1-1     By:  Shapiro                                          S.B. No. 1770
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 19, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 0; April 19, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1770              By:  Armbrister
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the powers, administration, financing, and validation
1-11     of certain actions of the Dallas County Utility and Reclamation
1-12     District.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Section 5, Chapter 628, Acts of the 68th
1-15     Legislature, Regular Session, 1983, is amended to read as follows:
1-16           Sec. 5.  All powers of the district shall be exercised by a
1-17     board of five directors.  Each director shall serve for his term of
1-18     office as herein provided and thereafter until his successor shall
1-19     be appointed and qualified.  If any director ceases to possess the
1-20     qualifications prescribed herein, his office shall be declared
1-21     vacant by the board of directors and his successor shall be
1-22     appointed by the City Council of the City of Irving [remaining
1-23     directors].  Each director shall be at least 18 years of age and
1-24     possess one of the following qualifications:  own land within the
1-25     district subject to taxation; [or] be a qualified voter residing
1-26     within the district at the time of  his qualification as a
1-27     director; be an agent, employee, officer, or director of any
1-28     individual, corporation, trust, or partnership that owns or leases
1-29     real property within the district; or be a resident of the City of
1-30     Irving and shall qualify by subscribing the constitutional oath of
1-31     office and by giving bond in the amount of $5,000 for the faithful
1-32     performance of his duties.  At least three of the five directors
1-33     shall be qualified as directors under Section 49.052(a), Water
1-34     Code, without consideration of any exceptions from that subsection
1-35     provided by other provisions of Section 49.052, Water Code.
1-36     Section 49.052, Water Code, applies to the extent of this section
1-37     and for no other purpose.  All directors' bonds shall be approved
1-38     by the district's board of directors and recorded in the official
1-39     bond records of the County Clerk of Dallas County.  The five
1-40     directors serving on the effective date of this Act shall continue
1-41     as directors of the district and shall remain as directors until
1-42     their successors are duly appointed [elected] and take office on
1-43     October 1, 1999.  Beginning with the first day of October, 1999,
1-44     the City Council of the City of Irving shall appoint three
1-45     directors for terms of four years and two directors for terms of
1-46     two years.  On the first day of October of each odd-numbered year
1-47     [Saturday in May, 1990, and on the first Saturday in each May]
1-48     thereafter, the [all five] directors whose terms expire shall be
1-49     appointed by the City Council of the City of Irving [elected at an
1-50     election] and shall serve for a term of four years [one year] and
1-51     until their successors are appointed [elected] and take office.
1-52     All vacancies on the board of directors shall be filled by
1-53     appointment to the unexpired term by the City Council of the City
1-54     of Irving [remaining directors.  Section 50.026, Water Code, does
1-55     not apply to the district].  The City Council of the City of Irving
1-56     may remove and replace any director it appoints at any time without
1-57     cause.  The city by its appointment and removal of directors and
1-58     any other action taken, except the action to dissolve the district
1-59     under state law or any other specific action taken by the city,
1-60     which action must be evidenced in writing, directly relating to any
1-61     bond, note, financial obligation, or contractual obligation of the
1-62     district, does not assume, agree to pay, or guarantee the payment
1-63     of any bond, note, or other financial obligation or undertaking of
1-64     the district, whether in the form of securities or in other
 2-1     contractual forms, including the district's bonds. The directors
 2-2     shall establish in the district's bylaws what shall constitute a
 2-3     quorum for any meeting, and a concurrence of a majority of the
 2-4     quorum shall be necessary in all district matters.  The board of
 2-5     directors shall prescribe the method of execution of all contracts,
 2-6     the signing of checks, and the handling of any other matters
 2-7     approved by the board of directors as shown in the official minutes
 2-8     of the district.  Annually in the month of October [After each
 2-9     election], the board shall reorganize and elect new officers as
2-10     soon as practicable.  The board of directors may designate one or
2-11     more assistant secretaries and an assistant treasurer, who may but
2-12     need not be a member of the board of directors.  The secretary of
2-13     the board of directors or one of the assistant secretaries shall be
2-14     responsible for keeping the minutes of the meetings of the board of
2-15     directors and all official records of the board and may certify to
2-16     any action taken by the board of directors.  Each member of the
2-17     board of directors shall receive a per diem payment of $50 for each
2-18     regular or special board or committee [per] meeting and shall be
2-19     reimbursed for actual expenses approved by the board of directors.
2-20     The board of directors shall hold regular and special meetings at
2-21     such times and on such dates as the board shall determine upon
2-22     giving of notice as required by the district's bylaws.
2-23           SECTION 2.  Section 14, Chapter 628, Acts of the 68th
2-24     Legislature, Regular Session, 1983, is amended to read as follows:
2-25           Sec. 14.  The district shall obtain the approval of the City
2-26     of Irving in the form of a city council resolution as a condition
2-27     precedent to the annexation of any additional land and the approval
2-28     of the district's annual operation and maintenance budget.
2-29           SECTION 3.  (a)  The organization of the Dallas County
2-30     Utility and Reclamation District and all elections held, all
2-31     contracts executed, and all bonds and other obligations issued by
2-32     the district, and the expenditure of funds in payment or
2-33     satisfaction thereof, all sales and donations of assets, all tax
2-34     rate reduction agreements, and all governmental and proprietary
2-35     actions are hereby in all things validated, ratified, and confirmed
2-36     in all respects as if the actions had been done as authorized by
2-37     law.
2-38           (b)  All bonds heretofore voted and all maintenance taxes
2-39     heretofore authorized at elections held within the district may be
2-40     issued, levied, and collected by the board of directors of the
2-41     district without the necessity of any further elections with
2-42     respect thereto.
2-43           SECTION 4.  (a)  The proper and legal notice of the intention
2-44     to introduce this Act, setting forth the general substance of this
2-45     Act, has been published as provided by law, and the notice and a
2-46     copy of this Act have been furnished to all persons, agencies,
2-47     officials, or entities to which they are required to be furnished
2-48     by the constitution and other laws of this state, including the
2-49     governor, who has submitted the notice and Act to the Texas Natural
2-50     Resource Conservation Commission.
2-51           (b)  The Texas Natural Resource Conservation Commission has
2-52     filed its recommendations relating to this Act with the governor,
2-53     lieutenant governor, and speaker of the house of representatives
2-54     within the required time.
2-55           (c)  All requirements of the constitution and laws of this
2-56     state and the rules and procedures of the legislature with respect
2-57     to the notice, introduction, and passage of this Act are fulfilled
2-58     and accomplished.
2-59           SECTION 5.  Section 3 of this Act does not apply to an act,
2-60     proceeding, election, bond, or obligation the validity of which is
2-61     the subject of litigation that is pending on the effective date of
2-62     this Act.
2-63           SECTION 6.  The importance of this legislation and the
2-64     crowded condition of the calendars in both houses create an
2-65     emergency and an imperative public necessity that the
2-66     constitutional rule requiring bills to be read on three several
2-67     days in each house be suspended, and this rule is hereby suspended,
2-68     and that this Act take effect and be in force from and after its
2-69     passage, and it is so enacted.
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