1-1 By: Howard (Senate Sponsor - Brown) H.B. No. 3194 1-2 (In the Senate - Received from the House May 7, 2001; 1-3 May 7, 2001, read first time and referred to Committee on Natural 1-4 Resources; May 11, 2001, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 6, Nays 0; 1-6 May 11, 2001, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 3194 By: Brown 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation, administration, powers, duties, 1-11 operation, and financing of the Fort Bend County Levee Improvement 1-12 District Number 16 and to the authorization of bonds and the levy 1-13 of taxes; providing civil penalties. 1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-15 ARTICLE 1. GENERAL PROVISIONS 1-16 SECTION 1.01. CREATION. (a) A levee improvement district, 1-17 to be known as Fort Bend County Levee Improvement District Number 1-18 16, is created. The district is a governmental agency and a body 1-19 politic and corporate. 1-20 (b) The district is created under and is essential to 1-21 accomplish the purposes of Section 59, Article XVI, Texas 1-22 Constitution. 1-23 (c) The district has the powers of a levee improvement 1-24 district as provided by Chapter 57, Water Code, and is governed by 1-25 Chapters 49 and 57, Water Code, unless otherwise provided by this 1-26 Act. 1-27 SECTION 1.02. DEFINITIONS. In this Act: 1-28 (1) "Board" means the board of directors of the Fort 1-29 Bend County Levee Improvement District Number 16. 1-30 (2) "Commissioners court" means the Fort Bend County 1-31 Commissioners Court. 1-32 (3) "County" means Fort Bend County. 1-33 (4) "District" means the Fort Bend County Levee 1-34 Improvement District Number 16. 1-35 SECTION 1.03. BOUNDARIES. (a) The district includes the 1-36 territory contained within the following area: 1-37 Being 2316.899 acres of land located in the M.M. Battle 1-38 League, Abstract 9 and the Alexander Hodges League Abstract 32, 1-39 Fort Bend County, Texas, more particularly being all of those 1-40 certain tracts called 389.137, 282.759 and 960.718 acres described 1-41 as Exhibit A-6, Exhibit A-7 and Exhibit A-9, respectively, and a 1-42 portion of that certain tract called 1093.65 acres, described as 1-43 Exhibit A-8, all conveyed to The State of Texas, State Department 1-44 of Highways and Public Transportation by an instrument of record in 1-45 Volume 2329, Page 50 of the Official Records of Fort Bend County, 1-46 Texas (F.B.C.O.R.), said 2321.591 acres being more particularly 1-47 described in two (2) parts by metes and bounds as follows (all 1-48 bearings based on the Texas State Plane Coordinate System, South 1-49 Central Zone); 1-50 PART 1 1-51 1651.115 ACRES 1-52 BEGINNING at the intersection of the east line of the 1-53 aforementioned 389.137 acres described as Exhibit A-6 and the 1-54 proposed southerly right-of-way line of Texas State Highway No. 6 1-55 (S.H. 6) (width varies); 1-56 Thence, South 01 50'42" East, 7190.30 feet to a point for 1-57 corner in the northerly right-of-way line of U.S. 59 (width 1-58 varies); 1-59 Thence, with said northerly right-of-way line of U.S. 59 the 1-60 following eighteen (18) courses: 1-61 1) South 52 31'20" West, 1040.87 feet to a point for corner; 1-62 2) South 48 11'45" West, 187.66 feet to a point for corner; 1-63 3) South 52 31'25" West, 848.96 feet to a point for corner; 1-64 4) South 74 54'21" West, 252.91 feet to a point for corner; 2-1 5) South 86 11'04" West, 495.72 feet to a point for corner; 2-2 6) North 49 03'57" West, 35.29 feet to a point for corner; 2-3 7) South 86 00'42" West, 160.00 feet to a point for corner; 2-4 8) South 28 16'44" West, 33.59 feet to a point for corner, 2-5 the beginning of a curve whose center bears South 2-6 11 45'03" East; 2-7 9) 605.23 feet along the arc of a curve to the left having a 2-8 radius of 423.00 feet, a central angle of 81 58'45" and a 2-9 chord which bears South 37 15'34" West, 554.91 feet to a 2-10 point for corner at the end of said curve; 2-11 10) South 03 40'10" East, 10.57 feet to a point for corner, 2-12 the beginning of a curve whose center bears South 2-13 86 11'10" West; 2-14 11) 521.28 feet along the arc of a curve to