By Crownover H.B. No. 3804 76R8912 T A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the Lake Cities Municipal Utility Authority. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Under the authority of Article XVI, Section 59 of 1-5 the Texas Constitution, there is hereby ratified and confirmed the 1-6 valid and effective creation and existence of a conservation and 1-7 reclamation district known and to be known as Lake Cities Municipal 1-8 Utility Authority (herein LCMUA), which is a governmental agency, 1-9 an agency of the State of Texas, a municipal corporation, and a 1-10 body politic and corporate. The prior creation and naming of LCMUA 1-11 is hereby validated, ratified and confirmed. The principal offices 1-12 of LCMUA are and shall be located in Denton County, Texas. 1-13 SECTION 2. The specific territorial boundary of LCMUA is and 1-14 shall be definitively described in the official records of LCMUA. 1-15 Such territory may be changed by addition or deletion as reflected 1-16 from time to time in the official records of LCMUA. LCMUA must 1-17 maintain at all times as part of its official public records an 1-18 adequate description of its area and territory which shall 1-19 constitute its official boundaries. All LCMUA area and territory 1-20 as designated is subject to levy and assessment for the payment of 1-21 ad valorem taxes. It is further determined that all of the 1-22 official territory of LCMUA is being and will be benefited by the 1-23 works and improvements of LCMUA. 1-24 SECTION 3. All management of LCMUA shall be vested in and 2-1 exercised by a five person Board of Directors (hereinafter 2-2 "Board"). Each member of the Board shall be elected at large by 2-3 the qualified voters residing within the official territory of 2-4 LCMUA. Each member must be over the age of 21 years at the time of 2-5 the election or appointment, be a bona fide resident within the 2-6 official territory of LCMUA for at least six months prior to 2-7 election or appointment, maintain such residence during the time 2-8 period such person is serving on the Board, and never have been 2-9 convicted of a felony offense or any offense of theft, and must be 2-10 capable of being bonded. (a) All five current members of the 2-11 Board shall serve until their successors are elected in the year 2-12 2000 at which time all five Board positions shall be open for 2-13 election. Two of the five Board members shall be elected in the 2-14 year 2000 for a two year term and the remaining three members of 2-15 the Board shall be elected in the year 2000 for a four year term. 2-16 The three Board members who received the largest number of votes 2-17 shall be the Board members who are elected for the three four-year 2-18 terms beginning in the year 2000. The two Board members who 2-19 receive the fewest amount of votes shall be the Board members 2-20 elected to the two-year terms beginning in the year 2000. In the 2-21 event of a tie vote between the candidates for positions three, 2-22 four and five, the election tie shall be settled between the tying 2-23 Board members by agreement of the Board members so elected or in 2-24 the absence of such agreement, the Board member candidates shall 2-25 settle the tie by drawing a high card from a new sealed packaged 2-26 deck of fifty-two playing cards. The general manager of LCMUA 2-27 shall shuffle the deck three times, name the candidate for whom the 3-1 drawing is made and draw from the deck with high card prevailing 3-2 without reference to suit, with the Ace being high card. Should 3-3 the drawing also result in a tie, the manager shall continue to 3-4 draw after a re-shuffle until there is no tie. The high card(s) 3-5 wins the four-year term(s). 3-6 (b) An election for the two Board positions elected to serve 3-7 for two year terms in the year 2000 shall be held in the year 2002. 3-8 The two Board positions elected in 2002 shall thereafter serve four 3-9 year terms. The three Board positions elected to serve a four year 3-10 term in the year 2000 shall be filled by election in the year 2004. 3-11 Thereafter, in accordance with the TEX. ELEC. CODE ANN. and TEX. 3-12 WATER CODE ANN., elections for Board members shall be conducted in 3-13 staggered elections every two years with three Board positions 3-14 being elected beginning in the year 2000 and successively every 3-15 four years thereafter and two Board positions being elected for 3-16 four year terms beginning in the year 2002, and every four years 3-17 thereafter. 3-18 (c) Each Board member shall serve for his/her term of office 3-19 as herein provided and thereafter until his/her successor shall be 3-20 elected or appointed and qualified. A Board member is qualified to 3-21 serve if s/he meets the requirements of this Act and the 3-22 requirements set forth in the TEX. ELEC. CODE ANN. and the TEX. 3-23 WATER CODE ANN., as the same exists or may hereafter be amended. 3-24 No member of a governing body of any municipal corporation and no 3-25 employee of a municipal corporation shall be appointed or elected 3-26 as a Board member. The Board members shall subscribe the 3-27 appropriate oath of office and shall be eligible for and obtain the 4-1 required minimum bond for the faithful performance of the duties of 4-2 each Board member, the cost of such bond being paid by LCMUA. A 4-3 majority of the Board shall constitute a quorum. If any Board 4-4 member becomes ineligible to serve after being elected, is removed, 4-5 resigns, or otherwise ceases to be an active Board member, the 4-6 remaining members of the Board may appoint by a majority vote a 4-7 substitute or successor Board member to serve in the position of 4-8 the departing Board member for the rest of the departing Board 4-9 members' unexpired term. 4-10 (d) No compensation shall be paid to any Board member. 4-11 SECTION 4. The Board shall elect from its number a President 4-12 and Vice President of LCMUA and such other officers as in the 4-13 judgment of the Board are necessary or appropriate. The President 4-14 shall be the Chief Executive Officer of LCMUA and the presiding 4-15 officer of all Board meetings and proceedings, and shall have the 4-16 same right to vote as any other Board member. The Vice President 4-17 shall perform all duties and exercise all powers imposed or 4-18 conferred by this act and Roberts Rules Of Order upon the President 4-19 when the President is absent or fails or declines to act, except 4-20 for the exercise of the President's right to vote. The Board shall 4-21 also elect a Secretary and a Treasurer from its members, but may 4-22 combine those offices. The Treasurer shall give bond in such 4-23 amount as may be required by the Board, or by applicable state law 4-24 with the premium to be paid by LCMUA. The condition of such 4-25 Treasurer's bond shall be that the Treasurer will faithfully 4-26 account for all money which shall come into his/her custody as 4-27 Treasurer for LCMUA. The Board shall be empowered to appoint and 5-1 employ necessary and appropriate professional persons including 5-2 engineers, attorneys, accountants, consultants, and other 5-3 employees. The day to day management of LCMUA shall be conducted 5-4 by a general manager. The power to hire and fire employees and 5-5 independent contractors of LCMUA may be conferred upon the manager. 5-6 The Board may confer upon the general manager the right and power 5-7 to sign checks, contracts, and otherwise fully conduct the day to 5-8 day management and operations of LCMUA without specific Board 5-9 approval as to any specific transaction. However, the general 5-10 manager shall not have the power to employ any person, firm, or 5-11 entity other than at the will and sufferance of the Board and shall 5-12 not have the power or authority to sign any contract on behalf of 5-13 LCMUA which exceeds the minimum amount of total overall value for 5-14 consideration set by law without prior Board approval. The Board 5-15 may adopt a seal for LCMUA. However, it shall not be necessary for 5-16 the seal to be affixed to any act, memorandum, or resolution of the 5-17 Board unless such act requires the seal to be affixed. 5-18 SECTION 5. Additional territory may be annexed to the 5-19 boundaries of LCMUA in the following manner: (a) A petition 5-20 asking for annexation signed by a majority, of the resident 5-21 qualified voters of the territory sought to be annexed shall be 5-22 filed with the Board. The petition shall legibly state the name, 5-23 address, and residence of each person signing it, and shall be 5-24 signed under oath with the following Affidavit: "Each of the 5-25 undersigned swears that s/he is a bona fide resident qualified 5-26 voter of the territory sought to be annexed, and that s/he has not 5-27 been offered or paid any consideration in money or anything of 6-1 value to sign this petition." The petition shall describe the 6-2 territory sought to be annexed by metes and bounds or other 6-3 adequate legal description signed and sealed by a qualified 6-4 registered professional surveyor or engineer and shall be 6-5 accompanied by a plat which enables the Board to identify the 6-6 boundaries and specific territory sought to be annexed. 6-7 (b) If the Board finds that the petition complies with and 6-8 is signed by the required number of qualified persons and further 6-9 finds that the annexation would be in the best interest of the 6-10 residents of the territory and the best interest of LCMUA, and 6-11 further finds that LCMUA will be able to supply services or cause 6-12 services to be supplied to the territory sought to be annexed, it 6-13 shall adopt a resolution stating the conditions under which such 6-14 territory may be annexed to LCMUA, and shall fix a time and place 6-15 when and where a hearing shall be held by the Board on the question 6-16 of whether the territory sought to be annexed will be benefited by 6-17 the improvements, works, services, and facilities then owned or 6-18 operated or contemplated to be owned or operated by LCMUA, or the 6-19 performance of other functions of LCMUA. Railroad right-of-way 6-20 which is not situated within the defined limits of an incorporated 6-21 town will not be benefited by such services and therefore it is 6-22 provided herein that no railroad right-of-way shall hereafter be 6-23 annexed to LCMUA except such right-of-way as is contained within 6-24 the limits of an incorporated municipality or governmental body. 6-25 Notice of the adoption of such resolutions stating the time and 6-26 place of such hearing shall be published one (1) time in a 6-27 newspaper of general circulation in a territory sought to be 7-1 annexed at least ten days prior to the date of such hearing. The 7-2 notice shall describe the territory in the same manner in which it 7-3 is required by this Act to be described in the petition. All 7-4 persons interested may appear at such hearing and offer evidence 7-5 for or against the proposed annexation. Witnesses may be sworn at 7-6 the option of the presiding officer of LCMUA. Such hearing may 7-7 proceed in such order and under such rules as may be prescribed by 7-8 the Board. The hearing may be recessed and reconvened from time to 7-9 time at the discretion of the Board. If at the conclusion of the 7-10 hearing the Board finds that the area in such proposed annexation 7-11 will be benefited by the present or contemplated improvements, 7-12 services, works, or facilities of LCMUA, the Board shall adopt a 7-13 resolution making such finding and calling an election in the 7-14 territory proposed to be annexed stating therein the date of the 7-15 election, the place or places of holding the same, the proposition 7-16 upon which is to be voted, and appointing a presiding judge or 7-17 judges, and clerks for such voting procedure, who shall in turn 7-18 appoint the necessary assistant judges or clerks to assist in 7-19 holding the election. The election is to be conducted in 7-20 accordance with the applicable statutes and regulations of the TEX. 7-21 ELEC. CODE ANN. 7-22 Notice of such election shall be given by publishing a 7-23 synopsis of the resolution calling for the election one time in a 7-24 newspaper of general circulation within the territory sought to be 7-25 annexed at least ten (10) days prior to the date set for election. 7-26 Only qualified voters as defined by the TEX. ELEC. CODE ANN. who 7-27 reside in the territory sought to be annexed shall be qualified to 8-1 vote in such election, and may be required to furnish proof of such 8-2 residency. Returns of the result of said election shall be made to 8-3 the Board. The Board shall canvass the returns of such election 8-4 and adopt an order declaring the results thereof. If such order 8-5 shows that a majority of the votes cast are in favor of the 8-6 annexation, the Board shall by resolution annex said territory into 8-7 LCMUA, and such annexation shall thereafter be incontestable except 8-8 in the manner and within the time provided for contesting election 8-9 under the TEX. ELEC. CODE ANN. 8-10 (c) The board in calling an election on the proposition of 8-11 annexation of territory may call an election over the entire 8-12 existing territory of LCMUA for purposes of determining whether the 8-13 entire LCMUA territory as enlarged shall assume and be burdened by 8-14 any ad valorem tax necessary and appropriate to support the general 8-15 obligation bonds then outstanding and those theretofore voted but 8-16 not yet sold, and those which may be voted upon in the future, and 8-17 whether any ad valorem tax shall be levied upon all taxable 8-18 property within the territory of LCMUA as enlarged by the territory 8-19 proposed to be annexed. The Board may provide in the election 8-20 process within the territory sought to be annexed a proposition 8-21 that the annexed territory shall be subject to a levy and 8-22 assessment for any bonded indebtedness of LCMUA supported by the 8-23 levy and collection of ad valorem taxes. Any such election shall 8-24 be called and held and notice thereof given in the same manner as 8-25 elections for the issuance of bonds as provided by the applicable 8-26 provisions of the TEX. ELEC. CODE ANN. and TEX. WATER CODE ANN. 8-27 (d) Elections for disannexation may be called by the Board 9-1 or open petition and be thereafter held in accordance with 9-2 subsections (a), (b), and (c) of this section except that the 9-3 subject matter of such petition, resolutions, and elections shall 9-4 be disannexation, not annexation. No disannexation shall have the 9-5 result of which is to reduce any tax base necessary to support any 9-6 existing bonds by levy and assessment of ad valorem taxes. 9-7 SECTION 6. Area may be added to the territory of LCMUA and 9-8 become a part thereof upon voluntary petition of all owners of such 9-9 territory in the following manner: All owners of the land sought 9-10 to be voluntarily annexed shall file with the Board a petition 9-11 asking that the lands described and sought to be added to and 9-12 become a part of LCMUA's established territory. Said petition 9-13 shall describe the land sought to be annexed by metes and bounds 9-14 and accompanying plat by LCMUA can ascertain its location, 9-15 description, and identity. Such petition shall be signed and 9-16 executed in the same manner provided by law for conveyance of real 9-17 property. Such petition shall be heard and considered by the Board 9-18 and may be granted and said land added to LCMUA's existing 9-19 territory if the same is considered to be of the advantageous and 9-20 beneficial to LCMUA and if services can be provided to the annexed 9-21 territory without injury or detriment to the operation and function 9-22 of LCMUA's current territory. Such determination regarding 9-23 probable or possible injury or detrimental operation or function 9-24 shall be determined solely by the Board based upon its discretion. 