By Place H.B. No. 3609
75R6780 MI-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the boundaries, powers, administration, duties,
1-3 finances, contracts, and terms of directors of the Upper Leon River
1-4 Municipal Water District.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 2, Chapter 405, Acts of the 57th
1-7 Legislature, Regular Session, 1961 (Article 8280-257, Vernon's
1-8 Texas Civil Statutes), is amended to read as follows:
1-9 Sec. 2. The District shall comprise all of the territory
1-10 which was contained within the Cities of Comanche, DeLeon, Dublin,
1-11 Gorman, Hamilton, Hico and Stephenville, on April 1, 1961;
1-12 provided, however, that no defect in the definition of the
1-13 boundaries of any of said cities or in any past or future
1-14 proceedings for the annexation of territory to any of said cities
1-15 shall affect the validity of the District hereby created or any of
1-16 its powers or duties. Each of said cities is hereby designated a
1-17 "Potential City." Circumstances under which any of said cities may
1-18 be eliminated from the District are set forth in Section 17 hereof.
1-19 It is hereby found that all of the land thus included in said
1-20 District will be benefited by the water storage rights to be
1-21 acquired, and improvements to be acquired and constructed by said
1-22 District. Notwithstanding anything to the contrary in this section
1-23 or elsewhere in this Act, effective September 1, 1997, the
1-24 boundaries of the District are coterminous with the boundaries of
2-1 any Constituent Cities as those boundaries exist on September 1,
2-2 1997, and as those boundaries are amended by action of the
2-3 governing bodies of the Constituent Cities after that date.
2-4 SECTION 2. Section 3(a), Chapter 405, Acts of the 57th
2-5 Legislature, Regular Session, 1961 (Article 8280-257, Vernon's
2-6 Texas Civil Statutes), is amended to read as follows:
2-7 (a) All powers of the District shall be exercised by a Board
2-8 of Directors (hereinafter sometimes called the "Board"). Two
2-9 [Originally, two] Directors shall be appointed by a majority vote
2-10 of the governing body of each of the Potential Cities contained in
2-11 the District. Any such city may be eliminated from the District
2-12 under circumstances set forth in Section 17 hereof and from the
2-13 date of such occurrence shall lose its representation on the Board.
2-14 Directors serve staggered three-year terms. [In appointing the
2-15 first Directors for a city, the governing body of such city shall
2-16 appoint one (1) Director who shall serve to and including May 31,
2-17 1962, and one (1) who shall serve to and including May 31, 1963.
2-18 In May, 1962, and in May of each year thereafter, the governing
2-19 body of such city shall appoint one (1) Director for the two (2)
2-20 year term beginning on June 1st of that year. Each Director shall
2-21 serve for his term of office as herein provided and thereafter
2-22 until his successor shall be appointed and qualified.] No person
2-23 shall be appointed a Director unless he resides in and owns taxable
2-24 property in the city from which he is appointed. No member of a
2-25 governing body of a city, and no employee of a city shall be
2-26 appointed as Director. Such Directors shall subscribe the
2-27 constitutional oath of office, and each shall give bond for the
3-1 faithful performance of his duties in the amount of Five Thousand
3-2 Dollars ($5,000.), the cost of which shall be paid by the District.
3-3 A majority shall constitute a quorum.
3-4 SECTION 3. Section 10, Chapter 405, Acts of the 57th
3-5 Legislature, Regular Session, 1961 (Article 8280-257, Vernon's
3-6 Texas Civil Statutes), is amended to read as follows:
3-7 Sec. 10. Chapter 49, Water Code, applies to bidding for and
3-8 award of construction contracts by the District [Any construction
3-9 contract requiring an expenditure of more than Five Thousand
3-10 Dollars ($5,000.) shall be made after publication of a notice to
3-11 bidders once each week for two (2) weeks before awarding the
3-12 contract. Such notice shall be sufficient if it states the time
3-13 and place when and where the bids will be opened, the general
3-14 nature of the work to be done, or the material, equipment or
3-15 supplies to be purchased, and states where and the terms upon which
3-16 copies of the plans and specifications may be obtained. The
3-17 publication shall be in a newspaper published in the District and
3-18 designated by the Board of Directors].