the right having 2-15 a radius of 875.69 feet, a central angle of 34 06'26" 2-16 and a chord which bears South 13 14'23" West, 513.62 2-17 feet to a point for corner at the end of said curve; 2-18 12) South 52 29'44" West, 925.05 feet to a point for corner; 2-19 13) South 52 29'36" West, 435.64 feet to a point for corner; 2-20 14) South 57 03'57" West, 199.79 feet to a point for corner; 2-21 15) South 52 30'48" West, 1944.36 feet to a point for 2-22 corner; 2-23 16) South 50 57'50" West, 904.84 feet to a point for corner; 2-24 17) South 54 07'20" West, 1094.20 feet to a point for 2-25 corner; 2-26 18) South 52 33'57" West, 329.02 feet to a point for corner; 2-27 Thence, North 03 12'03" West, 3818.53 feet to a point for 2-28 corner; 2-29 Thence, North 86 36'48" East, 1806.43 feet to a point for 2-30 corner; 2-31 Thence North 03 32'23" West, 9500.81 feet to a point for 2-32 corner in the southerly right-of-way line of U.S. Highway No. 90-A; 2-33 Thence, with said southerly right-of-way line of U.S. Highway 2-34 No. 90-A the following eight (8) courses: 2-35 1) North 65 39'06" East, 256.30 feet to a point for corner, 2-36 the beginning of a curve whose center bears North 2-37 24 31'32" West; 2-38 2) 680.54 feet along the arc of a curve to the left having a 2-39 radius of 6043.20 feet, a central angle of 06 27'08" and 2-40 a chord which bears North 62 24'54" East, 680.18 feet to 2-41 a point for corner; 2-42 3) North 59 11'59" East, 1248.35 feet to a point for corner; 2-43 4) North 68 00'20" East, 590.07 feet to a point for corner; 2-44 5) North 74 12'26" East, 439.68 feet to a point for corner; 2-45 6) North 80 01'35" East, 189.98 feet to a point for corner; 2-46 7) North 86 16'10" East, 499.86 feet to a point for corner; 2-47 8) South 84 07'12" East, 296.42 feet to a point for corner, 2-48 the beginning of a curve whose center bears North 2-49 45 54'16" East, said point being in the aforementioned 2-50 proposed southerly right-of-way line of S.H. 6; 2-51 Thence, with said proposed southerly right-of-way line of 2-52 S.H. 6 the following eleven (11) courses; 2-53 1) 417.214 feet along the arc of a curve to the left having 2-54 a radius of 1954.86 feet, a central angle of 12 13'45" 2-55 and a chord which bears South 50 12'36" East, 416.45 feet 2-56 to a point for corner at the end of said curve; 2-57 2) South 55 56'26" East, 752.00 feet to a point for corner, 2-58 the beginning of a curve whose center bears North 2-59 36 23'44" East; 2-60 3) 116.03 feet along the arc of a curve to the left having a 2-61 radius of 2844.79 feet, a central angle of 02 20'13" and 2-62 a chord which bears South 54 46'22" East, 116.02 feet to 2-63 a point for corner; 2-64 4) South 48 54'25" East, 174.14 feet to a point for corner; 2-65 5) South 52 44'28" East, 316.76 feet to a point for corner; 2-66 6) South 07 44'31" East, 31.13 feet to a point for corner; 2-67 7) South 62 33'17" East, 162.37 feet to a point for corner; 2-68 8) North 84 27'47" East, 27.26 feet to a point for corner, 2-69 the beginning of a curve whose center bears North 3-1 36 36'08" East; 3-2 9) 288.78 feet along the arc of a curve to the left having a 3-3 radius of 2897.80 feet, a central angle of 05 42'35" and 3-4 a chord which bears South 56 15'10" East, 288.66 feet to 3-5 a point for corner at the end of said curve; 3-6 10) South 59 06'29" East, 683.96 feet to a point for corner, 3-7 the beginning of a curve; 3-8 11) 185.98 fee along the arc of a tangent curve to the right 3-9 having a radius of 2844.79 feet, a central angle of 3-10 03 44'45" and a chord which bears South 57 14'05" East, 3-11 185.95 feet to the POINT OF BEGINNING and containing 3-12 1651.115 acres of land. 3-13 PART 2 3-14 670.476 ACRES 3-15 BEGINNING at the intersection of the east line of the 3-16 aforementioned 1093.65 acres described as Exhibit A-8 and the 3-17 southerly right-of-way line of aforementioned U.S. 59 from which 3-18 the southeast corner of the above described Part 1 bears North 3-19 01 53'45" West, 550.74 feet; 3-20 Thence, South 01 50'42" East, 3087.21 feet to a point for 3-21 corner; 3-22 Thence, North 87 11'58" East, 619.44 feet to a point for 3-23 corner; 3-24 