81C24(3) KEL

 

CHAPTER 8279. HORSEPEN BAYOU MUNICIPAL UTILITY DISTRICT OF

HARRIS COUNTY, TEXAS

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 8279.001.  DEFINITIONS ...............................  2

Sec. 8279.002.  NATURE OF DISTRICT ........................  2

Sec. 8279.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE ....  4

Sec. 8279.004.  DISTRICT TERRITORY ........................  5

Sec. 8279.005.  EXPANSION OF DISTRICT .....................  7

Sec. 8279.006.  STATE POLICY REGARDING WASTE DISPOSAL ..... 10

[Sections 8279.007-8279.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Sec. 8279.051.  COMPOSITION OF BOARD ...................... 13

Sec. 8279.052.  APPOINTMENT OF TREASURER .................. 14

Sec. 8279.053.  DIRECTOR'S AND TREASURER'S BONDS .......... 14

Sec. 8279.054.  ABSENCE OR INACTION OF BOARD PRESIDENT .... 16

Sec. 8279.055.  DISTRICT OFFICE ........................... 16

[Sections 8279.056-8279.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Sec. 8279.101.  MUNICIPAL UTILITY DISTRICT POWERS ......... 21

Sec. 8279.102.  ADDITIONAL POWERS ......................... 24

Sec. 8279.103.  EMINENT DOMAIN ............................ 27

Sec. 8279.104.  COST OF RELOCATING OR ALTERING PROPERTY ... 27

Sec. 8279.105.  NOTICE OF ELECTION ........................ 28

[Sections 8279.106-8279.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Sec. 8279.151.  TAX METHOD ................................ 28

Sec. 8279.152.  DISTRICT ACCOUNTS ......................... 29

Sec. 8279.153.  COPY OF AUDIT REPORT ...................... 29

Sec. 8279.154.  PAYMENT OF TAX OR ASSESSMENT NOT

                  REQUIRED ................................ 31

Sec. 8279.155.  DEPOSITORY ................................ 32

[Sections 8279.156-8279.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Sec. 8279.201.  AUTHORITY TO ISSUE BONDS .................. 33

Sec. 8279.202.  LOST OR MUTILATED BONDS ................... 33

Sec. 8279.203.  USE OF BOND PROCEEDS DURING

                  CONSTRUCTION ............................ 33

Sec. 8279.204.  REFUNDING BONDS ........................... 34

CHAPTER 8279. HORSEPEN BAYOU MUNICIPAL UTILITY DISTRICT OF

HARRIS COUNTY, TEXAS

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 8279.001.  DEFINITIONS.  In this chapter:

(1)  "Board" means the board of directors of the district.

(2)  "Director" means a member of the board.

(3)  "District" means the Horsepen Bayou Municipal Utility District of Harris County, Texas.  (Acts 61st Leg., R.S., Ch. 838, Sec. 1 (part); New.)

Source Law

Sec. 1.  … [a … district …] to be known as "Horsepen Bayou Municipal Utility District of Harris County, Texas," hereinafter called the "District," … .

Revisor's Note

The definitions of "board" and "director" are added to the revised law for drafting convenience and to eliminate frequent, unnecessary repetition of the substance of the definitions.

Revised Law

Sec. 8279.002.  NATURE OF DISTRICT.  The district is a municipal utility district and a conservation and reclamation district in Harris County created under Section 59, Article XVI, Texas Constitution.  (Acts 61st Leg., R.S., Ch. 838, Sec. 1 (part); New.)

Source Law

Sec. 1.  Under and pursuant to the provisions of Article XVI, Section 59 of the Constitution of Texas, a conservation and reclamation district is hereby created and established in Harris County, Texas, … which shall be a governmental agency and a body politic and corporate… .

Revisor's Note

(1)  Section 1, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district is "created and established" in Harris County, Texas.  The revised law omits "established" because the meaning of that word is included in the meaning of "created."

(2)  Section 1, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to the district as "a governmental agency and a body politic and corporate."  The revised law omits those references because they duplicate a portion of Section 59(b), Article XVI, Texas Constitution, which provides that a conservation and reclamation district is a governmental agency and a body politic and corporate.

(3)  The revised law adds a reference to the district as a "municipal utility district" because the district was converted from a water control and improvement district to a municipal utility district on March 6, 1979, by order of the Texas Water Commission.  See Sections 54.030-54.036, Water Code.  That order expressly states that the district does not "retain any of the provisions of the Code under which it has heretofore been operating" (Chapter 51, Water Code).  Under both that order and Section 54.034, Water Code, the district now operates under Chapter 54, Water Code.  Throughout this chapter, references to water control and improvement districts and references to Chapter 51, Water Code (the chapter on water control and improvement districts), have been revised to reflect the district's conversion. In addition, as indicated throughout this chapter, the revised law omits law that is superseded by Chapter 54, Water Code, or that duplicates law contained in that chapter.

Revised Law

Sec. 8279.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a) The district is created to serve a public use and benefit.

(b)  All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by Section 59, Article XVI, Texas Constitution.

(c)  The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(d)  The accomplishment of the purposes stated in this chapter is for the benefit of the people of this state and for the improvement of their property and industries.  The district in carrying out the purposes of this chapter will be performing an essential public function under the Texas Constitution.  (Acts 61st Leg., R.S., Ch. 838, Secs. 1 (part), 4, 22 (part).)

Source Law

Sec. 1.  … The creation and establishment of the District is hereby declared to be essential to the accomplishment of the purposes of Article XVI, Section 59 of the Constitution of Texas.

Sec. 4.  It is determined and found that all of the land and other property included within the boundaries of the District will be benefited by the works and project which are to be accomplished by the District pursuant to the powers conferred by the provisions of Article XVI, Section 59, of the Constitution of Texas, and that said District was and is created to serve a public use and benefit.

Sec. 22.  The accomplishment of the purposes stated in this Act being for the benefit of the people of this State and for the improvement of their properties and industries, the District in carrying out the purposes of this Act will be performing an essential public function under the Constitution, and … .

Revisor's Note

Section 1, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, states that the "creation and establishment" of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.  The revised law omits "establishment" because its meaning is included in the meaning of "creation."

Revised Law

Sec. 8279.004.  DISTRICT TERRITORY.  (a) The district is composed of the territory described by Section 2, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, as that territory may have been modified under:

(1)  Subchapter H, Chapter 54, Water Code;

(2)  Subchapter J, Chapter 49, Water Code;

(3)  Section 9, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969; or

(4)  other law.

(b)  The boundaries and field notes of the district form a closure.  A mistake in copying the field notes in the legislative process or another mistake in the field notes does not affect:

(1)  the district's organization, existence, or validity;

(2)  the district's right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;

(3)  the district's right to impose a tax; or

(4)  the legality or operation of the district or the board.  (Acts 61st Leg., R.S., Ch. 838, Sec. 3; New.)

