By Crownover H.B. No. 3804
76R11235 MI-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Lake Cities Municipal Utility Authority; granting
1-3 the power of eminent domain; authorizing an ad valorem tax; and
1-4 granting the authority to issue bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. VALIDATION OF CREATION; PRINCIPAL OFFICES. (a)
1-7 Under the authority of Section 59, Article XVI, Texas
1-8 Constitution, the creation of the conservation and reclamation
1-9 district known and to be known as Lake Cities Municipal Utility
1-10 Authority is validated and reconfirmed. The Lake Cities Municipal
1-11 Utility Authority is a governmental agency and a body politic and
1-12 corporate.
1-13 (b) The principal offices of the authority shall be located
1-14 in Denton County, Texas.
1-15 SECTION 2. DEFINITIONS. In this Act:
1-16 (1) "Board" means the board of directors of the Lake
1-17 Cities Municipal Utility Authority.
1-18 (2) "LCMUA" means the Lake Cities Municipal Utility
1-19 Authority.
1-20 SECTION 3. BOUNDARIES. (a) LCMUA consists of the territory
1-21 contained in the boundaries of the City of Lake Dallas and that
1-22 part of the City of Shady Shores specifically described in the
1-23 official records of LCMUA.
1-24 (b) The specific territorial boundaries of LCMUA are
2-1 definitively described in the official records of LCMUA. Changes
2-2 to that territory by addition or exclusion shall be reflected in
2-3 the official records of LCMUA. LCMUA must maintain at all times as
2-4 part of its official public records an adequate description of its
2-5 territory that constitutes its official boundaries. All LCMUA
2-6 territory as designated in the official records is subject to
2-7 assessment for the payment of ad valorem taxes.
2-8 SECTION 4. FINDING OF BENEFIT. All land and other property
2-9 included within the boundaries of LCMUA is being and will be
2-10 benefited by the works and projects that are to be accomplished by
2-11 LCMUA under powers conferred by Section 59, Article XVI, Texas
2-12 Constitution. LCMUA is created to serve a public use and benefit.
2-13 SECTION 5. GENERAL POWERS. LCMUA has all of the rights,
2-14 powers, privileges, authority, functions, and duties provided by
2-15 the general law of this state, including Chapters 49 and 51, Water
2-16 Code, applicable to water conservation and improvement districts
2-17 created under Section 59, Article XVI, Texas Constitution. LCMUA
2-18 has in addition the rights, powers, privileges, authority,
2-19 functions, and duties provided by Chapters 54 and 55, Water Code.
2-20 This Act prevails over any provision of general law that is in
2-21 conflict or inconsistent with this Act.
2-22 SECTION 6. BOARD OF DIRECTORS. (a) LCMUA is governed by
2-23 a board of five directors.
2-24 (b) Directors are elected at large by the qualified voters
2-25 residing within the boundaries of LCMUA.
2-26 (c) Directors serve four-year staggered terms.
2-27 (d) A director must:
3-1 (1) be at least 21 years old at the time of election
3-2 or appointment;
3-3 (2) have been a resident within the boundaries of
3-4 LCMUA for at least six months before election or appointment and
3-5 maintain that residence during the director's term;
3-6 (3) never have been convicted of a felony offense or
3-7 any offense of theft; and
3-8 (4) be capable of being bonded.
3-9 (e) A member of a governing body of a municipal corporation
3-10 or an employee of a municipal corporation may not serve as a
3-11 director.
3-12 (f) Each director must qualify to serve in the manner
3-13 provided by this Act, the Election Code, and Chapter 49, Water
3-14 Code.
3-15 (g) A director serves until the director's successor has
3-16 qualified.
3-17 (h) Each director shall subscribe the appropriate oath of
3-18 office and shall obtain the required minimum bond for the faithful
3-19 performance of the director's duties. The cost of the bond shall be
3-20 paid by LCMUA.
3-21 (i) A majority of the board constitutes a quorum.
3-22 (j) A vacancy on the board shall be filled for the unexpired
3-23 term by appointment by the remaining board members.
3-24 (k) A director does not receive any compensation for
3-25 services as a director.
3-26 SECTION 7. OFFICERS. (a) The board shall elect from its
3-27 number a president and vice president and any other officers the
4-1 board considers necessary or appropriate.
