Texas 2017 - 85th Regular

Texas Senate Bill SB443 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R3320 AAF-D
2	2	By: Creighton S.B. No. 443
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the Rayford Road Municipal Utility District.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 145, Acts of the 61st Legislature,
10	10	Regular Session, 1969, is amended by amending Sections 5, 7, 9, 10,
11	11	11, 12, 15, and 17 to read as follows:
12	12	Sec. 5. The district shall have and exercise, and is hereby
13	13	vested with, all of the rights, powers, privileges, authority and
14	14	functions conferred and imposed by the general laws of this state
15	15	now in force or hereafter enacted, applicable to municipal utility
16	16	[water control and improvement] districts created under authority
17	17	of Article XVI, Section 59, Constitution of Texas, including
18	18	Chapters 49 and 54, Water Code [without limitation those conferred
19	19	by Chapter 3A, Title 128, Vernon's Texas Civil Statutes]; but to the
20	20	extent that the provisions of any such general laws may be in
21	21	conflict or inconsistent with the provisions of this Act, the
22	22	provisions of this Act shall prevail. All such general laws are
23	23	hereby adopted and incorporated by reference with the same effect
24	24	as if incorporated in full in this Act.
25	25	Not by way of limitation, the district shall have and is
26	26	hereby expressly granted the following rights, powers, privileges
27	27	and functions:
28	28	(a) The power and authority to make, purchase, construct,
29	29	lease, or otherwise acquire property, works, facilities and
30	30	improvements (whether previously existing or to be made,
31	31	constructed or acquired) within or without the boundaries of the
32	32	district necessary to carry out the powers and authority granted by
33	33	this Act and the general laws.
34	34	(b) The right, power and authority to enter into contracts,
35	35	of not exceeding 40 years duration with persons, corporations,
36	36	public or private, municipal corporations, political subdivisions
37	37	of the State of Texas, and others, on such terms and conditions as
38	38	the board of directors may deem desirable, fair and advantageous
39	39	for:
40	40	(1) the purchase and sale of water, or either;
41	41	(2) the transportation, treatment and disposal of its
42	42	domestic, industrial or communal wastes or the transportation,
43	43	treatment and disposal of domestic, industrial or communal wastes
44	44	of others;
45	45	(3) the continuing and orderly development of the
46	46	lands and property within the district through the purchase,
47	47	construction or installation of facilities, works or improvements
48	48	which the district may otherwise be empowered and authorized to do
49	49	or perform so that, to the greatest extent reasonably possible,
50	50	considering sound engineering and economic practices, all of such
51	51	lands and property may be placed in a position to ultimately receive
52	52	the services of such facilities, works or improvements; and
53	53	(4) the performance of any of the rights or powers
54	54	granted in this Act and the general laws relating to municipal
55	55	utility [water control and improvement] districts.
56	56	The rights, powers, privileges, authority and functions
57	57	herein granted to the district shall be subject to the continuing
58	58	right of supervision of the state, to be exercised by and through
59	59	the Texas Commission on Environmental Quality [Water Rights
60	60	Commission].
61	61	The powers and duties conferred on the district are granted
62	62	subject to the policy of the state to encourage the development and
63	63	use of integrated area-wide waste collection, treatment and
64	64	disposal systems to serve the waste disposal needs of the citizens
65	65	of the state, it being an objective of the policy to avoid the
66	66	economic burden to the people and the impact on the quality of the
67	67	waters in the state which result from the construction and
68	68	operation of numerous small waste collection, treatment and
69	69	disposal facilities to serve an area when an integrated area-wide
70	70	waste collection, treatment and disposal system for the area can be
71	71	reasonably provided.
72	72	Sec. 7. It shall not be necessary for the board of directors
73	73	to call or hold a hearing on the exclusions of land or other
74	74	property from the district[; provided, however, that the board
75	75	shall hold such hearing upon the written petition of any landowner
76	76	or other property owner within the district filed with the
77	77	secretary of the board prior to the calling of the first bond
78	78	election for the district. The board may act on said petition in
79	79	the same manner that it may act on a petition for the addition of
80	80	land under Article 7880-75, Vernon's Texas Civil Statutes, and no
81	81	notice of hearing shall be required]. The board on its own motion
82	82	may call and hold an exclusions hearing or hearings in the manner
83	83	provided by the general law.
