1 | 1 | | 86R4517 SLB-F |
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2 | 2 | | By: Thompson of Brazoria H.B. No. 1958 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the territory, powers, and administration of the Gulf |
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8 | 8 | | Coast Water Authority. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Sections 2 and 3, Chapter 712, Acts of the 59th |
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11 | 11 | | Legislature, Regular Session, 1965, are amended to read as follows: |
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12 | 12 | | Sec. 2. The District's territory is [District shall be |
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13 | 13 | | comprised of all of the territory contained within Galveston |
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14 | 14 | | County, Texas, and its boundaries shall be the same as and] |
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15 | 15 | | coextensive with the boundaries of Brazoria, Fort Bend, and |
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16 | 16 | | Galveston Counties [County, Texas]. |
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17 | 17 | | Sec. 3. Except as expressly limited by this Act, the |
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18 | 18 | | District shall have and exercise and is hereby vested with all |
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19 | 19 | | rights, powers, privileges, and authority conferred by the General |
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20 | 20 | | Laws of this State now in force or hereafter enacted applicable to |
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21 | 21 | | municipal utility districts created under authority of Section 59 |
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22 | 22 | | of Article XVI, Constitution of Texas including without limitation |
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23 | 23 | | those conferred by Chapters 49 and [Chapter] 54, Water Code, as |
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24 | 24 | | amended, but to the extent that the provisions of such General Laws |
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25 | 25 | | may be in conflict or inconsistent with the provisions of this Act, |
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26 | 26 | | the provisions of this Act shall prevail. All such General Laws are |
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27 | 27 | | hereby adopted and incorporated by reference with the same effect |
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28 | 28 | | as if incorporated in full in this Act. Without in any way limiting |
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29 | 29 | | the generalization of the foregoing, it is expressly provided that |
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30 | 30 | | the District shall have, and is hereby authorized to exercise, the |
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31 | 31 | | following rights, powers, privileges and functions: |
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32 | 32 | | (a) the power to make, construct, or otherwise acquire |
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33 | 33 | | improvements either within or without the boundaries thereof |
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34 | 34 | | necessary to carry out the powers and authority granted by this Act |
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35 | 35 | | and said General Laws and to exercise the power of eminent domain |
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36 | 36 | | for such purposes; provided, however, that the District shall not |
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37 | 37 | | have the power of eminent domain as to all or any part of the water |
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38 | 38 | | supply, property, works or facilities of any private person or |
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39 | 39 | | persons, or of any private or public corporation or association |
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40 | 40 | | engaged in the business of supplying water in Brazoria County, Fort |
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41 | 41 | | Bend County, or Galveston County, Texas, to any class of consumers |
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42 | 42 | | for any use upon the effective date of this Act, but this provision |
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43 | 43 | | shall not restrict the power of the District to acquire necessary |
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44 | 44 | | crossing easements and rights-of-way; |
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45 | 45 | | (b) to conserve, store, transport, treat and purify, |
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46 | 46 | | distribute, sell and deliver water, both surface and underground, |
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47 | 47 | | to persons, corporations, both public and private, political |
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48 | 48 | | subdivisions of the State and others, and to purchase, construct or |
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49 | 49 | | lease all property, works and facilities, both within and without |
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50 | 50 | | the District, necessary or useful for such purposes; |
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51 | 51 | | (c) to acquire water supplies from sources both within or |
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52 | 52 | | without the boundaries of the District and to sell, transport and |
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53 | 53 | | deliver water to customers situated within or without the District |
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54 | 54 | | and to acquire all properties and facilities necessary or useful |
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55 | 55 | | for such purposes, and for any or all of such purposes to enter into |
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56 | 56 | | contracts with persons, corporations, both public and private, and |
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57 | 57 | | political subdivisions of the State for such periods of time and on |
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58 | 58 | | such terms and conditions as the Board of Directors may deem |
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59 | 59 | | desirable; |
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60 | 60 | | (d) subject to the provisions of this Act, to sell, lease, |
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61 | 61 | | or exchange any property of any kind, or any interest therein, which |
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62 | 62 | | is not necessary to the carrying on of the business of the District |
