1-1     By:  Serna, Chavez (Senate Sponsor - Shapleigh)       H.B. No. 2300

 1-2           (In the Senate - Received from the House May 8, 1997;

 1-3     May 9, 1997, read first time and referred to Committee on Natural

 1-4     Resources; May 15, 1997, reported favorably by the following vote:

 1-5     Yeas 11, Nays 0; May 15, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the creation, administration, powers, duties,

 1-9     operation, and financing of the Paseo del Este Municipal Utility

1-10     District and to the authorization of bonds and the levy of taxes;

1-11     providing civil penalties.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13                       ARTICLE 1.  GENERAL PROVISIONS

1-14           SECTION 1.01. CREATION.  (a)  A conservation and reclamation

1-15     district, to be known as Paseo del Este Municipal Utility District,

1-16     is created.  The district is a governmental agency and a body

1-17     politic and corporate.

1-18           (b)  The district is created under and is essential to

1-19     accomplish the purposes of Section 59, Article XVI, Texas

1-20     Constitution.

1-21           (c)  The district has the powers of a municipal utility

1-22     district as provided by Chapter 54, Water Code, and is governed by

1-23     Chapters 49 and 54, Water Code, unless otherwise provided by this

1-24     Act.

1-25           SECTION 1.02.  DEFINITIONS.  In this Act:

1-26                 (1)  "District" means the Paseo del Este  Municipal

1-27     Utility District.

1-28                 (2)  "Board" means the board of directors of the Paseo

1-29     del Este Municipal Utility District or a district resulting from a

1-30     division under Article 8 of this Act.

1-31           SECTION 1.03.  BOUNDARIES.  (a)  Except as provided by

1-32     Subsection (c) of this section, the district includes the territory

1-33     contained within the following area:  Section 315 1/2, C. D.

1-34     Stewart Survey, El Paso County, Texas; Section 318, C. D. Stewart

1-35     Survey, El Paso County, Texas; Section 319, C. D. Stewart Survey,

1-36     El Paso County, Texas; the south one-half of Section 18, Texas and

1-37     Pacific Railroad Company Survey, Block 79, Township 3, El Paso

1-38     County, Texas; the northeast one-fourth out of Section 18, Texas

1-39     and Pacific Railroad Company Survey, Block 79, Township 3, El Paso

1-40     County, Texas, SAVE AND EXCEPT 39.37 acres described in a deed of

1-41     record at Volume 2039, Page 1312, Real Property Records of El Paso

1-42     County, Texas; the southwest one-fourth of Section 20, Texas and

1-43     Pacific Railroad Company Survey, Block 79, Township 3, El Paso

1-44     County, Texas; Section 22, Texas and Pacific Railroad Company

1-45     Survey, Block 79, Township 3, El Paso County, Texas, SAVE AND

1-46     EXCEPT:  (1) 7.889 acres described in deed from Texas Pacific Land

1-47     Trust to Socorro Independent School District, recorded in Volume

1-48     1302, Page 769, Real Property Records of El Paso County, Texas, (2)

1-49     Tracts 2 and 3, as described in deed from the State of Texas to

1-50     375/10 Texas Land L.P., recorded in Volume 2595, Page 1504, Real

1-51     Property Records of El Paso County, Texas, (3) Tracts 2 and 3, as

1-52     described in deed from the State of Texas to MBJR Trust and Barry

1-53     Lang, recorded in Volume 2595, Page 1517, Real Property Records of

1-54     El Paso County, Texas, and (4) the northwest one-fourth of Section

1-55     22, Texas and Pacific Railroad Company Survey, Block 79, Township

1-56     3, El Paso County, Texas.

1-57           (b)  A mistake in the patents or field notes or in copying

1-58     the patents or field notes in the legislative process does not

1-59     affect the organization, existence, or validity of the district,

1-60     the right of the district to issue bonds or refunding bonds or to

1-61     pay the principal of or interest on issued bonds, the right of the

1-62     district to levy and collect taxes, or the  legality or operation

1-63     of the district or its governing board.

1-64           (c)  The district does not include territory described by

 2-1     Subsection (a) of this section that is subject to the outstanding

 2-2     indebtedness secured by taxes or net revenues of a special utility

 2-3     district created under Section 59, Article XVI, Texas Constitution,

 2-4     on the effective date of this Act.  If territory described by

 2-5     Subsection (a) of this section is subject to a tax or net revenue

 2-6     pledged by a special utility district created under Section 59,

 2-7     Article XVI, Texas Constitution, the territory that is subject to

 2-8     the tax or net revenue is excluded from the territory described by

 2-9     Subsection (a) of this section.  The exclusion of territory under

2-10     this subsection does not affect the validity of this Act.

2-11                    ARTICLE 2.  ADMINISTRATIVE PROVISIONS

2-12           SECTION 2.01.  BOARD.  The district shall be governed by and

2-13     all powers of the district shall be exercised by a board of five

2-14     directors.

2-15           SECTION 2.02.  DIRECTOR ELIGIBILITY.  Except for initial

2-16     directors, a person must meet the requirements of Section 54.102,

2-17     Water Code, to be eligible to serve as a director.  A person must

2-18     be at least 18 years of age and a resident of El Paso County or

2-19     Travis County to be eligible to serve as an initial director.

2-20     Notwithstanding Section 49.052, Water Code, employment with a state

2-21     agency, other than the General Land Office or the School Land

2-22     Board, does not disqualify a person from serving as a director.  An

2-23     employee of the district may not serve as a director.

2-24           SECTION 2.03.  TERMS OF OFFICE AND APPOINTMENT OF DIRECTORS.

2-25     (a)  Except for initial directors, directors serve staggered

2-26     four-year terms, with the terms of two or three directors expiring

2-27     September 1 of each even-numbered year.

2-28           (b)  The School Land Board shall appoint five initial

2-29     directors as soon as practicable after the effective date of this

2-30     Act.  The School Land Board shall appoint two initial directors to

2-31     serve terms expiring September 1, 2000, and three initial directors

2-32     to serve terms expiring September 1, 2002.  If a vacancy occurs,

2-33     the School Land Board shall appoint a successor to fill the vacancy

2-34     and to serve the remainder of the unexpired term.  Initial

2-35     directors shall serve until permanent directors are elected under

2-36     Section 2.04 of this Act and qualify for office.