84	84	Sec. 9. Land may be added to or annexed to the district in
85	85	the manner now provided by Chapters 49 and 54, Water Code [Chapter
86	86	3A, Title 128, Vernon's Texas Civil Statutes, as amended];
87	87	provided, however, that the board of directors may require the
88	88	petitioners, if land is being added in the manner provided by
89	89	Section 49.301, Water Code [Article 7880-75, Vernon's Texas Civil
90	90	Statutes], to assume their pro rata share of the voted but unissued
91	91	bonds of the district and authorize the board to levy a tax on their
92	92	property in payment for such unissued bonds, when issued, or if land
93	93	is being annexed in the manner provided by Section 49.302, Water
94	94	Code [Article 7880-75b, Vernon's Texas Civil Statutes], the board
95	95	may also submit a proposition to the property taxpaying voters of
96	96	the area to be annexed on the question of the assumption by the area
97	97	to be annexed of its part of the tax or tax-revenue bonds of the
98	98	district theretofore voted but not yet issued or sold and the levy
99	99	of an ad valorem tax on all taxable property within the area to be
100	100	annexed along with the tax in the rest of the district for the
101	101	payment thereof. If the petitioners consent or if the election
102	102	results favorably, the district shall be authorized to issue its
103	103	voted but unissued tax or tax-revenue bonds even though the
104	104	boundaries of the district have been changed since the voting or
105	105	authorization of such bonds.
106	106	Sec. 10. All powers of the district shall be exercised by a
107	107	board of five directors. Each director shall serve for his term of
108	108	office as herein provided, and thereafter until his successor shall
109	109	be elected or appointed and qualified. Each director shall qualify
110	110	by subscribing to the Constitutional oath of office and giving bond
111	111	in the amount of $5,000 for the faithful performance of his duties.
112	112	The cost of such bond shall be paid by the district. Such bond shall
113	113	be approved by the county judge and filed in the office of the
114	114	county clerk within which the district is located. The bonds of
115	115	directors elected or appointed after the directors named below
116	116	shall be approved by the district's board of directors and shall be
117	117	recorded in a record kept for that purpose in the office of the
118	118	district. Immediately after this Act becomes effective, the
119	119	following named persons shall be the directors of the district and
120	120	shall constitute the board of directors of the district:
121	121	Charles H. Reid
122	122	William W. Bartlett
123	123	Henry E. Randle
124	124	Jack K. Leeka
125	125	Vira Ann Harris
126	126	Said persons shall file their bonds as soon as practicable after the
127	127	effective date of this Act and shall otherwise be fully qualified to
128	128	serve as director prior to the first meeting of the board of
129	129	directors. All vacancies in the office of director shall be filled
130	130	in the manner provided by Section 49.105, Water Code [Article
131	131	7880-38, Vernon's Texas Civil Statutes]; provided, however, if at
132	132	any time the number of qualified directors shall be less than three
133	133	because of the failure or refusal of one or more directors to
134	134	qualify or serve, or because of his or their death or
135	135	incapacitation, or for any other reason, then the county judge of
136	136	the county in which the district is located shall appoint the
137	137	necessary number of directors to fill all vacancies on the board.
138	138	The directors named above or their duly appointed successor or
139	139	successors shall serve until the second Tuesday in January, 1971.
140	140	Succeeding directors shall be elected or appointed and shall serve
141	141	for the term and in the manner provided by Section 49.103, Water
142	142	Code [Article 7880-37, Vernon's Texas Civil Statutes]. Three
143	143	directors shall constitute a quorum of any meeting, and a
144	144	concurrence of three shall be sufficient in all matters pertaining
145	145	to the business of the district including the letting of
146	146	construction contracts and the drawing of warrants in payment for
147	147	construction work, the purchase of existing facilities, and matters
148	148	relating to construction work. The board shall select from its
149	149	number a president, vice president, secretary and such other
150	150	officers as in the judgment of the board is necessary. The
151	151	president may execute all contracts, construction or otherwise,
152	152	entered into by the board of directors on behalf of the district.
153	153	The vice president shall perform all duties and exercise all power
154	154	conferred by this Act or the general law upon the president when the
155	155	president is absent or fails or declines to act. Any order adopted
156	156	or other action taken at a meeting of the board of directors at
157	157	which the president is absent may be signed by the vice president,
158	158	or the board may authorize the president to sign such order or other
159	159	action. The treasurer may be appointed by the board, and shall give
160	160	bond in such amount as may be required by the board and conditioned
161	161	that he or it will faithfully account for all money which shall come
162	162	into his or its custody as treasurer of the district.
163	163	Sec. 11. The district shall comply with the requirements of
164	164	Sections 49.181 and 49.182, Water Code [Article 7880-139, Vernon's
165	165	Texas Civil Statutes as it presently exists or as it may be
166	166	hereafter amended].
167	167	Sec. 12. The district is hereby authorized to issue its
168	168	negotiable tax bonds, revenue bonds, or tax and revenue bonds to
169	169	provide funds for any or all of the purposes set out or incorporated
170	170	by reference herein, including the acquisition of land therefor,
171	171	and said bonds shall be issued in the manner provided and as
172	172	authorized by Chapters 49 and 54, Water Code [Article 7880-90a,
173	173	Vernon's Texas Civil Statutes and Chapter 3A of Title 128, Vernon's
174	174	Texas Civil Statutes, as presently or hereafter amended], provided,
175	175	however, that bonds payable solely from net revenues may be issued
176	176	by resolution or order of the board of directors and no election
177	177	therefor shall be necessary.