4-2 (b) The president is the chief executive officer of LCMUA
4-3 and the presiding officer of all board meetings and proceedings and
4-4 has the same right to vote as any other board member.
4-5 (c) The vice president performs the duties and exercises the
4-6 powers of the president when the president is absent or fails or
4-7 declines to act but may not exercise the president's right to vote.
4-8 (d) The board shall also elect a secretary and a treasurer
4-9 from its members and may combine those offices. The treasurer
4-10 shall give bond in the amount required by the board or by
4-11 applicable state law, the premium to be paid by LCMUA. The
4-12 treasurer's bond shall be conditioned on the treasurer's faithfully
4-13 accounting for all money that comes into the treasurer's custody as
4-14 treasurer for LCMUA.
4-15 SECTION 8. EMPLOYMENT AUTHORITY; GENERAL MANAGER. (a) The
4-16 board as necessary and appropriate may employ professional persons
4-17 including engineers, attorneys, accountants, consultants, and other
4-18 employees.
4-19 (b) The board shall hire a general manager to conduct the
4-20 day-to-day management of LCMUA.
4-21 (c) The board may authorize the general manager to:
4-22 (1) hire and fire employees and independent
4-23 contractors; and
4-24 (2) sign checks and contracts on behalf of LCMUA and
4-25 otherwise conduct the day-to-day management and operations of LCMUA
4-26 without specific board approval of specific transactions.
4-27 (d) The general manager may not:
5-1 (1) employ a person, firm, or entity except at the
5-2 will of the board; or
5-3 (2) sign, without prior board approval, any contract
5-4 on behalf of LCMUA that exceeds the minimum amount of total overall
5-5 value for consideration set by law.
5-6 SECTION 9. SEAL. The board may adopt a seal for LCMUA. The
5-7 seal does not have to be affixed to any act, memorandum, or
5-8 resolution of the board unless the act requires the seal to be
5-9 affixed.
5-10 SECTION 10. ANNEXATION BY PETITION OF QUALIFIED VOTERS.
5-11 (a) Additional territory may be annexed to LCMUA as provided by
5-12 this section. A petition asking for annexation and signed by a
5-13 majority of the qualified voters of the territory proposed to be
5-14 annexed may be filed with the board. The petition must:
5-15 (1) legibly state the name, address, and residence of
5-16 each person signing;
5-17 (2) be signed under oath with the following affidavit:
5-18 "Each of the undersigned swears that she or he is a bona fide
5-19 resident qualified voter of the territory proposed to be annexed
5-20 and has not been offered or paid any consideration in money or any
5-21 thing of value to sign this petition.";
5-22 (3) describe the territory proposed to be annexed by
5-23 metes and bounds or other adequate legal description signed and
5-24 sealed by a qualified registered professional surveyor or engineer;
5-25 and
5-26 (4) be accompanied by a plat that enables the board to
5-27 identify the boundaries and specific territory proposed to be
6-1 annexed.
6-2 (b) The board shall adopt a resolution stating the
6-3 conditions of annexation and setting a time and place for a hearing
6-4 on the annexation if the board finds that:
6-5 (1) the petition is signed by the required number of
6-6 qualified persons and otherwise complies with this section;
6-7 (2) the annexation would be in the best interest of
6-8 the residents of the territory proposed to be annexed and the best
6-9 interest of LCMUA; and
6-10 (3) LCMUA will be able to supply services to the
6-11 territory proposed to be annexed.
6-12 (c) The resolution must:
6-13 (1) state the conditions under which the territory
6-14 proposed to be annexed may be annexed to LCMUA; and
6-15 (2) set a time and place for a hearing by the board on
6-16 the question of whether the territory proposed to be annexed will
6-17 be benefited by the improvements, works, services, and facilities
6-18 then owned or operated or contemplated to be owned or operated by
6-19 LCMUA or by the performance of other functions of LCMUA.
6-20 (d) Notice of the adoption of the resolution stating the
6-21 time and place of the hearing shall be published once in a
6-22 newspaper of general circulation in the territory sought to be
6-23 annexed not later than the 10th day before the date of the hearing.
6-24 The notice shall describe the territory proposed to be annexed in
6-25 the same manner as required by Subsection (a)(3) for the petition.
