By Howard H.B. No. 3194 77R9463 MI-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation, administration, powers, duties, 1-3 operation, and financing of the Fort Bend County Levee Improvement 1-4 District Number 16 and to the authorization of bonds and the levy 1-5 of taxes; providing civil penalties. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 ARTICLE 1. GENERAL PROVISIONS 1-8 SECTION 1.01. CREATION. (a) A levee improvement district, 1-9 to be known as Fort Bend County Levee Improvement District Number 1-10 16, is created. The district is a governmental agency and a body 1-11 politic and corporate. 1-12 (b) The district is created under and is essential to 1-13 accomplish the purposes of Section 59, Article XVI, Texas 1-14 Constitution. 1-15 (c) The district has the powers of a levee improvement 1-16 district as provided by Chapter 57, Water Code, and is governed by 1-17 Chapters 49 and 57, Water Code, unless otherwise provided by this 1-18 Act. 1-19 SECTION 1.02. DEFINITIONS. In this Act: 1-20 (1) "County" means Fort Bend County. 1-21 (2) "District" means the Fort Bend County Levee 1-22 Improvement District Number 16. 1-23 (3) "Board" means the board of directors of the Fort 1-24 Bend County Levee Improvement District Number 16. 2-1 (4) "Commissioners court" means the Fort Bend County 2-2 Commissioners Court. 2-3 SECTION 1.03. BOUNDARIES. (a) The district includes the 2-4 territory contained within the following area: 2-5 Being 2321.591 acres of land located in the M.M. Battle 2-6 League, Abstract 9 and the Alexander Hodges League Abstract 32, 2-7 Fort Bend County, Texas, more particularly being all of those 2-8 certain tracts called 389.137, 282.759 and 960.718 acres described 2-9 as Exhibit A-6, Exhibit A-7 and Exhibit A-9, respectively, and a 2-10 portion of that certain tract called 1093.65 acres, described as 2-11 Exhibit A-8, all conveyed to The State of Texas, State Department 2-12 of Highways and Public Transportation by an instrument of record in 2-13 Volume 2329, Page 50 of the Official Records of Fort Bend County, 2-14 Texas (F.B.C.O.R.), said 2321.591 acres being more particularly 2-15 described in two (2) parts by metes and bounds as follows (all 2-16 bearings based on the Texas State Plane Coordinate System, South 2-17 Central Zone); 2-18 PART 1 2-19 1651.115 ACRES 2-20 BEGINNING at the intersection of the east line of the 2-21 aforementioned 389.137 acres described as Exhibit A-6 and the 2-22 proposed southerly right-of-way line of Texas State Highway No. 6 2-23 (S.H. 6) (width varies); 2-24 Thence, South 01 50'42" East, 7190.30 feet to a point for 2-25 corner in the northerly right-of-way line of U.S. 59 (width 2-26 varies); 2-27 Thence, with said northerly right-of-way line of U.S. 59 the 3-1 following eighteen (18) courses: 3-2 1) South 52 31'20" West, 1040.87 feet to a point for corner; 3-3 2) South 48 11'45" West, 187.66 feet to a point for corner; 3-4 3) South 52 31'25" West, 848.96 feet to a point for corner; 3-5 4) South 74 54'21" West, 252.91 feet to a point for corner; 3-6 5) South 86 11'04" West, 495.72 feet to a point for corner; 3-7 6) North 49 03'57" West, 35.29 feet to a point for corner; 3-8 7) South 86 00'42" West, 160.00 feet to a point for corner; 3-9 8) South 28 16'44" West, 33.59 feet to a point for corner, 3-10 the beginning of a curve whose center bears South 3-11 11 45'03" East; 3-12 9) 605.23 feet along the arc of a curve to the left having a 3-13 radius of 423.00 feet, a central angle of 81 58'45" and a 3-14 chord which bears South 37 15'34" West, 554.91 feet to a 3-15 point for corner at the end of said curve; 3-16 10) South 03 40'10" East, 10.57 feet to a point for corner, 3-17 the beginning of a curve whose center bears South 3-18 86 11'10" West; 3-19 11) 521.28 feet along the arc of a curve to the right having 3-20 a radius of 875.69 feet, a central angle of 34 06'26" 3-21 and a chord which bears South 13 14'23" West, 513.62 3-22 feet to a point for corner at the end of said curve; 3-23 12) South 52 29'44" West, 925.05 feet to a point for corner; 3-24 13) South 52 29'36" West, 435.64 feet to a point for