By: Shapleigh S.B. No. 1820
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation, administration, powers, duties,
1-2 functions, operation, and financing of the Paseo del Este Municipal
1-3 Utility District; providing for the authorization of bonds and the
1-4 levy of taxes; providing civil penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE I. GENERAL PROVISIONS
1-7 SECTION 1.01. CREATION. (a) By virtue of Section 59,
1-8 Article XVI, Texas Constitution, a conservation and reclamation
1-9 district is hereby created to be known as Paseo del Este Municipal
1-10 Utility District (hereinafter the "district"), which shall be a
1-11 governmental agency and a body politic and corporate.
1-12 (b) The district is created under and is essential to
1-13 accomplish the purposes of Section 59, Article XVI, Texas
1-14 Constitution. The district shall have all of the powers of
1-15 municipal utility districts established under Chapter 54, Water
1-16 Code, and the district shall conduct its affairs subject to
1-17 Chapters 50 and 54, Water Code, unless otherwise provided in this
1-18 Act.
1-19 SECTION 1.02. TERRITORY. (a) The district shall comprise
1-20 all of the following territory: Section 315 1/2, C. D. Stewart
1-21 Survey, El Paso County, Texas; Section 318, C. D. Stewart Survey,
2-1 El Paso County, Texas; Section 319, C. D. Stewart Survey, El Paso
2-2 County, Texas; the south one-half of Section 18, Texas and Pacific
2-3 Railroad Company Survey, Block 79, Township 3, El Paso County,
2-4 Texas; the northeast one-fourth out of Section 18, Texas and
2-5 Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-6 County, Texas, SAVE AND EXCEPT 39.37 acres described in a deed of
2-7 record at Volume 2039, Page 1312, Real Property Records of El Paso
2-8 County, Texas; the southwest one-fourth of Section 20, Texas and
2-9 Pacific Railroad Company Survey, Block 79, Township 3, El Paso
2-10 County, Texas; Section 22, Texas and Pacific Railroad Company
2-11 Survey, Block 79, Township 3, El Paso County, Texas, SAVE AND
2-12 EXCEPT: (1) 7.889 acres described in deed from Texas Pacific Land
2-13 Trust to Socorro Independent School District, recorded in Volume
2-14 1302, Page 769, Real Property Records of El Paso County, Texas,
2-15 (2) Tracts 2 and 3, as described in deed from the State of Texas to
2-16 375/10 Texas Land L.P., recorded in Volume 2595, Page 1504, Real
2-17 Property Records of El Paso County, Texas, (3) Tracts 2 and 3, as
2-18 described in deed from the State of Texas to MBJR Trust and Barry
2-19 Lang, recorded in Volume 2595, Page 1517, Real Property Records of
2-20 El Paso County, Texas, and (4) the northwest one-fourth of Section
2-21 22, Texas and Pacific Railroad Company Survey, Block 79, Township
2-22 3, El Paso County, Texas.
2-23 (b) A mistake in the patents or field notes, or in copying
2-24 the patents or field notes in the legislative process, does not
2-25 affect the organization, existence, or validity of the district,
3-1 the rights of the district to issue bonds or refunding bonds, or to
3-2 pay the principal of or interest on the bonds, the right of the
3-3 district to levy and collect taxes, or the legality or operation of
3-4 the district or its board.
3-5 (c) Land included within the boundaries of a special utility
3-6 district created under Section 59, Article XVI, Texas Constitution,
3-7 which is subject to a district's outstanding indebtedness secured
3-8 by taxes or net revenues on the effective date of this Act shall
3-9 not be included within the district. If the property described in
3-10 Subsection (a) of this section includes any land subject to a tax
3-11 or net revenue pledged by a district, it shall be excluded, and the
3-12 remainder of this Act shall not be affected thereby.
3-13 ARTICLE II. ADMINISTRATIVE PROVISIONS
3-14 SECTION 2.01. BOARD. The district shall be governed by and
3-15 all powers of the district shall be exercised by a board of five
3-16 directors.
3-17 SECTION 2.02. DIRECTOR ELIGIBILITY. Other than initial
3-18 directors, to be eligible for appointment as a director, a person
3-19 must meet the requirements of Section 54.102, Water Code. To be
3-20 eligible for appointment as an initial director, a person must be a
3-21 member of the School Land Board or a resident of El Paso County or
3-22 Travis County. Employment with a state agency shall not disqualify
3-23 a person for appointment to the board under Section 50.026, Water
3-24 Code.
3-25 SECTION 2.03. TERMS OF DIRECTORS AND APPOINTMENT PROCEDURES.
4-1 (a) Other than initial directors, directors serve staggered terms
4-2 of four years, with terms expiring September 1 of each odd-numbered
4-3 year.
4-4 (b) Appointment of initial directors shall be made promptly
4-5 by the School Land Board after this Act takes effect. The School
4-6 Land Board shall appoint two initial directors to serve terms
4-7 expiring September 1, 1997, and three initial directors to serve
4-8 terms expiring September 1, 1999. If an initial director dies,
4-9 resigns, or is otherwise removed, the School Land Board shall
4-10 appoint a successor to serve the unexpired term. When a director's
4-11 term expires, his successor shall be elected as provided in Section
4-12 2.04 of this Act.
4-13 SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. (a) Each
4-14 director shall serve his term of office as herein provided, and
4-15 thereafter until his successor shall be appointed or elected and
4-16 qualified. Elections for the appropriate number of permanent
4-17 directors are to be held on the first Saturday in May of each
4-18 odd-numbered year. The directors serve until September 1 of the
4-19 second odd-numbered year after the date of the election.
4-20 (b) Notice of elections shall be given by the board of
4-21 directors by publishing a copy thereof once a week for two
4-22 consecutive weeks in a newspaper of general circulation in the
4-23 district, the first publication being at least 14 days prior to the
4-24 election.
4-25 (c) Owners of land within the district shall be the only
5-1 qualified voters in the confirmation election to be held under
5-2 Section 54.026, Water Code. Each qualified voter in such election
5-3 shall have one vote per 500 acres of land owned within the
5-4 district. This subsection applies in the event of division of the
5-5 district under Article 8 of this Act.