Source Law

Sec. 3.  It is determined and found that the boundaries and field notes of the District form a closure; and if any mistake is made in copying the field notes in the legislative process, or otherwise a mistake is made in the field notes, it shall in no way affect the organization, existence and validity of the District, or the right of the District to issue any type of bonds or refunding bonds for the purposes for which the District is created, or to pay the principal and interest thereon, or the right to assess, levy and collect taxes, or in any other manner affect the legality or operation of the District or its governing body.

Revisor's Note

(1)  The revision of the law governing the district does not revise the statutory language describing the territory of the district to avoid the lengthy recitation of the description and because that description may not be accurate on the effective date of the revision or at the time of a later reading.  For the reader's convenience, the revised law includes a reference to the statutory description of the district's territory and references to authority to change the district's territory, including: (1) Subchapter H, Chapter 54, Water Code, applicable to the district after the district was converted to a municipal utility district governed by Chapter 54 of that code (see Sections 54.030-54.036 of that code and Revisor's Note (3) to Section 8279.002); (2) Subchapter J, Chapter 49, Water Code, applicable to the district under Sections 49.001 and 49.002 of that chapter; and (3) Section 9, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969.  The revised law also includes a reference to the general authority of the legislature to enact other laws to change the district's territory.

(2)  Section 3, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that a mistake does not affect the right of the district to issue "any type of bonds or refunding bonds."  The revised law omits the reference to "refunding bonds" because refunding bonds are included in the meaning of "any type of bonds."

(3)  Section 3, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to the district's right to "assess, levy and collect" a tax.  Throughout this chapter, the revised law substitutes "impose" for "levy" or "assess, levy and collect" because "impose" is the term generally used in Title 1, Tax Code, and includes the assessment, levying, and collection of a tax.

Revised Law

Sec. 8279.005.  EXPANSION OF DISTRICT.  (a)  If land is annexed to the district under Section 49.301, Water Code, the board may require the petitioners to:

(1)  assume the petitioners' pro rata share of the voted but unissued bonds of the district; and

(2)  authorize the board to impose a tax on the petitioners' property to pay for the bonds after the bonds have been issued.

(b)  If land is annexed to the district under Section 49.302, Water Code, the board may submit to the voters of the area to be annexed a proposition on the question of the assumption by the area to be annexed of its part of the voted but not yet issued or sold tax or tax-revenue bonds of the district and the imposition of an ad valorem tax on taxable property in the area to be annexed along with a tax in the rest of the district for the payment of the bonds.

(c)  If the petitioners consent or if the election results favorably, the district may issue its voted but unissued tax or tax-revenue bonds regardless of changes to district boundaries since the original voting or authorization of the bonds.  (Acts 61st Leg., R.S., Ch. 838, Sec. 9.)

Source Law

Sec. 9.  Land may be added to or annexed to the District in the manner now provided by Chapter 3A, Title 128, Revised Civil Statutes of Texas, 1925, as amended; provided, however, that the Board of Directors may require the petitioners, if land is being added in the manner provided by 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 Article 7880--75b, Vernon's Texas Civil Statutes, the Board may also submit a proposition to the property tax-paying 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.

Revisor's Note

(1)  Section 9, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district may add or annex land in the manner provided by Chapter 3A, Title 128, Revised Statutes.  The revised law omits that provision as unnecessary.  The relevant provisions of that statute were codified by Chapter 58, Acts of the 62nd Legislature, Regular Session, 1971, as Subchapter O, Chapter 51, Water Code.  After the district converted to a municipal utility district in 1979, that subchapter no longer applied to the district and Subchapter H, Chapter 54, Water Code, applied instead, as described by Revisor's Note (3) to Section 8279.002.  Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed some of the relevant provisions of Subchapter H, Chapter 54, Water Code, and enacted Subchapter J, Chapter 49, Water Code, to govern the addition of land to a municipal utility district and certain other districts.  Subchapter J, Chapter 49, Water Code, applies to the district without an express reference to Subchapter J by this chapter.  The remaining relevant provisions of Subchapter H, Chapter 54, Water Code, apply to the district under Section 54.034, Water Code, without an express reference to those sections by this chapter.

(2)  Section 9, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to Article 7880--75, Vernon's Texas Civil Statutes.  Article 7880--75 was codified by Chapter 58, Acts of the 62nd Legislature, Regular Session, 1971, as Sections 51.714-51.717, Water Code, relating to the addition of land to a water control and improvement district by the petition of the landowner.  After the district converted to a municipal utility district in 1979, those sections no longer applied to the district.  Instead, Sections 54.711-54.715, Water Code, applied to the district under Section 54.034 of that code.  See Revisor's Note (3) to Section 8279.002.  Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Sections 54.711-54.715, Water Code, and enacted Section 49.301, Water Code, to govern the addition of land to a municipal utility district by the petition of the landowner.  The revised law is drafted accordingly.

(3)  Section 9, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to Article 7880--75b, Vernon's Texas Civil Statutes.  Article 7880--75b was codified by Chapter 58, Acts of the 62nd Legislature, Regular Session, 1971, as Sections 51.718-51.724, Water Code, relating to the addition of land to a water control and improvement district by the petition of less than all the landowners.  After the district converted to a municipal utility district in 1979, those sections no longer applied to the district.  Instead, Sections 54.716-54.726, Water Code, applied to the district under Section 54.034 of that code.  See Revisor's Note (3) to Section 8279.002.  Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Sections 54.716-54.726, Water Code, and enacted Section 49.302, Water Code, to govern the addition of land to a municipal utility district by the petition of less than all the landowners.  The revised law is drafted accordingly.

(4)  Section 9, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to "property tax-paying voters."  The revised law omits the reference to "property tax-paying" because in Hill v. Stone, 421 U.S. 289, 95 S. Ct. 1637 (1975), the United States Supreme Court determined that property ownership as a qualification for voting is an unconstitutional denial of equal protection.

Revised Law

Sec. 8279.006.  STATE POLICY REGARDING WASTE DISPOSAL.  The district's powers and duties are subject to the state policy of encouraging the development and use of integrated area-wide waste collection, treatment, and disposal systems to serve the waste disposal needs of this state's residents, if integrated systems can reasonably be provided for an area, so as to avoid the economic burden on residents and the effect on state water quality caused by the construction and operation of numerous small waste collection, treatment, and disposal facilities.  (Acts 61st Leg., R.S., Ch. 838, Sec. 5 (part).)

Source Law

Sec. 5.  …

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 economical 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.

Revisor's Note

Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to "citizens" of the state.  The revised law substitutes "residents" for "citizens" because, in the context of this section, "citizens" and "residents" are synonymous and "residents" is more commonly used.