corner; 3-25 14) South 57 03'57" West, 199.79 feet to a point for corner; 3-26 15) South 52 30'48" West, 1944.36 feet to a point for 3-27 corner; 4-1 16) South 50 57'50" West, 904.84 feet to a point for corner; 4-2 17) South 54 07'20" West, 1094.20 feet to a point for 4-3 corner; 4-4 18) South 52 33'57" West, 329.02 feet to a point for corner; 4-5 Thence, North 03 12'03" West, 3818.53 feet to a point for 4-6 corner; 4-7 Thence, North 86 36'48" East, 1806.43 feet to a point for 4-8 corner; 4-9 Thence North 03 32'23" West, 9500.81 feet to a point for 4-10 corner in the southerly right-of-way line of U.S. Highway No. 90-A; 4-11 Thence, with said southerly right-of-way line of U.S. Highway 4-12 No. 90-A the following eight (8) courses: 4-13 1) North 65 39'06" East, 256.30 feet to a point for corner, 4-14 the beginning of a curve whose center bears North 4-15 24 31'32" West; 4-16 2) 680.54 feet along the arc of a curve to the left having a 4-17 radius of 6043.20 feet, a central angle of 06 27'08" and 4-18 a chord which bears North 62 24'54" East, 680.18 feet to 4-19 a point for corner; 4-20 3) North 59 11'59" East, 1248.35 feet to a point for corner; 4-21 4) North 68 00'20" East, 590.07 feet to a point for corner; 4-22 5) North 74 12'26" East, 439.68 feet to a point for corner; 4-23 6) North 80 01'35" East, 189.98 feet to a point for corner; 4-24 7) North 86 16'10" East, 499.86 feet to a point for corner; 4-25 8) South 84 07'12" East, 296.42 feet to a point for corner, 4-26 the beginning of a curve whose center bears North 4-27 45 54'16" East, said point being in the aforementioned 5-1 proposed southerly right-of-way line of S.H. 6; 5-2 Thence, with said proposed southerly right-of-way line of 5-3 S.H. 6 the following eleven (11) courses; 5-4 1) 417.214 feet along the arc of a curve to the left having 5-5 a radius of 1954.86 feet, a central angle of 12 13'45" 5-6 and a chord which bears South 50 12'36" East, 416.45 feet 5-7 to a point for corner at the end of said curve; 5-8 2) South 55 56'26" East, 752.00 feet to a point for corner, 5-9 the beginning of a curve whose center bears North 5-10 36 23'44" East; 5-11 3) 116.03 feet along the arc of a curve to the left having a 5-12 radius of 2844.79 feet, a central angle of 02 20'13" and 5-13 a chord which bears South 54 46'22" East, 116.02 feet to 5-14 a point for corner; 5-15 4) South 48 54'25" East, 174.14 feet to a point for corner; 5-16 5) South 52 44'28" East, 316.76 feet to a point for corner; 5-17 6) South 07 44'31" East, 31.13 feet to a point for corner; 5-18 7) South 62 33'17" East, 162.37 feet to a point for corner; 5-19 8) North 84 27'47" East, 27.26 feet to a point for corner, 5-20 the beginning of a curve whose center bears North 5-21 36 36'08" East; 5-22 9) 288.78 feet along the arc of a curve to the left having a 5-23 radius of 2897.80 feet, a central angle of 05 42'35" and 5-24 a chord which bears South 56 15'10" East, 288.66 feet to 5-25 a point for corner at the end of said curve; 5-26 10) South 59 06'29" East, 683.96 feet to a point for corner, 5-27 the beginning of a curve; 6-1 11) 185.98 fee along the arc of a tangent curve to the right 6-2 having a radius of 2844.79 feet, a central angle of 6-3 03 44'45" and a chord which bears South 57 14'05" East, 6-4 185.95 feet to the POINT OF BEGINNING and containing 6-5 1651.115 acres of land. 6-6 PART 2 6-7 670.476 ACRES 6-8 BEGINNING at the intersection of the east line of the 6-9 aforementioned 1093.65 acres described as Exhibit A-8 and the 6-10 southerly right-of-way line of aforementioned U.S. 59 from which 6-11 the southeast corner of the above described Part 1 bears North 6-12 01 53'45" West, 550.74 feet; 6-13 Thence, South 01 50'42" East, 3087.21 feet to a point for 6-14 corner; 6-15 Thence, North 87 11'58" East, 619.44 feet to a point for 6-16 corner; 6-17 Thence, South 01 55'19" East, 4421.32 feet to a point for 6-18 corner; 6-19 Thence, South 88 02'21" West, 300.99 feet to a point for 6-20 corner; 6-21 Thence, South 01 51'04" East, 976.57 feet to a point for 6-22 corner, the beginning of a curve whose center bears North 37 15'45" 6-23 East; 6-24 Thence, 1227.88 