AN ACT

 1-1     relating to the powers, duties, administration, financing, and

 1-2     operation of the Falcon's Lair Utility and Reclamation District;

 1-3     granting the authority to issue bonds.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 9, Chapter 935, Acts of the 69th

 1-6     Legislature, Regular Session, 1985, is amended by amending

 1-7     Subsection (f) and adding Subsection (h) to read as follows:

 1-8           (f)  After the confirmation and directors' election, a

 1-9     regular directors' election shall be held on the first Tuesday

1-10     after the first Monday [Saturday] in November of [April in] each

1-11     odd-numbered [even-numbered] year to elect the appropriate number

1-12     of directors.

1-13           (h)  The city may not be found liable for an act relating to

1-14     a district obligation or the operation of the district because of

1-15     an appointment of a director made by the city as prescribed by

1-16     Subsection (d) of this section.

1-17           SECTION 2.  Section 19, Chapter 935, Acts of the 69th

1-18     Legislature, Regular Session, 1985, is amended by adding

1-19     Subsections (d) and (e) to read as follows:

1-20           (d)  For the payment of all or part of the costs of an

1-21     improvement project or services under Section 20A of this Act, the

1-22     board may issue bonds in one or more series payable from and

1-23     secured by ad valorem taxes, assessments, impact fees, revenues,

 2-1     grants, gifts, contracts, or leases or any combination of those

 2-2     funds.  Bonds may be liens on all or part of the revenue derived

 2-3     from improvements authorized under Section 20A of this Act,

 2-4     including installment payments of special assessments or from any

 2-5     other source pledged to their payment.

 2-6           (e)  Sections 375.202 through 375.206, Local Government Code,

 2-7     apply to bonds issued under Subsection (d) of this section.

 2-8           SECTION 3.  Chapter 935, Acts of the 69th Legislature,

 2-9     Regular Session, 1985, is amended by adding Section 19A to read as

2-10     follows:

2-11           Sec. 19A.  OBLIGATIONS.  (a)  The principal amount of the

2-12     district's obligations that are payable from assessments imposed by

2-13     the district may be in an amount that does not exceed the aggregate

2-14     appraised value of the property in the district, as established by

2-15     an independent appraisal by a member of the Appraisal Institute.

2-16           (b)  The appraised value of the property in the district

2-17     established for ad valorem tax purposes may not be considered a

2-18     limitation on the principal amount of the obligations that may be

2-19     issued by the district under Subsection (a) of this section.

2-20           (c)  The city is not required to pay the principal of and

2-21     interest on an obligation issued by the district.

2-22           (d)  In this section, "obligation" means a bond, note,

2-23     lease-purchase agreement, or installment sale obligation of the

2-24     district.

2-25           SECTION 4.  Chapter 935, Acts of the 69th Legislature,

 3-1     Regular Session, 1985, is amended by adding Section 20A to read as

 3-2     follows:

 3-3           Sec. 20A.  ASSESSMENTS.  (a)  The board may undertake an

 3-4     improvement project or service that confers a special benefit on

 3-5     all or a definable part of the district.

 3-6           (b)  The board may levy and collect special assessments on

 3-7     property in the area described by Subsection (a) of this section,

 3-8     based on the benefit conferred by the improvement project or

 3-9     service, to pay all or part of the cost of the project or service.

3-10           (c)  An improvement project or service provided by the

3-11     district may include the acquisition, construction, or financing of

3-12     water, wastewater, or drainage facilities, streets, sidewalks, or

3-13     roadways.

3-14           (d)  Sections 375.113 through 375.124, Local Government Code,

3-15     apply to the financing of an improvement project or  service under

3-16     this subsection.

3-17           SECTION 5.  Subsection (b), Section 23, Chapter 935, Acts of

3-18     the 69th Legislature, Regular Session, 1985, is amended to read as

3-19     follows:

3-20           (b)  Notwithstanding Subsection (a) of this section, to the

3-21     extent that the city considers it practical to do so, the city may

3-22     provide water supply and sewer services to residential retail

3-23     customers in the district and may provide water supply and

3-24     wastewater treatment services to the district, pursuant to mutually

3-25     agreeable contracts or otherwise.  The district is responsible for

 4-1     an off-site extension that is required to provide water supply and

 4-2     sewer service[, on terms and conditions comparable to other

 4-3     similarly situated customers within the city].

 4-4           SECTION 6.  The terms of the members of the board of

 4-5     directors of the Falcon's Lair Utility and Reclamation District

 4-6     serving on the effective date of this Act who were appointed by the

 4-7     city council of the City of Mesquite, Texas, expire on the first

 4-8     Tuesday after the first Monday in November, 1997.  The terms of the

 4-9     remaining members of the board of directors of the Falcon's Lair

4-10     Utility and Reclamation District serving on the effective date of

4-11     this Act expire on the first Tuesday after the first Monday in

4-12     November, 1999.  Successor directors shall be elected or appointed

4-13     in the manner provided by Section 9, Chapter 935, Acts of the 69th

4-14     Legislature, Regular Session, 1985, as amended by this Act.

4-15           SECTION 7.  (a)  The proper and legal notice of the intention

4-16     to introduce this Act, setting forth the general substance of this

4-17     Act, has been published as provided by law, and the notice and a

4-18     copy of this Act have been furnished to all persons, agencies,

4-19     officials, or entities to which they are required to be furnished

4-20     by the constitution and other laws of this state, including the

4-21     governor, who has submitted the notice and Act to the Texas Natural

4-22     Resource Conservation Commission.

4-23           (b)  The Texas Natural Resource Conservation Commission has

4-24     filed its recommendations relating to this Act with the governor,

4-25     lieutenant governor, and speaker of the house of representatives

 5-1     within the required time.

 5-2           (c)  All requirements of the constitution and laws of this

 5-3     state and the rules and procedures of the legislature with respect

 5-4     to the notice, introduction, and passage of this Act are fulfilled

 5-5     and accomplished.

 5-6           SECTION 8.  The importance of this legislation and the

 5-7     crowded condition of the calendars in both houses create an

 5-8     emergency and an imperative public necessity that the

 5-9     constitutional rule requiring bills to be read on three several

5-10     days in each house be suspended, and this rule is hereby suspended,

5-11     and that this Act take effect and be in force from and after its

5-12     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1949 passed the Senate on

         May 16, 1997, by the following vote:  Yeas 30, Nays 0; and that the

         Senate concurred in House amendment on May 29, 1997, by the

         following vote:  Yeas 30, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1949 passed the House, with

         amendment, on May 28, 1997, by the following vote:  Yeas 136,

         Nays 0, two present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor