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.