178	178	The bonds issued hereunder may be payable from all or any
179	179	designated part or parts of the revenues of the district's
180	180	properties and facilities or under specific contracts, as may be
181	181	provided in the orders or resolutions authorizing the issuance of
182	182	such bonds; and, except as the same may be inconsistent or in
183	183	conflict with the provisions of this Act, the provisions of
184	184	Chapters 49 and 54, Water Code [said Chapter 3A of Title 128,
185	185	Vernon's Texas Civil Statutes, as presently or hereafter amended],
186	186	shall apply to all bonds issued under the provisions of this Act
187	187	(the provisions of this Act to govern and take precedence in the
188	188	event of any such inconsistency or conflict).
189	189	Such bonds, within the discretion of the board of directors,
190	190	may be additionally secured by a deed of trust or mortgage lien upon
191	191	part or all of the physical properties of the district, and
192	192	franchises, easements, water rights and appropriation permits,
193	193	leases, and contracts and all rights appurtenant to such
194	194	properties, vesting in the trustee power to sell such properties
195	195	for payment of the indebtedness, power to operate the properties
196	196	and all other powers and authority for the further security of the
197	197	bonds. Such trust indenture, regardless of the existence of the
198	198	deed of trust or mortgage lien on the properties, may contain
199	199	provisions prescribed by the board of directors for the security of
200	200	the bonds and the preservation of the trust estate, and may make
201	201	provisions for amendment or modification thereof and the issuance
202	202	of bonds to replace lost or mutilated bonds, and may condition the
203	203	right to expend district money or sell district property upon
204	204	approval of a registered professional engineer selected as provided
205	205	therein and may make provisions for investment of funds of the
206	206	district. Any purchaser under a sale under the deed of trust or
207	207	mortgage lien, where one is given, shall be absolute owner of the
208	208	properties, facilities and rights so purchased and shall have the
209	209	right to maintain and operate same.
210	210	In the orders or resolutions authorizing the issuance of any
211	211	revenue, tax-revenue, revenue refunding, or tax-revenue refunding
212	212	bonds authorized hereunder, the district's board of directors may
213	213	provide for the flow of funds, the establishment and maintenance of
214	214	the interest and sinking fund or funds, reserve fund or funds, and
215	215	other funds, and may make additional covenants with respect to the
216	216	bonds and the pledged revenues and the operation and maintenance of
217	217	those improvements and facilities (the revenues of which are
218	218	pledged), including provisions for the operation or for the leasing
219	219	of all or any part of said improvements and facilities and the use
220	220	or pledge of moneys derived from such operation contracts and
221	221	leases, as such board may deem appropriate. Such orders or
222	222	resolutions may also prohibit the further issuance of bonds or
223	223	other obligations payable from the pledged revenues, or may reserve
224	224	the right to issue additional bonds to be secured by a pledge of and
225	225	payable from said revenues on a parity with, or subordinate to, the
226	226	lien and pledge in support of the bonds being issued, subject to
227	227	such conditions as are set forth in such orders or resolutions.
228	228	Such orders or resolutions may contain other provisions and
229	229	covenants, as the district's board may determine, not prohibited by
230	230	the Constitution of Texas or by this Act, and said board may adopt
231	231	and cause to be executed any other proceedings or instruments
232	232	necessary and/or convenient in the issuance of any such bonds.
233	233	From the proceeds of sale of any bonds issued hereunder, the
234	234	district may appropriate or set aside out of the bond proceeds an
235	235	amount for the payment of interest, administrative and operating
236	236	expenses expected to accrue during the period of construction (such
237	237	period not to exceed three years), as may be provided in the bond
238	238	orders or resolutions, and an amount necessary to pay all expenses
239	239	incurred and to be incurred in the issuance, sale and delivery of
240	240	the bonds. Moneys in the interest and sinking fund or funds and the
241	241	reserve fund or funds, and in the other fund or funds established or
242	242	provided for in the bond orders or resolutions may be invested in
243	243	such manner and in such securities as may be provided in the bond
244	244	order or orders or may be placed on interest-bearing time deposit.
245	245	Until such time as the bond proceeds are needed to carry out the
246	246	bond purpose, such proceeds may be invested in securities of the
247	247	United States Government or any agency thereof or may be placed on
248	248	interest-bearing time deposit, either or both. Any such revenue
249	249	bonds, tax-revenue, revenue refunding bonds, or tax-revenue
250	250	refunding bonds hereinafter mentioned may be registrable as to
251	251	principal, or as to both principal and interest.