3-19 SECTION 4. Section 16, Chapter 405, Acts of the 57th
3-20 Legislature, Regular Session, 1961 (Article 8280-257, Vernon's
3-21 Texas Civil Statutes), is amended to read as follows:
3-22 Sec. 16. (a) The District is authorized to enter into
3-23 contracts with Potential Cities, cities which may later be annexed,
3-24 and others for supplying water to them. The District is also
3-25 authorized to contract with any Potential City or city to be later
3-26 annexed, for the rental or leasing of, or for the operation of the
3-27 water production, water supply, water filtration or purification
4-1 and water supply facilities of such city upon such consideration as
4-2 the District and the city may agree. Any such contract may be upon
4-3 such terms and for such time as the parties may agree, and it may
4-4 provide that it shall continue in effect until any bonds specified
4-5 therein and refunding bonds issued in lieu of such bonds are paid.
4-6 (b) The governing body of each Potential City, Constituent
4-7 City, or other city annexed to or desiring to obtain water from the
4-8 District may enter into a contract with the District for the
4-9 purchase of water or other services, or for any other purposes
4-10 within the powers, rights, privileges, and functions of the
4-11 District without calling or holding an election on the contract.
4-12 The authority granted to the governing body of a Potential City,
4-13 Constituent City, or other city under this subsection prevails over
4-14 any home-rule charter or local ordinance of the city or any other
4-15 law in conflict with this subsection.
4-16 SECTION 5. Section 17, Acts of the 57th Legislature, Regular
4-17 Session, 1961 (Article 8280-257, Vernon's Texas Civil Statutes), is
4-18 amended to read as follows:
4-19 Sec. 17. (a) No [contract under which the District will
4-20 supply water to a Potential City or to any other city hereafter
4-21 annexed to the District shall be executed and no] tax shall be
4-22 levied for bonds in any [such] Potential City or any other city
4-23 annexed to the District until such action shall have been
4-24 authorized at an election held in such Potential City or in such
4-25 city. Within the discretion of the Board of Directors of the
4-26 District the first election [on the question of executing such
4-27 contract and the first election] as to voting such tax may be held
5-1 in less than all of the Potential Cities. Until an election is
5-2 held in a Potential City and until it has voted adversely, it shall
5-3 remain a Potential City. Whenever an election is held in all
5-4 Potential Cities or in some of them [either for approval of
5-5 contracts between the respective Potential Cities and the District,
5-6 or] for the voting of an ad valorem tax to pay wholly or partially
5-7 the principal of and interest on any bonds proposed by the
5-8 District, and if a majority of the votes cast in one or more of
5-9 such Potential Cities is against [either the executing of such
5-10 contract or against] tax-supported bonds, the Board of Directors
5-11 may adopt a resolution detaching the territory of any such city
5-12 from the District if the Board finds that it is to the best
5-13 interest of the District [to execute such contracts with the
5-14 Potential Cities voting favorably to issue bonds payable wholly or
5-15 partially from taxes, or to execute such contracts and without
5-16 participation by the Potential Cities thus voting unfavorably], but
5-17 no territory shall be detached from the District after the issuance
5-18 of bonds which are payable from revenues or taxes or both, or after
5-19 the execution of a contract under which the District will supply
5-20 water to a Potential City [such contracts]. Any city thus detached
5-21 from the District shall be eligible for reannexation under the
5-22 provisions of Section 5 hereof. Potential Cities which shall have
5-23 voted in favor of a contract under which the District will supply
5-24 water to the Potential City, under law requiring a vote on such a
5-25 contract, or in favor of a tax-supported bond issue, as the case
5-26 may be, shall after such vote be Constituent Cities, and as such
5-27 shall remain committed under such vote.
6-1 Provided that at any time before taxes have been levied by
6-2 the District, and at such time as a majority in number of the
6-3 Potential Cities named in Section 2 of this Act shall have held
6-4 elections on the question of approval of contracts between the
6-5 Potential Cities and the District, and such contracts have been
6-6 voted favorably in a majority of such Potential Cities, and bonds,
6-7 the interest on and principal of which are payable from revenues of
6-8 such contracts, shall have been sold and delivered to the purchaser
6-9 or purchasers thereof, thereafter (a) only Directors appointed by
6-10 the governing bodies of Constituent Cities shall have the right to
6-11 vote on matters coming before the Board of Directors, (b) only
6-12 Directors appointed by the governing bodies of Constituent Cities
6-13 shall be counted for the purpose of establishing a quorum of such
6-14 Board, and (c) upon the passage of an ordinance by the governing
6-15 body of any Potential City declaring the territory of such
6-16 Potential City detached, and the filing of a certified copy of such
6-17 ordinance with the District, the territory of such Potential City
6-18 shall be detached from the District.
6-19 (b) The Board of Directors of the District by resolution
6-20 adopted by majority vote may declare that a city is no longer a
6-21 Potential City if:
6-22 (1) the District has no bonds outstanding that are
6-23 payable from taxes; and
6-24 (2) the Potential City:
6-25 (A) has not held an election on the question of
6-26 approval of a contract between the Potential City and the District;
6-27 or
7-1 (B) has held an election on but has not approved
7-2 a contract between the Potential City and the District.