2-37           SECTION 2.04.  ELECTION OF PERMANENT DIRECTORS.  (a)  A

2-38     director serves until the director's successor has qualified.  An

2-39     election shall be held for the election of the appropriate number

2-40     of permanent directors on the first Saturday in May of each

2-41     even-numbered year.

2-42           (b)  The board shall publish notice of an election under this

2-43     section once a week for two consecutive weeks in a newspaper of

2-44     general circulation in the district beginning not later than 14

2-45     days before the date of the election.

2-46           SECTION 2.05. QUALIFICATION OF DIRECTOR.  A director shall

2-47     take the constitutional oath of office and, except for initial

2-48     directors, give bond for the faithful performance of the director's

2-49     duties as required by Section 49.055, Water Code.  The cost of a

2-50     bond under this section shall be paid by the district.

2-51           SECTION 2.06.  MEETINGS AND BOARD ACTIONS.  (a)  The board

2-52     may establish regular meetings to conduct the business of the

2-53     district and may hold special meetings if necessary as determined

2-54     by the board.  The board shall hold a meeting under this section

2-55     within the district unless the board, by a majority vote at a

2-56     public meeting, decides to hold the meeting outside of the

2-57     district.

2-58           (b)  A majority of the directors shall constitute a quorum of

2-59     the board.  A vote of a majority of the quorum present is necessary

2-60     to take board action.  The board may adopt bylaws to govern the

2-61     affairs of the district and may adopt a seal for the district.  The

2-62     board may provide in the bylaws that, except for initial directors,

2-63     a director shall receive compensation of $20 for attending a

2-64     meeting of the board.  A director may not be paid more than $40 for

2-65     meetings held in a calendar month.

2-66           SECTION 2.07. ORGANIZATION OF BOARD OF DIRECTORS.  The board

2-67     shall elect a president and vice president from members of the

2-68     board.  The board may elect other officers as are deemed necessary

2-69     by the board.  The president is the chief executive officer of the

 3-1     district and the presiding officer of the board and has the same

 3-2     right to vote as other members of the board. The vice president

 3-3     shall perform the duties and exercise the powers of the president

 3-4     if the president is absent, fails to act, or refuses to act.  The

 3-5     board shall appoint a secretary and treasurer.  The  secretary and

 3-6     treasurer may be, but are not required to be, members of the board.

 3-7     One person may serve as both secretary and treasurer.  The

 3-8     treasurer shall give bond in an amount required by the board.  The

 3-9     condition of the bond shall be that the treasurer will faithfully

3-10     account for all money that comes into the custody of the treasurer.

3-11     The board shall require a bond under this section of at least

3-12     $100,000 if the district has authorized the issuance of bonds.  If

3-13     the district has not authorized the issuance of bonds, the board

3-14     shall require a bond of at least $5,000.

3-15           SECTION 2.08.  CONFLICT OF INTEREST: CONTRACT.  A director

3-16     who is financially interested in a contract that is proposed to be

3-17     executed by the board for the purchase of property or services or

3-18     for the construction of facilities shall disclose the director's

3-19     interest to the board and may not vote on the acceptance of the

3-20     contract.

3-21           SECTION 2.09.  DISTRICT EMPLOYEES.  The board is authorized

3-22     to employ a general manager and consulting engineers, financial

3-23     consultants, attorneys, and auditors.  The general manager shall be

3-24     responsible for:

3-25                 (1)  administering the board's directives;

3-26                 (2)  maintaining district records, including minutes of

3-27     board meetings;

3-28                 (3)  coordinating with federal, state, and local

3-29     agencies;

3-30                 (4)  developing plans and programs for the board's

3-31     approval;

3-32                 (5)  hiring, supervising, training, and discharging the

3-33     district's employees;

3-34                 (6)  obtaining technical, scientific, legal, fiscal, or

3-35     other professional services for the district; and

3-36                 (7)  performing other duties as assigned by the board.

3-37           SECTION 2.10.  EMPLOYEE BONDS.  (a)  The general manager and

3-38     each employee of the district who is charged with the collection,

3-39     custody, or payment of district money shall execute a fidelity bond

3-40     in an amount determined by the board and in a form and with a

3-41     surety approved by the board.

3-42           (b)  The district shall pay the premium on a bond under this

3-43     section.

3-44           SECTION 2.11.  PRINCIPAL OFFICE.  (a)  If the district has

3-45     not issued bonds, the district may maintain its principal office in

3-46     El Paso County or Travis County.  If the district maintains its

3-47     principal office in Travis County, the district shall maintain

3-48     duplicates of district records in El Paso County and make the

3-49     duplicate records available for inspection during regular business

3-50     hours.

3-51           (b)  If the district has issued bonds, the district shall

3-52     maintain its principal office in El Paso County.

3-53           SECTION 2.12.  RECORDS.  (a)  The district shall keep at its

3-54     principal office:

3-55                 (1)  a complete and accurate account of the district's

3-56     business transactions in accordance with generally accepted

3-57     accounting methods;

3-58                 (2)  a complete and accurate record of the minutes of

3-59     board meetings; and

3-60                 (3)  contracts, documents, and other records of the

3-61     district.

3-62           (b)  The district shall permit reasonable public inspection

3-63     of the district's records during regular business hours.

3-64           SECTION 2.13.  SUIT.  The district may sue and be sued in the

3-65     district's corporate name.

3-66                      ARTICLE 3.  AUTHORITY OF DISTRICT

3-67           SECTION 3.01.  POWERS AND DUTIES.  (a)  The district shall:

3-68                 (1)  administer and enforce the provisions of this Act;

3-69                 (2)  use the facilities and powers of the district to

 4-1     accomplish the purposes of this Act;

 4-2                 (3)  coordinate water, wastewater, and drainage

 4-3     services within the district; and

 4-4                 (4)  control and abate water pollution within the

 4-5     district.

 4-6           (b)  When designing utility infrastructure and related

 4-7     systems, the district shall submit for review to a municipality

 4-8     with a population in excess of 300,000, according to the most

 4-9     recent federal census, and with a municipal boundary that is

4-10     contiguous to the district the district's design plans and

4-11     specifications for the utility infrastructure and related systems.

4-12     The district shall pay to the municipality a fee for conducting the

4-13     review if the municipality has established a fee that has general

4-14     application for comparable reviews.  The municipality shall

4-15     complete the review of the design plans and specifications not

4-16     later than the 60th day after the date on which the plans and

4-17     specifications are delivered to the municipality. In constructing

4-18     the utility infrastructure, the district shall meet or exceed the

4-19     construction standards for  materials and installation

4-20     specifications of a municipality with a population in excess of

4-21     300,000, according to the most recent federal census, and with a

4-22     municipal boundary that is contiguous to the district.