Thence, South 01 55'19" East, 4421.32 feet to a point for 3-25 corner; 3-26 Thence, South 88 02'21" West, 300.99 feet to a point for 3-27 corner; 3-28 Thence, South 01 51'04" East, 976.57 feet to a point for 3-29 corner, the beginning of a curve whose center bears North 37 15'45" 3-30 East; 3-31 Thence, 1227.88 feet along the arc of a curve to the right 3-32 having a radius of 2891.80 feet, a central angle of 24 19'42" and a 3-33 chord which bears North 40 34'24" West, 1218.68 feet to a point for 3-34 corner at the end of said curve; 3-35 Thence, North 28 24'33" West, 378.96 feet to a point for 3-36 corner; 3-37 Thence, North 54 53'42" West, 516.66 feet to a point for 3-38 corner; 3-39 Thence, North 70 18'35" West, 1318.58 feet to a point for 3-40 corner; 3-41 Thence, North 78 25'45" West, 966.06 feet to a point for 3-42 corner; 3-43 Thence, South 89 02'49" West, 2421.07 feet to a point for 3-44 corner; 3-45 Thence, North 77 32'21" West, 496.91 feet to a point for 3-46 corner; 3-47 Thence, North 33 55'33" West, 888.23 feet to a point for 3-48 corner; 3-49 Thence, North 79 49'48" West, 442.63 feet to a point for 3-50 corner; 3-51 Thence, North 42 56'06" West, 75.28 feet to a point for 3-52 corner in the aforementioned southerly right-of-way line of U.S. 3-53 59; 3-54 Thence, with said southerly right-of-way line of U.S. 59 the 3-55 following sixteen (16) courses: 3-56 1) North 50 57'50" East, 1689.20 feet to a point for corner; 3-57 2) North 52 30'48" East, 1921.22 feet to a point for corner; 3-58 3) North 57 03'57" East, 199.96 feet to a point for corner; 3-59 4) North 52 29'36" East, 453.80 feet to a point for corner; 3-60 5) North 52 29'44" East, 400.00 feet to a point for corner; 3-61 6) North 76 03'27" East, 339.22 feet to a point for corner; 3-62 7) North 86 05'07" East, 374.89 feet to a point for corner; 3-63 8) South 49 10'00" East, 35.51 feet to a point for corner; 3-64 9) North 86 05'08" East, 150.00 feet to a point for corner; 3-65 10) North 40 50'00" East, 35.20 feet to a point for corner; 3-66 11) North 86 05'08" East, 31.60 feet to a point for corner, 3-67 the beginning of a curve; 3-68 12) 663.95 feet along the arc of a tangent curve to the left 3-69 having a radius of 423.00 feet, a central angle of 4-1 89 56'00" and a chord which bears North 41 07'08" East, 4-2 597.86 feet to a point for corner; 4-3 13) North 03 52'55" West, 10.00 feet to a point for corner, 4-4 the beginning of a curve whose center bears North 4-5 86 14'21" East; 4-6 14) 576.71 feet along the arc of a curve to the right having 4-7 a radius of 877.19 feet, a central angle of 37 40'10" 4-8 and a chord which bears North 15 04'26" East, 566.38 4-9 feet to a point for corner at the end of said curve; 4-10 15) North 52 31'23" East, 1291.14 feet to a point for 4-11 corner; 4-12 16) North 51 33'03" East, 886.94 feet to the POINT OF 4-13 BEGINNING and containing 670.476 acres of land. 4-14 Said Part 1 and Part 2 containing a total of 2321.591 acres 4-15 of land. 4-16 (b) A mistake in the patents or field notes or in copying 4-17 the patents or field notes in the legislative process does not 4-18 affect the organization, existence, or validity of the district, 4-19 the right of the district to issue bonds or refunding bonds or to 4-20 pay the principal of or interest on issued bonds, the right of the 4-21 district to levy and collect taxes, or the legality or operation of 4-22 the district or its governing board. 4-23 ARTICLE 2. ADMINISTRATIVE PROVISIONS 4-24 SECTION 2.01. BOARD. (a) The district is governed by a 4-25 board of three directors appointed by the commissioners court. 4-26 (b) Except for initial directors, directors serve staggered 4-27 four-year terms, with the terms of one or two directors expiring 4-28 September 1 of each even-numbered year. 4-29 (c) Initial directors shall serve until permanent directors 4-30 are appointed under Section 2.04 of this Act and qualified as 4-31 required by Subsection (e) of this section. 4-32 (d) A director serves until the director's successor has 4-33 qualified as required by Subsection (e) of this section. 