6-26 Any interested person may appear at the hearing and offer evidence
6-27 for or against the proposed annexation. Witnesses may be sworn at
7-1 the option of the presiding officer of LCMUA. The hearing may
7-2 proceed in the order and under the rules the board prescribes. The
7-3 hearing may be recessed and reconvened from time to time at the
7-4 board's discretion.
7-5 (e) If at the conclusion of the hearing the board finds that
7-6 the territory proposed to be annexed will be benefited by the
7-7 present or contemplated improvements, services, works, or
7-8 facilities of LCMUA, the board by resolution shall make that
7-9 finding and shall call an election in the territory proposed to be
7-10 annexed. The resolution must state the date and place of the
7-11 election and the proposition to be voted on and shall appoint a
7-12 presiding judge or judges and clerks for the election who in turn
7-13 shall appoint the necessary assistant judges or clerks to assist in
7-14 holding the election. The election shall be conducted in
7-15 accordance with the Election Code.
7-16 (f) Notice of the election shall be given by publishing a
7-17 synopsis of the resolution calling for the election once in a
7-18 newspaper of general circulation within the territory sought to be
7-19 annexed not later than the 10th day before the date set for the
7-20 election. Only qualified voters who reside in the territory
7-21 proposed to be annexed may vote in the election. A voter may be
7-22 required to furnish proof of residency. Returns of the election
7-23 results shall be made to the board. The board shall canvass the
7-24 election returns and adopt an order declaring the results. If the
7-25 order shows that a majority of the votes cast favor annexation, the
7-26 board by resolution shall annex the territory into LCMUA. The
7-27 annexation may be contested only in the manner provided by the
8-1 Election Code for contesting an election.
8-2 (g) The board in calling an election on the proposition of
8-3 annexation of territory may call an election over the territory of
8-4 LCMUA to determine whether the LCMUA territory as enlarged by the
8-5 proposed annexation shall assume and be burdened by an ad valorem
8-6 tax necessary and appropriate to support outstanding general
8-7 obligation bonds, bonds voted but not yet sold, and bonds that may
8-8 be voted on in the future and whether an ad valorem tax shall be
8-9 levied upon all taxable property within the territory of LCMUA as
8-10 enlarged by the proposed annexation. The board may provide in the
8-11 election process within the territory proposed to be annexed a
8-12 proposition that the annexed territory shall be subject to a levy
8-13 and assessment for any bonded indebtedness of LCMUA supported by
8-14 the levy and collection of ad valorem taxes. The election shall be
8-15 called and held and notice given in the same manner provided by the
8-16 Election Code and Chapter 49, Water Code, for elections on the
8-17 issuance of bonds.
8-18 (h) Railroad right-of-way that is not situated within the
8-19 defined limits of an incorporated municipality will not be
8-20 benefited by LCMUA services, and therefore railroad right-of-way
8-21 may not be annexed to LCMUA unless the right-of-way is within the
8-22 limits of an incorporated municipality or other governmental body.
8-23 SECTION 11. DISANNEXATION. An election for disannexation
8-24 may be called by the board or by open petition. A disannexation
8-25 election shall be held in the same manner as provided by Sections
8-26 10(a)-(g) of this Act for an annexation election. A disannexation
8-27 may not reduce the tax base necessary to support outstanding bonds
9-1 by levy and assessment of ad valorem taxes.
9-2 SECTION 12. ANNEXATION AND DISANNEXATION BY LANDOWNER
9-3 PETITION. (a) Territory may be added to LCMUA on petition of all
9-4 owners of land in the territory proposed to be annexed. All owners
9-5 of the land proposed to be annexed may file with the board a
9-6 petition asking that the lands described be added to and become a
9-7 part of LCMUA's established territory. The petition must describe
9-8 by metes and bounds the land proposed to be annexed and be
9-9 accompanied by a plat by which LCMUA can ascertain the location,
9-10 description, and identity of the land. The petition must be signed
9-11 and executed in the same manner provided by law for conveyance of
9-12 real property.
9-13 (b) The board shall hear and consider the petition and may
9-14 grant the petition and add the land to LCMUA's existing territory
9-15 if the board considers the addition of the land advantageous and
9-16 beneficial to LCMUA and if services can be provided to the annexed
9-17 territory without injury or detriment to the operation and function
9-18 of LCMUA's existing territory. The determination regarding
9-19 probable or possible injury or detrimental operation or function
9-20 shall be determined solely by the board.