9-25 Any such petition which may be granted thereby adding lands to 9-26 LCMUA's territory shall become a part of the official records of 9-27 LCMUA. The Board shall require the petitioner to provide a sworn 10-1 affidavit identifying all owners and lien holders of the land 10-2 sought to be annexed, and may refuse annexation unless all owners 10-3 and lien holders join in or consent to such petition. 10-4 All landowners of a single tract or parcel may petition for 10-5 voluntary disannexation in a manner prescribed in subsection (a) of 10-6 this Section 6 except that such petition, resolutions, or decisions 10-7 made thereon shall be for disannexation, and not annexation. The 10-8 Board may refuse to grant such disannexation if in its description 10-9 such disannexation would be detrimental to the interests of LCMUA. 10-10 SECTION 7. LCMUA is authorized to develop surface or 10-11 underground water storage and supply facilities and to construct or 10-12 cause to be constructed a diversion works, pumps, pumping stations, 10-13 pipelines, intermediate and terminal storage reservoirs, water 10-14 treatment plants, distribution systems and all other related 10-15 facilities which will facilitate or implement the duty of LCMUA to 10-16 deliver and distribute water within its territory and any other 10-17 territory for which it holds a certificate of convenience and 10-18 necessity and to purchase, improve, modify, or extend any existing 10-19 water system or systems within the certificated territory or 10-20 outside the certificated territory if reasonably necessary or 10-21 appropriate for the support of services within the certificated 10-22 territory. LCMUA shall have the full power and authority to 10-23 construct all facilities reasonably necessary or convenient to 10-24 enable LCMUA to deliver, treat and distribute water. LCMUA is also 10-25 authorized to construct, maintain service, and operate a complete 10-26 waste water system including but not limited to waste water 10-27 treatment plant sites and collection systems. LCMUA is authorized 11-1 to use public streets, alleys, ways and places for the laying of 11-2 its water and waste water lines and facilities. LCMUA is 11-3 authorized to make contracts for the purchase of water or water 11-4 supplies, purchase treated water, purchase waste water treatment 11-5 facilities and to make contracts for the purchase or sale of 11-6 treated or untreated water or waste water. 11-7 SECTION 8. LCMUA is also empowered and has authority to 11-8 obtain any and all permits, licenses, consents, and permissions as 11-9 may be appropriate from the Texas Natural Resource Conservation 11-10 Commission or any other appropriate regulatory body in order to 11-11 conduct any of its operations. 11-12 SECTION 9. LCMUA is further authorized to acquire by 11-13 purchase all works, machinery, plants, and other facilities and 11-14 equipment and land, rights-of-way, and easements necessary or 11-15 appropriate for the purpose of exercising its rights and performing 11-16 its duties under this Act. Subject to the application of the terms 11-17 of any deed of trust or indenture executed by LCMUA, it may sell, 11-18 trade, or otherwise dispose of any real or personal property deemed 11-19 by the Board not to be needed for the LCMUA purposes. All personal 11-20 property deemed by the Board not to be needed for LCMUA purposes 11-21 may be sold under such practices and procedures as specified by the 11-22 Board and as may be necessary for compliance with applicable law. 11-23 SECTION 10. LCMUA shall have full power of eminent domain as 11-24 a municipality and a public utility. (a) LCMUA shall have the 11-25 right to acquire by condemnation any interest in land or other 11-26 property including but not limited to fee simple title or easements 11-27 or rights-of-way in and upon or under property within and beyond 12-1 the boundaries of the LCMUA territory. This right of eminent 12-2 domain and the exercise of such right, power, privilege and 12-3 function is governed by the procedure set forth in Chapter 21 of 12-4 the TEX. PROP. CODE ANN. and any other statutory or constitutional 12-5 authority including but not limited to the Constitution of the 12-6 State of Texas, and TEX. WATER CODE ANN. LCMUA is hereby declared 12-7 to be a municipal corporation within the meaning of Texas Local 12-8 Government Code Chapters 251 and 261 relating to Municipal and 12-9 County powers of eminent domain. The amount of and character of 12-10 interest taken in land, or other property and easements thus to be 12-11 acquired shall be determined by the Board upon proper resolution. 12-12 LCMUA shall have the same powers, duties and privileges as are 12-13 conferred upon water and control improvement districts by TEX. 12-14 WATER CODE ANN. Chapters 50, 51, 54, and 55. 