Revisor's Note

(End of Subchapter)

(1)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the act prevails over any general law that applies to water control and improvement districts and that is in conflict or inconsistent with the act.  The general law applicable to water control and improvement districts no longer applies to the district because the district converted to a municipal utility district.  See Revisor's Note (3) to Section 8279.002.  The revised law omits the provision rather than codifying the provision and substituting a reference to municipal utility districts for the reference to water control and improvement districts because the provision duplicates, in substance, Section 311.026, Government Code (Code Construction Act).  The omitted law reads:

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 water control and improvement districts created under authority of Article XVI, Section 59 of the Constitution of Texas including without limitation those conferred by Chapter 3A, Title 128, Revised Civil Statutes of Texas, 1925;] 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… .

(2)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that any general law relating to water control and improvement districts is adopted and incorporated by reference.  The general law applicable to water control and improvement districts no longer applies to the district because the district converted to a municipal utility district.  See Revisor's Note (3) to Section 8279.002.  The revised law omits the provision rather than codifying the provision and substituting a reference to municipal utility districts for the reference to water control and improvement districts because it is not necessary to duplicate by means of adoption and incorporation the substance of general laws applicable to the district.  The omitted law reads:

Sec. 5.  … All such General Laws are hereby adopted and incorporated by reference with the same effect as if incorporated in full in this Act… .

(3)  Section 21, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that Article 970a, Vernon's Texas Civil Statutes (Municipal Annexation Act), does not apply to the creation of the district.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 21.  This District is hereby created notwithstanding any of the provisions of the Municipal Annexation Act, being Article 970a, Vernon's Texas Civil Statutes, as amended, and to the extent of the creation of the District only, said Article 970a shall have no application… .

(4)  Section 21, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district is subject to certain other laws.  The revised law omits that provision because the laws cited apply by their own terms.  Section 21 refers to Article 970a, Vernon's Texas Civil Statutes (Municipal Annexation Act).  In 1987, Article 970a was codified as Chapters 42 and 43, Local Government Code, and Section 212.003, Local Government Code.  Section 21 also refers to Article 1182C--1, Vernon's Texas Civil Statutes, an erroneous reference to Article 1182c--1, Vernon's Texas Civil Statutes.  In 1987, Article 1182c--1 was codified as Sections 43.074, 43.075, and 43.081, Local Government Code.

The revised law omits "as amended" because, under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute, unless expressly provided otherwise.  The omitted law reads:

Sec. 21.  … In all other respects, the District hereby created is expressly made subject to all provisions of said Article 970a. District shall also be subject to the provisions of Article 1182C--1, Vernon's Texas Civil Statutes. as amended.

[Sections 8279.007-8279.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT ADMINISTRATION

Revised Law

Sec. 8279.051.  COMPOSITION OF BOARD.  The board consists of five elected directors.  (Acts 61st Leg., R.S., Ch. 838, Sec. 10 (part).)

Source Law

Sec. 10.  All powers of the District shall be exercised by a Board of five Directors… .  Succeeding Directors shall be elected or … .

Revisor's Note

(1)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that "[a]ll powers of the District shall be exercised by" the board.  The revised law omits the quoted language because it duplicates, in substance, provisions of Sections 49.051 and 49.057, Water Code.  As indicated throughout this chapter, the revised law omits law that is superseded by Chapter 49, Water Code, or that duplicates law contained in that chapter.  Chapter 49, Water Code, applies to the district under Sections 49.001 and 49.002 of that chapter.

(2)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to "[s]ucceeding [d]irectors" to distinguish the succeeding directors from the initial directors named in that section.  The revised law omits "succeeding" because all provisions referring to initial directors are omitted as executed and the distinction is no longer required.

Revised Law

Sec. 8279.052.  APPOINTMENT OF TREASURER.  The board may appoint the treasurer.  (Acts 61st Leg., R.S., Ch. 838, Sec. 10 (part).)

Source Law

Sec. 10.  … The Treasurer may be appointed by the Board, and … .

Revised Law

Sec. 8279.053.  DIRECTOR'S AND TREASURER'S BONDS.  (a) Each director shall qualify by giving bond in the amount of $5,000 for the faithful performance of the director's duties.

(b)  The treasurer shall give bond in the amount required by the board.  The treasurer's bond shall be conditioned on the treasurer's faithful accounting for all money that comes into the treasurer's custody as treasurer of the district.  (Acts 61st Leg., R.S., Ch. 838, Sec. 10 (part).)

Source Law

Sec. 10.  … Each Director shall qualify by subscribing to the Constitutional oath of office and giving bond in the amount of Five Thousand Dollars ($5,000) for the faithful performance of his duties.  … The Treasurer … 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.

Revisor's Note

(1)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, requires each director to qualify "by subscribing to the Constitutional oath of office."  The revised law omits the quoted language because it duplicates, in substance, Section 1, Article XVI, Texas Constitution.

(2)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district shall pay the cost of a director's bond and that the bond shall be approved by the board and recorded in the district office.  The revised law omits that provision because it duplicates, in substance, Sections 49.055(c) and (d), Water Code.  The omitted law reads:

Sec. 10.  … The cost of such bond shall be paid by the District… . 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… .

(3)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, requires each director to give bond and provides that "[s]uch bond" shall be approved by the county judge and filed in the office of the county clerk within which the district is located. That section also provides that the bonds of directors elected or appointed after the initial directors shall be approved by the board and shall be recorded in a record kept for that purpose in the district office. Because the provision requiring directors' bonds to be approved by the county judge and filed in the county clerk's office is followed by a provision requiring bonds of successor directors to be approved by the board and recorded in the district's records, it appears from the context that the provision requiring directors' bonds to be approved by the county judge and filed in the office of the county clerk applies only to the bond of an initial director. Accordingly, the revised law omits that provision as executed. The omitted law reads:

Sec. 10.  … Such bond shall be approved by the County Judge and filed in the office of the County Clerk within which the District is located… .

Revised Law

Sec. 8279.054.  ABSENCE OR INACTION OF BOARD PRESIDENT.  (a)  When the board president is absent or fails or declines to act, the board vice president shall perform all duties and exercise all power this chapter or general law gives the president.

(b)  If the board president is absent from a board meeting:

(1)  the board vice president may sign an order or other action adopted at the meeting; or

(2)  the board may authorize the president to sign the order or other action.  (Acts 61st Leg., R.S., Ch. 838, Sec. 10 (part).)

Source Law

Sec. 10.  … 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… .

Revised Law

Sec. 8279.055.  DISTRICT OFFICE.  (a) Except as provided by this section, the board shall designate, establish, and maintain a district office as provided by Section 49.062, Water Code.

(b)  The board may establish a second district office outside the district.  If the board establishes a second district office, the board shall give notice of the location of that office by:

(1)  filing a copy of the board resolution that establishes the location of the office:

(A)  with the Texas Commission on Environmental Quality; and

(B)  in the municipal utility district records of the county in which the district is located; and

(2)  publishing notice of the location of the office in a newspaper of general circulation in the county in which the district is located.

(c)  A district office that is a private residence, office, or dwelling is a public place for matters relating to the district's business.

(d)  The board shall provide notice of any change in the location of the district office outside the district in the manner required by Subsection (b).  (Acts 61st Leg., R.S., Ch. 838, Sec. 15.)

Source Law

Sec. 15.  The Board of Directors shall designate, establish and maintain a District Office as provided by 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 Water Rights Commission, by filing a true copy in the 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.

Revisor's Note

(1)  Section 15, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to "Article 7880--44."  Article 7880--44, Vernon's Texas Civil Statutes, was codified by Chapter 58, Acts of the 62nd Legislature, Regular Session, 1971, as Sections 51.094 and 51.096, Water Code, relating to the district office and the minutes and records of the district, respectively.  After the district converted to a municipal utility district in 1979, those sections no longer applied to the district.  See Revisor's Note (3) to Section 8279.002.  Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, enacted Section 49.062, Water Code, to govern the designation of offices for certain districts, including municipal utility districts.  The revised law is drafted accordingly.

(2)  Section 15, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to a "true copy" of a document.  The revised law omits "true" because a copy, by definition, accurately reflects the content of the original document.

(3)  Section 15, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to the "Texas Water Rights Commission."  The revised law substitutes "Texas Commission on Environmental Quality" for "Texas Water Rights Commission" to reflect the current name of the agency with the relevant regulatory authority.

Revisor's Note

(End of Subchapter)

(1)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that each director shall serve until the director's successor is elected or appointed and qualified.  The revised law omits that provision because Section 17, Article XVI, Texas Constitution, requires an officer in this state to continue to perform the officer's official duties until a successor has qualified.  The omitted law reads:

Sec. 10.  …  Each Director shall serve for his term of office as herein provided, and thereafter until his successor shall be elected or appointed and qualified… .

(2)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, names the initial directors, requires them to qualify to serve as directors before the first board meeting, provides for filling vacancies in the office of director, and provides that the named directors or their successors shall serve until the second Tuesday in January 1971. The revised law omits as executed the provisions naming the initial directors, requiring them to qualify by a certain time, and specifying the expiration of their terms.  Because the provision specifying the procedure for filling vacancies in the office of director is followed by a provision requiring the named initial directors or their successors to serve until a specified date in 1971, it appears from the context that the provision relating to the filling of vacancies also applies only to the initial directors. Accordingly, the revised law also omits that language as executed. The omitted law reads:

Sec. 10.  … 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:  John S. Neilson, Jr., James P. Bailey, James P. Grizzard, Marjorie Cieslewitz, and James L. Grizzard.

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 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… .

(3)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides for directors to be elected or appointed and to serve for the term and in the manner provided by Article 7880--37, Vernon's Texas Civil Statutes.  Article 7880--37 was codified by Chapter 58, Acts of the 62nd Legislature, Regular Session, 1971, as Section 51.073, Water Code.  After the district converted to a municipal utility district in 1979, that section no longer applied to the district.  Instead, Section 54.103, Water Code, applied to the district under Section 54.034 of that code.  See Revisor's Note (3) to Section 8279.002.  Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Section 54.103, Water Code, and enacted Section 49.103, Water Code, to govern the terms of office and manner of election of directors of a municipal utility district and certain other districts.  Section 49.103, Water Code, applies to the district without an express reference to that section by this chapter.  The revised law omits "appointed" because it is clear from the context of Section 10 that the reference applies only to directors appointed to fill vacancies as provided by Chapter 49, Water Code. The omitted law reads:

Sec. 10.  …  [Succeeding Directors shall be elected or] appointed and shall serve for the term and in the manner provided by Article 7880--37, Vernon's Texas Civil Statutes… .

(4)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that three directors constitute a quorum and that a concurrence of three directors is sufficient in all matters relating to the business of the district, including certain construction matters.  The revised law omits that provision because it duplicates, in substance, Section 49.053, Water Code.  The omitted law reads:

Sec. 10.  …  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… .

(5)  Section 10, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides for the selection of officers by the board and the powers of the board's president.  The revised law omits those provisions because they duplicate, in substance, Section 49.054, Water Code.  The omitted law reads:

Sec. 10.  …  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… .

[Sections 8279.056-8279.100 reserved for expansion]

SUBCHAPTER C.  POWERS AND DUTIES

Revised Law

Sec. 8279.101.  MUNICIPAL UTILITY DISTRICT POWERS.  (a)  The district has all of the rights, powers, privileges, and functions conferred and imposed by the general law of this state relating to municipal utility districts created under Section 59, Article XVI, Texas Constitution, including those conferred by Chapters 49 and 54, Water Code.

(b)  The district may exercise inside or outside the district's boundaries any of the rights or powers granted by this chapter or under the general law relating to municipal utility districts, including the provision of water or sewerage service.  (Acts 61st Leg., R.S., Ch. 838, Secs. 5 (part), 16 (part).)

Source Law

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 water control and improvement districts created under authority of Article XVI, Section 59 of the Constitution of Texas including without limitation those conferred by Chapter 3A, Title 128, Revised Civil Statutes of Texas, 1925; … .

Sec. 16.  The District may exercise any of the rights, powers and authorities granted in this Act or under the general laws relating to water control and improvement districts within or without the boundaries of the District, and is specifically authorized to exercise any of the rights, powers and authorities in order to provide water and sewerage services to areas within or without the boundaries of the District… .

Revisor's Note

(1)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, states that the district "shall have and exercise, and is hereby vested with," certain powers.  The revised law substitutes "has" for the quoted language because in the context of this section, the terms are synonymous and "has" is more commonly used.

(2)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to "rights, powers, privileges, authority and functions,"  and Section 16 of that chapter refers to "rights, powers and authorities."  The revised law omits "authority" and "authorities" as included in the meaning of "power" and "powers."

(3)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, states that the district has the rights, powers, privileges, authority, and functions conferred by the general laws of this state "now in force or hereafter enacted."  The revised law omits the quoted language because it is unnecessary under accepted general principles of statutory construction.  The "[g]eneral [l]aws of this [s]tate" means those laws "in force" at the time the provision was adopted.  It is not necessary to state that the district may be granted additional powers by later enacted laws because those laws apply on their own terms.

(4)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, grants the district certain powers, including "without limitation" the powers conferred by Chapter 3A, Title 128, Revised Statutes.  The revised law omits "without limitation" because Section 311.005(13), Government Code (Code Construction Act), provides that "includes" and "including" are terms of enlargement and not of limitation and do not create a presumption that components not expressed are excluded.

(5)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to "Chapter 3A, Title 128, Revised Civil Statutes of Texas, 1925."  The relevant provisions of that statute were codified by Chapter 58, Acts of the 62nd Legislature, Regular Session, 1971, as Chapter 51, Water Code.  After the district converted to a municipal utility district in 1979, Chapter 51, Water Code, no longer applied to the district.  Instead, Chapter 54, Water Code, applies to the district under Section 54.034 of that code.  See Revisor's Note (3) to Section 8279.002.  In 1995, Section 2, Chapter 715, Acts of the 74th Legislature, Regular Session, enacted Chapter 49, Water Code.  To reflect those changes, the revised law substitutes a reference to Chapters 49 and 54, Water Code, for the reference to "Chapter 3A, Title 128, Revised Civil Statutes of Texas, 1925."

(6)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to the continuing right of this state to supervise the district through the Texas Water Rights Commission.  The revised law omits the provision because the Texas Commission on Environmental Quality is the successor to the Texas Water Rights Commission, and therefore the provision duplicates, in substance, part of Section 12.081, Water Code, which applies to the district.  The omitted law reads:

Sec. 5.  …

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 Water Rights Commission… .

(7)  Section 16, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district "is specifically authorized to exercise any of the [district's] rights, powers and authorities in order to" take certain actions.  The revised law substitutes "may" for "is specifically authorized to" because that term is more concise and is the substantive equivalent of the quoted language.

Revised Law

Sec. 8279.102.  ADDITIONAL POWERS.  (a)  The district may:

(1)  make, purchase, construct, lease, or otherwise acquire property, works, facilities, existing improvements, or improvements to be made, constructed, or acquired that are:

(A)  inside or outside the district's boundaries; and

(B)  necessary to carry out the powers granted by this chapter or general law; or

(2)  enter into a contract with a person on terms the board considers desirable, fair, and advantageous for:

(A)  the purchase or sale of water;

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

(C)  the continuing and orderly development of land and property in the district through the purchase, construction, or installation of facilities, works, or improvements that the district is otherwise authorized to do or perform so that, to the greatest extent reasonably possible, considering sound engineering and economic practices, all of the land and property may ultimately receive the services of the facilities, works, or improvements; and

(D)  the performance of any of the powers granted by this chapter or the general law relating to municipal utility districts.

(b)  A contract under Subsection (a)(2) may not have a duration of more than 40 years.  (Acts 61st Leg., R.S., Ch. 838, Sec. 5 (part).)

Source Law

Sec. 5.  …

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 forty (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 water control and improvement districts… .

Revisor's Note

(1)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that, "[n]ot by way of limitation," the district has certain specified rights, powers, privileges, and functions.  The revised law omits the quoted language because it is an accepted general principle of statutory construction that a grant of a right, power, privilege, or function does not act as a limitation.  The general principle applies to this revision.

(2)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district "shall have and is hereby expressly granted the following rights, powers, privileges and functions" to take certain actions.  The revised law substitutes "may" for the quoted language because that term is more concise and is the substantive equivalent of the quoted language.

(3)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to the power of the district to enter into contracts with persons, "corporations, public or private, municipal corporations, political subdivisions of the State of Texas, and others."  The revised law omits the quoted language because under Section 311.005(2), Government Code (Code Construction Act), "person" is defined to include any legal entity.

(4)  Section 5, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district may enter into a contract on "terms and conditions" the board considers desirable, fair, and advantageous.  The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

Revised Law

Sec. 8279.103.  EMINENT DOMAIN.  The district may exercise the power of eminent domain only in a county in which the district is located.  (Acts 61st Leg., R.S., Ch. 838, Sec. 13 (part).)

Source Law

Sec. 13.  The power of eminent domain of the District shall be limited to the county or counties in which the District is situated… .

Revised Law

Sec. 8279.104.  COST OF RELOCATING OR ALTERING PROPERTY.  (a)  In this section, "sole expense" means the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of a facility described by Subsection (b) in providing comparable replacement without enhancement of the facility, after deducting from that cost the net salvage value of the old facility.

(b)  If the district's exercise of the power of eminent domain makes necessary the relocation, raising, rerouting, changing the grade, or alteration of the construction of a highway, a railroad, an electric transmission line, a telegraph or telephone property or facility, or a pipeline, the necessary action shall be accomplished at the sole expense of the district.  (Acts 61st Leg., R.S., Ch. 838, Sec. 13 (part).)

Source Law

Sec. 13.  …  In the event that the District, in the exercise of the power granted hereunder, makes necessary the relocation, raising, rerouting or changing the grade of, or altering the construction of, any highway, railroad, electric transmission line, telegraph or telephone properties and facilities, or pipeline, all such necessary relocation, raising, rerouting, changing of grade or alteration of construction shall be accomplished at the sole expense of the District.  The term "sole expense" shall mean the actual cost of such relocation, raising, lowering, rerouting, or change in grade or alteration of construction in providing comparable replacement without enhancement of such facilities, after deducting therefrom the net salvage value derived from the old facility.

Revised Law

Sec. 8279.105.  NOTICE OF ELECTION.  The board president or secretary may give notice of an election.  (Acts 61st Leg., R.S., Ch. 838, Sec. 19 (part).)

Source Law

Sec. 19.  Notice of all elections may be given under the hand of either the president or the secretary of the District… .

Revisor's Note

(End of Subchapter)

Section 13, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, states that the district may use public roadways, streets, alleys, or public easements.  The revised law omits the provision because it duplicates, in substance, Section 49.220, Water Code.  The omitted law reads:

Sec. 13.  … The District shall have the right, power and authority to use any and all public roadways, streets, alleys or public easements within or without the boundaries of the District in the accomplishment of its purposes without the necessity of securing a franchise… .

[Sections 8279.106-8279.150 reserved for expansion]

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 8279.151.  TAX METHOD.  (a)  The district shall use the ad valorem plan of taxation.

(b)  The board is not required to call or hold a hearing on the adoption of a plan of taxation.  (Acts 61st Leg., R.S., Ch. 838, Sec. 8.)

Source Law

Sec. 8.  The ad valorem plan of taxation shall be used by the District and it shall not be necessary for the Board of Directors to call or hold a hearing on the adoption of a plan of taxation.

Revised Law

Sec. 8279.152.  DISTRICT ACCOUNTS.  The district shall keep a complete system of the district's accounts.  (Acts 61st Leg., R.S., Ch. 838, Sec. 14 (part).)

Source Law

Sec. 14.  …

A complete system of accounts shall be kept by the District and … .

Revised Law

Sec. 8279.153.  COPY OF AUDIT REPORT.  A copy of the audit report prepared under Subchapter G, Chapter 49, Water Code, shall be delivered:

(1)  to each director; and

(2)  to a holder of at least 25 percent of the outstanding bonds of the district, on request.  (Acts 61st Leg., R.S., Ch. 838, Sec. 14 (part); New.)