4-34 (e) A director must qualify to serve as required by Section 4-35 49.055, Water Code. 4-36 SECTION 2.02. DIRECTOR ELIGIBILITY. (a) Except for initial 4-37 directors, a person must meet the requirements of Section 57.059, 4-38 Water Code, to be eligible to serve as a director. A person must 4-39 be at least 18 years of age and a resident of Fort Bend County or 4-40 Travis County to be eligible to serve as an initial director. 4-41 (b) Notwithstanding Section 49.052, Water Code, employment 4-42 with a state agency, other than the Texas Department of 4-43 Transportation, the General Land Office, or the School Land Board, 4-44 does not disqualify a person from serving as a director. 4-45 (c) An employee of the district may not serve as a director. 4-46 SECTION 2.03. APPOINTMENT OF INITIAL DIRECTORS. (a) The 4-47 School Land Board shall appoint three initial directors as soon as 4-48 practicable after the effective date of this Act. The School Land 4-49 Board shall appoint one initial director to serve a term expiring 4-50 September 1, 2002, and two initial directors to serve terms 4-51 expiring September 1, 2004. 4-52 (b) If a vacancy occurs, the School Land Board shall appoint 4-53 a successor to fill the vacancy and to serve the remainder of the 4-54 unexpired term. 4-55 SECTION 2.04. APPOINTMENT OF PERMANENT DIRECTORS. The 4-56 commissioners court shall appoint one permanent director to serve a 4-57 four-year term beginning September 1, 2002, and two permanent 4-58 directors to serve four-year terms beginning September 1, 2004. 4-59 Every subsequent second year, the commissioners court shall appoint 4-60 the appropriate number of directors. 4-61 SECTION 2.05. MEETINGS AND BOARD ACTIONS. (a) The board may 4-62 establish regular meetings to conduct the business of the district 4-63 and may hold special meetings if necessary as determined by the 4-64 board. The board shall hold a meeting under this section within 4-65 the district unless the board, by a majority vote at a public 4-66 meeting, decides to hold the meeting outside of the district. 4-67 (b) The board may adopt bylaws to govern the affairs of the 4-68 district. 4-69 SECTION 2.06. APPOINTMENT OF BOARD SECRETARY AND TREASURER. 5-1 The board shall appoint a secretary and treasurer. The secretary 5-2 and treasurer may be, but are not required to be, members of the 5-3 board. One person may serve as both secretary and treasurer. 5-4 SECTION 2.07. CONFLICT OF INTEREST: CONTRACT. A director 5-5 who is financially interested in a contract that is proposed to be 5-6 executed by the board for the purchase of property or services or 5-7 for the construction of facilities shall disclose the director's 5-8 interest to the board and may not vote on the acceptance of the 5-9 contract. 5-10 SECTION 2.08. DISTRICT EMPLOYEES. The board may employ a 5-11 general manager and consulting engineers, financial consultants, 5-12 attorneys, and auditors. The general manager shall be responsible 5-13 for: 5-14 (1) administering the board's directives; 5-15 (2) maintaining district records, including minutes of 5-16 board meetings; 5-17 (3) coordinating with federal, state, and local 5-18 agencies; 5-19 (4) developing plans and programs for the board's 5-20 approval; 5-21 (5) hiring, supervising, training, and discharging the 5-22 district's employees; 5-23 (6) obtaining technical, scientific, legal, fiscal, or 5-24 other professional services for the district; and 5-25 (7) performing other duties as assigned by the board. 5-26 SECTION 2.09. EMPLOYEE BONDS. (a) The general manager and 5-27 each employee of the district who is charged with the collection, 5-28 custody, or payment of district money shall execute a fidelity bond 5-29 in an amount determined by the board and in a form and with a 5-30 surety approved by the board. 5-31 (b) The district shall pay the premium on a bond under this 5-32 section. 5-33 SECTION 2.10. PRINCIPAL OFFICE. (a) If the district has 5-34 not issued bonds, the district may maintain its principal office in 5-35 Fort Bend County or Travis County. If the district maintains its 5-36 principal office in Travis County, the district shall maintain 5-37 duplicates of district records in Fort Bend County and make the 5-38 duplicate records available for inspection during regular business 5-39 hours. 