feet along the arc of a curve to the right 6-25 having a radius of 2891.80 feet, a central angle of 24 19'42" and a 6-26 chord which bears North 40 34'24" West, 1218.68 feet to a point for 6-27 corner at the end of said curve; 7-1 Thence, North 28 24'33" West, 378.96 feet to a point for 7-2 corner; 7-3 Thence, North 54 53'42" West, 516.66 feet to a point for 7-4 corner; 7-5 Thence, North 70 18'35" West, 1318.58 feet to a point for 7-6 corner; 7-7 Thence, North 78 25'45" West, 966.06 feet to a point for 7-8 corner; 7-9 Thence, South 89 02'49" West, 2421.07 feet to a point for 7-10 corner; 7-11 Thence, North 77 32'21" West, 496.91 feet to a point for 7-12 corner; 7-13 Thence, North 33 55'33" West, 888.23 feet to a point for 7-14 corner; 7-15 Thence, North 79 49'48" West, 442.63 feet to a point for 7-16 corner; 7-17 Thence, North 42 56'06" West, 75.28 feet to a point for 7-18 corner in the aforementioned southerly right-of-way line of U.S. 7-19 59; 7-20 Thence, with said southerly right-of-way line of U.S. 59 the 7-21 following sixteen (16) courses: 7-22 1) North 50 57'50" East, 1689.20 feet to a point for corner; 7-23 2) North 52 30'48" East, 1921.22 feet to a point for corner; 7-24 3) North 57 03'57" East, 199.96 feet to a point for corner; 7-25 4) North 52 29'36" East, 453.80 feet to a point for corner; 7-26 5) North 52 29'44" East, 400.00 feet to a point for corner; 7-27 6) North 76 03'27" East, 339.22 feet to a point for corner; 8-1 7) North 86 05'07" East, 374.89 feet to a point for corner; 8-2 8) South 49 10'00" East, 35.51 feet to a point for corner; 8-3 9) North 86 05'08" East, 150.00 feet to a point for corner; 8-4 10) North 40 50'00" East, 35.20 feet to a point for corner; 8-5 11) North 86 05'08" East, 31.60 feet to a point for corner, 8-6 the beginning of a curve; 8-7 12) 663.95 feet along the arc of a tangent curve to the left 8-8 having a radius of 423.00 feet, a central angle of 8-9 89 56'00" and a chord which bears North 41 07'08" East, 8-10 597.86 feet to a point for corner; 8-11 13) North 03 52'55" West, 10.00 feet to a point for corner, 8-12 the beginning of a curve whose center bears North 8-13 86 14'21" East; 8-14 14) 576.71 feet along the arc of a curve to the right having 8-15 a radius of 877.19 feet, a central angle of 37 40'10" 8-16 and a chord which bears North 15 04'26" East, 566.38 8-17 feet to a point for corner at the end of said curve; 8-18 15) North 52 31'23" East, 1291.14 feet to a point for 8-19 corner; 8-20 16) North 51 33'03" East, 886.94 feet to the POINT OF 8-21 BEGINNING and containing 670.476 acres of land. 8-22 Said Part 1 and Part 2 containing a total of 2321.591 acres 8-23 of land. 8-24 (b) A mistake in the patents or field notes or in copying 8-25 the patents or field notes in the legislative process does not 8-26 affect the organization, existence, or validity of the district, 8-27 the right of the district to issue bonds or refunding bonds or to 9-1 pay the principal of or interest on issued bonds, the right of the 9-2 district to levy and collect taxes, or the legality or operation of 9-3 the district or its governing board. 9-4 ARTICLE 2. ADMINISTRATIVE PROVISIONS 9-5 SECTION 2.01. BOARD. (a) The district is governed by a 9-6 board of three directors appointed by the commissioners court. 9-7 (b) Except for initial directors, directors serve staggered 9-8 four-year terms, with the terms of one or two directors expiring 9-9 September 1 of each even-numbered year. 9-10 (c) Initial directors shall serve until permanent directors 9-11 are appointed under Section 2.04 of this Act and qualified as 9-12 required by Subsection (e) of this section. 9-13 (d) A director serves until the director's successor has 9-14 qualified as required by Subsection (e) of this section. 9-15 (e) A director must qualify to serve as required by Section 9-16 49.055, Water Code. 9-17 SECTION 2.02. DIRECTOR ELIGIBILITY. (a) Except for initial 9-18 directors, a person must meet the requirements of Section 57.059, 9-19 Water Code, to be eligible to serve as a director. A person must 9-20 be at least 18 years of age and a resident of Fort Bend County or 9-21 Travis County to be eligible to serve as an initial director. 9-22 (b) Notwithstanding Section 49.052, Water Code, employment 9-23 with a state agency, other than the Texas Department of 9-24 Transportation, the General Land Office, or the School Land Board, 9-25 does not disqualify a person from serving as a director. 9-26 (c) An employee of the district may not serve as a director. 9-27 SECTION 2.03. APPOINTMENT OF INITIAL DIRECTORS. (a) The 10-1 School Land Board shall appoint three initial directors as soon as 10-2 practicable after the effective date of this Act. The School Land 10-3 Board shall appoint one initial director to serve a term expiring 10-4 September 1, 2002, and two initial directors to serve terms 10-5 expiring September 1, 2004. 10-6 (b) If a vacancy occurs, the School Land Board shall appoint 10-7 a successor to fill the vacancy and to serve the remainder of the 10-8 unexpired term. 10-9 SECTION 2.04. APPOINTMENT OF PERMANENT DIRECTORS. The 10-10 commissioners court shall appoint one permanent director to serve a 10-11 four-year term beginning September 1, 2002, and two permanent 10-12 directors to serve four-year terms beginning September 1, 2004. 10-13 Every subsequent second year, the commissioners court shall appoint 10-14 the appropriate number of directors. 10-15 SECTION 2.05. MEETINGS AND BOARD ACTIONS. (a) The board may 10-16 establish regular meetings to conduct the business of the district 10-17 and may hold special meetings if necessary as determined by the 10-18 board. The board shall hold a meeting under this section within 10-19 the district unless the board, by a majority vote at a public 10-20 meeting, decides to hold the meeting outside of the district. 10-21 (b) The board may adopt bylaws to govern the affairs of the 10-22 district. 10-23 SECTION 2.06. APPOINTMENT OF BOARD SECRETARY AND TREASURER. 10-24 The board shall appoint a secretary and treasurer. The secretary 10-25 and treasurer may be, but are not required to be, members of the 10-26 board. One person may serve as both secretary and treasurer. 10-27 SECTION 2.07. CONFLICT OF INTEREST: CONTRACT. A director 11-1 who is financially interested in a contract that is proposed to be 11-2 executed by the board for the purchase of property or services or 11-3 for the construction of facilities shall disclose the director's 11-4 interest to the board and may not vote on the acceptance of the 11-5 contract. 11-6 SECTION 2.08. DISTRICT EMPLOYEES. The board may employ a 11-7 general manager and consulting engineers, financial consultants, 11-8 attorneys, and auditors. The general manager shall be responsible 11-9 for: 11-10 (1) administering the board's directives; 11-11 (2) maintaining district records, including minutes of 11-12 board meetings; 11-13 (3) coordinating with federal, state, and local 11-14 agencies; 11-15 (4) developing plans and programs for the board's 11-16 approval; 11-17 (5) hiring, supervising, training, and discharging the 11-18 district's employees; 11-19 (6) obtaining technical, scientific, legal, fiscal, or 11-20 other professional services for the district; and 11-21 (7) performing other duties as assigned by the board. 11-22 SECTION 2.09. EMPLOYEE BONDS. (a) The general manager and 11-23 each employee of the district who is charged with the collection, 11-24 custody, or payment of district money shall execute a fidelity bond 11-25 in an amount determined by the board and in a form and with a 11-26 surety approved by the board. 11-27 (b) The district shall pay the premium on a bond under this 12-1 section. 12-2 SECTION 2.10. PRINCIPAL OFFICE. (a) If the district has 12-3 not issued bonds, the district may maintain its principal office in 12-4 Fort Bend County or Travis County. If the district maintains its 12-5 principal office in Travis County, the district shall maintain 12-6 duplicates of district records in Fort Bend County and make the 12-7 duplicate records available for inspection during regular business 12-8 hours. 12-9 (b) If the district has issued bonds, the district shall 12-10 maintain its principal office in Fort Bend County. 