9-21 (c) A petition adding land to LCMUA's territory that is
9-22 granted becomes a part of the official records of LCMUA. The
9-23 board shall require the petitioner to provide a sworn affidavit
9-24 identifying all owners and lienholders of land proposed to be
9-25 annexed and may refuse annexation unless all owners and lienholders
9-26 join in or consent to the petition.
9-27 (d) All landowners of a single tract or parcel may petition
10-1 for voluntary disannexation in the manner provided by this section
10-2 for annexation by landowner petition. The board may refuse to
10-3 grant the disannexation if the board determines that disannexation
10-4 would be detrimental to the interests of LCMUA.
10-5 SECTION 13. POWERS. (a) LCMUA may develop surface or
10-6 underground water storage and supply facilities and construct a
10-7 diversion works, pumps, pumping stations, pipelines, intermediate
10-8 and terminal storage reservoirs, water treatment plants,
10-9 distribution systems, and all other related facilities that will
10-10 facilitate or implement the duty of LCMUA to deliver and distribute
10-11 water within its territory and any other territory for which it
10-12 holds a certificate of convenience and necessity and to purchase,
10-13 improve, modify, or extend any existing water system or systems
10-14 within the certificated territory or outside the certificated
10-15 territory if reasonably necessary or appropriate for the support of
10-16 services within the certificated territory. LCMUA may construct
10-17 all facilities reasonably necessary or convenient to enable LCMUA
10-18 to deliver, treat, and distribute water.
10-19 (b) LCMUA may construct, maintain service, and operate a
10-20 complete wastewater system, including wastewater treatment plant
10-21 sites and collection systems. LCMUA may use public streets,
10-22 alleys, ways, and places for the laying of its water and wastewater
10-23 lines and facilities.
10-24 (c) LCMUA may make contracts for the purchase of water or
10-25 water supplies, purchase treated water, purchase wastewater
10-26 treatment facilities, and make contracts for the purchase or sale
10-27 of treated or untreated water or wastewater.
11-1 (d) LCMUA may apply as necessary for any permit, license, or
11-2 other authorization from the Texas Natural Resource Conservation
11-3 Commission or any other regulatory body in order to conduct any of
11-4 its operations.
11-5 (e) LCMUA may purchase all works, machinery, plants, and
11-6 other facilities and equipment and land, rights-of-way, and
11-7 easements necessary or appropriate for exercising its rights and
11-8 performing its duties under this Act. Subject to the terms of any
11-9 deed of trust or indenture executed by LCMUA, LCMUA may sell,
11-10 trade, or otherwise dispose of any real or personal property the
11-11 board considers unnecessary for LCMUA purposes. Any personal
11-12 property the board considers unnecessary for LCMUA purposes may be
11-13 sold in the manner specified by the board and applicable law.
11-14 SECTION 14. EMINENT DOMAIN. (a) LCMUA has full power of
11-15 eminent domain and may acquire by condemnation any interest in land
11-16 or other property including fee simple title or easements or
11-17 rights-of-way in and upon or under property within and beyond the
11-18 boundaries of LCMUA territory. The exercise of the power of
11-19 eminent domain granted by this Act is governed by Chapter 21,
11-20 Property Code, and any other applicable law. The board by
11-21 resolution shall determine the amount and character of an interest
11-22 in land or other property and easements to be acquired under this
11-23 section.
11-24 (b) If LCMUA, in exercising the power of eminent domain,
11-25 power of relocation, or any other power granted under this Act,
11-26 makes necessary the relocating, raising, rerouting, or changing the
11-27 grade of, or altering the construction of any highway, roadway,
12-1 electric transmission line, telephone or telegraph properties and
12-2 facilities, or pipelines, LCMUA must bear the actual cost of the
12-3 relocation, lowering, rerouting, or changing in grade or altering
12-4 of construction in providing a comparable replacement without
12-5 enhancement of the facilities, after deducting the net salvage
12-6 value derived from the old facility.
12-7 SECTION 15. CONSTRUCTION CONTRACT. A construction contract
12-8 must be procured in accordance with Subchapter I, Chapter 49, Water
12-9 Code.