Source Law

Sec. 14.  …  A written report of the audit shall be delivered to each member of the Board of Directors … a copy of such audit report shall be delivered upon request to the holder or holders of at least twenty-five percent (25%) of the then outstanding bonds of the District; and … .

Revisor's Note

(1)  Section 14, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to various audit procedures, including who may receive a copy of the audit report.  As detailed in the revisor's notes that follow, procedures that are superseded by Subchapter G, Chapter 49, Water Code, have been omitted as superseded by Section 49.191(b), Water Code, and the specific provisions in Subchapter G that conflict with Chapter 838, Acts of the 61st Legislature, Regular Session, 1969.  Section 49.191(b) states that Subchapter G "shall take precedence over all prior statutory enactments."  Subchapter G, Chapter 49, Water Code, was enacted in 1995 by Section 2, Chapter 715, Acts of the 74th Legislature, Regular Session.  For context and the convenience of the reader, the revised law adds a reference to the audit report required by Subchapter G, Chapter 49, Water Code.

(2)  Section 14, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that an annual audit of the district's affairs shall be prepared by an independent certified public accountant or a firm of independent certified public accountants of recognized integrity and ability.  The revised law omits that provision as superseded by Sections 49.191(b) and (c), Water Code (enacted by Section 2, Chapter 715, Acts of the 74th Legislature, Regular Session, 1995).  The omitted law reads:

Sec. 14.  …  an audit of its affairs for each year shall be prepared by an independent certified public accountant, or a firm of independent certified public accountants, of recognized integrity and ability… .

(3)  Section 14, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that a written report of the audit shall be delivered to each board member not later than 90 days after the close of each fiscal year.  The revised law omits the deadline for delivery of the report as superseded by Sections 49.191(b) and (d), Water Code (enacted by Section 2, Chapter 715, Acts of the 74th Legislature, Regular Session, 1995).  The omitted law reads:

Sec. 14.  …  [A written report of the audit shall be delivered to each member of the Board of Directors] not later than ninety (90) days after the close of each fiscal year; and … .

(4)  Section 14, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that at least five copies of the audit report shall be delivered to the district office and that one of those copies shall constitute a public record.  The revised law omits those provisions as superseded by Sections 49.191(b), 49.194(c), and 49.196(b), Water Code (enacted by Section 2, Chapter 715, Acts of the 74th Legislature, Regular Session, 1995).  The omitted law reads:

Sec. 14.  … at least five (5) additional copies of said audit shall be delivered to the office of the District, one of which shall be kept on file, and shall constitute a public record open to inspection by any interested person or persons within normal office hours; and … .

(5)  Section 14, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that one copy of the audit report shall be filed with the Texas Water Rights Commission.  The revised law omits that provision as superseded by Sections 49.191(b) and 49.194(a), Water Code (enacted by Section 2, Chapter 715, Acts of the 74th Legislature, Regular Session, 1995).  The omitted law reads:

Sec. 14.  …  one copy of such audit report shall be filed with the Texas Water Rights Commission… .

(6)  Section 14, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district shall pay the cost of the audit.  The revised law omits that provision because it duplicates Section 49.191(a), Water Code.  The omitted law reads:

Sec. 14.  … The cost of such audit shall be paid for by the District.

Revised Law

Sec. 8279.154.  PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED.  The district is not required to pay a tax or assessment on:

(1)  district property; or

(2)  a purchase made by the district.  (Acts 61st Leg., R.S., Ch. 838, Sec. 22 (part).)

Source Law

Sec. 22.  …  the District shall not be required to pay any tax or assessment on its properties or any part thereof or on any purchases made by the District.

Revised Law

Sec. 8279.155.  DEPOSITORY. (a) The board shall select one or more banks in this state to act as depository for the district's money.

(b)  To the extent that money in the depository bank is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds.

(c)  A director may be a shareholder in a bank that is a depository of district money.  (Acts 61st Leg., R.S., Ch. 838, Sec. 14 (part).)

Source Law

Sec. 14.  The Board of Directors of the District shall select any bank or banks in the State of Texas to act as depository or depositories for the funds of the District. To the extent that funds in the depository bank or banks are not insured by the Federal Deposit Insurance Corporation, they shall be secured in the manner provided by law for the security of county funds. Any Director of the District may be a shareholder in said depository bank or banks… .

Revisor's Note

Section 14, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to the district's "funds."  The revised law substitutes "money" for "funds" because, in the context of district funds, the meaning is the same and "money" is the more commonly used term.

Revisor's Note

(End of Subchapter)

Section 14, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district's fiscal year is January 1 to December 31 unless changed by the board.  The revised law omits the provision specifying the dates of the fiscal year as executed because the board has already changed the district's fiscal year.  The revised law omits the provision allowing the board to change the district's fiscal year because it duplicates Section 49.158, Water Code.  The omitted law reads:

Sec. 14.  … The fiscal year of the District shall be from January 1 to December 31 of the same year, unless and until changed by the Board of Directors… .

[Sections 8279.156-8279.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 8279.201.  AUTHORITY TO ISSUE BONDS.  The district may issue bonds to provide water and sewer service to areas inside or outside the boundaries of the district, regardless of whether the areas are contiguous or noncontiguous.  (Acts 61st Leg., R.S., Ch. 838, Sec. 16 (part).)

Source Law

Sec. 16.  …  The District may issue bonds to provide water and sewer service to areas within or without the boundaries of the district, whether such area or areas are contiguous or non-contiguous.

Revised Law

Sec. 8279.202.  LOST OR MUTILATED BONDS.  A trust indenture securing bonds issued under this chapter may provide for the issuance of bonds to replace lost or mutilated bonds.  (Acts 61st Leg., R.S., Ch. 838, Sec. 12 (part).)

Source Law

Sec. 12.  

…  [Such bonds … may be additionally secured by a deed of trust or mortgage lien] … . Such trust indenture, … may make provisions for … the issuance of bonds to replace lost or mutilated bonds, and … .

Revised Law

Sec. 8279.203.  USE OF BOND PROCEEDS DURING CONSTRUCTION.  (a)  The district may appropriate or set aside out of the proceeds from the sale of any bonds issued under this chapter an amount for the payment of interest, administrative, and operating expenses expected to accrue during a period of construction, as may be provided in the bond orders or resolutions.

(b)  For purposes of this section, the period of construction may not exceed three years.  (Acts 61st Leg., R.S., Ch. 838, Sec. 12 (part).)

Source Law

Sec. 12.  …

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 (3) years), as may be provided in the bond orders or resolutions, and … .

Revised Law

Sec. 8279.204.  REFUNDING BONDS.  (a)  By order or resolution adopted by the board, the district may issue revenue refunding bonds or tax-revenue refunding bonds to refund revenue bonds or tax-revenue bonds, whether original bonds or refunding bonds, previously issued by the district.