12-15 (b) In the event that LCMUA, in the exercise of the power of 12-16 eminent domain or power of relocation, or any power granted 12-17 hereunder, makes necessary the relocating, raising, rerouting, or 12-18 changing the grade of, or altering the construction of any highway, 12-19 roadway, electric transmission line, telephone or telegraph 12-20 properties and facilities, or pipelines, all such necessary 12-21 relocation, raising, rerouting, and changing of grade, or 12-22 alteration of construction shall be accomplished at the sole 12-23 expense of LCMUA. The term "sole expense" shall mean the actual 12-24 cost of such relocation, lowering, rerouting, or changing in grade 12-25 or altering of construction in providing a comparable replacement 12-26 without enhancement of such facilities, after deducting therefrom 12-27 the net salvage value derived from the old facility. 13-1 SECTION 11. Any construction contract shall be procured in 13-2 accordance with TEX. WATER CODE ANN. Section. 39.271 et seq. as 13-3 the same exists or may hereafter be amended. 13-4 SECTION 12. LCMUA is authorized to issue general obligation 13-5 and revenue bonds as follows: (a) For the purpose of carrying out 13-6 any power or authority conferred by this Act, LCMUA is empowered to 13-7 issue its negotiable bonds to be payable from revenues or ad 13-8 valorem taxes or both revenues and taxes for the pledge of any such 13-9 revenues by resolution of the Board. Pending the issuance of 13-10 definitive bonds the Board may authorize the delivery of negotiable 13-11 interim bonds or notes, certificates of obligation or other similar 13-12 documents which are eligible for exchange or substitution or 13-13 retirement based upon the proceeds of the definitive bonds. LCMUA 13-14 may from time to time refinance any existing bonds. 13-15 (b) The issuance of bonds shall be in accordance with the 13-16 relevant statutory provisions of TEX. WATER CODE ANN. Chapter 49, 13-17 and all statutes, rules and regulations regarding the 13-18 certification, issuance and sale of such bonds. 13-19 (c) All bonds shall be authorized by resolution of the Board 13-20 and shall be issued in the name of Lake Cities Municipal Utility 13-21 Authority signed by the president or vice president, attested by 13-22 the secretary and shall bear the seal, or a facsimile seal of 13-23 LCMUA. It is provided, however, that the facsimile signatures of 13-24 the president or of the secretary or of both may be printed or 13-25 lithographed on the bonds if authorized by the Board, and the seal 13-26 of LCMUA may be impressed on the bonds or may be printed or 13-27 lithographed thereon. All bonds shall mature at a time or time 14-1 period set by the Board not to exceed forty (40) years and may be 14-2 sold at such price, or under such terms as determined by the Board 14-3 to be the most advantageous reasonably available; provided that the 14-4 interest on the bonds, including the discount, if any, shall be 14-5 based upon market value at the time of such sale and shall be 14-6 established within the discretion of the Board. Such bonds may be 14-7 made callable prior to maturity at such times and under such prices 14-8 and circumstances that may be prescribed in the resolution 14-9 authorizing the bonds, and may be made registrable or 14-10 electronically registrable as to principal or as to both principal 14-11 and interest. 14-12 (d) Bonds may be issued in more than one series and from 14-13 time to time as required for carrying out the purposes and business 14-14 of LCMUA. 14-15 (e) The bonds may be secured by a pledge of all or part of 14-16 the net revenues of LCMUA, or by the net revenues of any one or 14-17 more contracts theretofore or thereafter made or other revenues or 14-18 income specified by resolution of the Board or in the trust 14-19 indenture or other instrument securing the bonds. Any such pledge 14-20 may reserve the right under conditions therein specified, to issue 14-21 additional bonds which will be on a parity with or subordinate to 14-22 the bonds then being issued. The term "Net revenues" as used in 14-23 this Section shall mean the gross revenue and income of LCMUA thus 14-24 pledged after deduction of the amount necessary to pay the cost of 14-25 performing any such contract and of maintaining and operating LCMUA 14-26 and its properties. 14-27 (f) After the authorizing election required has been 15-1 conducted, LCMUA is also empowered to issue bonds payable from ad 15-2 valorem taxes to be levied on all taxable property therein, or 15-3 within its territories, or to issue bonds secured by and payable 15-4 from both such taxes and the revenues of such Authority. Where 15-5 bonds are issued payable wholly or partially from ad valorem taxes, 15-6 it shall be the duty of the Board to levy a tax sufficient to pay 15-7 the bonds and the interest thereon as such bonds and interest 15-8 become due, at the rate of the tax for any year may be fixed after 15-9 giving consideration to the money received from the other pledged 15-10 revenues which may be available for payment of principal and 15-11 interest to the extent and in the manner permitted by the 15-12 resolution authorizing the issuance of the bonds. 