12-10 SECTION 16. AUTHORITY TO ISSUE BONDS. (a) To carry out any
12-11 power or authority conferred by this Act, the board by resolution
12-12 may authorize the issuance of negotiable bonds payable from revenue
12-13 or ad valorem taxes or both revenue and taxes. Pending the
12-14 issuance of definitive bonds the board may authorize the delivery
12-15 of negotiable interim bonds or notes, certificates of obligation,
12-16 or other similar documents that are eligible for exchange or
12-17 substitution or retirement based upon the proceeds of the
12-18 definitive bonds. LCMUA may refinance any outstanding bonds.
12-19 (b) Bonds must be issued in accordance with Subchapter F,
12-20 Chapter 49, Water Code, and other applicable law.
12-21 (c) Bonds shall be issued in the name of Lake Cities
12-22 Municipal Utility Authority, signed by the president or vice
12-23 president, and attested by the secretary and shall bear the seal,
12-24 or a facsimile seal, of LCMUA. The facsimile signature of the
12-25 president or secretary or both may be printed or lithographed on
12-26 the bonds if authorized by the board, and the seal of LCMUA may be
12-27 impressed, printed, or lithographed on the bonds.
13-1 (d) Bonds shall mature at a time set by the board not to
13-2 exceed 40 years and may be sold at a price or under the terms the
13-3 board determines to be the most advantageous reasonably available.
13-4 Interest on the bonds, including the discount, if any, shall be
13-5 based upon market value at the time of sale and shall be
13-6 established at the discretion of the board at a rate not to exceed
13-7 the maximum rate permitted by law. Bonds may be made callable
13-8 before maturity at a time and price and under the circumstances
13-9 prescribed in the resolution authorizing the bonds and may be made
13-10 registrable or electronically registrable as to principal or as to
13-11 both principal and interest.
13-12 (e) Bonds may be issued in more than one series and at
13-13 different times as required to carry out the purposes and business
13-14 of LCMUA.
13-15 (f) The bonds may be secured by a pledge of all or part of
13-16 the net revenue of LCMUA or by the net revenue of any one or more
13-17 existing or future contracts or other revenue specified by board
13-18 resolution, the trust indenture, or other instrument securing the
13-19 bonds. A pledge of revenue may reserve the right under specified
13-20 conditions to issue additional bonds on a parity with or
13-21 subordinate to the bonds then being issued. "Net revenues" as used
13-22 in this section means the gross revenue of LCMUA less the amount
13-23 necessary to pay the cost of performing the contract and of
13-24 maintaining and operating LCMUA and its properties.
13-25 (g) After the election required by Section 19 of this Act,
13-26 LCMUA may issue bonds payable from ad valorem taxes to be levied on
13-27 all taxable property in LCMUA or secured by and payable from both
14-1 taxes and revenue. If the bonds issued are payable wholly or
14-2 partially from ad valorem taxes, the board shall levy a tax
14-3 sufficient to pay the bonds and the interest on the bonds as the
14-4 bonds and interest become due. The annual tax rate may be fixed
14-5 after considering the money received from other pledged revenue
14-6 that may be available for payment of principal and interest to the
14-7 extent and in the manner permitted by the resolution authorizing
14-8 the issuance of the bonds.
14-9 (h) If the bonds are payable wholly from revenue, the board
14-10 shall fix and revise as needed the rates for water sold and
14-11 services rendered by LCMUA at a rate sufficient to pay the expense
14-12 of operating and maintaining LCMUA facilities and to pay the bonds
14-13 as they mature and the interest as it accrues and to maintain the
14-14 reserve and other funds as required in the resolution authorizing
14-15 the bonds or in the trust indenture or other instruments securing
14-16 the bonds. If the bonds are payable partially from revenue and
14-17 partially from taxes, the board shall fix and revise as necessary
14-18 the rates for water sold and services rendered by LCMUA at a rate
14-19 sufficient to assure compliance with the resolution authorizing the
14-20 bonds and with any trust indenture or other instrument securing the
14-21 bonds.
