1-1     By:  Carona                                           S.B. No. 1949

 1-2           (In the Senate - Filed May 8, 1997; May 9, 1997, read first

 1-3     time and referred to Committee on Natural Resources; May 15, 1997,

 1-4     reported favorably by the following vote:  Yeas 11, Nays 0;

 1-5     May 15, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the powers, duties, administration, financing, and

 1-9     operation of the Falcon's Lair Utility and Reclamation District;

1-10     granting the authority to issue bonds.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 9, Chapter 935, Acts of the 69th

1-13     Legislature, Regular Session, 1985, is amended by amending

1-14     Subsection (f) and adding Subsection (h) to read as follows:

1-15           (f)  After the confirmation and directors' election, a

1-16     regular directors' election shall be held on the first Tuesday

1-17     after the first Monday [Saturday] in November of [April in] each

1-18     odd-numbered [even-numbered] year to elect the appropriate number

1-19     of directors.

1-20           (h)  The city may not be found liable for an act relating to

1-21     a district obligation or the operation of the district because of

1-22     an appointment of a director made by the city as prescribed by

1-23     Subsection (d) of this section.

1-24           SECTION 2.  Section 19, Chapter 935, Acts of the 69th

1-25     Legislature, Regular Session, 1985, is amended by adding

1-26     Subsections (d) and (e) to read as follows:

1-27           (d)  For the payment of all or part of the costs of an

1-28     improvement project or services under Section 20A of this Act, the

1-29     board may issue bonds in one or more series payable from and

1-30     secured by ad valorem taxes, assessments, impact fees, revenues,

1-31     grants, gifts, contracts, or leases or any combination of those

1-32     funds.  Bonds may be liens on all or part of the revenue derived

1-33     from improvements authorized under Section 20A of this Act,

1-34     including installment payments of special assessments or from any

1-35     other source pledged to their payment.

1-36           (e)  Sections 375.202 through 375.206, Local Government Code,

1-37     apply to bonds issued under Subsection (d) of this section.

1-38           SECTION 3.  Chapter 935, Acts of the 69th Legislature,

1-39     Regular Session, 1985, is amended by adding Section 19A to read as

1-40     follows:

1-41           Sec. 19A.  OBLIGATIONS.  (a)  The principal amount of the

1-42     district's obligations that are payable from assessments imposed by

1-43     the district may be in an amount that does not exceed the aggregate

1-44     appraised value of the property in the district, as established by

1-45     an independent appraisal by a member of the Appraisal Institute.

1-46           (b)  The appraised value of the property in the district

1-47     established for ad valorem tax purposes may not be considered a

1-48     limitation on the principal amount of the obligations that may be

1-49     issued by the district under Subsection (a) of this section.

1-50           (c)  The city is not required to pay the principal of and

1-51     interest on an obligation issued by the district.

1-52           (d)  In this section, "obligation" means a bond, note,

1-53     lease-purchase agreement, or installment sale obligation of the

1-54     district.

1-55           SECTION 4.  Chapter 935, Acts of the 69th Legislature,

1-56     Regular Session, 1985, is amended by adding Section 20A to read as

1-57     follows:

1-58           Sec. 20A.  ASSESSMENTS.  (a)  The board may undertake an

1-59     improvement project or service that confers a special benefit on

1-60     all or a definable part of the district.

1-61           (b)  The board may levy and collect special assessments on

1-62     property in the area described by Subsection (a) of this section,

1-63     based on the benefit conferred by the improvement project or

1-64     service, to pay all or part of the cost of the project or service.

 2-1     If the board determines there is a benefit to the district, the

 2-2     district may provide an improvement or service to an area outside

 2-3     the boundaries of the district.

 2-4           (c)  An improvement project or service provided by the

 2-5     district may include the acquisition, construction, or financing of

 2-6     recreational facilities, water, wastewater, or drainage facilities,

 2-7     streets, sidewalks, or roadways.

 2-8           (d)  Sections 375.113 through 375.124, Local Government Code,

 2-9     apply to the financing of an improvement project or  service under

2-10     this subsection.

2-11           SECTION 5.  Subsection (b), Section 23, Chapter 935, Acts of

2-12     the 69th Legislature, Regular Session, 1985, is amended to read as

2-13     follows:

2-14           (b)  Notwithstanding Subsection (a) of this section, to the

2-15     extent that the city considers it practical to do so, the city may

2-16     provide water supply and sewer services to residential retail

2-17     customers in the district and may provide water supply and

2-18     wastewater treatment services to the district, pursuant to mutually

2-19     agreeable contracts or otherwise.  The district is responsible for

2-20     an off-site extension that is required to provide water supply and

2-21     sewer service[, on terms and conditions comparable to other

2-22     similarly situated customers within the city].

2-23           SECTION 6.  The terms of the members of the board of

2-24     directors of the Falcon's Lair Utility and Reclamation District

2-25     serving on the effective date of this Act who were appointed by the

2-26     city council of the City of Mesquite, Texas, expire on the first

2-27     Tuesday after the first Monday in November, 1997.  The terms of the

2-28     remaining members of the board of directors of the Falcon's Lair

2-29     Utility and Reclamation District serving on the effective date of

2-30     this Act expire on the first Tuesday after the first Monday in

2-31     November, 1999.  Successor directors shall be elected or appointed

2-32     in the manner provided by Section 9, Chapter 935, Acts of the 69th

2-33     Legislature, Regular Session, 1985, as amended by this Act.

2-34           SECTION 7.  (a)  The proper and legal notice of the intention

2-35     to introduce this Act, setting forth the general substance of this

2-36     Act, has been published as provided by law, and the notice and a

2-37     copy of this Act have been furnished to all persons, agencies,

2-38     officials, or entities to which they are required to be furnished

2-39     by the constitution and other laws of this state, including the

2-40     governor, who has submitted the notice and Act to the Texas Natural

2-41     Resource Conservation Commission.

2-42           (b)  The Texas Natural Resource Conservation Commission has

2-43     filed its recommendations relating to this Act with the governor,

2-44     lieutenant governor, and speaker of the house of representatives

2-45     within the required time.

2-46           (c)  All requirements of the constitution and laws of this

2-47     state and the rules and procedures of the legislature with respect

2-48     to the notice, introduction, and passage of this Act are fulfilled

2-49     and accomplished.

2-50           SECTION 8.  The importance of this legislation and the

2-51     crowded condition of the calendars in both houses create an

2-52     emergency and an imperative public necessity that the

2-53     constitutional rule requiring bills to be read on three several

2-54     days in each house be suspended, and this rule is hereby suspended,

2-55     and that this Act take effect and be in force from and after its

2-56     passage, and it is so enacted.

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