5-6 SECTION 2.05. QUALIFIED VOTERS. If any owner of over 500
5-7 acres of land within the district is a constitutional fund of the
5-8 state, the members of the state board responsible for administering
5-9 the land holdings of such fund shall each be qualified voters
5-10 within the district.
5-11 SECTION 2.06. QUALIFICATION OF DIRECTOR. Except for initial
5-12 directors, no person shall be qualified to serve as a director
5-13 unless he resides in and owns taxable property in the district.
5-14 Initial directors shall be over 18 years of age and residents of
5-15 either El Paso County or Travis County. No employee of the
5-16 district shall serve as director. Directors shall subscribe the
5-17 constitutional oath of office. Except for the initial directors,
5-18 each director shall give bond for the faithful performance of his
5-19 duties as is required by Section 54.116, Water Code, the cost of
5-20 which shall be paid by the district.
5-21 SECTION 2.07. MEETINGS AND ACTIONS OF BOARD. (a) The board
5-22 may establish regular meetings to conduct district business and may
5-23 hold special meetings at other times as the business of the
5-24 district requires. The board shall hold its meetings within the
5-25 district unless the board, by a majority vote at a public meeting,
6-1 votes to hold a meeting or meetings outside the district.
6-2 (b) A majority of the directors shall constitute a quorum of
6-3 the board. A vote of a majority of the quorum present shall be
6-4 necessary to pass on any question before the board. The board may
6-5 adopt bylaws to govern its affairs. The board may adopt a seal for
6-6 the district. The board may provide in the bylaws that, except for
6-7 the initial directors, each director shall receive a fee of $20 for
6-8 attending each meeting of the board, provided that not more than
6-9 $40 shall be paid to any director for meetings held in any one
6-10 calendar month.
6-11 SECTION 2.08. ORGANIZATION OF BOARD. The board of directors
6-12 shall elect from its members a president and a vice president of
6-13 the district and such other officers as in the judgment of the
6-14 board are necessary. The president shall be the chief executive
6-15 officer of the district and the presiding officer of the board and
6-16 shall have the same right to vote as any other director. The vice
6-17 president shall perform all duties and exercise all powers
6-18 conferred by this Act on the president when the president is absent
6-19 or fails or declines to act. The board shall also appoint a
6-20 secretary and a treasurer who may or may not be members of the
6-21 board, and it may combine such offices. The treasurer shall give
6-22 bond in the amount required by the board of directors, but in no
6-23 event less than $100,000. The condition of the bond shall be that
6-24 the treasurer will faithfully account for all money which comes
6-25 into the treasurer's custody. Until the district authorizes the
7-1 issuance of bonds, the amount of the official bond of the treasurer
7-2 may be fixed by the board of directors in an amount not less than
7-3 $5,000.
7-4 SECTION 2.09. INTEREST IN CONTRACT. A director who is
7-5 financially interested in a contract proposed to be executed by the
7-6 district for the purchase of property or services or for the
7-7 construction of facilities shall disclose the interest to the board
7-8 and may not vote on the acceptance of the contract.
7-9 SECTION 2.10. DISTRICT EMPLOYEES. The board shall have
7-10 authority to employ a general manager and all consulting engineers,
7-11 financial consultants, attorneys, and auditors. The general
7-12 manager shall be responsible for:
7-13 (1) administering the board's directives;
7-14 (2) keeping the district's records, including minutes
7-15 of board meetings;
7-16 (3) coordinating with federal, state, and local
7-17 agencies;
7-18 (4) developing plans and programs for the board's
7-19 approval;
7-20 (5) hiring, supervising, training, and discharging the
7-21 district's employees;
7-22 (6) obtaining technical, scientific, legal, fiscal,
7-23 and other professional services; and
7-24 (7) performing any other duties the board assigns.
7-25 SECTION 2.11. EMPLOYEE BONDS. (a) The general manager and
8-1 each employee of the district who is charged with the collection,
8-2 custody, or payment of any money of the district shall execute a
8-3 fidelity bond in an amount determined by the board and in a form
8-4 and with a surety approved by the board.
8-5 (b) The district shall pay the premium on each employee bond
8-6 under this section.
8-7 SECTION 2.12. PRINCIPAL OFFICE. Until such time as it
8-8 issues bonds, the district may maintain its principal office in
8-9 either El Paso County or Travis County, provided that, if the
8-10 district maintains its principal office in Travis County, it shall
8-11 maintain duplicate records in El Paso County, and the duplicate
8-12 records shall be available for inspection during regular business
8-13 hours. After it issues bonds, the district shall maintain its
8-14 office in El Paso County.
8-15 SECTION 2.13. RECORDS. (a) The district shall keep at its
8-16 principal office:
8-17 (1) complete and accurate accounts of its business
8-18 transactions in accordance with generally accepted methods of
8-19 accounting;
8-20 (2) complete and accurate minutes of its meetings; and
8-21 (3) its contracts, documents, and other records.
8-22 (b) The district shall permit reasonable public inspection
8-23 of its records during regular business hours.
8-24 SECTION 2.14. SUIT. The district may sue and be sued in its
8-25 corporate name.
9-1 ARTICLE 3. POWERS AND DUTIES
9-2 SECTION 3.01. POWERS AND DUTIES. (a) The district shall:
9-3 (1) administer and enforce the terms of this Act;
9-4 (2) use its facilities and powers to accomplish the
9-5 purposes of this Act;
9-6 (3) coordinate the provision of water, wastewater, and
9-7 drainage services; and
9-8 (4) control and abate water pollution within the
9-9 district.
9-10 (b) In designing utility infrastructure and related systems,
9-11 the district shall submit for review to any municipal corporation
9-12 with a population in excess of 300,000 according to the most recent
9-13 federal census, provided the corporate boundary of such municipal
9-14 corporation is contiguous to the district, its design plans and
9-15 specifications for the utility infrastructure and related systems.
