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.