14-22 (i) From the proceeds of the sale of the bonds, LCMUA may
14-23 set aside amounts to make payments into the interest and sinking
14-24 fund and the reserve fund, and revisions may be made in the
14-25 resolution authorizing the bonds or any trust indenture or other
14-26 instruments securing the bonds. Proceeds from the sale of the
14-27 bonds may be used to pay all expenses necessarily incurred in
15-1 accomplishing the purpose for which LCMUA was created, including
15-2 expenses of issuing and selling the bonds. Proceeds from the sale
15-3 of the bonds may be invested as specified by the resolution
15-4 authorizing the bonds or the trust indenture or other instrument
15-5 securing the bonds.
15-6 (j) Funds accumulated from the payment of bonds and from
15-7 revenue may be invested as specified in the resolution authorizing
15-8 the bonds or in the indenture.
15-9 (k) If a default occurs or is threatened in the payment of
15-10 principal or of interest on bonds payable wholly or partially from
15-11 revenue, a court in Denton County, Texas, may, on petition of the
15-12 holders of outstanding bonds, appoint a receiver with authority to
15-13 collect and receive all income of LCMUA except taxes, to employ and
15-14 discharge agents and employees of LCMUA, to take charge of funds on
15-15 hand, except funds received from taxes unless commingled, and to
15-16 manage the proprietary affairs of LCMUA without the consent of or
15-17 hindrance by the board, individual board members, or other
15-18 employees of LCMUA. The receiver may also be authorized to sell or
15-19 make contracts for the sale of water or renew such contracts with
15-20 the approval of the court that appointed the receiver. The court
15-21 may vest the receiver with other powers and duties the court may
15-22 find necessary to protect the bondholders. The resolution
15-23 authorizing the issuance of the bonds or the trust indenture or
15-24 other instrument securing them may limit or qualify rights of the
15-25 holders of less than all of the outstanding bonds payable from the
15-26 same source to institute or prosecute any litigation affecting
15-27 LCMUA's property or income.
16-1 (l) Any provision in this Act to the contrary
16-2 notwithstanding, before issuing any construction bonds, LCMUA shall
16-3 submit plans, specifications, and other necessary information and
16-4 documents to the appropriate authorities and shall obtain the
16-5 necessary permits or other authorizations from the appropriate
16-6 regulatory bodies, including the Texas Natural Resource
16-7 Conservation Commission.
16-8 SECTION 17. REFUNDING BONDS. (a) LCMUA may issue refunding
16-9 bonds to refund any outstanding bonds authorized by this Act or
16-10 other authority and any interest on those bonds. Refunding bonds
16-11 may be issued to refund more than one series of outstanding bonds,
16-12 may combine the revenue pledged to the outstanding bonds for the
16-13 security of the refunding bonds, and may be secured by other or
16-14 additional revenue and mortgage liens. The requirements of this
16-15 Act with reference to the issuance by LCMUA of other bonds, their
16-16 security, and the remedies of the bondholders apply also to
16-17 refunding bonds.
16-18 (b) Refunding bonds shall be registered by the comptroller
16-19 on surrender and cancellation of the bonds to be refunded. The
16-20 resolution authorizing the bond issue may provide that the bonds
16-21 instead shall be sold and the proceeds deposited in a bank, in
16-22 which case the refunding bonds may be issued in an amount
16-23 sufficient to pay the principal of and the interest on the original
16-24 bonds to their option date or maturity date, and the comptroller
16-25 shall register the bonds without concurrent surrender and
16-26 cancellation of the original bonds.
16-27 SECTION 18. ADDITIONAL SECURITY. (a) Any bonds, including
17-1 refunding bonds, authorized by law and not payable wholly from ad
17-2 valorem taxes, may be additionally secured by a trust indenture
17-3 under which the trustee may be a bank with trust powers situated
17-4 either within or outside this state. The bonds, at the board's
17-5 discretion, may be additionally secured by a deed of trust or a
17-6 mortgage lien on physical properties of LCMUA and all franchises,
17-7 easements, water rights and appropriation permits, leases and
17-8 contracts, and all rights pertinent to those properties, vesting in
17-9 the trustee power to sell the properties to pay the debt, to
17-10 operate the properties and all other powers and authority to
17-11 further secure the bonds.