9-16 In connection with the submission, the district shall pay to the
9-17 municipal corporation the fee for review, if any, which has been
9-18 established by municipal ordinance and has general application for
9-19 reviews of this type, and the municipal corporation shall complete
9-20 its review of the design plans and specifications within 60 days
9-21 after their delivery. In connection with the construction of its
9-22 utility infrastructure, the district shall meet or exceed the
9-23 construction standards with regard to materials and installation
9-24 specifications of any municipal corporation with a population in
9-25 excess of 300,000 according to the most recent federal census,
10-1 provided the corporate boundary of such municipal corporation is
10-2 contiguous to the district.
10-3 (c) Subject only to the authority of the Texas Natural
10-4 Resource Conservation Commission, the district has the authority to
10-5 control and abate water pollution within the district. Such
10-6 authority of the district will neither reduce nor eliminate the
10-7 authority of a municipal corporation to control and abate water
10-8 pollution within the district under applicable state or federal
10-9 law.
10-10 (d) Except as expressly limited by this Act, the district
10-11 shall have all of the powers, rights, and privileges necessary and
10-12 convenient for accomplishing the purposes of this Act conferred by
10-13 general law on any municipal utility district or water control and
10-14 improvement district created under Section 59, Article XVI, Texas
10-15 Constitution.
10-16 (e) The powers granted to the district in this Act are
10-17 cumulative of all powers granted by other law.
10-18 SECTION 3.02. DISTRICT RULES. (a) The district may adopt
10-19 and enforce rules reasonably required to implement this Act,
10-20 including rules governing procedure and practice before the board.
10-21 (b) The district shall print its rules and furnish copies of
10-22 the rules to any person on written request.
10-23 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. In addition
10-24 to the powers conferred on it under Section 54.216, Water Code, the
10-25 district may enter public or private property in the district for
11-1 the purpose of inspecting and investigating conditions relating to
11-2 its authorized purposes under the same provisions and restrictions
11-3 applicable to the Texas Natural Resource Conservation Commission.
11-4 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may:
11-5 (1) hold hearings, receive evidence from any party in
11-6 interest who appears before the board, compel the attendance of
11-7 witnesses, and make findings of fact and determinations with
11-8 respect to administering this Act or any order or rule of the
11-9 district; and
11-10 (2) delegate to one or more of its members or
11-11 employees the authority to take testimony and administer oaths in
11-12 any hearing held or authorized to be held by the district.
11-13 (b) An order of the board must be:
11-14 (1) in the district's name; and
11-15 (2) attested by proper members of the board under the
11-16 district's rules.
11-17 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who
11-18 violates a rule, permit, or order of the district is subject to a
11-19 civil penalty of not less than $50 and not more than $1,000 for
11-20 each violation or each day of a continuing violation.
11-21 (b) The district may sue to enjoin a threatened or present
11-22 activity or to recover the penalty in a district court in the
11-23 county where the violation occurred. The penalty shall be paid to
11-24 the district.
11-25 SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.
12-1 (a) The district is authorized to acquire water appropriation
12-2 permits, construction permits, and other water and wastewater
12-3 discharge permits directly from the Texas Natural Resource
12-4 Conservation Commission or from owners of permits. The district is
12-5 also authorized to acquire water or a water supply from any person,
12-6 firm, corporation, municipal corporation, public agency, the State
12-7 of Texas, or the United States government or any of its agencies.
12-8 The district may, within the discretion of its board, contract with
12-9 one or more substantial users of water to acquire such water supply
12-10 under an agreed allocation of storage space between the district
12-11 and the user or may contract independently for the district's water
12-12 supply. The district is authorized to collect, transport, process,
12-13 dispose of, and control all domestic, industrial, or communal
12-14 wastes, whether in fluid, solid, or composite state. The district
12-15 is authorized to contract with any person, firm, corporation,
12-16 municipal corporation, public agency, the State of Texas, or the
12-17 United States government or any of its agencies for the collection,
12-18 transportation, processing, disposition, and control of all
12-19 domestic, industrial, or communal wastes. Such contracting
12-20 authority includes the authority to enter into coordinated
12-21 infrastructure plans or regional utility plans.
12-22 (b) The district is authorized to enter into contracts with
12-23 the State of Texas, cities and districts organized pursuant to
12-24 Section 59, Article XVI, Texas Constitution, and others for
12-25 supplying water or providing services pertaining to domestic,
13-1 industrial, or commercial wastes. The district is also authorized
13-2 to contract with any city, district, or other person for the rental
13-3 or leasing of or for the operation of the water production, water
13-4 supply, water filtration or purification, and water supply
13-5 facilities and facilities for providing services pertaining to the
13-6 wastes of the city, the district, or other person for such
13-7 consideration as the district and the city, the district, or other
13-8 person may agree on. Any such contract may be on such terms and
13-9 for such time as the parties may agree, and it may provide that it
13-10 shall continue in effect until bonds or notes specified therein and
13-11 refunding bonds issued in lieu of such bonds or notes are paid.
13-12 All such cities and districts are authorized to enter into such
13-13 contracts with the district to fix, charge, and collect fees,
13-14 rates, charges, rentals, and other amounts for any service or
13-15 facilities provided pursuant to or in connection with any contract
13-16 with this district and to pledge such amounts sufficient to make
13-17 all payments required under the contract.
13-18 (c) With regard to land use planning, the district shall
13-19 encourage owners and developers of land within the district to use
13-20 and develop their land and buildings in a manner consistent with
13-21 building codes, housing codes, fire codes, subdivision regulations,
13-22 zoning regulations, thoroughfare plans, water conservation plans,
13-23 land use plans, and other land development and safety regulations
13-24 of each adjacent municipal corporation with a population in excess
13-25 of 300,000 according to the most recent federal census.