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63 | 63 | | or the sale, lease, or exchange of which, in the judgment of the |
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64 | 64 | | Board of Directors, is necessary for the exercise of the powers, |
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65 | 65 | | rights, privileges, and functions conferred upon the District by |
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66 | 66 | | this Act or by Chapters 49 and [Chapter] 54, Water Code, as amended; |
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67 | 67 | | (e) subject to the provisions of this Act, to acquire by |
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68 | 68 | | purchase, lease, gift, or otherwise, and to maintain, use, and |
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69 | 69 | | operate any and all property of any kind, or any interest therein, |
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70 | 70 | | within or without the boundaries of the District, necessary to the |
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71 | 71 | | exercise of the powers, rights, privileges, and functions conferred |
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72 | 72 | | by this Act or by Chapters 49 and [Chapter] 54, Water Code, as |
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73 | 73 | | amended; |
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74 | 74 | | (f) to construct, extend, improve, maintain, and |
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75 | 75 | | reconstruct, to cause to be constructed, extended, improved, |
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76 | 76 | | maintained, and reconstructed, and to use and operate, any and all |
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77 | 77 | | facilities of any kind necessary to the exercise of such powers, |
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78 | 78 | | rights, privileges, and functions; |
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79 | 79 | | (g) to sue and be sued in its corporate name; |
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80 | 80 | | (h) to adopt, use, and alter a corporate seal; |
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81 | 81 | | (i) to invest and reinvest its funds; |
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82 | 82 | | (j) to make bylaws for management and regulation of its |
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83 | 83 | | affairs; |
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84 | 84 | | (k) to appoint officers, agents, and employees, to |
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85 | 85 | | prescribe their duties and fix their compensation; |
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86 | 86 | | (l) to make contracts and to execute instruments convenient |
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87 | 87 | | or necessary to the exercise of the powers, rights, privileges, and |
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88 | 88 | | functions conferred by this Act or Chapters 49 and [Chapter] 54, |
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89 | 89 | | Water Code, as amended, for such term and with such provisions as |
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90 | 90 | | the Board of Directors may determine to be in the best interests of |
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91 | 91 | | the District, including, without in any way limiting the generality |
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92 | 92 | | of the foregoing, contracts with persons including the State of |
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93 | 93 | | Texas, the United States of America and any corporation or agency |
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94 | 94 | | thereof and districts, cities, towns, persons, organizations, |
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95 | 95 | | firms, corporations or other entities as the Board of Directors may |
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96 | 96 | | deem necessary or proper for or in connection with any of its |
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97 | 97 | | corporate purposes; |
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98 | 98 | | (m) to borrow money for its corporate purposes and, without |
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99 | 99 | | limiting the generality of the foregoing, to borrow money, apply |
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100 | 100 | | for and receive loans, and accept grants or contributions, directly |
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101 | 101 | | or indirectly, from persons, including the State of Texas, the |
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102 | 102 | | United States of America, or from any corporation, agency, or |
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103 | 103 | | entity created or designated by the State of Texas or the United |
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104 | 104 | | States of America, and in connection with any such loan, [or] grant, |
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105 | 105 | | or contribution, to enter into such agreements as the State of |
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106 | 106 | | Texas, the United States of America, or any such corporation, |
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107 | 107 | | agency, or entity may require; and to make and issue its negotiable |
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108 | 108 | | bonds or notes for money borrowed, in the manner and to the extent |
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109 | 109 | | provided in this Act, and to refund or refinance any outstanding |
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110 | 110 | | bonds, [or] notes, or loans, and to make and issue its negotiable |
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111 | 111 | | bonds or notes therefor in the manner provided in this Act. |
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112 | 112 | | SECTION 2. Chapter 712, Acts of the 59th Legislature, |
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113 | 113 | | Regular Session, 1965, is amended by adding Sections 3B and 3C to |
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114 | 114 | | read as follows: |
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115 | 115 | | Sec. 3B. (a) In this section, "person" includes an |
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116 | 116 | | individual, entity, partnership, and corporation. The term does |
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117 | 117 | | not include a political subdivision or public agency. |
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118 | 118 | | (b) Competitive bidding and contract procurement or |
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119 | 119 | | delivery requirements otherwise applicable to the District do not |
