1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of the Angelina County Water Control and
1-4 Improvement District No. 4; authorizing the imposition of taxes and
1-5 the issuance of bonds and granting the power of eminent domain;
1-6 providing a civil penalty.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 ARTICLE 1. GENERAL PROVISIONS
1-9 SECTION 1.01. CREATION. (a) A conservation and reclamation
1-10 district, to be known as the Angelina County Water Control and
1-11 Improvement District No. 4, is created in Angelina County, subject
1-12 to approval at a confirmation election under Section 2.03 of this
1-13 Act. The district is a governmental agency and a body politic and
1-14 corporate.
1-15 (b) The district is created under and is essential to
1-16 accomplish the purposes of Section 59, Article XVI, Texas
1-17 Constitution.
1-18 SECTION 1.02. DEFINITIONS. In this Act:
1-19 (1) "Board" means the board of directors of the
1-20 district.
1-21 (2) "Commission" means the Texas Natural Resource
1-22 Conservation Commission.
1-23 (3) "Director" means a member of the board.
1-24 (4) "Disposal system" means any system for disposing
2-1 of waste, including a sewer system, drainage system, or treatment
2-2 facility.
2-3 (5) "District" means the Angelina County Water Control
2-4 and Improvement District No. 4.
2-5 (6) "Local government" means a municipality, county,
2-6 river authority, or water district or authority acting under
2-7 Section 52, Article III, or Section 59, Article XVI, Texas
2-8 Constitution.
2-9 (7) "Person" has the meaning assigned by Section
2-10 311.005, Government Code.
2-11 (8) "Pollution" has the meaning assigned by Section
2-12 26.001, Water Code.
2-13 (9) "System" means a network of pipelines, conduits,
2-14 canals, pumping stations, force mains, and all other constructions,
2-15 devices, and related appliances used to transport water or waste.
2-16 (10) "Treatment facility" means a plant, disposal
2-17 field, lagoon, incinerator, sanitary landfill, or other facility
2-18 installed for the purpose of treating, neutralizing, or stabilizing
2-19 waste.
2-20 (11) "Waste" means waterborne liquid, gaseous, or
2-21 solid substances that result from a discharge from a treatment
2-22 facility or disposal system.
2-23 (12) "Water" means groundwater, percolating or
2-24 otherwise, and a lake, pond, impounding reservoir, spring, river,
2-25 stream, creek, canal, or any other surface water, natural or
2-26 artificial, navigable or nonnavigable, that is wholly or partially
2-27 in the district.
3-1 SECTION 1.03. BOUNDARIES. The boundaries of the district are
3-2 as follows:
3-3 BEING all that certain tract or parcel of land lying and
3-4 situated in Angelina County, Texas, out of the D. LEONE
3-5 SURVEY, ABSTRACT NO. 23 and the T. QUEVADO SURVEY, ABSTRACT
3-6 NO. 39 and being described as follows, to-wit:
3-7 BEGINNING at the Northeast corner of WILDWOOD ADDITION, a
3-8 subdivision of record in Cabinet A on Slide 140-B of the Map
3-9 and Plat Records of Angelina County, Texas, and the Northeast
3-10 corner of that certain 17 acre tract described in a deed from
3-11 Bess M. Auld, et al to Arthur M. White, et ux dated January
3-12 3, 1972 and recorded in Volume 384 on Page 71 of the Deed
3-13 Records of Angelina County, Texas, a point for corner in the
3-14 South boundary line of that certain 671.4 acre tract
3-15 described in a deed from Charles M. Raguet to Southern Pine
3-16 Lumber Company dated March 22, 1900 and Recorded in Volume 3
3-17 on Page 428 of the Deed Records of Angelina County, Texas;
3-18 THENCE Westerly with the North boundary line of the said
3-19 WILDWOOD ADDITION, the North boundary line of the said 17
3-20 acre tract, the North boundary line of that certain 54.8 acre
3-21 tract described in a contract of sale and purchase from the
3-22 Veterans' Land Board of Texas to Arthur M. White dated
3-23 February 16, 1950 and recorded in Volume 149 on Page 43 of
3-24 the Deed Records of Angelina County, Texas, and with the
3-25 South boundary line of the said 671.4 acre tract, continuing
3-26 to the Southeast corner of the proposed W.W.T.P. site (to be
3-27 conveyed by Temple-Inland Forest Products Corporation), a
4-1 point for corner;
4-2 THENCE Northerly with the East boundary line of the said
4-3 proposed W.W.T.P. site, continuing to the Northeast corner of
4-4 the said proposed W.W.T.P. site, a point for corner;
4-5 THENCE Westerly with the North boundary line of the said
4-6 proposed W.W.T.P. site, continuing to the Northwest corner of
4-7 the said proposed W.W.T.P. site, a point for corner;
4-8 THENCE Southerly with the West boundary line of the said
4-9 proposed W.W.T.P. site, continuing to the Southwest corner of
4-10 the said proposed W.W.T.P. site, a point for corner in the
4-11 South boundary line of the aforesaid 671.4 acre tract;
4-12 THENCE Easterly with the South boundary line of the said
4-13 671.4 acre tract, continuing to the Northwest corner of the
4-14 aforesaid 54.8 acre tract and the Northwest corner of that
4-15 certain 5.10 acre tract described in a deed from Arthur M.
4-16 White, et ux to Edward M. Hurd, et ux dated January 2, 1976
4-17 and recorded in Volume 434 on Page 116 of the Deed Records of
4-18 Angelina County, a point for corner;
4-19 THENCE Southerly with the West boundary line of the said 54.8
4-20 acre tract, the West boundary line of the said 5.10 acre Gary
4-21 D. Selman tract, and the West boundary line of that certain
4-22 0.273 acre tract described in a deed from Tom Gann And
4-23 Associates, Inc. to Edward M. Hurd, et ux dated November 24,
4-24 1986 and recorded in volume 660 on Page 713 of the Real
4-25 Property Records of Angelina County, continuing to the
4-26 Southwest corner of the said 0.273 acre tract, a point for
4-27 corner in the Northwest margin of County Road No. 65
5-1 (Burkhalter Hollow);
5-2 THENCE Northeasterly with the Southeast boundary line of the
5-3 said 0.273 acre tract and the Northwest margin of the said
5-4 County Road No. 65 (Burkhalter Hollow), continuing to the
5-5 Northeast corner of the said 0.273 tract, a point for corner
5-6 in the South boundary line of the aforesaid 54.8 acre tract;
5-7 THENCE Easterly with the South boundary line of the said 54.8
5-8 acre tract, the South boundary line of the aforesaid 17 acre
5-9 tract, the South boundary line of the aforesaid WILDWOOD
5-10 ADDITION, and the North margin of the said County Road No. 65
5-11 (Burkhalter Hollow), continuing to the Southeast corner of
5-12 the said 17 acre tract and the Southeast corner of the said
5-13 WILDWOOD ADDITION, a point for corner;
5-14 THENCE Northerly with the East boundary line of the said 17
5-15 acre tract and the East boundary line of the said WILDWOOD
5-16 ADDITION, continuing to the point and place of beginning.
5-17 SECTION 1.04. FINDINGS RELATIVE TO BOUNDARIES. The
5-18 legislature finds that the boundaries and field notes of the
5-19 district form a closure. A mistake in the field notes or in copying
5-20 the field notes in the legislative process does not affect the
5-21 organization, existence, or validity of the district, the right of
5-22 the district to issue or refund bonds or to pay the principal of or
5-23 interest on bonds, the right of the district to levy and collect
5-24 taxes, or the legality or operation of the district or its board.
5-25 SECTION 1.05. FINDING OF BENEFIT. All of the land and other
5-26 property included within the boundaries of the district will be
5-27 benefited by the works and projects that are to be accomplished by
6-1 the district under powers conferred by this Act. The district is
6-2 created to serve a public use and benefit.
6-3 ARTICLE 2. ADMINISTRATIVE PROVISIONS
6-4 SECTION 2.01. BOARD OF DIRECTORS. (a) The district's
6-5 powers, rights, duties, and functions are exercised by a board of
6-6 five directors.
6-7 (b) Temporary directors serve until initial directors are
6-8 elected under Section 2.03 of this Act.
6-9 (c) Initial directors serve until permanent directors are
6-10 elected under Section 2.04 of this Act.
6-11 (d) Permanent directors serve staggered four-year terms.
6-12 (e) To be eligible to serve as a director, a person must be
6-13 a resident of Angelina County and reside in the district.
6-14 (f) Each director must qualify to serve as director under
6-15 Sections 49.052 and 49.055, Water Code. The district shall pay the
6-16 premiums for each director's bond required under Section 49.055,
6-17 Water Code.