17-12 (b) The trust indenture, regardless of the existence of the
17-13 deed of trust or mortgage lien on the properties, may contain any
17-14 provisions prescribed by the board for the security of the bonds
17-15 and the preservation of the trust estate, may provide for amendment
17-16 or modification and the issuance of bonds to replace lost or
17-17 mutilated bonds, may condition the right to spend LCMUA money or
17-18 sell LCMUA property on approval of a registered professional
17-19 engineer selected as provided in the trust indenture, and may
17-20 provide for the investment of LCMUA funds.
17-21 (c) A purchaser under a sale under the deed of trust lien,
17-22 where one is given, is the absolute owner of the properties,
17-23 facilities, and rights purchased and has the right to maintain,
17-24 operate, and exercise the properties, facilities, and rights.
17-25 SECTION 19. ELECTION REQUIRED FOR TAX-SUPPORTED BONDS.
17-26 (a) Bonds payable wholly or partially from ad valorem taxes may
17-27 not be issued unless authorized by a majority of the qualified
18-1 voters residing in LCMUA's territory voting in an election called
18-2 for that purpose. Refunding bonds and bonds not payable wholly or
18-3 partially from ad valorem taxes may be issued without an election.
18-4 (b) The board may call an election under this section
18-5 without a petition. The resolution calling the election shall
18-6 specify the time and places of holding the election, the purpose
18-7 for which the bonds are to be issued, the maximum amount of the
18-8 bonds, the form of the ballot, and the presiding judge for each
18-9 voting place. Bonds for water purposes and sewer purposes may, in
18-10 the discretion of the board, be submitted in a single proposition.
18-11 The presiding judge serving at each voting place may appoint one
18-12 assistant judge and two clerks to assist in holding the election.
18-13 Notice of the election shall be given by publishing a substantial
18-14 copy of the resolution calling for the election in a newspaper with
18-15 general circulation in LCMUA on the same day of each of two
18-16 consecutive weeks. The first publication shall be not later than
18-17 the 14th day before the date set for the election.
18-18 (c) The returns of the election shall be made to and
18-19 canvassed by the board.
18-20 (d) The Election Code and other applicable law relating to
18-21 bond elections apply to an election under this section except as
18-22 otherwise provided by this section.
18-23 SECTION 20. DEPOSITORY. The board shall designate one or
18-24 more banks to serve as depository for the funds of LCMUA. All
18-25 LCMUA funds shall be deposited in the depository bank or banks
18-26 except that funds pledged to pay bonds may be deposited with the
18-27 trustee bank named in the trust agreement or other escrow and
19-1 except that funds shall be remitted to the bank or banks of payment
19-2 for the payment of principal of and interest on bonds. To the
19-3 extent that funds in the depository bank and the trustee bank are
19-4 not insured by the Federal Deposit Insurance Corporation, the funds
19-5 shall be secured in the manner provided by law for the security of
19-6 municipal funds. A bank selected by the board is not required to
19-7 go through any bid process or process regarding invitation of the
19-8 banks to become designated depositories.
19-9 SECTION 21. ABOLITION OF LCMUA. (a) LCMUA may be abolished
19-10 by a majority of the qualified voters residing within the territory
19-11 of LCMUA voting at an election held for the purpose.
19-12 (b) The county judge of Denton County, Texas, shall call an
19-13 election if a petition to abolish LCMUA is presented to the county
19-14 judge, duly signed by a majority of the qualified voters residing
19-15 within the territory of LCMUA. Notice of the election shall be
19-16 published and posted in accordance with the Election Code. The
19-17 county judge shall appoint a presiding judge and as many clerks as
19-18 necessary to assist the election judge in holding the election.
19-19 The ballots shall contain the propositions: "For abolishment of
19-20 Lake Cities Municipal Utility Authority" and "Against abolishment
19-21 of Lake Cities Municipal Utility Authority." Only qualified voters
19-22 who reside within the territory of LCMUA may vote at the election.
19-23 (c) If a majority of the votes cast at the election favor
19-24 abolishing LCMUA, LCMUA is abolished. If, at the time of
19-25 abolition, LCMUA has outstanding bonds or other indebtedness
19-26 maturing beyond the year in which abolition occurs, the
19-27 Commissioners Court of Denton County, Texas, shall levy and cause
20-1 to be collected in the same manner that county taxes are assessed
20-2 and collected sufficient taxes on all taxable property within the
20-3 former territory of LCMUA to pay the principal of and interest on
20-4 those bonds and other indebtedness when due.