5-40 (b) If the district has issued bonds, the district shall 5-41 maintain its principal office in Fort Bend County. 5-42 SECTION 2.11. RECORDS. (a) The district shall keep at its 5-43 principal office: 5-44 (1) a complete and accurate account of the district's 5-45 business transactions in accordance with generally accepted 5-46 accounting methods; 5-47 (2) a complete and accurate record of the minutes of 5-48 board meetings; and 5-49 (3) contracts, documents, and other records of the 5-50 district. 5-51 (b) The district shall permit reasonable public inspection 5-52 of the district's records during regular business hours. 5-53 ARTICLE 3. AUTHORITY OF DISTRICT 5-54 SECTION 3.01. POWERS AND DUTIES. The district shall 5-55 administer and enforce the provisions of this Act and use the 5-56 facilities and powers of the district to accomplish the purposes of 5-57 this Act and Chapter 57, Water Code. 5-58 SECTION 3.02. DISTRICT RULES. (a) The district may adopt 5-59 and enforce rules reasonably required to implement this Act, 5-60 including rules governing procedure and practice before the board. 5-61 (b) The district shall keep a record of the district's rules 5-62 and provide a copy of the rules to a person on written request. 5-63 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. In addition 5-64 to the powers provided by Section 49.221, Water Code, the district 5-65 may enter public or private property located within the district 5-66 for purposes of inspecting and investigating conditions of the 5-67 property relating to the district's authorized purposes. The 5-68 district shall conduct an inspection or investigation in accordance 5-69 with provisions and restrictions applicable to the Texas Natural 6-1 Resource Conservation Commission. 6-2 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may: 6-3 (1) hold hearings, receive evidence from a party in 6-4 interest who appears before the board, and make findings of fact 6-5 and determinations relating to the administration of this Act or an 6-6 order or rule of the board; and 6-7 (2) delegate the authority to take testimony and 6-8 administer oaths in a hearing held by the district to a member of 6-9 the board or an employee of the district. 6-10 (b) An order of the board must: 6-11 (1) be in the name of the district; and 6-12 (2) be attested to by the appropriate members of the 6-13 board under the district's rules. 6-14 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who 6-15 violates a rule, permit, or order of the district is subject to a 6-16 civil penalty in accordance with Chapter 49, Water Code. 6-17 (b) The district may sue to enjoin a threatened or present 6-18 activity or to recover the penalty in a district court in the 6-19 county in which the violation occurred. A penalty recovered under 6-20 this subsection shall be paid to the district. 6-21 SECTION 3.06. FACILITIES. In addition to the authority 6-22 provided by Section 49.218, Water Code, the district may purchase, 6-23 construct, acquire, own, lease, operate, maintain, repair, improve, 6-24 and extend, at any location within or outside of the district, 6-25 land, or an interest in land, a work, an improvement, a facility, a 6-26 plant, equipment, or an appliance that is incident, helpful, or 6-27 necessary to accomplish the purposes of the district. 6-28 SECTION 3.07. USE OF PUBLIC ROADWAYS, STREETS, ALLEYS, OR 6-29 EASEMENTS. The district may use a public roadway, street, alley, or 6-30 easement in Fort Bend County to accomplish the purposes of the 6-31 district. The district is not required to obtain a franchise or 6-32 other governmental agreement to use a roadway, street, alley, or 6-33 easement that is owned by a city if, before using the roadway, 6-34 street, alley, or easement, the district obtains written consent of 6-35 the city to the particular use. The district is not required to pay 6-36 a fee to a city for the use of the roadway, street, alley, or 6-37 easement. 