6-18 (g) A director serves until the director's successor has
6-19 qualified.
6-20 (h) When a director dies, resigns, or is otherwise removed,
6-21 the governor shall appoint a successor to serve for the unexpired
6-22 term.
6-23 SECTION 2.02. TEMPORARY DIRECTORS. (a) The temporary board
6-24 of directors consists of:
6-25 1. Jaime Gonzalez
6-26 2. Josephina Perez
6-27 3. Julia Esteves
7-1 4. Jose Perez
7-2 5. Tomas Fuentes
7-3 (b) If a temporary director fails to qualify for office, the
7-4 temporary directors who have qualified shall appoint a person to
7-5 fill the vacancy. If at any time there are fewer than three
7-6 qualified temporary directors, the governor shall appoint the
7-7 necessary number of persons to fill all vacancies on the board.
7-8 SECTION 2.03. CONFIRMATION AND INITIAL DIRECTORS' ELECTION.
7-9 (a) The temporary board of directors shall hold an organizational
7-10 meeting of the district and take office at that time. The directors
7-11 shall hold the meeting at a location to which a majority of the
7-12 directors agree.
7-13 (b) The temporary board of directors shall call and hold an
7-14 election to confirm establishment of the district and to elect
7-15 initial directors.
7-16 (c) At the confirmation and initial directors' election, the
7-17 temporary board of directors shall have placed on the ballot the
7-18 name of any candidate filing for an initial director's position and
7-19 blank spaces to write in the names of other persons. A temporary
7-20 director who is qualified to be a candidate under Section 2.01 of
7-21 this Act may file for an initial director's position.
7-22 (d) Section 41.001(a), Election Code, does not apply to a
7-23 confirmation and initial directors' election held as provided by
7-24 this section.
7-25 (e) Except as provided by this section, a confirmation and
7-26 initial directors' election must be conducted as provided by
7-27 Sections 49.102(a)-(g), Water Code, and the Election Code.
8-1 SECTION 2.04. ELECTION OF DIRECTORS. (a) On a uniform
8-2 election date, as provided by Section 41.001, Election Code,
8-3 selected by the initial directors, of the first even-numbered year
8-4 after the year in which the district is authorized to be created at
8-5 a confirmation election, an election shall be held in the district
8-6 for the election of three directors to serve four-year terms and
8-7 two directors to serve two-year terms.
8-8 (b) On the uniform election date selected under Subsection
8-9 (a) of this section of each subsequent second year following the
8-10 election, the appropriate number of directors shall be elected.
8-11 SECTION 2.05. MEETINGS AND ACTIONS OF THE BOARD. (a) The
8-12 board shall adopt bylaws at its first meeting or as soon after the
8-13 first meeting as is practicable.
8-14 (b) The board shall meet at least four times each year and
8-15 may meet at any other time provided in its bylaws.
8-16 (c) A majority of the directors constitutes a quorum for the
8-17 transaction of business. Except as otherwise provided in this Act,
8-18 the vote of a majority of directors present at a meeting at which a
8-19 quorum is present is required for board action.
8-20 SECTION 2.06. ORGANIZATION OF BOARD. (a) The board shall
8-21 elect from its members a president, vice president, secretary,
8-22 treasurer, and other officers as necessary. An officer's period of
8-23 service begins at a time provided by the bylaws.
8-24 (b) If a vacancy occurs in a board office, the board shall
8-25 elect one of its members to fill the unexpired period of service at
8-26 the next board meeting.
8-27 (c) The board by its bylaws shall prescribe:
9-1 (1) the powers and duties of each board office; and
9-2 (2) procedures to remove a director from a board
9-3 office.
9-4 SECTION 2.07. INTEREST IN CONTRACT. A director who is
9-5 financially interested in a contract proposed to be executed by the
9-6 district for the purchase of property or services or the
9-7 construction of facilities shall disclose the interest to the board
9-8 and may not vote on acceptance of the contract.
9-9 SECTION 2.08. DIRECTORS' COMPENSATION. (a) Subject to
9-10 Subsection (b) of this section, a director is entitled to receive
9-11 an allowance of $50 a day and reimbursement for actual and
9-12 necessary expenses incurred:
9-13 (1) for each day the director attends a meeting of the
9-14 board; and
9-15 (2) for each day the board authorizes the director to
9-16 attend to district business.
9-17 (b) A director may not receive a per diem allowance for more
9-18 than 20 days in a calendar year.
9-19 SECTION 2.09. GENERAL MANAGER. (a) The board may employ a
9-20 general manager for a term and salary set by the board.
9-21 (b) The general manager is the chief executive officer of
9-22 the district. In accordance with policies adopted by the board, the
9-23 general manager is responsible for:
9-24 (1) administering the board's directives;
9-25 (2) keeping the district's records, including minutes
9-26 of board meetings;
9-27 (3) coordinating with state, federal, and local
10-1 agencies;
10-2 (4) developing plans and programs for the board's
10-3 approval;
10-4 (5) hiring, supervising, training, and discharging the
10-5 district's employees;
10-6 (6) obtaining technical, scientific, legal, fiscal,
10-7 and other professional services; and
10-8 (7) performing any other duties the board assigns.
10-9 (c) The board may discharge the general manager.
10-10 (d) Instead of employing a general manager, the district may
10-11 contract with a local government for the services required by the
10-12 district.
10-13 SECTION 2.10. EMPLOYEE BONDS. (a) The general manager and
10-14 each employee of the district who is charged with the collection,
10-15 custody, or payment of any money of the district shall execute a
10-16 fidelity bond in an amount determined by the board and in a form
10-17 and with a surety approved by the board.
10-18 (b) The district shall pay the premiums on the employees'
10-19 bonds under this section.
10-20 SECTION 2.11. PRINCIPAL OFFICE. The district shall maintain
10-21 its principal office at any place in Angelina County designated by
10-22 the board.
10-23 SECTION 2.12. RECORDS. (a) The district shall keep:
10-24 (1) complete and accurate accounts of its business
10-25 transactions in accordance with generally accepted methods of
10-26 accounting; and
10-27 (2) complete and accurate minutes of its meetings.
11-1 (b) The district shall store its accounts, contracts,
11-2 documents, minutes, and other records at its principal office.
11-3 (c) The district shall permit reasonable public inspection
11-4 of its records during regular business hours.
11-5 SECTION 2.13. SEAL. The district shall adopt a seal and may
11-6 change the seal from time to time.
11-7 SECTION 2.14. SUIT. The district may sue and be sued in its
11-8 corporate name.
11-9 ARTICLE 3. POWERS AND DUTIES
11-10 SECTION 3.01. GENERAL POWERS AND DUTIES. (a) The district
11-11 shall:
11-12 (1) administer and enforce the terms of this Act;
11-13 (2) use its facilities and powers to accomplish the
11-14 purposes of this Act;
11-15 (3) coordinate the provision of water, wastewater, and
11-16 drainage services in the district; and
11-17 (4) control and abate water pollution in the district.
11-18 (b) Subject only to the authority of the commission, the
11-19 district has exclusive authority in the district, superseding the
11-20 authority of any local government, to:
11-21 (1) regulate septic tanks;
11-22 (2) coordinate the provision of water, wastewater, or
11-23 drainage services within, to, or from the district; and
11-24 (3) control or abate water pollution within or caused
11-25 within the district.
11-26 (c) Except as expressly limited by this Act, the district
11-27 has all powers, rights, and privileges necessary and convenient for
12-1 accomplishing the purposes of this Act that are conferred by
12-2 general law upon any conservation and reclamation district created
12-3 pursuant to Section 59, Article XVI, Texas Constitution.
12-4 (d) The powers granted to the district in this Act are
12-5 cumulative of all powers granted by other law.
12-6 SECTION 3.02. DISTRICT RULES. (a) The district shall adopt
12-7 and enforce rules reasonably required to implement this Act,
12-8 including rules governing procedure and practice before the board.
12-9 (b) The district shall print its rules and furnish copies of
12-10 the rules to any person on written request.
12-11 (c) In implementing this section, if the district adopts
12-12 rules that apply to electric, gas, and telecommunications
12-13 facilities, pipes, and lines, the rules must be consistent with and
12-14 no more stringent than state or federal requirements.
12-15 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. The district
12-16 may enter public or private property in the district's territory
12-17 for the purpose of inspecting and investigating conditions relating
12-18 to its authorized purposes under the same provisions and
12-19 restrictions applicable to the commission.
12-20 SECTION 3.04. CIVIL PENALTY; INJUNCTION. (a) A person who
12-21 violates a rule, permit, or order of the district is subject to a
12-22 civil penalty of not less than $50 and not more than $1,000 for
12-23 each violation or each day of a continuing violation.
12-24 (b) The district may sue to recover the penalty in a
12-25 district court in the county where the violation occurred. The
12-26 penalty shall be paid to the district.
12-27 (c) The district may sue for injunctive relief in a district
13-1 court in the county where a violation of its rule, permit, or order
13-2 occurs or is threatened to occur. The court may grant to the
13-3 district, without bond or other undertaking, a prohibitory or
13-4 mandatory injunction that the facts warrant, including a temporary
13-5 restraining order, temporary injunction, or permanent injunction.
13-6 (d) The district may sue for injunctive relief and a civil
13-7 penalty in the same proceeding.
13-8 (e) The commission is a necessary party to a suit brought
13-9 under this section.
13-10 SECTION 3.05. COURT REVIEW. (a) A person who is adversely
13-11 affected by a rule, act, or order of the district may sue the
13-12 district in district court to set aside the rule, act, or order.
13-13 (b) The suit must be filed not later than the 20th day after
13-14 the date on which the rule, act, or order takes effect.
13-15 (c) If a person challenges in court the validity of all or
13-16 any portion of this Act and does not prevail in the challenge, the
13-17 court shall order the person to pay the reasonable attorney's fees,
13-18 expert witness fees, and other costs incurred by all opposing
13-19 parties in defending this Act.
13-20 SECTION 3.06. SEPTIC TANKS. (a) If the district finds that
13-21 the nature of the soil or drainage in the district requires
13-22 regulation of septic tanks to prevent water pollution or to protect
13-23 the public health, the district by rule may:
13-24 (1) restrict the number and types of septic tanks
13-25 permitted in a specified area;
13-26 (2) forbid the use of a septic tank in a specified
13-27 area;
14-1 (3) forbid the installation of a new septic tank in a
14-2 specified area;
14-3 (4) establish a permit system for the installation of
14-4 a new septic tank in a specified area; or
14-5 (5) seek a gradual reduction of the number or types of
14-6 septic tanks in a specified area.
14-7 (b) Before the board adopts a rule under this section, the
14-8 board shall:
14-9 (1) consult with the commission; and
14-10 (2) hold a public hearing in the area to be affected
14-11 by the rule.
14-12 SECTION 3.07. ACQUISITION, CONSTRUCTION, AND OPERATION OF
14-13 SYSTEMS. The district may:
14-14 (1) acquire and provide by purchase, gift, or lease
14-15 any water service, wastewater service, drainage service, or
14-16 disposal service within the district;
14-17 (2) construct a disposal system and provide disposal
14-18 services within the district;
14-19 (3) operate or sell a disposal system that the
14-20 district constructs or acquires;
14-21 (4) contract with any person to operate or maintain a
14-22 disposal system that the person owns; and
14-23 (5) contract with any person to train or supervise
14-24 employees of a disposal system.
14-25 SECTION 3.08. SYSTEM CONTRACTS. (a) The district may
14-26 contract to receive and treat or dispose of water, wastewater,
14-27 drainage, or waste from any person in the district.
15-1 (b) In a contract under this section, the district shall set
15-2 fees on the basis of:
15-3 (1) the quality and quantity of the water, wastewater,
15-4 drainage, or waste;
15-5 (2) the difficulty in treating or disposing of the
15-6 water, wastewater, drainage, or waste;
15-7 (3) operation and maintenance expenses and debt
15-8 retirement service costs; and
15-9 (4) any other reasonable consideration.
15-10 SECTION 3.09. EMINENT DOMAIN. The district may exercise the
15-11 power of eminent domain under Chapter 21, Property Code, to acquire
15-12 property of any kind in Angelina County that is appropriate for the
15-13 exercise of the district's functions.
15-14 SECTION 3.10. RELOCATION OF FACILITIES. If the district
15-15 requires relocating, raising, lowering, rerouting, changing the
15-16 grade of, or altering the construction of a railroad, highway, or
15-17 pipeline or an electric transmission or distribution, telegraph, or
15-18 telephone line conduit, pole, or facility, the district shall pay
15-19 the cost of that action so as to provide comparable replacement of
15-20 any replaced facility, less the replaced facility's net salvage
15-21 value.
15-22 SECTION 3.11. USE OF PUBLIC EASEMENTS. (a) The district may
15-23 use any public roadway, street, alley, or easement in Angelina
15-24 County to accomplish its purposes, without the necessity of
15-25 securing a franchise or other governmental agreement. The use is
15-26 subject to the authority of a county to require the relocation of
15-27 facilities, at the expense of the district, to permit the widening
16-1 or straightening of a road. The county must give the district 30
16-2 days' notice that relocation is required and specify the new
16-3 location for the facilities along the right-of-way of the road.
16-4 (b) The district may not change, alter, or damage a portion
16-5 of the state highway system or any county road without first
16-6 obtaining the written consent of the Texas Department of
16-7 Transportation or the county, as applicable. The placement of a
16-8 district facility in a state or county highway right-of-way is
16-9 subject to regulation by the Texas Department of Transportation or
16-10 a county, as applicable.
16-11 SECTION 3.12. ADDITION OF TERRITORY. (a) In accordance with
16-12 this section, the district may annex additional territory in
16-13 Angelina County.
16-14 (b) Proceedings for the annexation of territory by the
16-15 district may be initiated by a petition signed by the owners of the
16-16 land proposed to be annexed. The petition must request that the
16-17 board hold a public hearing on the matters set out in the petition.
16-18 (c) The board shall hear and consider the petition and may
16-19 annex the territory if the board determines that the land should be
16-20 annexed.
16-21 (d) The consent of a municipality or other governmental
16-22 entity or political subdivision of the state is not required for
16-23 any annexation of territory by the district.
16-24 SECTION 3.13. ACQUISITION AND DISPOSITION OF PROPERTY. (a)
16-25 The district may purchase, lease, acquire by gift, maintain, use,
16-26 or operate property of any kind that is appropriate for the
16-27 exercise of its functions.
17-1 (b) The board may sell to the highest bidder, at a public or
17-2 private sale, or may exchange any property owned by the district
17-3 that is not required to carry out the district's purposes. Before
17-4 conducting a public or a private sale of property, the district
17-5 shall give notice of its intent to sell the property by publishing
17-6 notice once a week for two consecutive weeks in a newspaper of
17-7 general circulation in the district.
17-8 SECTION 3.14. FACILITIES. The district may acquire,
17-9 construct, extend, improve, maintain, reconstruct, use, or operate
17-10 any facility necessary or convenient to the exercise of its powers,
17-11 rights, duties, or functions.
17-12 SECTION 3.15. CONTRACTS. (a) The district may make contracts
17-13 and execute instruments necessary or convenient to the exercise of
17-14 its powers, rights, duties, or functions. The district may not
17-15 enter into a contract with a term greater than 50 years.
17-16 (b) This section does not prohibit the district from
17-17 purchasing surplus property from the United States through a
17-18 negotiated contract without bids.
17-19 (c) An officer, agent, or employee of the district who is
17-20 financially interested in a contract of the type described in
17-21 Subsection (b) of this section shall disclose the interest to the
17-22 board before the board votes on the acceptance of the contract.
17-23 (d) The directors are subject to Chapter 171, Local
17-24 Government Code.
17-25 SECTION 3.16. COOPERATIVE AGREEMENTS. The district may
17-26 enter into cooperative agreements with other local governments,
17-27 state agencies, or agencies of the United States:
18-1 (1) to perform water, wastewater, drainage, or waste
18-2 disposal management, inspection, and enforcement functions and to
18-3 give technical aid and education services to any party to the
18-4 agreement; and
18-5 (2) to transfer money or property to any party to the
18-6 agreement for the purpose of water quality and waste disposal
18-7 management, inspection, enforcement, and technical aid and
18-8 education.
18-9 ARTICLE 4. GENERAL FISCAL PROVISIONS
18-10 SECTION 4.01. DISBURSEMENT OF MONEY. The district may
18-11 disburse money only by check, draft, order, or other instrument
18-12 signed by the person or persons authorized in the board's bylaws or
18-13 by board resolution.
18-14 SECTION 4.02. FEES AND CHARGES. The district may establish
18-15 fees and charges not to exceed the amounts necessary to enable the
18-16 district to fulfill the obligations imposed on it by this Act.
18-17 SECTION 4.03. LOANS AND GRANTS. (a) The district may
18-18 borrow money and accept grants for its corporate purposes.
18-19 (b) The district may borrow money and accept grants from
18-20 private sources, the United States, the state, and local
18-21 governments. The district may enter into any agreement in
18-22 connection with a loan or grant that does not conflict with state
18-23 or federal law.
