting districts shall have the power to
27-7 incur and pay debts created by each district and shall in every
27-8 respect have the full power and authority of a district created and
27-9 governed by the provisions of this Act. Each of the resulting
27-10 districts shall have the authority to contract with one another for
27-11 the provision of water and wastewater services and for such other
27-12 matters as the board of directors of each of the districts deems
27-13 appropriate.
27-14 SECTION 8.06. ASSUMPTION OF OBLIGATIONS. After division,
27-15 each of the resulting districts shall assume the obligations of the
27-16 original district under any agreements or resolutions consenting to
27-17 the creation of the original district to the extent that such
27-18 agreements and resolutions do not impose obligations that limit the
27-19 district's powers and authority to issue bonds for any purpose
27-20 authorized by this Act. Any other obligations of the original
27-21 district shall be divided pro rata among the resulting districts
27-22 either on an acreage basis or on such other terms as are
27-23 satisfactory to the resulting districts.
27-24 SECTION 8.07. NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION
27-25 COMMISSION. Within 30 days after a division election, the original
27-26 district that confirms a plan for division shall provide written
27-27 notice of such plan to the Texas Natural Resource Conservation
27-28 Commission.
27-29 ARTICLE 9. ANNEXATION AND DISSOLUTION OF DISTRICT
27-30 SECTION 9.01. ANNEXATION. (a) Notwithstanding any other
28-1 provision of law, on the annexation of the district or districts,
28-2 in the event of division under Article 8 of this Act, the annexing
28-3 municipality shall:
28-4 (1) assume all of the outstanding indebtedness of the
28-5 district;
28-6 (2) dissolve the district within six months of
28-7 annexation and become the owner of all district assets, including,
28-8 without limitation, all accounts receivable and the right to
28-9 collect all outstanding taxes, delinquent taxes, and other
28-10 indebtedness;
28-11 (3) refrain from imposing city taxes on property
28-12 located within the district at any time prior to dissolution of the
28-13 district;
28-14 (4) provide all city utility, emergency medical, fire,
28-15 police, garbage collection, and other standard municipal services
28-16 to residents of the district at the same rate as such services are
28-17 provided to in-city residents of similar developments; and
28-18 (5) with regard to zoning and other land use
28-19 regulation, honor regional land use planning within the district.
28-20 (b) Notwithstanding subsection (a)(4) of this section, the
28-21 annexing municipality may, following annexation and dissolution of
28-22 the district, impose water supply fees, impact fees, and other
28-23 assessments allowed by state law on property previously located
28-24 within the district, provided that the annexing municipality shall
28-25 not impose any such fee and/or assessment on property which had
28-26 received a utility service allocation by the district and/or
28-27 property for which site development has been authorized and/or on
28-28 which site development has commenced.
28-29 (c) Immediately on annexation of the district, the district
28-30 shall transfer all district assets to the annexing municipal
29-1 corporation in accordance with the instruments approved by the
29-2 annexing municipal corporation and the district.
29-3 ARTICLE 10. AFFORDABLE HOUSING
29-4 SECTION 10.01. A minimum of five percent of the residential
29-5 housing units within the district shall be utilized for the
29-6 construction of affordable housing, such affordable housing to be
29-7 distributed among different residential areas within the district.
29-8 In this section, "affordable housing" means housing available to
29-9 those with low, or very low income levels, as those levels are
29-10 determined periodically by the United States Department of Housing
29-11 and Urban Development based on the El Paso Standard Metropolitan
29-12 Statistical Area.
29-13 ARTICLE 11. MISCELLANEOUS PROVISIONS
29-14 SECTION 11.01. NO TAXATION. The accomplishment of the
29-15 purposes stated in this Act being for the benefit of the people of
29-16 this state and for the improvement of their properties and
29-17 industries, the district in carrying out the purposes of this Act
29-18 will be performing an essential public function under the
29-19 constitution and shall not be required to pay any tax or assessment
29-20 on the project or any part thereof, and the bonds or notes issued
29-21 under this Act and their transfer and the income therefrom,
29-22 including the profits made on the sale thereof, shall at all times
29-23 be free from taxation within this state.
29-24 SECTION 11.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
29-25 The proper and legal notice of the intention to introduce this Act,
29-26 setting forth the general substance of this Act, has been published
29-27 as provided by law, and the notice and a copy of this Act have been
29-28 furnished to all persons, agencies, officials, or entities to which
29-29 they are required to be furnished by the constitution and other
29-30 laws of this state, including the governor. All requirements of
30-1 the constitution and laws of this state and the rules and
30-2 procedures of the legislature with respect to the notice,
30-3 introduction, and passage of this Act are fulfilled and
30-4 accomplished.
30-5 SECTION 11.03. SEVERABILITY. If any word, phrase, clause,
30-6 sentence, paragraph, section, or other part of this Act or the
30-7 application thereof to any person or circumstance shall ever be
30-8 held to be invalid or unconstitutional by a court of competent
30-9 jurisdiction in this state, the remainder of the Act and the
30-10 application of such word, phrase, clause, sentence, paragraph,
30-11 section, or other part of this Act to other persons or
30-12 circumstances shall not be affected thereby. To the extent of a
30-13 conflict between a provision of this Act and any other law or
30-14 statute, this Act shall control.
30-15 SECTION 11.04. EMERGENCY. The importance of this
30-16 legislation and the crowded condition of the calendars in both
30-17 houses create an emergency and an imperative public necessity that
30-18 the constitutional rule requiring bills to be read on three several
30-19 days in each house be suspended, and this rule is hereby suspended,
30-20 and that this Act take effect and be in force from and after its
30-21 passage, and it is so enacted.