85R3320 AAF-D

By: Creighton S.B. No. 443

A BILL TO BE ENTITLED

AN ACT

relating to the Rayford Road Municipal Utility District.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 145, Acts of the 61st Legislature, Regular Session, 1969, is amended by amending Sections 5, 7, 9, 10, 11, 12, 15, and 17 to read as follows:

Sec. 5. The district shall have and exercise, and is hereby vested with, all of the rights, powers, privileges, authority and functions conferred and imposed by the general laws of this state now in force or hereafter enacted, applicable to municipal utility [water control and improvement] districts created under authority of Article XVI, Section 59, Constitution of Texas, including Chapters 49 and 54, Water Code [without limitation those conferred by Chapter 3A, Title 128, Vernon's Texas Civil Statutes]; but to the extent that the provisions of any such general laws may be in conflict or inconsistent with the provisions of this Act, the provisions of this Act shall prevail. All such general laws are hereby adopted and incorporated by reference with the same effect as if incorporated in full in this Act.

Not by way of limitation, the district shall have and is hereby expressly granted the following rights, powers, privileges and functions:

(a) The power and authority to make, purchase, construct, lease, or otherwise acquire property, works, facilities and improvements (whether previously existing or to be made, constructed or acquired) within or without the boundaries of the district necessary to carry out the powers and authority granted by this Act and the general laws.

(b) The right, power and authority to enter into contracts, of not exceeding 40 years duration with persons, corporations, public or private, municipal corporations, political subdivisions of the State of Texas, and others, on such terms and conditions as the board of directors may deem desirable, fair and advantageous for:

(1) the purchase and sale of water, or either;

(2) the transportation, treatment and disposal of its domestic, industrial or communal wastes or the transportation, treatment and disposal of domestic, industrial or communal wastes of others;

(3) the continuing and orderly development of the lands and property within the district through the purchase, construction or installation of facilities, works or improvements which the district may otherwise be empowered and authorized to do or perform so that, to the greatest extent reasonably possible, considering sound engineering and economic practices, all of such lands and property may be placed in a position to ultimately receive the services of such facilities, works or improvements; and

(4) the performance of any of the rights or powers granted in this Act and the general laws relating to municipal utility [water control and improvement] districts.

The rights, powers, privileges, authority and functions herein granted to the district shall be subject to the continuing right of supervision of the state, to be exercised by and through the Texas Commission on Environmental Quality [Water Rights Commission].

The powers and duties conferred on the district are granted subject to the policy of the state to encourage the development and use of integrated area-wide waste collection, treatment and disposal systems to serve the waste disposal needs of the citizens of the state, it being an objective of the policy to avoid the economic burden to the people and the impact on the quality of the waters in the state which result from the construction and operation of numerous small waste collection, treatment and disposal facilities to serve an area when an integrated area-wide waste collection, treatment and disposal system for the area can be reasonably provided.

Sec. 7. It shall not be necessary for the board of directors to call or hold a hearing on the exclusions of land or other property from the district[; provided, however, that the board shall hold such hearing upon the written petition of any landowner or other property owner within the district filed with the secretary of the board prior to the calling of the first bond election for the district. The board may act on said petition in the same manner that it may act on a petition for the addition of land under Article 7880-75, Vernon's Texas Civil Statutes, and no notice of hearing shall be required]. The board on its own motion may call and hold an exclusions hearing or hearings in the manner provided by the general law.

Sec. 9. Land may be added to or annexed to the district in the manner now provided by Chapters 49 and 54, Water Code [Chapter 3A, Title 128, Vernon's Texas Civil Statutes, as amended]; provided, however, that the board of directors may require the petitioners, if land is being added in the manner provided by Section 49.301, Water Code [Article 7880-75, Vernon's Texas Civil Statutes], to assume their pro rata share of the voted but unissued bonds of the district and authorize the board to levy a tax on their property in payment for such unissued bonds, when issued, or if land is being annexed in the manner provided by Section 49.302, Water Code [Article 7880-75b, Vernon's Texas Civil Statutes], the board may also submit a proposition to the property taxpaying voters of the area to be annexed on the question of the assumption by the area to be annexed of its part of the tax or tax-revenue bonds of the district theretofore voted but not yet issued or sold and the levy of an ad valorem tax on all taxable property within the area to be annexed along with the tax in the rest of the district for the payment thereof. If the petitioners consent or if the election results favorably, the district shall be authorized to issue its voted but unissued tax or tax-revenue bonds even though the boundaries of the district have been changed since the voting or authorization of such bonds.