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120 | 120 | | apply to a contract or agreement made by the District with a person |
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121 | 121 | | if: |
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122 | 122 | | (1) the contract or agreement relates to a project for |
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123 | 123 | | the acquisition or construction of equipment or facilities for the |
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124 | 124 | | production, treatment, transmission, or delivery of water; and |
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125 | 125 | | (2) payments made under the contract or agreement are |
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126 | 126 | | for amounts substantially sufficient to finance a project described |
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127 | 127 | | in Subdivision (1). |
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128 | 128 | | Sec. 3C. (a) The Board by resolution may authorize the |
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129 | 129 | | creation of a nonprofit corporation to assist and act for the |
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130 | 130 | | district in implementing a project or providing a service |
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131 | 131 | | authorized by this chapter. |
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132 | 132 | | (b) The nonprofit corporation: |
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133 | 133 | | (1) has each power of and is considered to be a local |
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134 | 134 | | government corporation created under Subchapter D, Chapter 431, |
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135 | 135 | | Transportation Code; and |
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136 | 136 | | (2) may implement any project and provide any service |
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137 | 137 | | authorized by this chapter. |
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138 | 138 | | (c) The Board shall appoint the board of directors of the |
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139 | 139 | | nonprofit corporation. The board of directors of the nonprofit |
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140 | 140 | | corporation shall serve at the will of the district and in the same |
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141 | 141 | | manner as the board of directors of a local government corporation |
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142 | 142 | | created under Subchapter D, Chapter 431, Transportation Code. |
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143 | 143 | | (d) The nonprofit corporation may not: |
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144 | 144 | | (1) exercise the powers of a municipality or county; |
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145 | 145 | | (2) participate in a project that the District is not |
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146 | 146 | | authorized to participate in; |
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147 | 147 | | (3) impose taxes; or |
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148 | 148 | | (4) acquire, construct, or operate parks or |
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149 | 149 | | recreational facilities. |
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150 | 150 | | SECTION 3. Sections 4(a), (c), and (f), Chapter 712, Acts of |
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151 | 151 | | the 59th Legislature, Regular Session, 1965, are amended to read as |
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152 | 152 | | follows: |
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153 | 153 | | (a) The District shall have no power or authority to levy |
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154 | 154 | | and collect taxes on any property real, personal or mixed, within |
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155 | 155 | | the boundaries of said District, nor shall the District have power |
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156 | 156 | | or authority to issue bonds or create indebtedness which would in |
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157 | 157 | | any way be payable from ad valorem taxes levied by the District upon |
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158 | 158 | | property within said District; and provided further that said |
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159 | 159 | | District shall have none of the powers conferred by General Law for |
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160 | 160 | | the purposes of the collection, transportation, processing, |
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161 | 161 | | disposal and control of domestic, industrial or communal wastes, |
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162 | 162 | | and the gathering, conducting, directing and controlling of local |
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163 | 163 | | storm waters, or other local harmful excesses of water except as |
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164 | 164 | | directly related to the production and purification of water for |
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165 | 165 | | agricultural, municipal, or industrial purposes, including the |
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166 | 166 | | ownership, lease, or operation of a municipal wastewater treatment |
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167 | 167 | | facility in which the effluent is used by the District for water |
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168 | 168 | | reuse supply. |
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169 | 169 | | (c) In the event that the District in the exercise of the |
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170 | 170 | | power of eminent domain or power of relocation, or any other power |
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171 | 171 | | granted hereunder, makes necessary the relocation, raising, |
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172 | 172 | | rerouting or changing the grade of, or altering the construction |
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173 | 173 | | of, any cemetery, highway, railroad, electric transmission line, |
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174 | 174 | | telephone or telegraph properties and facilities, or pipeline, all |
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175 | 175 | | such necessary relocation, raising, rerouting, changing of grade or |
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176 | 176 | | alteration of construction shall be accomplished at the sole |
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177 | 177 | | expense of the District. The term "sole expense" shall mean the |