12-11 SECTION 2.11. RECORDS. (a) The district shall keep at its 12-12 principal office: 12-13 (1) a complete and accurate account of the district's 12-14 business transactions in accordance with generally accepted 12-15 accounting methods; 12-16 (2) a complete and accurate record of the minutes of 12-17 board meetings; and 12-18 (3) contracts, documents, and other records of the 12-19 district. 12-20 (b) The district shall permit reasonable public inspection 12-21 of the district's records during regular business hours. 12-22 ARTICLE 3. AUTHORITY OF DISTRICT 12-23 SECTION 3.01. POWERS AND DUTIES. The district shall 12-24 administer and enforce the provisions of this Act and use the 12-25 facilities and powers of the district to accomplish the purposes of 12-26 this Act and Chapter 57, Water Code. 12-27 SECTION 3.02. DISTRICT RULES. (a) The district may adopt 13-1 and enforce rules reasonably required to implement this Act, 13-2 including rules governing procedure and practice before the board. 13-3 (b) The district shall keep a record of the district's rules 13-4 and provide a copy of the rules to a person on written request. 13-5 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. In addition 13-6 to the powers provided by Section 49.221, Water Code, the district 13-7 may enter public or private property located within the district 13-8 for purposes of inspecting and investigating conditions of the 13-9 property relating to the district's authorized purposes. The 13-10 district shall conduct an inspection or investigation in accordance 13-11 with provisions and restrictions applicable to the Texas Natural 13-12 Resource Conservation Commission. 13-13 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may: 13-14 (1) hold hearings, receive evidence from a party in 13-15 interest who appears before the board, and make findings of fact 13-16 and determinations relating to the administration of this Act or an 13-17 order or rule of the board; and 13-18 (2) delegate the authority to take testimony and 13-19 administer oaths in a hearing held by the district to a member of 13-20 the board or an employee of the district. 13-21 (b) An order of the board must: 13-22 (1) be in the name of the district; and 13-23 (2) be attested to by the appropriate members of the 13-24 board under the district's rules. 13-25 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who 13-26 violates a rule, permit, or order of the district is subject to a 13-27 civil penalty in accordance with Chapter 49, Water Code. 14-1 (b) The district may sue to enjoin a threatened or present 14-2 activity or to recover the penalty in a district court in the 14-3 county in which the violation occurred. A penalty recovered under 14-4 this subsection shall be paid to the district. 14-5 SECTION 3.06. FACILITIES. In addition to the authority 14-6 provided by Section 49.218, Water Code, the district may purchase, 14-7 construct, acquire, own, lease, operate, maintain, repair, improve, 14-8 and extend, at any location within or outside of the district, 14-9 land, or an interest in land, a work, an improvement, a facility, a 14-10 plant, equipment, or an appliance that is incident, helpful, or 14-11 necessary to accomplish the purposes of the district. 14-12 SECTION 3.07. USE OF PUBLIC ROADWAYS, STREETS, ALLEYS, OR 14-13 EASEMENTS. The district may use a public roadway, street, alley, or 14-14 easement in Fort Bend County to accomplish the purposes of the 14-15 district. The district is not required to obtain a franchise or 14-16 other governmental agreement to use a roadway, street, alley, or 14-17 easement that is owned by a city if, before using the roadway, 14-18 street, alley, or easement, the district obtains written consent of 14-19 the city to the particular use. The district is not required to pay 14-20 a fee to a city for the use of the roadway, street, alley, or 14-21 easement. 14-22 SECTION 3.08. RELOCATION OF FACILITIES. The district may 14-23 relocate, raise, reroute, or change the grade of, or alter the 14-24 construction of, a highway, railroad, electric transmission line, 14-25 pipeline, canal, or drainage ditch, if considered necessary by the 14-26 board. The district shall pay for any relocation, raising, 14-27 rerouting, changing, or altering under this section, unless 15-1 otherwise agreed in writing by the interested parties. 15-2 ARTICLE 4. GENERAL FISCAL PROVISIONS 15-3 SECTION 4.01. DISBURSEMENT OF MONEY. The district may 15-4 disburse money only by check, draft, order, or other instrument 15-5 signed by a person authorized in the bylaws of the district or by 15-6 board resolution. 15-7 SECTION 4.02. LOANS AND GRANTS. The district may apply for 15-8 and receive a loan or grant from the state or the United States, or 15-9 any agency of the state or the United States, or from a private 15-10 entity, for purposes of exercising the powers of the district. 15-11 SECTION 4.03. DEPOSITORY BANKS. (a) A bank is not 15-12 disqualified from being a depository under this section because an 15-13 officer or a director of the bank is a member of the board. 15-14 (b) An officer or a director of a bank is not disqualified 15-15 from being a member of the board. 15-16 (c) Subject to Sections 49.156 and 49.157, Water Code, the 15-17 board may designate a bank as depository on terms that the board 15-18 finds proper. 15-19 ARTICLE 5. BOND AND TAX PROVISIONS 15-20 SECTION 5.01. TAXES; REVENUE BONDS. (a) For purposes of 15-21 exercising the authority of the district as provided by this Act, 15-22 the district may issue bonds or other obligations that are: 15-23 (1) secured by ad valorem taxes; 15-24 (2) secured by a pledge of all or part of the revenues 15-25 accruing to the district, other than ad valorem taxes; and 15-26 (3) secured by both a pledge of all or part of the 15-27 revenues described by Subdivision (2) of this subsection and ad 16-1 valorem taxes. 16-2 (b) An obligation issued by the district shall be authorized 16-3 by resolution of the board, issued in the name of the district, 16-4 signed by the president or vice president, attested to by the 16-5 secretary, and bear the seal of the district. The signatures of 16-6 the president or vice president and the secretary may be printed or 16-7 lithographed on the obligation. The seal of the district may be 16-8 impressed, printed, or lithographed on the obligation. An 16-9 obligation issued by the district: 16-10 (1) shall be in a form prescribed by the board; 16-11 (2) may be in any denomination; 16-12 (3) shall mature serially or otherwise not later than 16-13 50 years from the date of issuance; 16-14 (4) may bear any interest rate; 16-15 (5) may be sold at a price and under terms determined 16-16 by the board to be the most advantageous available; 16-17 (6) may, in the discretion of the board, be made 16-18 callable before maturity at times and prices as provided in the 16-19 obligation; 16-20 (7) may be made registrable as to principal or 16-21 principal and interest; and 16-22 (8) may be secured by an indenture of trust with a 16-23 corporate trustee. 16-24 (c) An obligation under this section may be issued in more 16-25 than one series as required to carry out the purposes of this Act. 16-26 A pledge of revenue may reserve the right to issue additional 16-27 obligations under conditions specified on the pledge. An 17-1 additional obligation is on a parity with or subordinate to the 17-2 original obligation. 17-3 (d) The district is an issuer for purposes of Chapter 137, 17-4 Government Code. 17-5 (e) A board resolution authorizing an obligation or a trust 17-6 indenture under this section may include additional terms to 17-7 provide for a corporate trustee or receiver to take possession of 17-8 facilities of the district in the event of default by the district 17-9 relating to the obligation or trust indenture. The additional 17-10 terms, if any, constitute a contract between the district and the 17-11 owner of the obligation. 17-12 (f) The district may not issue bonds that are secured by or 17-13 otherwise encumber permanent school fund land located within the 17-14 district. 