Sec. 10. All powers of the district shall be exercised by a board of five directors. Each director shall serve for his term of office as herein provided, and thereafter until his successor shall be elected or appointed and qualified. Each director shall qualify by subscribing to the Constitutional oath of office and giving bond in the amount of $5,000 for the faithful performance of his duties. The cost of such bond shall be paid by the district. Such bond shall be approved by the county judge and filed in the office of the county clerk within which the district is located. The bonds of directors elected or appointed after the directors named below shall be approved by the district's board of directors and shall be recorded in a record kept for that purpose in the office of the district. Immediately after this Act becomes effective, the following named persons shall be the directors of the district and shall constitute the board of directors of the district:

Charles H. Reid

William W. Bartlett

Henry E. Randle

Jack K. Leeka

Vira Ann Harris Said persons shall file their bonds as soon as practicable after the effective date of this Act and shall otherwise be fully qualified to serve as director prior to the first meeting of the board of directors. All vacancies in the office of director shall be filled in the manner provided by Section 49.105, Water Code [Article 7880-38, Vernon's Texas Civil Statutes]; provided, however, if at any time the number of qualified directors shall be less than three because of the failure or refusal of one or more directors to qualify or serve, or because of his or their death or incapacitation, or for any other reason, then the county judge of the county in which the district is located shall appoint the necessary number of directors to fill all vacancies on the board. The directors named above or their duly appointed successor or successors shall serve until the second Tuesday in January, 1971. Succeeding directors shall be elected or appointed and shall serve for the term and in the manner provided by Section 49.103, Water Code [Article 7880-37, Vernon's Texas Civil Statutes]. Three directors shall constitute a quorum of any meeting, and a concurrence of three shall be sufficient in all matters pertaining to the business of the district including the letting of construction contracts and the drawing of warrants in payment for construction work, the purchase of existing facilities, and matters relating to construction work. The board shall select from its number a president, vice president, secretary and such other officers as in the judgment of the board is necessary. The president may execute all contracts, construction or otherwise, entered into by the board of directors on behalf of the district. The vice president shall perform all duties and exercise all power conferred by this Act or the general law upon the president when the president is absent or fails or declines to act. Any order adopted or other action taken at a meeting of the board of directors at which the president is absent may be signed by the vice president, or the board may authorize the president to sign such order or other action. The treasurer may be appointed by the board, and shall give bond in such amount as may be required by the board and conditioned that he or it will faithfully account for all money which shall come into his or its custody as treasurer of the district.

Sec. 11. The district shall comply with the requirements of Sections 49.181 and 49.182, Water Code [Article 7880-139, Vernon's Texas Civil Statutes as it presently exists or as it may be hereafter amended].

Sec. 12. The district is hereby authorized to issue its negotiable tax bonds, revenue bonds, or tax and revenue bonds to provide funds for any or all of the purposes set out or incorporated by reference herein, including the acquisition of land therefor, and said bonds shall be issued in the manner provided and as authorized by Chapters 49 and 54, Water Code [Article 7880-90a, Vernon's Texas Civil Statutes and Chapter 3A of Title 128, Vernon's Texas Civil Statutes, as presently or hereafter amended], provided, however, that bonds payable solely from net revenues may be issued by resolution or order of the board of directors and no election therefor shall be necessary.

The bonds issued hereunder may be payable from all or any designated part or parts of the revenues of the district's properties and facilities or under specific contracts, as may be provided in the orders or resolutions authorizing the issuance of such bonds; and, except as the same may be inconsistent or in conflict with the provisions of this Act, the provisions of Chapters 49 and 54, Water Code [said Chapter 3A of Title 128, Vernon's Texas Civil Statutes, as presently or hereafter amended], shall apply to all bonds issued under the provisions of this Act (the provisions of this Act to govern and take precedence in the event of any such inconsistency or conflict).

Such bonds, within the discretion of the board of directors, may be additionally secured by a deed of trust or mortgage lien upon part or all of the physical properties of the district, and franchises, easements, water rights and appropriation permits, leases, and contracts and all rights appurtenant to such properties, vesting in the trustee power to sell such properties for payment of the indebtedness, power to operate the properties and all other powers and authority for the further security of the bonds. Such trust indenture, regardless of the existence of the deed of trust or mortgage lien on the properties, may contain provisions prescribed by the board of directors for the security of the bonds and the preservation of the trust estate, and may make provisions for amendment or modification thereof and the issuance of bonds to replace lost or mutilated bonds, and may condition the right to expend district money or sell district property upon approval of a registered professional engineer selected as provided therein and may make provisions for investment of funds of the district. Any purchaser under a sale under the deed of trust or mortgage lien, where one is given, shall be absolute owner of the properties, facilities and rights so purchased and shall have the right to maintain and operate same.