6-38 SECTION 3.08. RELOCATION OF FACILITIES. The district may 6-39 relocate, raise, reroute, or change the grade of, or alter the 6-40 construction of, a highway, railroad, electric transmission line, 6-41 pipeline, canal, or drainage ditch, if considered necessary by the 6-42 board. The district shall pay for any relocation, raising, 6-43 rerouting, changing, or altering under this section, unless 6-44 otherwise agreed in writing by the interested parties. 6-45 ARTICLE 4. GENERAL FISCAL PROVISIONS 6-46 SECTION 4.01. DISBURSEMENT OF MONEY. The district may 6-47 disburse money only by check, draft, order, or other instrument 6-48 signed by a person authorized in the bylaws of the district or by 6-49 board resolution. 6-50 SECTION 4.02. LOANS AND GRANTS. The district may apply for 6-51 and receive a loan or grant from the state or the United States, or 6-52 any agency of the state or the United States, or from a private 6-53 entity, for purposes of exercising the powers of the district. 6-54 SECTION 4.03. DEPOSITORY BANKS. (a) A bank is not 6-55 disqualified from being a depository under this section because an 6-56 officer or a director of the bank is a member of the board. 6-57 (b) An officer or a director of a bank is not disqualified 6-58 from being a member of the board. 6-59 (c) Subject to Sections 49.156 and 49.157, Water Code, the 6-60 board may designate a bank as depository on terms that the board 6-61 finds proper. 6-62 ARTICLE 5. BOND AND TAX PROVISIONS 6-63 SECTION 5.01. TAXES; REVENUE BONDS. (a) For purposes of 6-64 exercising the authority of the district as provided by this Act, 6-65 the district may issue bonds or other obligations that are: 6-66 (1) secured by ad valorem taxes; 6-67 (2) secured by a pledge of all or part of the revenues 6-68 accruing to the district, other than ad valorem taxes; and 6-69 (3) secured by both a pledge of all or part of the 7-1 revenues described by Subdivision (2) of this subsection and ad 7-2 valorem taxes. 7-3 (b) An obligation issued by the district shall be authorized 7-4 by resolution of the board, issued in the name of the district, 7-5 signed by the president or vice president, attested to by the 7-6 secretary, and bear the seal of the district. The signatures of 7-7 the president or vice president and the secretary may be printed or 7-8 lithographed on the obligation. The seal of the district may be 7-9 impressed, printed, or lithographed on the obligation. An 7-10 obligation issued by the district: 7-11 (1) shall be in a form prescribed by the board; 7-12 (2) may be in any denomination; 7-13 (3) shall mature serially or otherwise not later than 7-14 50 years from the date of issuance; 7-15 (4) may bear any interest rate; 7-16 (5) may be sold at a price and under terms determined 7-17 by the board to be the most advantageous available; 7-18 (6) may, in the discretion of the board, be made 7-19 callable before maturity at times and prices as provided in the 7-20 obligation; 7-21 (7) may be made registrable as to principal or 7-22 principal and interest; and 7-23 (8) may be secured by an indenture of trust with a 7-24 corporate trustee. 7-25 (c) An obligation under this section may be issued in more 7-26 than one series as required to carry out the purposes of this Act. 7-27 A pledge of revenue may reserve the right to issue additional 7-28 obligations under conditions specified on the pledge. An 7-29 additional obligation is on a parity with or subordinate to the 7-30 original obligation. 7-31 (d) The district is an issuer for purposes of Chapter 1371, 7-32 Government Code. 7-33 (e) A board resolution authorizing an obligation or a trust 7-34 indenture under this section may include additional terms to 7-35 provide for a corporate trustee or receiver to take possession of 7-36 facilities of the district in the event of default by the district 7-37 relating to the obligation or trust indenture. The additional 7-38 terms, if any, constitute a contract between the district and the 7-39 owner of the obligation. 7-40 (f) The district may not issue bonds that are secured by or 7-41 otherwise encumber permanent school fund land located within the 7-42 district. 