4-23           (c)  Subject to the authority of the Texas Natural Resource

4-24     Conservation Commission, the district has the authority to control

4-25     and abate water pollution within the district.  The authority of

4-26     the district under this subsection does not reduce or eliminate the

4-27     authority of a municipality to control and abate water pollution

4-28     within the district under state or federal law.

4-29           (d)  Except as provided by this Act, the district has the

4-30     powers, rights, and privileges necessary and convenient for

4-31     accomplishing the purposes of this Act as provided by general law

4-32     relating to a municipal utility district or water control and

4-33     improvement district created under Section 59, Article XVI, Texas

4-34     Constitution.

4-35           (e)  The powers granted to the district by this Act are

4-36     cumulative of powers granted by other law.

4-37           SECTION 3.02.  DISTRICT RULES.  (a)  The district may adopt

4-38     and enforce rules reasonably required to implement this Act,

4-39     including rules governing procedure and practice before the board.

4-40           (b)  The district shall keep a record of the district's rules

4-41     and provide a copy of the rules to a person on written request.

4-42           SECTION 3.03.  INSPECTIONS AND INVESTIGATIONS.  In addition

4-43     to the powers provided by Section 49.221, Water Code, the district

4-44     may enter public or private property located within the district

4-45     for purposes of inspecting and investigating conditions of the

4-46     property relating to the district's authorized purposes.  The

4-47     district shall conduct an inspection or investigation in accordance

4-48     with provisions and restrictions applicable to the Texas Natural

4-49     Resource Conservation Commission.

4-50           SECTION 3.04.  HEARINGS AND ORDERS.  (a)  The board may:

4-51                 (1)  hold hearings, receive evidence from a party in

4-52     interest who appears before the board, compel the attendance of a

4-53     witness, and make findings of fact and determinations relating to

4-54     the administration of this Act or an order or rule of the board;

4-55     and

4-56                 (2)  delegate the authority to take testimony and

4-57     administer oaths in a hearing held by the district to a member of

4-58     the board or an employee of the district.

4-59           (b)  An order of the board must:

4-60                 (1)  be in the name of the district; and

4-61                 (2)  be attested to by the appropriate members of the

4-62     board under the district's rules.

4-63           SECTION 3.05.  CIVIL PENALTY; INJUNCTION.  (a)  A person who

4-64     violates a rule, permit, or order of the district is subject to a

4-65     civil penalty of not less than $50 and not more than $1,000 for

4-66     each violation or each day of a continuing violation.

4-67           (b)  The district may sue to enjoin a threatened or present

4-68     activity or to recover the penalty in a district court in the

4-69     county in which the violation occurred.  A penalty recovered under

 5-1     this subsection shall be paid to the district.

 5-2           SECTION 3.06.  PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.

 5-3     (a)  The district is authorized to obtain water appropriation

 5-4     permits, construction permits, and other water and wastewater

 5-5     discharge permits from the Texas Natural Resource Conservation

 5-6     Commission or from permit owners.  The district is authorized to

 5-7     acquire water or a water supply from a person, firm, corporation,

 5-8     municipal corporation, or public agency, the state, the United

 5-9     States, or any agency of the state or the United States.  The board

5-10     may contract with one or more substantial users of water to acquire

5-11     a water supply under an agreed allocation of storage space between

5-12     the district and the user or the district may contract for the

5-13     district's water supply independently.  The district is authorized

5-14     to collect, transport, process, dispose of, and control all

5-15     domestic, industrial, and communal wastes, whether in fluid, solid,

5-16     or composite state.  The district is authorized to contract with a

5-17     person, firm, corporation, municipal corporation, or public agency,

5-18     the state, the United States, or any agency of the state or the

5-19     United States for the collection, transportation, processing,

5-20     disposition, and control of all domestic, industrial, and communal

5-21     wastes.  The authority of the district under this subsection

5-22     includes the authority to enter into contracts involving

5-23     coordinated infrastructure or regional utility plans.  The district

5-24     may not unilaterally require a person, firm, corporation, municipal

5-25     corporation, public agency, or other entity to fund or construct

5-26     utility infrastructure for purposes of extending utilities to the

5-27     district.

5-28           (b)  The district may enter into a contract with the state, a

5-29     municipality, an entity created under Section 59, Article XVI,

5-30     Texas Constitution, or another entity to supply water or to provide

5-31     services relating to domestic, industrial, or commercial waste.

5-32     The district is authorized to contract with a person, a

5-33     municipality, or an entity created under Section 59, Article XVI,

5-34     Texas Constitution, to rent, lease, or operate water production,

5-35     water supply, water filtration or purification, and water supply

5-36     facilities and facilities to provide services relating to the

5-37     wastes of the person, municipality, or entity for a consideration

5-38     as agreed to by the district and the person, municipality, or

5-39     entity.  A contract under this subsection may provide that the

5-40     contract continues in effect until specified bonds or notes and

5-41     refunding bonds issued in lieu of the bonds or notes are paid.  A

5-42     municipality or entity described by this subsection is authorized

5-43     to enter into a contract with the district to fix, charge, and

5-44     collect fees, rates, charges, rentals, or other amounts for a

5-45     service or facility provided under a contract with the district and

5-46     may pledge amounts that are sufficient to make the payments

5-47     required under the contract.

5-48           (c)  For purposes of land use planning, the district shall

5-49     encourage owners and developers of land located within the district

5-50     to use and develop the land and buildings in compliance with

5-51     building, housing, and fire codes, subdivision and zoning

5-52     regulations, thoroughfare, water conservation, and land use plans,

5-53     and other land development and safety regulations of an adjacent

5-54     municipality with a population in excess of 300,000, according to

5-55     the most recent federal census.

5-56           SECTION 3.07.  FACILITIES.  (a)  In addition to the authority

5-57     provided by Sections 49.218 and 54.201, Water Code, the district

5-58     may purchase, construct, acquire, own, lease, operate, maintain,

5-59     repair, improve, and extend, at any location within or outside of

5-60     the district, land, or an interest in land, a work, an improvement,

5-61     a facility, a plant, equipment, or an appliance that is incident,

5-62     helpful, or necessary to provide for:

5-63                 (1)  the control, storage, preservation, transmission,

5-64     treatment, and distribution and use of storm water and floodwater,

5-65     the water of rivers and streams, and underground water for

5-66     municipal, domestic, industrial, and other beneficial uses; and

5-67                 (2)  the collection, transportation, processing,

5-68     disposition, and control of domestic, industrial, or commercial

5-69     wastes.