In the orders or resolutions authorizing the issuance of any revenue, tax-revenue, revenue refunding, or tax-revenue refunding bonds authorized hereunder, the district's board of directors may provide for the flow of funds, the establishment and maintenance of the interest and sinking fund or funds, reserve fund or funds, and other funds, and may make additional covenants with respect to the bonds and the pledged revenues and the operation and maintenance of those improvements and facilities (the revenues of which are pledged), including provisions for the operation or for the leasing of all or any part of said improvements and facilities and the use or pledge of moneys derived from such operation contracts and leases, as such board may deem appropriate. Such orders or resolutions may also prohibit the further issuance of bonds or other obligations payable from the pledged revenues, or may reserve the right to issue additional bonds to be secured by a pledge of and payable from said revenues on a parity with, or subordinate to, the lien and pledge in support of the bonds being issued, subject to such conditions as are set forth in such orders or resolutions. Such orders or resolutions may contain other provisions and covenants, as the district's board may determine, not prohibited by the Constitution of Texas or by this Act, and said board may adopt and cause to be executed any other proceedings or instruments necessary and/or convenient in the issuance of any such bonds.

From the proceeds of sale of any bonds issued hereunder, the district may appropriate or set aside out of the bond proceeds an amount for the payment of interest, administrative and operating expenses expected to accrue during the period of construction (such period not to exceed three years), as may be provided in the bond orders or resolutions, and an amount necessary to pay all expenses incurred and to be incurred in the issuance, sale and delivery of the bonds. Moneys in the interest and sinking fund or funds and the reserve fund or funds, and in the other fund or funds established or provided for in the bond orders or resolutions may be invested in such manner and in such securities as may be provided in the bond order or orders or may be placed on interest-bearing time deposit. Until such time as the bond proceeds are needed to carry out the bond purpose, such proceeds may be invested in securities of the United States Government or any agency thereof or may be placed on interest-bearing time deposit, either or both. Any such revenue bonds, tax-revenue, revenue refunding bonds, or tax-revenue refunding bonds hereinafter mentioned may be registrable as to principal, or as to both principal and interest.

By orders or resolutions adopted by its board of directors, said district shall have the power and authority to issue revenue refunding bonds or tax-revenue refunding bonds to refund revenue bonds or tax-revenue bonds (either original bonds or refunding bonds) theretofore issued by such district. Said refunding bonds shall be approved by the attorney general as in the case of original bonds, and shall be registered by the comptroller of public accounts upon the surrender and cancellation of the bonds to be refunded, but in lieu thereof, the orders or resolutions authorizing their issuance may provide that they shall be sold and the proceeds thereof deposited in the place or places where the underlying bonds are payable, in which case the refunding bonds may be issued provided an amount sufficient to pay the interest and principal on the underlying bonds to their maturity dates, or to their option dates if said bonds have been duly called for payment prior to maturity according to their terms, has been so deposited in the place or places where said underlying bonds are payable, and the comptroller of public accounts shall register them without the surrender and cancellation of the underlying bonds.

After any bonds have been authorized by the district hereunder, such bonds and the record relating to their issuance shall be submitted to the Attorney General of the State of Texas for his examination as to the validity thereof, and after said attorney general has approved the same, such bonds shall be registered by the Comptroller of Public Accounts of the State of Texas. When such bonds have been approved by the attorney general, registered by the comptroller of public accounts, and delivered to the purchasers, they shall thereafter be incontestable except for forgery or fraud. When any bonds recite that they are secured partially or otherwise by a pledge of the proceeds of a contract or contracts made between the district and another party or parties (private or public) a copy of such contract or contracts and the proceedings authorizing the same may or may not be submitted to the attorney general along with the bond record and, if so submitted, the approval by the attorney general of the bonds shall constitute an approval of such contract or contracts, and thereafter the contract or contracts shall be incontestable for any cause except for forgery or fraud.

Sec. 15. The board of directors shall designate, establish and maintain a district office as provided by Section 49.062, Water Code [Article 7880-44], and, in addition, may establish a second district office outside the district. Either or both district offices so established and maintained may be a private residence, office or dwelling in which event such private residence, office or dwelling is hereby declared a public place for matters relating to the district's business.

If the board of directors establishes a district office outside the district, it shall give notice of the location of that district office by filing a true copy of its resolution establishing the location of such district office with the Texas Commission on Environmental Quality [Water Rights Commission], by filing a true copy in the municipal utility [Water Control and Improvement] district records of the county in which the district is located and also by publishing the location in a newspaper of general circulation in said county.

If the location of the district office outside the district is thereafter changed, notice of such change shall be given in the same manner.

Sec. 17. All elections to authorize the issuance of bonds by the district shall be held pursuant to the general law applicable to municipal utility [water control and improvement] districts[; provided, however, that if the first bond election fails, Article 7880-77b, Vernon's Texas Civil Statutes, or any other provision of the general law pertaining to dissolution of the district when a bond election fails, shall not apply].

SECTION 2. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality.

(c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, the lieutenant governor, and the speaker of the house of representatives within the required time.

(d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017.