7-43 SECTION 5.02. BOND ANTICIPATION NOTES. The district may 7-44 issue bond anticipation notes for purposes of exercising the powers 7-45 of the district. Bond anticipation notes may be secured by a 7-46 pledge of all or part of the revenues of the district. The 7-47 district may authorize the issuance of bonds to pay the principal 7-48 of and interest on bond anticipation notes issued under this 7-49 section. Bond anticipation notes shall be secured by a pledge of 7-50 all or part of the revenues of the district and may be issued on a 7-51 parity with or subordinate to outstanding bonds of the issuer. If 7-52 the resolution or trust agreement authorizing the issuance of bond 7-53 anticipation notes contains a covenant that the notes are payable 7-54 from the proceeds of subsequently issued bonds, the district is not 7-55 required to demonstrate that the revenues that may be pledged to 7-56 the notes are sufficient to pay the principal of and interest on 7-57 the notes for purposes of receiving approval of the attorney 7-58 general or registration by the comptroller. 7-59 SECTION 5.03. REFUNDING BONDS. (a) The district may issue 7-60 refunding bonds to refund outstanding bonds and interest as 7-61 authorized by this Act. 7-62 (b) Refunding bonds may: 7-63 (1) be issued to refund one or more series of 7-64 outstanding bonds; 7-65 (2) combine the pledges for the outstanding bonds for 7-66 the security of the refunding bonds; or 7-67 (3) be secured by additional revenues. 7-68 (c) Refunding bonds may be issued without holding an 7-69 election to authorize the issuance of the bonds. 8-1 (d) Refunding bonds shall be registered by the comptroller 8-2 on surrender and cancellation of the bonds to be refunded or, if 8-3 the resolution authorizing the issuance of refunding bonds provides 8-4 that the bonds shall be sold and the proceeds deposited in the bank 8-5 where the bonds to be refunded are payable, the refunding bonds may 8-6 be issued in an amount sufficient to pay the principal and interest 8-7 of the bonds to be refunded to their option or maturity date. The 8-8 comptroller shall register the refunding bonds without concurrent 8-9 surrender and cancellation of the bonds to be refunded. 8-10 ARTICLE 6. MISCELLANEOUS PROVISIONS 8-11 SECTION 6.01. TAX EXEMPTION. The purposes stated in this 8-12 Act are for the benefit of the people of the state, including the 8-13 improvement of property and industry. The district, in carrying 8-14 out the purposes of this Act, is performing an essential public 8-15 function under the constitution and is not required to pay a tax or 8-16 assessment on a project of the district or on the bonds or notes 8-17 issued by the district under this Act, including the transfer of, 8-18 the income from, and the profits made on the sale of issued bonds 8-19 and notes. 8-20 SECTION 6.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. 8-21 (a) The proper and legal notice of the intention to introduce this 8-22 Act, setting forth the general substance of this Act, has been 8-23 published as provided by law, and the notice and a copy of this Act 8-24 have been furnished to all persons, agencies, officials, or 8-25 entities to which they are required to be furnished by the 8-26 constitution and other laws of this state, including the governor, 8-27 who has submitted the notice and Act to the Texas Natural Resource 8-28 Conservation Commission. 8-29 (b) The Texas Natural Resource Conservation Commission has 8-30 filed its recommendations relating to this Act with the governor, 8-31 lieutenant governor, and speaker of the house of representatives 8-32 within the required time. 8-33 (c) All requirements of the constitution and laws of this 8-34 state and the rules and procedures of the legislature with respect 8-35 to the notice, introduction, and passage of this Act are fulfilled 8-36 and accomplished. 8-37 SECTION 6.03. EFFECTIVE DATE. This Act takes effect 8-38 immediately if it receives a vote of two-thirds of all the members 8-39 elected to each house, as provided by Section 39, Article III, 8-40 Texas Constitution. If this Act does not receive the vote 8-41 necessary for immediate effect, this Act takes effect September 1, 8-42 2001. 8-43 * * * * *