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178 | 178 | | actual cost of such relocation, raising, rerouting, or change in |
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179 | 179 | | grade or alteration of construction in providing comparable |
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180 | 180 | | replacement without enhancement of such facilities after deducting |
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181 | 181 | | therefrom the net salvage value derived from the old facility. |
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182 | 182 | | (f) The powers, rights, privileges, and functions conferred |
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183 | 183 | | upon the District shall be subject to the continuing rights of |
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184 | 184 | | supervision by the State, [which shall be exercised by the Texas |
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185 | 185 | | Department of Water Resources, and the District shall obtain |
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186 | 186 | | approval of its projects and they shall be supervised] as provided |
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187 | 187 | | by the [Sections 54.516 and 54.517,] Water Code, as amended. |
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188 | 188 | | SECTION 4. Section 5, Chapter 712, Acts of the 59th |
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189 | 189 | | Legislature, Regular Session, 1965, is amended to read as follows: |
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190 | 190 | | Sec. 5. (a) The management and control of the District is |
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191 | 191 | | hereby vested in a Board of 10 directors. |
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192 | 192 | | (b) Each director must be a resident of this state. |
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193 | 193 | | (c) Vacancies on the Board of Directors, whether by death, |
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194 | 194 | | resignation or termination of the term of office, shall be filled by |
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195 | 195 | | appointment by the commissioners court that appointed the director |
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196 | 196 | | for the unexpired term of the director. |
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197 | 197 | | (d) A director may be removed by the commissioners court |
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198 | 198 | | that appointed the director for inefficiency, neglect of duty, or |
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199 | 199 | | misconduct of office. The Board must provide a director removed |
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200 | 200 | | under this section written notice not later than the 30th day after |
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201 | 201 | | the date the decision to remove is made and an opportunity to be |
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202 | 202 | | heard in person or by counsel in a public hearing. |
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203 | 203 | | (e) All terms of office shall be for a period of two (2) |
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204 | 204 | | years. Terms shall be staggered ending on August 31 of the |
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205 | 205 | | appropriate year. |
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206 | 206 | | (f) Six directors constitute a quorum. Except as otherwise |
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207 | 207 | | provided, a majority of those directors present and qualified to |
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208 | 208 | | vote is sufficient for final action on a matter before the Board. |
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209 | 209 | | SECTION 5. Chapter 712, Acts of the 59th Legislature, |
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210 | 210 | | Regular Session, 1965, is amended by adding Sections 5C, 5D, 5E, 5F, |
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211 | 211 | | and 5G to read as follows: |
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212 | 212 | | Sec. 5C. (a) Chapter 171, Local Government Code, does not |
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213 | 213 | | apply to a director appointed to represent agricultural or |
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214 | 214 | | industrial interests. |
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215 | 215 | | (b) A director who has a financial interest in a contract |
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216 | 216 | | considered by the District for the purchase of property or the |
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217 | 217 | | construction of a facility must disclose the interest to the other |
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218 | 218 | | directors and may not vote on the contract. |
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219 | 219 | | Sec. 5D. (a) The Board may hold an open or closed meeting by |
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220 | 220 | | telephone conference call if at least five directors are present at |
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221 | 221 | | the location where the meeting of the Board is held. A meeting held |
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222 | 222 | | by telephone conference call is subject to the same notice |
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223 | 223 | | requirements as other Board meetings and must be recorded. Each |
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224 | 224 | | person who speaks in a meeting held by telephone conference call |
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225 | 225 | | must be clearly identified. A director participating in a meeting |
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226 | 226 | | held by telephone conference call is considered absent from any |
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227 | 227 | | part of the meeting during which audio communication is lost. |
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228 | 228 | | (b) The authority to hold a meeting held by telephone |
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229 | 229 | | conference call described by this section is in addition to |
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230 | 230 | | authority described by Chapter 551, Government Code. |
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231 | 231 | | Sec. 5E. If the Board employs a general manager, the general |
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232 | 232 | | manager is the chief executive officer of the District. |
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233 | 233 | | Sec. 5F. The District is not required to provide notice for |