15-13 (g) Where bonds payable wholly from revenues are issued, it 15-14 shall be the duty of the Board to fix, and from time to time to 15-15 revise, the rates of compensation for water sold and services 15-16 rendered by LCMUA which will be sufficient to pay the expense of 15-17 operating and maintaining the facilities of LCMUA and to pay the 15-18 bonds as they mature and the interest as it accrues and to maintain 15-19 the reserve and other funds as required in the resolution 15-20 authorizing the bonds or in the trust indenture or other 15-21 instruments securing the bonds. Where bonds payable partially from 15-22 revenues and partially from taxes are issued it shall be the duty 15-23 of the Board to fix, and from time to time revise the rates of 15-24 compensation for water sold and services rendered by LCMUA which 15-25 will be sufficient to assure compliance with the resolution 15-26 authorizing the bonds and with any trust indenture or other 15-27 instrument securing the bonds. 16-1 (h) From the proceeds from the sale of the bonds, LCMUA may 16-2 set aside amounts for the payments into the interest and sinking 16-3 fund and the reserve fund, and such revisions may be made in the 16-4 resolution authorizing the bonds or any trust indenture or other 16-5 instruments securing the bonds. Proceeds from the sale of the 16-6 bonds may also be used for the payment of all expenses necessarily 16-7 incurred in accomplishing the purpose for which LCMUA is and was 16-8 created, including expenses of issuing and selling the bonds. The 16-9 proceeds from the sale of the bonds may be invested in obligations 16-10 to be specified by the resolution authorizing the bonds or the 16-11 trust indenture or other instrument securing the bonds. 16-12 (i) Funds accumulated for the payment of bonds and for 16-13 revenues may be invested in obligations specified in the resolution 16-14 authorizing the bonds or in the indenture. 16-15 (j) In the event of a default or a threatened default in the 16-16 payment of principal or of interest on bonds payable wholly or 16-17 partially from revenues, any court of competent jurisdiction in 16-18 Denton County, Texas may, upon petition of the holders of 16-19 outstanding bonds, appoint a receiver with authority to collect and 16-20 receive all income of LCMUA except taxes, employ and discharge 16-21 agents and employees of LCMUA, take charge of funds on hand (except 16-22 funds received form taxes unless commingled) and manage the 16-23 proprietary affairs of LCMUA without consent or hindrance by 16-24 LCMUA's Board of Directors, Board members individually, or other 16-25 employees of LCMUA. Such receiver may also be authorized to sell 16-26 or make contracts for the sale of water or renew such contracts 16-27 with the approval of the Court appointing such receiver. The Court 17-1 may vest the receiver with such other powers and duties as a Court 17-2 may find necessary for the protection of the holders of the bonds. 17-3 The resolution authorizing the issuance of the bonds or the trust 17-4 indenture or other instrument securing them may limit or qualify 17-5 rights of the holders of less than all of the outstanding payable 17-6 from the same source to institute or prosecute any litigation 17-7 affecting LCMUA's property or income. 17-8 (k) Any provision in this Act to the contrary 17-9 notwithstanding, before issuing any construction bonds, LCMUA shall 17-10 submit plans and specifications and other necessary information and 17-11 documents to the appropriate authorities and maintain and obtain 17-12 the necessary permitting and permission for the authorization of 17-13 such relevant state department or other regulatory body including 17-14 but not limited to the Texas Natural Resource Conservation 17-15 Commission. 17-16 SECTION 13. LCMUA is authorized to issue refunding bonds for 17-17 the purpose of refunding any outstanding bonds authorized by this 17-18 Act or other authority and any interest thereon. Such refunding 17-19 bonds may be issued to refund more than one series of outstanding 17-20 bonds and combine the revenues pledge to the outstanding bonds for 17-21 the security of the refunding bonds, and may be secured by other or 17-22 additional revenues and mortgage liens. The provisions of this law 17-23 with reference to the issuance by LCMUA of other bonds, their 17-24 security, and their approval by the State Attorney General and the 17-25 remedies of the holders shall be applicable to refunding bonds. 17-26 Refunding bonds shall be registered by the State Comptroller upon 17-27 surrendering cancellation of the bonds to be refunded, but in lieu 18-1 thereof, the resolution authorizing their issuance may provide that 18-2 they shall be sold and the proceeds thereof deposited in a bank. 18-3 In which case the refunding bonds may be issued in an amount 18-4 sufficient to pay the principal of and the interest on the original 18-5 bonds to their option date or maturity date, and the State 18-6 Comptroller shall register them without concurrent surrender and 18-7 cancellation of the original bonds. 