252	252	By orders or resolutions adopted by its board of directors,
253	253	said district shall have the power and authority to issue revenue
254	254	refunding bonds or tax-revenue refunding bonds to refund revenue
255	255	bonds or tax-revenue bonds (either original bonds or refunding
256	256	bonds) theretofore issued by such district. Said refunding bonds
257	257	shall be approved by the attorney general as in the case of original
258	258	bonds, and shall be registered by the comptroller of public
259	259	accounts upon the surrender and cancellation of the bonds to be
260	260	refunded, but in lieu thereof, the orders or resolutions
261	261	authorizing their issuance may provide that they shall be sold and
262	262	the proceeds thereof deposited in the place or places where the
263	263	underlying bonds are payable, in which case the refunding bonds may
264	264	be issued provided an amount sufficient to pay the interest and
265	265	principal on the underlying bonds to their maturity dates, or to
266	266	their option dates if said bonds have been duly called for payment
267	267	prior to maturity according to their terms, has been so deposited in
268	268	the place or places where said underlying bonds are payable, and the
269	269	comptroller of public accounts shall register them without the
270	270	surrender and cancellation of the underlying bonds.
271	271	After any bonds have been authorized by the district
272	272	hereunder, such bonds and the record relating to their issuance
273	273	shall be submitted to the Attorney General of the State of Texas for
274	274	his examination as to the validity thereof, and after said attorney
275	275	general has approved the same, such bonds shall be registered by the
276	276	Comptroller of Public Accounts of the State of Texas. When such
277	277	bonds have been approved by the attorney general, registered by the
278	278	comptroller of public accounts, and delivered to the purchasers,
279	279	they shall thereafter be incontestable except for forgery or fraud.
280	280	When any bonds recite that they are secured partially or otherwise
281	281	by a pledge of the proceeds of a contract or contracts made between
282	282	the district and another party or parties (private or public) a copy
283	283	of such contract or contracts and the proceedings authorizing the
284	284	same may or may not be submitted to the attorney general along with
285	285	the bond record and, if so submitted, the approval by the attorney
286	286	general of the bonds shall constitute an approval of such contract
287	287	or contracts, and thereafter the contract or contracts shall be
288	288	incontestable for any cause except for forgery or fraud.
289	289	Sec. 15. The board of directors shall designate, establish
290	290	and maintain a district office as provided by Section 49.062, Water
291	291	Code [Article 7880-44], and, in addition, may establish a second
292	292	district office outside the district. Either or both district
293	293	offices so established and maintained may be a private residence,
294	294	office or dwelling in which event such private residence, office or
295	295	dwelling is hereby declared a public place for matters relating to
296	296	the district's business.
297	297	If the board of directors establishes a district office
298	298	outside the district, it shall give notice of the location of that
299	299	district office by filing a true copy of its resolution
300	300	establishing the location of such district office with the Texas
301	301	Commission on Environmental Quality [Water Rights Commission], by
302	302	filing a true copy in the municipal utility [Water Control and
303	303	Improvement] district records of the county in which the district
304	304	is located and also by publishing the location in a newspaper of
305	305	general circulation in said county.
306	306	If the location of the district office outside the district
307	307	is thereafter changed, notice of such change shall be given in the
308	308	same manner.
309	309	Sec. 17. All elections to authorize the issuance of bonds by
310	310	the district shall be held pursuant to the general law applicable to
311	311	municipal utility [water control and improvement] districts[;
312	312	provided, however, that if the first bond election fails, Article
313	313	7880-77b, Vernon's Texas Civil Statutes, or any other provision of
314	314	the general law pertaining to dissolution of the district when a
315	315	bond election fails, shall not apply].
316	316	SECTION 2. (a) The legal notice of the intention to
317	317	introduce this Act, setting forth the general substance of this
318	318	Act, has been published as provided by law, and the notice and a
319	319	copy of this Act have been furnished to all persons, agencies,
320	320	officials, or entities to which they are required to be furnished
321	321	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
322	322	Government Code.
323	323	(b) The governor, one of the required recipients, has
324	324	submitted the notice and Act to the Texas Commission on
325	325	Environmental Quality.
326	326	(c) The Texas Commission on Environmental Quality has filed
327	327	its recommendations relating to this Act with the governor, the
328	328	lieutenant governor, and the speaker of the house of
329	329	representatives within the required time.
330	330	(d) All requirements of the constitution and laws of this
331	331	state and the rules and procedures of the legislature with respect
332	332	to the notice, introduction, and passage of this Act are fulfilled
333	333	and accomplished.
334	334	SECTION 3. This Act takes effect immediately if it receives
335	335	a vote of two-thirds of all the members elected to each house, as
336	336	provided by Section 39, Article III, Texas Constitution. If this
337	337	Act does not receive the vote necessary for immediate effect, this
338	338	Act takes effect September 1, 2017.