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234 | 234 | | the sale or disposal of District personal property if the personal |
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235 | 235 | | property has a value of less than $25,000. |
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236 | 236 | | Sec. 5G. (a) The District may enter into a contract related |
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237 | 237 | | to a water project located outside the District. The District may |
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238 | 238 | | enter into a local agreement with a political subdivision for a |
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239 | 239 | | purpose related to a water project. |
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240 | 240 | | (b) A contract under this section may use money appropriated |
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241 | 241 | | by a political subdivision that is a party to the contract to pay |
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242 | 242 | | for pre-development costs, engineering, surveys, and the |
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243 | 243 | | collection and compilation of data relating to conditions |
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244 | 244 | | influencing determinations about the character and extent of |
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245 | 245 | | proposed improvements, works, and facilities for the |
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246 | 246 | | accomplishment of District purposes. |
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247 | 247 | | (c) The District may contract or agree with an entity |
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248 | 248 | | appropriating money under this section to receive a loan or money |
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249 | 249 | | from other sources in return for services described by Subsection |
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250 | 250 | | (a). The contract or agreement may provide for the repayment by the |
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251 | 251 | | District of money advanced as a loan from project revenues, bond |
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252 | 252 | | proceeds, or other available money. |
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253 | 253 | | (d) The District and a state agency or political subdivision |
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254 | 254 | | may enter into a contract to jointly pay all or part of the cost of a |
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255 | 255 | | water project or the operation of a water project in the same way |
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256 | 256 | | that a political subdivision may contract with a state agency or |
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257 | 257 | | political subdivision under Chapter 472, Transportation Code, to |
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258 | 258 | | jointly pay all or part of the cost associated with a state or local |
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259 | 259 | | highway, turnpike, road, or street project. |
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260 | 260 | | SECTION 6. Sections 7 and 8, Chapter 712, Acts of the 59th |
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261 | 261 | | Legislature, Regular Session, 1965, are amended to read as follows: |
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262 | 262 | | Sec. 7. The District shall have power and is hereby |
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263 | 263 | | authorized to issue, from time to time, bonds as herein authorized |
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264 | 264 | | for any of its corporate purposes. Such bonds may either be (1) |
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265 | 265 | | sold for cash, at public or private sale, at such price or prices as |
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266 | 266 | | the Board shall determine, provided that the net effective interest |
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267 | 267 | | rate, calculated in accordance with Chapter 1204, Government Code |
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268 | 268 | | [3, Acts of the 61st Legislature, Regular Session, 1969, as amended |
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269 | 269 | | (Article 717k-2, Vernon's Texas Civil Statutes), as now or |
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270 | 270 | | hereafter amended shall not exceed ten (10) percent], or (2) issued |
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271 | 271 | | on such terms as the Board of Directors shall determine in exchange |
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272 | 272 | | for property of any kind, real, personal or mixed or any interest |
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273 | 273 | | therein which the Board shall deem necessary for any such corporate |
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274 | 274 | | purposes, or (3) issued in exchange for like principal amounts of |
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275 | 275 | | other obligations of the District, matured or unmatured. The |
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276 | 276 | | proceeds of sale of such bonds shall be deposited in such bank or |
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277 | 277 | | banks or trust company or trust companies, and shall be paid out |
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278 | 278 | | pursuant to such terms and conditions, as may be agreed upon between |
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279 | 279 | | the District and the purchasers of such bonds. All such bonds shall |
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280 | 280 | | be authorized by resolution or resolutions of the Board of |
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281 | 281 | | Directors, and shall bear such date or dates, mature at such time or |
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282 | 282 | | times, bear interest payable annually, semiannually, or otherwise, |
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283 | 283 | | be in such denominations, be in such form, either coupon or |
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284 | 284 | | registered, carry such registration privileges as to principal only |
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285 | 285 | | or as to both principal and interest, and as to exchange of coupon |
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286 | 286 | | bonds for registered bonds or vice versa, and exchange of bonds of |
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287 | 287 | | one denomination for bonds of other denominations, be executed in |
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288 | 288 | | such manner and be payable at such place or places within or without |