18-8 SECTION 14. Any bonds (including refunding bonds) authorized 18-9 by law, not payable wholly from ad valorem taxes, may be 18-10 additionally secured by a trust indenture under which the Trustee 18-11 may be a bank, having trust powers, situated either within or 18-12 outside the State of Texas. Such bonds, within the discretion of 18-13 the Board, may be additionally secured by a deed of trust or a 18-14 mortgage lien upon physical properties of LCMUA and all franchises, 18-15 easements, water rights, and appropriation permits, leases and 18-16 contracts and all rights pertinent to such properties, vesting in 18-17 the trustee power to sell the properties for the payment of the 18-18 indebtedness, power to operate the properties and all other powers 18-19 and authority for the further security of the bonds. Such trust 18-20 indenture, regardless of the existence of the deed of trust or 18-21 mortgage lien on the properties may contain any provisions 18-22 prescribed by the Board for the security of the bonds and the 18-23 preservation of the trust estate, and may make provision for 18-24 amendment or modification thereof and the issuance of bonds to 18-25 replace lost or mutilated bonds, and may condition the right to 18-26 expend LCMUA money or sell LCMUA property upon approval of a 18-27 registered professional engineer selected as provided therein, and 19-1 may make provision for the investment of funds of LCMUA. Any 19-2 purchaser under a sale under the deed of trust lien, where one is 19-3 given shall be the absolute owner of the properties, facilities and 19-4 rights so purchased and shall have the right to maintain and 19-5 operate the same. 19-6 SECTION 15. (a) No bonds payable wholly or partially from 19-7 ad valorem taxes (except refunding bonds) shall be issued unless 19-8 authorized by an election at which only the qualified voters 19-9 residing in the LCMUA's voting territory shall be allowed to vote 19-10 and unless a majority of the votes cast is in favor of the issuance 19-11 of the bonds. Bonds not payable wholly or partially from ad 19-12 valorem taxes may be issued without an election. 19-13 (b) Such election may be called by the Board without a 19-14 petition. The resolution calling the election shall specify the 19-15 time and places of holding the same, the purpose for which the 19-16 bonds are to be issued, the maximum amount thereof, the form of the 19-17 ballot, and the presiding judge for each voting place. Bonds for 19-18 water purposes and sewer purposes may, in the discretion of the 19-19 Board, be submitted in a single proposition. The presiding judge 19-20 serving at each voting place may appoint one (1) assistant judge 19-21 and two (2) clerks to assist in holding of such election. Notice 19-22 of the election shall be given by publishing a substantial copy of 19-23 the resolution calling for the election in a newspaper having 19-24 general circulation in LCMUA on the same day of each of two (2) 19-25 consecutive weeks. The first publication shall be at least 19-26 fourteen (14) days prior to the date set for the election. 19-27 (c) The returns of the election shall be made to and 20-1 canvassed by the Board. 20-2 (d) The General Laws relating to elections shall be 20-3 applicable to elections held under this Section of this law except 20-4 as otherwise provided herein. 20-5 SECTION 16. After any bonds (including refund bonds) are 20-6 authorized by LCMUA, such bonds and the record relating to their 20-7 issuance shall be submitted to the Attorney General for his 20-8 examination as to the validity thereof. Where such bonds recite 20-9 that they are secured by a pledge of the proceeds of a contract 20-10 heretofore made between LCMUA and any other governmental agency, 20-11 authority or district, a copy of such contract and the proceedings 20-12 of the governmental agency, authority or district authorizing such 20-13 contract may also be submitted to the Attorney General. If such 20-14 bonds have been authorized and if such contracts have been made in 20-15 accordance with the Constitution and laws of the State of Texas, 20-16 the Attorney General shall approve the bonds and such contracts, 20-17 and the bonds shall then be registered by the State Comptroller of 20-18 Public Accounts. Thereafter the bonds and the contracts, if any, 20-19 shall be valid and binding. 20-20 SECTION 17. The Board shall designate one or more banks to 20-21 serve as depository for the funds of LCMUA. All funds of LCMUA 20-22 shall be deposited in such depository bank or banks except that 20-23 funds pledged to pay bonds may be deposited with the trustee bank 20-24 named in the trust agreement or other escrow, and except that funds 20-25 shall be remitted to the bank or banks of payment for the payment 20-26 of principal of and interest on bonds. To the extent that funds in 20-27 the depository bank and the trustee bank are not insured by the 21-1 Federal Deposit Insurance Corporation they shall be secured in the 21-2 manner provided by law for the security of municipal funds. Banks 21-3 selected by the Board need not go through any bid process or 21-4 process regarding invitation of the banks to become designated 21-5 depositories. 