14-1 SECTION 3.07. FACILITIES. In addition to authority
14-2 conferred on it under Sections 54.201 and 54.211, Water Code, the
14-3 district is authorized to purchase, construct, acquire, own, lease,
14-4 operate, maintain, repair, improve, and extend, at any location
14-5 inside or outside its boundaries, in the sole discretion of the
14-6 district, land and any interest in land, any and all works,
14-7 improvements, facilities, plants, equipment, and appliances
14-8 incident, helpful, or necessary to provide for: (1) the control,
14-9 storage, preservation, transmission, treatment, and distribution
14-10 and use of storm water and floodwater, the water of rivers and
14-11 streams, and underground water, for municipal, domestic,
14-12 industrial, and other beneficial uses; and (2) the collection,
14-13 transportation, processing, disposition, and control of domestic,
14-14 industrial, or commercial wastes. The district shall have the
14-15 authority to enter into any contract with any person, firm,
14-16 corporation, city, district, municipal corporation, public agency,
14-17 or other political subdivision and to perform any other act
14-18 consistent with the powers herein granted to carry out any such
14-19 power.
14-20 SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. The
14-21 district is authorized to use any public roadway, street, alley, or
14-22 easement in El Paso County to accomplish its purposes, without the
14-23 necessity of securing a franchise or other governmental agreement,
14-24 provided that, with regard to the use of public roadways, streets,
14-25 alleys, or easements which belong to an adjacent municipal
15-1 corporation with a population in excess of 300,000 according to the
15-2 most recent federal census, the district shall obtain the written
15-3 consent of the municipal corporation prior to use thereof, and with
15-4 regard to the use of any roadway, street, alley or easement to
15-5 which such a municipal corporation has exclusive rights, district
15-6 use shall be subject to payment of a fee equal to the lesser of the
15-7 district's pro rata share, based upon actual area encumbered, of
15-8 the fair market value, or the initial purchase price for, such
15-9 roadway, street, alley, or easement.
15-10 SECTION 3.09. RELOCATION OF FACILITIES. In the event that
15-11 the district in the exercise of its powers makes necessary the
15-12 relocation, raising, rerouting, or changing the grade of or
15-13 altering the construction of any highway, railroad, electric
15-14 transmission line, pipeline, canal, or drainage ditch, all such
15-15 necessary relocation, raising, rerouting, changing of grade, or
15-16 alteration of construction shall be accomplished at the sole
15-17 expense of the district unless otherwise agreed on in writing by
15-18 interested parties; however, in the case of replacement, the cost
15-19 of such action shall be limited to the comparable replacement of
15-20 any replaced facility, less the replaced facility's net salvage
15-21 value.
15-22 ARTICLE 4. GENERAL FISCAL PROVISIONS
15-23 SECTION 4.01. DISBURSEMENT OF MONEY. The district may
15-24 disburse money only by check, draft, order, or other instrument
15-25 signed by the person or persons authorized in the board's bylaws or
16-1 by board resolution.
16-2 SECTION 4.02. FEES AND CHARGES. The district may establish
16-3 fees and charges not to exceed the amounts necessary to enable the
16-4 district to fulfill the obligations imposed on it by this Act.
16-5 SECTION 4.03. LOANS AND GRANTS. The district may apply for
16-6 and receive loans and grants from the federal or the state
16-7 government or any agencies thereof, or from a private source, for
16-8 the purpose of carrying out one or more of its powers. The
16-9 district may enter into any agreement in connection with a loan or
16-10 grant that does not conflict with federal or state law.
16-11 SECTION 4.04. FISCAL YEAR. The board shall establish the
16-12 district's fiscal year.
16-13 SECTION 4.05. DEPOSITORY BANKS. (a) The board shall
16-14 designate one or more banks to serve as depository or depositories
16-15 for the funds of the district. Subject to Section 54.307, Water
16-16 Code, all funds of the district shall be deposited in the
16-17 depository bank or banks
16-18 (b) Before designating a depository bank, the board shall
16-19 publish notice at least once in a newspaper of general circulation
16-20 in the district requesting applications from banks interested in
16-21 serving as a depository. The notice shall include the time and
16-22 location of the board meeting at which the board proposes to
16-23 designate a depository bank. The board shall prescribe the term of
16-24 service of a depository bank.
16-25 (c) At the time stated in the notice required by Subsection
17-1 (b) of this section, the board shall consider the applications
17-2 received and the management and condition of each bank that files
17-3 an application. The board may designate as a depository the bank
17-4 or banks that offer the most favorable terms and conditions for the
17-5 handling of the district's money and that have proper management
17-6 and the ability to handle the district's money properly.
17-7 Membership of an officer or director of a bank on the board of the
17-8 district does not disqualify the bank from being designated as a
17-9 depository. Service as an officer or director of a bank does not
17-10 disqualify the officer or director of the bank from membership on
17-11 the board of the district.
17-12 (d) If no application is received by the time stated in the
17-13 notice, the board may designate a bank or banks on such terms and
17-14 conditions as the board considers prudent.
17-15 ARTICLE 5. BOND AND TAX PROVISIONS
17-16 SECTION 5.01. TAX; REVENUE BONDS. (a) For the purpose of
17-17 carrying out any power or authority conferred by this Act, the
17-18 district may issue its bonds or other obligations in three general
17-19 classes:
17-20 (1) secured by ad valorem taxes;
17-21 (2) secured by a pledge of all or part of the revenues
17-22 accruing to the district, including without limitation those
17-23 received from sale of water or other products, rendition of
17-24 service, tolls, charges, and all other sources other than ad
17-25 valorem taxes; and
18-1 (3) secured by a combination pledge of all or part of
18-2 the revenues described in Subdivision (2) of this subsection and
18-3 taxes.
18-4 (b) The obligations shall be authorized by resolution of the
18-5 board and shall be issued in the name of the district, shall be
18-6 signed by the president or any vice president, shall be attested to
18-7 by the secretary, and shall bear the seal of the district. If
18-8 authorized by the board, the signatures of the president or any
18-9 vice president and of the secretary, or of both, may be printed or
18-10 lithographed on the obligations, and the seal of the district may
18-11 be impressed on the obligations or may be printed or lithographed
18-12 on the obligations. The obligations shall be in the form
18-13 prescribed by the board, shall be in any denomination or
18-14 denominations, shall mature serially or otherwise in not to exceed
18-15 50 years from their date, shall bear any interest, may be sold at a
18-16 price and under terms determined by the board to be the most
18-17 advantageous reasonably obtainable, may be made callable prior to
18-18 maturity, at the discretion of the board, at the times and prices
18-19 prescribed in the obligations, and may be made registrable as to
18-20 principal or as to both principal and interest. The obligations
18-21 may be further secured by an indenture of trust with a corporate
18-22 trustee.