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289 | 289 | | the State of Texas, as such resolution or resolutions may provide. |
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290 | 290 | | Any resolution or resolutions authorizing any bonds may contain |
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291 | 291 | | provisions, which shall be part of the contract between the |
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292 | 292 | | District and the holders thereof from time to time: |
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293 | 293 | | (a) reserving the right to redeem such bonds or requiring |
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294 | 294 | | the redemption of such bonds, at such time or times, in such amounts |
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295 | 295 | | and at such prices, [not exceeding 105 percent of the principal |
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296 | 296 | | amount thereof, plus accrued interest,] as may be provided; |
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297 | 297 | | (b) providing for the setting aside of sinking funds or |
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298 | 298 | | reserve funds and the regulation and disposition thereof; |
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299 | 299 | | (c) pledging to secure the payment of the principal of and |
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300 | 300 | | interest on such bonds and of the sinking fund or reserve fund |
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301 | 301 | | payments agreed to be made in respect of such bonds all or any part |
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302 | 302 | | of the gross or net revenues thereafter received by the District in |
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303 | 303 | | respect of the property, real, personal, or mixed, to be acquired |
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304 | 304 | | and/or constructed with such bonds or the proceeds thereof, or all |
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305 | 305 | | or any part of the gross or net revenues thereafter received by the |
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306 | 306 | | District from whatever source derived; |
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307 | 307 | | (d) prescribing the purposes to which such bonds or any |
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308 | 308 | | bonds thereafter to be issued, or the proceeds thereof, may be |
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309 | 309 | | applied; |
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310 | 310 | | (e) agreeing to fix and collect rates and charges sufficient |
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311 | 311 | | to produce revenues adequate to pay (1) all expenses necessary to |
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312 | 312 | | the operation and maintenance and replacements and additions to the |
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313 | 313 | | properties and facilities of the District; (2) the principal of, |
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314 | 314 | | and the interest and premium, if any, on bonds issued under this Act |
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315 | 315 | | as and when the same became due and payable; (3) all sinking fund |
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316 | 316 | | and/or reserve fund payments agreed to be made in respect of any |
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317 | 317 | | such bonds out of such revenues as and when the same became due and |
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318 | 318 | | payable, and to fulfill the terms of any agreements made with the |
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319 | 319 | | holders of such bonds and/or with any person on their behalf and to |
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320 | 320 | | discharge all other lawful obligations of the District as and when |
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321 | 321 | | the same become due; |
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322 | 322 | | (f) prescribing limitations upon the issuance of additional |
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323 | 323 | | bonds and subordinate lien bonds and upon the agreements which may |
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324 | 324 | | be made with the purchasers and successive holders thereof; |
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325 | 325 | | (g) with regard to the construction, extension, |
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326 | 326 | | improvement, reconstruction, operation, maintenance, and repair of |
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327 | 327 | | the properties of the District and carrying of insurance upon all or |
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328 | 328 | | any part of said properties covering loss or damage or loss of use |
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329 | 329 | | and occupancy resulting from specified risks; |
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330 | 330 | | (h) fixing the procedure, if any, by which, if the District |
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331 | 331 | | shall so desire, the terms of any contract with the holders of such |
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332 | 332 | | bonds may be amended or abrogated, the amount of bonds the holders |
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333 | 333 | | of which must consent thereto, and the manner in which such consent |
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334 | 334 | | may be given; |
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335 | 335 | | (i) for the execution and delivery by the District to a bank |
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336 | 336 | | or trust company authorized by law to accept trusts, or to the |
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337 | 337 | | United States of America or any officer or agency thereof, of |
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338 | 338 | | indentures and agreements for the benefit of the holders of such |
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339 | 339 | | bonds and such other provisions as may be customary in such |
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340 | 340 | | indentures or agreements; and |
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341 | 341 | | (j) such other provisions, [not inconsistent with the |
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342 | 342 | | provisions of this Act,] as the Board may approve. |
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343 | 343 | | (k) The Board may declare an emergency in the matter of |
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344 | 344 | | funds not being available to pay principal of and interest on any |