 6-1           (b)  The district may:

 6-2                 (1)  enter into a contract with a person, firm,

 6-3     corporation, municipality, entity created under Section 59, Article

 6-4     XVI, Texas Constitution, municipal corporation, public agency, or

 6-5     other political subdivision of the state; and

 6-6                 (2)  perform any other act consistent with the powers

 6-7     of the district and necessary to fulfill the purposes of this Act.

 6-8           SECTION 3.08.  ACQUISITION AND DISPOSITION OF PROPERTY.  The

 6-9     district may use a public roadway, street, alley, or easement in El

6-10     Paso County to accomplish the purposes of the district.  The

6-11     district is not required to obtain a franchise or other

6-12     governmental agreement to use a roadway, street, alley, or easement

6-13     that is owned by a municipality that is adjacent to the district

6-14     with a population in excess of 300,000, according to the most

6-15     recent federal census, if, before using the roadway, street, alley,

6-16     or easement, the district obtains written consent of the

6-17     municipality to the particular use.  The district shall pay a fee

6-18     to a municipality for the use of the roadway, street, alley, or

6-19     easement that equals the lesser of the district's pro rata share,

6-20     based on actual area encumbered, of the fair market value or the

6-21     initial purchase price for the roadway, street, alley, or easement.

6-22           SECTION 3.09.  RELOCATION OF FACILITIES.  The district may

6-23     relocate, raise, reroute, or change the grade of, or alter the

6-24     construction of, a highway, railroad, electric transmission line,

6-25     pipeline, canal, or drainage ditch, if deemed necessary by the

6-26     board.  The district shall pay for any relocation, raising,

6-27     rerouting, changing, or altering under this section, unless

6-28     otherwise agreed in writing by the interested parties.  The cost of

6-29     replacement is limited to the comparable replacement of any

6-30     replaced facility, less the replaced facility's net salvage value.

6-31                    ARTICLE 4.  GENERAL FISCAL PROVISIONS

6-32           SECTION 4.01.  DISBURSEMENT OF MONEY.  The district may

6-33     disburse money only by check, draft, order, or other instrument

6-34     signed by a person authorized in the bylaws of the district or by

6-35     board resolution.

6-36           SECTION 4.02.  FEES AND CHARGES.  The district may establish

6-37     fees and charges not to exceed the amounts necessary to enable the

6-38     district to fulfill the obligations of the district as provided by

6-39     this Act.

6-40           SECTION 4.03.  LOANS AND GRANTS.  (a)  The district may apply

6-41     for and receive a loan or grant from the state or the United

6-42     States, or any agency of the state or the United States, or from a

6-43     private entity, for purposes of exercising the powers of the

6-44     district.

6-45           (b)  The district may not enter into an agreement under this

6-46     section that violates state or federal law.

6-47           SECTION 4.04.  FISCAL YEAR.  The board shall establish a

6-48     fiscal year for the district.

6-49           SECTION 4.05.  DEPOSITORY BANKS.  (a)  The board, as provided

6-50     by this section, shall designate at least one bank to serve as a

6-51     depository for the funds of the district.  Subject to Section

6-52     49.156, Water Code, the funds of the district shall be deposited in

6-53     a depository bank designated under this subsection.

6-54           (b)  Before designating a depository bank, the board shall

6-55     publish notice at least once in a newspaper of general circulation

6-56     in the district to solicit applications from banks interested in

6-57     serving as a depository for the district.  The notice shall include

6-58     the time and place of the board meeting at which the board proposes

6-59     to designate a depository bank.  The board shall prescribe the term

6-60     of service of a depository bank designated under Subsection (a) of

6-61     this section.

6-62           (c)  The board shall review an application received under

6-63     Subsection (b) of this section, including examining the management

6-64     and condition of each bank submitting an application.  In reviewing

6-65     an application under this subsection, the board may consider:

6-66                 (1)  the terms and conditions proposed by a bank for

6-67     handling the district's money;

6-68                 (2)  the management of the bank; and

6-69                 (3)  the ability of the bank to handle the district's

 7-1     money.

 7-2           (d)  A bank is not disqualified from being a depository under

 7-3     this section because an officer or a director of the bank is a

 7-4     member of the board.

 7-5           (e)  An officer or a director of a bank is not disqualified

 7-6     from being a member of the board.

 7-7           (f)  If the board does not receive an application under this

 7-8     section, the board may designate a bank as depository on terms that

 7-9     the board finds proper.

7-10                     ARTICLE 5.  BOND AND TAX PROVISIONS

7-11           SECTION 5.01.  TAXES; REVENUE BONDS.  (a)  For purposes of

7-12     exercising the authority of the district as provided by this Act,

7-13     the district may issue bonds or other obligations that are:

7-14                 (1)  secured by ad valorem taxes;

7-15                 (2)  secured by a pledge of all or part of the revenues

7-16     accruing to the district, including revenues received from the sale

7-17     of water or other products, the rendition of service, tolls,

7-18     charges, and any other source of revenue, other than ad valorem

7-19     taxes; and

7-20                 (3)  secured by both a pledge of all or part of the

7-21     revenues described by Subdivision (2) of this subsection and ad

7-22     valorem taxes.

7-23           (b)  An obligation issued by the district shall be authorized

7-24     by resolution of the board, issued in the name of the district,

7-25     signed by the president or vice president, attested to by the

7-26     secretary, and bear the seal of the district.  The signatures of

7-27     the president or vice president and the secretary may be printed or

7-28     lithographed on the obligation.  The seal of the district may be

7-29     impressed, printed, or lithographed on the obligation.  An

7-30     obligation issued by the district:

7-31                 (1)  shall be in a form prescribed by the board;

7-32                 (2)  may be in any denomination;

7-33                 (3)  shall mature serially or otherwise not later than

7-34     50 years from the date of issuance;

7-35                 (4)  may bear any interest rate;

7-36                 (5)  may be sold at a price and under terms determined

7-37     by the board to be the most advantageous available;

7-38                 (6)  may, in the discretion of the board, be made

7-39     callable before maturity at times and prices as provided in the

7-40     obligation;

7-41                 (7)  may be made registrable as to principal or

7-42     principal and interest; and

7-43                 (8)  may be secured by an indenture of trust with a

7-44     corporate trustee.