18-23 (c) Obligations may be issued in more than one series and
18-24 from time to time, as required for carrying out the purposes of
18-25 this Act. Any pledge of revenue may reserve the right, under
19-1 conditions therein specified, to issue additional obligations which
19-2 will be on a parity with or subordinate to the obligations then
19-3 being issued.
19-4 (d) The district is an "issuer" for the purpose of
19-5 definitions in Section 1, Chapter 656, Acts of the 68th
19-6 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
19-7 Civil Statutes).
19-8 (e) The resolution authorizing the obligations or the trust
19-9 indenture further securing the obligations may specify additional
19-10 provisions which shall constitute a contract between the district
19-11 and the owners of the obligations. The board shall have full
19-12 discretion in providing for the additional provisions, including
19-13 the authority to provide for a corporate trustee or receiver to
19-14 take possession of facilities of the district in the event of
19-15 default on the part of the district in fulfilling the covenants
19-16 therein made.
19-17 (f) The district shall not issue bonds secured by or
19-18 otherwise encumber permanent school fund land contained within the
19-19 boundaries of the district.
19-20 SECTION 5.02. BOND ANTICIPATION NOTES. The district may
19-21 issue bond anticipation notes from time to time for the purpose of
19-22 carrying out any one or more of its powers. Such bond anticipation
19-23 notes may or may not be secured by a pledge of all or part of the
19-24 revenues of the district. The district may from time to time
19-25 authorize the issuance of bonds for the purpose of providing
20-1 proceeds to pay the principal of and interest on bond anticipation
20-2 notes. Such bonds shall be secured by a pledge of all or part of
20-3 the revenues of the district and may be issued on a parity with or
20-4 subordinate to outstanding bonds of the issuer. If the resolution
20-5 or trust agreement authorizing the issuance of bond anticipation
20-6 notes contains a covenant to the effect that such notes shall be
20-7 payable from the proceeds of the subsequently issued bonds, it
20-8 shall not be necessary to demonstrate for the purposes of receiving
20-9 the approval of the attorney general or registration by the
20-10 comptroller that the revenues that may be pledged to such notes
20-11 will be sufficient to pay the principal of and interest on the
20-12 notes.
20-13 SECTION 5.03. REFUNDING BONDS. (a) The district may issue
20-14 refunding bonds to refund outstanding bonds and interest authorized
20-15 by this Act.
20-16 (b) Refunding bonds may:
20-17 (1) be issued to refund one or more series of
20-18 outstanding bonds;
20-19 (2) combine the pledges for the outstanding bonds for
20-20 the security of the refunding bonds; or
20-21 (3) be secured by other or additional revenues.
20-22 (c) The refunding bonds may be issued without having been
20-23 authorized at an election. The provisions of this Act applicable
20-24 to the district's issuance of other bonds, their security, their
20-25 approval by the attorney general, and the remedies of the holders
21-1 are applicable to refunding bonds.
21-2 (d) Refunding bonds shall be registered by the comptroller
21-3 on surrender and cancellation of the bonds to be refunded.
21-4 Alternatively, the resolution authorizing the issuance of refunding
21-5 bonds may provide that the bonds shall be sold and the resulting
21-6 proceeds deposited in the bank where the bonds to be refunded are
21-7 payable, in which case the refunding bonds may be issued in an
21-8 amount sufficient to pay the principal and interest of the bonds to
21-9 be refunded to their option or maturity date. The comptroller
21-10 shall register the refunding bonds without concurrent surrender and
21-11 cancellation of the bonds to be refunded.
21-12 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. District
21-13 bond review and approval shall be governed by the provisions of
21-14 Subchapter F, Chapter 54, Water Code.
21-15 SECTION 5.05. TAXATION. (a) Except for land owned by the
21-16 permanent school fund, the board may levy and collect ad valorem
21-17 taxes for the maintenance of the district and its improvements or
21-18 for administrative expenses of the district, or for both purposes,
21-19 in such amounts as are voted in accordance with this Act.
21-20 (b) The maintenance tax and administration tax shall not
21-21 exceed the maximum rate voted, and the authorized rate shall remain
21-22 in effect unless changed by subsequent vote.
21-23 SECTION 5.06. BONDS ARE AUTHORIZED INVESTMENTS. All bonds
21-24 and notes of the district shall be and are hereby declared to be
21-25 legal and authorized investments for banks, savings banks, trust
22-1 companies, savings and loan associations, insurance companies,
22-2 fiduciaries, trustees, and guardians and for the sinking funds of
22-3 cities, towns, villages, counties, school districts, or other
22-4 political corporations or subdivisions of the State of Texas. Such
22-5 bonds and notes shall be eligible to secure the deposit of any and
22-6 all public funds of the State of Texas and any and all public funds
22-7 of cities, towns, villages, counties, school districts, or other
22-8 political corporations or subdivisions of the State of Texas; and
22-9 such bonds shall be lawful and sufficient security for the deposits
22-10 to the extent of their value.
22-11 SECTION 5.07. PROPERTY: RENDITION; VALUATION; LEVY.
22-12 (a) The rendition and assessment of property for taxation, the
22-13 equalization of values, and the collection of taxes for the benefit
22-14 of the district shall be in accordance with the law applicable to
22-15 counties, insofar as such law can be made applicable, and except as
22-16 hereinafter specifically provided.
22-17 (b) The tax assessor-collector of each county shall act as
22-18 the tax assessor-collector for the district for property in the
22-19 district located in such county. It shall be the duty of the tax
22-20 assessor-collector in each county to cause to be placed on the
22-21 county tax rolls the additional column or columns needed to show
22-22 the taxes levied by the district and the amount thereof, based on
22-23 the value of the property as approved and equalized. The fee of
22-24 each county tax assessor-collector for assessing and collecting
22-25 taxes shall be one percent of the taxes collected, to be paid over
23-1 and disbursed in each county as are other fees of office.