(b)  The comptroller shall register the refunding bonds on the surrender and cancellation of the bonds to be refunded.

(c)  Instead of issuing bonds to be registered on the surrender and cancellation of the bonds to be refunded, the district, in the order or resolution authorizing the issuance of the refunding bonds, may provide for the sale of the refunding bonds and the deposit of the proceeds in the place or places where the bonds to be refunded are payable.  In that case, the refunding bonds may be issued if an amount sufficient to pay the principal of and interest on the bonds to be refunded to their maturity dates, or to their option dates if according to their terms the bonds have been called for payment before maturity, has been deposited in the place or places where the bonds to be refunded are payable, and the comptroller shall register the refunding bonds without the surrender and cancellation of the bonds to be refunded.  (Acts 61st Leg., R.S., Ch. 838, Sec. 12 (part).)

Source Law

Sec. 12.  …

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… .

Revisor's Note

(1)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district "shall have the power and authority" to issue certain bonds.  The revised law substitutes "may" for the quoted language for the reason stated in Revisor's Note (2) to Section 8279.102.

(2)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that refunding bonds "shall be approved by the Attorney General as in the case of original bonds."  The revised law omits the quoted language because it is superseded by Section 1202.003, Government Code, enacted in 1987 as Section 3.002(a), Chapter 53, Acts of the 70th Legislature, 2nd Called Session (Article 717k-8, Vernon's Texas Civil Statutes).  That section applies to district bonds by application of Section 1202.001, Government Code.

(3)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to bonds that have been "duly" called for payment before their maturity.  The revised law omits "duly" in this context because it does not add to the clear meaning of the law.

Revisor's Note

(End of Subchapter)

(1)  Section 11, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district shall comply with the requirements of Article 7880--139, Vernon's Texas Civil Statutes.  Article 7880--139 was codified by Chapter 58, Acts of the 62nd Legislature, Regular Session, 1971, as Sections 51.421 and 51.422, Water Code.  After the district was converted to a municipal utility district in 1979, those sections no longer applied to the district.  Instead, Sections 54.516 and 54.517, Water Code, applied to the district under Section 54.034 of that code.  See Revisor's Note (3) to Section 8279.002.  Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Sections 54.516 and 54.517, Water Code, and enacted Sections 49.181 and 49.182, Water Code, to govern the authority of the Texas Commission on Environmental Quality over the issuance of district bonds and supervision by the commission of projects and improvements, respectively.  Sections 49.181 and 49.182, Water Code, apply to the district on their own terms, without an express reference to those sections in this chapter.  The omitted law reads:

Sec. 11.  The District shall comply with the requirements of Article 7880--139, Vernon's Texas Civil Statutes as it presently exists or as it may be hereafter amended.

(2)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, refers to the district's authority to issue bonds for specific purposes.  The revised law omits that provision because it duplicates Section 54.501, Water Code.  The omitted law reads:

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 … .

(3)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, authorizes the district to issue "negotiable" bonds and provides for the payment of those bonds.  The revised law omits the reference to "negotiable" bonds because Section 1201.041, Government Code, provides that a public security is a negotiable instrument.  Section 1201.041 applies to district bonds by application of Section 1201.002, Government Code.  The revised law omits the provision regarding the payment of district bonds because the provision duplicates, in substance, Section 54.503, Water Code.  The omitted law reads:

Sec. 12.  [The District is hereby authorized to issue] its negotiable tax bonds, revenue bonds, or tax and revenue [bonds] … .

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, … .

(4)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds shall be issued under Chapter 3A, Title 128, and Article 7880--90a, Vernon's Texas Civil Statutes.  Chapter 58, Acts of the 62nd Legislature, Regular Session, 1971, codified the relevant provisions of Chapter 3A, Title 128, as Chapter 51, Water Code.  The same act codified Article 7880--90a as Sections 51.450-51.454, Water Code.  The revised law omits the references to those laws because the district converted from a water control and improvement district governed by Chapter 51, Water Code, to a municipal utility district governed by Chapter 54, Water Code.  See Revisor's Note (3) to Section 8279.002.  The provisions of Chapter 54, Water Code, apply on their own terms.  The omitted law reads:

Sec. 12.  … said bonds shall be issued in the manner provided and as authorized by Article 7880--90a, Vernon's Texas Civil Statutes and Chapter 3A of Title 128, Vernon's Texas Civil Statutes, as presently or hereafter amended, … .

(5)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that an election is not required for bonds payable from revenues.  The revised law omits that provision because it duplicates, in substance, Section 54.505, Water Code.  The omitted law reads:

Sec. 12.  … 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.  …

(6)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that Chapter 3A, Title 128, Vernon's Texas Civil Statutes, applies to bonds issued under Section 12 except when Chapter 3A is inconsistent or in conflict with Section 12.  The revised law omits the provision for the reasons stated in Revisor's Note (4) to the end of this subchapter and Revisor's Note (1) to the end of Subchapter A.  The omitted law reads:

Sec. 12.  … except as the same may be inconsistent or in conflict with the provisions of this Act, the provisions of said Chapter 3A of Title 128, 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)… .

(7)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides for additional security for bonds.  The revised law omits that provision because it duplicates Section 54.504, Water Code.  The omitted law reads:

Sec. 12.  …

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 … 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… .

(8)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, specifies various provisions of bonds.  The revised law omits that provision because it duplicates Section 54.510, Water Code.  The omitted law reads:

Sec. 12.  …

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.  …

(9)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides for the use of bond proceeds to pay expenses incurred and to be incurred in the issuance, sale, and delivery of the bonds.  The revised law omits that provision because it duplicates, in substance, Section 49.155, Water Code.  The omitted law reads:

Sec. 12.  …

[From the proceeds of sale of any bonds issued hereunder, the District may appropriate or set aside out of the bond proceeds] … an amount necessary to pay all expenses incurred and to be incurred in the issuance, sale and delivery of the bonds… .

(10)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that money in a fund established or provided for in a bond order or resolution may be invested in securities as provided in the bond order or may be placed on interest-bearing time deposit.  The revised law omits that provision because it is superseded by Subchapter A, Chapter 2256, Government Code (enacted as Chapter 889, Acts of the 70th Legislature, Regular Session, 1987).  The omitted law reads:

Sec. 12.  … 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… .

(11)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that bond proceeds may be invested in securities of the United States or placed on interest-bearing time deposit.  The revised law omits that provision as superseded by Subchapter A, Chapter 2256, Government Code (enacted as Chapter 889, Acts of the 70th Legislature, Regular Session, 1987).  The omitted law reads:

Sec. 12.  … 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… .

(12)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that district bonds may be registered as to principal or as to principal and interest.  The revised law omits that provision because it duplicates Section 1201.024, Government Code.  That section applies to district bonds by application of Section 1201.002, Government Code.  The omitted law reads:

Sec. 12.  … 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… .