7-3 SECTION 6. Section 21, Chapter 405, Acts of the 57th
7-4 Legislature, Regular Session, 1961 (Article 8280-257, Vernon's
7-5 Texas Civil Statutes), is amended to read as follows:
7-6 Sec. 21. The District's money shall be deposited and
7-7 invested as provided by Chapter 49, Water Code [(a). The Board of
7-8 Directors shall designate one (1) or more banks within the District
7-9 to serve as depository or depositories for the funds of the
7-10 District. All funds of the District shall be deposited in such
7-11 depository bank or banks, except that funds pledged to pay
7-12 principal of and interest on bonds may be deposited with the
7-13 trustee bank named in the trust agreement, and except that funds
7-14 shall be remitted to the bank of payment for the payment of
7-15 principal of and interest on bonds. To the extent that funds in
7-16 the depository banks and the trustee bank are not insured by the
7-17 F.D.I.C. they shall be secured in the manner provided by law for
7-18 the security of county funds; or the resolution or trust agreement,
7-19 or both, securing the bonds, may require that any or all of such
7-20 funds be secured by obligations of, or unconditionally guaranteed
7-21 by, the United States Government.]
7-22 [(b) Before designating a depository bank or banks, the
7-23 Board of Directors shall issue a notice stating the time and place
7-24 when and where the Board will meet for such purpose and inviting
7-25 the banks in the District to submit applications to be designated
7-26 depositories. The term of service for depositories shall be
7-27 prescribed by the Board. Such notice shall be published one (1)
8-1 time in a newspaper or newspapers published in the District and
8-2 specified by the Board.]
8-3 [(c) At the time mentioned in the notice, the Board shall
8-4 consider the applications and the management and condition of the
8-5 banks filing them, and shall designate as depositories the bank or
8-6 banks which offer the most favorable terms and conditions for the
8-7 handling of the funds of the District and which the Board finds
8-8 have proper management and in condition to warrant handling of
8-9 District funds. Membership on the Board of Directors of an officer
8-10 or Director of a bank shall not disqualify such bank from being
8-11 designated as depository.]
8-12 [(d) If no applications are received by the time stated in
8-13 the notice, the Board shall designate some bank or banks within or
8-14 without the District upon such terms and conditions as it may find
8-15 advantageous to the District].
8-16 SECTION 7. (a) Of the five directors of the Upper Leon
8-17 River Municipal Water District serving on September 1, 1997, whose
8-18 terms would otherwise expire on May 31, 1998:
8-19 (1) the two directors who have the most seniority
8-20 shall serve an additional two years, until May 31, 2000; and
8-21 (2) the remaining three directors shall serve until
8-22 May 31, 1998.
8-23 (b) Of the five directors of the Upper Leon River Municipal
8-24 Water District serving on September 1, 1997, whose terms would
8-25 otherwise expire on May 31, 1999:
8-26 (1) the two directors who have the most seniority
8-27 shall serve an additional year, until May 31, 2000; and
9-1 (2) the remaining three directors shall serve until
9-2 May 31, 1999.
9-3 (c) A director appointed on the expiration of a term
9-4 described in Subsection (a) or (b) shall serve a three-year term.
9-5 SECTION 8. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
9-6 (a) The proper and legal notice of the intention to introduce this
9-7 Act, setting forth the general substance of this Act, has been
9-8 published as provided by law, and the notice and a copy of this Act
9-9 have been furnished to all persons, agencies, officials, or
9-10 entities to which they are required to be furnished by the
9-11 constitution and other laws of this state, including the governor,
9-12 who has submitted the notice and Act to the Texas Natural Resource
9-13 Conservation Commission.
9-14 (b) The Texas Natural Resource Conservation Commission has
9-15 filed its recommendations relating to this Act with the governor,
9-16 lieutenant governor, and speaker of the house of representatives
9-17 within the required time.
9-18 (c) All requirements of the constitution and laws of this
9-19 state and the rules and procedures of the legislature with respect
9-20 to the notice, introduction, and passage of this Act are fulfilled
9-21 and accomplished.
9-22 SECTION 9. This Act takes effect September 1, 1997.
9-23 SECTION 10. The importance of this legislation and the
9-24 crowded condition of the calendars in both houses create an
9-25 emergency and an imperative public necessity that the
9-26 constitutional rule requiring bills to be read on three several
9-27 days in each house be suspended, and this rule is hereby suspended.