By:  Armbrister                                       S.B. No. 1443
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the creation, administration, and powers, including the
    1-2  power of eminent domain, and to the duties, operations, and
    1-3  financing of Victoria Regional Water Authority, including the power
    1-4  to issue bonds and the power to levy and collect ad valorem taxes;
    1-5  relating to the power of certain political subdivisions and
    1-6  corporations to contract with the authority.
    1-7        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-8        SECTION 1.  PURPOSE.  It is the purpose and intent of this
    1-9  Act to establish a mechanism that can provide on an orderly basis
   1-10  for the water and wastewater needs of the unincorporated territory
   1-11  of Victoria County, without impairment of the powers of an
   1-12  incorporated municipality of the county within its corporate limits
   1-13  or within two miles thereof or in its extraterritorial
   1-14  jurisdiction, whichever is greater, or the other governmental
   1-15  agencies therein, or water supply or sewer service corporations
   1-16  within the service areas certificated to such corporations under
   1-17  Chapter 13, Water Code, to assume their proper and historic roles
   1-18  in the performance of such services as expansions of municipal
   1-19  boundaries occur or sound water and wastewater practices dictate.
   1-20  To accomplish this purpose a conservation district with taxing
   1-21  power is created, subject to limitations, all for the purpose of
   1-22  providing for such services on a coordinated but voluntary basis
   1-23  within such territory and in conjunction with the other agencies
    2-1  and municipalities located within the county.
    2-2        SECTION 2.  DEFINITIONS.  In this Act:
    2-3              (1)  "Authority" means the Victoria Regional Water
    2-4  Authority created in Section 4 of this Act.
    2-5              (2)  "Board" means the governing board of directors of
    2-6  the authority.
    2-7              (3)  "Commissioners court" means the commissioners
    2-8  court of Victoria County.
    2-9              (4)  "Municipality" means any incorporated city or town
   2-10  within the county and any other governmental agency, water
   2-11  district, conservation district, or political subdivision doing
   2-12  business therein.
   2-13              (5)  "State" means the State of Texas.
   2-14              (6)  "Water supply or sewer service corporation" means
   2-15  any nonprofit water supply or sewer service corporation organized
   2-16  under Chapter 76, Acts of the 43rd Legislature, 1st Called Session,
   2-17  1933 (Article 1434a, Vernon's Texas Civil Statutes), as amended.
   2-18        SECTION 3.  LEGISLATIVE FINDINGS.  (a)  It is hereby found by
   2-19  the legislature that the creation and establishment of the
   2-20  authority is essential to the accomplishment of the purposes of
   2-21  Article XVI, Section 59, of the Texas Constitution.
   2-22        (b)  It is hereby found by the legislature that all of the
   2-23  land and other property included in the boundaries of the authority
   2-24  will be benefitted by the improvements, works, and projects that
   2-25  are to be provided by the authority pursuant to the powers
    3-1  conferred on the authority by this Act and that the authority is
    3-2  created to serve a public use and benefit and will be for a public
    3-3  purpose.
    3-4        (c)  The legislature specifically finds and declares that the
    3-5  requirements of Article XVI, Section 59(d) and Section 59(e), of
    3-6  the Texas Constitution, to the extent applicable, have been met and
    3-7  accomplished in due course, time, and order and that all notices
    3-8  required to be given relating to this Act have been given, that all
    3-9  approvals required to be obtained pursuant thereto have been
   3-10  obtained, and that the legislature has the authority and power to
   3-11  enact this Act.
   3-12        SECTION 4.  CREATION.  (a)  A conservation and reclamation
   3-13  district having the boundaries prescribed herein is hereby created
   3-14  and shall be known as the Victoria Regional Water Authority.
   3-15        (b)  The authority is a conservation and reclamation district
   3-16  under Article XVI, Section 59, of the Texas Constitution and is a
   3-17  governmental agency, body corporate and politic, and a political
   3-18  subdivision of the state.