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345 | 345 | | bonds of the District or to meet any other needs of the District and |
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346 | 346 | | may issue bond anticipation notes or enter into a loan to pay the |
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347 | 347 | | costs to meet the emergency need. A loan under this section may be |
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348 | 348 | | payable from district revenues or the proceeds of a future series of |
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349 | 349 | | bonds. Bond anticipation notes may bear interest at any rate or |
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350 | 350 | | rates not to exceed 10 percent and shall mature within one (1) year |
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351 | 351 | | of their date. The bond anticipation notes so issued will be taken |
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352 | 352 | | up with the proceeds of bonds, or the bonds may be issued and |
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353 | 353 | | delivered in exchange for and in substitution of such notes. |
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354 | 354 | | (l) Before any bonds shall be sold or exchanged or |
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355 | 355 | | substituted by the District, a certified copy of the proceedings of |
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356 | 356 | | the issuance thereof, including the form of such bonds, together |
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357 | 357 | | with any other information which the Attorney General of the State |
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358 | 358 | | of Texas may require, shall be submitted to the Attorney General, |
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359 | 359 | | and if he shall find that such bonds have been issued in accordance |
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360 | 360 | | with law, and if he shall approve such bonds, he shall execute a |
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361 | 361 | | certificate to that effect which shall be filed in the office of the |
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362 | 362 | | Comptroller of the State of Texas and be recorded in a record kept |
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363 | 363 | | for that purpose. No bonds shall be issued until the same shall |
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364 | 364 | | have been registered by the Comptroller, who shall so register the |
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365 | 365 | | same if the Attorney General shall have filed with the Comptroller |
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366 | 366 | | his certificate approving the bonds and the proceedings for the |
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367 | 367 | | issuance thereof as hereinabove provided. |
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368 | 368 | | (m) All bonds approved by the Attorney General as aforesaid, |
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369 | 369 | | and registered by the Comptroller as aforesaid, and issued in |
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370 | 370 | | accordance with the proceedings so approved shall be valid and |
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371 | 371 | | binding obligations of the District and shall be incontestable for |
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372 | 372 | | any cause from and after the time of such registration. |
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373 | 373 | | (n) If any bonds recite that they are secured by a pledge of |
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374 | 374 | | the proceeds of a contract, lease, sale or other agreement (herein |
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375 | 375 | | called "contract"), a copy of such contract and the proceedings of |
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376 | 376 | | the contracting parties will also be submitted to the Attorney |
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377 | 377 | | General. If such bonds have been authorized and such contracts made |
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378 | 378 | | in compliance with law, the Attorney General shall approve the |
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379 | 379 | | bonds and contracts, and the bonds shall then be registered by the |
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380 | 380 | | Comptroller of Public Accounts. When so approved, such bonds and |
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381 | 381 | | the contracts shall be valid and binding and shall be incontestable |
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382 | 382 | | for any cause from and after the time of such registration. |
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383 | 383 | | (o) The District is authorized to make and issue bonds |
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384 | 384 | | (herein called "refunding bonds") for the purpose of refunding or |
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385 | 385 | | refinancing any outstanding bonds or notes authorized and issued by |
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386 | 386 | | the District pursuant to this Act or other law (herein called |
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387 | 387 | | "bonds") and the interest and premium, if any, thereon to maturity |
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388 | 388 | | or on any earlier redemption date specified in the resolution |
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389 | 389 | | authorizing the issuance of the refunding bonds. Such refunding |
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390 | 390 | | bonds may be issued to refund more than one series of outstanding |
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391 | 391 | | bonds, may combine the pledges of the outstanding bonds for the |
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392 | 392 | | security of the refunding bonds, or may be secured by other or |
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393 | 393 | | additional revenues. All provisions of this Act with reference to |
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394 | 394 | | the issuance of bonds, the terms and provisions thereof, their |
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395 | 395 | | approval by the Attorney General, and the remedies of the |
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396 | 396 | | bondholders shall be applicable to refunding bonds. Refunding |
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397 | 397 | | bonds shall be registered by the Comptroller upon surrender and |
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398 | 398 | | cancellation of the bonds to be refunded, but in lieu thereof, the |