20-5 SECTION 22. PUBLIC PURPOSE. The accomplishment of the
20-6 purposes stated in this Act is for the benefit of the people of
20-7 this state and for the improvement of their properties and
20-8 industries, and LCMUA, in carrying out the purposes of this Act,
20-9 will be performing an essential public function under the
20-10 constitution. LCMUA is not required to pay any tax or assessment
20-11 on any project, operations, equipment, or personal or real property
20-12 or any part thereof, and the bonds issued hereunder and their
20-13 transfer and the income therefrom, including the profits made on
20-14 the sale thereof, shall at all times be free from taxation within
20-15 this state.
20-16 SECTION 23. TAX ASSESSOR-COLLECTOR. The Denton County tax
20-17 assessor-collector may be used as a tax assessor and collector and
20-18 Denton Central Appraisal District may be designated as a board of
20-19 equalization and cause taxes to be assessed, valuations to be
20-20 equalized, and tax rolls to be prepared. Absent cooperation with
20-21 Denton County and Denton Central Appraisal District, the board,
20-22 before the sale and delivery of LCMUA bonds payable wholly or
20-23 partially from ad valorem taxes, shall appoint a tax assessor and
20-24 collector and board of equalization and cause taxes to be assessed,
20-25 evaluations to be equalized, and tax rolls to be prepared.
20-26 SECTION 24. STATUTORY INTERPRETATION. Nothing in this Act
20-27 shall be interpreted as amending or repealing the statutes
21-1 regarding the priorities of the use of water or any statute
21-2 governing water control.
21-3 SECTION 25. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
21-4 (a) The proper and legal notice of the intention to introduce this
21-5 Act, setting forth the general substance of this Act, has been
21-6 published as provided by law, and the notice and a copy of this Act
21-7 have been furnished to all persons, agencies, officials, or
21-8 entities to which they are required to be furnished by the
21-9 constitution and other laws of this state, including the governor,
21-10 who has submitted the notice and Act to the Texas Natural Resource
21-11 Conservation Commission.
21-12 (b) The Texas Natural Resource Conservation Commission has
21-13 filed its recommendations relating to this Act with the governor,
21-14 lieutenant governor, and speaker of the house of representatives
21-15 within the required time.
21-16 (c) All requirements of the constitution and laws of this
21-17 state and the rules and procedures of the legislature with respect
21-18 to the notice, introduction, and passage of this Act are fulfilled
21-19 and accomplished.
21-20 SECTION 26. TRANSITION: ELECTION OF DIRECTORS. (a) A
21-21 director who is serving on the effective date of this Act serves
21-22 until the director's successor is elected at the directors election
21-23 in 2000.
21-24 (b) The three directors who receive the largest number of
21-25 votes at the election in 2000 serve four-year terms beginning in
21-26 2000. The remaining two directors serve two-year terms beginning
21-27 in 2000.
22-1 (c) If there is a tie vote between candidates for positions
22-2 three, four, or five, the tie shall be settled between the tying
22-3 directors by agreement of those directors. In the absence of an
22-4 agreement, the tying directors shall settle the tie by drawing a
22-5 high card from a new sealed packaged deck of 52 playing cards. The
22-6 general manager of LCMUA shall shuffle the deck three times, name
22-7 the candidate for whom the drawing is made, and draw from the deck
22-8 with high card prevailing without reference to suit and with the
22-9 ace being high card. If drawing results in a tie, the manager
22-10 shall continue to draw after a reshuffle until there is no tie.
22-11 The high card wins the four-year term.
22-12 (d) In 2002, two directors shall be elected to serve
22-13 four-year terms.
22-14 (e) In 2004, three directors shall be elected to serve
22-15 four-year terms.
22-16 (f) The appropriate number of directors shall be elected for
22-17 four-year terms in each subsequent even-numbered year in accordance
22-18 with the Election Code and Chapter 49, Water Code.
22-19 SECTION 27. EMERGENCY. The importance of this legislation
22-20 and the crowded condition of the calendars in both houses create an
22-21 emergency and an imperative public necessity that the
22-22 constitutional rule requiring bills to be read on three several
22-23 days in each house be suspended, and this rule is hereby suspended,
22-24 and that this Act take effect and be in force from and after its
22-25 passage, and it is so enacted.