18-24 (c) Information of the source, amount, and any restriction
18-25 on expenditure of money the district accepts is public information.
18-26 SECTION 4.04. FISCAL YEAR. The board shall establish the
18-27 district's fiscal year.
19-1 SECTION 4.05. INDEPENDENT AUDIT AND REPORT. (a) The board
19-2 shall have an audit of the district's affairs for each fiscal year
19-3 prepared by an independent certified public accountant of
19-4 recognized integrity and ability.
19-5 (b) The district shall keep at least one copy of the most
19-6 recent audit at the district's principal office.
19-7 (c) The district shall make a copy of the most recent audit
19-8 available for inspection by any interested person during regular
19-9 business hours.
19-10 SECTION 4.06. DEPOSITORY BANKS. (a) The board shall
19-11 designate one or more banks to serve as depository for the
19-12 district's money. The district shall deposit all of its money in
19-13 the designated depository bank or banks, except:
19-14 (1) to the extent provided in a trust indenture, the
19-15 district may deposit bond proceeds and money pledged to pay bonds
19-16 with the trustee bank named in the trust indenture; and
19-17 (2) money pledged to pay bonds shall be remitted to
19-18 the bank of payment for the payment of principal and interest on
19-19 bonds.
19-20 (b) To the extent that money in a depository bank or trustee
19-21 bank is not invested or insured by the Federal Deposit Insurance
19-22 Corporation, the money shall be secured in the manner provided by
19-23 law for the security of state money.
19-24 ARTICLE 5. BONDS AND TAXES
19-25 SECTION 5.01. REVENUE BONDS. (a) For the purpose of
19-26 carrying out a power or authority conferred by this Act, the
19-27 district may issue bonds secured by a pledge of all or part of the
20-1 revenues accruing to the district from a source other than ad
20-2 valorem taxes, including money received from tolls, charges, the
20-3 sale of water or other products, and the provision of services.
20-4 (b) The district's bonds shall:
20-5 (1) be authorized by board resolution;
20-6 (2) be issued in the district's name;
20-7 (3) be signed by the president or vice president;
20-8 (4) be attested by the secretary; and
20-9 (5) bear the district's seal.
20-10 (c) The board may prescribe the form, denomination, and
20-11 interest rate of bonds issued by the district, except that bonds
20-12 must mature serially or otherwise not more than 50 years after
20-13 their date. The board may sell bonds at prices and under terms that
20-14 the board determines to be the most advantageous reasonably
20-15 available. The district's bonds may be made redeemable before
20-16 maturity at times and prices prescribed in the bonds. The
20-17 district's bonds may be secured by an indenture of trust with a
20-18 corporate trustee.
20-19 (d) The district may issue bonds in more than one series as
20-20 required for carrying out the purposes of this Act. The district
20-21 may, in issuing bonds secured by the district's revenues, reserve
20-22 the right to issue additional bonds secured by the district's
20-23 revenues that are on a parity with or are senior or subordinate to
20-24 the bonds issued earlier.
20-25 (e) The resolution authorizing the bonds or the trust
20-26 indenture securing the bonds may specify additional provisions that
20-27 shall constitute a contract between the district and its
21-1 bondholders. The board may provide:
21-2 (1) for additional bond provisions; and
21-3 (2) for a corporate trustee or receiver to take
21-4 possession of the district's facilities if the district defaults.
21-5 SECTION 5.02. REFUNDING BONDS. (a) The district may issue
21-6 refunding bonds to refund outstanding bonds and interest authorized
21-7 by this Act.
21-8 (b) Refunding bonds may:
21-9 (1) be issued to refund one or more series of
21-10 outstanding bonds;
21-11 (2) combine the pledges for the outstanding bonds for
21-12 the security of the refunding bonds; and
21-13 (3) be secured by other or additional revenues.
21-14 (c) The provisions of this Act applicable to the district's
21-15 issuance of other bonds, their security, their approval by the
21-16 attorney general, and the remedies of the holders are applicable to
21-17 refunding bonds.
21-18 (d) Refunding bonds shall be registered by the comptroller
21-19 of public accounts on surrender and cancellation of the bonds to be
21-20 refunded. Alternatively, the resolution authorizing the issuance of
21-21 refunding bonds may provide that the bonds shall be sold and the
21-22 resulting proceeds deposited in the bank where the bonds to be
21-23 refunded are payable, in which case the refunding bonds may be
21-24 issued in an amount sufficient to pay the principal and interest of
21-25 the bonds to be refunded to their option or maturity date. The
21-26 comptroller of public accounts shall register the refunding bonds
21-27 without concurrent surrender and cancellation of the bonds to be
22-1 refunded.