(13)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, requires the district to deliver its bonds to the attorney general for examination and approval.  The revised law omits that provision because it duplicates, in substance, Section 1202.003, Government Code.  Section 1202.003, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 12.  …

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 … .

(14)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that after approval the bonds shall be registered with the comptroller.  The revised law omits that provision as superseded by Section 1202.005, Government Code (enacted in 1987 as Section 3.002(c), Chapter 53, Acts of the 70th Legislature, 2nd Called Session).  Section 1202.005, Government Code, applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 12.  … after said Attorney General has approved the same, such bonds shall be registered by the Comptroller of Public Accounts of the State of Texas… .

(15)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that after approval and registration, district bonds are incontestable except for forgery or fraud.  The revised law omits that provision as impliedly repealed by Section 1202.006, Government Code (enacted as Section 3.002(d), Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.006, Government Code, provides that after approval and registration, bonds are incontestable for any reason.  Section 1202.006 applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 12.  … 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… .

(16)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, details various procedures regarding the attorney general's approval of bond contracts and proceedings.  The revised law omits the portion of Section 12 regarding the incontestability of a contract the proceeds of which are pledged to the payment of a bond as impliedly repealed by Section 1202.006, Government Code (enacted as Section 3.002(d), Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.006, Government Code, provides that after approval and registration of the bond, the bond and contract are incontestable for any reason.  Section 1202.006 applies to district bonds by application of Section 1202.001, Government Code.  The omitted law reads:

Sec. 12.  … 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.  …

(17)  Section 12, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district may sell bonds only after taking public bids.  The revised law omits that provision because it duplicates, in substance, Section 49.183(a), Water Code.  The omitted law reads:

Sec. 12.  … The District's bonds shall only be sold after taking public bids therefor.

(18)  Section 17, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the district may sell bonds at any price or on any terms, except that the price may not be less than that provided by law.  The revised law omits that provision because it duplicates Section 1204.006(b), Government Code.  Section 1204.006(b) provides that an issuer may sell public securities at any price and applies to district bonds by application of Section 1204.001, Government Code.  The omitted law reads:

Sec. 17.  Bonds of the District may be sold at a price and upon the terms determined by the Board of Directors of the District, except that such bonds shall not be sold for a less amount than provided by law.

(19)  Section 18, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that elections to authorize district bonds must be held under applicable general law.  Section 18 also provides that if the first bond election fails, any provision of the general law relating to the dissolution of a district when a bond election fails does not apply to the district.  The revised law omits the provision relating to the first bond election as executed.  The revised law omits the provision requiring bond elections to be held under applicable general law because the provision duplicates Section 49.101, Water Code.  The omitted law reads:

Sec. 18.  All elections to authorize the issuance of bonds by the District shall be held pursuant to the general law applicable to 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.

(20)  Section 20, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, lists the entities for which district bonds are legal investments and provides that district bonds may secure deposits of public funds of the state or political subdivisions.  The revised law omits the provision relating to the eligibility of district bonds to be considered as investments for various entities because it duplicates Section 49.186(a), Water Code.  The revised law omits the provision relating to deposits of state funds by the comptroller as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for deposits of state funds by the comptroller.  As to deposits of other funds, the provision is impliedly repealed by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions, and permits those deposits to be secured by obligations issued by conservation and reclamation districts.  The omitted law reads:

Sec. 20.  All bonds and refunding bonds of the District shall be and are hereby declared to be legal, eligible and authorized investments for banks, savings and loan associations, insurance companies, fiduciaries, and for the sinking funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas and for all public funds of the State of Texas or its agencies, including the State Permanent School Fund. Such bonds and refunding bonds shall be eligible to secure the deposit of any and all public funds of the State of Texas, cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the State of Texas; and such bonds shall be lawful and sufficient security for said deposits to the extent of their face value, when accompanied by all unmatured coupons appurtenant thereto.

Revisor's Note

(End of Chapter)

(1)  Section 6, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that it is not necessary for the board of directors to hold an election to confirm the district's organization and that the district is validly created from and after the passage of that act.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 6.  It shall not be necessary for the Board of Directors to call or hold an election to confirm the organization of the District and such District shall be validly created from and after the passage of this Act.

(2)  Section 7, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides for the exclusion of property from the district before the first bond election is called.  The revised law omits that provision as executed because the district has already issued bonds.  The omitted law reads:

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… .

(3)  Section 7, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the board may on its own motion hold a hearing on the exclusion of property from the district in the manner provided by general law.  The revised law omits that provision because it duplicates, in substance, Section 49.303(b), Water Code.  The omitted law reads:

Sec. 7.  … The Board on its own motion may call and hold an exclusions hearing or hearings in the manner provided by the General Law.

(4)  Section 19, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the board shall canvass the returns of all elections.  The revised law omits that requirement because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.  Section 19 also provides that the board shall canvass the election returns "as soon as reasonably practicable after an election."  The revised law omits that provision as superseded by Section 67.003, Election Code (enacted by Section 1, Chapter 211, Acts of the 69th Legislature, Regular Session, 1985).  The omitted law reads:

Sec. 19.  … The returns of all elections shall be canvassed by the Board of Directors of the District as soon as reasonably practicable after an election.

(5)  Section 23, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, provides that the act is severable.  The revised law omits that provision because it duplicates Section 311.032, Government Code (Code Construction Act), which states that a provision of a statute is severable from each other provision of the statute that can be given effect.  The omitted law reads:

Sec. 23.  If any word, phrase, clause, paragraph, sentence, part, portion or provision of this Act or the application thereof to any person or circumstance shall be held to be invalid or unconstitutional, the remainder of the Act shall nevertheless be valid, and the Legislature hereby declares that this Act would have been enacted without such invalid or unconstitutional word, phrase, clause, paragraph, sentence, part, portion or provision.

(6)  Section 24, Chapter 838, Acts of the 61st Legislature, Regular Session, 1969, contains legislative findings relating to the performance of certain requirements under Section 59(d), Article XVI, Texas Constitution.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 24.  It is determined and found that a proper and legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published at least thirty (30) days and not more than ninety (90) days prior to the introduction of this Act in the Legislature of Texas, in a newspaper having general circulation in Harris County, Texas; that a copy of such notice and a copy of this Act have been delivered to the Governor of Texas who has submitted such notice and Act to the Texas Water Rights Commission, and said Texas Water Rights Commission had filed its recommendation as to such Act with the Governor, Lieutenant Governor and Speaker of the House of Representatives of Texas within thirty (30) days from the date such notice and Act were received by the Texas Water Rights Commission; and that all the requirements and provisions of Article XVI, Section 59(d) of the Constitution of the State of Texas have been fulfilled and accomplished as therein provided.