7-45           (c)  An obligation under this section may be issued in more

7-46     than one series as required to carry out the purposes of this Act.

7-47     A pledge of revenue may reserve the right to issue additional

7-48     obligations under conditions specified on the pledge.  An

7-49     additional obligation is on a parity with or subordinate to the

7-50     original obligation.

7-51           (d)  The district is an "issuer" as defined by Section 1,

7-52     Chapter 656, Acts of the 68th Legislature, Regular Session, 1983

7-53     (Article 717q, Vernon's Texas Civil Statutes).

7-54           (e)  A board resolution authorizing an obligation or a trust

7-55     indenture under this section may include additional terms to

7-56     provide for a corporate trustee or receiver to take possession of

7-57     facilities of the district in the event of default by the district

7-58     relating to the obligation or trust indenture.  The additional

7-59     terms, if any, constitute a contract between the district and the

7-60     owner of the obligation.

7-61           (f)  The district may not issue bonds that are secured by or

7-62     otherwise encumber permanent school fund land located within the

7-63     district.

7-64           SECTION 5.02.  BOND ANTICIPATION NOTES.  The district may

7-65     issue bond anticipation notes for purposes of exercising the powers

7-66     of the district.  Bond anticipation notes may be secured by a

7-67     pledge of all or part of the revenues of the district.  The

7-68     district may authorize the issuance of bonds to pay the principal

7-69     of and interest on bond anticipation notes issued under this

 8-1     section.  Bond anticipation notes shall be secured by a pledge of

 8-2     all or part of the revenues of the district and may be issued on a

 8-3     parity with or subordinate to outstanding bonds of the issuer.  If

 8-4     the resolution or trust agreement authorizing the issuance of bond

 8-5     anticipation notes contains a covenant that the notes are payable

 8-6     from the proceeds of subsequently issued bonds, the district is not

 8-7     required to demonstrate that the revenues that may be pledged to

 8-8     the notes are sufficient to pay the principal of and interest on

 8-9     the notes for purposes of receiving approval of the attorney

8-10     general or registration by the comptroller.

8-11           SECTION 5.03.  REFUNDING BONDS.  (a)  The district may issue

8-12     refunding bonds to refund outstanding bonds and interest as

8-13     authorized by this Act.

8-14           (b)  Refunding bonds may:

8-15                 (1)  be issued to refund one or more series of

8-16     outstanding bonds;

8-17                 (2)  combine the pledges for the outstanding bonds for

8-18     the security of the refunding bonds; or

8-19                 (3)  be secured by additional revenues.

8-20           (c)  Refunding bonds may be issued without holding an

8-21     election to authorize the issuance of the bonds.  The provisions of

8-22     this Act relating to the issuance of other bonds by the district,

8-23     security for the bonds, approval by the attorney general, and

8-24     remedies of the holders of the bonds apply to refunding bonds.

8-25           (d)  Refunding bonds shall be registered by the comptroller

8-26     on surrender and cancellation of the bonds to be refunded or, if

8-27     the resolution authorizing the issuance of refunding bonds provides

8-28     that the bonds shall be sold and the proceeds deposited in the bank

8-29     where the bonds to be refunded are payable, the refunding bonds may

8-30     be issued in an amount sufficient to pay the principal and interest

8-31     of the bonds to be refunded to their option or maturity date.  The

8-32     comptroller shall register the refunding bonds without concurrent

8-33     surrender and cancellation of the bonds to be refunded.

8-34           SECTION 5.04.  APPROVAL AND REGISTRATION OF BONDS.  District

8-35     bond review and approval is governed by Subchapter F, Chapter 49,

8-36     Water Code.

8-37           SECTION 5.05.  BONDS ARE AUTHORIZED INVESTMENTS.  All bonds

8-38     and notes of the district are legal and authorized investments for

8-39     banks, savings banks, trust companies, savings and loan

8-40     associations, insurance companies, fiduciaries, trustees, and

8-41     guardians and for the sinking funds of municipalities, counties,

8-42     school districts, or other political corporations or subdivisions

8-43     of the state.  Bonds and notes of the district are eligible to

8-44     secure the deposit of any and all public funds of the state and any

8-45     and all public funds of municipalities, counties, school districts,

8-46     or other political corporations or subdivisions of the state.

8-47     Bonds and notes of the district are lawful and sufficient security

8-48     for the deposits to the extent of their value.

8-49           SECTION 5.06.  TAXATION.  (a)  Except for land owned by the

8-50     permanent school fund, the board may levy and collect ad valorem

8-51     taxes on land within the district for maintenance, improvements,

8-52     and administration relating to the district in amounts approved by

8-53     the qualified voters of the district in an election held for that

8-54     purpose.

8-55           (b)  A maintenance tax or an administration tax shall not

8-56     exceed the maximum approved rate and an approved rate shall remain

8-57     in effect unless a different rate is approved by the qualified

8-58     voters in a subsequent election.

8-59           SECTION 5.07.  PROPERTY:  RENDITION; VALUATION; LEVY.

8-60     (a)  Except as provided by this section, the rendition and

8-61     assessment of property for taxation, the equalization of values,

8-62     and the collection of taxes for the benefit of the district shall

8-63     be conducted in accordance with the law applicable to counties to

8-64     the extent possible.

8-65           (b)  The tax assessor-collector of each county shall act as

8-66     the tax assessor-collector for the district for district property

8-67     located in the county.  The tax assessor-collector in each county

8-68     shall place on the county tax rolls a column or columns as

8-69     necessary to show the taxes, including the amount of taxes, levied

 9-1     by the district, based on the value of the property as approved and

 9-2     equalized.  The fee charged by each county tax assessor-collector

 9-3     for assessing and collecting taxes is one percent of the taxes

 9-4     collected and shall be paid and disbursed by the district in the

 9-5     same manner as other fees of office.

 9-6           (c)  The mechanisms available to enforce the collection of

 9-7     state and county taxes may be used by the district to enforce the

 9-8     collection of taxes levied by the district.  The district is

 9-9     entitled to require the officers of each county to enforce and

9-10     collect the taxes due to the district in that county as provided

9-11     for the enforcement of state and county taxes.

9-12           (d)  Taxes assessed and levied for the benefit of the

9-13     district shall be payable and shall become delinquent at the same

9-14     time, in the same manner, and subject to the same discount for

9-15     advance payment as taxes levied by and for the benefit of the

9-16     county in which the property is taxable.  The fee for collecting

9-17     delinquent taxes through prosecution of suit is 15 percent of the

9-18     taxes collected by the suit, to be paid and disbursed by the

9-19     district in the same manner as other fees of office.

9-20           (e)  At the same time that the commissioners court levies

9-21     county taxes, the board shall levy a tax on all taxable property in

9-22     the district that is subject to taxation.  The board shall

9-23     immediately certify the tax rate to the tax assessor-collector of

9-24     each county that contains territory within the district.

9-25                  ARTICLE 6.  ADDITION OF LAND TO DISTRICT

9-26           SECTION 6.01.  ANNEXATION.  Notwithstanding any other law,

9-27     additional territory may be added to the district as provided by

9-28     Sections 6.02, 6.03, and 6.04 of this Act.

9-29           SECTION 6.02.  PETITION.  (a)  An owner or owners of land,

9-30     whether or not contiguous to the territory of the district, may

9-31     file with the board a petition requesting that the land described

9-32     in the petition by metes and bounds or by lot and block number, if

9-33     there is a recorded plat of the area, be included in the district.

9-34           (b)  A petition under Subsection (a) of this section shall be

9-35     signed and executed in the manner provided by law for the

9-36     conveyance of real estate.

9-37           (c)  The board shall hear and consider a petition received

9-38     under Subsection (a) of this section and may add to the district

9-39     the land described in the petition if:

9-40                 (1)  the board determines that adding the land to the

9-41     district is advantageous to the district; and

9-42                 (2)  the water system and other improvements of the

9-43     district are sufficient or will be sufficient to provide service to

9-44     the land added to the district without injuring the land in the

9-45     district before the petition is granted.

9-46           SECTION 6.03.  NOTICE AND HEARING.  (a)  A petition

9-47     requesting that the district annex a defined area shall be filed

9-48     with the secretary of the board and shall be signed by:

9-49                 (1)  a majority in value of the owners of land in the

9-50     defined area, as shown by the tax rolls of the county or counties

9-51     in which the defined area is located, if the number of landowners

9-52     in the defined area is 50 or less; or

9-53                 (2)  50 landowners if the number of landowners in the

9-54     defined area is more than 50.

9-55           (b)  The board shall issue an order setting a time and place

9-56     to hear a petition filed under Subsection (a) of this section.  The

9-57     hearing shall be held not earlier than the 15th day after the date

9-58     on which the board issues the order.

9-59           (c)  The secretary shall issue a notice providing the time

9-60     and place of the hearing set under Subsection (b) of this section

9-61     and describing the area proposed to be annexed.  Notice of the

9-62     hearing shall be given by:

9-63                 (1)  posting copies of the notice in three public

9-64     places in the district and in one public place in the area proposed

9-65     to be annexed for at least seven days before the date of the

9-66     hearing; and

9-67                 (2)  publishing a copy of the notice in a newspaper of

9-68     general circulation in the county or counties in which the area

9-69     proposed to be annexed is located at least seven days before the

 10-1    date of the hearing.

 10-2          (d)  If the board finds that the proposed annexation  is

 10-3    feasible and practicable and would benefit the district and the

 10-4    area proposed to be added to the district, the board may by order

 10-5    receive all or a part of the proposed area as an addition to and

 10-6    part of the district.  An order issued by the board under this

 10-7    subsection shall describe the area added to the district and be

 10-8    entered in the minutes.

 10-9          SECTION 6.04.  ANNEXATION ORDER.  (a)  A copy of the order

10-10    adding land to the district shall be signed by a majority of the

10-11    members of the board, attested to by the secretary of the board,

10-12    and filed and recorded in the deed records of the county or

10-13    counties in which the district is located.

10-14          (b)  On the date that the order is recorded as required by

10-15    Subsection (a) of this section, the area described in the order is

10-16    included in the territory of the district.

10-17                ARTICLE 7.  EXCLUSION OF LAND FROM DISTRICT

10-18          SECTION 7.01.  PETITION.  (a)  Notwithstanding any other law,

10-19    the board may, if there is no outstanding board order relating to

10-20    an election for the authorization of bonds payable in whole or in

10-21    part from taxes and the district does not have outstanding

10-22    indebtedness secured by taxes or net revenues of the district,

10-23    order a hearing to be held to exclude land from the district on

10-24    petition of a landowner or on motion of the board.

10-25          (b)  A petition to exclude land from the district must

10-26    specifically describe the land to be excluded by metes and bounds

10-27    or by reference to a plat recorded in the plat records of the

10-28    county or counties in which the land is located.  The petition must

10-29    be signed by at least 10 percent of the owners of land in the area

10-30    to be excluded or, if the number of owners of land is more than 50,

10-31    by at least five of the owners of land.  The petition must be filed

10-32    with the district before the seventh day preceding the date the

10-33    hearing is held to consider the petition.  The petition must

10-34    clearly state the grounds supporting the exclusion of the land from

10-35    the district.  The board may consider only the grounds stated in

10-36    the petition.

10-37          SECTION 7.02.  NOTICE AND HEARING.  (a)  The board shall hold

10-38    a hearing on petition of a landowner to exclude land from the

10-39    district.

10-40          (b)  Notice of hearing under this section shall be published

10-41    by the board once a week for two consecutive weeks in one or more

10-42    newspapers of general circulation in the district.  The first

10-43    notice shall be published not earlier than the 40th day or later

10-44    than the 14th day preceding the date of the hearing.

10-45          (c)  The board may not exclude land from the district unless

10-46    the board determines that:

10-47                (1)  the district has no obligations that will be

10-48    impaired by the exclusion of the land;

10-49                (2)  the district will incur no obligations as a result

10-50    of the exclusion; and

10-51                (3)  the exclusion is in the best interests of the

10-52    district.

10-53          (d)  The board, after considering all engineering data and

10-54    other evidence presented at the hearing and making the

10-55    determinations required by Subsection (c) of this section, shall

10-56    enter an order excluding the land from the district and redefining

10-57    the boundaries of the district as appropriate.  If land proposed to

10-58    be excluded contains water or wastewater customers of the district,

10-59    the customers remain customers of the district.  Owners of lots

10-60    within the land proposed to be excluded in which water and

10-61    wastewater facilities have been extended retain the right to

10-62    connect to the district's water and wastewater system and become

10-63    district customers.

10-64          SECTION 7.03.  EFFECTIVE DATE OF ORDER EXCLUDING LAND.

10-65    (a)  Except as provided by Subsection (c) of this section, an order

10-66    of the board excluding land from the district on petition signed by

10-67    the owner or owners of land that is proposed to be excluded takes

10-68    effect on the date on which the board enters the order.

10-69          (b)  Except as provided by Subsection (c) of this section, an

 11-1    order excluding land from the district on petition signed by less

 11-2    than all the owners of land that is proposed to be excluded takes

 11-3    effect:

 11-4                (1)  on the day immediately following the date on which

 11-5    a petition under Section 7.04 of this Act must be received by the

 11-6    board if the district does not receive a petition under that

 11-7    section; or

 11-8                (2)  on the day immediately following the date on which

 11-9    the election returns are canvassed if the exclusion is ratified at

11-10    an election under Section 7.04 of this Act.

11-11          (c)  An order excluding land from the district under this

11-12    section may not take effect unless all taxes levied and assessed by

11-13    the district within the land that is proposed to be excluded are

11-14    paid in full.

11-15          SECTION 7.04.  PETITION FOR RATIFICATION ELECTION.  (a)  If

11-16    the board issues an order excluding land on petition signed by less

11-17    than all the owners of land in the area proposed to be excluded,

11-18    the board shall publish a notice that describes the excluded land

11-19    and states that the exclusion  will become final unless the board

11-20    receives, not later than the 25th day after the date on which the

11-21    board issues the order, a petition requesting a ratification

11-22    election.  A petition under this subsection must be signed by at

11-23    least 10 percent of the qualified voters residing in the area that

11-24    is proposed to be excluded from the district.

11-25          (b)  If the board receives a petition under Subsection (a) of

11-26    this section, the order excluding land from the district is not

11-27    effective unless the exclusion is approved by a majority vote of

11-28    the residents of the district at a ratification election held for

11-29    that purpose.

11-30          (c)  A ratification election, including notice of the

11-31    election and the qualifications of the voters, shall be conducted

11-32    as provided by Subchapter J, Chapter 49, Water Code.

11-33                     ARTICLE 8.  DIVISION OF DISTRICT

11-34          SECTION  8.01.  CONDITIONS OF DIVISION.  (a)  The board may,

11-35    if the district does not have outstanding indebtedness secured by

11-36    taxes or net revenues, divide the territory of the district into

11-37    two or more districts.  The board may not divide the territory of

11-38    the district if the division results in a district with territory

11-39    of less than 100 acres.  On petition of a landowner or on motion of

11-40    the board, the board may consider a proposal to divide the original

11-41    district or any district subsequently created by division.

11-42          (b)  The board may not divide territory of the district if

11-43    the division results in numerous utility providers within the

11-44    original territory of the district.  The board may divide territory

11-45    of the district for purposes of encouraging and promoting orderly

11-46    development within the original territory of the district and

11-47    facilitating dependable and efficient utility service at affordable

11-48    rates to customers of the district.

11-49          SECTION 8.02.  PROVISIONS RELATING TO NEW DISTRICTS.

11-50    (a)  Before the board may divide territory of the district or any

11-51    district resulting from a division under this article, the board

11-52    shall:

11-53                (1)  determine the terms of the division, including a

11-54    plan to pay and perform the outstanding obligations of the

11-55    district; and

11-56                (2)  prepare a metes and bounds description of the

11-57    proposed division.

11-58          (b)  Except as provided by Section 8.03 of this Act, if the

11-59    board divides territory under this article, the board shall be

11-60    divided in an appropriate manner consistent with the division of

11-61    the district.

11-62          (c)  Districts resulting from a division under this article

11-63    shall be designated in an appropriate manner.

11-64          (d)  A district resulting from a division under this article

11-65    shall obtain authorization for the issuance of bonds payable wholly

11-66    or partially from ad valorem taxes by a majority vote of the

11-67    qualified voters of the district voting in an election called and

11-68    held for that purpose.

11-69          (e)  A district resulting from a division under this article

 12-1    shall be required to obtain authorization for a maintenance tax by

 12-2    a majority vote of the qualified voters of the district voting in

 12-3    an election called and held for that purpose.

 12-4          SECTION 8.03.  APPOINTMENT AND ELECTION OF DIRECTORS.  (a)  A

 12-5    district resulting from a division under this article is a separate

 12-6    district and shall be governed as a separate district.

 12-7          (b)  The board shall continue to act on behalf of the

 12-8    district for 90 days after the date on which a division under this

 12-9    article is approved for purposes of closing the district's affairs.

12-10          (c)  The board shall appoint two initial directors for a

12-11    district resulting from a division under this article to serve

12-12    terms expiring September 1 of the first even-numbered year after

12-13    creation of the district, and three initial directors to serve

12-14    terms expiring September 1 of the second even-numbered year after

12-15    creation of the district.  A member of the board may be appointed

12-16    as a director of a district resulting from a division under this

12-17    article.

12-18          (d)  If a vacancy occurs on the board of directors of a

12-19    district resulting from a division under this article, the board of

12-20    directors of that district shall appoint a successor to serve for

12-21    the remainder of the unexpired term.

12-22          (e)  A successor to the board of directors of a district

12-23    resulting from a division under this article shall be elected as

12-24    provided by Section 2.04 of this Act.

12-25          SECTION 8.04.  PAYMENT OF DISTRICT DEBTS.  A division of

12-26    territory of the district under this article may not impair the

12-27    current obligations or bond authorizations of the district.  The

12-28    debts of the district may be paid by taxes, revenues, or

12-29    assessments levied on land in the district or by contributions from

12-30    each district resulting from a division under this article on terms

12-31    stated in the division proposed by the board under Section 8.02 of

12-32    this Act.

12-33          SECTION 8.05.  AUTHORITY OF DISTRICTS RESULTING FROM A

12-34    DIVISION.  A district resulting from a division under this article

12-35    shall have the power to incur and pay debts created by that

12-36    district, the power and authority granted to the district created

12-37    under this Act, and the authority to enter into contracts with

12-38    other districts resulting from a division under this article for

12-39    purposes of providing water and wastewater services or other

12-40    appropriate purpose.

12-41          SECTION 8.06.  ASSUMPTION OF OBLIGATIONS.  A district

12-42    resulting from a division under this article shall assume the

12-43    obligations of the district under an agreement or resolution

12-44    consenting to the creation of the district unless the agreement or

12-45    resolution imposes obligations that limit the powers and authority

12-46    of the district to issue bonds for a purpose authorized by this

12-47    Act.  The remaining obligations of the district shall be divided on

12-48    a pro rata basis among the districts resulting from a division

12-49    under this article based on the number of acres in a district or on

12-50    terms agreed to by the districts resulting from a division under

12-51    this article.

12-52          SECTION 8.07.  NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION

12-53    COMMISSION.  The district shall provide written notice of a plan to

12-54    divide the district under this article to the Texas Natural

12-55    Resource Conservation Commission not later than the 30th day after

12-56    the date on which the board of the district decides to divide the

12-57    district.

12-58            ARTICLE 9.  ANNEXATION AND DISSOLUTION OF DISTRICT

12-59          SECTION 9.01.  ANNEXATION.  (a)  Notwithstanding any other

12-60    law, a municipality may annex the district, including districts

12-61    resulting from a division under Article 8 of this Act, only if the

12-62    municipality:

12-63                (1)  assumes the outstanding indebtedness of the

12-64    district or districts;

12-65                (2)  dissolves the district or districts not later than

12-66    six months after the date of annexation;

12-67                (3)  assumes the assets, including all accounts

12-68    receivable and the right to collect outstanding taxes, delinquent

12-69    taxes, and other indebtedness of the district or districts;

 13-1                (4)  refrains from imposing municipal taxes on property

 13-2    located within the district or districts before the dissolution of

 13-3    the district or districts;

 13-4                (5)  provides municipal utility, emergency medical,

 13-5    fire, police, garbage collection, and other standard municipal

 13-6    services to the residents of the district or districts at the same

 13-7    rate as is charged to residents within the municipality, or

 13-8    residents of similar developments; and

 13-9                (6)  complies with regional land use planning within

13-10    the district.

13-11          (b)  Notwithstanding Subsection (a)(5) of this section, a

13-12    municipality that annexes and dissolves the district or districts

13-13    may impose water supply fees, impact fees, and other assessments

13-14    allowed by state law on property previously located within the

13-15    district or districts, except for property that has received a

13-16    utility service allocation by the district or districts or property

13-17    in which site development has been authorized or commenced.

13-18          (c)  The district or districts shall transfer all assets of

13-19    the district or districts to a municipality that annexes and

13-20    dissolves the district or districts, as provided by instruments

13-21    approved by the municipality and district or districts.

13-22                      ARTICLE 10.  AFFORDABLE HOUSING

13-23          SECTION 10.01.  AFFORDABLE HOUSING.  (a)  It is in the best

13-24    interest of the state to encourage the development of affordable

13-25    housing for the citizens of the state.  To the extent that

13-26    territory of the district can be used to accomplish this purpose in

13-27    a manner that is consistent with the constitutional and statutory

13-28    provisions relating to the management of lands dedicated to the

13-29    permanent school fund, the legislature directs that 15 percent of

13-30    all residential development within the district shall be developed

13-31    to provide affordable housing.  A minimum of five percent of the

13-32    residential housing units within the district shall be used to

13-33    provide affordable housing, to be located in different residential

13-34    areas within the district.  The affordable housing shall be

13-35    dispersed evenly throughout the district to the extent possible and

13-36    may not be concentrated in areas that consist primarily of

13-37    affordable housing units.

13-38          (b)  On the sale of permanent school fund land in the

13-39    district that may be used for residential purposes, the School Land

13-40    Board shall, through the imposition of restrictive covenants or by

13-41    deed restriction, restrict property use in a manner that requires

13-42    construction of affordable housing in a percentage sufficient to

13-43    satisfy the requirements of this section.

13-44          (c)  In this section, "affordable housing" means housing for

13-45    residents having low or very low income levels, as determined

13-46    periodically by the United States Department of Housing and Urban

13-47    Development, based on the El Paso Standard Metropolitan Statistical

13-48    Area.

13-49                   ARTICLE 11.  MISCELLANEOUS PROVISIONS

13-50          SECTION 11.01.  TAX EXEMPTION.  The purposes stated in this

13-51    Act are for the benefit of the people of the state, including the

13-52    improvement of property and industry.  The district, in carrying

13-53    out the purposes of this Act, is performing an essential public

13-54    function under the constitution and is not required to pay a tax or

13-55    assessment on a project of the district or on the bonds or notes

13-56    issued by the district under this Act, including the transfer of,

13-57    the income from, and the profits made on the sale of issued bonds

13-58    and notes.

13-59          SECTION 11.02.  INITIAL ELECTION.  Notwithstanding Section

13-60    2.04 of this Act, the district shall hold its first election for

13-61    permanent directors on the first Saturday in May 2000.

13-62          SECTION 11.03.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.

13-63    (a)  The proper and legal notice of the intention to introduce this

13-64    Act, setting forth the general substance of this Act, has been

13-65    published as provided by law, and the notice and a copy of this Act

13-66    have been furnished to all persons, agencies, officials, or

13-67    entities to which they are required to be furnished by the

13-68    constitution and other laws of this state, including the governor,

13-69    who has submitted the notice and Act to the Texas Natural Resource

 14-1    Conservation Commission.

 14-2          (b)  The Texas Natural Resource Conservation Commission has

 14-3    filed its recommendations relating to this Act with the governor,

 14-4    lieutenant governor, and speaker of the house of representatives

 14-5    within the required time.

 14-6          (c)  All requirements of the constitution and laws of this

 14-7    state and the rules and procedures of the legislature with respect

 14-8    to the notice, introduction, and passage of this Act are fulfilled

 14-9    and accomplished.

14-10          SECTION 11.04.  SEVERABILITY.  If any word, phrase, clause,

14-11    sentence, paragraph, section, or other part of this Act or the

14-12    application of this Act to any person or circumstance is ever held

14-13    to be invalid or unconstitutional by a court of competent

14-14    jurisdiction in this state, the remainder of the Act and the

14-15    application of that word, phrase, clause, sentence, paragraph,

14-16    section, or other part of this Act to other persons or

14-17    circumstances are not affected by that holding.  To the extent of a

14-18    conflict between a provision of this Act and any other law or

14-19    statute, this Act controls.

14-20          SECTION 11.05.  EMERGENCY.  The importance of this

14-21    legislation and the crowded condition of the calendars in both

14-22    houses create an emergency and an imperative public necessity that

14-23    the constitutional rule requiring bills to be read on three several

14-24    days in each house be suspended, and this rule is hereby suspended,

14-25    and that this Act take effect and be in force from and after its

14-26    passage, and it is so enacted.

14-27                                 * * * * *