22-2 SECTION 5.03. APPROVAL AND REGISTRATION OF BONDS. After the
22-3 district authorizes any bonds, the district shall submit the bonds
22-4 and the record relating to their issuance to the attorney general
22-5 for approval. If the bonds are secured by a pledge of the proceeds
22-6 of a contract between the district and a municipality or other
22-7 governmental agency, authority, or district, the district shall
22-8 submit to the attorney general a copy of the contract and the
22-9 proceedings of the municipality or other governmental agency,
22-10 authority, or district authorizing the contract. If the attorney
22-11 general finds that the bonds have been authorized and the
22-12 contracts, if any, have been made in accordance with the
22-13 constitution and laws of the state, the attorney general shall
22-14 approve the bonds and contracts. On approval, the bonds shall then
22-15 be registered by the comptroller of public accounts.
22-16 SECTION 5.04. AUTHORIZED INVESTMENTS. Bonds and refunding
22-17 bonds of the district are legal, eligible, and authorized
22-18 investments for a public fund of the state, including the state
22-19 permanent school fund, or a state agency.
22-20 SECTION 5.05. AD VALOREM TAXATION. The district has the
22-21 power to impose ad valorem taxes as conferred by general law upon
22-22 water control and improvement districts, including Chapter 49,
22-23 Water Code.
22-24 ARTICLE 6. MISCELLANEOUS PROVISIONS
22-25 SECTION 6.01. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
22-26 (a) The proper and legal notice of the intention to introduce this
22-27 Act, setting forth the general substance of this Act, has been
23-1 published as provided by law, and the notice and a copy of this Act
23-2 have been furnished to all persons, agencies, officials, or
23-3 entities to which they are required to be furnished by the
23-4 constitution and other laws of this state, including the governor,
23-5 who has submitted the notice and the Act to the Texas Natural
23-6 Resource Conservation Commission.
23-7 (b) The Texas Natural Resource Conservation Commission has
23-8 filed its recommendations relating to this Act with the governor,
23-9 lieutenant governor, and speaker of the house of representatives
23-10 within the required time.
23-11 (c) All requirements of the constitution and laws of this
23-12 state and of the rules and procedures of the legislature with
23-13 respect to the notice, introduction, and passage of this Act are
23-14 fulfilled and accomplished.
23-15 SECTION 6.02. EXISTING COUNTIES, RIVER AUTHORITIES, AND
23-16 UNDERGROUND WATER CONSERVATION DISTRICTS. Notwithstanding any
23-17 provision of this Act, this Act does not impair, limit, supersede,
23-18 or alter the powers, rights, privileges, duties, functions, or
23-19 jurisdiction of a river authority in existence on the effective
23-20 date of this Act the territory of which comprises at least three
23-21 counties and includes all or part of the district, except that such
23-22 a river authority may not impose or apply any regulatory ordinance,
23-23 rule, or regulation within the district without the agreement of
23-24 the district.
23-25 SECTION 6.03. SEVERABILITY. If any portion of this Act or
23-26 the application of any portion of this Act to any person or set of
23-27 circumstances is held by a court to be unconstitutional, void,
24-1 invalid, or unenforceable, the validity of the remaining portions
24-2 of this Act or the application of the challenged portion of the Act
24-3 to other persons or sets of circumstances shall not be affected by
24-4 the court's holding. It is the intent of the legislature in
24-5 adopting this Act that no portion of the Act become inoperative or
24-6 fail by reason of the unconstitutionality or invalidity of any
24-7 other portion of the Act.
24-8 SECTION 6.04. EFFECTIVE DATE. This Act takes effect
24-9 immediately if it receives a vote of two-thirds of all the members
24-10 elected to each house, as provided by Section 39, Article III,
24-11 Texas Constitution. If this Act does not receive the vote
24-12 necessary for immediate effect, this Act takes effect September 1,
24-13 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2571 was passed by the House on April
20, 2001, by the following vote: Yeas 142, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 2571 on May 25, 2001, by the following vote: Yeas 131, Nays 0,
2 present, not voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2571 was passed by the Senate, with
amendments, on May 22, 2001, by the following vote: Yeas 30, Nays
0, 1 present, not voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor