By Howard H.B. No. 3194
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
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 ____ 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 ____, 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 Chapter 49, Water Code, unless otherwise provided by this Act.
1-18 SECTION 1.02. DEFINITIONS. In this Act:
1-19 (1) "County" means Fort Bend County.
1-20 (2) "District" means the Fort Bend County Levee
1-21 Improvement District Number ____.
1-22 (3) "Board" means the board of directors of the Fort
1-23 Bend County Levee Improvement District Number ____.
2-1 (4) "Commissioners court" means the Fort Bend County
2-2 Commissioners Court.
2-3 SECTION 1.03. BOUNDARIES. (a) Except as provided by
2-4 Subsection (b) of this section, the district includes the territory
2-5 contained within the following area:
2-6 (b) A mistake in the patents or field notes or in copying
2-7 the patents or field notes in the legislative process does not
2-8 affect the organization, existence, or validity of the district,
2-9 the right of the district to issue bonds or refunding bonds or to
2-10 pay the principal of or interest on issued bonds, the right of the
2-11 district to levy and collect taxes, or the legality or operation of
2-12 the district or its governing board.
2-13 ARTICLE 2. ADMINISTRATIVE PROVISIONS
2-14 SECTION 2.01. BOARD. The district shall be governed by and
2-15 all powers of the district shall be exercised by a board of five
2-16 directors.
2-17 SECTION 2.02. DIRECTOR ELIGIBILITY. Except for initial
2-18 directors, a person must meet the requirements of Section 57.059,
2-19 Water Code, to be eligible to serve as a director. A person must
2-20 be at least 18 years of age and a resident of Fort Bend County or
2-21 Travis County to be eligible to serve as an initial director.
2-22 Notwithstanding Section 49.052, Water Code, employment with a state
2-23 agency, other than the Texas Department of Transportation, the
2-24 General Land Office or the School Land Board, does not disqualify a
2-25 person from serving as a director. An employee of the district may
2-26 not serve as a director.
3-1 SECTION 2.03. TERMS OF OFFICE AND APPOINTMENT OF DIRECTORS.
3-2 (a) Except for initial directors, directors serve staggered
3-3 four-year terms, with the terms of two or three directors expiring
3-4 September 1 of each even-numbered year.
3-5 (b) The School Land Board shall appoint five initial
3-6 directors as soon as practicable after the effective date of this
3-7 Act. The School Land Board shall appoint two initial directors to
3-8 serve terms expiring September 1, 2002, and three initial directors
3-9 to serve terms expiring September 1, 2004. If a vacancy occurs,
3-10 the School Land Board shall appoint a successor to fill the vacancy
3-11 and to serve the remainder of the unexpired term. Initial
3-12 directors shall serve until permanent directors are elected under
3-13 Section 2.04 of this Act and qualify for office.
3-14 SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. (a) A
3-15 director serves until the director's successor has qualified. An
3-16 election shall be held for the election of the appropriate number
3-17 of permanent directors on the first Saturday in May of each
3-18 even-numbered year.
3-19 (b) The board shall publish notice of an election under this
3-20 section once a week for two consecutive weeks in a newspaper of
3-21 general circulation in the district beginning not later than 14
3-22 days before the date of the election.
3-23 SECTION 2.05. QUALIFICATION OF DIRECTOR. A director shall
3-24 take the constitutional oath of office and, except for initial
3-25 directors, give bond for the faithful performance of the director's
3-26 duties as required by Section 49.055, Water Code. The cost of a
4-1 bond under this section shall be paid by the district.
4-2 SECTION 2.06. MEETINGS AND BOARD ACTIONS. (a) The board
4-3 may establish regular meetings to conduct the business of the
4-4 district and may hold special meetings if necessary as determined
4-5 by the board. The board shall hold a meeting under this section
4-6 within the district unless the board, by a majority vote at a
4-7 public meeting, decides to hold the meeting outside of the
4-8 district.
4-9 (b) A majority of the directors shall constitute a quorum of
4-10 the board. A vote of a majority of the quorum present is necessary
4-11 to take board action. The board may adopt bylaws to govern the
4-12 affairs of the district and may adopt a seal for the district. The
4-13 board may provide in the bylaws that, except for initial directors,
4-14 a director shall receive compensation of $20 for attending a
4-15 meeting of the board. A director may not be paid more than $40 for
4-16 meetings held in a calendar month.
4-17 SECTION 2.07. ORGANIZATION OF BOARD OF DIRECTORS. The board
4-18 shall elect a president and vice president from members of the
4-19 board. The board may elect other officers as are deemed necessary
4-20 by the board. The president is the chief executive officer of the
4-21 district and the presiding officer of the board and has the same
4-22 right to vote as other members of the board. The vice president
4-23 shall perform the duties and exercise the powers of the president
4-24 if the president is absent, fails to act, or refuses to act. The
4-25 board shall appoint a secretary and treasurer. The secretary and
4-26 treasurer may be, but are not required to be, members of the board.
5-1 One person may serve as both secretary and treasurer. The
5-2 treasurer shall give bond in an amount required by the board. The
5-3 condition of the bond shall be that the treasurer will faithfully
5-4 account for all money that comes into the custody of the treasurer.
5-5 The board shall require a bond under this section of at least
5-6 $100,000 if the district has authorized the issuance of bonds. If
5-7 the district has not authorized the issuance of bonds, the board
5-8 shall require a bond of at least $5,000.
5-9 SECTION 2.08. CONFLICT OF INTEREST: CONTRACT. A director
5-10 who is financially interested in a contract that is proposed to be
5-11 executed by the board for the purchase of property or services or
5-12 for the construction of facilities shall disclose the director's
5-13 interest to the board and may not vote on the acceptance of the
5-14 contract.
5-15 SECTION 2.09. DISTRICT EMPLOYEES. The board is authorized
5-16 to employ a general manager and consulting engineers, financial
5-17 consultants, attorneys, and auditors. The general manager shall be
5-18 responsible for:
5-19 (1) administering the board's directives;
5-20 (2) maintaining district records, including minutes of
5-21 board meetings;
5-22 (3) coordinating with federal, state, and local
5-23 agencies;
5-24 (4) developing plans and programs for the board's
5-25 approval;
5-26 (5) hiring, supervising, training, and discharging the
6-1 district's employees;
6-2 (6) obtaining technical, scientific, legal, fiscal, or
6-3 other professional services for the district; and
6-4 (7) performing other duties as assigned by the board.
6-5 SECTION 2.10. EMPLOYEE BONDS. (a) The general manager and
6-6 each employee of the district who is charged with the collection,
6-7 custody, or payment of district money shall execute a fidelity bond
6-8 in an amount determined by the board and in a form and with a
6-9 surety approved by the board.
6-10 (b) The district shall pay the premium on a bond under this
6-11 section.
6-12 SECTION 2.11. PRINCIPAL OFFICE. (a) If the district has
6-13 not issued bonds, the district may maintain its principal office in
6-14 Fort Bend County or Travis County. If the district maintains its
6-15 principal office in Travis County, the district shall maintain
6-16 duplicates of district records in Fort Bend County and make the
6-17 duplicate records available for inspection during regular business
6-18 hours.
6-19 (b) If the district has issued bonds, the district shall
6-20 maintain its principal office in Fort Bend County.
6-21 SECTION 2.12. RECORDS. (a) The district shall keep at its
6-22 principal office:
6-23 (1) a complete and accurate account of the district's
6-24 business transactions in accordance with generally accepted
6-25 accounting methods;
6-26 (2) a complete and accurate record of the minutes of
7-1 board meetings; and
7-2 (3) contracts, documents, and other records of the
7-3 district.
7-4 (b) The district shall permit reasonable public inspection
7-5 of the district's records during regular business hours.
7-6 SECTION 2.13. SUIT. The district may sue and be sued in the
7-7 district's corporate name.
7-8 ARTICLE 3. AUTHORITY OF DISTRICT
7-9 SECTION 3.01. POWERS AND DUTIES. (a) The district shall:
7-10 (1) administer and enforce the provisions of this Act;
7-11 (2) use the facilities and powers of the district to
7-12 accomplish the purposes of this Act;
7-13 (3) construct and maintain levees and other
7-14 improvements on, along, and contiguous to rivers, creeks and
7-15 streams;
7-16 (4) reclaim lands from overflow from streams;
7-17 (5) control and distribute the waters of rivers and
7-18 streams by straightening and otherwise improving them; and
7-19 (6) provide for the proper drainage and improvement of
7-20 the reclaimed land.
7-21 (b) Except as provided by this Act, the district has the
7-22 powers, rights, and privileges necessary and convenient for
7-23 accomplishing the purposes of this Act as provided by general law
7-24 relating to a levee improvement district created under Section 59,
7-25 Article XVI, Texas Constitution.
7-26 (c) The district may enter into all necessary and proper
8-1 contracts and employ all persons and means necessary to purchase,
8-2 acquire, build, construct, carry out, maintain, protect and in case
8-3 of necessity, add to and rebuild all works and improvements within
8-4 the district necessary or proper to fully accomplish a plan
8-5 lawfully adopted for the district.
8-6 (c) The powers granted to the district by this Act are
8-7 cumulative of powers granted by other law.
8-8 SECTION 3.02. DISTRICT RULES. (a) The district may adopt
8-9 and enforce rules reasonably required to implement this Act,
8-10 including rules governing procedure and practice before the board.
8-11 (b) The district shall keep a record of the district's rules
8-12 and provide a copy of the rules to a person on written request.
8-13 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. In addition
8-14 to the powers provided by Section 49.221, Water Code, the district
8-15 may enter public or private property located within the district
8-16 for purposes of inspecting and investigating conditions of the
8-17 property relating to the district's authorized purposes. The
8-18 district shall conduct an inspection or investigation in accordance
8-19 with provisions and restrictions applicable to the Texas Natural
8-20 Resource Conservation Commission.
8-21 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may:
8-22 (1) hold hearings, receive evidence from a party in
8-23 interest who appears before the board, compel the attendance of a
8-24 witness, and make findings of fact and determinations relating to
8-25 the administration of this Act or an order or rule of the board;
8-26 and
9-1 (2) delegate the authority to take testimony and
9-2 administer oaths in a hearing held by the district to a member of
9-3 the board or an employee of the district.
9-4 (b) An order of the board must:
9-5 (1) be in the name of the district; and
9-6 (2) be attested to by the appropriate members of the
9-7 board under the district's rules.
9-8 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who
9-9 violates a rule, permit, or order of the district is subject to a
9-10 civil penalty of not less than $50 and not more than $1,000 for
9-11 each violation or each day of a continuing violation.
9-12 (b) The district may sue to enjoin a threatened or present
9-13 activity or to recover the penalty in a district court in the
9-14 county in which the violation occurred. A penalty recovered under
9-15 this subsection shall be paid to the district.
9-16 SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.
9-17 (a) The district is authorized to contract with a person, firm,
9-18 corporation, municipal corporation, or public agency, the state,
9-19 the United States, or any agency of the state or the United States
9-20 to accomplish the purposes for which it is created.
9-21 SECTION 3.07. FACILITIES. (a) In addition to the authority
9-22 provided by Sections 49.218 and 54.201, Water Code, the district
9-23 may purchase, construct, acquire, own, lease, operate, maintain,
9-24 repair, improve, and extend, at any location within or outside of
9-25 the district, land, or an interest in land, a work, an improvement,
9-26 a facility, a plant, equipment, or an appliance that is incident,
10-1 helpful, or necessary to accomplish the purposes of the district.
10-2 (b) The district may:
10-3 (1) enter into a contract with a person, firm,
10-4 corporation, municipality, entity created under Section 59, Article
10-5 XVI, Texas Constitution, municipal corporation, public agency, or
10-6 other political subdivision of the state; and
10-7 (2) perform any other act consistent with the powers
10-8 of the district and necessary to fulfill the purposes of this Act.
10-9 SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. The
10-10 district may use a public roadway, street, alley, or easement in
10-11 Fort Bend County to accomplish the purposes of the district. The
10-12 district is not required to obtain a franchise or other
10-13 governmental agreement to use a roadway, street, alley, or easement
10-14 that is owned by the city if, before using the roadway, street,
10-15 alley, or easement, the district obtains written consent of the
10-16 city to the particular use. The district shall pay a fee to a city
10-17 for the use of the roadway, street, alley, or easement that equals
10-18 the lesser of the district's pro rata share, based on actual area
10-19 encumbered, of the fair market value or the initial purchase price
10-20 for the roadway, street, alley, or easement.
10-21 SECTION 3.09. RELOCATION OF FACILITIES. The district may
10-22 relocate, raise, reroute, or change the grade of, or alter the
10-23 construction of, a highway, railroad, electric transmission line,
10-24 pipeline, canal, or drainage ditch, if deemed necessary by the
10-25 board. The district shall pay for any relocation, raising,
10-26 rerouting, changing, or altering under this section, unless
11-1 otherwise agreed in writing by the interested parties. The cost of
11-2 replacement is limited to the comparable replacement of any
11-3 replaced facility, less the replaced facility's net salvage value.
11-4 ARTICLE 4. GENERAL FISCAL PROVISIONS
11-5 SECTION 4.01. DISBURSEMENT OF MONEY. The district may
11-6 disburse money only by check, draft, order, or other instrument
11-7 signed by a person authorized in the bylaws of the district or by
11-8 board resolution.
11-9 SECTION 4.02. FEES AND CHARGES. The district may establish
11-10 fees and charges not to exceed the amounts necessary to enable the
11-11 district to fulfill the obligations of the district as provided by
11-12 this Act.
11-13 SECTION 4.03. LOANS AND GRANTS. (a) The district may apply
11-14 for and receive a loan or grant from the state or the United
11-15 States, or any agency of the state or the United States, or from a
11-16 private entity, for purposes of exercising the powers of the
11-17 district.
11-18 (b) The district may not enter into an agreement under this
11-19 section that violates state or federal law.
11-20 SECTION 4.04. FISCAL YEAR. The board shall establish a
11-21 fiscal year for the district.
11-22 SECTION 4.05. DEPOSITORY BANKS. (a) The board, as provided
11-23 by this section, shall designate at least one bank to serve as a
11-24 depository for the funds of the district. Subject to Section
11-25 49.156, Water Code, the funds of the district shall be deposited in
11-26 a depository bank designated under this subsection.
12-1 (b) Before designating a depository bank, the board shall
12-2 publish notice at least once in a newspaper of general circulation
12-3 in the district to solicit applications from banks interested in
12-4 serving as a depository for the district. The notice shall include
12-5 the time and place of the board meeting at which the board proposes
12-6 to designate a depository bank. The board shall prescribe the term
12-7 of service of a depository bank designated under Subsection (a) of
12-8 this section.
12-9 (c) The board shall review an application received under
12-10 Subsection (b) of this section, including examining the management
12-11 and condition of each bank submitting an application. In reviewing
12-12 an application under this subsection, the board may consider:
12-13 (1) the terms and conditions proposed by a bank for
12-14 handling the district's money;
12-15 (2) the management of the bank; and
12-16 (3) the ability of the bank to handle the district's
12-17 money.
12-18 (d) A bank is not disqualified from being a depository under
12-19 this section because an officer or a director of the bank is a
12-20 member of the board.
12-21 (e) An officer or a director of a bank is not disqualified
12-22 from being a member of the board.
12-23 (f) If the board does not receive an application under this
12-24 section, the board may designate a bank as depository on terms that
12-25 the board finds proper.
12-26 ARTICLE 5. BOND AND TAX PROVISIONS
13-1 SECTION 5.01. TAXES; REVENUE BONDS. (a) For purposes of
13-2 exercising the authority of the district as provided by this Act,
13-3 the district may issue bonds or other obligations that are:
13-4 (1) secured by ad valorem taxes;
13-5 (2) secured by a pledge of all or part of the revenues
13-6 accruing to the district, including revenues received from the sale
13-7 of water or other products, the rendition of service, tolls,
13-8 charges, and any other source of revenue, other than ad valorem
13-9 taxes; and
13-10 (3) secured by both a pledge of all or part of the
13-11 revenues described by Subdivision (2) of this subsection and ad
13-12 valorem taxes.
13-13 (b) An obligation issued by the district shall be authorized
13-14 by resolution of the board, issued in the name of the district,
13-15 signed by the president or vice president, attested to by the
13-16 secretary, and bear the seal of the district. The signatures of
13-17 the president or vice president and the secretary may be printed or
13-18 lithographed on the obligation. The seal of the district may be
13-19 impressed, printed, or lithographed on the obligation. An
13-20 obligation issued by the district:
13-21 (1) shall be in a form prescribed by the board;
13-22 (2) may be in any denomination;
13-23 (3) shall mature serially or otherwise not later than
13-24 50 years from the date of issuance;
13-25 (4) may bear any interest rate;
13-26 (5) may be sold at a price and under terms determined
14-1 by the board to be the most advantageous available;
14-2 (6) may, in the discretion of the board, be made
14-3 callable before maturity at times and prices as provided in the
14-4 obligation;
14-5 (7) may be made registrable as to principal or
14-6 principal and interest; and
14-7 (8) may be secured by an indenture of trust with a
14-8 corporate trustee.
14-9 (c) An obligation under this section may be issued in more
14-10 than one series as required to carry out the purposes of this Act.
14-11 A pledge of revenue may reserve the right to issue additional
14-12 obligations under conditions specified on the pledge. An
14-13 additional obligation is on a parity with or subordinate to the
14-14 original obligation.
14-15 (d) The district is an "issuer" as defined by Section 1,
14-16 Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
14-17 (Article 717q, Vernon's Texas Civil Statutes).
14-18 (e) A board resolution authorizing an obligation or a trust
14-19 indenture under this section may include additional terms to
14-20 provide for a corporate trustee or receiver to take possession of
14-21 facilities of the district in the event of default by the district
14-22 relating to the obligation or trust indenture. The additional
14-23 terms, if any, constitute a contract between the district and the
14-24 owner of the obligation.
14-25 (f) The district may not issue bonds that are secured by or
14-26 otherwise encumber permanent school fund land located within the
15-1 district.
15-2 SECTION 5.02. BOND ANTICIPATION NOTES. The district may
15-3 issue bond anticipation notes for purposes of exercising the powers
15-4 of the district. Bond anticipation notes may be secured by a
15-5 pledge of all or part of the revenues of the district. The
15-6 district may authorize the issuance of bonds to pay the principal
15-7 of and interest on bond anticipation notes issued under this
15-8 section. Bond anticipation notes shall be secured by a pledge of
15-9 all or part of the revenues of the district and may be issued on a
15-10 parity with or subordinate to outstanding bonds of the issuer. If
15-11 the resolution or trust agreement authorizing the issuance of bond
15-12 anticipation notes contains a covenant that the notes are payable
15-13 from the proceeds of subsequently issued bonds, the district is not
15-14 required to demonstrate that the revenues that may be pledged to
15-15 the notes are sufficient to pay the principal of and interest on
15-16 the notes for purposes of receiving approval of the attorney
15-17 general or registration by the comptroller.
15-18 SECTION 5.03. REFUNDING BONDS. (a) The district may issue
15-19 refunding bonds to refund outstanding bonds and interest as
15-20 authorized by this Act.
15-21 (b) Refunding bonds may:
15-22 (1) be issued to refund one or more series of
15-23 outstanding bonds;
15-24 (2) combine the pledges for the outstanding bonds for
15-25 the security of the refunding bonds; or
15-26 (3) be secured by additional revenues.
16-1 (c) Refunding bonds may be issued without holding an
16-2 election to authorize the issuance of the bonds. The provisions of
16-3 this Act relating to the issuance of other bonds by the district,
16-4 security for the bonds, approval by the attorney general, and
16-5 remedies of the holders of the bonds apply to refunding bonds.
16-6 (d) Refunding bonds shall be registered by the comptroller
16-7 on surrender and cancellation of the bonds to be refunded or, if
16-8 the resolution authorizing the issuance of refunding bonds provides
16-9 that the bonds shall be sold and the proceeds deposited in the bank
16-10 where the bonds to be refunded are payable, the refunding bonds may
16-11 be issued in an amount sufficient to pay the principal and interest
16-12 of the bonds to be refunded to their option or maturity date. The
16-13 comptroller shall register the refunding bonds without concurrent
16-14 surrender and cancellation of the bonds to be refunded.
16-15 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. District
16-16 bond review and approval is governed by Subchapter F, Chapter 49,
16-17 Water Code.
16-18 SECTION 5.05. BONDS ARE AUTHORIZED INVESTMENTS. All bonds
16-19 and notes of the district are legal and authorized investments for
16-20 banks, savings banks, trust companies, savings and loan
16-21 associations, insurance companies, fiduciaries, trustees, and
16-22 guardians and for the sinking funds of municipalities, counties,
16-23 school districts, or other political corporations or subdivisions
16-24 of the state. Bonds and notes of the district are eligible to
16-25 secure the deposit of any and all public funds of the state and any
16-26 and all public funds of municipalities, counties, school districts,
17-1 or other political corporations or subdivisions of the state.
17-2 Bonds and notes of the district are lawful and sufficient security
17-3 for the deposits to the extent of their value.
17-4 SECTION 5.06. TAXATION. (a) Except for land owned by the
17-5 state, the board may levy and collect ad valorem taxes on land
17-6 within the district for maintenance, improvements, and
17-7 administration relating to the district in amounts approved by the
17-8 qualified voters of the district in an election held for that
17-9 purpose.
17-10 (b) A maintenance tax or an administration tax shall not
17-11 exceed the maximum approved rate and an approved rate shall remain
17-12 in effect unless a different rate is approved by the qualified
17-13 voters in a subsequent election.
17-14 SECTION 5.07. PROPERTY: RENDITION; VALUATION; LEVY.
17-15 (a) Except as provided by this section, the rendition and
17-16 assessment of property for taxation, the equalization of values,
17-17 and the collection of taxes for the benefit of the district shall
17-18 be conducted in accordance with the law applicable to counties to
17-19 the extent possible.
17-20 (b) The tax assessor-collector of each county shall act as
17-21 the tax assessor-collector for the district for district property
17-22 located in the county. The tax assessor-collector in each county
17-23 shall place on the county tax rolls a column or columns as
17-24 necessary to show the taxes, including the amount of taxes, levied
17-25 by the district, based on the value of the property as approved and
17-26 equalized. The fee charged by each county tax assessor-collector
18-1 for assessing and collecting taxes is one percent of the taxes
18-2 collected and shall be paid and disbursed by the district in the
18-3 same manner as other fees of office.
18-4 (c) The mechanisms available to enforce the collection of
18-5 state and county taxes may be used by the district to enforce the
18-6 collection of taxes levied by the district. The district is
18-7 entitled to require the officers of each county to enforce and
18-8 collect the taxes due to the district in that county as provided
18-9 for the enforcement of state and county taxes.
18-10 (d) Taxes assessed and levied for the benefit of the
18-11 district shall be payable and shall become delinquent at the same
18-12 time, in the same manner, and subject to the same discount for
18-13 advance payment as taxes levied by and for the benefit of the
18-14 county in which the property is taxable. The fee for collecting
18-15 delinquent taxes through prosecution of suit is 15 percent of the
18-16 taxes collected by the suit, to be paid and disbursed by the
18-17 district in the same manner as other fees of office.
18-18 (e) At the same time that the commissioners court levies
18-19 county taxes, the board shall levy a tax on all taxable property in
18-20 the district that is subject to taxation. The board shall
18-21 immediately certify the tax rate to the tax assessor-collector of
18-22 each county that contains territory within the district.
18-23 ARTICLE 6. ADDITION OF LAND TO DISTRICT
18-24 SECTION 6.01. ANNEXATION. Notwithstanding any other law,
18-25 additional territory may be added to the district as provided by
18-26 Sections 6.02, 6.03, and 6.04 of this Act.
19-1 SECTION 6.02. PETITION. (a) An owner or owners of land,
19-2 whether or not contiguous to the territory of the district, may
19-3 file with the board a petition requesting that the land described
19-4 in the petition by metes and bounds or by lot and block number, if
19-5 there is a recorded plat of the area, be included in the district.
19-6 (b) A petition under Subsection (a) of this section shall be
19-7 signed and executed in the manner provided by law for the
19-8 conveyance of real estate.
19-9 (c) The board shall hear and consider a petition received
19-10 under Subsection (a) of this section and may add to the district
19-11 the land described in the petition if:
19-12 (1) the board determines that adding the land to the
19-13 district is advantageous to the district; and
19-14 (2) the water system and other improvements of the
19-15 district are sufficient or will be sufficient to provide service to
19-16 the land added to the district without injuring the land in the
19-17 district before the petition is granted.
19-18 SECTION 6.03. NOTICE AND HEARING. (a) A petition
19-19 requesting that the district annex a defined area shall be filed
19-20 with the secretary of the board and shall be signed by:
19-21 (1) a majority in value of the owners of land in the
19-22 defined area, as shown by the tax rolls of the county or counties
19-23 in which the defined area is located, if the number of landowners
19-24 in the defined area is 50 or less; or
19-25 (2) 50 landowners if the number of landowners in the
19-26 defined area is more than 50.
20-1 (b) The board shall issue an order setting a time and place
20-2 to hear a petition filed under Subsection (a) of this section. The
20-3 hearing shall be held not earlier than the 15th day after the date
20-4 on which the board issues the order.
20-5 (c) The secretary shall issue a notice providing the time
20-6 and place of the hearing set under Subsection (b) of this section
20-7 and describing the area proposed to be annexed. Notice of the
20-8 hearing shall be given by:
20-9 (1) posting copies of the notice in three public
20-10 places in the district and in one public place in the area proposed
20-11 to be annexed for at least seven days before the date of the
20-12 hearing; and
20-13 (2) publishing a copy of the notice in a newspaper of
20-14 general circulation in the county or counties in which the area
20-15 proposed to be annexed is located at least seven days before the
20-16 date of the hearing.
20-17 (d) If the board finds that the proposed annexation is
20-18 feasible and practicable and would benefit the district and the
20-19 area proposed to be added to the district, the board may by order
20-20 receive all or a part of the proposed area as an addition to and
20-21 part of the district. An order issued by the board under this
20-22 subsection shall describe the area added to the district and be
20-23 entered in the minutes.
20-24 SECTION 6.04. ANNEXATION ORDER. (a) A copy of the order
20-25 adding land to the district shall be signed by a majority of the
20-26 members of the board, attested to by the secretary of the board,
21-1 and filed and recorded in the deed records of the county or
21-2 counties in which the district is located.
21-3 (b) On the date that the order is recorded as required by
21-4 Subsection (a) of this section, the area described in the order is
21-5 included in the territory of the district.
21-6 ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT
21-7 SECTION 7.01. PETITION. (a) Notwithstanding any other law,
21-8 the board may, if there is no outstanding board order relating to
21-9 an election for the authorization of bonds payable in whole or in
21-10 part from taxes and the district does not have outstanding
21-11 indebtedness secured by taxes or net revenues of the district,
21-12 order a hearing to be held to exclude land from the district on
21-13 petition of a landowner or on motion of the board.
21-14 (b) A petition to exclude land from the district must
21-15 specifically describe the land to be excluded by metes and bounds
21-16 or by reference to a plat recorded in the plat records of the
21-17 county or counties in which the land is located. The petition must
21-18 be signed by at least 10 percent of the owners of land in the area
21-19 to be excluded or, if the number of owners of land is more than 50,
21-20 by at least five of the owners of land. The petition must be filed
21-21 with the district before the seventh day preceding the date the
21-22 hearing is held to consider the petition. The petition must
21-23 clearly state the grounds supporting the exclusion of the land from
21-24 the district. The board may consider only the grounds stated in
21-25 the petition.
21-26 SECTION 7.02. NOTICE AND HEARING. (a) The board shall hold
22-1 a hearing on petition of a landowner to exclude land from the
22-2 district.
22-3 (b) Notice of hearing under this section shall be published
22-4 by the board once a week for two consecutive weeks in one or more
22-5 newspapers of general circulation in the district. The first
22-6 notice shall be published not earlier than the 40th day or later
22-7 than the 14th day preceding the date of the hearing.
22-8 (c) The board may not exclude land from the district unless
22-9 the board determines that:
22-10 (1) the district has no obligations that will be
22-11 impaired by the exclusion of the land;
22-12 (2) the district will incur no obligations as a result
22-13 of the exclusion; and
22-14 (3) the exclusion is in the best interests of the
22-15 district.
22-16 (d) The board, after considering all engineering data and
22-17 other evidence presented at the hearing and making the
22-18 determinations required by Subsection (c) of this section, shall
22-19 enter an order excluding the land from the district and redefining
22-20 the boundaries of the district as appropriate. If land proposed to
22-21 be excluded contains water or wastewater customers of the district,
22-22 the customers remain customers of the district. Owners of lots
22-23 within the land proposed to be excluded in which water and
22-24 wastewater facilities have been extended retain the right to
22-25 connect to the district's water and wastewater system and become
22-26 district customers.
23-1 SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND.
23-2 (a) Except as provided by Subsection (c) of this section, an order
23-3 of the board excluding land from the district on petition signed by
23-4 the owner or owners of land that is proposed to be excluded takes
23-5 effect on the date on which the board enters the order.
23-6 (b) Except as provided by Subsection (c) of this section, an
23-7 order excluding land from the district on petition signed by less
23-8 than all the owners of land that is proposed to be excluded takes
23-9 effect:
23-10 (1) on the day immediately following the date on which
23-11 a petition under Section 7.04 of this Act must be received by the
23-12 board if the district does not receive a petition under that
23-13 section; or
23-14 (2) on the day immediately following the date on which
23-15 the election returns are canvassed if the exclusion is ratified at
23-16 an election under Section 7.04 of this Act.
23-17 (c) An order excluding land from the district under this
23-18 section may not take effect unless all taxes levied and assessed by
23-19 the district within the land that is proposed to be excluded are
23-20 paid in full.
23-21 SECTION 7.04. PETITION FOR RATIFICATION ELECTION. (a) If
23-22 the board issues an order excluding land on petition signed by less
23-23 than all the owners of land in the area proposed to be excluded,
23-24 the board shall publish a notice that describes the excluded land
23-25 and states that the exclusion will become final unless the board
23-26 receives, not later than the 25th day after the date on which the
24-1 board issues the order, a petition requesting a ratification
24-2 election. A petition under this subsection must be signed by at
24-3 least 10 percent of the qualified voters residing in the area that
24-4 is proposed to be excluded from the district.
24-5 (b) If the board receives a petition under Subsection (a) of
24-6 this section, the order excluding land from the district is not
24-7 effective unless the exclusion is approved by a majority vote of
24-8 the residents of the district at a ratification election held for
24-9 that purpose.
24-10 (c) A ratification election, including notice of the
24-11 election and the qualifications of the voters, shall be conducted
24-12 as provided by Subchapter J, Chapter 49, Water Code.
24-13 ARTICLE 8. MISCELLANEOUS PROVISIONS
24-14 SECTION 8.01. TAX EXEMPTION. The purposes stated in this
24-15 Act are for the benefit of the people of the state, including the
24-16 improvement of property and industry. The district, in carrying
24-17 out the purposes of this Act, is performing an essential public
24-18 function under the constitution and is not required to pay a tax or
24-19 assessment on a project of the district or on the bonds or notes
24-20 issued by the district under this Act, including the transfer of,
24-21 the income from, and the profits made on the sale of issued bonds
24-22 and notes.
24-23 SECTION 8.02. INITIAL ELECTION. Notwithstanding Section
24-24 2.04 of this Act, the district shall hold its first election for
24-25 permanent directors on the first Saturday in May 2002.
24-26 SECTION 8.03. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
25-1 (a) The proper and legal notice of the intention to introduce this
25-2 Act, setting forth the general substance of this Act, has been
25-3 published as provided by law, and the notice and a copy of this Act
25-4 have been furnished to all persons, agencies, officials, or
25-5 entities to which they are required to be furnished by the
25-6 constitution and other laws of this state, including the governor,
25-7 who has submitted the notice and Act to the Texas Natural Resource
25-8 Conservation Commission.
25-9 (b) The Texas Natural Resource Conservation Commission has
25-10 filed its recommendations relating to this Act with the governor,
25-11 lieutenant governor, and speaker of the house of representatives
25-12 within the required time.
25-13 (c) All requirements of the constitution and laws of this
25-14 state and the rules and procedures of the legislature with respect
25-15 to the notice, introduction, and passage of this Act are fulfilled
25-16 and accomplished.
25-17 SECTION 8.04. SEVERABILITY. If any word, phrase, clause,
25-18 sentence, paragraph, section, or other part of this Act or the
25-19 application of this Act to any person or circumstance is ever held
25-20 to be invalid or unconstitutional by a court of competent
25-21 jurisdiction in this state, the remainder of the Act and the
25-22 application of that word, phrase, clause, sentence, paragraph,
25-23 section, or other part of this Act to other persons or
25-24 circumstances are not affected by that holding. To the extent of a
25-25 conflict between a provision of this Act and any other law or
25-26 statute, this Act controls.
26-1 SECTION 8.05. EMERGENCY. The importance of this legislation
26-2 and the crowded condition of the calendars in both houses create an
26-3 emergency and an imperative public necessity that the
26-4 constitutional rule requiring bills to be read on three several
26-5 days in each house be suspended, and this rule is hereby suspended,
26-6 and that this Act take effect and be in force from and after its
26-7 passage, and it is so enacted.