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399 | 399 | | resolution authorizing the issuance of refunding bonds may provide |
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400 | 400 | | that they shall be sold and the proceeds thereof deposited at the |
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401 | 401 | | places at which the original bonds are payable, in which case the |
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402 | 402 | | refunding bonds may be issued in an amount sufficient to pay the |
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403 | 403 | | interest and premium, if any, on the original bonds to their |
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404 | 404 | | maturity date or specified earlier redemption date, and the |
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405 | 405 | | Comptroller will register them without concurrent surrender and |
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406 | 406 | | cancellation of the original bonds. The District may also refund |
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407 | 407 | | any outstanding bonds in the manner provided by any applicable |
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408 | 408 | | General Law. |
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409 | 409 | | (p) All bonds issued by the District pursuant to the |
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410 | 410 | | provisions of this Act shall constitute investment securities |
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411 | 411 | | within the meaning of the Uniform Commercial Code. |
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412 | 412 | | (q) This Act, without reference to other statutes of the |
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413 | 413 | | State of Texas, shall constitute full authority for the |
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414 | 414 | | authorization and issuance of bonds hereunder, and no other Act or |
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415 | 415 | | law with regard to the authorization or issuance of obligations or |
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416 | 416 | | the deposit of the proceeds thereof, or in any impeding or |
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417 | 417 | | restricting the carrying out of the acts herein authorized to be |
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418 | 418 | | done shall be construed as applying to any proceedings taken |
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419 | 419 | | hereunder or acts done pursuant hereto. |
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420 | 420 | | Sec. 8. (a) When any of such revenues are pledged to the |
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421 | 421 | | payment of any bonds issued by said District or loans received by |
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422 | 422 | | the District, it shall be the right and duty of the District's Board |
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423 | 423 | | of Directors to cause to be fixed, maintained and enforced charges, |
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424 | 424 | | fees or tolls for services rendered by properties and facilities, |
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425 | 425 | | the revenues of which have been pledged, at rates and amounts at |
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426 | 426 | | least sufficient to comply with and carry out the covenants and |
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427 | 427 | | provisions contained in the order or orders authorizing the |
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428 | 428 | | issuance of said bonds. |
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429 | 429 | | (b) Regardless of whether the revenues are pledged to the |
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430 | 430 | | payment of bonds, the [The] District shall have the right to impose |
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431 | 431 | | penalties for failure to pay, when due, such charges, fees or tolls. |
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432 | 432 | | SECTION 7. (a) The legal notice of the intention to |
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433 | 433 | | introduce this Act, setting forth the general substance of this |
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434 | 434 | | Act, has been published as provided by law, and the notice and a |
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435 | 435 | | copy of this Act have been furnished to all persons, agencies, |
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436 | 436 | | officials, or entities to which they are required to be furnished |
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437 | 437 | | under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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438 | 438 | | Government Code. |
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439 | 439 | | (b) The governor, one of the required recipients, has |
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440 | 440 | | submitted the notice and Act to the Texas Commission on |
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441 | 441 | | Environmental Quality. |
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442 | 442 | | (c) The Texas Commission on Environmental Quality has filed |
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443 | 443 | | its recommendations relating to this Act with the governor, the |
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444 | 444 | | lieutenant governor, and the speaker of the house of |
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445 | 445 | | representatives within the required time. |
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446 | 446 | | (d) All requirements of the constitution and laws of this |
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447 | 447 | | state and the rules and procedures of the legislature with respect |
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448 | 448 | | to the notice, introduction, and passage of this Act are fulfilled |
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449 | 449 | | and accomplished. |
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450 | 450 | | SECTION 8. This Act takes effect immediately if it receives |
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451 | 451 | | a vote of two-thirds of all the members elected to each house, as |
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452 | 452 | | provided by Section 39, Article III, Texas Constitution. If this |
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453 | 453 | | Act does not receive the vote necessary for immediate effect, this |
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454 | 454 | | Act takes effect September 1, 2019. |
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