21-6 SECTION 18. All bonds of LCMUA shall be and are hereby 21-7 declared to be legal and authorized investments for banks, savings 21-8 banks, trust companies, building and loan associations, savings and 21-9 loan associations, insurance companies, fiduciaries, trustees, 21-10 guardians, and for the sinking funds of municipalities, and other 21-11 political corporations or subdivisions of the State of Texas. Such 21-12 bonds shall be eligible to secure the deposit of any and all public 21-13 funds of the State of Texas, and any and all public funds of 21-14 municipal corporations and other political corporations or 21-15 subdivisions of the State of Texas; and such bonds shall be lawful 21-16 and sufficient security for said deposits to the extent of their 21-17 value, when accompanied by all unmatured coupons appurtenant 21-18 thereto. 21-19 SECTION 19. LCMUA may be abolished by a majority vote of the 21-20 qualified voters residing within the voting territory of LCMUA at 21-21 an election held for the purpose of determining whether or not such 21-22 Authority shall be abolished. 21-23 An election shall be ordered by the County Judge of Denton 21-24 County, Texas, whenever a petition for the abolishment of LCMUA 21-25 shall be presented to the County Judge, duly signed by not less 21-26 than a majority of the qualified voters residing within the voting 21-27 territory of LCMUA. Notices of such election shall be published 22-1 and posted in accordance with the TEX. ELEC. CODE ANN. Said County 22-2 Judge shall appoint a presiding judge and as many clerks as 22-3 necessary to assist the election judge for holding the election. 22-4 The ballots for such election shall contain the proposition 'For 22-5 abolishment of Lake Cities Municipal Utility Authority' and 22-6 'Against abolishment of Lake Cities Municipal Utility Authority'. 22-7 Only qualified voters who reside within the voting territory of 22-8 LCMUA shall be qualified to vote at said election. 22-9 If a majority of those voting at such election vote in favor 22-10 of abolishing LCMUA, LCMUA shall be abolished. In the event LCMUA 22-11 shall, at the time of abolition of LCMUA, LCMUA shall be abolished. 22-12 In the event LCMUA shall, at the time of abolition of LCMUA, have 22-13 outstanding bonds or other indebtedness maturing beyond the current 22-14 year in which such abolition occurs, the Commissioners Court of 22-15 Denton County, Texas, shall levy and cause to be collected as 22-16 county taxes are assessed and collected, sufficient taxes on all 22-17 taxable property within operational territories of LCMUA to pay the 22-18 principal and interest on said bonds and other indebtedness when 22-19 due. 22-20 SECTION 20. The accomplishment of the purposes stated in 22-21 this Act is for the benefit of the people of this State and for the 22-22 improvement of their properties and industries, and LCMUA, in 22-23 carrying out the purposes of this Act, will be performing an 22-24 essential public function under the Constitution. LCMUA shall not 22-25 be required to pay any tax or assessment on any project, 22-26 operations, equipment, personal or real property or any part 22-27 thereof, and the bonds issued hereunder and their transfer and the 23-1 income therefrom, including the profits made on the sale thereof, 23-2 shall at all times be free from taxation within this State. 23-3 SECTION 21. Denton County tax assessor and collector may be 23-4 used as a tax assessor and collector and Denton Central Appraisal 23-5 District may be designated as a board of equalization and cause 23-6 taxes to be assessed, valuations to be equalized, and tax rolls to 23-7 be prepared. Absent cooperation with Denton County and Dental 23-8 Central Appraisal District, LCMUA, prior to the sale and delivery 23-9 of LCMUA bonds which are payable wholly in part from ad valorem 23-10 taxes, the Board of Directors shall appoint a tax assessor and 23-11 collector and board of equalization and cause taxes to be assessed, 23-12 evaluations to be equalized, and tax rolls to be prepared. In 23-13 either case, the laws of the State of Texas regarding tax 23-14 assessments, assessors, collectors, board of equalization, tax 23-15 rolls, and levying collections of taxes and delinquent taxes shall 23-16 be applicable to LCMUA. 23-17 SECTION 22. Nothing in this Act shall be interpreted as 23-18 amending or repealing the statutes regarding the priorities of the 23-19 use of water or any Legislation governing water control. 23-20 SECTION 23. If any part or provision of this Act or the 23-21 application thereof to any person or circumstance shall be held to 23-22 be invalid or unconstitutional, the remainder of the Act, and the 23-23 application of such provision to other persons or circumstances, 23-24 shall not be affected thereby and shall remain in full force and 23-25 effect. 23-26 SECTION 24. The Legislature finds that all notice and formal 23-27 bill introductions have been followed in the passage of this Act. 24-1 SECTION 25. The importance of this legislation and the 24-2 crowded condition of the calendars in both houses create an 24-3 emergency and an imperative public necessity that the 24-4 constitutional rule requiring bills to be read on three several 24-5 days in each house be suspended, and this rule is hereby suspended, 24-6 and that this Act take effect and be in force from and after its 24-7 passage, and it is so enacted.