   3-19        (c)  The boundaries of the authority are coterminous with the
   3-20  duly established and existing boundaries of the county not
   3-21  including territory that lies within the limits of an incorporated
   3-22  municipality, and the territory of the county not within an
   3-23  incorporated municipality shall be the territory of the authority.
   3-24        (d)  An election confirming the creation of the authority
   3-25  shall be held in accordance with the provisions of Sections 51.033
    4-1  and 51.034, Water Code.
    4-2        SECTION 5.  MANAGEMENT OF AUTHORITY.  (a)  The authority
    4-3  shall be governed by a board of directors of five persons who are
    4-4  residents of the authority.  The members of the board will be
    4-5  appointed by the commissioners court.  The terms of office shall be
    4-6  four years.  The members of the board are subject to removal with
    4-7  or without cause by duly adopted order of the commissioners court.
    4-8  The board shall have complete authority over the management and
    4-9  affairs of the authority under this Act; provided, however, that
   4-10  any and all budgets, rates, and contracts for the acquisition,
   4-11  construction, improvement, extension, or disposition of water or
   4-12  wastewater systems of the authority shall not become effective
   4-13  until they are approved by order of the commissioners court.
   4-14        (b)  Vacancies on the board shall be filled by the
   4-15  commissioners court.
   4-16        (c)  No member of the board shall receive any compensation
   4-17  for serving as a member of the board, but all directors may be
   4-18  reimbursed for actual expenses incurred on behalf of the authority
   4-19  in the discharge of their duties.
   4-20        SECTION 6.  BOARD PROCEDURES.  (a)  The board shall prepare
   4-21  and adopt bylaws for the authority and shall hold such regular,
   4-22  special, or emergency meetings at such times and on such days or
   4-23  dates as are specified therein.
   4-24        (b)  A majority of the members of the board constitutes a
   4-25  quorum for the transaction of business of the authority, and
    5-1  approval of at least a majority of the members of the board present
    5-2  at a meeting is necessary for approval of any matter coming before
    5-3  the board.
    5-4        (c)  The board shall provide in its bylaws for the method of
    5-5  execution for all contracts, the signing of checks, and the
    5-6  handling of any other matters approved by the board.  After each
    5-7  appointment cycle and at any other times the board may consider
    5-8  appropriate, the board shall reorganize and elect new officers.
    5-9        (d)  The officers of the board shall consist of a president,
   5-10  one or more vice-presidents, a secretary, and a treasurer.  The
   5-11  board may designate one or more assistant secretaries and an
   5-12  assistant treasurer, who are not required to be members of the
   5-13  board.  The secretary of the board or one of the assistant
   5-14  secretaries shall be responsible for keeping the minutes of the
   5-15  meetings of the board and all official records of the board and may
   5-16  certify the accuracy or authenticity of any actions, proceedings,
   5-17  minutes, or records of the board or of the authority.
   5-18        (e)  The regular meeting place of the board shall be
   5-19  designated in the bylaws.
   5-20        SECTION 7.  GENERAL POWERS AND DUTIES.  (a)  Subject to the
   5-21  specific provisions of this Act, the authority has the rights,
   5-22  powers, privileges, authority, and functions granted, conferred,
   5-23  contemplated, and described in Article XVI, Section 59, of the
   5-24  Texas Constitution, including the rights, powers, privileges,
   5-25  authority, and functions conferred by the general laws of the state
    6-1  applicable to water control and improvement districts and to
    6-2  municipal utility districts operating under the applicable
    6-3  provisions of the Water Code, together with the additional rights,
    6-4  powers, privileges, authority, and functions enumerated, described,
    6-5  expressed, or implied by this Act.
    6-6        (b)  The authority shall have the power to levy or collect ad
    6-7  valorem taxes.
    6-8        (c)  If any general law applicable to water control and
    6-9  improvement districts or to municipal utility districts is in
   6-10  conflict or inconsistent with this Act, this Act shall prevail,
   6-11  except as provided by Subsection (d) of this section.
   6-12        (d)  The provisions of Chapter 13, Water Code, shall be
   6-13  applicable to the authority in the same manner and to the extent
   6-14  that these provisions are otherwise applicable to conservation and
   6-15  reclamation districts created under Article XVI, Section 59, of the
   6-16  Texas Constitution.
   6-17        SECTION 8.  ADDITIONAL POWERS.  (a)  The authority has the
   6-18  additional rights, powers, privileges, authorities, and functions
   6-19  provided by this section.
   6-20        (b)  The authority may sue and be sued and may plead and be
   6-21  impleaded in its own name.
   6-22        (c)  The authority may adopt an official seal and alter the
   6-23  seal when deemed advisable and may adopt and enforce bylaws, rules,
   6-24  and regulations for the conduct of its affairs that are not
   6-25  inconsistent with this Act.
    7-1        (d)  The authority may acquire, hold, use, and dispose of its
    7-2  revenues, income, receipts, funds, and money from every source and
    7-3  may select its depository or depositories.
    7-4        (e)  The authority may plan, lay out, purchase, construct,
    7-5  acquire, contract for, lease, rent, own, operate, maintain, repair,
    7-6  and improve inside or outside its boundaries any land, buildings,
    7-7  works, improvements, facilities, plants, equipment, and appliances,
    7-8  including any administrative properties and facilities, any
    7-9  permits, franchises, licenses, or contract or property rights, and
   7-10  any levees, drains, waterways, lakes, reservoirs, channels,
   7-11  conduits, sewers, dams, stormwater detention facilities, or other
   7-12  similar facilities and improvements, whether for municipal,
   7-13  industrial, agricultural, flood control, or related purposes, that
   7-14  are necessary, helpful, or incidental to the exercise of any right,
   7-15  power, privilege, authority, or function provided by this Act.
   7-16        (f)  The authority may acquire by purchase or by exercise of
   7-17  the power of eminent domain, which power is hereby granted subject
   7-18  to the limitations imposed by this subsection, any land, easements,
   7-19  rights-of-way, or other property or improvements within or without
   7-20  the boundaries of the authority which are needed or are appropriate
   7-21  to carry out the powers and functions of the authority, as herein
   7-22  described and contemplated; provided, however, that the power of
   7-23  eminent domain shall be exercised in the manner and with the
   7-24  privileges, rights, and immunities available under the laws of the
   7-25  state, including specifically the Property Code, as amended.  It is
    8-1  provided further that the authority shall not exercise the power of
    8-2  eminent domain:  (1) against any property owned by the county or by
    8-3  any municipality or any agency or instrumentality thereof, or
    8-4  (2) to acquire a waterworks system or a wastewater system that is
    8-5  owned by any municipality, by private parties, or by any nonprofit
    8-6  water supply or sewer service corporation.
    8-7        (g)  In addition to its other powers, the authority is
    8-8  authorized to purchase by agreement with any owner, to maintain and
    8-9  operate, and to construct new extensions and additions to existing
   8-10  waterworks systems and wastewater systems wholly or partially
   8-11  within the county.
   8-12        (h)  None of the authority's works, projects, or facilities
   8-13  may be placed in or extended into or across any land within a city
   8-14  without the express consent of the governing body of the city.
   8-15        (i)  The authority may request and may accept any
   8-16  appropriations, grants, allocations, subsidies, guaranties, aid,
   8-17  contributions, services, labor, materials, gifts, or donations from
   8-18  the federal government, the state, any city, public agency,
   8-19  political subdivision, or any other sources.
   8-20        (j)  The authority may operate and maintain an office and may
   8-21  appoint and determine the duties, tenure, qualifications, and
   8-22  compensation of officers, employees, agents, professional advisors,
   8-23  and counsellors, including financial consultants, accountants,
   8-24  attorneys, architects, engineers, appraisers, and financing experts
   8-25  deemed necessary or advisable by the board.
    9-1        (k)  The authority may issue its bonds, provide for and
    9-2  secure the payment of its bonds, and provide for the rights of the
    9-3  holders of its bonds in the manner and to the extent permitted by
    9-4  this Act.
    9-5        (l)  The authority may fix and revise from time to time and
    9-6  charge and collect rates, fees, and charges for its facilities and
    9-7  services.
    9-8        (m)  The authority may exercise those powers granted by the
    9-9  Clean Air Financing Act (Chapter 383, Health and Safety Code) and
   9-10  Chapter 30, Water Code.
   9-11        SECTION 9.  REGULATORY POWER.  (a)  The authority may adopt
   9-12  rules and regulations for the development of water and wastewater
   9-13  systems within the unincorporated territory of the county but may
   9-14  not adopt rules or regulations that conflict or are inconsistent
   9-15  with any valid order or ordinance of a municipality or of the
   9-16  county or with any requirements or protections in effect under
   9-17  Chapter 13, Water Code, or Chapter 341, Health and Safety Code, for
   9-18  a water supply or sewer service corporation.
   9-19        (b)  This Act does not exempt the authority or any land
   9-20  situated within the authority from the terms and provisions of any
   9-21  applicable ordinance, code, resolution, platting and zoning
   9-22  requirement, rule, or regulation of any municipality.
   9-23        (c)  It being one of the essential purposes of this Act to
   9-24  enable the county and the municipalities and existing nonprofit
   9-25  water supply or sewer service corporations to provide for the
   10-1  orderly development and distribution of the water and wastewater
   10-2  resources of and within the unincorporated territory of the county,
   10-3  the authority shall have full standing to appear before any local
   10-4  or state agency having jurisdiction and to be heard to oppose or
   10-5  support the creation of additional municipal utility districts
   10-6  within the county.
   10-7        SECTION 10.  ANNEXATION.  (a)  Territory may be annexed to
   10-8  the authority as provided in this section and in accordance with
   10-9  Chapter 54, Water Code.
  10-10        (b)  A petition requesting the annexation of territory by the
  10-11  authority may be presented to the board.  The petition must be
  10-12  signed by at least 50 persons who own property within the
  10-13  boundaries of the proposed annexed territory and must be approved
  10-14  by the board.  The petition shall specify, at a minimum, a metes
  10-15  and bounds description of the boundaries of the proposed annexed
  10-16  territory, the general nature of the improvements to be acquired,
  10-17  constructed, or otherwise implemented within the annexed territory,
  10-18  and the necessity and feasibility of the improvements.  The
  10-19  petition shall state on its face whether the power to levy and
  10-20  collect ad valorem taxes solely within the annexed territory is
  10-21  requested.
  10-22        (c)  The board shall set a date for a hearing on the petition
  10-23  not less than 14 nor more than 45 days after the day the petition
  10-24  is presented to the board.  Notice of the hearing shall be given to
  10-25  each municipality within whose territory, as defined below, the
   11-1  proposed annexed territory would be located and to each water
   11-2  supply or sewer service corporation within whose certificated
   11-3  service area the proposed subdistrict would be located.  For this
   11-4  purpose a municipality's territory includes land within its
   11-5  corporate limits and land included within two miles of its limits
   11-6  or its extraterritorial jurisdiction, whichever is greater.  A copy
   11-7  of the notice of the hearing shall also be posted in three public
   11-8  places located within the territory proposed to be annexed and at
   11-9  the county courthouse at least 14 days prior to the date set for
  11-10  the hearing.  Notice of the hearing shall also be published at
  11-11  least one time in a newspaper of general circulation published in
  11-12  the county at least 10 days prior to the date of the hearing.
  11-13        (d)  Any interested person may appear at the hearing for the
  11-14  purpose of supporting or opposing the annexation in accordance with
  11-15  the petition.  The hearing shall be conducted in accordance with
  11-16  the procedures established by the board.
  11-17        (e)  After the public hearing, the board shall enter an order
  11-18  stating its findings in the official records of the board.  If the
  11-19  board deems the annexation to be feasible and practical and finds
  11-20  that the annexation will be beneficial to the public, will benefit
  11-21  the residents of and the land included in the proposed annexed
  11-22  territory, and will contribute to the orderly growth and
  11-23  development of the county, then the board shall enter an order
  11-24  granting the petition and ordering the annexation of the territory.
  11-25  If the board finds to the contrary, it shall enter an order
   12-1  dismissing the petition, and the proposed annexed territory shall
   12-2  not be annexed; but a dismissal order shall be without prejudice to
   12-3  the ability to petition for the annexation of the same territory at
   12-4  a later time.  The board shall not order the annexation of
   12-5  territory which includes within its boundaries any portion of an
   12-6  incorporated city or any portion of land within two miles of the
   12-7  incorporated boundary of a city or the extraterritorial
   12-8  jurisdiction of a city, whichever is greater, without the express
   12-9  written approval of the governing body of the incorporated city nor
  12-10  shall the board order the annexation of territory which includes
  12-11  within its boundaries any portion of an area certificated to a
  12-12  water supply or sewer service corporation under Chapter 13, Water
  12-13  Code, without the express written approval of the governing body of
  12-14  the water supply or sewer service corporation.  In giving approval
  12-15  prior to the annexation of territory, the approving city or water
  12-16  supply or sewer service corporation by agreement with the board may
  12-17  impose special conditions and terms regarding the financing,
  12-18  operations, and disannexation of the annexed territory and the
  12-19  disposition of its works and projects.  If the conditions are not
  12-20  accepted by the board within 60 days of its annexation or modified
  12-21  with the agreement of the city or cities or water supply or sewer
  12-22  service corporation or corporations, as applicable, the board shall
  12-23  enter an order disannexing the territory.
  12-24        SECTION 11.  WATER APPROPRIATION AND DIVERSION PERMITS;
  12-25  STORAGE RIGHTS.  The authority may obtain, through appropriate
   13-1  proceedings, appropriation permits and diversion permits from the
   13-2  Texas Water Commission.  The authority is authorized to acquire
   13-3  water appropriation permits from owners of permits through a
   13-4  contract or otherwise.  The authority may lease, purchase, or
   13-5  otherwise acquire rights in and to storage and storage capacity in
   13-6  any reservoir constructed or to be constructed by any person, firm,
   13-7  corporation, public agency, political subdivision, the state, or
   13-8  the United States or any of its agencies.
   13-9        SECTION 12.  WATER AND WATER SUPPLY CONTRACTS.  (a)  The
  13-10  authority may enter into and enforce contracts and agreements for
  13-11  the purchase or sale of water and for any other purpose relating to
  13-12  its powers with any person, firm, corporation, public agency,
  13-13  political subdivision, the state, or the United States or any of
  13-14  its agencies.  The authority may acquire or construct within or
  13-15  without the boundaries of the authority all works, well plants,
  13-16  transmission lines, and other facilities necessary or useful for
  13-17  the purpose of diverting, impounding, drilling, storing, treating,
  13-18  and transporting water for municipal, domestic, agricultural,
  13-19  industrial, or any other useful purposes.  The authority may sell
  13-20  water within and without the boundaries of the authority and may
  13-21  develop or otherwise acquire underground sources of water.
  13-22        (b)  All public agencies and political subdivisions of the
  13-23  State of Texas are authorized to enter into contracts and
  13-24  agreements with the authority for a water supply or for any purpose
  13-25  relating to the authority's powers or functions on terms and
   14-1  conditions to which the parties may agree.  In addition, the
   14-2  authority specifically may enter into contracts and agreements with
   14-3  the Guadalupe River Authority and the City of Victoria for the
   14-4  purchase of water, and the authority and city may enter into
   14-5  agreements and contracts with the authority for the sale of water
   14-6  and operation and maintenance of the authority's water lines if
   14-7  deemed advisable.  Any entity may lease, sell, or otherwise convey
   14-8  any of its land or any interest in its land to the authority for
   14-9  the consideration that the parties agree to be adequate.  No
  14-10  approval, notice, consent, or election is required in connection
  14-11  with any of these contracts, agreements, or conveyances.
  14-12        (c)  The authority may enter into contracts with any city,
  14-13  public agency, or political subdivision for supplying water to
  14-14  them.  These contracts may provide that the contractual payments by
  14-15  the political subdivisions will be payable from revenues or the
  14-16  levy of taxes or both and will constitute the purchase of the
  14-17  authority's system at the time all indebtedness incurred by the
  14-18  authority for acquisition, construction, improvement, and
  14-19  extensions of the system is paid in full.  The authority is also
  14-20  authorized to contract with any city, public agency, or political
  14-21  subdivision for the rental or leasing of or for the operation of
  14-22  the water supply, water, and filtration or purification facilities
  14-23  of the entity for consideration on which the authority and the
  14-24  entity may agree.  Any contract may be on the terms and for the
  14-25  time to which the parties may agree, and the contract may provide
   15-1  that it shall continue in effect until bonds specified in the
   15-2  contract and refunding bonds issued in lieu of those bonds are
   15-3  paid.
   15-4        (d)  Any and all municipalities and any nonprofit water
   15-5  supply or sewer service corporation doing business wholly or
   15-6  partially within the authority are expressly authorized to enter
   15-7  into any contracts with the authority that are deemed appropriate
   15-8  by the respective governing bodies thereof.  Such governing bodies
   15-9  are authorized to pledge to the payment of any such contracts any
  15-10  source of revenue that may be available to the governing body,
  15-11  including the levy and collection of ad valorem taxes, if such
  15-12  municipality or corporation has the power to levy and collect such
  15-13  taxes, subject only to the elections that are required by this Act
  15-14  to be held prior to the levy of ad valorem taxes by this Act.  To
  15-15  the extent a governing body pledges funds to the payment of any
  15-16  such contract that are to be derived from its own waterworks
  15-17  system, its sewer system, or its combined system, such payments
  15-18  shall constitute an operating expense of such system.
  15-19        (e)  The county and each municipality may enter into
  15-20  interlocal agreements with the authority in which the authority
  15-21  agrees to provide for planning, administering, and developing the
  15-22  water and wastewater resource needs as the parties may agree and
  15-23  approve and, to the extent agreed, for the performance of other
  15-24  services on behalf of the contracting party or parties, and the
  15-25  county and each municipality executing the agreements may
   16-1  appropriate and expend their funds for such purposes.  The
   16-2  agreements may be on such terms and for such periods of time as the
   16-3  parties may agree.
   16-4        (f)  The rights, powers, privileges, authority, and functions
   16-5  granted to the authority in this Act shall be subject to the
   16-6  continuing right of supervision of the state, to be exercised by
   16-7  the Texas Water Commission, subject to the provisions of this Act
   16-8  and Section 12.081 and Chapter 50, Water Code.
   16-9        SECTION 13.  ACQUISITION AND DISPOSAL OF PROPERTY.  The
  16-10  authority is empowered to sell or otherwise dispose of the
  16-11  facilities it owns.  The authority and the purchaser shall agree on
  16-12  the terms and provisions of any such sale, the terms and provisions
  16-13  to be approved by the commissioners court prior to becoming
  16-14  effective.  Any funds received by the authority on the disposition
  16-15  of such property shall be applied to the debt, if any, incurred by
  16-16  the authority to finance the purchase, construction, improvements,
  16-17  or other acquisition of the property and improvements.  If no debt
  16-18  was issued for acquisition or improvement, all funds received by
  16-19  the authority on the disposition of the property shall be deposited
  16-20  in the general funds of the authority.
  16-21        SECTION 14.  EMINENT DOMAIN DAMAGES.  (a)  The authority is
  16-22  granted all necessary or useful rights-of-way and easements along,
  16-23  over, under, and across all public, state, city, and county roads,
  16-24  highways, and places for any of its purposes subject to location
  16-25  approval, but the authority shall restore any of those facilities
   17-1  used to their previous condition as nearly as possible at the sole
   17-2  expense of the authority.
   17-3        (b)  In the event the authority, in the exercise of its power
   17-4  of eminent domain, police power, or any other power, requires the
   17-5  relocation, raising, lowering, rerouting, or change in grade or
   17-6  alteration in the construction of any railroad, electric
   17-7  transmission, telegraph, or telephone lines, conduits, poles,
   17-8  properties, or facilities or pipelines, the relocation, raising,
   17-9  lowering, rerouting, or changes in grade or alteration of
  17-10  construction shall be accomplished at the sole expense of the
  17-11  authority.  The term "sole expense" shall mean the actual cost of
  17-12  the raising, lowering, rerouting, or change in grade or alteration
  17-13  of construction in providing comparable replacement without
  17-14  enhancement of the facilities, after deducting therefrom the net
  17-15  salvage value derived from the old facility.
  17-16        SECTION 15.  CONSTRUCTION CONTRACT BIDS.  Any construction
  17-17  contract requiring an expenditure of more than $15,000 shall be
  17-18  made in accordance with Chapter 50, Water Code, after publication
  17-19  of a notice to bidders once each week for two consecutive weeks in
  17-20  a newspaper of general circulation in the authority before awarding
  17-21  the contract.  The notice shall be sufficient if it states the time
  17-22  and place when and where the bids will be opened, the general
  17-23  nature of the work to be done, or the material, equipment, or
  17-24  supplies to be purchased and states where the terms and conditions
  17-25  of bidding and copies of the plans and specifications may be
   18-1  obtained.
   18-2        SECTION 16.  BONDS.  (a)  For the purpose of carrying out any
   18-3  power or authority conferred by this Act, the authority may issue
   18-4  its negotiable bonds to be payable from and secured by revenues or
   18-5  ad valorem taxes, or both, of the authority in the manner and under
   18-6  the terms and conditions provided in Sections 54.501 through
   18-7  54.521, Water Code, and in the resolution authorizing the issuance
   18-8  of the bonds.
   18-9        (b)  The authority is authorized to issue, sell, and deliver
  18-10  its revenue bonds, notes, or other obligations for any and all of
  18-11  its purposes, without an election and on such terms as the board
  18-12  shall determine appropriate.  Such bonds may be made payable from
  18-13  all or any part of the revenues of the authority derived from any
  18-14  lawful source, including but not limited to any contract with any
  18-15  municipality or with any subdistrict or from the ownership and
  18-16  operation of any waterworks system, wastewater system, sewer
  18-17  system, or any combined system.  The issuance of revenue bonds by
  18-18  the authority shall be governed by the provisions of the Water Code
  18-19  applicable to the issuance of revenue bonds by municipal utility
  18-20  districts and by Chapter 656, Acts of the 68th Legislature, Regular
  18-21  Session, 1983 (Article 717q, Vernon's Texas Civil Statutes), and
  18-22  Chapter 1078, Acts of the 70th Legislature, Regular Session, 1987
  18-23  (Article 717k-7, Vernon's Texas Civil Statutes).
  18-24        (c)  The authority is authorized to enter voluntarily into
  18-25  any contracts, including the interlocal contracts herein
   19-1  authorized, with the county, with any municipality, with nonprofit
   19-2  water supply or sewer service corporations, and with any other
   19-3  party, public, private, or nonprofit considered necessary in the
   19-4  exercise of its other powers and purposes.  Contracts requiring a
   19-5  payment of money by the authority may be made payable from any
   19-6  source of funds, general or specific, as may be determined by the
   19-7  board.
   19-8        (d)  The authority is authorized to apply for and receive
   19-9  grants in aid of its purposes and projects from any state, federal,
  19-10  or local agency or person.
  19-11        (e)  Any bonds of the authority issued on behalf of the
  19-12  authority which are payable through an ad valorem tax levy must be
  19-13  approved by the Texas Water Commission as provided in Chapter 54,
  19-14  Water Code.
  19-15        SECTION 17.  TAXES.  (a)  The tax rolls of the unincorporated
  19-16  territory of Victoria County, Texas, are adopted and shall
  19-17  constitute the tax rolls of the authority.
  19-18        (b)  If the authority issues and delivers bonds that are
  19-19  payable wholly or partially from ad valorem taxes, Subchapter G,
  19-20  Chapter 54, Water Code, shall be complied with by the authority.
  19-21        (c)  The authority may levy and collect a tax for maintenance
  19-22  purposes in accordance with the provisions of Sections 54.311 and
  19-23  54.312, Water Code.
  19-24        SECTION 18.  DEPOSITORY.  The board shall designate one or
  19-25  more banks within or without the authority to serve as depository
   20-1  for the funds of the authority in accordance with provisions set
   20-2  out in Chapter 105, Local Government Code.
   20-3        SECTION 19.  PUBLIC FUNCTION; TAX EXEMPT STATUS.  The
   20-4  accomplishment of the purposes stated in this Act is for the
   20-5  benefit of the people of this state and for the improvement of
   20-6  their properties and industries, and the authority, in carrying out
   20-7  the purposes of this Act, will be performing an essential public
   20-8  function under the constitution.  The authority shall not be
   20-9  required to pay any tax or assessment on its facilities or any part
  20-10  of its facilities, and the bonds issued and their transfer and the
  20-11  income from the bonds, including the profits made on their sale,
  20-12  shall at all times be free from taxation within this state.
  20-13        SECTION 20.  EFFECT OF ACT.  This Act is wholly sufficient
  20-14  authority within itself for the issuance of the bonds, the
  20-15  execution of contracts and conveyances, and the performance of the
  20-16  other acts and procedures authorized in this Act by the authority
  20-17  and all other public agencies and political subdivisions, without
  20-18  reference to any other law or any restrictions or limitations
  20-19  contained in any other law, except as in this Act specifically
  20-20  provided, and when any bonds are being issued or other action taken
  20-21  under this Act, then to the extent of any conflict or inconsistency
  20-22  between any provision of this Act and any provision of any other
  20-23  law, the provisions of this Act shall prevail and control;
  20-24  provided, however, that the authority and all other public agencies
  20-25  and political subdivisions are entitled to use the provisions of
   21-1  this Act to the extent convenient or necessary to carry out any
   21-2  power or authority, express or implied, granted by this Act.
   21-3        SECTION 21.  FINANCIAL REPORT.  The authority shall maintain
   21-4  a complete system of financial accounts and shall have those
   21-5  accounts audited at least once annually by an independent certified
   21-6  public accountant.  The audit required under this section shall be
   21-7  the same as required under Subchapter K, Chapter 50, Water Code.  A
   21-8  copy of the audited financial report shall be kept with the books
   21-9  and financial records of the authority and shall be available
  21-10  during reasonable hours for public inspection.
  21-11        SECTION 22.  NOTICE.  Proof of publication of the
  21-12  constitutional notice required in the enactment hereof under the
  21-13  provisions of Article XVI, Section 59(d), of the Texas Constitution
  21-14  has been made in the manner provided therein and a copy of the
  21-15  notice and the bill as originally introduced have been delivered to
  21-16  the Governor of the State of Texas, the Commissioners Court of
  21-17  Victoria County, and to the governing body of each incorporated
  21-18  city or town in whose jurisdiction the authority or any part
  21-19  thereof is or will be located as required in the constitutional
  21-20  provision, and such notice and delivery are hereby found and
  21-21  declared to the proper and sufficient to satisfy the constitutional
  21-22  requirements.
  21-23        SECTION 23.  EMERGENCY.  The importance of this legislation
  21-24  and the crowded condition of the calendars in both houses create an
  21-25  emergency and an imperative public necessity that the
   22-1  constitutional rule requiring bills to be read on three several
   22-2  days in each house be suspended, and this rule is hereby suspended,
   22-3  and that this Act take effect and be in force from and after its
   22-4  passage, and it is so enacted.