17-15 SECTION 5.02. BOND ANTICIPATION NOTES. The district may 17-16 issue bond anticipation notes for purposes of exercising the powers 17-17 of the district. Bond anticipation notes may be secured by a 17-18 pledge of all or part of the revenues of the district. The 17-19 district may authorize the issuance of bonds to pay the principal 17-20 of and interest on bond anticipation notes issued under this 17-21 section. Bond anticipation notes shall be secured by a pledge of 17-22 all or part of the revenues of the district and may be issued on a 17-23 parity with or subordinate to outstanding bonds of the issuer. If 17-24 the resolution or trust agreement authorizing the issuance of bond 17-25 anticipation notes contains a covenant that the notes are payable 17-26 from the proceeds of subsequently issued bonds, the district is not 17-27 required to demonstrate that the revenues that may be pledged to 18-1 the notes are sufficient to pay the principal of and interest on 18-2 the notes for purposes of receiving approval of the attorney 18-3 general or registration by the comptroller. 18-4 SECTION 5.03. REFUNDING BONDS. (a) The district may issue 18-5 refunding bonds to refund outstanding bonds and interest as 18-6 authorized by this Act. 18-7 (b) Refunding bonds may: 18-8 (1) be issued to refund one or more series of 18-9 outstanding bonds; 18-10 (2) combine the pledges for the outstanding bonds for 18-11 the security of the refunding bonds; or 18-12 (3) be secured by additional revenues. 18-13 (c) Refunding bonds may be issued without holding an 18-14 election to authorize the issuance of the bonds. 18-15 (d) Refunding bonds shall be registered by the comptroller 18-16 on surrender and cancellation of the bonds to be refunded or, if 18-17 the resolution authorizing the issuance of refunding bonds provides 18-18 that the bonds shall be sold and the proceeds deposited in the bank 18-19 where the bonds to be refunded are payable, the refunding bonds may 18-20 be issued in an amount sufficient to pay the principal and interest 18-21 of the bonds to be refunded to their option or maturity date. The 18-22 comptroller shall register the refunding bonds without concurrent 18-23 surrender and cancellation of the bonds to be refunded. 18-24 ARTICLE 6. MISCELLANEOUS PROVISIONS 18-25 SECTION 6.01. TAX EXEMPTION. The purposes stated in this 18-26 Act are for the benefit of the people of the state, including the 18-27 improvement of property and industry. The district, in carrying 19-1 out the purposes of this Act, is performing an essential public 19-2 function under the constitution and is not required to pay a tax or 19-3 assessment on a project of the district or on the bonds or notes 19-4 issued by the district under this Act, including the transfer of, 19-5 the income from, and the profits made on the sale of issued bonds 19-6 and notes. 19-7 SECTION 6.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. 19-8 (a) The proper and legal notice of the intention to introduce this 19-9 Act, setting forth the general substance of this Act, has been 19-10 published as provided by law, and the notice and a copy of this Act 19-11 have been furnished to all persons, agencies, officials, or 19-12 entities to which they are required to be furnished by the 19-13 constitution and other laws of this state, including the governor, 19-14 who has submitted the notice and Act to the Texas Natural Resource 19-15 Conservation Commission. 19-16 (b) The Texas Natural Resource Conservation Commission has 19-17 filed its recommendations relating to this Act with the governor, 19-18 lieutenant governor, and speaker of the house of representatives 19-19 within the required time. 19-20 (c) All requirements of the constitution and laws of this 19-21 state and the rules and procedures of the legislature with respect 19-22 to the notice, introduction, and passage of this Act are fulfilled 19-23 and accomplished. 19-24 SECTION 6.03. EFFECTIVE DATE. This Act takes effect 19-25 immediately if it receives a vote of two-thirds of all the members 19-26 elected to each house, as provided by Section 39, Article III, 19-27 Texas Constitution. If this Act does not receive the vote 20-1 necessary for immediate effect, this Act takes effect September 1, 20-2 2001.