23-2 (c) All the legal means available for the enforcement of
23-3 state and county taxes shall be available to the district. The
23-4 district shall have the right to cause the officers of each county
23-5 to enforce and collect the taxes due to the district in that county
23-6 as provided in the law for the enforcement of state and county
23-7 taxes.
23-8 (d) Taxes assessed and levied for the benefit of the
23-9 district shall be payable and shall become delinquent at the same
23-10 time, in the same manner, and subject to the same discount for
23-11 advance payment as taxes levied by and for the benefit of the
23-12 county in which the property is taxable. The fee for collecting
23-13 delinquent taxes through prosecution of suit shall be 15 percent of
23-14 the taxes collected by the suit, to be paid over and disbursed in
23-15 each county as are other fees of office.
23-16 (e) Concurrently with the levy of county taxes by the
23-17 commissioners courts, the board shall levy the tax on all taxable
23-18 property in the district which is subject to such taxation and
23-19 shall immediately certify the tax rate to the tax
23-20 assessor-collector of each county which lies inside the district.
23-21 ARTICLE 6. ADDITION OF LAND TO DISTRICT
23-22 SECTION 6.01. ANNEXATION. Notwithstanding any other
23-23 provision of law, other territory may be included in the district
23-24 as provided in Sections 6.02, 6.03, and 6.04 of this Act.
23-25 SECTION 6.02. PETITION. (a) The owner or owners of land
24-1 contiguous to the district or otherwise may file with the board a
24-2 petition requesting that there be included in the district the land
24-3 described in the petition by metes and bounds or by lot and block
24-4 number if there is a recorded plat of the area to be included in
24-5 the district.
24-6 (b) The petition of the landowner or landowners to add land
24-7 to the district shall be signed and executed in the manner provided
24-8 by law for the conveyance of real estate.
24-9 (c) The board shall hear and consider the petition and may
24-10 add to the district the land described in the petition if it is
24-11 considered to be to the advantage of the district and if the water
24-12 system and other improvements of the district are sufficient or
24-13 will be sufficient to supply the added land without injuring land
24-14 already in the district.
24-15 SECTION 6.03. NOTICE AND HEARING. (a) A petition
24-16 requesting the annexation of a defined area shall be filed with the
24-17 secretary of the board and shall be signed by a majority in value
24-18 of the owners of land in the defined area, as shown by the tax
24-19 rolls of the county or counties in which such area is located, or
24-20 signed by 50 landowners, if the number of landowners in the defined
24-21 area is more than 50.
24-22 (b) It shall be the duty of the board to pass an order
24-23 fixing a time and place at which the petition for annexation shall
24-24 be heard, which shall not be less than 15 days from the day of the
24-25 order calling the hearing.
25-1 (c) The secretary shall issue a notice setting forth the
25-2 time and place of the hearing and describing the area proposed to
25-3 be annexed. Notice of the hearing shall be given by posting copies
25-4 of the notice in three public places in the district and in one
25-5 public place in the area proposed to be annexed for at least seven
25-6 days before the day of the hearing and by publishing a copy of the
25-7 notice in a newspaper of general circulation in the county or
25-8 counties in which the area proposed to be annexed is located one
25-9 time at least seven days before the day of the hearing.
25-10 (d) If on the hearing of the petition it is found by the
25-11 board that the proposed annexation of the area to the district is
25-12 feasible and practicable and would be of benefit both to the area
25-13 and to the district, the board, by order entered in its minutes
25-14 describing the area to be annexed, may receive the proposed area as
25-15 an addition to and part of the district. The order adding the
25-16 proposed territory to the district need not include all of the land
25-17 described in the petition, if on the hearing a modification or
25-18 change is found necessary or desirable by the board.
25-19 SECTION 6.04. ANNEXATION ORDER. (a) A copy of the order
25-20 adding or annexing land to the district, signed by a majority of
25-21 the members of the board and attested to by the secretary of the
25-22 board, shall be filed and recorded in the deed records of the
25-23 county or counties in which the district is located if the land is
25-24 finally annexed to the district.
25-25 (b) After the order is recorded, the area shall be a part of
26-1 the district.
26-2 ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT
26-3 SECTION 7.01. PETITION. (a) Notwithstanding any other
26-4 provision of law, the board, provided there is no outstanding board
26-5 order regarding an election for the authorization of bonds payable
26-6 in whole or in part from taxes and/or provided the district does
26-7 not have any outstanding indebtedness secured by taxes or net
26-8 revenues of the district, may call a hearing on exclusion of land
26-9 from the district by petition of a landowner or on motion of the
26-10 board of directors.
26-11 (b) A petition for exclusion of land must accurately
26-12 describe the land to be excluded by metes and bounds or by
26-13 reference to a plat recorded in the plat records of the county or
26-14 counties in which the land is located. The petition must be signed
26-15 by the owner or owners of the land to be excluded, by at least 10
26-16 percent of the owners of land to be excluded, or by five or more of
26-17 the owners of land to be excluded if the number of owners is more
26-18 than 50, must be filed with the district at least 7 days before the
26-19 hearing on the petition for exclusion, and shall clearly state the
26-20 particular grounds on which exclusion is sought. Only the ground
26-21 stated in the petition shall be considered.
26-22 SECTION 7.02. NOTICE AND HEARING. (a) A hearing shall be
26-23 held on any petition for exclusion, but shall not be required for
26-24 exclusion by motion of the board.
26-25 (b) Notice of hearing shall be published by the board once a
27-1 week for two consecutive weeks in one or more newspapers of general
27-2 circulation in the district. The first publication shall appear at
27-3 least 14 days and not more than 40 days before the date of the
27-4 hearing.
27-5 (c) Before determining to exclude any land, the board shall
27-6 find that the district has no obligations that will be impaired by
27-7 the exclusion of the land, that the district will incur no
27-8 obligations because of the exclusion, and that the exclusion is in
27-9 the best interests of the district.
27-10 (d) After considering all engineering data and other
27-11 evidence presented to it, if the board makes the findings set forth
27-12 in Subsection (c) of this section, the board shall enter an order
27-13 excluding all land meeting the conditions and shall redefine the
27-14 boundaries of the district in order to embrace all land not
27-15 excluded. If the land to be excluded contains water or wastewater
27-16 customers of the district, such customers shall remain customers of
27-17 the district, and owners of lots to which water and wastewater
27-18 facilities have already been extended shall also be allowed to
27-19 connect to the district's system and shall be customers of the
27-20 district.
27-21 SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND.
27-22 (a) Except as provided by Subsection (c) of this section, an order
27-23 excluding land pursuant to a petition signed by the owner or owners
27-24 of the land to be excluded takes effect on the date the board
27-25 enters the order.
28-1 (b) Except as provided by Subsection (c) of this section,
28-2 an order excluding land pursuant to a petition signed by less than
28-3 all of the owners to be excluded takes effect:
28-4 (1) on the day following the deadline for submission
28-5 of a petition if the district does not receive a timely petition
28-6 under Subsection (b) of Section 7.04 of this Act; or
28-7 (2) on the day following the day the election returns
28-8 are canvassed if the district receives a timely petition under
28-9 Subsection (b) of Section 7.04 of this Act and the exclusion is
28-10 ratified at an election held for that purpose.
28-11 (c) Before an order excluding land under this section
28-12 becomes effective, all taxes levied and assessed by the district on
28-13 the land to be excluded shall be fully paid.
28-14 SECTION 7.04. PETITION FOR RATIFICATION ELECTION. (a) If
28-15 the board issues an order excluding land pursuant to a petition
28-16 signed by less than all of the owners of the land to be excluded,
28-17 the board shall publish notice describing the excluded land and
28-18 stating that the exclusion becomes final if the district does not
28-19 receive, within 25 days after the date of the board's order, a
28-20 petition requesting a ratification election that is signed by at
28-21 least 10 percent of the qualified voters that reside in the area to
28-22 be excluded.
28-23 (b) If the district receives, within 25 days after the date
28-24 of the board's order, a petition requesting a ratification election
28-25 that is signed by at least 10 percent of the qualified voters that
29-1 reside in the land area to be excluded, the order does not take
29-2 effect unless approved by a majority vote of the residents of the
29-3 district at a ratification election held for that purpose.
29-4 (c) The notice of the election, the manner and time of
29-5 giving the notice, the manner of holding the election, and
29-6 qualifications of the voters shall be governed by Subchapter E,
29-7 Chapter 51, Water Code.
29-8 ARTICLE 8. DIVISION OF DISTRICT
29-9 SECTION 8.01. CONDITIONS OF DIVISION. (a) The district may
29-10 from time to time, provided it does not have any outstanding
29-11 indebtedness secured by taxes or net revenues, divide into two or
29-12 more districts; however, no division shall occur that would result
29-13 in the creation of a district of less than 100 acres in size. On
29-14 petition of any landowner or on the board's own motion, the board
29-15 of directors may consider a proposal to divide the original
29-16 district or any district subsequently created by division.
29-17 (b) With regard to the foregoing authority to divide the
29-18 district into one or more districts, it is not the intent of this
29-19 Act to encourage or promote the proliferation of numerous utility
29-20 providers within the subject territory. Rather, this Act is
29-21 intended to encourage and promote orderly development within the
29-22 subject territory and to facilitate the provision of dependable,
29-23 efficient utility services at affordable rates to customers of the
29-24 district.
29-25 SECTION 8.02. ELECTION; AUTHORITY OF NEW DISTRICTS.
30-1 (a) After the board of the original district has agreed on the
30-2 terms and conditions of division, which shall include a plan for
30-3 the payment of any outstanding current obligations and performance
30-4 of any outstanding obligations of the original district, and has
30-5 prepared a metes and bounds description of the proposed districts,
30-6 it shall order an election to be held in the district to determine
30-7 whether the original district should be divided as proposed.
30-8 (b) The board of the original district shall be divided if a
30-9 majority of the qualified voters in the original district vote in
30-10 favor of the division. The resulting districts shall be designated
30-11 by consecutive letters following the number of the original
30-12 district. For example, Paseo del Este No. 1, if divided into two
30-13 districts, shall become Paseo del Este No. 1A and Paseo del Este
30-14 No. 1B. Each resulting district, in order to issue bonds payable
30-15 wholly or partially from ad valorem taxes, shall be required to
30-16 obtain authorization for the issuance of the bonds by a majority
30-17 vote of the qualified voters of the district voting in an election
30-18 called and held for that purpose. Notice of the election shall be
30-19 given as generally set forth for bond elections in Chapter 54,
30-20 Water Code. Each resulting district desiring to levy a maintenance
30-21 tax shall be required to obtain authorization for the tax by a
30-22 majority vote of the qualified voters of the district voting in an
30-23 election called and held for that purpose. Notice of the election
30-24 shall be given as generally set forth for such elections in Chapter
30-25 54, Water Code.
31-1 SECTION 8.03. APPOINTMENT AND ELECTION OF DIRECTORS.
31-2 (a) After the district is divided into two or more districts, the
31-3 resulting districts shall be separate districts and shall be
31-4 governed as separate districts, provided that, during a period of
31-5 90 days after the date of the election to approve division, the
31-6 board of the original district shall continue to act on behalf of
31-7 the original district to wind up its affairs. The board of the
31-8 original district shall appoint two initial directors to each
31-9 resulting district to serve terms expiring September 1 of the
31-10 second year after the creation of each resulting district, and the
31-11 board of the original district shall appoint three initial
31-12 directors to each resulting district to serve terms expiring
31-13 September 1 of the fourth year after creation of each resulting
31-14 district. A board member of the original district may be appointed
31-15 as a director of one of the resulting districts. In any election
31-16 held to confirm the creation of the district and appointment of
31-17 initial directors, Section 2.04 of this Act shall apply.
31-18 (b) If an initial director dies, resigns, or is otherwise
31-19 removed, the board of the new district shall appoint a successor to
31-20 serve the unexpired term. When a director's term expires, his
31-21 successor shall be elected as provided in Section 2.04 of this Act.
31-22 SECTION 8.04. PAYMENT OF DISTRICT DEBTS. After the division
31-23 of the original district into two or more districts, the current
31-24 obligations and any bond authorizations of the original district
31-25 are protected and are not impaired. The debts may be paid by
32-1 taxes, revenues, or assessments levied on the land in the original
32-2 district as if it had not divided or with contributions from each
32-3 of the resulting districts on terms stated in the division proposed
32-4 by the board and approved by the election under Section 8.02 of
32-5 this Act.
32-6 SECTION 8.05. AUTHORITY OF RESULTING DISTRICTS. After
32-7 division, each of the resulting districts shall have the power to
32-8 incur and pay debts created by each district and shall in every
32-9 respect have the full power and authority of a district created and
32-10 governed by the provisions of this Act. Each of the resulting
32-11 districts shall have the authority to contract with one another for
32-12 the provision of water and wastewater services and for such other
32-13 matters as the board of directors of each of the districts deems
32-14 appropriate.
32-15 SECTION 8.06. ASSUMPTION OF OBLIGATIONS. After division,
32-16 each of the resulting districts shall assume the obligations of the
32-17 original district under any agreements or resolutions consenting to
32-18 the creation of the original district to the extent that such
32-19 agreements and resolutions do not impose obligations that limit the
32-20 district's powers and authority to issue bonds for any purpose
32-21 authorized by this Act. Any other obligations of the original
32-22 district shall be divided pro rata among the resulting districts
32-23 either on an acreage basis or on such other terms as are
32-24 satisfactory to the resulting districts.
32-25 SECTION 8.07. NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION
33-1 COMMISSION. Within 30 days after a division election, the original
33-2 district that confirms a plan for division shall provide written
33-3 notice of such plan to the Texas Natural Resource Conservation
33-4 Commission.
33-5 ARTICLE 9. ANNEXATION AND DISSOLUTION OF DISTRICT
33-6 SECTION 9.01. ANNEXATION. (a) Notwithstanding any other
33-7 provision of law, on the annexation of the district or districts,
33-8 in the event of division under Article 8 of this Act, the annexing
33-9 municipality shall:
33-10 (1) assume all of the outstanding indebtedness of the
33-11 district;
33-12 (2) dissolve the district within six months of
33-13 annexation and become the owner of all district assets, including,
33-14 without limitation, all accounts receivable and the right to
33-15 collect all outstanding taxes, delinquent taxes, and other
33-16 indebtedness;
33-17 (3) refrain from imposing city taxes on property
33-18 located within the district at any time prior to dissolution of the
33-19 district;
33-20 (4) provide all city utility, emergency medical, fire,
33-21 police, garbage collection, and other standard municipal services
33-22 to residents of the district at the same rate as such services are
33-23 provided to in-city residents of similar developments; and
33-24 (5) with regard to zoning and other land use
33-25 regulation, honor regional land use planning within the district.
34-1 (b) Notwithstanding subsection (a)(4) of this section, the
34-2 annexing municipality may, following annexation and dissolution of
34-3 the district, impose water supply fees, impact fees, and other
34-4 assessments allowed by state law on property previously located
34-5 within the district, provided that the annexing municipality shall
34-6 not impose any such fee and/or assessment on property which had
34-7 received a utility service allocation by the district and/or
34-8 property for which site development has been authorized and/or on
34-9 which site development has commenced.
34-10 (c) Immediately on annexation of the district, the district
34-11 shall transfer all district assets to the annexing municipal
34-12 corporation in accordance with the instruments approved by the
34-13 annexing municipal corporation and the district.
34-14 ARTICLE 10. AFFORDABLE HOUSING
34-15 SECTION 10.01. A minimum of five percent of the residential
34-16 housing units within the district shall be utilized for the
34-17 construction of affordable housing, such affordable housing to be
34-18 distributed among different residential areas within the district.
34-19 In this section, "affordable housing" means housing available to
34-20 those with low, or very low income levels, as those levels are
34-21 determined periodically by the United States Department of Housing
34-22 and Urban Development based on the El Paso Standard Metropolitan
34-23 Statistical Area.
34-24 ARTICLE 11. MISCELLANEOUS PROVISIONS
34-25 SECTION 11.01. NO TAXATION. The accomplishment of the
35-1 purposes stated in this Act being for the benefit of the people of
35-2 this state and for the improvement of their properties and
35-3 industries, the district in carrying out the purposes of this Act
35-4 will be performing an essential public function under the
35-5 constitution and shall not be required to pay any tax or assessment
35-6 on the project or any part thereof, and the bonds or notes issued
35-7 under this Act and their transfer and the income therefrom,
35-8 including the profits made on the sale thereof, shall at all times
35-9 be free from taxation within this state.
35-10 SECTION 11.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
35-11 The proper and legal notice of the intention to introduce this Act,
35-12 setting forth the general substance of this Act, has been published
35-13 as provided by law, and the notice and a copy of this Act have been
35-14 furnished to all persons, agencies, officials, or entities to which
35-15 they are required to be furnished by the constitution and other
35-16 laws of this state, including the governor. All requirements of
35-17 the constitution and laws of this state and the rules and
35-18 procedures of the legislature with respect to the notice,
35-19 introduction, and passage of this Act are fulfilled and
35-20 accomplished.
35-21 SECTION 11.03. SEVERABILITY. If any word, phrase, clause,
35-22 sentence, paragraph, section, or other part of this Act or the
35-23 application thereof to any person or circumstance shall ever be
35-24 held to be invalid or unconstitutional by a court of competent
35-25 jurisdiction in this state, the remainder of the Act and the
36-1 application of such word, phrase, clause, sentence, paragraph,
36-2 section, or other part of this Act to other persons or
36-3 circumstances shall not be affected thereby. To the extent of a
36-4 conflict between a provision of this Act and any other law or
36-5 statute, this Act shall control.
36-6 SECTION 11.04. EMERGENCY. The importance of this
36-7 legislation and the crowded condition of the calendars in both
36-8 houses create an emergency and an imperative public necessity that
36-9 the constitutional rule requiring bills to be read on three several
36-10 days in each house be suspended, and this rule is hereby suspended,
36-11 and that this Act take effect and be in force from and after its
36-12 passage, and it is so enacted.