76R12644 JJT-F                           
         By Hartnett                                           H.B. No. 3797
         Substitute the following for H.B. No. 3797:
         By Counts                                         C.S.H.B. No. 3797
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the powers, administration, financing, and validation
 1-3     of certain actions of the Dallas County Utility and Reclamation
 1-4     District.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 5, Chapter 628, Acts of the 68th
 1-7     Legislature, Regular Session, 1983, is amended to read as follows:
 1-8           Sec. 5.   All powers of the district shall be exercised by a
 1-9     board of five directors.  Each director shall serve for his term of
1-10     office as herein provided and thereafter until his successor shall
1-11     be appointed and qualified.  If any director ceases to possess the
1-12     qualifications prescribed herein, his office shall be declared
1-13     vacant by the board of directors and his successor shall be
1-14     appointed by the City Council of the City of Irving [remaining
1-15     directors].  Each director shall be at least 18 years of age and
1-16     possess one of the following qualifications:  own land within the
1-17     district subject to taxation; [or] be a qualified voter residing
1-18     within the district at the time of  his qualification as a
1-19     director; be an agent, employee, officer, or director of any
1-20     individual, corporation, trust, or partnership that owns or leases
1-21     real property within the district; or be a resident of the City of
1-22     Irving and shall qualify by subscribing the constitutional oath of
1-23     office and by giving bond in the amount of $5,000 for the faithful
1-24     performance of his duties.  At least three of the five directors
 2-1     shall be qualified as directors under Section 49.052(a), Water
 2-2     Code, without consideration of any exceptions from that subsection
 2-3     provided by other provisions of Section 49.052, Water Code.
 2-4     Section 49.052, Water Code, applies to the extent of this section
 2-5     and for no other purpose.  All directors' bonds shall be approved
 2-6     by the district's board of directors and recorded in the official
 2-7     bond records of the County Clerk of Dallas County.  The five
 2-8     directors serving on the effective date of this Act shall continue
 2-9     as directors of the district and shall remain as directors until
2-10     their successors are duly appointed [elected] and take office on
2-11     October 1, 1999.  Beginning with the first day of October 1999, the
2-12     City Council of the City of Irving shall appoint three directors
2-13     for terms of four years and two directors for terms of two years.
2-14     On the first day of October of each odd-numbered year [Saturday in
2-15     May, 1990, and on the first Saturday in each May] thereafter, the
2-16     [all five] directors whose terms expire shall be appointed by the
2-17     City Council of the City of Irving [elected at an election] and
2-18     shall serve for a term of four years [one year] and until their
2-19     successors are appointed [elected] and take office.  All vacancies
2-20     on the board of directors shall be filled by appointment to the
2-21     unexpired term by the City Council of the City of Irving [remaining
2-22     directors.  Section 50.026, Water Code, does not apply to the
2-23     district].  The City Council of the City of Irving may remove and
2-24     replace any director it appoints at any time without cause.  The
2-25     city by its appointment and removal of directors and any other
2-26     action taken, except the action to dissolve the district under
2-27     state law or any other specific action taken by the city, which
 3-1     action must be evidenced in writing, directly relating to any bond,
 3-2     note, financial obligation, or contractual obligation of the
 3-3     district, does not assume, agree to pay, or guarantee the payment
 3-4     of any bond, note, or other financial obligation or undertaking of
 3-5     the district, whether in the form of securities or in other
 3-6     contractual forms, including the district's bonds.  The directors
 3-7     shall establish in the district's bylaws what shall constitute a
 3-8     quorum for any meeting, and a concurrence of a majority of the
 3-9     quorum shall be necessary in all district matters.  The board of
3-10     directors shall prescribe the method of execution of all contracts,
3-11     the signing of checks, and the handling of any other matters
3-12     approved by the board of directors as shown in the official minutes
3-13     of the district.  Annually in the month of October [After each
3-14     election], the board shall reorganize and elect new officers as
3-15     soon as practicable.  The board of directors may designate one or
3-16     more assistant secretaries and an assistant treasurer, who may but
3-17     need not be a member of the board of directors.  The secretary of
3-18     the board of directors or one of the assistant secretaries shall be
3-19     responsible for keeping the minutes of the meetings of the board of
3-20     directors and all official records of the board and may certify to
3-21     any action taken by the board of directors.  Each member of the
3-22     board of directors shall receive a per diem payment of $50 for each
3-23     regular or special board or committee [per] meeting and shall be
3-24     reimbursed for actual expenses approved by the board of directors.
3-25     The board of directors shall hold regular and special meetings at
3-26     such times and on such dates as the board shall determine upon
3-27     giving of notice as required by the district's bylaws.
 4-1           SECTION 2.  Section 14, Chapter 628, Acts of the 68th
 4-2     Legislature, Regular Session, 1983, is amended to read as follows:
 4-3           Sec. 14.   The district shall obtain the approval of the City
 4-4     of Irving in the form of a city council resolution as a condition
 4-5     precedent to the annexation of any additional land and the approval
 4-6     of the district's annual operation and maintenance budget.
 4-7           SECTION 3.  (a)  The organization of the Dallas County
 4-8     Utility and Reclamation District and all elections held, all
 4-9     contracts executed, and all bonds and other obligations issued by
4-10     the district, and the expenditure of funds in payment or
4-11     satisfaction thereof, all sales and donations of assets, tax rate
4-12     reduction agreements, and all governmental and proprietary actions
4-13     are hereby in all things validated, ratified, and confirmed in all
4-14     respects as if the actions had been done as authorized by law.
4-15           (b)  All bonds heretofore voted and all maintenance taxes
4-16     heretofore authorized at elections held within the district may be
4-17     issued, levied, and collected by the board of directors of the
4-18     district without the necessity of any further elections with
4-19     respect thereto.
4-20           SECTION 4.  (a)  The proper and legal notice of the intention
4-21     to introduce this Act, setting forth the general substance of this
4-22     Act, has been published as provided by law, and the notice and a
4-23     copy of this Act have been furnished to all persons, agencies,
4-24     officials, or entities to which they are required to be furnished
4-25     by the constitution and other laws of this state, including the
4-26     governor, who has submitted the notice and Act to the Texas Natural
4-27     Resource Conservation Commission.
 5-1           (b)  The Texas Natural Resource Commission has filed its
 5-2     recommendations relating to this Act with the governor, lieutenant
 5-3     governor, and speaker of the house of representatives within the
 5-4     required time.
 5-5           (c)  All requirements of the constitution and laws of this
 5-6     state and the rules and procedures of the legislature with respect
 5-7     to the notice, introduction, and passage of this Act are fulfilled
 5-8     and accomplished.
 5-9           SECTION 5.  Section 3 of this Act does not apply to an act,
5-10     proceeding, election, bond, or obligation the validity of which is
5-11     the subject of litigation that is pending on the effective date of
5-12     this Act.
5-13           SECTION 6.  The importance of this legislation and the
5-14     crowded condition of the calendars in both houses create an
5-15     emergency and an imperative public necessity that the
5-16     constitutional rule requiring bills to be read on three several
5-17     days in each house be suspended, and this rule is hereby suspended,
5-18     and that this Act take effect and be in force from and after its
5-19     passage, and it is so enacted.