By Lewis of Orange H.B. No. 3289
2001S0707/1
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain river authorities and water districts, the
1-3 codification of Acts creating and regulating the authorities and
1-4 districts, and the creation of the Texas Water Policy Council to
1-5 review the authorities and districts.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. The Water Code is amended by adding Title 6 to
1-8 read as follows:
1-9 TITLE 6. RIVER AUTHORITIES
1-10 SUBTITLE A. GENERAL PROVISIONS
1-11 CHAPTER 201. GENERAL PROVISIONS
1-12 Sec. 201.001. DEFINITIONS. In this title:
1-13 (1) "Commission" means the Texas Natural Resource
1-14 Conservation Commission.
1-15 (2) "River authority" means an authority or district
1-16 that was created under Section 52, Article III, or Section 59,
1-17 Article XVI, Texas Constitution, that is listed in Section
1-18 9.010(b), and that is regulated under Subtitle B or C.
1-19 Sec. 201.002. REVIEW. A river authority is subject to
1-20 review by the Texas Water Policy Council as provided by Chapter 9.
1-21 (Chapters 202 to 220 reserved for expansion
1-22 SUBTITLE B. RIVER AUTHORITIES NOT CREATED BY STATUTE
1-23 CHAPTER 221. BEXAR-MEDINA-ATASCOSA COUNTIES WATER
1-24 IMPROVEMENT DISTRICT NO. 1
1-25 Sec. 221.001. DISTRICT CREATED UNDER LAW. (a) The
2-1 "Bexar-Medina-Atascosa Counties Water Control and Improvement
2-2 District No. 1" is a water control and improvement district. The
2-3 district is a governmental agency and a body politic and corporate.
2-4 (b) The district was created under the laws of this state
2-5 and is essential to accomplish the purposes of Section 59, Article
2-6 XVI, Texas Constitution.
2-7 Sec. 221.002. DEFINITIONS. In this chapter:
2-8 (1) "Board" means the board of directors of the
2-9 district.
2-10 (2) "Director" means a member of the board.
2-11 (3) "District" means the Bexar-Medina-Atascosa
2-12 Counties Water Control and Improvement District No. 1.
2-13 Sec. 221.003. AUTHORITY TO EXCLUDE PROPERTY. (a) The
2-14 district may exclude property from the district if the board finds
2-15 after notice and hearing that exclusion of the property is in the
2-16 best interest of the district and that:
2-17 (1) the property is not irrigable with water purchased
2-18 from the district because:
2-19 (A) the district cannot deliver water by gravity
2-20 flow to a high point on the property to irrigate the property;
2-21 (B) the property is subdivided into tracts of
2-22 less than 10 acres; or
2-23 (C) the property is subdivided into town lots,
2-24 town lots and blocks, or similar small parcels of any size that
2-25 will not be used for agricultural purposes or are suitable for a
2-26 residential, a commercial, or another nonagricultural purpose; or
3-1 (2) the property has not been irrigated with water
3-2 purchased from the district for a period of not less than three
3-3 years before the date the notice for the hearing was mailed.
3-4 (b) The board may by resolution exclude land from the
3-5 district if the land was not included in the district at the time
3-6 the district was created and:
3-7 (1) the land has been subdivided into town lots and
3-8 blocks, with streets or other thoroughfares dedicated to the use of
3-9 the public; and
3-10 (2) a map and the dedication have been filed for
3-11 record with the county clerk of the county in which the land is
3-12 located.
3-13 (c) When a resolution under Subsection (b) is passed, the
3-14 secretary of the board shall enter it in the minutes of the board,
3-15 and from that time, the territory is excluded from the district and
3-16 is no longer entitled to be served with water by the district.
3-17 Sec. 221.004. HEARING ON PROPOSAL TO EXCLUDE PROPERTY;
3-18 NOTICE. (a) If the board has information that property in the
3-19 district is excludable under Section 221.003, the board may call
3-20 and hold a hearing to determine whether to exclude the property.
3-21 (b) The board by certified mail, return receipt requested,
3-22 not earlier than the 21st day or later than the 16th day before the
3-23 date of the hearing shall issue written notice of the hearing to
3-24 each owner of property in the area proposed to be excluded as shown
3-25 on the current tax rolls of the district. The notice must:
3-26 (1) describe the property proposed to be excluded;
4-1 (2) describe the basis for the proposed exclusion;
4-2 (3) state the time, date, and location of the hearing;
4-3 and
4-4 (4) advise that an interested property owner has the
4-5 right to appear at the hearing and to offer evidence to contest the
4-6 exclusion.
4-7 (c) The board shall publish notice of the hearing at least
4-8 once a week for two consecutive weeks in a newspaper of general
4-9 circulation in each county in which the property proposed to be
4-10 excluded is located. The first notice must appear not earlier than
4-11 the 40th day before or later than the 16th day before the date of
4-12 the hearing. The notice must:
4-13 (1) describe the property proposed to be excluded;
4-14 (2) state the time, date, and location of the hearing;
4-15 and
4-16 (3) advise that an interested property owner has the
4-17 right to appear at the hearing and to offer evidence to contest the
4-18 exclusion.
4-19 Sec. 221.005. CONSENT FROM HOLDERS OF INDEBTEDNESS. Before
4-20 a hearing on the exclusion of property, if the district has
4-21 outstanding bonded indebtedness or indebtedness under a loan from a
4-22 governmental agency, a written consent from an authorized
4-23 representative of the holder or holders of the indebtedness
4-24 consenting to the exclusion shall be obtained by and filed with the
4-25 district.
4-26 Sec. 221.006. SUIT TO REVIEW EXCLUSION; APPEAL. An
5-1 interested person may bring suit to review an order of the board
5-2 excluding property under this chapter in the manner provided by
5-3 Section 49.308 and may appeal as provided by that section.
5-4 Sec. 221.007. NOTICE TO COMMISSION. The board shall furnish
5-5 to the commission a copy of the order excluding property not later
5-6 than the 30th day after the date the board issues the order.
5-7 Sec. 221.008. RESULTS OF EXCLUSION ORDER. (a) Property
5-8 that has been excluded from the district under this chapter is not
5-9 entitled to purchase water from or to receive any other service
5-10 from the district.
5-11 (b) Taxes, assessments, or other charges on the excluded
5-12 property that are owed to the district at the time the order of
5-13 exclusion takes effect remain the obligation of the owner of the
5-14 excluded property and continue to be secured by statutory liens on
5-15 the property, if any.
5-16 (c) After property is excluded, the owner of the property
5-17 has no further liability to the district for future taxes,
5-18 assessments, or other charges of the district based on that
5-19 property.
5-20 Sec. 221.009. RECORDATION. After property has been excluded
5-21 from the district, the district shall record, in the real property
5-22 records of the county in which the excluded property is located, a
5-23 copy of the order excluding the property from the district. The
5-24 copy must be certified and acknowledged by the secretary of the
5-25 board.
5-26 Sec. 221.010. DISTRICT FACILITIES AND EASEMENTS ON EXCLUDED
6-1 PROPERTY. An order to exclude property does not affect or
6-2 interfere with any rights that the district has to maintain and
6-3 continue operation of any easements, canals, ditches, pipelines,
6-4 pumps, or other facilities of the district that are located on
6-5 excluded property for the purpose of servicing property remaining
6-6 in the district.
6-7 Sec. 221.011. SUBSTITUTION FOR EXCLUDED PROPERTY. (a) At
6-8 the sole discretion of the board, after an exclusion order is
6-9 issued by the board, property may be added to the district if the
6-10 property is:
6-11 (1) practically irrigable with water purchased from
6-12 the district; and
6-13 (2) in the aggregate, less than or equal to the
6-14 acreage of the property being excluded.
6-15 (b) Property may be added to the district under this chapter
6-16 only if the owner of the property files a petition requesting
6-17 inclusion. If the owner already has acreage within the district,
6-18 all taxes and other assessments owed to the district by the owner
6-19 must be current before the petition may be considered by the board.
6-20 Sec. 221.012. BOARD OF DIRECTORS. The district shall be
6-21 governed by a board of seven directors. A board election shall be
6-22 held on the first Saturday in May of even-numbered years. At each
6-23 election the appropriate number of directors shall be elected so
6-24 that the board consists of one director elected from each of the
6-25 district's five single-member precincts and two directors elected
6-26 from the district at large.
7-1 Sec. 221.013. TERMS OF DIRECTORS. The directors serve
7-2 staggered four-year terms. Three directors' terms expire May 1,
7-3 2002, and every fourth year after that date, and four directors'
7-4 terms expire May 1, 2004, and every fourth year after that date.
7-5 Sec. 221.014. QUALIFICATIONS OF DIRECTORS. A person seeking
7-6 to represent a single-member precinct of the district must own land
7-7 in the precinct to be represented. A person seeking to represent
7-8 the district at large must own land in the district.
7-9 Sec. 221.015. APPLICATION FOR PLACEMENT ON BALLOT. A person
7-10 seeking to be placed on the ballot for a board election must:
7-11 (1) indicate that the person wishes to run for a
7-12 position representing the district at large; or
7-13 (2) identify the single-member precinct from which the
7-14 person wishes to run.
7-15 CHAPTER 222. TARRANT REGIONAL WATER DISTRICT
7-16 Sec. 222.001. DISTRICT CREATED UNDER LAW. (a) The "Tarrant
7-17 Regional Water District" is a water control and improvement
7-18 district. The district is a governmental agency and a body politic
7-19 and corporate.
7-20 (b) The district was created under the laws of this state
7-21 and is essential to accomplish the purposes of Section 59, Article
7-22 XVI, Texas Constitution.
7-23 Sec. 222.002. DEFINITIONS. In this chapter:
7-24 (1) "Board" means the board of directors of the
7-25 district.
7-26 (2) "Director" means a member of the board.
8-1 (3) "District" means the Tarrant Regional Water
8-2 District.
8-3 Sec. 222.003. ANNEXATION OF TERRITORY. (a) Any territory
8-4 situated within Tarrant or Johnson County, either contiguous to the
8-5 district or not, may be annexed to the district as provided by this
8-6 section.
8-7 (b) A petition for annexation must:
8-8 (1) be signed by 50 or a majority, whichever number is
8-9 less, of the qualified voters of the territory to be annexed;
8-10 (2) be filed with the board; and
8-11 (3) describe the territory to be annexed by metes and
8-12 bounds or otherwise unless the territory is the same as that
8-13 contained in a city or town, in which event it will be sufficient
8-14 to state that the territory to be annexed is that contained within
8-15 the city or town or that portion of the city or town that is not
8-16 then contained in the district.
8-17 (c) If the board finds that the petition complies with and
8-18 is signed by the number of qualified voters required under
8-19 Subsection (b), that the annexation would be in the interest of the
8-20 territory to be annexed and the district, and that the district
8-21 will be able to supply water to the territory to be annexed or
8-22 cause water to be supplied to the territory, the board shall adopt
8-23 a resolution stating the conditions, if any, under which the
8-24 territory may be annexed to the district and requesting the
8-25 commissioners court of Tarrant or Johnson County to annex the
8-26 territory to the district. The resolution shall be conclusive of
9-1 the legal sufficiency of the petition and the qualifications of the
9-2 signers. A certified copy of the resolution and of the petition
9-3 shall be filed with the commissioners court.
9-4 (d) The commissioners court shall adopt a resolution
9-5 declaring its intention to call an election in the territory to be
9-6 annexed for the purpose of submitting the proposition of whether
9-7 the territory shall be annexed to the district. The commissioners
9-8 court shall set a time and place for a hearing to be held by the
9-9 commissioners court on the question of whether the territory to be
9-10 annexed will benefit from the improvements, works, and facilities
9-11 then owned or operated or contemplated to be owned or operated by
9-12 the district or by the other functions of the district. Because
9-13 railroad right-of-way that is not situated within the defined
9-14 limits of an incorporated city or town will not benefit from the
9-15 improvements, works, and facilities that the district is authorized
9-16 to construct, railroad right-of-way may not be annexed to the
9-17 district unless the right-of-way is contained within the limit of
9-18 an incorporated city or town that has been annexed to the district.
9-19 (e) Notice of the adoption of the resolution stating the
9-20 time and place of the hearing, addressed to the citizens and owners
9-21 of property in the territory to be annexed, shall be published one
9-22 time in a newspaper designated by the commissioners court at least
9-23 10 days before the date of the hearing. The notice must describe
9-24 the territory to be annexed in the same manner in which it is
9-25 required or permitted by this chapter to be described in the
9-26 petition.
10-1 (f) All interested persons may appear at the hearing and
10-2 offer evidence for or against the intended annexation. The hearing
10-3 may proceed in the order and under the rules that may be prescribed
10-4 by the commissioners court and may be recessed from time to time.
10-5 If, at the conclusion of the hearing, the commissioners court finds
10-6 that all the lands in the territory to be annexed will benefit from
10-7 the present or contemplated improvements, works, or facilities of
10-8 the district, the commissioners court shall adopt a resolution
10-9 calling an election in the territory to be annexed stating the date
10-10 and place or places for holding the election and appointing a
10-11 presiding judge for each voting place, who shall appoint the
10-12 necessary assistant judges and clerks to assist in holding the
10-13 election.
10-14 (g) Notice of the election, stating the date and places for
10-15 holding the election, the proposition to be voted on, and the
10-16 conditions under which the territory may be annexed, or making
10-17 reference to the resolution of the board for that purpose, shall be
10-18 published one time in a newspaper designated by the commissioners
10-19 court at least 10 days before the date set for the election.
10-20 (h) Only qualified electors who reside in the territory
10-21 sought to be annexed may vote in the election. Returns of the
10-22 election shall be made to the commissioners court.
10-23 (i) The commissioners court shall canvass the returns of the
10-24 election and adopt an order declaring the results. If the
10-25 commissioners court finds from the returns that a majority of the
10-26 votes cast are in favor of annexation, the commissioners court
11-1 shall annex the territory to the district, and the annexation shall
11-2 be incontestable except in the manner and within the time for
11-3 contesting elections under the Election Code. A certified copy of
11-4 the order shall be recorded in the deed records of the county in
11-5 which the territory is situated.
11-6 (j) In calling the election on the proposition for
11-7 annexation of territory, the commissioners court may also submit a
11-8 proposition for the assumption of the territory's part of the
11-9 tax-supported bonds of the district then outstanding and those
11-10 previously voted but not yet sold and for the levy of an ad valorem
11-11 tax on taxable property in the territory to be annexed along with
11-12 the tax in the rest of the district for the payment of the bonds.
11-13 (k) After territory is added to the district, the board may
11-14 call an election over the entire district for the purpose of
11-15 determining whether the entire district as enlarged shall assume
11-16 the tax-supported bonds then outstanding and those voted but not
11-17 yet sold and whether an ad valorem tax shall be levied on all
11-18 taxable property within the district as enlarged for the payment of
11-19 the bonds, unless the proposition had been voted along with the
11-20 annexation election and becomes lawfully binding on the territory
11-21 annexed. The election shall be called and held in the same manner
11-22 as elections for the issuance of bonds as provided by this chapter.
11-23 (l) If the territory of more than one city is proposed to be
11-24 annexed to the district, separate elections shall be held in each
11-25 city, and only the territory of the city or cities in which a
11-26 majority vote favors annexation shall be annexed. If two or more
12-1 areas which are not contiguous to each other are proposed to be
12-2 annexed to the district, separate elections shall be held in each
12-3 area, and only the area or areas in which a majority vote favors
12-4 annexation shall be annexed.
12-5 (m) If the election for the assumption of indebtedness
12-6 fails, the commissioners court shall, on request of the board,
12-7 enter an order detaching the territory from the district.
12-8 (n) All expenses of hearings and elections held under this
12-9 chapter shall be paid by the district.
12-10 Sec. 222.004. BONDS. (a) For the purpose of providing a
12-11 source of water supply for cities and other users for municipal,
12-12 domestic, industrial, and mining purposes and for the purpose of
12-13 carrying out any other power or authority of the district, the
12-14 district may issue negotiable bonds payable from revenues or taxes
12-15 or both revenues and taxes of the district as pledged by resolution
12-16 of the board. Pending the issuance of definitive bonds, the board
12-17 may authorize the delivery of negotiable interim bonds or notes
12-18 eligible for exchange or substitution by use of the definitive
12-19 bonds.
12-20 (b) Bonds of the district must be authorized by resolution
12-21 of the board, issued in the name of the district, signed by the
12-22 president or vice president of the board, and attested by the
12-23 secretary of the board and must bear the seal of the district. The
12-24 facsimile signatures of the president or of the secretary or of
12-25 both may be printed or lithographed on the bonds if authorized by
12-26 the board. The seal of the district may be impressed on the bonds
13-1 or may be printed or lithographed on the bonds.
13-2 (c) Bonds must mature serially or otherwise in not to exceed
13-3 40 years and may be sold at a price and under terms determined by
13-4 the board to be the most advantageous reasonably obtainable,
13-5 provided that the interest cost to the district, including the
13-6 discount, if any, calculated by use of standard bond interest
13-7 tables currently in use by insurance companies and investment
13-8 houses does not exceed six percent per year, which may be evidenced
13-9 by coupons. Within the discretion of the board, the bonds may be
13-10 made callable prior to maturity at such times and prices as may be
13-11 prescribed in the resolution authorizing the bonds and may be made
13-12 registrable as to principal or as to both principal and interest.
13-13 (d) Bonds may be issued in more than one series and from
13-14 time to time as required for carrying out the powers of the
13-15 district.
13-16 (e) Bonds may be secured by a pledge of all or part of the
13-17 net revenues of the district, of the net revenues of one or more
13-18 contracts made before or after the bonds are issued, or of other
13-19 revenues or income specified by resolution of the board in the
13-20 trust indenture. A pledge may reserve the right, under conditions
13-21 specified in the pledge, to issue additional bonds that will be on
13-22 a parity with or subordinate to the bonds being issued.
13-23 (f) The district may issue bonds payable from ad valorem
13-24 taxes to be levied on all taxable property in the district or may
13-25 issue bonds secured by and payable from both those taxes and the
13-26 revenues of the district. If bonds are issued payable wholly or
14-1 partially from ad valorem taxes, the board shall levy a tax
14-2 sufficient to pay the bonds and the interest on the bonds as the
14-3 bonds and interest become due. The rate of the tax for any year
14-4 may be set after giving consideration to the money received from
14-5 the pledged revenues that may be available for payment of the
14-6 principal and interest to the extent and in the manner permitted by
14-7 the resolution authorizing the issuance of the bonds.
14-8 (g) If bonds payable wholly from revenues are issued, the
14-9 board shall set, and may from time to time revise, rates of
14-10 compensation for water sold and services rendered by the district
14-11 that will be sufficient to pay the expense of operating and
14-12 maintaining the facilities of the district and to pay the bonds as
14-13 they mature and the interest on the bonds as it accrues and to
14-14 maintain the reserve and other funds as provided in the resolution
14-15 authorizing the bonds. If bonds payable partially from revenues
14-16 are issued, the board shall set rates of compensation for water
14-17 sold and services rendered by the district that will be sufficient
14-18 to assure compliance with the resolution authorizing the bonds.
14-19 (h) From the proceeds of the sale of bonds, the district may
14-20 set aside an amount for the payment of interest expected to accrue
14-21 during construction and for a reserve interest and sinking fund,
14-22 and this provision may be made in the resolution authorizing the
14-23 bonds. Proceeds from the sale of the bonds may also be used for
14-24 the payment of all expenses necessarily incurred in accomplishing
14-25 the purposes for which the district is created, including the
14-26 expenses of issuing and selling the bonds. The proceeds from the
15-1 sale of the bonds may be temporarily invested in direct obligations
15-2 of the United States government.
15-3 (i) In the event of a default or a threatened default in the
15-4 payment of principal of or interest on bonds payable wholly or
15-5 partially from revenues, any court of competent jurisdiction may,
15-6 on petition of the holders of outstanding bonds, appoint a receiver
15-7 with authority to collect and receive all income of the district
15-8 except taxes, employ and discharge agents and employees of the
15-9 district, take charge of the district's funds on hand except funds
15-10 received from taxes, unless commingled, and manage the proprietary
15-11 affairs of the district without consent or hindrance by the board.
15-12 The receiver may also be authorized to sell or make contracts for
15-13 the sale of water or renew such contracts with the approval of the
15-14 court appointing the receiver. The court may vest the receiver
15-15 with such other powers and duties as the court finds necessary for
15-16 the protection of the holders of the bonds. The resolution
15-17 authorizing the issuance of the bonds or the trust indenture
15-18 securing them may limit or qualify the rights of less than all of
15-19 the outstanding bonds payable from the same source to institute or
15-20 prosecute any litigation affecting the district's property or
15-21 income.
15-22 Sec. 222.005. REFUNDING BONDS. (a) The district may issue
15-23 refunding bonds for the purpose of refunding any outstanding bonds
15-24 and interest on the bonds. Refunding bonds may be issued to refund
15-25 more than one series of outstanding bonds and combine the pledges
15-26 for the outstanding bonds for the security of the refunding bonds
16-1 and may be secured by other or additional revenues and mortgage
16-2 liens.
16-3 (b) The provisions of this chapter with respect to the
16-4 issuance by the district of other bonds, their security, their
16-5 approval by the attorney general, and the remedies of the holders
16-6 shall be applicable to refunding bonds. Refunding bonds shall be
16-7 registered by the comptroller on surrender and cancellation of the
16-8 bonds to be refunded, but in lieu of that procedure, the resolution
16-9 authorizing the issuance of the refunding bonds may provide that
16-10 the refunding bonds shall be sold and the proceeds of the sale
16-11 deposited in the bank where the original bonds are payable, in
16-12 which case the refunding bonds may be issued in an amount
16-13 sufficient to pay the principal of and the interest on the original
16-14 bonds to their option date or maturity date, and the comptroller
16-15 shall register the refunding bonds without concurrent surrender and
16-16 cancellation of the original bonds.
16-17 Sec. 222.006. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE
16-18 LIEN. (a) Bonds, including refunding bonds, authorized by this
16-19 chapter that are not payable wholly from ad valorem taxes may be
16-20 additionally secured by a trust indenture under which the trustee
16-21 may be a bank with trust powers located either within or outside
16-22 the state. The bonds, within the discretion of the board, may be
16-23 additionally secured by a deed of trust or mortgage lien on
16-24 physical properties of the district and all franchises, easements,
16-25 water rights and appropriation permits, leases and contracts, and
16-26 all rights appurtenant to the properties, vesting in the trustee
17-1 power to sell the properties for the payment of the indebtedness,
17-2 power to operate the properties, and all other powers and authority
17-3 for the further security of the bonds.
17-4 (b) The trust indenture, regardless of the existence of a
17-5 deed of trust or mortgage lien on the properties, may contain any
17-6 provisions prescribed by the board for the security of the bonds
17-7 and the preservation of the trust estate, may make provision for
17-8 amendment or modification of the trust indenture and for the
17-9 issuance of bonds to replace lost or mutilated bonds, may condition
17-10 the right to expend district money or sell district property on
17-11 approval by a registered professional engineer selected as provided
17-12 in the trust indenture, and may make provision for the investment
17-13 of funds of the district.
17-14 (c) A purchaser under a sale under a deed of trust lien,
17-15 where one is given, shall be the absolute owner of the properties,
17-16 facilities, and rights purchased and shall have the right to
17-17 maintain and operate the properties, facilities, and rights.
17-18 Sec. 222.007. BOND ELECTIONS. (a) Bonds payable wholly or
17-19 partially from ad valorem taxes, except refunding bonds, may not be
17-20 issued unless authorized by a majority vote at an election. Only
17-21 the qualified voters who reside in the district shall be permitted
17-22 to vote at the election. Bonds not payable wholly or partially
17-23 from ad valorem taxes may be issued without an election.
17-24 (b) An election described by Subsection (a) may be called by
17-25 the board without a petition. The resolution calling the election
17-26 shall specify the time and location of the election, the purpose
18-1 for which the bonds are to be issued, the maximum amount of the
18-2 bonds, the maximum maturity of the bonds, the form of the ballot,
18-3 and the presiding judge for each voting place. The presiding judge
18-4 serving at each voting place shall appoint one assistant judge and
18-5 at least two clerks to assist in holding the election. Notice of
18-6 the election shall be given by publishing a substantial copy of the
18-7 resolution calling the election in a newspaper with general
18-8 circulation in Tarrant County once each week for two consecutive
18-9 weeks. The first publication must be at least 21 days before the
18-10 election.
18-11 (c) The returns of the election shall be made to and
18-12 canvassed by the board.
18-13 (d) The general laws relating to elections are applicable to
18-14 elections held under this section except as otherwise provided by
18-15 this chapter.
18-16 Sec. 222.008. APPROVAL AND REGISTRATION OF BONDS. After
18-17 bonds, including refunding bonds, are authorized by the district,
18-18 the bonds and the record relating to their issuance shall be
18-19 submitted to the attorney general for examination as to their
18-20 validity. If the bonds recite that they are secured by a pledge of
18-21 the proceeds of a contract previously made between the district and
18-22 a city or other governmental agency, authority, or district, a copy
18-23 of the contract and the proceedings of the city or other
18-24 governmental agency, authority, or district authorizing the
18-25 contract shall also be submitted to the attorney general. If the
18-26 bonds have been authorized and if any such contract has been made
19-1 in accordance with the constitution and laws of the state, the
19-2 attorney general shall approve the bonds and the contract, and the
19-3 bonds then shall be registered by the comptroller. After approval
19-4 and registration, the bonds and the contract, if any, are valid and
19-5 binding and are incontestable for any cause.
19-6 Sec. 222.009. CHAPTER AS FULL AUTHORITY. The provisions of
19-7 this chapter with reference to the issuance of bonds are complete,
19-8 and no proceedings or approvals shall be required except those
19-9 required by this chapter.
19-10 Sec. 222.010. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
19-11 DEPOSITS. Bonds of the district are legal and authorized
19-12 investments for banks, savings banks, trust companies, building and
19-13 loan associations, savings and loan associations, insurance
19-14 companies, fiduciaries, trustees, and guardians and for the sinking
19-15 funds of cities, towns, villages, counties, school districts, or
19-16 other political corporations or subdivisions of the state. The
19-17 bonds are eligible to secure the deposits of all public funds of
19-18 the state and all public funds of cities, towns, villages,
19-19 counties, school districts, or other political corporations or
19-20 subdivisions of the state, and the bonds are lawful and sufficient
19-21 security for such deposits to the extent of their value when
19-22 accompanied by all unmatured coupons.
19-23 Sec. 222.011. CONTRACTS WITH CITIES AND OTHERS. The
19-24 district may enter into contracts with cities and others for the
19-25 supply of water. The district may also contract with a city for
19-26 the rental or leasing of or for the operation of the water
20-1 production, water supply, or water filtration or purification and
20-2 water supply facilities of the city for such consideration as the
20-3 district and the city may agree. The contract may be on such terms
20-4 and for such time as the parties may agree and may provide that it
20-5 shall continue in effect until bonds specified in the contract and
20-6 refunding bonds issued in lieu of such bonds are paid.
20-7 Sec. 222.012. EXEMPTION FROM TAXATION. The accomplishment
20-8 of the purposes stated in this chapter is for the benefit of the
20-9 people of this state and for the improvement of their properties
20-10 and industries, and the district, in carrying out the purposes of
20-11 this chapter, will be performing an essential public function under
20-12 Section 59, Article XVI, Texas Constitution. The district shall
20-13 not be required to pay any tax or assessment on its properties or
20-14 any part of its properties, and the bonds issued under this chapter
20-15 and the transfer of and income from the bonds, including profits
20-16 made on the sale of the bonds, shall at all times be free from
20-17 taxation within the state.
20-18 Sec. 222.013. DEPOSITORY. The board may select more than
20-19 one depository.
20-20 Sec. 222.014. PURCHASE OF PROPERTY. The district may
20-21 purchase the properties of any other water district located wholly
20-22 or partially in the district for such consideration as may be
20-23 agreed on by the board and the boards of directors of the other
20-24 districts, which consideration may be or include the assumption by
20-25 the district of the outstanding bonds of the district from which
20-26 the purchase is made. If the district proposes to pay such assumed
21-1 bonds by the levy of a tax, the bonds shall be assumed by an
21-2 election called and held over the entire district in the manner
21-3 provided by this chapter for the authorization of bonds.
21-4 Sec. 222.015. SEWAGE TRANSPORTATION, TREATMENT, AND
21-5 DISPOSAL. (a) The district may purchase, construct, improve, and
21-6 repair works and facilities necessary for the transportation,
21-7 treatment, and disposal of sewage and industrial wastes and
21-8 effluent and may issue negotiable bonds for those purposes. The
21-9 district may make contracts with cities and others under which the
21-10 district will transport, treat, and dispose of sewage from the
21-11 cities. The district may also make contracts with a city for the
21-12 use of certain sewage transportation, treatment, and disposal
21-13 facilities owned by the city or by the district.
21-14 (b) Bonds issued under this section may be payable from the
21-15 revenues under any contract or contracts or other income and, if
21-16 authorized by an election, bonds may be made payable from taxes or
21-17 from taxes and revenues. The provisions of this chapter relating
21-18 to bonds issued by the district shall be applicable to bonds issued
21-19 under this section.
21-20 (c) The district may have its bonds and sewer contracts
21-21 approved by the attorney general with the effect prescribed in this
21-22 chapter or, in the discretion of the board, may have its bonds and
21-23 sewer contracts validated by a suit in the district court as
21-24 provided in Chapter 1205, Government Code, or may have the bonds
21-25 and contracts validated by suit and approved. The interest rate
21-26 and sale price of the bonds need not be set until after the
22-1 termination of the validation proceedings or suit.
22-2 (d) If the proposed bonds recite that they are secured by a
22-3 pledge of the proceeds of a contract or contracts previously made
22-4 between the district and one or more cities, the petition shall so
22-5 allege and the notice of the suit shall mention the allegation and
22-6 the city fund or revenues from which the contract or contracts are
22-7 payable. The suit shall be in the nature of a proceeding in rem.
22-8 The judgment shall be res judicata as to the validity of the
22-9 contract or contracts and the pledge of the revenues of the
22-10 contracts.
22-11 Sec. 222.016. EMINENT DOMAIN. If the district, in the
22-12 exercise of any of the powers granted under this chapter, whether
22-13 it be the power of eminent domain, the power of relocation, or any
22-14 other power, makes necessary the relocation, raising, rerouting,
22-15 changing the grade, or altering the construction of any highway,
22-16 railroad, electric transmission line, telephone or telegraph
22-17 properties and facilities, or pipeline, all such necessary
22-18 relocation, raising, rerouting, changing the grade, or alteration
22-19 of construction shall be accomplished at the sole expense of the
22-20 district. In this section, "sole expense" means the actual cost of
22-21 such relocation, raising, lowering, rerouting, change in grade, or
22-22 alteration of construction in providing comparable replacement
22-23 without enhancement of the facilities, after deducting the net
22-24 salvage value derived from the old facility. The power of eminent
22-25 domain exercised by the district under this chapter shall be
22-26 limited to Tarrant County.
23-1 CHAPTER 223. TITUS COUNTY FRESH WATER SUPPLY DISTRICT NO. 1
23-2 Sec. 223.001. DISTRICT CREATED UNDER LAW. (a) The "Titus
23-3 County Fresh Water Supply District No. 1" is a governmental agency
23-4 and a body politic and corporate.
23-5 (b) The district was created under the laws of this state
23-6 and is essential to accomplish the purposes of Section 59, Article
23-7 XVI, Texas Constitution.
23-8 Sec. 223.002. DEFINITIONS. In this chapter:
23-9 (1) "Board" means the board of supervisors of the
23-10 district.
23-11 (2) "District" means the Titus County Fresh Water
23-12 Supply District No. 1.
23-13 (3) "Supervisor" means a member of the board.
23-14 Sec. 223.003. TERRITORY. The district includes all of the
23-15 territory contained within the boundaries of Titus County.
23-16 Sec. 223.004. PERMITS AND CERTIFICATION FROM COMMISSION.
23-17 (a) The district shall obtain from the commission all permits
23-18 necessary under general law for the acquisition of water.
23-19 (b) Before the district issues any bonds to construct a
23-20 reservoir and related facilities for conserving, transporting, and
23-21 distributing freshwater, it shall secure prior certification of
23-22 feasibility from the commission as provided by Section 49.181.
23-23 Sec. 223.005. BOARD OF SUPERVISORS. (a) The district is
23-24 governed by a board of five elected supervisors as provided by the
23-25 laws relating to freshwater supply districts.
23-26 (b) Supervisors shall serve for staggered terms of two
24-1 years. Supervisors hold office until their successors are chosen
24-2 and have qualified. An election shall be held on the second
24-3 Tuesday of January of each even-numbered year to elect two
24-4 supervisors and on the second Tuesday of January of each
24-5 odd-numbered year to elect three supervisors to replace those whose
24-6 terms are expiring.
24-7 (c) An election for supervisors shall be called by
24-8 resolution of the board, and the results of the election shall be
24-9 canvassed and declared by the board. The board shall designate the
24-10 place or places of holding the election and shall name the election
24-11 officers. The board is responsible for election supplies and
24-12 expenses.
24-13 (d) A vacancy on the board shall be filled for the unexpired
24-14 term by appointment made by the remainder of the board. If the
24-15 number of supervisors is reduced to less than three for any reason,
24-16 the remaining supervisors shall immediately call a special election
24-17 to fill the vacant positions. If the board fails to call an
24-18 election as required by this subsection, a district court may, on
24-19 the application of a voter or taxpayer of the district, issue an
24-20 order requiring that an election be called by the remaining
24-21 supervisors.
24-22 (e) Notice of an election shall be published in a newspaper
24-23 of general circulation in the county one time at least 30 days
24-24 before the date of the election.
24-25 (f) Any person desiring that the person's name be printed on
24-26 the ballot as a candidate for supervisor shall file a petition,
25-1 signed by not less than 25 qualified voters, asking that the
25-2 person's name be printed on the ballot. The petition shall be
25-3 filed with the secretary of the board at least 30 days before the
25-4 date of the election.
25-5 Sec. 223.006. DISTRICT TAXES. (a) In addition to the
25-6 powers set forth in the laws relating to freshwater supply
25-7 districts, the district by resolution of the board may authorize
25-8 the assessor and collector of taxes for Titus County to assess and
25-9 collect taxes for the district.
25-10 (b) Not later than July 20 of each year, the board shall
25-11 levy the tax on all taxable property within the district that is
25-12 subject to taxation and shall immediately certify the tax rate to
25-13 the assessor and collector of taxes for Titus County. The tax so
25-14 levied shall be collected on all property subject to taxation by
25-15 the assessor and collector of taxes for Titus County on the county
25-16 tax values and in the same manner and under the same conditions as
25-17 county taxes.
25-18 (c) The assessor and collector of taxes shall charge and
25-19 deduct from payments to the district the fees for assessing and
25-20 collecting the tax at a rate determined by the board; provided,
25-21 however, that the fees may not exceed two percent of the amounts
25-22 collected and may not exceed $5,000 for any one year. The fees
25-23 shall be deposited in the county's general fund and shall be
25-24 reported as fees of office of the assessor and collector of taxes.
25-25 (d) Interest and penalties on taxes paid to the district
25-26 shall be the same as for county taxes.
26-1 (e) The residue of tax collections, after deduction of
26-2 discounts and fees of assessing and collecting the taxes, shall be
26-3 deposited in the district depository.
26-4 Sec. 223.007. GENERAL POWERS AND DUTIES. (a) In addition
26-5 to the powers set forth in the laws relating to freshwater supply
26-6 districts and other laws relating specifically to the district, the
26-7 district may enter into agreements with the state or any of its
26-8 agencies, including the Texas Water Development Board, in order
26-9 that the district may effect its purposes of conserving,
26-10 transporting, and distributing freshwater as contemplated by
26-11 Section 59, Article XVI, Texas Constitution, and laws that have
26-12 been enacted pursuant to that section.
26-13 (b) An agreement under Subsection (a) may provide that the
26-14 district may develop, construct, own, and operate facilities
26-15 jointly with the state or its agencies, may develop, construct, and
26-16 operate the facilities on behalf of the state or its agencies, or
26-17 may permit the state or its agencies to develop, construct, or
26-18 operate facilities on behalf of the district.
26-19 Sec. 223.008. ADDITIONAL SPECIFIC POWERS. (a) In addition
26-20 to the powers set forth in the laws relating to freshwater supply
26-21 districts, the district may make contracts with cities, private
26-22 corporations, and others under which the district will sell water
26-23 to the parties. The district may pledge the proceeds from one or
26-24 more contracts for the payment of bonds issued by the district.
26-25 (b) In addition to the authority granted by Section 49.222,
26-26 the district may exercise the power of eminent domain to acquire
27-1 land:
27-2 (1) for roads;
27-3 (2) to prevent pollution; and
27-4 (3) for the construction of water filtration plants
27-5 and distribution lines and sanitary disposal plants and related
27-6 facilities.
27-7 (c) The district may lease any land acquired by eminent
27-8 domain to private persons, firms, or corporations for the
27-9 construction of recreational facilities, boating facilities,
27-10 motels, lodges, homesites, and related facilities.
27-11 (d) The district may construct and operate water filtration
27-12 plants and distribution lines, distribution systems for raw and
27-13 filtered water, and sanitary sewage disposal plants and related
27-14 facilities. Revenue bonds of the district may be issued to pay for
27-15 these plants and facilities.
27-16 (e) If the district, in the exercise of the power of eminent
27-17 domain or power of relocation or any other power granted by this
27-18 chapter, makes necessary the relocation, raising, rerouting,
27-19 changing the grade, or altering the construction of any highway,
27-20 railroad, electric transmission line, telegraph or telephone
27-21 properties and facilities, or pipeline, all such necessary
27-22 relocation, raising, rerouting, changing the grade, or alteration
27-23 of construction shall be accomplished at the sole expense of the
27-24 district. In this subsection, "sole expense" means the actual cost
27-25 of such relocation, raising, lowering, rerouting, change in grade,
27-26 or alteration of construction in providing comparable replacement
28-1 without enhancement of the facilities, after deducting the net
28-2 salvage value derived from the old facility.
28-3 Sec. 223.009. CONFLICTS. Nothing in this chapter shall be
28-4 construed to violate any provision of the federal or state
28-5 constitutions, and all acts done under this chapter shall be done
28-6 in such manner as will conform to those constitutions, whether
28-7 expressly provided or not. If any procedure under this chapter is
28-8 held by any court to be a violation of either of those
28-9 constitutions, the district shall have the power by resolution to
28-10 provide an alternative procedure that conforms to those
28-11 constitutions.
28-12 (Chapters 224 to 250 reserved for expansion
28-13 SUBTITLE C. RIVER AUTHORITIES CREATED BY STATUTE
28-14 CHAPTER 251. ANGELINA AND NECHES RIVER AUTHORITY
28-15 Sec. 251.001. CREATION. (a) A conservation and reclamation
28-16 district to be known as the "Angelina and Neches River Authority"
28-17 is created. The authority is a governmental agency and a body
28-18 politic and corporate.
28-19 (b) The authority is created under and is essential to
28-20 accomplish the purposes of Section 59, Article XVI, Texas
28-21 Constitution.
28-22 (c) The authority may exercise the powers granted by Section
28-23 59, Article XVI, Texas Constitution, to districts created to
28-24 conserve, store, control, preserve, utilize, and distribute the
28-25 storm waters, floodwaters, and waters of the rivers and streams of
28-26 the state and any powers contemplated and implied by the purposes
29-1 of that section or conferred by general law and the provisions of
29-2 this chapter.
29-3 (d) Nothing in this chapter shall authorize the authority to
29-4 levy any taxes or special assessments or to create any debt payable
29-5 out of taxation.
29-6 (e) The authority may exercise all the rights and powers of
29-7 an independent governmental agency and a body politic and corporate
29-8 to construct, maintain, and operate in the valleys of the Neches
29-9 River and its tributaries, within or outside the boundaries of the
29-10 authority, works considered essential to the operation and
29-11 administration of the authority in the control, storing,
29-12 preservation, and distribution to all useful purposes of the waters
29-13 of the Neches River and its tributary streams, including the storm
29-14 waters and floodwaters of the river and the streams. The authority
29-15 may exercise the authority and power of control and regulation over
29-16 the waters of the Neches River and its tributaries as may be
29-17 exercised by the state, subject to the provisions of the
29-18 constitution and the acts of the legislature.
29-19 (f) The rights, powers, privileges, authority, and functions
29-20 granted to the authority and the authority itself are expressly
29-21 subject to Sections 17.183-17.188, Sections 17.271-17.277, and
29-22 Chapters 11, 12, 26, and 49.
29-23 Sec. 251.002. DEFINITIONS. In this chapter:
29-24 (1) "Authority" means the Angelina and Neches River
29-25 Authority.
29-26 (2) "Board" means the board of directors of the
30-1 authority.
30-2 (3) "Director" means a member of the board.
30-3 Sec. 251.003. COORDINATION WITH OTHER DISTRICTS. A
30-4 drainage, conservation, reclamation, or other district created as
30-5 provided by Section 59, Article XVI, Texas Constitution, may
30-6 coordinate its plans with the authority and may enter into joint
30-7 undertakings for the purposes for which the authority and the
30-8 district are created. Any joint undertakings must be approved by a
30-9 majority of the boards of directors of the authority and the
30-10 districts involved.
30-11 Sec. 251.004. BOUNDARIES. (a) The territory to be included
30-12 within the boundaries of the authority shall be that part of the
30-13 state defined as follows: All that territory lying and being
30-14 situated within the watershed of the Neches River and its
30-15 tributaries, and which includes the following named counties, lying
30-16 wholly or in part within said watershed: Van Zandt, Angelina,
30-17 Nacogdoches, San Augustine, Sabine, Jasper, Newton, Rusk, Shelby,
30-18 Houston, Trinity, Polk, and Orange, and that portion of the
30-19 drainage area of Flat Creek in Henderson County which lies west of
30-20 presently designated Farm-to-Market Road 607 leading from LaRue
30-21 through Leagueville to Brownsboro; provided that there is excepted
30-22 from the area covered by the Angelina and Neches River Authority
30-23 all the area presently covered by the Lower Neches Valley Authority
30-24 and the Upper Neches River Municipal Water Authority.
30-25 (b) It is the intent of the legislature to preserve the area
30-26 and authority of the Lower Neches Valley Authority, the Upper
31-1 Neches River Municipal Water Authority, and the Neches River
31-2 Conservation District existing on August 29, 1977.
31-3 Sec. 251.005. BOARD OF DIRECTORS. (a) The management and
31-4 control of the affairs of the authority are vested in a board of
31-5 directors consisting of nine members, who must be freehold property
31-6 taxpayers and legal voters of the state.
31-7 (b) Directors are appointed by the governor with the advice
31-8 and consent of the senate and serve staggered six-year terms. The
31-9 directors shall hold office after their appointment and
31-10 qualification until their successors are appointed and have
31-11 qualified.
31-12 (c) A vacancy on the board is filled by the governor in the
31-13 manner provided by this section for the unexpired term. Within 15
31-14 days after appointment, a director shall qualify by taking the
31-15 official oath and filing a good and sufficient bond with the
31-16 secretary of state. The official bond of each director, in the
31-17 amount of $1,000, shall be payable to the authority and conditioned
31-18 on the faithful performance of the director's duties and is subject
31-19 to approval by the secretary of state.
31-20 Sec. 251.006. OFFICERS; VOTING REQUIREMENTS; WARRANTS. The
31-21 board shall elect a president, vice president, and
31-22 secretary-treasurer. Five directors constitute a quorum at board
31-23 meetings, and a concurrence of a majority of those present shall be
31-24 sufficient in all matters pertaining to the business of the
31-25 authority, except that the letting of construction contracts and
31-26 the authorization of the issuance of warrants paying such contracts
32-1 require the concurrence of five directors. Warrants for the
32-2 payment of money may be drawn and signed by the secretary-treasurer
32-3 and president when such accounts have been contracted and ordered
32-4 paid by the board.
32-5 Sec. 251.007. OFFICER AND EMPLOYEE BONDS. The board shall
32-6 require an officer or employee who collects, pays, or handles any
32-7 funds of the authority under board orders to furnish good and
32-8 sufficient bond, with a duly authorized surety company payable to
32-9 the authority, conditioned on the faithful performance of the
32-10 person's duties and accounting for all funds and property of the
32-11 authority coming into the person's hands. Bonds required by this
32-12 section shall be in sufficient amounts to safeguard the authority.
32-13 Sec. 251.008. DUTIES OF OFFICERS; MEETINGS. (a) The
32-14 president is the chief executive officer of the authority and
32-15 presides at board meetings. The vice president acts as president
32-16 in case of the absence or disability of the president.
32-17 (b) The secretary-treasurer acts as the secretary of the
32-18 board and is responsible for keeping a record of all proceedings
32-19 and all orders of the board. The secretary-treasurer shall receive
32-20 and receipt for all funds received by the authority and shall keep
32-21 books and records of all funds received and expended. In case of
32-22 the absence or inability of the secretary-treasurer to act, a
32-23 secretary pro tempore shall be selected by the board.
32-24 (c) The board shall hold its meetings at its office and
32-25 principal place of business, unless it directs otherwise for
32-26 specific occasions when called by order of the president, vice
33-1 president, or a majority of its members. The board shall set, by
33-2 order entered in the minutes of its proceedings, a specified time
33-3 for its regular meetings.
33-4 Sec. 251.009. DIRECTOR FEES. A director is entitled to
33-5 receive a fee not to exceed $10 per day for each day of service
33-6 necessary to discharge the director's duties, provided that the
33-7 service is authorized by vote of the board. Directors shall file
33-8 with the secretary of the board a verified statement showing the
33-9 actual number of days of service each month on the last day of the
33-10 month or as soon after that date as possible and before a warrant
33-11 shall be issued for the service.
33-12 Sec. 251.010. RECORDS; AUTHORITY OFFICE. The authority
33-13 shall keep a true and full account of all board meetings and
33-14 proceedings, and records of the board must be maintained in a
33-15 secure manner. The records are the property of the authority and
33-16 are subject to public inspection. A regular office shall be
33-17 established and maintained for conduct of authority business within
33-18 the authority.
33-19 Sec. 251.011. ACCOUNT RECORDS; AUDIT. (a) The authority
33-20 shall keep a complete book of accounts, and the account books and
33-21 records of the authority and of the depository of the authority
33-22 shall be audited by a certified public accountant annually as soon
33-23 as practicable after the end of the year.
33-24 (b) The audit report covering the preceding calendar year
33-25 shall be submitted at the first regular meeting of the board after
33-26 the end of the year. A copy of the report shall be filed in the
34-1 office of the authority, with the depository of the authority, in
34-2 the office of the auditor, and with the commission, and all such
34-3 copies shall be open to public inspection.
34-4 Sec. 251.012. MANAGING DIRECTOR AND EMPLOYEES. The board
34-5 may employ a managing director for the authority and may delegate
34-6 to the managing director full authority to manage and operate the
34-7 affairs of the authority subject only to orders of the board.
34-8 Compensation for the managing director and employees shall be set
34-9 by the board. Employees of the authority may be removed by the
34-10 board.
34-11 Sec. 251.013. SURETY BONDS. All bonds required to be given
34-12 by directors, officers, and employees of the authority shall be
34-13 executed by a surety company authorized to do business in this
34-14 state. The authority may pay the premiums on the bonds required by
34-15 this section.
34-16 Sec. 251.014. CONFLICT OF INTEREST; PENALTY. A director,
34-17 engineer, or employee of the authority may not be interested,
34-18 directly or indirectly, either for themselves or as agents for
34-19 anyone else, in any contract for the purchase or construction of
34-20 any work by the authority. If a director, engineer, or employee
34-21 becomes interested, directly or indirectly, in such a contract, the
34-22 person shall be guilty of a misdemeanor and on conviction shall be
34-23 punished by a fine not to exceed $1,000, by confinement in the
34-24 county jail for not less than six months or more than one year, or
34-25 by both fine and imprisonment.
34-26 Sec. 251.015. POWER AND DUTIES. (a) The authority may
35-1 control and employ the waters of the Neches River and its
35-2 tributaries, including the storm waters and floodwaters of the
35-3 rivers and their tributaries, for the conservation and beneficial
35-4 use of the waters in the manner and for the particular purposes
35-5 provided in this section.
35-6 (b) The authority may provide through practical and legal
35-7 means for the control and coordination of the regulation of the
35-8 waters of the Neches River and its tributaries.
35-9 (c) The authority may provide by adequate organization and
35-10 administration for the preservation of the equitable rights of the
35-11 people of the different sections of the watershed area, in the
35-12 beneficial use of the waters of the Neches River and its
35-13 tributaries.
35-14 (d) The authority may provide for storing, controlling, and
35-15 conserving the waters of the Neches River and its tributaries
35-16 within or outside the authority in order to prevent the escape of
35-17 any of the waters without the maximum of public service, prevent
35-18 the devastation of lands from recurrent overflows, and protect life
35-19 and property in the authority from uncontrolled floodwaters.
35-20 (e) The authority may provide for the conservation of the
35-21 waters of the Neches River and its tributaries essential for the
35-22 domestic uses of the people of the authority, including all
35-23 necessary water supplies for cities and towns.
35-24 (f) The authority may provide for the irrigation of all
35-25 lands in the authority, or lands outside the authority but within
35-26 the watershed area, where irrigation is required for agricultural
36-1 purposes, or where irrigation may be considered helpful to more
36-2 profitable agricultural production, and for the equitable
36-3 distribution of the waters to the regional potential requirements
36-4 for all uses, domestic, manufacturing, and irrigation. All plans
36-5 and all works provided by the authority, and all works which may be
36-6 provided under the control of the authority, shall give primary
36-7 consideration to the necessary and potential needs for water by or
36-8 within the area in the authority constituting the watershed of the
36-9 Neches River and its tributaries.
36-10 (g) The authority may provide for the encouragement and
36-11 development of drainage systems and provisions for drainage of
36-12 lands in the valleys of the Neches River and its tributaries
36-13 needing drainage for profitable agricultural production and for
36-14 drainage of other lands in the watershed area of the authority
36-15 requiring drainage for the most advantageous use.
36-16 (h) The authority may provide for the encouragement of the
36-17 conservation of all soils against destructive erosion to prevent
36-18 the increased risk of flood caused by such erosion.
36-19 (i) The authority may control and make available for
36-20 employment waters of the Neches River and its tributaries in the
36-21 development of commercial and industrial enterprises in all
36-22 sections of the watershed area of the authority.
36-23 (j) The authority may provide for the control, storing, and
36-24 employment of waters of the Neches River and its tributaries in the
36-25 development and distribution of hydroelectric power, where such use
36-26 may be economically coordinated with other and superior uses and
37-1 subordinated to the uses declared by law to be superior, and may
37-2 provide for all other purposes for which floodwaters and storm
37-3 waters when controlled and conserved may be used in the performance
37-4 of a useful service as contemplated and authorized by provisions of
37-5 the constitution and the public policy declared by such powers.
37-6 (k) The authority may purchase or construct all works
37-7 necessary or convenient for the exercise of the powers and to
37-8 accomplish the purposes specified in this chapter and to purchase
37-9 or otherwise acquire all lands or other property necessary or
37-10 convenient for carrying out those purposes.
37-11 Sec. 251.016. EMINENT DOMAIN. The right of eminent domain
37-12 is expressly conferred on the authority to enable it to acquire the
37-13 fee simple title to, or easement or right-of-way over and through,
37-14 lands, water, or lands under water, private or public, within and
37-15 outside the authority, necessary or convenient to carry out any of
37-16 the purposes and powers conferred on the authority by this chapter.
37-17 All condemnation proceedings shall be under the direction of the
37-18 board and in the name of the authority, and the assessment of
37-19 damages and all procedures with reference to condemnation, appeal,
37-20 and payment shall be in conformity with Chapter 21, Property Code.
37-21 Sec. 251.017. FEES AND CHARGES. (a) The board shall
37-22 prescribe fees and charges to be collected for the use of water,
37-23 water connections, or other service. The fees and charges shall be
37-24 reasonable and equitable and fully sufficient to produce revenues
37-25 adequate to pay:
37-26 (1) all expenses necessary for the operation and
38-1 maintenance of the improvements and facilities of the authority,
38-2 including the cost of the acquisition of properties and materials
38-3 necessary to maintain the improvements and facilities in good
38-4 condition and to operate them efficiently, necessary wages and
38-5 salaries of the authority, and other expenses reasonably necessary
38-6 for the efficient operation of the improvements and facilities;
38-7 (2) the annual or semiannual interest on any
38-8 obligation issued under this chapter payable out of the revenues of
38-9 the improvements and facilities; and
38-10 (3) the amount required to be paid annually into the
38-11 sinking fund for the payment of any obligations issued under this
38-12 chapter payable out of the revenues of the improvements and
38-13 facilities.
38-14 (b) No other charge shall be made on the revenues derived
38-15 from the improvements and facilities while any obligations issued
38-16 under this chapter remain outstanding and unpaid as to principal or
38-17 interest; provided, however, that out of revenues that may be
38-18 received in excess of those required for the purposes listed in
38-19 Subsections (a)(1), (2), and (3), the board may pay the cost of
38-20 improvements and replacements not covered by Subsection (a)(1) and
38-21 may establish a reasonable depreciation and emergency fund.
38-22 (c) The fees and charges of the authority may not be in
38-23 excess of what is reasonably necessary to fulfill the obligations
38-24 imposed on the authority by this chapter.
38-25 Sec. 251.018. EMPLOYEES AND COMPENSATION. The authority,
38-26 through its board, may employ managers, engineers, attorneys, and
39-1 all necessary employees to properly construct, operate, and
39-2 maintain the works of the authority and carry out the provisions of
39-3 this chapter and may pay reasonable compensation set by the board
39-4 for such services.
39-5 Sec. 251.019. CONTRACTS. (a) The authority may make and
39-6 enter into contracts, leases, and agreements necessary or
39-7 convenient to carry out the powers granted in this chapter.
39-8 Contracts, leases, and agreements may be entered into with any
39-9 person, real or artificial, any corporation, municipal, public, or
39-10 private, or any government or governmental agency, including the
39-11 United States government and the state.
39-12 (b) The authority may convey or cause to be conveyed any of
39-13 its properties, rights, lands, tenements, easements, improvements,
39-14 reservoirs, dams, canals, plants, laterals, works, and facilities
39-15 to the United States government or any of its agencies and may
39-16 enter into a lease with the United States government or any of its
39-17 agencies relative to such property or right. The authority may
39-18 obligate itself to pay rent out of the income and revenues of the
39-19 property or right subject to the lease, with or without the
39-20 privilege of purchase; provided, however, that nothing in this
39-21 section authorizes the assumption by the authority of any
39-22 obligation requiring payment out of taxes.
39-23 (c) Contracts, leases, and agreements authorized by this
39-24 section shall be approved by resolution of the board and shall be
39-25 executed by the president and attested by the secretary.
39-26 Sec. 251.020. RIGHT TO SUE. The authority may sue and be
40-1 sued.
40-2 Sec. 251.021. APPROVAL OF CERTAIN WORKS. Before the
40-3 authority establishes a diversion point or constructs the canals,
40-4 pumping plants, and other works provided for in this chapter, the
40-5 authority must present plans and specifications to the commission
40-6 for approval.
40-7 Sec. 251.022. COMMISSION SUPERVISION. The authority is
40-8 subject to the continuing rights of supervision by the commission
40-9 in the exercise of the powers and duties provided by this chapter.
40-10 The commission may approve or refuse to approve the adequacy of any
40-11 plan or plans for flood control or conservation improvement
40-12 purposes devised by the authority for the achievement of the plans
40-13 and purposes intended in the creation of the authority that
40-14 contemplate improvements supervised by the commission under the
40-15 provisions of general law.
40-16 Sec. 251.023. ADDITIONAL POWERS. (a) The authority has and
40-17 may exercise the functions, powers, authority, rights, and duties
40-18 necessary to accomplish the purposes for which the authority is
40-19 created, including investigating and planning, acquiring,
40-20 constructing, maintaining, and operating all necessary properties,
40-21 lands, rights, tenements, easements, improvements, reservoirs,
40-22 dams, canals, laterals, plants, works, and facilities, including
40-23 the acquisition within or outside the authority of lands,
40-24 rights-of-way, water rights, and all other properties, tenements,
40-25 and easements, and other rights incident to, helpful to, or in aid
40-26 of carrying out the purposes of the authority as provided by this
41-1 chapter.
41-2 (b) This chapter shall be liberally construed to effectuate
41-3 each and all of the purposes provided by this chapter.
41-4 Sec. 251.024. GRANTS AND LOANS. The authority may receive
41-5 grants and borrow money from a department or agency of the United
41-6 States or from any other source and in evidence of such debt
41-7 undertaken may issue the notes, warrants, certificates of
41-8 indebtedness, or other form of obligations of the authority,
41-9 payable solely out of the revenues to be derived from the
41-10 improvements and facilities and the operations and devices of the
41-11 improvements and facilities.
41-12 Sec. 251.025. ISSUANCE OF OBLIGATIONS. (a) Each issue of
41-13 obligations authorized under this chapter constitutes a separate
41-14 series and shall be appropriately designated. The obligations
41-15 shall not constitute an indebtedness or a pledge of the credit of
41-16 the authority and shall never be paid, in whole or in part, out of
41-17 any funds raised, or to be raised, by taxation and must contain a
41-18 recital to that effect. Obligations issued under this chapter
41-19 shall be in registered or coupon form and if in coupon form may be
41-20 registrable as to principal only or as to both principal and
41-21 interest.
41-22 (b) The obligations shall bear interest at a rate not to
41-23 exceed six percent per year, payable annually or semiannually, and
41-24 must be in denominations and must mature serially, or at one time,
41-25 not more than 50 years from their date in the manner provided by
41-26 the board.
42-1 (c) The principal of and interest on the obligations shall
42-2 be made payable within or outside the state at the discretion of
42-3 the board. The obligations may be made redeemable at the option of
42-4 the board prior to maturity at premiums the board determines.
42-5 (d) The obligations shall be signed by the president and
42-6 secretary of the board. The interest coupons attached to the
42-7 obligations may be executed with facsimile signatures of the
42-8 officers.
42-9 (e) The obligations shall be sold in the manner and at the
42-10 time the board determines to be expedient and necessary to the
42-11 interest of the authority, provided that in no event shall
42-12 obligations be sold for a price that will result in an interest
42-13 yield of more than six percent, computed to maturity according to
42-14 standard bond tables in general use by banks and insurance
42-15 companies.
42-16 (f) If an officer whose signature is on the obligations or
42-17 coupons ceases to be an officer before the delivery of the
42-18 obligations to the purchaser, the signature nevertheless shall be
42-19 valid and sufficient for all purposes.
42-20 (g) Obligations issued under the provisions of this chapter
42-21 are negotiable instruments under the laws of this state.
42-22 Sec. 251.026. REVENUE OBLIGATIONS. (a) Obligations issued
42-23 under this chapter may be payable from, and secured by the pledge
42-24 of, all the revenues derived from the operation of the improvements
42-25 and facilities of the authority, exclusive of any revenues derived
42-26 from taxation of assessments; may be payable from, and secured by
43-1 the pledge of, only such revenues as may be derived from the
43-2 operation of the improvements and facilities acquired with the
43-3 proceeds of the sale of such obligations; or may be payable from,
43-4 and secured by the pledge of, a specific part of the revenues
43-5 derived from the operation of the improvements and facilities of
43-6 the authority, all as may be provided in the proceedings
43-7 authorizing the issuance of such obligations.
43-8 (b) If more than one series of obligations is issued under
43-9 the provisions of this chapter payable from and secured by
43-10 identical revenues, priority of lien against the revenues shall
43-11 depend on the time of delivery of the obligations, each series
43-12 enjoying a lien against the revenues prior and superior to that
43-13 enjoyed by any other series of obligations subsequently delivered;
43-14 provided, however, that as to any issue or series of obligations
43-15 that may be authorized as a unit but delivered from time to time in
43-16 blocks, the board may, in proceedings authorizing the issuance of
43-17 the obligations, provide that all the obligations of the series or
43-18 issue shall be coequal as to lien, regardless of the time of
43-19 delivery.
43-20 Sec. 251.027. SINKING FUND. (a) A resolution or order
43-21 authorizing the issuance of obligations under this chapter shall
43-22 provide for the creation of a sinking fund. Revenues pledged to
43-23 the payment of obligations shall be paid into the sinking fund from
43-24 month to month as the revenues are collected in amounts fully
43-25 sufficient to pay principal of and interest on the obligations.
43-26 The money in the sinking fund shall be applied solely to the
44-1 payment of interest on the obligations for whose payment the fund
44-2 is created, and for the retirement of the obligations, at or prior
44-3 to maturity, in the manner provided by this section.
44-4 (b) The board may at the time obligations are authorized
44-5 provide that all money in the sinking fund in excess of the amount
44-6 required for the payment of the interest on and principal of the
44-7 outstanding obligations, for the period the board may determine,
44-8 shall be expended once each year pursuant to board order in the
44-9 purchase of obligations for whose account the sinking fund has been
44-10 accumulated, if any obligations can be purchased at a price that
44-11 seems reasonable to the board, and may provide that if the
44-12 obligations contain an option permitting retirement before
44-13 maturity, such excess amounts shall be paid out as provided for the
44-14 purchase of the obligations. If the board is unable to purchase
44-15 sufficient obligations of the issue to absorb all the surplus, the
44-16 board shall call for redemption of a sufficient amount of the
44-17 obligations to absorb, so far as practicable, the entire surplus
44-18 remaining in the sinking fund.
44-19 (c) The resolution or order may provide that any excess in
44-20 the sinking fund that cannot be applied to the purchase or
44-21 redemption of obligations shall remain in the sinking fund to be
44-22 used for payment of principal or interest when due or for the
44-23 subsequent call of obligations for purchase or redemption in the
44-24 manner provided by this section.
44-25 Sec. 251.028. COVENANTS WITH HOLDERS. A resolution or order
44-26 authorizing the issuance of obligations under this chapter may
45-1 contain covenants with the holders of the obligations as to the
45-2 management and operation of the improvements and facilities,
45-3 collection of fees and charges for the use of the improvements and
45-4 facilities, disposition of the fees and charges, issuance of future
45-5 obligations and creation of future liens, mortgages and
45-6 encumbrances against the improvements and facilities, and the
45-7 revenues of the improvements and facilities, and other pertinent
45-8 matters, that are considered necessary to insure the marketability
45-9 of the obligations, provided that the covenants are not
45-10 inconsistent with the provisions of this chapter.
45-11 Sec. 251.029. DEDICATION OF REVENUES. (a) A resolution or
45-12 order authorizing the issuance of obligations under this chapter
45-13 shall provide that the revenues from which the obligations are to
45-14 be paid and that are pledged to the payment of the obligations
45-15 shall from month to month, as the obligations accrue and are
45-16 received, be set apart and placed in the sinking fund and disbursed
45-17 in the manner provided by this chapter.
45-18 (b) The board, in setting and determining the amount of
45-19 revenues to be set aside as provided in Subsection (a), shall
45-20 provide that the amount to be set aside and paid into the sinking
45-21 fund in any year or years shall be not less than a set amount that
45-22 is at least sufficient to provide for the payment of the interest
45-23 on and principal of all obligations maturing and becoming payable
45-24 in each such year, together with a surplus or margin of 10 percent
45-25 in excess of such amount.
45-26 Sec. 251.030. ACTIONS BY HOLDERS; ADMINISTRATOR OR RECEIVER.
46-1 (a) A holder of obligations issued under this chapter, or of
46-2 coupons originally attached to the obligations, may either at law
46-3 or in equity, by suit, action, mandamus, or other proceeding,
46-4 enforce and compel performance of all duties required by this
46-5 chapter to be performed by the board, including the making and
46-6 collecting of reasonable and sufficient fees or charges for the use
46-7 of the improvements and facilities of the authority, the
46-8 segregation of the income and revenues of the improvements and
46-9 facilities, and the application of the income and revenues under
46-10 the provisions of this chapter.
46-11 (b) In the event of a default in the payment of the
46-12 principal of or interest on any of the obligations of the
46-13 authority, a holder of the obligation shall be entitled to have an
46-14 administrator or a receiver appointed by a court having
46-15 jurisdiction to administer and operate the improvements and
46-16 facilities whose revenues are pledged to the payment of the
46-17 obligations on behalf of the authority and the holders of the
46-18 obligations. The administrator or receiver may be authorized to
46-19 fix and collect fees and charges sufficient to provide for the
46-20 payment of operation and maintenance expenses as defined by this
46-21 chapter, to pay any outstanding obligations or interest coupons
46-22 payable from the revenues of the improvements and facilities, and
46-23 to apply the income and revenues of the improvements and facilities
46-24 in conformity with the provisions of this chapter and the
46-25 proceedings authorizing the issuance of the obligations.
46-26 Sec. 251.031. TRUST INDENTURE. (a) As additional security
47-1 for the payment of obligations issued under this chapter, the board
47-2 may, at its discretion, have executed in favor of the holders of
47-3 the obligations an indenture mortgaging and encumbering the
47-4 improvements, facilities, and properties acquired with the proceeds
47-5 of the sale of the obligations, or all the improvements,
47-6 facilities, and properties of the authority, and may provide in the
47-7 encumbrance for a grant to a purchaser at foreclosure sale under
47-8 the encumbrance of a franchise to operate the improvements,
47-9 facilities, and properties, for a term of not over 50 years from
47-10 the date of the purchase, subject to all applicable laws.
47-11 (b) An indenture under this section may contain terms and
47-12 provisions the board deems proper and shall be enforceable in the
47-13 manner provided by the laws of Texas for the enforcement of other
47-14 mortgages and encumbrances.
47-15 (c) Under a sale ordered under the provisions of the
47-16 mortgage or encumbrance, the purchaser at the sale, and the
47-17 purchaser's successors or assigns, shall be vested with a permit
47-18 and franchise to maintain and operate the improvements, facilities,
47-19 and properties purchased at the sale, with the powers and
47-20 privileges used by the authority in the operation of the
47-21 improvements, facilities, and properties.
47-22 (d) The purchaser of the improvements, facilities, and
47-23 properties at a sale, and the purchaser's successors and assigns,
47-24 may operate the improvements, facilities, and properties as
47-25 provided in Subsection (c) or may at their option remove all or
47-26 part of the improvements, facilities, and properties for diversion
48-1 to other purposes.
48-2 (e) Any statutory provisions pertaining to the granting of
48-3 franchises do not apply to the authorization or execution of any
48-4 mortgage or encumbrance entered into under the provisions of this
48-5 chapter or to the granting of any franchise under this chapter.
48-6 Sec. 251.032. SALE PROCEEDS. (a) The proceeds of the sale
48-7 of any obligations issued under this chapter may be deposited in
48-8 the bank or banks agreed on by the purchaser and the board. The
48-9 proceeds may be deposited and paid out pursuant to the terms and
48-10 conditions agreed on, provided that the general law pertaining to
48-11 the deposit of the authority funds in the depository of the
48-12 authority is not applicable to the deposit of the proceeds of the
48-13 sale.
48-14 (b) Any part of the proceeds of the sale of obligations
48-15 issued under this chapter that remains unexpended after the project
48-16 for which the obligations were authorized has been completed may be
48-17 paid into the sinking fund for the payment of the obligations and
48-18 may be used only for the payment of principal of the obligations or
48-19 for the purposes of acquiring such outstanding obligations by
48-20 purchase in the manner provided by this chapter.
48-21 Sec. 251.033. INSURANCE FOR IMPROVEMENTS AND FACILITIES.
48-22 The board may enter into an agreement with a purchaser of
48-23 obligations issued by the authority to keep all the improvements
48-24 and facilities whose revenues are pledged to the payment of the
48-25 obligations insured with insurers of good standing against loss or
48-26 damage by fire, water, or flood and from any other hazards
49-1 customarily insured against by private companies operating similar
49-2 properties. The authority may also agree to carry with insurers of
49-3 good standing insurance covering the use and occupancy of such
49-4 property that is customarily carried by private companies. The
49-5 cost of insurance shall be budgeted as maintenance and operation
49-6 expense, and the insurance shall be carried for the benefit of the
49-7 holders of the obligations.
49-8 Sec. 251.034. EXEMPTION FROM TAXATION. Obligations issued
49-9 under the provisions of this chapter are exempt from taxation by
49-10 the state or by any municipal corporation, county, or other
49-11 political subdivision or taxing district of the state.
49-12 Sec. 251.035. REFUNDING OBLIGATIONS. After issuing
49-13 obligations under this chapter, the authority may authorize and
49-14 issue its refunding obligations on terms the board deems advisable
49-15 for the purpose of providing for the retirement of any outstanding
49-16 obligations, either due or to become due. The refunding
49-17 obligations may be either exchanged for like par amounts of the
49-18 outstanding obligations or may be sold and the proceeds of the sale
49-19 so applied. Refunding obligations authorized and issued under this
49-20 section are subject to the provisions of this chapter pertaining to
49-21 the issuance of other obligations and shall be secured in all
49-22 respects to the same extent and be payable from the same revenues
49-23 as the obligations being refunded.
49-24 Sec. 251.036. APPROVAL AND REGISTRATION OF OBLIGATIONS.
49-25 Before any obligations are issued, the authority shall submit a
49-26 certified copy of the obligations and of the proceedings for their
50-1 issuance, together with any additional information that may be
50-2 required, to the attorney general for approval. When approved the
50-3 obligations shall be issued after registration with the comptroller
50-4 of public accounts.
50-5 Sec. 251.037. CHAPTER AS FULL AUTHORITY. This chapter,
50-6 without reference to other statutory provisions, constitutes full
50-7 authority for the authorization and issuance of obligations under
50-8 this chapter and for the accomplishment of all purposes authorized
50-9 under this chapter. No proceedings relating to the authorization
50-10 or issuance of obligations shall be necessary except as required by
50-11 this chapter, and no other provisions of the laws of the state
50-12 pertaining to the authorization or issuance of obligations, the
50-13 operation and maintenance of improvements and facilities, the
50-14 granting of franchises or permits, or the right to elections or
50-15 referendum petitions, or in any way impeding or restricting the
50-16 carrying out of the acts authorized by this chapter, shall be
50-17 construed as applying to any proceedings or acts under this
50-18 chapter.
50-19 Sec. 251.038. EXISTING WATER RIGHTS. Nothing in this
50-20 chapter shall be construed as affecting any rights existing at the
50-21 time of the formation of the authority, or priorities in the
50-22 rights, to water from the source of supply, and neither the
50-23 formation of the authority or a contract for the purchase of water
50-24 with the authority shall ever be held to be an abandonment or
50-25 waiver of those rights or priorities, or an abandonment of the
50-26 original point of diversion from the source of supply, but all such
51-1 rights existing at the time of the formation of the authority shall
51-2 be preserved.
51-3 Sec. 251.039. USE OF WORKERS ON RELIEF ROLLS. (a) The
51-4 authority, or the contractor who employs the labor for the
51-5 construction of any improvements for the authority, shall be
51-6 required to give preference to persons who are on relief rolls, or
51-7 otherwise unemployed, including those required for office or
51-8 clerical work, but excepting the key workers of the authority or
51-9 the contractor, provided that the persons on relief or unemployed
51-10 are capable of efficiently rendering the proper service in the
51-11 various classifications of labor under which they are employed.
51-12 (b) If a sufficient number of persons with the proper
51-13 qualifications required by Subsection (a) are not available for
51-14 employment, the authority or the contractor shall give preference
51-15 to employment of qualified workers who reside in the locality where
51-16 the improvements are to be constructed.
51-17 (c) Every contract entered into by the authority under this
51-18 chapter shall require the contractor to give preference in
51-19 employment to needy persons on relief rolls or otherwise as
51-20 provided in this section and shall require the contractor to comply
51-21 with this section.
51-22 (d) Nothing in this section shall be construed to conflict
51-23 with the requirements of a federal agency providing funds for the
51-24 authority.
51-25 CHAPTER 252. BRAZOS RIVER AUTHORITY
51-26 Sec. 252.001. CREATION. (a) A conservation and reclamation
52-1 district to be known as the "Brazos River Authority" is created.
52-2 The authority is a river authority, a governmental agency, a
52-3 municipality, and a body politic and corporate.
52-4 (b) The authority is created under and is essential to
52-5 accomplish the purposes of Section 59, Article XVI, Texas
52-6 Constitution.
52-7 (c) The authority may exercise the powers expressly granted
52-8 by Section 59, Article XVI, Texas Constitution, to districts
52-9 created to conserve, control, and utilize to beneficial service the
52-10 storm waters and floodwaters of the rivers and streams of the
52-11 state, as well as such powers as may be contemplated and implied by
52-12 the purposes of that provision of the constitution and as may be
52-13 conferred by general law and the provisions of this chapter.
52-14 (d) The authority may exercise all the rights and powers of
52-15 an independent governmental agency, a municipality, and a body
52-16 politic and corporate to formulate plans deemed essential to its
52-17 operation and for its administration in the control, storing,
52-18 preservation, and distribution to all useful purposes of the storm
52-19 waters and floodwaters of the Brazos River and its tributary
52-20 streams.
52-21 (e) The authority may exercise such authority and power of
52-22 control and regulation over the storm waters and floodwaters of the
52-23 Brazos River and its tributaries as may be exercised by the state,
52-24 subject to the provisions of the constitution and the acts of the
52-25 legislature.
52-26 Sec. 252.002. DEFINITIONS. In this chapter:
53-1 (1) "Authority" means the Brazos River Authority.
53-2 (2) "Board" means the board of directors of the
53-3 authority.
53-4 (3) "Director" means a member of the board.
53-5 Sec. 252.003. TERRITORY. The territory of the authority
53-6 comprises the watershed of the Brazos River, as determined by rule
53-7 of the Texas Water Development Board, except the portions lying
53-8 within Freestone, Leon, and Madison counties.
53-9 Sec. 252.004. POWERS. (a) The authority may exercise, in
53-10 addition to all the general powers vested by the constitution and
53-11 statutes in a governmental agency and body politic and corporate
53-12 for the greatest practicable measure of conservation and beneficial
53-13 utilization of storm waters, floodwaters, and unappropriated flow
53-14 waters, the powers of control and employment of the floodwaters,
53-15 storm waters, and unappropriated flow waters of the authority in
53-16 the manner and for the purposes provided by this section.
53-17 (b) The authority may provide, through all practical and
53-18 legal means, for the control and the coordination of the regulation
53-19 of the waters of the watershed of the Brazos River and its
53-20 tributary streams as a unit.
53-21 (c) The authority may provide, by adequate organization and
53-22 administration, for the preservation of the equitable rights of the
53-23 people of the different sections of the watershed area in the
53-24 beneficial use of storm waters, floodwaters, and unappropriated
53-25 flow waters of the Brazos River and its tributary streams.
53-26 (d) The authority may provide for storing, controlling, and
54-1 conserving storm waters, floodwaters, and unappropriated flow
54-2 waters of the Brazos River and its tributaries, preventing the
54-3 escape of any of such waters without the maximum of public service,
54-4 preventing the devastation of lands by recurrent overflows, and
54-5 protecting life and property in the watershed area from
54-6 uncontrolled floodwaters.
54-7 (e) The authority may provide for the conservation of waters
54-8 essential for the domestic uses of the people of the watershed of
54-9 the Brazos River and its tributaries, including all necessary water
54-10 supplies for cities and towns.
54-11 (f) The authority may provide for the irrigation of lands in
54-12 the watershed of the Brazos River and its tributary streams where
54-13 irrigation is required for agricultural purposes, or may be
54-14 considered helpful to more profitable agricultural production, and
54-15 provide for the equitable distribution of storm waters,
54-16 floodwaters, and unappropriated flow waters to the regional
54-17 potential requirements for all uses. Plans and works provided by
54-18 the authority, and works provided under the authorization of the
54-19 authority, should give primary consideration to the necessary and
54-20 potential needs for water by or within the areas constituting the
54-21 watershed of the Brazos River and its tributary streams.
54-22 (g) The authority may provide for the better encouragement
54-23 and development of drainage systems and provisions for drainage of
54-24 lands in the valleys of the Brazos River and its tributary streams
54-25 needing drainage for profitable agricultural production and
54-26 drainage for other lands in the watershed area of the authority
55-1 requiring drainage for the most advantageous use.
55-2 (h) The authority may provide for the conservation of all
55-3 soils against destructive erosion and to prevent an increased flood
55-4 danger caused by destructive soil erosion.
55-5 (i) The authority may provide for controlling and making
55-6 available for employment floodwaters, storm waters, and
55-7 unappropriated flow waters in the development of commercial and
55-8 industrial enterprises in all sections of the watershed area of the
55-9 authority.
55-10 (j) The authority may provide for the control, storage, and
55-11 employment of floodwaters, storm waters, and unappropriated flow
55-12 waters in the development and distribution of hydroelectric power,
55-13 where this use may be economically coordinated with other and
55-14 superior uses and subordinated to the uses declared by law to be
55-15 superior.
55-16 (k) The authority may provide for each purpose for which
55-17 floodwaters, storm waters, and unappropriated flow waters, when
55-18 controlled and conserved, may be used in the performance of a
55-19 useful service as contemplated and authorized by the provisions of
55-20 the constitution and the public policy it declares.
55-21 (l) The authority may provide for discovery, development,
55-22 production, use, and distribution of groundwater in the Brazos
55-23 River Basin and environs.
55-24 Sec. 252.005. LIMITATION OF AUTHORITY; STATE SUPERVISION.
55-25 The powers and duties granted to the authority by this chapter are
55-26 subject to all legislative declarations of public policy in the
56-1 maximum utilization of the storm waters, floodwaters, and
56-2 unappropriated flow waters of the Brazos River watershed for the
56-3 purposes for which the authority is created, as expressed and
56-4 indicated in this chapter, and subject to the continuing rights of
56-5 supervision by the state.
56-6 Sec. 252.006. DAMS AND RESERVOIRS; WATER SUPPLY CONTRACTS.
56-7 (a) The authority may construct, acquire, equip, acquire storage
56-8 rights at, and operate dams and reservoirs that in the opinion of
56-9 the board are useful in carrying out the powers conferred on the
56-10 authority by this chapter, whether any such dam is designed to
56-11 serve a single purpose or multiple purposes.
56-12 (b) The authority may provide water supply lines and water
56-13 purification and pumping facilities.
56-14 (c) The authority may execute contracts with municipalities
56-15 in the state substantially in the manner prescribed by Section
56-16 402.020, Local Government Code, for districts organized or created
56-17 pursuant to Section 59, Article XVI, Texas Constitution, and may
56-18 execute water supply contracts with other users of water.
56-19 Sec. 252.007. PRIORITY OF RIGHTS. Nothing in this chapter
56-20 changes any existing priority of right under the laws of the state
56-21 to the use of waters, including any rights of municipalities that
56-22 maintain and use storage structures in the bed of the Brazos River
56-23 or its tributaries.
56-24 Sec. 252.008. BOND PROVISIONS. (a) Bonds may be:
56-25 (1) sold for cash, at public or private sale, at such
56-26 price or prices as the board determines;
57-1 (2) issued on such terms as the board determines in
57-2 exchange for property of any kind, real, personal, or mixed, or any
57-3 interest in property, that the board determines necessary or
57-4 convenient for any corporate purpose; or
57-5 (3) issued to refund bonds issued at any time under
57-6 authority of this chapter.
57-7 (b) Bonds must be authorized by resolution of the board.
57-8 (c) A resolution authorizing bonds may contain provisions,
57-9 which shall be part of the contract between the authority and the
57-10 purchasers and subsequent holders of the bonds:
57-11 (1) reserving the right to redeem the bonds at the
57-12 time or times, in the amounts, and at the prices as may be
57-13 provided;
57-14 (2) providing for the setting aside of sinking funds
57-15 or reserve funds and the regulation and disposition of those funds;
57-16 (3) pledging, to secure the payment of the principal
57-17 of and interest on the bonds and the sinking fund or reserve fund
57-18 payments agreed to be made with respect to the bonds, all or any
57-19 part of the gross or net revenues subsequently received by the
57-20 authority with respect to the property, real, personal, or mixed,
57-21 to be acquired or constructed with the bonds or with proceeds of
57-22 the bonds, or all or any part of the gross or net revenues
57-23 subsequently received by the authority from any source;
57-24 (4) prescribing the purposes to which the bonds or any
57-25 bonds later issued, or the proceeds of the bonds, may be applied;
57-26 (5) agreeing to set and collect rates and charges
58-1 sufficient to produce revenues that are adequate to pay the items
58-2 specified in any resolution or resolutions authorizing any bonds,
58-3 and prescribing the use and disposition of all revenues;
58-4 (6) prescribing limitations on the issuance of
58-5 additional bonds and on all agreements that may be made with the
58-6 purchasers and successive holders of the bonds;
58-7 (7) relating to the construction, extension,
58-8 improvement, operation, maintenance, depreciation, replacement, and
58-9 repair of the properties of the authority and the carrying of
58-10 insurance on all or any part of the property covering loss or
58-11 damage or loss of use and occupancy resulting from specified risks;
58-12 (8) fixing the procedure, if any, by which, if the
58-13 authority so desires, the terms of any contract with the holders of
58-14 bonds may be amended or abrogated, the amount of bonds the holders
58-15 of which must consent to such amendment or abrogation, and the
58-16 manner in which the consent shall be evidenced;
58-17 (9) providing for the execution and delivery by the
58-18 authority to a bank or trust company authorized by law to accept
58-19 trusts, or to the United States or any office or agency of the
58-20 United States, of indentures or agreements authorized to be made
58-21 with or for the benefit of the holders of the bonds and such other
58-22 provisions as may be contained in the indentures or agreements; and
58-23 (10) making such other provisions, not inconsistent
58-24 with provisions of this chapter, as the board may approve.
58-25 (d) Before any bonds may be sold by the authority, a
58-26 certified copy of the proceedings for the issuance of the bonds,
59-1 including the term of the bonds, together with any other
59-2 information that the attorney general may require, shall be
59-3 submitted to the attorney general, and if the attorney general
59-4 finds that the bonds have been issued in accordance with law, the
59-5 attorney general shall approve the bonds and shall execute a
59-6 certificate to that effect which shall be filed in the office of
59-7 the comptroller and be recorded in a record kept for that purpose.
59-8 The comptroller shall register the bonds if the attorney general
59-9 has filed with the comptroller the certificate approving the bonds
59-10 and the proceedings for the issuance of the bonds as provided in
59-11 this section. Bonds may not be issued until the bonds have been
59-12 registered by the comptroller.
59-13 (e) Bonds approved by the attorney general, registered by
59-14 the comptroller, and issued in accordance with proceedings so
59-15 approved are valid and binding obligations of the authority and are
59-16 incontestable for any cause from and after the time of their
59-17 registration.
59-18 Sec. 252.009. BOARD OF DIRECTORS; BONDS; QUORUM; OFFICERS.
59-19 (a) The board consists of 21 members. Members of the board and
59-20 their successors serve for terms of six years and until their
59-21 successors are designated and have qualified. The terms of seven
59-22 members of the board expire on February 1 of each odd-numbered
59-23 year.
59-24 (b) The governor shall appoint seven persons each biennium
59-25 with the advice and consent of the senate to serve on the board.
59-26 Within 60 days after appointment, each director shall take and
60-1 subscribe an oath of office similar to the oaths administered to
60-2 county commissioners and shall execute bond in the amount of
60-3 $5,000, payable to the authority. The premium on the bond shall be
60-4 paid by the authority. The bond, after being recorded in the
60-5 official bond records of the county in which the authority
60-6 maintains its office, shall be deposited with a depository selected
60-7 and approved for the deposit of the funds of the authority.
60-8 (c) All vacancies occurring on the board shall be filled by
60-9 appointment of the governor with the advice and consent of the
60-10 senate.
60-11 (d) Seven members of the board constitute a quorum to
60-12 transact business.
60-13 (e) The governor may not appoint more than two directors who
60-14 reside in the same county at the time of their appointment.
60-15 (f) The board shall elect from among its members a chairman,
60-16 a vice chairman, and a secretary and shall appoint a treasurer.
60-17 The treasurer shall furnish a bond in an amount equal to 75 percent
60-18 of the amount of money estimated to be on hand during the year, in
60-19 no event to be more than $100,000.
60-20 Sec. 252.010. CREATION OF MASTER DISTRICT; WATER CONTROL AND
60-21 IMPROVEMENT DISTRICT. A master district is created having all the
60-22 powers, duties, and functions, and subject to applicable and
60-23 practicable procedures for such districts, to accomplish the
60-24 purposes of this chapter, as provided by Chapter 49 and the
60-25 provisions of this code applicable to water control and improvement
60-26 districts.
61-1 Sec. 252.011. BOND ELECTION REQUIRED. The authority may not
61-2 issue bonds or incur any form of continuing obligation or
61-3 indebtedness, except indebtedness payable solely from revenues, for
61-4 purposes of effecting improvements comprehended in the plan of
61-5 organization and administration of the authority, or incur any
61-6 indebtedness in the form of a continuing charge on lands or
61-7 properties within the authority, unless such proposition has been
61-8 submitted to the qualified voters of the authority, or in
61-9 appropriate cases the qualified voters of a defined area within the
61-10 authority, and is approved by a majority of the electors voting on
61-11 the proposition.
61-12 Sec. 252.012. ADDITIONAL POWERS AND DUTIES. (a) The
61-13 authority is a district and a river authority as defined in Chapter
61-14 30. All the provisions of Chapter 30 are applicable to the
61-15 authority.
61-16 (b) As used in this section:
61-17 (1) "Person" means any individual, partnership,
61-18 corporation, public utility, or other private entity or any public
61-19 agency.
61-20 (2) "Public agency" means an authority, district,
61-21 city, town, or other political subdivision, joint board, or other
61-22 public agency created pursuant to and operating under the laws of
61-23 the state and any entity created to operate on behalf of a public
61-24 agency.
61-25 (c) The authority and all persons may enter into contracts
61-26 with each other, in any manner and on terms that the parties may
62-1 agree, with respect to any power, function, facility, or service
62-2 that the authority is authorized by law to provide or finance.
62-3 Public agencies may use and pledge any available revenues for and
62-4 in the payment of amounts due under a contract as an additional
62-5 source of payment of the contract and may covenant with respect to
62-6 available revenues to assure the availability of the revenues when
62-7 required. In this subsection, "revenues" does not mean or include
62-8 revenues from ad valorem taxes levied and collected by a public
62-9 agency or the proceeds from the sale or refunding of bonds of a
62-10 public agency that are to be wholly or partially paid from ad
62-11 valorem taxes levied and collected by the public agency unless the
62-12 use or pledge of the tax revenues or bond proceeds is approved by
62-13 the qualified voters of the public agency at an election called for
62-14 the purpose of levying taxes or issuing or refunding bonds, or
62-15 both, for the purpose of using or pledging their revenues or
62-16 proceeds under contracts entered into under this subsection.
62-17 (d) A public agency may set, charge, and collect fees,
62-18 rates, charges, rentals, and other amounts for a service or
62-19 facility provided by a utility operated by the public agency, or
62-20 provided pursuant to or in connection with a contract with the
62-21 authority, from the inhabitants of the authority or from any users
62-22 or beneficiaries of the utility, service, or facility, including:
62-23 (1) water charges;
62-24 (2) sewage charges;
62-25 (3) solid waste disposal system fees and charges,
62-26 including garbage collection or handling fees; and
63-1 (4) other fees or charges.
63-2 (e) A public agency may use and pledge the fees, rates,
63-3 charges, rentals, and other amounts authorized by Subsection (c) to
63-4 make payments to the authority required under a contract with the
63-5 authority and may covenant to do so in amounts sufficient to make
63-6 all or any part of the payments to the authority when due. If the
63-7 parties agree in the contract, the payments shall constitute an
63-8 expense of operation of any facility or utility operated by the
63-9 public agency.
63-10 (f) The authority, acting through the board, may carry out
63-11 any activities and acquire, purchase, construct, own, operate,
63-12 maintain, repair, improve, or extend and may lease or sell, on
63-13 terms and conditions, including rentals or sale prices, on which
63-14 the parties may agree, all works, improvements, facilities, plants,
63-15 buildings, structures, equipment, and appliances, and all real and
63-16 personal property, or any interest in real or personal property,
63-17 related to the works, improvements, facilities, plants, buildings,
63-18 structures, equipment, and appliances, that are incident to or
63-19 necessary in carrying out or performing any power or function of
63-20 the authority under this section.
63-21 (g) The authority may issue bonds with respect to the
63-22 acquisition, purchase, construction, maintenance, repair,
63-23 improvement, and extension of works, improvements, facilities,
63-24 plants, buildings, structures, appliances, and property for the
63-25 purpose of exercising any of its powers and functions under this
63-26 section in the manner provided by this chapter or any other
64-1 applicable law.
64-2 (h) The authority may issue revenue bonds to pay for the
64-3 costs of feasibility studies for proposed projects of the
64-4 authority, including engineering, planning and design, and
64-5 environmental studies. The authority may include in any revenue
64-6 bond issue the funds to operate and maintain, for a period not to
64-7 exceed two years after completion, the facilities acquired or
64-8 constructed through the revenue bond issue.
64-9 (i) If bonds issued by the authority recite that they are
64-10 secured by a pledge of payments under a contract, a copy of the
64-11 contract and the proceedings relating to the contract may be
64-12 submitted to the attorney general along with the bonds. If the
64-13 attorney general finds that the bonds have been authorized and the
64-14 contract has been made and entered into in accordance with law, the
64-15 attorney general shall approve the bonds and the contract, and
64-16 after the approval, the bonds and the contract are incontestable in
64-17 any court or other forum for any reason and are valid and binding
64-18 in accordance with their terms and provisions for all purposes.
64-19 (j) The provisions of Chapters 618, 1201, 1204, 1207, and
64-20 1371, Government Code, are applicable to bonds issued by the
64-21 authority.
64-22 (k) This section is wholly sufficient authority for the
64-23 issuance of bonds, the execution of contracts, and the performance
64-24 of other acts and procedures authorized by this section by the
64-25 authority and all persons, including public agencies, without
64-26 reference to any other provision of law or any restriction or
65-1 limitation contained in those provisions, except as specifically
65-2 provided in this section. To the extent of any conflict or
65-3 inconsistency between any provision of this section and any other
65-4 provision of law, including any home-rule city charter, this
65-5 section shall prevail and control. The authority and all persons,
65-6 including public agencies, may use any provision of law not in
65-7 conflict with the provisions of this section to the extent
65-8 convenient or necessary to carry out any power or authority,
65-9 expressed or implied, granted by this section.
65-10 Sec. 252.013. DISPOSITION OF PROPERTY. (a) Nothing in this
65-11 chapter shall be construed as authorizing the authority, and it
65-12 shall not be authorized, to mortgage or otherwise encumber any of
65-13 its property of any kind, real, personal, or mixed, or any interest
65-14 in property, or to acquire any property or interest subject to a
65-15 mortgage or conditional sale; provided, however, that this section
65-16 shall not be construed as preventing the pledging of the revenues
65-17 of the authority as provided by this chapter.
65-18 (b) Nothing in this chapter shall be construed as
65-19 authorizing the sale, release, or other disposition of property of
65-20 any kind, real, personal, or mixed, or any interest in property, by
65-21 the authority or through any court proceedings or otherwise;
65-22 provided, however, that the authority may sell for cash any
65-23 property or interest if the board by affirmative vote of 11 of its
65-24 members determines that the property or interest is not necessary
65-25 to the business of the authority and approves the terms of the
65-26 sale. Except by sale as expressly authorized in this section, such
66-1 property or interest may not come into the ownership or control,
66-2 directly or indirectly, of any person, firm, or corporation other
66-3 than a public authority created under the laws of the state.
66-4 (c) All property of the authority shall be at all times
66-5 exempted from forced sale, and nothing provided in this chapter
66-6 shall authorize the sale of any of the property of the authority
66-7 under any judgment rendered in any suit, and such sales are
66-8 prohibited and forbidden.
66-9 (d) Notwithstanding any restrictions or provisions in this
66-10 section or in this chapter, the authority, acting by a majority
66-11 vote of the board, may construct or purchase, from any person,
66-12 firm, or corporation (referred to in this section as "customer")
66-13 with which the authority has contracted to sell hydroelectric
66-14 power, transmission lines and other property used or to be used by
66-15 the customer for the transmission of or in connection with power
66-16 purchased or to be purchased from the authority. The authority may
66-17 lease all or any portion of such property to the customer for all
66-18 or a portion of the time during the term of the hydroelectric power
66-19 purchase contract. The lease may contain provisions, which shall
66-20 be valid and enforceable, giving the lessee the right to purchase
66-21 from the authority all or any portion of the property at or within
66-22 the time specified in the lease and for a price and on terms and
66-23 conditions specified in the lease; provided, however, that the
66-24 price shall never be less than the depreciated value, determined in
66-25 the manner prescribed in the lease, plus one percent of the
66-26 original cost of the property.
67-1 Sec. 252.014. ACQUISITION OF PROPERTY; EMINENT DOMAIN.
67-2 (a) The authority may acquire by purchase, lease, or gift or in
67-3 any other manner and may maintain, use, and operate property of any
67-4 kind, real, personal, or mixed, or any interest in property, within
67-5 or outside the boundaries of the authority, necessary or convenient
67-6 to the exercise of the powers, rights, privileges, and functions
67-7 conferred on the authority by this chapter.
67-8 (b) The authority may acquire, by purchase, condemnation, or
67-9 otherwise, such property as the board determines necessary to make
67-10 effectual and practicable the construction and operation of all
67-11 works, improvements, and services which may be planned ultimately
67-12 to be provided by the authority to accomplish any of the purposes
67-13 for which the authority was created. Such acquisition or
67-14 condemnation may be either of the fee simple title or of a lesser
67-15 title or an easement only, within the discretion of the board;
67-16 provided, however, that no person shall be deprived of any defense
67-17 available under the general law of eminent domain; and provided,
67-18 further, that the authority may not acquire or operate a steam
67-19 generating plant for the production and sale of electric energy
67-20 and, except for the purpose of acquiring the necessary area below
67-21 or above the anticipated high-water line of a reservoir, may not
67-22 condemn any property of a rural electrification cooperative or
67-23 other corporations engaged in the generation or sale of electric
67-24 energy to the public.
67-25 (c) The authority shall have the power of eminent domain for
67-26 the purpose of acquiring by condemnation property of any kind,
68-1 real, personal, or mixed, or any interest in property, within or
68-2 outside the boundaries of the authority, other than property or an
68-3 interest in property outside the boundaries of the authority owned
68-4 by any body politic, that is necessary or convenient to the
68-5 exercise of the powers, rights, privileges, and functions conferred
68-6 on the authority by this chapter, in the manner provided by general
68-7 law with respect to condemnation or, at the option of the
68-8 authority, in the manner provided by statutes relative to
68-9 condemnation by districts organized under general law pursuant to
68-10 Section 59, Article XVI, Texas Constitution.
68-11 (d) In condemnation proceedings being prosecuted by the
68-12 authority, the authority shall not be required to give bond for
68-13 appeal or bond for cost.
68-14 (e) The authority may overflow and inundate any public lands
68-15 and public property and may require the relocation of roads and
68-16 highways in the manner and to the extent permitted to districts
68-17 organized under general law pursuant to Section 59, Article XVI,
68-18 Texas Constitution.
68-19 (f) If the authority, in the exercise of the power of
68-20 eminent domain or power of relocation or any other power granted
68-21 under this chapter, makes necessary the relocation, raising,
68-22 rerouting, changing the grade, or altering the construction of any
68-23 highway, railroad, electric transmission line, or pipeline, all
68-24 necessary relocation, raising, rerouting, changing of grade, or
68-25 alteration of construction shall be accomplished at the sole
68-26 expense of the authority.
69-1 Sec. 252.015. CONTRACTS, GRANTS, AND LOANS. (a) The board
69-2 may negotiate and contract with the federal government or with any
69-3 of its agencies for grants, loans, and advancements from the United
69-4 States for the furtherance of any purpose set forth in this
69-5 chapter.
69-6 (b) The authority may receive and accept grants, loans, or
69-7 allotments from the United States and others for furtherance of any
69-8 of the purposes set forth in this chapter.
69-9 (c) An opinion from the attorney general as to whether a
69-10 grant, loan, or allotment has been received by the authority from
69-11 the United States or others shall be authority for the action of
69-12 any person charged with any duty contingent on such grant, loan, or
69-13 allotment.
69-14 Sec. 252.016. RULES AND REGULATIONS. The board may make all
69-15 necessary rules and regulations for the government and control of
69-16 the authority not inconsistent with the constitution and laws of
69-17 the state.
69-18 Sec. 252.017. USE OF BRAZOS RIVER AND TRIBUTARIES. In the
69-19 prosecution of the plans for which the authority has been created
69-20 for the storing, controlling, conserving, and distributing to
69-21 useful purposes of the storm waters, floodwaters, and
69-22 unappropriated flow waters of the Brazos River watershed, the
69-23 authority may use the bed and banks of the Brazos River and its
69-24 tributary streams for any and all purposes necessary to the
69-25 accomplishment of the plans of the authority.
69-26 Sec. 252.018. DEFAULT PROCEDURES. (a) A resolution
70-1 authorizing the issuance of bonds and any indenture or agreement
70-2 entered into pursuant to the resolution may include provisions
70-3 regarding a default on the:
70-4 (1) payment of the interest on any bonds as the
70-5 interest becomes due and payable;
70-6 (2) payment of the principal of any bonds as they
70-7 become due and payable, whether at maturity, by call for
70-8 redemption, or otherwise; or
70-9 (3) performance of an agreement made with the
70-10 purchasers or successive holders of any bonds.
70-11 (b) If a default described by Subsection (a) has occurred
70-12 and has continued for a period, if any, prescribed by the
70-13 resolution authorizing the issuance of the bonds, the trustee under
70-14 the indenture or indentures entered into with respect to the bonds
70-15 authorized by the resolution, or, if there is no indenture, a
70-16 trustee appointed in the manner provided in the resolution by the
70-17 holders of 25 percent in aggregate principal amount of the bonds
70-18 authorized by the resolution and then outstanding may, and on the
70-19 written request of the holders of 25 percent in aggregate principal
70-20 amount of the bonds authorized by the resolution and then
70-21 outstanding shall, in the trustee's own name but for the equal and
70-22 proportionate benefit of the holders of all the bonds, and with or
70-23 without having possession of the bonds:
70-24 (1) by mandamus or other suit, action, or proceeding
70-25 at law or in equity, enforce all rights of the holders of the
70-26 bonds;
71-1 (2) bring suit on the bonds or the appurtenant
71-2 coupons;
71-3 (3) by action or suit in equity, require the board to
71-4 account as if it were the trustee of an express trust for the
71-5 bondholders;
71-6 (4) by action or suit in equity, enjoin any acts or
71-7 things which may be unlawful or in violation of the rights of the
71-8 holders of the bonds; or
71-9 (5) after such notice to the board as the resolution
71-10 may provide, declare the principal of all of the bonds due and
71-11 payable, and if all defaults have been made good, then with the
71-12 written consent of the holders of 25 percent in aggregate principal
71-13 amount of the bonds then outstanding, annul the declaration and its
71-14 consequences; provided, however, that the holders of more than a
71-15 majority in principal amount of the bonds authorized by the
71-16 resolution and then outstanding shall, by written instrument
71-17 delivered to the trustee, have the right to direct and control any
71-18 and all actions taken or to be taken by the trustee under this
71-19 section.
71-20 (c) A resolution, indenture, or agreement relating to bonds
71-21 may provide that in a suit, action, or proceeding under this
71-22 section, the trustee, whether or not all of the bonds have been
71-23 declared due and payable and with or without possession of any of
71-24 the bonds, shall be entitled as of right to the appointment of a
71-25 receiver who may enter and take possession of all or part of the
71-26 properties of the authority, operate and maintain the properties,
72-1 and set, collect, and receive rates and charges that will be
72-2 sufficient to provide revenues adequate to pay the items specified
72-3 in any resolution or resolutions authorizing any bonds and the
72-4 costs and disbursements of the suit, action, or proceeding and
72-5 apply such revenue in conformity with the provisions of this
72-6 chapter and the resolution authorizing the bonds.
72-7 (d) In a suit, action, or proceeding by a trustee or
72-8 receivers, if any, under this section, counsel fees and expenses of
72-9 the trustee and of the receiver or receivers, if any, shall
72-10 constitute taxable disbursements, and all costs and disbursements
72-11 allowed by the court shall be a first charge on any revenue pledged
72-12 to secure the payment of the bonds.
72-13 (e) Subject to the provisions of the constitution, the
72-14 courts of McLennan County shall have jurisdiction of any suit,
72-15 action, or proceeding under this section by any trustee on behalf
72-16 of the bondholders and of all proceedings involved in the suit,
72-17 action, or proceeding.
72-18 (f) In addition to the powers specifically provided by this
72-19 section, the trustee shall have and possess all powers necessary or
72-20 appropriate for the exercise of any of the powers specifically
72-21 provided or incident to the general representation of the
72-22 bondholders in the enforcement of their rights.
72-23 CHAPTER 253. CANADIAN RIVER MUNICIPAL WATER AUTHORITY
72-24 Sec. 253.001. CREATION. (a) A conservation and reclamation
72-25 district to be known as the "Canadian River Municipal Water
72-26 Authority" is created. The authority is a governmental agency and
73-1 body politic and corporate.
73-2 (b) The authority is created under and is essential to
73-3 accomplish the purposes of Section 59, Article XVI, Texas
73-4 Constitution.
73-5 (c) The authority may exercise all rights, powers,
73-6 privileges, and functions as provided in this chapter and as may be
73-7 contemplated and implied by Section 59, Article XVI, Texas
73-8 Constitution, as well as those conferred by the general laws of the
73-9 state relating to water control and improvement districts except
73-10 where such laws are in conflict with the provisions of this
73-11 chapter.
73-12 Sec. 253.002. DEFINITIONS. In this chapter:
73-13 (1) "Authority" means the Canadian River Municipal
73-14 Water Authority.
73-15 (2) "Board" means the board of directors of the
73-16 authority.
73-17 (3) "Director" means a member of the board.
73-18 Sec. 253.003. TERRITORY. (a) The area of the authority
73-19 comprises all territory contained, as of May 27, 1953, within the
73-20 limits of the following cities:
73-21 (1) Amarillo, Potter and Randall counties;
73-22 (2) Borger, Hutchinson County;
73-23 (3) Brownfield, Terry County;
73-24 (4) Lamesa, Dawson County;
73-25 (5) Levelland, Hockley County;
73-26 (6) Littlefield, Lamb County;
74-1 (7) Lubbock, Lubbock County;
74-2 (8) O'Donnell, Lynn and Dawson counties;
74-3 (9) Pampa, Gray County;
74-4 (10) Plainview, Hale County;
74-5 (11) Slaton, Lubbock County; and
74-6 (12) Tahoka, Lynn County.
74-7 (b) A defect or irregularity in the boundaries of any of the
74-8 cities listed in Subsection (a) or in any of the proceedings
74-9 relating to the annexation of territory to those cities does not
74-10 affect the validity of the authority or any of its rights, powers,
74-11 privileges, or functions.
74-12 (c) It is affirmatively found and determined that all of the
74-13 territory within the limits of cities listed in Subsection (a) as
74-14 of May 27, 1953, and all other territory subsequently annexed to
74-15 the authority under the provisions of this chapter relating to
74-16 annexation shall comprise the authority and that all of the
74-17 territory will benefit from the improvements and facilities to be
74-18 constructed, acquired, or otherwise furnished under this chapter.
74-19 (d) Any territory annexed to any city or town after it has
74-20 become part of the authority shall be automatically included within
74-21 the boundaries of the authority; provided, however, that if tax
74-22 obligations of any nature have previously been incurred by the
74-23 authority, the inclusion shall not become final until an election
74-24 has been held and a majority of the qualified voters residing in
74-25 the territory annexed has voted for inclusion under the provisions
74-26 for notice and election provided by Sections 253.007(g), (h), and
75-1 (i) pertaining to elections for the addition of territory and the
75-2 assumption of indebtedness and taxes.
75-3 Sec. 253.004. BOARD OF DIRECTORS. (a) The powers of the
75-4 authority shall be exercised by a board of directors. The
75-5 directors are elected by a majority vote of the governing body of
75-6 each city that constitutes a part of the authority.
75-7 (b) Constituent cities with a population of 10,000 or more
75-8 are entitled to two members on the board. Constituent cities with
75-9 a population of less than 10,000 are entitled to one member on the
75-10 board.
75-11 (c) In July of each year, the governing body of each
75-12 constituent city with a population of 10,000 or more shall elect
75-13 one director for a two-year term beginning August 1 of that year.
75-14 In July of each odd-numbered year, the governing body of each
75-15 constituent city with a population of less than 10,000 shall elect
75-16 one director for a two-year term beginning August 1 of that year.
75-17 (d) The governing body of each constituent city may fill,
75-18 for the balance of the unexpired term, any vacancy that occurs in
75-19 the office of any director elected by it.
75-20 (e) Directors elected as provided by this section shall be
75-21 certified to the board by the mayor of the city whose governing
75-22 body has made the election.
75-23 Sec. 253.005. QUALIFICATIONS OF BOARD MEMBERS. (a) To
75-24 qualify for election to the board, a person must be a qualified
75-25 voter and a property-owning taxpayer in the city from which the
75-26 person is elected and must not be a member of the governing body or
76-1 an employee of that city.
76-2 (b) Each director shall subscribe the constitutional oath of
76-3 office and shall hold office until a successor is elected and has
76-4 qualified.
76-5 (c) Each director who has been elected president, vice
76-6 president, or secretary shall give bond for the faithful
76-7 performance of the person's duties in the amount of $5,000.
76-8 Sec. 253.006. BOARD: ACTION; DUTIES; QUORUM; COMPENSATION
76-9 AND EXPENSES. (a) The board shall perform official actions by
76-10 resolution. A majority of the members of the board constitute a
76-11 quorum for the transaction of business of the authority. A
76-12 majority vote of the quorum present is sufficient in all official
76-13 actions including final passage and enactment of all resolutions,
76-14 except as otherwise specifically provided in this chapter.
76-15 (b) The board shall hold regular meetings. The dates of the
76-16 meetings are to be established in the authority's bylaws or by
76-17 resolution.
76-18 (c) The president or any three members of the board may call
76-19 special meetings as may be necessary in the administration of the
76-20 authority's business; provided, however, that at least five days
76-21 before the meeting date, the secretary shall mail notice of the
76-22 meeting to the address that each member has on file with the
76-23 secretary. Notice of special meetings may be waived in writing by
76-24 any director.
76-25 (d) Each director is entitled to receive a fee of not more
76-26 than $50 for each attendance at a board meeting and a fee of not
77-1 more than $50 for each day devoted to authority business other than
77-2 a board meeting. Each director is also entitled to reimbursement
77-3 for actual expenses incurred in carrying out authority business,
77-4 including attending a board meeting. Payment to a director for
77-5 services performed and expenses incurred is subject to the approval
77-6 of a majority of the board.
77-7 (e) The board shall elect a president of the authority. The
77-8 president is the chief executive officer of the authority. The
77-9 president presides at the meetings of the board and performs all
77-10 other functions incident to the office.
77-11 (f) The board shall elect from among its members a vice
77-12 president. The vice president acts as president in case of the
77-13 inability, absence, or failure of the president to act.
77-14 (g) The board shall elect a secretary, who may or may not be
77-15 chosen from among the members of the board. The secretary shall
77-16 ensure that all books and records of the authority are properly
77-17 kept.
77-18 Sec. 253.007. ADDITIONAL TERRITORY MAY BE ADDED. (a) Other
77-19 territory may be annexed to the authority as provided by this
77-20 section.
77-21 (b) A petition for annexation must:
77-22 (1) be signed by 50 or a majority of the qualified
77-23 voters of the territory to be annexed;
77-24 (2) be filed with the board; and
77-25 (3) describe the territory to be annexed by metes and
77-26 bounds or by other appropriate description, unless the territory is
78-1 the same as that of a city or town, in which event it shall be
78-2 sufficient to state that the territory to be annexed is the same as
78-3 that contained within the city or town.
78-4 (c) If the board finds that the petition is signed by the
78-5 required number of qualified persons and otherwise complies with
78-6 Subsection (b), that the annexation would be in the interest of the
78-7 territory to be annexed and the authority, and that the authority
78-8 will be able to render service to the territory, the board shall,
78-9 provided two-thirds of all the board members vote in favor, adopt a
78-10 resolution stating the conditions, if any, under which the
78-11 territory may be annexed to the authority and declaring the board's
78-12 intention to call an election in the territory for the purpose of
78-13 submitting the proposition of whether the territory shall be
78-14 annexed to the authority. The board shall set a time and place for
78-15 a hearing to be held on the question of whether the territory to be
78-16 annexed will benefit from the improvements, works, and facilities
78-17 then owned and operated by the authority.
78-18 (d) Railroad right-of-way, transmission lines, and other
78-19 property of telephone and telegraph and electric and gas utilities
78-20 that are not situated within the defined limits of an incorporated
78-21 city or town will not benefit from the improvements, works, and
78-22 facilities that the authority is authorized to construct. Railroad
78-23 right-of-way, transmission lines, or other property of electric and
78-24 gas utilities or right-of-way or other property and facilities of
78-25 telephone and telegraph utilities may not be annexed to the
78-26 authority unless the right-of-way, transmission lines, and other
79-1 property of electric and gas utilities are contained within the
79-2 limits of an incorporated city or town annexed to the authority.
79-3 (e) Notice of the adoption of a resolution as provided by
79-4 Subsection (c) stating the time and place of the hearing, addressed
79-5 to the citizens and owners of property in the territory to be
79-6 annexed, shall be published one time in a newspaper designated by
79-7 the board and having general circulation in the territory, at least
79-8 10 days before the date of the hearing. The notice must describe
79-9 the territory in the same manner as required or permitted for the
79-10 petition under Subsection (b). The secretary shall mail notice of
79-11 the hearing addressed to the mayor and governing body of each
79-12 constituent city at least 30 days before the date of the hearing.
79-13 (f) All interested persons who reside in the authority or in
79-14 the territory seeking annexation may appear at the hearing and
79-15 offer evidence for or against the intended annexation. The hearing
79-16 may proceed in the order and under the rules prescribed by the
79-17 board and may be recessed from time to time. If, at the conclusion
79-18 of the hearing, the board finds that all of the lands in the
79-19 territory to be annexed will benefit from the present or
79-20 contemplated improvements, works, or facilities of the authority,
79-21 the board shall adopt a resolution calling an election in the
79-22 territory to be annexed, stating the date and place or places for
79-23 holding the election and appointing a presiding judge for each
79-24 voting place. A presiding judge shall appoint the necessary
79-25 assistant judges and clerks to assist in holding the election.
79-26 (g) Notice of the election, stating the date and places for
80-1 holding the election, the proposition to be voted on, and the
80-2 conditions under which the territory may be annexed, or making
80-3 reference to the resolution of the board for that purpose, shall be
80-4 published one time in a newspaper published in the territory to be
80-5 annexed and designated by the board, at least 10 days before the
80-6 dates set for the election. If no newspaper is published in the
80-7 territory to be annexed, it is sufficient if notices are posted at
80-8 three public places in the territory and the notice is published
80-9 one time, at least 10 days before the date set for the election, in
80-10 a newspaper having general circulation in the territory.
80-11 (h) Only qualified electors who reside in the territory to
80-12 be annexed may vote in the election. Returns of the election shall
80-13 be made to the board.
80-14 (i) The board shall canvass the returns of the election and
80-15 adopt a resolution declaring the results. If the resolution shows
80-16 that a majority of the votes cast are in favor of annexation to the
80-17 authority, the annexation shall be incontestable except in the
80-18 manner and within the time for contesting elections under the
80-19 Election Code. A certified copy of the order shall be recorded in
80-20 the deed records of the county in which the territory is situated.
80-21 (j) In calling an election on the proposition for the
80-22 annexation of territory, the board may include as part of the same
80-23 proposition the assumption of the territory's part of any
80-24 tax-supported obligations of the authority then outstanding and in
80-25 force, and, in the case of bonds, those previously voted but not
80-26 yet sold, and the levy of ad valorem taxes on taxable property in
81-1 the territory on the same basis as taxes are levied in the
81-2 remainder of the authority for the payment of the tax obligations.
81-3 If the proposition carries by a majority vote, the effect shall be
81-4 the same as that resulting from the separate assumption election
81-5 provided for in Subsection (k).
81-6 (k) After territory is added to the authority, the board may
81-7 call an election over the entire authority for the purpose of
81-8 determining whether the entire authority as enlarged shall assume
81-9 the taxes and tax-supported obligations then outstanding and in
81-10 force, and, in the case of bonds, those previously voted but not
81-11 yet sold, and whether ad valorem taxes shall be levied on all
81-12 taxable property within the authority as enlarged for the payment
81-13 of the obligations, unless the proposition is favorably voted along
81-14 with the annexation election and becomes lawfully binding on the
81-15 territory annexed. Notice of the elections provided for in this
81-16 subsection and Subsection (j) shall be given and the election shall
81-17 be held in the same manner as elections for the issuance of bonds
81-18 as provided by this chapter.
81-19 Sec. 253.008. GENERAL MANAGER; EMPLOYEES. (a) The board
81-20 may employ and determine the compensation of a general manager for
81-21 the authority and may delegate to the general manager full power
81-22 and authority to manage and operate the affairs of the authority,
81-23 subject only to the orders of the board. The board may also employ
81-24 and determine the compensation of such other employees as it
81-25 considers appropriate to the proper conduct of the authority's
81-26 affairs, including engineers, technical experts, attorneys, and
82-1 assistants to the authority's officers, including the general
82-2 manager. The board may remove any employee.
82-3 (b) The general manager is the official treasurer of the
82-4 authority and has charge of its funds. The general manager shall
82-5 see that the funds are safely kept and shall account for the funds
82-6 to the board. The general manager shall give bond in an amount
82-7 required by the board, but in no event may the amount be less than
82-8 $50,000.
82-9 Sec. 253.009. DISBURSEMENT OF FUNDS. The funds of the
82-10 authority shall be disbursed only on checks, drafts, orders, or
82-11 other instruments signed by the persons authorized by the bylaws
82-12 and resolutions of the board.
82-13 Sec. 253.010. CITIES AND TOWNS MAY GIVE FINANCIAL AID TO
82-14 AUTHORITY. In consideration of the fact that the authority may be
82-15 incurring obligations and making expenditures, before funds are
82-16 available to pay the obligations and expenditures, for the purpose
82-17 of providing funds needed to procure necessary engineering surveys
82-18 and the collection and compilation of data relating to general
82-19 conditions influencing the determination of the character and
82-20 extent of the improvements, works, and facilities essential to the
82-21 accomplishment of any purpose of the authority, any city or town
82-22 within the authority may expend funds or use its services for such
82-23 engineering surveys and data. Any city or town within the
82-24 authority may appropriate money from its general funds or such
82-25 other funds as may be legally available for the purpose and may
82-26 donate and contribute the money to the authority, and the authority
83-1 may contract with any such city or town to repay any money advanced
83-2 as a loan to the authority.
83-3 Sec. 253.011. AUTHORITY OFFICE; RECORDS. An office shall be
83-4 established and maintained for the conduct of the authority's
83-5 business at a location determined by the board. The board shall
83-6 keep a true and full account of the proceedings of its meetings and
83-7 shall maintain its records in a secure manner.
83-8 Sec. 253.012. ACCOUNTS; AUDITS. (a) The board shall keep
83-9 complete and accurate accounts conforming to approved methods of
83-10 bookkeeping. The accounts and all contracts, documents, and
83-11 records of the authority shall be kept at the authority's principal
83-12 office and shall be open to public inspection at all reasonable
83-13 times.
83-14 (b) Once each year, the board shall have the books of
83-15 account and financial records of the authority for the preceding
83-16 year audited by an independent certified public accountant or firm
83-17 of certified public accountants. Copies of the written report of
83-18 the audit, certified to by the accountant or accountants, shall be
83-19 placed and kept on file at the office of the authority and shall be
83-20 open to public inspection at all reasonable times.
83-21 Sec. 253.013. AUTHORITY DEPOSITORY. (a) The board shall
83-22 designate one or more banks within the authority to serve as
83-23 depository for the funds of the authority. All funds of the
83-24 authority shall be deposited in the depository bank or banks except
83-25 funds pledged to pay bonds, which shall be deposited with the
83-26 trustee bank or paying agent named in the bond proceedings and to
84-1 the extent provided for in those proceedings. To the extent that
84-2 funds in the depository bank and the trustee bank are not insured
84-3 by the Federal Deposit Insurance Corporation, the funds shall be
84-4 secured in the manner provided by law for the security of county
84-5 funds.
84-6 (b) Before designating a depository bank or banks, the board
84-7 shall issue a notice stating the time and place at which the board
84-8 will meet to designate a depository bank or banks and inviting the
84-9 banks in the authority to submit applications to be designated
84-10 depositories. The notice must be published one time at least 10
84-11 days before the date of the board meeting in a newspaper or
84-12 newspapers published in the authority and specified by the board.
84-13 (c) At the time mentioned in the notice, the board shall
84-14 consider the applications and the management and condition of the
84-15 banks filing them and shall designate as depositories the bank or
84-16 banks that offer the most favorable terms and conditions for the
84-17 handling of the funds of the authority and that the board finds
84-18 have proper management and are in condition to warrant handling the
84-19 funds of the authority. The term of service for depositories shall
84-20 be prescribed by the board.
84-21 (d) If no acceptable applications are received by the time
84-22 stated in the notice, the board shall designate some bank or banks
84-23 within or outside the authority on terms and conditions it finds
84-24 advantageous to the authority.
84-25 Sec. 253.014. AUTHORITY POWERS. (a) In addition to those
84-26 otherwise provided by this chapter, the authority may exercise the
85-1 powers, rights, privileges, and functions provided by this section.
85-2 (b) The authority may store, control, conserve, protect,
85-3 distribute, and utilize, within or outside the authority or within
85-4 or outside the state, the storm waters and floodwaters and
85-5 unappropriated flow waters of the Canadian River and its
85-6 tributaries, and may prevent the escape of such waters without
85-7 first obtaining from them a maximum of public benefit, by the
85-8 construction of a dam or dams across that river and its tributaries
85-9 or otherwise, by complying with Chapter 11 and acting in such
85-10 manner as shall fully recognize and be in harmony with the
85-11 limitations of use of the waters of that river provided in the
85-12 Canadian River Compact in Chapter 43. The authority may also
85-13 provide, by purchase, contract, lease, or gift or in any other
85-14 lawful manner, and develop all facilities within or outside the
85-15 authority or within or outside the state considered necessary or
85-16 useful for the purpose of storing, controlling, conserving,
85-17 protecting, distributing, processing, and utilizing such surface
85-18 water and transporting it to the cities and areas comprising the
85-19 authority for municipal, domestic, industrial, and other useful
85-20 purposes permitted by law.
85-21 (c) The authority may acquire and develop within or outside
85-22 the authority or within or outside the state any other available
85-23 source of surface water, storm water, floodwater, groundwater, or
85-24 other water supply and may construct, acquire, and develop all
85-25 facilities deemed necessary or useful with respect to those
85-26 purposes.
86-1 (d) The authority may acquire, construct, develop, operate,
86-2 and maintain property of any kind, real, personal, or mixed, or any
86-3 interest in property, whether within or outside the authority or
86-4 within or outside the state, and may enter into contracts with any
86-5 person or legal entity and take actions necessary or convenient in
86-6 order to protect and preserve, and to prevent, eliminate, reduce,
86-7 or minimize the pollution, contamination, or deterioration of the
86-8 quality of, the water of the Canadian River or its tributaries or
86-9 the water of any other source of water supply to the authority and
86-10 in order to facilitate the use of the water for any lawful
86-11 purpose.
86-12 (e) The authority may acquire, construct, develop, operate,
86-13 and maintain any facilities or systems for drilling, pumping,
86-14 capturing, reducing, intercepting, eliminating, impounding,
86-15 controlling, using, injecting, or otherwise capturing and disposing
86-16 of brine, brackish water, saltwater, saline water, or other water
86-17 contaminated by any type of chlorine, sodium, sulfates, or other
86-18 chemical condition or characteristic detrimental to the quality of
86-19 the water, whether the source of contaminated water is groundwater
86-20 or surface water, within or outside the authority or within or
86-21 outside the state and whether the facilities or systems are located
86-22 within or outside the authority or within or outside the state.
86-23 (f) The authority may acquire or utilize surface water or
86-24 groundwater rights and develop surface water or groundwater
86-25 resources in any manner in furtherance of the purposes described in
86-26 Subsections (d) and (e).
87-1 (g) The authority may declare any facilities or system
87-2 acquired or constructed under Subsections (b)-(f) to be a part of
87-3 the authority's water supply system.
87-4 (h) The authority may acquire, by purchase, construction,
87-5 lease, or gift or in any other lawful manner, and maintain, use,
87-6 and operate property of any kind, real, personal, or mixed, or any
87-7 interest in property, within or outside the boundaries of the
87-8 authority or within or outside the state, necessary or convenient
87-9 to the exercise of the powers, rights, privileges, and functions
87-10 granted by the authority under this chapter.
87-11 (i) The authority may acquire by condemnation property of
87-12 any kind, real, personal, or mixed, or any interest in property,
87-13 within or outside the boundaries of the authority, necessary or
87-14 convenient to the exercise of the powers, rights, privileges, and
87-15 functions of the authority, in the manner provided by Chapter 21,
87-16 Property Code. The amount and character of the property to be
87-17 acquired shall be determined by the board; provided, however, that:
87-18 (1) the authority may not condemn property that may be
87-19 owned by any other political subdivision, city, or town;
87-20 (2) as against persons, firms, and corporations (or
87-21 their receivers or trustees) who have the power of eminent domain,
87-22 the fee title may not be condemned and the authority may condemn
87-23 only an easement; and
87-24 (3) the authority may not condemn groundwater rights.
87-25 (j) The authority may sell or otherwise dispose of any
87-26 surplus property of any kind, real, personal, or mixed, or any
88-1 interest in property not necessary to the operation of the
88-2 authority; provided, however, that in all cases in which the board
88-3 considers the value of the property to be in excess of $1,000, the
88-4 property shall be sold only on advertisement and competitive bids.
88-5 (k) The authority may require the relocation of roads and
88-6 highways in the manner and to the extent permitted to districts
88-7 organized under Section 59, Article XVI, Texas Constitution. The
88-8 cost of relocation of any roads, highways, railroads, or telephone
88-9 or telegraph properties or facilities made necessary by this
88-10 chapter and any reasonable actual damage incurred in changing and
88-11 adjusting the lines and grades of railroads or highways or roads or
88-12 telephone or telegraph properties or facilities shall be paid by
88-13 the authority.
88-14 (l) The authority may make contracts with any person or
88-15 legal entity, including the United States, the state, a political
88-16 subdivision or body politic and corporate of the state, any other
88-17 state, a political subdivision or body politic and corporate within
88-18 any other state, and any interstate compact commission or similar
88-19 organization, necessary or convenient to the exercise of the
88-20 powers, rights, privileges, and functions of the authority and may
88-21 take all actions and execute all instruments necessary or
88-22 convenient to the exercise of the powers, rights, privileges, and
88-23 functions of the authority.
88-24 (m) The authority may make or cause to be made surveys and
88-25 engineering investigations for the information of the authority to
88-26 facilitate the accomplishment of the purposes for which the
89-1 authority is created.
89-2 (n) The authority may borrow money for its corporate
89-3 purposes and may borrow money and accept grants, gratuities, or
89-4 other support from the United States or the state or from any
89-5 corporation or agency created or designated by the United States or
89-6 the state and in connection with any such loan, grant, or other
89-7 support may enter into such arrangement with the United States or
89-8 the state, or such corporation or agency of either, as the
89-9 authority may deem advisable.
89-10 (o) The authority may make and issue negotiable bonds for
89-11 funds borrowed in the manner and to the extent provided in this
89-12 chapter and, with reference to the bonds or otherwise, may contract
89-13 in any manner it sees fit and as may be required by any law
89-14 pertaining to loans, grants, or other support received from the
89-15 United States or the state or from a corporation or agency of the
89-16 United States or the state.
89-17 (p) The authority may make such contracts in the issuance of
89-18 bonds as may be considered necessary or convenient to insure the
89-19 marketability of the bonds.
89-20 (q) The authority may sue or be sued in its corporate name.
89-21 (r) The authority may adopt, use, and alter a corporate
89-22 seal.
89-23 (s) The authority may make bylaws for the management and
89-24 regulation of its affairs.
89-25 (t) The authority may set and collect charges and rates for
89-26 water services furnished by it and may impose penalties for failure
90-1 to pay the charges and rates when due; provided, however, that the
90-2 charges, rates, and penalties shall be set only by unanimous vote
90-3 of the members of the board constituting a quorum and who are
90-4 present at a regular meeting.
90-5 (u) The authority may cooperate and enter into contracts
90-6 with cities, persons, firms, corporations, and public agencies for
90-7 the purpose of supplying and selling them surface water, storm
90-8 water, floodwater, groundwater, and other water for municipal,
90-9 domestic, industrial, and other useful purposes permitted by law;
90-10 provided, however, that cities and areas constituting the authority
90-11 shall be accorded priority in the allocation of the authority's
90-12 available surface water, storm water, floodwater, groundwater, and
90-13 other water, and the board shall prescribe rules to carry out this
90-14 provision. A contract described by this subsection may be on such
90-15 terms and for such time as the parties may agree, and the contract
90-16 may provide that it shall continue in effect until the authority's
90-17 bonds specified in the contract and refunding bonds issued in lieu
90-18 of the bonds are fully paid. The authority of each member or other
90-19 city to enter into a contract with the authority for the sale of
90-20 water or other services or for any other purpose within the powers,
90-21 rights, privileges, and functions of the authority is vested
90-22 exclusively in the governing body of each member or other city
90-23 notwithstanding any provision of a home-rule charter or any local
90-24 ordinance of the member or other city or of any other provision of
90-25 any other law placing any restriction, limitation, or requirement
90-26 on the authority of the governing body of a member or other city to
91-1 enter into any such contract. No provision of the home-rule
91-2 charter or of any other ordinance of a member or other city, and no
91-3 provision of any other law, in conflict with this subsection will
91-4 invalidate or impair, in whole or in part, the enforceability and
91-5 validity of a contract entered into by the authority with a member
91-6 or other city pursuant to the powers, rights, privileges, and
91-7 functions of the authority. If the authority contracts with the
91-8 United States government or any of its agencies for a source of
91-9 water supply or for the furnishing of any facilities necessary or
91-10 useful to the authority in carrying out its purposes, the contract
91-11 entered into under authority of this subsection may provide that it
91-12 shall continue until the authority has fully discharged all
91-13 obligations incurred by it under the terms of its contract with the
91-14 United States government or its agencies. The authority may also
91-15 purchase surface water, storm water, floodwater, groundwater, and
91-16 other water supply from any person, firm, corporation, or public
91-17 agency or from the United States government or any of its
91-18 agencies.
91-19 (v) The authority may operate and maintain, with the consent
91-20 of the governing body of any city or town located within the
91-21 authority, any works, plants, or facilities of the city considered
91-22 necessary or convenient to the accomplishment of the purposes for
91-23 which the authority is created.
91-24 (w) The authority may levy, assess, and collect ad valorem
91-25 taxes to provide funds necessary to construct or acquire, maintain,
91-26 and operate improvements, works, plants, and facilities considered
92-1 essential and beneficial to the authority on a favorable majority
92-2 vote of the qualified electors voting at an election held for that
92-3 purpose within the authority and may also, when so authorized,
92-4 levy, assess, and collect taxes to provide funds adequate to defray
92-5 the cost of the maintenance, operation, and administration of the
92-6 authority. Elections for the voting of such taxes shall be ordered
92-7 by the board and shall be held and conducted as provided by this
92-8 chapter for elections for the issuance of bonds and the levy of
92-9 taxes in support of the bonds. When so levied such taxes, as well
92-10 as taxes levied in support of bond indebtedness as provided by this
92-11 chapter, constitute a lien on the property against which such taxes
92-12 are levied and assessed, and limitations shall not bar the
92-13 collection of the taxes and enforcement of such liens.
92-14 (x) The authority may do any and all acts and things
92-15 necessary or convenient to the exercise of the powers, rights,
92-16 privileges, or functions conferred on or permitted the authority by
92-17 any other law.
92-18 Sec. 253.015. CONSTRUCTION CONTRACTS; BIDDING. A contract
92-19 requiring an expenditure of more than $25,000 shall not be made
92-20 until after publication of a notice to bidders once each week for
92-21 two weeks before the contract is awarded. The notice shall be
92-22 sufficient if it states the time and place when and where the bids
92-23 will be opened, states the general nature of the work to be done or
92-24 the material, equipment, or supplies to be purchased, and states
92-25 when and on what terms copies of the plans and specifications may
92-26 be obtained. The publication shall be in a newspaper published in
93-1 the authority designated by the board.
93-2 Sec. 253.016. ISSUANCE OF BONDS. (a) For the purpose of
93-3 providing a source or sources of water supply for cities and other
93-4 users for municipal, domestic, industrial, and other useful
93-5 purposes permitted by law, as authorized by this chapter, and for
93-6 the purpose of carrying out any other power or authority conferred
93-7 by this chapter, including the powers conferred by Section 253.014,
93-8 the authority may issue negotiable bonds to be payable from such
93-9 net operating income and revenues or from such taxes, or from both
93-10 such revenues and taxes, of the authority as are pledged by
93-11 resolution of the board. In addition to the authority to issue
93-12 bonds for such purposes, the authority may also contract in any
93-13 other lawful manner and may prescribe the method of payment of any
93-14 such contract either by the use of net revenues, taxes, or both.
93-15 (b) Bonds must be authorized by resolution of the board,
93-16 bear the date or dates, mature at the time or times, and bear
93-17 interest at the rate or rates the board determines. The bonds must
93-18 be signed by the president and attested by the secretary and must
93-19 bear the seal of the authority. All bonds may be sold at a price
93-20 and under terms the board determines to be the most advantageous
93-21 and reasonably obtainable. Within the discretion of the board,
93-22 bonds may be made callable and subject to redemption before their
93-23 maturity at the times and prices prescribed in the authorizing
93-24 resolution. Interest on all bonds shall be payable annually or
93-25 semiannually within the discretion of the board. Bonds may be
93-26 issued in one or more than one series and from time to time as
94-1 required in carrying out the purpose of this chapter. The bonds
94-2 must be in such form, either coupon or registered, carry such
94-3 registration privileges as to principal only or as to both
94-4 principal and interest and as to exchange of coupon bonds for
94-5 registered bonds or vice versa and exchange of bonds of one
94-6 denomination for bonds of other denominations, and be payable at
94-7 such place or places within or outside the state as the board
94-8 determines and prescribes in the resolution or resolutions
94-9 authorizing the bonds.
94-10 (c) Bonds may be secured by a pledge of all or part of the
94-11 net revenues of the authority, of the net revenues of one or more
94-12 contracts made before or after the bonds are issued, or of other
94-13 revenues, in such manner as may be specified by resolution of the
94-14 board. A pledge may reserve the right, under conditions specified
94-15 in the pledge, to issue additional bonds which will be on a parity
94-16 with or subordinate to the bonds being issued. In this chapter,
94-17 "net revenues" means the gross revenues of the authority less the
94-18 amount necessary to pay the cost of maintaining and operating the
94-19 authority and its properties.
94-20 (d) If bonds are issued payable wholly or partially from ad
94-21 valorem taxes, the board shall levy a tax sufficient to pay the
94-22 bonds and the interest on the bonds as the bonds and interest
94-23 become due, but the rate of the tax for any year may be set after
94-24 giving consideration to the money received from the pledged
94-25 revenues that may be available for the payment of principal and
94-26 interest to the extent and in the manner permitted by the
95-1 resolution authorizing the issuance of the bonds.
95-2 (e) If bonds or any other contract payable wholly or
95-3 partially from revenues are issued or entered into, the board shall
95-4 set, by contract with all cities, persons, firms, corporations, or
95-5 public agencies that may contract with it for a water supply or
95-6 water facilities, rates of compensation for water sold and services
95-7 rendered by the authority sufficient to pay the expenses of
95-8 operating and maintaining the authority and its facilities and to
95-9 pay all such obligations incurred by it as they mature, including
95-10 such reserve and other funds as may be provided for the bonds or
95-11 other contracts under their terms and as may be provided in the
95-12 resolution pertaining to the bonds or contracts.
95-13 (f) From the proceeds of the sale of bonds, the authority
95-14 may set aside an amount for the payment of interest expected to
95-15 accrue during construction and for a reserve interest and sinking
95-16 fund, which provisions shall be made in the resolution authorizing
95-17 the bonds. Proceeds from the sale of bonds may also be used for
95-18 the payment of all expenses necessarily incurred in accomplishing
95-19 the purposes for which the authority is created, including the
95-20 expenses of issuing and selling the bonds. Pending the use of bond
95-21 proceeds for the purpose for which the bonds were issued, the
95-22 board, in its discretion, may invest the proceeds in obligations of
95-23 the United States government.
95-24 (g) In the event of a default or a threatened default in the
95-25 payment of the principal of or interest on bonds payable wholly or
95-26 partially from revenues, any court of competent jurisdiction may,
96-1 on petition of the holders of 25 percent of the outstanding bonds
96-2 of the issue in default or threatened with default, appoint a
96-3 receiver with authority to collect and receive all income of the
96-4 authority except taxes, employ and discharge agents and employees
96-5 of the authority, take charge of the authority's funds on hand
96-6 (except funds received from taxes, unless commingled), and manage
96-7 the proprietary affairs of the authority without consent or
96-8 hindrance by the board. The receiver may also be authorized to
96-9 sell or make contracts for the sale of water or renew such
96-10 contracts with the approval of the court appointing the receiver.
96-11 (h) Bonds issued by the authority pursuant to the provisions
96-12 of this chapter are negotiable instruments under the laws of this
96-13 state.
96-14 (i) Before bonds are sold by the authority, a certified copy
96-15 of the proceedings for the issuance of the bonds, including the
96-16 form of the bonds, together with any other information the attorney
96-17 general may require, shall be submitted to the attorney general.
96-18 If the attorney general finds that the bonds have been issued in
96-19 accordance with law, the attorney general shall approve the bonds
96-20 and execute a certificate of approval, which shall be filed in the
96-21 office of the comptroller and be recorded in a record kept for that
96-22 purpose. A bond may not be issued until the bond has been
96-23 registered by the comptroller, who shall register the bond if the
96-24 attorney general has filed a certificate approving the bonds and
96-25 the proceedings for the issuance of the bonds with the comptroller
96-26 as provided in this section. If bonds or the proceedings
97-1 pertaining to the bonds recite that they are secured by a pledge of
97-2 the proceeds of a contract previously made between the authority
97-3 and a city, district, or other user, a copy of the contract and the
97-4 proceedings of the contracting parties shall be submitted to the
97-5 attorney general along with the bond record, and if the bonds have
97-6 been duly authorized and the contracts made in compliance with law,
97-7 the attorney general shall approve the bonds and contracts and the
97-8 bonds shall be registered by the comptroller. After approval by
97-9 the attorney general, the bonds and contracts are valid and binding
97-10 and are incontestable for any cause.
97-11 (j) Whenever the authority has issued bonds, including
97-12 interim or temporary bonds, or has contracted with the United
97-13 States or with the state, or a corporation or agency of either, in
97-14 connection with the financing of its works or facilities, the
97-15 authority may validate the bonds or contracts by suit as provided
97-16 by Sections 51.423-51.431.
97-17 (k) Pending the issuance of definitive bonds, the authority
97-18 may issue and deliver interim or temporary bonds. The interim or
97-19 temporary bonds thus issued may be taken up with the proceeds of
97-20 the definitive bonds, or the definitive bonds may be issued and
97-21 delivered in exchange for and in substitution of the interim or
97-22 temporary bonds. After an exchange and substitution, the authority
97-23 shall file proper certificates with the comptroller as to the
97-24 exchange, substitution, and cancellation. The certificates shall
97-25 be recorded by the comptroller.
97-26 (l) The board may issue refunding bonds for the purpose of
98-1 refunding any outstanding bonds authorized by this chapter and
98-2 interest on the bonds without the necessity of an election.
98-3 Refunding bonds may be issued to refund more than one series of
98-4 outstanding bonds, and in the case of bonds secured in whole or in
98-5 part by net revenues, the authority may combine the pledges for the
98-6 outstanding bonds for the security of the refunding bonds and may
98-7 secure the refunding bonds by other or additional revenues. The
98-8 provisions of this chapter with reference to the issuance of other
98-9 bonds and their approval by the attorney general and the rights and
98-10 remedies of the holders shall be applicable to refunding bonds.
98-11 Refunding bonds shall be registered by the comptroller on surrender
98-12 and cancellation of the bonds to be refunded; but in lieu of this
98-13 procedure, the resolution authorizing the issuance of the refunding
98-14 bonds may provide that the refunding bonds shall be sold and the
98-15 proceeds deposited in the bank where the original bonds are
98-16 payable, in which case the refunding bonds may be issued in an
98-17 amount sufficient to pay the interest on the original bonds to
98-18 their option date or maturity date and the comptroller shall
98-19 register the refunding bonds without concurrent surrender and
98-20 cancellation of the original bonds.
98-21 (m) Bonds, including refunding bonds, authorized by this
98-22 chapter that are not payable wholly from ad valorem taxes may be
98-23 additionally secured by a trust indenture under which the trustee
98-24 may be a bank with trust powers that is situated either within or
98-25 outside the state. The trust indenture or mortgage may include
98-26 provisions for a lien on all or part of the physical properties of
99-1 the authority and franchises, easements, water rights and
99-2 appropriation permits, leases and contracts, and all rights
99-3 appurtenant to such properties, vesting in the trustee power to
99-4 sell the properties for payment of the indebtedness thus secured
99-5 and power to operate the properties and all other powers and
99-6 authority for the further security of the bonds. The trust
99-7 indenture, regardless of the existence of a deed of trust lien, may
99-8 contain provisions prescribed by the board for the security of the
99-9 bonds and the preservation of the trust estate, including provision
99-10 for amendment or modification thereof and the issuance of bonds to
99-11 replace lost or mutilated bonds secured by the trust indenture. A
99-12 purchaser under a sale under a deed of trust lien, where one is
99-13 given, shall be the owner of the properties, facilities, and rights
99-14 so purchased and shall have the right to maintain and operate the
99-15 properties, facilities, and rights during the period prescribed by
99-16 the trust indenture.
99-17 (n) Bonds supported in whole or in part by taxes to be
99-18 levied by the authority, except refunding bonds related to the
99-19 bonds, may not be issued unless the bonds are authorized by an
99-20 election at which only the qualified voters who reside in the
99-21 authority may vote and unless a majority of the votes cast at the
99-22 authoritywide election is in favor of the issuance of the bonds.
99-23 (o) A bond election for the issuance of bonds supported in
99-24 whole or in part by taxes may be called by the board without a
99-25 petition. The resolution calling the election shall specify the
99-26 time and location of the election, the purpose for which the bonds
100-1 are to be issued, the maximum amount of the bonds, the maximum
100-2 maturity of the bonds, the maximum interest rate, the form of the
100-3 ballot, and the presiding judge for each voting place. The
100-4 presiding judge serving at each voting place shall appoint the
100-5 necessary assistant judges and clerks for holding the election.
100-6 Notice of the election must be given by publishing a substantial
100-7 copy of the resolution calling the election in a newspaper or
100-8 newspapers of general circulation in each city contained in the
100-9 authority once a week for two consecutive weeks. The first
100-10 publication must be at least 21 days before the date of the
100-11 election. The returns of the election shall be made to and
100-12 canvassed by the board. The Election Code applies to elections
100-13 held under this section, except as otherwise provided in this
100-14 chapter.
100-15 (p) Bonds of the authority supported by revenues or sources
100-16 other than taxes to be levied by the authority may be issued as
100-17 otherwise provided by this chapter without holding an election to
100-18 approve the bonds.
100-19 (q) The authority may issue bond anticipation notes for any
100-20 purpose for which bonds of the authority may be authorized or for
100-21 the purpose of refunding previously issued bond anticipation notes.
100-22 The authority may covenant with the purchasers of the bond
100-23 anticipation notes that the authority will use the proceeds of sale
100-24 of any bonds authorized by the authority for the purpose of
100-25 refunding the bond anticipation notes, in which case the authority
100-26 will be required to use the proceeds received from sale of the
101-1 bonds to pay principal, interest, or redemption price on the bond
101-2 anticipation notes. To the extent applicable, the terms and
101-3 conditions of this chapter relating to bonds of the authority apply
101-4 to the bond anticipation notes.
101-5 (r) In addition to the power to issue bonds as provided by
101-6 this chapter, the authority may issue bonds for any purpose and in
101-7 any manner authorized by general law for water control and
101-8 improvement districts or may issue bonds in any other manner
101-9 authorized by law. Section 49.181 does not apply to the issuance
101-10 of bonds or to the construction projects funded by bonds.
101-11 Sec. 253.017. NO EXCLUSION OF LANDS OR OTHER PROPERTY
101-12 REQUIRED. The provisions of Subchapter J, Chapter 49, or other
101-13 statutes relating to the exclusion of lands or other property shall
101-14 not be applicable to the authority.
101-15 Sec. 253.018. CONTRACTS WITH UNITED STATES OR ITS AGENCIES;
101-16 ELECTIONS. (a) The authority may contract with the United States
101-17 government and any of its agencies or contract under the federal
101-18 reclamation laws for the construction, operation, and maintenance
101-19 of any work or facility by which water may be supplied and
101-20 distributed to the authority under any act of Congress providing or
101-21 permitting such contract, and for the accomplishment of all other
101-22 powers and purposes of the authority including those described in
101-23 Section 253.014, and the authority shall further have all the
101-24 rights, powers, privileges, and authority granted under the general
101-25 laws of the state in that respect.
101-26 (b) A contract entered into pursuant to Subsection (a) may
102-1 provide that on the repayment of all amounts to become due under
102-2 the contract, title to all facilities constructed pursuant to the
102-3 contract, including any dam or reservoir, shall pass to and be
102-4 lodged in the authority, or the contract may provide that the
102-5 authority shall be vested with absolute control over the release
102-6 and use of waters stored in the facilities and belonging to the
102-7 authority as long as the authority remains current in the payment
102-8 of the amounts due the United States government or its agency under
102-9 the contract. In all events, title to its water rights shall
102-10 continue to remain in the authority.
102-11 (c) If a contract is proposed to be made whereby the
102-12 authority will become obligated to make payments wholly or
102-13 partially from ad valorem taxes to be levied by the authority, the
102-14 contract shall not be entered into unless authorized by an election
102-15 at which only the qualified voters who reside in the authority may
102-16 vote and a majority of the votes cast at the election is in favor
102-17 of the execution of the contract. All methods prescribed in
102-18 Sections 253.016 (n) and (o) relating to the voting of bonds are
102-19 applicable to the voting of contracts if an election is required
102-20 under this section.
102-21 (d) If the authority enters into a contract with the United
102-22 States government or any of its agencies as provided in this
102-23 section, no subsequent alteration in the organization of the
102-24 authority shall be effected and no proceedings for the exclusion of
102-25 any area of the authority shall be undertaken under the provisions
102-26 of any law unless such alterations and exclusions have first
103-1 received the approval of the United States government or its
103-2 contracting agency.
103-3 Sec. 253.019. WATER PERMITS. The authority is authorized to
103-4 acquire and own water permits on compliance with the provisions of
103-5 the general law pertaining to such permits as provided by Chapter
103-6 11.
103-7 Sec. 253.020. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
103-8 DEPOSITS. Bonds of the authority are legal and authorized
103-9 investments for banks, savings banks, trust companies, building and
103-10 loan associations, savings and loan associations, insurance
103-11 companies, fiduciaries, trustees, and guardians, for the sinking
103-12 funds of cities, towns, villages, counties, school districts, or
103-13 other political subdivisions of the state, and for all public funds
103-14 of the state or its agencies including the permanent school fund.
103-15 Such bonds are eligible to secure the deposit of all public funds
103-16 of the state and all public funds of cities, towns, villages,
103-17 counties, school districts, or other political corporations or
103-18 subdivisions of the state, and such bonds shall be lawful and
103-19 sufficient security for such deposits to the extent of their value
103-20 when accompanied by all unmatured coupons.
103-21 Sec. 253.021. BONDS EXEMPT FROM TAXATION. The
103-22 accomplishment of the purposes stated in this chapter are for the
103-23 benefit of the people of this state and for the improvement of
103-24 their properties and industry. The authority, in carrying out the
103-25 purposes of this chapter, will be performing an essential public
103-26 function under the constitution and shall not be required to pay
104-1 any tax or assessment on the project or any part of the project,
104-2 and the bonds or other obligations issued under this chapter and
104-3 the transfer of and income from the bonds, including profits on the
104-4 sale of the bonds, shall at all times be free from taxation by the
104-5 state or by any municipal corporation, county, or other political
104-6 subdivision or taxing district of the state.
104-7 Sec. 253.022. TAXATION. Before the issuance of authority
104-8 bonds or the execution of a contract payable wholly or partially
104-9 from ad valorem taxes, the board shall appoint a tax assessor and
104-10 collector and a board of equalization and shall cause taxes to be
104-11 assessed, valuations to be equalized, and tax rolls to be prepared.
104-12 The board may also appoint deputies to assist the tax assessor and
104-13 collector in the manner and for the period it may order. Where
104-14 applicable and not in conflict with this section, the general laws
104-15 relating to water control and improvement districts with reference
104-16 to tax assessors and collectors, boards of equalization, tax rolls,
104-17 and the levy and collection of taxes and delinquent taxes shall be
104-18 applicable to the authority, except that the board of equalization
104-19 to be appointed each year by the board shall consist of one member
104-20 residing in each city then contained in the authority. All taxes
104-21 to be levied, assessed, and collected by the authority shall be on
104-22 an ad valorem basis and all provisions of the general laws
104-23 pertaining to the levy, assessment, and collection of ad valorem
104-24 taxes by water control and improvement districts, including the
104-25 enforcement of such provisions and the processes for the collection
104-26 of delinquent taxes provided in such provisions, shall be
105-1 applicable to the authority.
105-2 Sec. 253.023. ADOPTION OF RULES AND REGULATIONS. The board
105-3 may adopt and promulgate reasonable rules and regulations to
105-4 secure, maintain, and preserve the sanitary condition of all water
105-5 in and to flow into any reservoir owned by the authority or which
105-6 it may control, by contract or otherwise, to prevent the waste or
105-7 unauthorized use of water, and to regulate residence, hunting,
105-8 fishing, boating, and camping, and all recreational and business
105-9 privileges, along, around, or on any such reservoir or any body of
105-10 land or easement owned or controlled by the authority.
105-11 Sec. 253.024. RECREATIONAL FACILITIES. The authority may
105-12 establish or otherwise provide for public parks and recreation
105-13 facilities and may acquire for such purposes land adjacent to any
105-14 reservoir in which the authority owns water storage rights;
105-15 provided, however, that no money received from taxation or bonds
105-16 payable wholly or partially from taxation shall be used for such
105-17 purposes. The authority may also contract for the lease of lands
105-18 acquired by it for recreation or concession purposes under terms as
105-19 the board may determine.
105-20 Sec. 253.025. VOTING PLACES. For the purposes of all
105-21 authority elections to be conducted under the provisions of this
105-22 chapter, the voting places shall conform as nearly as conveniently
105-23 possible with those customarily designated for election purposes in
105-24 the various cities or areas comprising the authority.
105-25 Sec. 253.026. TERRITORY DETACHED FROM ANY OTHER DISTRICT OR
105-26 AUTHORITY. The authority, with its granted powers, shall take
106-1 precedence over and stand in lieu of any other water district
106-2 previously organized over the same territory or organized and
106-3 created in any manner over the same territory under any general or
106-4 special law, and such territory under the provisions of this
106-5 chapter is declared to be detached from all other districts or
106-6 authorities established under Section 59, Article XVI, Texas
106-7 Constitution, including particularly the Panhandle Water
106-8 Conservation Authority, established by Chapter 256, Acts of the
106-9 45th Legislature, Regular Session, 1937. The authority may
106-10 coordinate its plans with any conservation, reclamation, or other
106-11 district previously created, with powers provided in Section 59,
106-12 Article XVI, Texas Constitution, and may enter into joint
106-13 undertaking for the purposes for which the districts are created;
106-14 provided, however, that all such acts must be approved by a
106-15 majority of the board of directors of each district or authority
106-16 involved.
106-17 Sec. 253.027. BONDS OF OFFICERS AND EMPLOYEES. All bonds
106-18 required to be given by officers and employees of the authority
106-19 shall be executed by a surety company authorized to do business in
106-20 the state. The authority may pay the premiums on the bonds.
106-21 Sec. 253.028. CONFLICTS. (a) All powers conferred by the
106-22 general laws of the state pertaining to water control and
106-23 improvement districts shall be applicable to the authority to the
106-24 extent that those laws are not in conflict with the provisions of
106-25 this chapter.
106-26 (b) Nothing in this chapter shall be construed to violate
107-1 any provision of the federal or state constitutions, and all acts
107-2 done under this chapter shall be done in such a manner as will
107-3 conform to the provisions of those constitutions, whether expressly
107-4 provided in this chapter or not. If any procedure under this
107-5 chapter is held by a court to be violative of either constitution,
107-6 the authority shall have the power by resolution to provide an
107-7 alternative procedure conformable with the constitutions.
107-8 Sec. 253.029. COMPLIANCE WITH CANADIAN RIVER COMPACT.
107-9 Nothing in this chapter shall be construed in any manner that might
107-10 preclude full compliance with the provisions of the Canadian River
107-11 Compact, entered into and signed by the states of Texas, New
107-12 Mexico, and Oklahoma and the federal government on December 6,
107-13 1950. All actions and rights existing under the authority of this
107-14 chapter shall be controlled to the extent necessary to afford full
107-15 compliance with the terms of the compact.
107-16 Sec. 253.030. BOND NOT REQUIRED. The authority shall not be
107-17 required to give a cost or supersedeas bond or to pay a cost
107-18 deposit on any appeal from the judgment of any court of this state.
107-19 CHAPTER 254. CENTRAL COLORADO RIVER AUTHORITY
107-20 Sec. 254.001. CREATION. (a) A conservation and reclamation
107-21 district to be known as the "Central Colorado River Authority" is
107-22 created. The authority is a governmental agency and a body politic
107-23 and corporate.
107-24 (b) The authority is created under and is essential to
107-25 accomplish the purposes of Section 59, Article XVI, Texas
107-26 Constitution.
108-1 (c) The authority may exercise the rights, privileges, and
108-2 functions provided by this chapter including, to the extent
108-3 authorized by this chapter, the control, storing, preservation, and
108-4 distribution of the waters of the Central Colorado River and its
108-5 tributaries for domestic, municipal, flood control, irrigation,
108-6 power, and other useful purposes; the reclamation and irrigation of
108-7 arid, semiarid, and other lands needing irrigation; and the
108-8 conservation and development of the forests, water, and
108-9 hydroelectric power of the state.
108-10 (d) Nothing in this chapter or in any other law shall be
108-11 construed as authorizing the authority to levy or collect taxes or
108-12 assessments, or to create any indebtedness payable out of taxes or
108-13 assessments, or in any way to pledge the credit of the state.
108-14 Sec. 254.002. DEFINITIONS. In this chapter:
108-15 (1) "Authority" means the Central Colorado River
108-16 Authority.
108-17 (2) "Board" means the board of directors of the
108-18 authority.
108-19 (3) "Director" means a member of the board.
108-20 Sec. 254.003. TERRITORY. The authority consists of all the
108-21 territory included within the boundaries of Coleman County.
108-22 Sec. 254.004. POWERS AND DUTIES. (a) Except as expressly
108-23 limited by this chapter, the authority may exercise all the powers,
108-24 rights, privileges, and functions conferred by general law on
108-25 districts created under Section 59, Article XVI, Texas
108-26 Constitution, and as provided by this section.
109-1 (b) The authority may control, store, and preserve, within
109-2 the boundaries of the authority, the waters of the Colorado River
109-3 and its tributaries for any useful purpose and may use, distribute,
109-4 and sell those waters within the boundaries of the authority for
109-5 any useful purpose.
109-6 (c) The authority may develop and generate waterpower and
109-7 electric energy within the boundaries of the authority and may
109-8 distribute and sell waterpower and electric energy within or
109-9 outside the boundaries of the authority; but such use shall be
109-10 subordinate and inferior to all requirements for domestic,
109-11 municipal, and irrigation purposes.
109-12 (d) The authority may prevent or aid in the prevention of
109-13 damage to person or property from the waters of the Colorado River
109-14 and its tributaries.
109-15 (e) The authority may forest and reforest and aid in the
109-16 foresting and reforesting of the watershed area of the Colorado
109-17 River and its tributaries and may prevent and aid in the prevention
109-18 of soil erosion and floods within the watershed area.
109-19 (f) The authority may acquire by purchase, lease, or gift or
109-20 in any other manner, other than by condemnation, and may maintain,
109-21 use, and operate property of any kind, real, personal, or mixed, or
109-22 any interest in property, within or outside the boundaries of the
109-23 authority, necessary or convenient to the exercise of the powers,
109-24 rights, privileges, and functions conferred on the authority by
109-25 this chapter.
109-26 (g) The authority may acquire by condemnation property of
110-1 any kind, real, personal, or mixed, or any interest in property,
110-2 within the boundaries of the authority necessary or convenient to
110-3 the exercise of the powers, rights, privileges, and functions
110-4 conferred on the authority by this chapter. The authority may
110-5 condemn property in the manner provided by general law with respect
110-6 to condemnation or, at the option of the authority, in the manner
110-7 provided by the statutes relating to condemnation by districts
110-8 organized under general law pursuant to Section 59, Article XVI,
110-9 Texas Constitution.
110-10 (h) The authority may, subject to the provisions of this
110-11 chapter, sell or otherwise dispose of property of any kind, real,
110-12 personal, or mixed, or any interest in property, that is not
110-13 necessary to carrying on the business of the authority.
110-14 (i) The authority may overflow and inundate any public lands
110-15 and public property and may require the relocation of roads and
110-16 highways in the manner and to the extent permitted to districts
110-17 organized under general law pursuant to Section 59, Article XVI,
110-18 Texas Constitution.
110-19 (j) The authority may construct, extend, improve, maintain,
110-20 and reconstruct, or cause to be constructed, extended, improved,
110-21 maintained, and reconstructed, and may use and operate facilities
110-22 of any kind necessary or convenient to the exercise of its powers,
110-23 rights, privileges and functions.
110-24 (k) The authority may sue and be sued in its corporate name.
110-25 (l) The authority may make bylaws for the management and
110-26 regulation of its affairs.
111-1 (m) The authority may adopt, use, and alter a corporate
111-2 seal.
111-3 (n) The authority may appoint officers, agents, and
111-4 employees and may prescribe their duties and fix their
111-5 compensation.
111-6 (o) The authority may make contracts and execute instruments
111-7 necessary or convenient to the exercise of the powers, rights,
111-8 privileges, and functions conferred on the authority by this
111-9 chapter.
111-10 (p) The authority may borrow money for its corporate
111-11 purposes and may borrow money and accept grants from the United
111-12 States or a corporation or agency created or designated by the
111-13 United States and, in connection with such loan or grant, may enter
111-14 into such agreements as the United States or such corporation or
111-15 agency may require. The authority may make and issue negotiable
111-16 bonds for funds borrowed in the manner and to the extent provided
111-17 by Section 254.012. Nothing in this chapter shall be construed to
111-18 authorize the issuance of any bonds, notes, or other evidences of
111-19 indebtedness of the authority except as specifically provided by
111-20 this chapter, and no issuance of bonds, notes, or other evidences
111-21 of indebtedness of the authority except as specifically provided by
111-22 this chapter shall ever be authorized except by an act of the
111-23 legislature.
111-24 (q) The authority may do any and all other acts or things
111-25 necessary or convenient to the exercise of the powers, rights,
111-26 privileges, or functions conferred on the authority by this chapter
112-1 or any other act or law.
112-2 Sec. 254.005. LIMITATIONS ON AUTHORITY. (a) The authority
112-3 may not be permitted to use for irrigation purposes any water under
112-4 any law or permits issued or held, owned, or enjoyed by the
112-5 authority or which have been acquired from the Colorado River
112-6 Corporation or any other company or person unless such use is
112-7 expressly authorized by permits granted to the authority by the
112-8 commission under authority of law. In considering applications by
112-9 the authority, the commission shall at all times consider the needs
112-10 of the people living within and on the lands lying within the
112-11 watershed of the Colorado River and its tributaries above the
112-12 authority; provided, however, that nothing in this subsection shall
112-13 prevent the authority from selling, for irrigation purposes within
112-14 the boundaries of the authority, any water impounded by it under
112-15 authority of law.
112-16 (b) Notwithstanding any rights or permits issued by the
112-17 commission or its predecessor agency that are held or acquired by
112-18 the authority, the impounding and use of the floodwaters of the
112-19 Colorado River or its tributaries for the generation of
112-20 hydroelectric power by the authority or anyone who may succeed to
112-21 the rights and privileges conferred on the authority by this
112-22 chapter are subject to the rights of a person, municipal
112-23 corporation, or body politic that is impounding or putting to
112-24 beneficial use such waters for the purposes set forth in Section
112-25 11.024(1)-(3) if the person, municipal corporation, or body
112-26 politic:
113-1 (1) has received a permit for the use from the
113-2 commission; or
113-3 (2) is permitted by law to impound water for the
113-4 purposes described by this subsection.
113-5 (c) Nothing in this chapter shall be construed to subject to
113-6 condemnation by the authority, or by any successors of the
113-7 authority or anyone who may succeed to the rights and privileges
113-8 conferred on the authority by this chapter, any waters:
113-9 (1) impounded or to be impounded within or outside the
113-10 authority under any law authorizing water to be impounded or under
113-11 any permits granted to a municipal corporation or body politic; or
113-12 (2) impounded or permitted to be impounded or used
113-13 outside the authority under permits granted to any person.
113-14 (d) Nothing in this chapter shall be construed as depriving
113-15 any person or municipality of the right to impound the waters of
113-16 the Colorado River or its tributaries for domestic or municipal
113-17 purposes or as repealing any law granting such rights to persons
113-18 and municipalities.
113-19 (e) All rights of the authority to impound, use, and sell
113-20 the waters of the Colorado River and its tributaries for the
113-21 generation of hydroelectric power are subordinate and inferior to
113-22 the rights of:
113-23 (1) cities and towns situated within the watershed of
113-24 the Colorado River and its tributaries to build dams and impound
113-25 floodwaters for municipal purposes; and
113-26 (2) any citizens of Texas, or bodies politic, to build
114-1 dams and impound the floodwaters within the watershed of the
114-2 Colorado River and its tributaries for domestic purposes and for
114-3 the purposes of irrigation.
114-4 (f) The title to any rights, properties, licenses,
114-5 franchises, or permits acquired, or to be acquired, by the
114-6 authority shall be subject to the limitations imposed by Subsection
114-7 (e).
114-8 Sec. 254.006. BOARD OF DIRECTORS. (a) The powers, rights,
114-9 privileges, and functions of the authority shall be exercised by a
114-10 board consisting of nine directors.
114-11 (b) Each director must be a resident and freehold property
114-12 taxpayer of the state and a resident of the authority.
114-13 (c) The directors shall be appointed by the governor with
114-14 the advice and consent of the senate. A person is not eligible for
114-15 appointment if the person has, during the three years immediately
114-16 preceding the person's appointment, been employed by an electric
114-17 power and light company, gas company, telephone company, or any
114-18 other utility company of any kind. Directors are appointed for
114-19 staggered terms of six years, with three directors' terms expiring
114-20 on February 1 of each odd-numbered year. At the expiration of the
114-21 term of a director, a successor shall be appointed by the governor.
114-22 (d) Each director shall hold office until the expiration of
114-23 the term for which the director was appointed and until a successor
114-24 is appointed and has qualified, unless removed sooner as provided
114-25 by this chapter.
114-26 (e) A director may be removed by the governor for
115-1 inefficiency, neglect of duty, or misconduct in office after at
115-2 least 10 days' written notice of the charges against the director
115-3 and an opportunity to be heard in person or by counsel at a public
115-4 hearing. A vacancy resulting from the death, resignation, or
115-5 removal of a director shall be filled by the governor for the
115-6 unexpired term. Each director shall qualify by taking the official
115-7 oath of office prescribed by general statute.
115-8 (f) Each director is entitled to receive a fee of $10 per
115-9 day for each day spent in attending meetings of the board.
115-10 (g) Until the adoption of bylaws setting the time and place
115-11 of regular meetings and the manner in which special meetings may be
115-12 called, meetings of the board shall be held at such times and
115-13 places as five of the directors may designate in writing. Five
115-14 directors constitute a quorum at any meeting.
115-15 (h) Except as otherwise provided in this chapter or in the
115-16 bylaws, all actions may be taken by the affirmative vote of a
115-17 majority of the directors present at any meeting, except that an
115-18 affirmative vote of at least five directors is required to
115-19 authorize or ratify a contract that involves an amount greater than
115-20 $10,000 or that is to run for a period longer than one year, the
115-21 issuance of bonds, notes, or other evidence of indebtedness, or
115-22 amendment of the bylaws.
115-23 Sec. 254.007. OFFICERS; EMPLOYEES. (a) The board shall
115-24 select a secretary, who shall keep true and complete records of all
115-25 proceedings of the board. Until the appointment of a secretary, or
115-26 in the event of the secretary's absence or inability to act, a
116-1 secretary pro tempore shall be selected by the board.
116-2 (b) The board shall select a general manager, who shall be
116-3 the chief executive officer of the authority.
116-4 (c) The board shall select a treasurer, who may also hold
116-5 the office of secretary.
116-6 (d) The officers have the powers and duties, hold office for
116-7 the term, and are subject to removal in the manner provided in the
116-8 bylaws. The board shall set the compensation of the officers.
116-9 (e) The board may appoint officers, agents, and employees,
116-10 may set their compensation and term of office and the method by
116-11 which they may be removed, and may delegate to them the power and
116-12 duties it determines appropriate.
116-13 Sec. 254.008. DISBURSEMENT OF FUNDS; SURETY BONDS. (a) The
116-14 funds of the authority may be disbursed only on checks, drafts,
116-15 orders, or other instruments signed by the persons authorized by
116-16 the bylaws or a resolution concurred in by not less than five
116-17 directors.
116-18 (b) The general manager, the treasurer, and all other
116-19 officers, agents, and employees of the authority charged with the
116-20 collection, custody, or payment of any funds of the authority shall
116-21 give bond conditioned on the faithful performance of their duties
116-22 and an accounting for all funds and property of the authority
116-23 coming under their control.
116-24 (c) The bonds must be in a form and amount and with a surety
116-25 (by a surety company authorized to do business in the state)
116-26 approved by the board.
117-1 (d) The premiums on the bonds shall be paid by the authority
117-2 and charged as an operating expense.
117-3 Sec. 254.009. AUTHORITY OFFICE; RECORDS. (a) The domicile
117-4 of the authority shall be in the city of Coleman, Coleman County,
117-5 where the authority shall maintain its principal office in the
117-6 charge of the general manager.
117-7 (b) The authority shall keep complete and accurate accounts
117-8 conforming to approved methods of bookkeeping.
117-9 (c) The accounts and all contracts, documents, and records
117-10 of the authority shall be kept at the principal office. The
117-11 accounts and contracts shall be open to public inspection at all
117-12 reasonable times.
117-13 (d) The board shall cause to be made and completed, within
117-14 90 days after the end of each calendar year, an audit of the books
117-15 of account and financial records of the authority for that calendar
117-16 year. The audit shall be made by an independent certified public
117-17 accountant or firm of certified public accountants.
117-18 (e) Copies of a written report of the audit, certified to by
117-19 the accountant or accountants, shall be placed and kept on file
117-20 with the commission, with the comptroller, and at the principal
117-21 office of the authority, and the report shall be open to public
117-22 inspection at all reasonable times.
117-23 Sec. 254.010. CONFLICT OF INTEREST; PENALTY. A director,
117-24 officer, agent, or employee of the authority may not have an
117-25 interest, directly or indirectly, in any contract for the purchase
117-26 of any property or construction of any work by or for the
118-1 authority. If a director, officer, agent, or employee of the
118-2 authority is or becomes interested in a contract described by this
118-3 section, the person shall be guilty of a felony and on conviction
118-4 shall be subject to a fine not to exceed $10,000 or confinement in
118-5 the county jail for not less than one year or more than 10 years,
118-6 or both a fine and confinement.
118-7 Sec. 254.011. RATES AND CHARGES. (a) The board shall
118-8 establish and collect rates and other charges for the sale or use
118-9 of water, water connections, power, electric energy, or other
118-10 services sold, furnished, or supplied by the authority. The fees
118-11 and charges must be reasonable and nondiscriminatory and sufficient
118-12 to produce revenues adequate to:
118-13 (1) pay all expenses necessary to the operation and
118-14 maintenance of the properties and facilities of the authority;
118-15 (2) pay the interest on and principal of all bonds
118-16 issued under this chapter as the interest and principal become due
118-17 and payable;
118-18 (3) pay all sinking fund and reserve fund payments
118-19 agreed to be made with respect to bonds and payable out of
118-20 revenues, as the payments become due and payable; and
118-21 (4) fulfill the terms of any agreements made with the
118-22 holders of bonds or with any person in their behalf.
118-23 (b) Out of the revenues that may be received in excess of
118-24 those required for the purposes specified in Subsection (a), the
118-25 board may, in its discretion:
118-26 (1) establish a reasonable depreciation and emergency
119-1 fund;
119-2 (2) retire, by purchase and cancellation or
119-3 redemption, bonds issued under this chapter; or
119-4 (3) apply the excess revenues to any corporate
119-5 purpose.
119-6 (c) The rates and charges of the authority may not be in
119-7 excess of what may be necessary to fulfill the obligations imposed
119-8 on the authority by this chapter. Nothing in this section shall be
119-9 construed as depriving the state of its power to regulate and
119-10 control fees or charges to be collected for the use of water, water
119-11 connections, power, electric energy, or other service; provided,
119-12 however, that the state pledges to and agrees with the purchasers
119-13 and successive holders of the bonds issued under this chapter that
119-14 the state will not limit or alter the power vested in the authority
119-15 by this chapter to establish and collect such fees and charges as
119-16 will produce revenues sufficient to pay the items specified in
119-17 Subsection (a) or in any way impair the rights or remedies of the
119-18 holders of the bonds, or of any person in their behalf, until the
119-19 bonds, together with the interest on the bonds, and the interest on
119-20 unpaid installments of interest and all costs and expenses in
119-21 connection with any action or proceedings by or on behalf of the
119-22 bondholders and all other obligations of the authority in
119-23 connection with the bonds are fully met and discharged.
119-24 Sec. 254.012. PAYMENT OF DEBTS. Each indebtedness,
119-25 liability, or obligation of the authority for the payment of money,
119-26 however entered into or incurred and whether arising from contract,
120-1 implied contract, or otherwise, shall be payable solely:
120-2 (1) out of the revenues received by the authority with
120-3 respect to its properties, subject to any prior lien on the
120-4 revenues conferred by any resolution previously adopted authorizing
120-5 the issuance of bonds as provided in this chapter; or
120-6 (2) if the board so determines, out of the proceeds of
120-7 the sale by the authority of bonds payable solely from revenues.
120-8 Sec. 254.013. ISSUANCE OF BONDS. (a) The authority may
120-9 issue bonds as provided by this section for any corporate purpose,
120-10 not to exceed $500,000 in aggregate principal amount. Any
120-11 additional amount of bonds must be authorized by an act of the
120-12 legislature.
120-13 (b) Bonds may be:
120-14 (1) sold for cash, at public or private sale, at such
120-15 price or prices as the board determines, provided that the interest
120-16 cost of the money received for the bonds, computed to maturity in
120-17 accordance with standard bond tables in general use by banks and
120-18 insurance companies, does not exceed six percent per year; or
120-19 (2) issued on such terms as the board determines in
120-20 exchange for property of any kind, real, personal, or mixed, or any
120-21 interest in property, that the board determines necessary or
120-22 convenient for any corporate purpose; or
120-23 (3) issued in exchange for like principal amounts of
120-24 other obligations of the authority, matured or unmatured.
120-25 (c) The proceeds of the sale of bonds shall be deposited in
120-26 a bank or banks or trust company or trust companies and shall be
121-1 paid out pursuant to the terms and conditions agreed on between the
121-2 authority and the purchasers of the bonds.
121-3 (d) Bonds must be authorized by a resolution of the board
121-4 that is concurred in by at least five members. Bonds must bear
121-5 such date or dates; mature at such time or times; bear interest at
121-6 such rate or rates, not exceeding six percent per year, payable
121-7 annually or semiannually; be in such denominations; be in such
121-8 form, either coupon or registered; carry such registration
121-9 privileges as to principal only or as to both principal and
121-10 interest and as to exchange of coupon bonds for registered bonds,
121-11 or vice versa, and exchange of bonds of one denomination for bonds
121-12 of other denominations; be executed in such manner; and be payable
121-13 at such place or places within or outside the state, as the
121-14 resolution provides.
121-15 (e) A resolution authorizing bonds may contain provisions,
121-16 which shall be part of the contract between the authority and the
121-17 purchasers and successive holders of the bonds:
121-18 (1) reserving the right to redeem the bonds at such
121-19 time or times, in such amounts, and at such prices, not exceeding
121-20 105 percent of the principal amount of the bonds plus accrued
121-21 interest, as may be provided in the resolution;
121-22 (2) providing for the setting aside of sinking funds
121-23 or reserve funds and the regulation and disposition of the funds;
121-24 (3) pledging, to secure the payment of the principal
121-25 of and interest on the bonds and of the sinking fund or reserve
121-26 fund payments agreed to be made with respect to the bonds, all or
122-1 any part of the gross or net revenues received by the authority
122-2 with respect to the property, real, personal, or mixed, to be
122-3 acquired or constructed with the bonds or the proceeds of the
122-4 bonds, or all or part of the gross or net revenues received by the
122-5 authority from any source;
122-6 (4) prescribing the purposes to which the bonds or any
122-7 bonds later issued, or the proceeds of the bonds, may be applied;
122-8 (5) agreeing to set and collect rates and charges
122-9 sufficient to produce revenues adequate to pay the items specified
122-10 in Section 254.011(a) and prescribing the use and disposition of
122-11 all revenues;
122-12 (6) prescribing limitations on the issuance of
122-13 additional bonds and on the agreements that may be made with the
122-14 purchasers and successive holders of such bonds;
122-15 (7) relating to the construction, extension,
122-16 improvement, reconstruction, operation, maintenance, and repair of
122-17 the properties of the authority and the carrying of insurance on
122-18 all or any part of the properties covering loss or damage or loss
122-19 of use and occupancy resulting from specified risks;
122-20 (8) fixing the procedure, if any, by which, if the
122-21 authority so desires, the terms of any contract with the holders of
122-22 the bonds may be amended or abrogated, the amount of the bonds
122-23 whose holders must consent to the amendment or abrogation, and the
122-24 manner in which such consent may be given;
122-25 (9) providing for the execution and delivery by the
122-26 authority to a bank or trust company authorized by law to accept
123-1 trusts, or to the United States or any officer or agency of the
123-2 United States, of indentures and agreements for the benefit of the
123-3 holders of the bonds setting forth all of the agreements authorized
123-4 by this chapter to be made with or for the benefit of the holders
123-5 of the bonds and such other provisions as may be customary in such
123-6 indentures or agreements; and
123-7 (10) making such other provisions not inconsistent
123-8 with the provisions of this chapter as the board may approve.
123-9 Sec. 254.014. DEFAULT PROCEDURES. (a) A resolution
123-10 authorizing the issuance of bonds and any indenture or agreement
123-11 entered into pursuant to the resolution may include provisions
123-12 regarding a default on the:
123-13 (1) payment of the interest on any bonds as the
123-14 interest becomes due and payable;
123-15 (2) payment of the principal of any bonds as they
123-16 become due and payable, whether at maturity, by call for
123-17 redemption, or otherwise; or
123-18 (3) performance of an agreement made with the
123-19 purchasers or successive holders of any bonds.
123-20 (b) If a default described by Subsection (a) has occurred
123-21 and has continued for a period, if any, prescribed by the
123-22 resolution authorizing the issuance of the bonds, the trustee under
123-23 the indenture or indentures entered into with respect to the bonds
123-24 authorized by the resolution, or, if there is no indenture, a
123-25 trustee appointed in the manner provided in the resolution by the
123-26 holders of 25 percent in aggregate principal amount of the bonds
124-1 authorized by the resolution and then outstanding, may, and on the
124-2 written request of the holders of 25 percent in aggregate principal
124-3 amount of the bonds authorized by the resolution and then
124-4 outstanding shall, in the trustee's own name but for the equal and
124-5 proportionate benefit of the holders of all of the bonds, and with
124-6 or without having possession of the bonds:
124-7 (1) by mandamus or other suit, action, or proceeding
124-8 at law or in equity, enforce all rights of the holders of the
124-9 bonds;
124-10 (2) bring suit on the bonds or the appurtenant
124-11 coupons;
124-12 (3) by action or suit in equity, require the authority
124-13 to account as if it were the trustee of an express trust for the
124-14 bondholders;
124-15 (4) by action or suit in equity, enjoin any acts or
124-16 things which may be unlawful or in violation of the rights of the
124-17 holders of the bonds; or
124-18 (5) after such notice to the authority as the
124-19 resolution may provide, declare the principal of all the bonds due
124-20 and payable, and if all defaults have been made good, then with the
124-21 written consent of the holders of 25 percent in aggregate principal
124-22 amount of the bonds then outstanding, annul the declaration and its
124-23 consequences; provided, however, that the holders of more than a
124-24 majority in principal amount of the bonds authorized by the
124-25 resolution and then outstanding shall, by written instrument
124-26 delivered to the trustee, have the right to direct and control any
125-1 and all action taken or to be taken by the trustee under this
125-2 section.
125-3 (c) A resolution, indenture, or agreement relating to bonds
125-4 may provide that in a suit, action, or proceeding under this
125-5 section the trustee, whether or not all of the bonds have been
125-6 declared due and payable and with or without possession of any of
125-7 the bonds, shall be entitled as of right to the appointment of a
125-8 receiver who may enter and take possession of all or part of the
125-9 properties of the authority and operate and maintain the properties
125-10 and set, collect, and receive rates and charges sufficient to
125-11 provide revenues adequate to pay the items set forth in Section
125-12 254.011(a) and the costs and disbursements of the suit, action, or
125-13 proceeding and may apply such revenues in conformity with the
125-14 provisions of this chapter and the resolution authorizing the
125-15 bonds.
125-16 (d) In a suit, action, or proceeding by a trustee under this
125-17 section, the reasonable fees, counsel fees, and expenses of the
125-18 trustee and of the receiver or receivers, if any, shall constitute
125-19 taxable disbursements, and all costs and disbursements allowed by
125-20 the court shall be a first charge on any revenues pledged to secure
125-21 the payment of the bonds.
125-22 (e) Subject to the provisions of the constitution, the
125-23 courts of Coleman County shall have jurisdiction of any suit,
125-24 action, or proceeding under this section by a trustee on behalf of
125-25 the bondholders and of all property involved in the suit, action,
125-26 or proceeding.
126-1 (f) In addition to the powers specifically provided by this
126-2 section, the trustee shall have all powers necessary or appropriate
126-3 for the exercise of the powers specifically provided or incident to
126-4 the general representation of the bondholders in the enforcement of
126-5 their rights.
126-6 Sec. 254.015. BOND APPROVAL AND REGISTRATION. (a) Before
126-7 any bonds may be sold by the authority, a certified copy of the
126-8 proceedings for the issuance of the bonds, including the form of
126-9 the bonds, together with any other information that the attorney
126-10 general may require, shall be submitted to the attorney general,
126-11 and if the attorney general finds that the bonds have been issued
126-12 in accordance with law, the attorney general shall approve the
126-13 bonds and execute a certificate to that effect, which shall be
126-14 filed in the office of the comptroller and be recorded in a record
126-15 kept for that purpose. The comptroller shall register the bonds if
126-16 the attorney general has filed with the comptroller the certificate
126-17 approving the bonds and the proceedings for the issuance of the
126-18 bonds as provided in this section. No bonds shall be issued until
126-19 the bonds have been registered by the comptroller.
126-20 (b) Bonds approved by the attorney general, registered by
126-21 the comptroller, and issued in accordance with the proceedings so
126-22 approved are valid and binding obligations of the authority and are
126-23 incontestable for any cause from and after the time of
126-24 registration.
126-25 Sec. 254.016. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued
126-26 by the authority under the provisions of this chapter are
127-1 negotiable instruments within the meaning of the laws of this
127-2 state.
127-3 Sec. 254.017. ADDITIONAL POWERS RELATING TO CONTRACTS,
127-4 RULES, AND REGULATIONS. The authority may, but without intending
127-5 by this provision to limit any powers of the authority as granted
127-6 to it by this chapter, enter into and carry out contracts or
127-7 establish or comply with rules and regulations concerning labor and
127-8 materials and other related matters, in connection with any
127-9 project, as the authority deems desirable or as requested by the
127-10 United States, or any corporation or agency created, designated, or
127-11 established by the United States that may assist in the financing
127-12 of the project.
127-13 Sec. 254.018. CONTRACTS FOR WATER OR SOIL CONSERVATION
127-14 PROJECTS. (a) The authority may enter into contracts with
127-15 individuals, firms, associations, or corporations for the
127-16 construction of water or soil conservation projects on property
127-17 owned or controlled by such individuals, firms, associations, or
127-18 corporations and may use machinery, equipment, or facilities owned
127-19 or controlled by the authority for that purpose. The individual,
127-20 association, firm, or corporation shall pay a reasonable charge to
127-21 the authority for construction carried out under this subsection.
127-22 The authority is not liable for damages to any person or property
127-23 because of projects contracted for and constructed under this
127-24 subsection and is not liable for the maintenance or upkeep of such
127-25 projects.
127-26 (b) The authority may enter into contracts with the
128-1 governing boards of duly constituted governmental agencies within
128-2 or outside the boundaries of the authority for the purpose of
128-3 supervising the construction of water or soil conservation projects
128-4 on property located within the control or within the limits of the
128-5 other governmental agencies. The other governmental agencies shall
128-6 pay to the authority a reasonable charge for construction carried
128-7 out under this subsection. The authority is not liable for damages
128-8 to any person or property because of projects contracted for and
128-9 constructed under this subsection and is not liable for the
128-10 maintenance or upkeep of such projects.
128-11 Sec. 254.019. REDEMPTION OF BONDS. The authority may out of
128-12 any funds available for the purpose purchase bonds issued by it at
128-13 a price not exceeding the redemption price applicable at the time
128-14 of the purchase or, if the bonds are not redeemable, at a price not
128-15 exceeding the principal amount of the bonds plus accrued interest.
128-16 All bonds so purchased shall be canceled and no bonds shall ever be
128-17 issued in lieu of the canceled bonds.
128-18 Sec. 254.020. DISPOSITION OF PROPERTY. (a) Nothing in this
128-19 chapter shall be construed as authorizing the authority, and the
128-20 authority is not authorized, to mortgage or otherwise encumber any
128-21 of its property of any kind, real, personal, or mixed, or any
128-22 interest in property, or to acquire any property or interest
128-23 subject to a mortgage or conditional sale, provided that this
128-24 section shall not be construed as preventing the pledging of the
128-25 revenues of the authority as authorized by this chapter.
128-26 (b) Nothing in this chapter shall be construed as
129-1 authorizing the sale, lease, or other disposition of any property
129-2 or interest by the authority or by any receiver of any of its
129-3 properties or through any court proceeding or otherwise; provided,
129-4 however, that the authority may sell for cash any property or
129-5 interest with an aggregate value not exceeding $50,000 in any one
129-6 year if the board, by the affirmative vote of six of its members,
129-7 has determined that the property or interest is not necessary or
129-8 convenient to the business of the authority and has approved the
129-9 terms of the sale. Except by sale as expressly authorized in this
129-10 section, no such property or interest, except personal property,
129-11 shall ever come into the ownership or control, directly or
129-12 indirectly, of any person, firm, or corporation other than a public
129-13 authority created under the laws of the state.
129-14 (c) All property of the authority except personal property
129-15 shall be at all times exempted from forced sale, and nothing in
129-16 this chapter shall be construed to authorize the sale of any of the
129-17 property of the authority, except personal property, under any
129-18 judgment rendered in any suit, and such sales are prohibited.
129-19 Sec. 254.021. PUBLIC ACCESS. (a) The authority may not
129-20 prohibit the free public use of its lands for recreation purposes
129-21 and for hunting and fishing except as, in the opinion of the board,
129-22 such use would interfere with the proper conduct and maintenance of
129-23 the authority's property.
129-24 (b) All public rights-of-way traversing the areas adjacent
129-25 to the areas to be flooded by the impounded waters shall remain
129-26 open as a way of free public passage to and from the lakes created.
130-1 A charge may be made to the public for the right to engage in
130-2 hunting, fishing, or boating on the lakes.
130-3 (c) If any citizen of the state notifies the attorney
130-4 general that this section has not been complied with, the attorney
130-5 general shall institute the proper legal proceedings to require the
130-6 authority or its successor to comply with the provisions of this
130-7 section.
130-8 (d) If any of the land owned by the authority bordering the
130-9 lakes to be created under the authority of this chapter is sold by
130-10 the authority, the authority shall retain in each tract a strip 20
130-11 feet wide abutting the high-water line of the lake for the purpose
130-12 of passage and use by the public for public sports and amusements;
130-13 provided, however, that this subsection does not apply to any sales
130-14 of land by the authority to any state or federal agency to be used
130-15 for game or fish sanctuaries or preserves or for propagation
130-16 purposes.
130-17 Sec. 254.022. BONDS EXEMPT FROM TAXATION. Bonds and the
130-18 interest on bonds issued under the provisions of this chapter are
130-19 exempt from taxation, except inheritance taxes, by the state or by
130-20 any municipal corporation, county, or other political subdivision
130-21 or taxing district of the state.
130-22 Sec. 254.023. SOURCE OF AUTHORITY. This chapter, without
130-23 reference to other statutory provisions of the state, constitutes
130-24 full authority for the authorization and issuance of bonds under
130-25 this chapter, and no other act or law with regard to the
130-26 authorization or issuance of obligations or the deposit of the
131-1 proceeds of such obligations or in any way impeding or restricting
131-2 the carrying out of the acts authorized by this chapter to be done
131-3 shall be construed as applying to any proceedings taken or acts
131-4 done under this chapter.
131-5 Sec. 254.024. CONSTRUCTION. This chapter and all of its
131-6 terms and provisions shall be liberally construed to effectuate the
131-7 purposes set forth in this chapter.
131-8 CHAPTER 255. COLORADO RIVER MUNICIPAL WATER DISTRICT
131-9 Sec. 255.001. CREATION. A district to be known as the
131-10 "Colorado River Municipal Water District" is created. The district
131-11 is a governmental agency and a body politic and corporate.
131-12 (b) The district is created under and is essential to
131-13 accomplish the purposes of Section 59, Article XVI, Texas
131-14 Constitution.
131-15 Sec. 255.002. DEFINITIONS. In this chapter:
131-16 (1) "Board" means the board of directors of the
131-17 district.
131-18 (2) "Director" means a member of the board.
131-19 (3) "District" means the Colorado River Municipal
131-20 Water District.
131-21 Sec. 255.003. TERRITORY. (a) The district includes all of
131-22 the territory contained within the boundaries of the cities of Big
131-23 Spring, in Howard County, Odessa, in Ector County, and Snyder, in
131-24 Scurry County, on January 1, 1981; provided, however, that no
131-25 defect in the definition of the boundaries of any of those cities
131-26 shall affect the validity of the district or any of its powers or
132-1 duties. All territory within the boundaries of the district will
132-2 benefit from the present and contemplated improvements, works, and
132-3 facilities of the district.
132-4 (b) Territory annexed after January 1, 1981, to any city
132-5 described in Subsection (a) or to any city annexed to the district
132-6 under Section 255.006 may be annexed to the district in the manner
132-7 provided in Subsections (c)-(f).
132-8 (c) At any time after final passage of an ordinance or
132-9 resolution annexing territory to the city, the board may issue a
132-10 notice of hearing on the question of annexing that territory to the
132-11 district. The notice shall be sufficient if it states the date and
132-12 place of the hearing and a description of the area proposed to be
132-13 annexed, but in lieu of that description, the notice may make
132-14 reference to the annexation ordinance or resolution of the city.
132-15 (d) The notice shall be published three times in a newspaper
132-16 with general circulation in the city not less than 30 days before
132-17 the date set for the hearing.
132-18 (e) If, pursuant to the hearing, the board finds that the
132-19 territory proposed to be annexed will benefit from the present or
132-20 contemplated improvements, works, or facilities of the district,
132-21 the board shall adopt a resolution annexing the territory to the
132-22 district.
132-23 (f) After the territory is added to the district, the board
132-24 may call an election for the entire district as enlarged for the
132-25 purpose of determining whether the entire district as enlarged will
132-26 assume any tax-supported bonds of the district then outstanding and
133-1 previously voted but not yet sold and whether an ad valorem tax
133-2 will be levied on all taxable property within the district as
133-3 enlarged for the payment of the bonds. The election shall be
133-4 called and held and notice given in the same manner as elections
133-5 for the issuance of tax-supported bonds under this chapter.
133-6 Sec. 255.004. BOARD OF DIRECTORS. (a) All powers of the
133-7 district shall be exercised by a board of directors. Except as
133-8 provided in this chapter with reference to cities with a population
133-9 of less than 5,000, four of the directors shall be appointed by a
133-10 majority vote of the governing body of each of the cities described
133-11 in Section 255.003 and any city annexed to the district under
133-12 Section 255.006. In May of each year the governing body of each of
133-13 the cities in Section 255.003 shall appoint two directors for the
133-14 two-year term beginning on June 1 of that year. Each director
133-15 serves for the term of office as provided in this section and until
133-16 a successor is appointed and qualified. A person may not be
133-17 appointed a director unless the person resides in and owns taxable
133-18 property in the city from which the person is appointed. A member
133-19 of the governing body or an employee of a city may not be appointed
133-20 a director. Directors shall subscribe the constitutional oath of
133-21 office, and each director shall give bond for the faithful
133-22 performance of the director's duties in the amount of $5,000, the
133-23 cost of which shall be paid by the district. A majority
133-24 constitutes a quorum.
133-25 (b) Each director is entitled to receive a fee of $50 for
133-26 attending each meeting of the board, provided that not more than
134-1 $100 is paid to any director for meetings held in any one calendar
134-2 month. Each director is also entitled to receive $50 per day
134-3 devoted to the business of the district and to reimbursement for
134-4 actual expenses incurred in attending to district business provided
134-5 that the service and expense are expressly approved by the board.
134-6 Sec. 255.005. OFFICERS; EMPLOYEES; SEAL. The board shall
134-7 elect from among its members a president and a vice president of
134-8 the district and such other officers as in the judgment of the
134-9 board are necessary. The president is the chief executive officer
134-10 of the district and the presiding officer of the board and has the
134-11 same right to vote as any other director. The vice president shall
134-12 perform all duties and exercise all powers conferred by this
134-13 chapter on the president when the president is absent or fails or
134-14 declines to act. The board shall also appoint a secretary and a
134-15 treasurer, who may or may not be members of the board, and it may
134-16 combine those offices. The treasurer shall give bond in an amount
134-17 required by the board, but in no event less than $100,000. The
134-18 bond must be conditioned on the treasurer faithfully accounting for
134-19 all money that comes into that officer's custody as treasurer of
134-20 the district. The board shall appoint all necessary engineers,
134-21 attorneys, and other employees. The board shall adopt a seal for
134-22 the district.
134-23 Sec. 255.006. ANNEXATION OF TERRITORY. (a) Other territory
134-24 may be annexed to the district in the manner provided by this
134-25 section.
134-26 (b) A petition seeking annexation must be filed with the
135-1 board. The petition must be signed by 50 or a majority of the
135-2 qualified voters of the territory to be annexed who own taxable
135-3 property in the territory to be annexed and who have duly rendered
135-4 the property to the city or county for taxation. The petition must
135-5 describe the territory to be annexed by metes and bounds or
135-6 otherwise unless the territory is the same as that contained in a
135-7 city or town, in which case it is sufficient to state that the
135-8 territory to be annexed is that contained within the city or town.
135-9 (c) If the board finds that the petition complies with and
135-10 is signed by the number of qualified persons required by Subsection
135-11 (b), that the annexation would be in the interest of the territory
135-12 to be annexed and the district, and that the district will be able
135-13 to supply water to the territory to be annexed, the board shall
135-14 adopt a resolution stating the conditions, if any, under which the
135-15 territory may be annexed and requesting the commission to annex the
135-16 territory to the district. A certified copy of the resolution and
135-17 of the petition must be filed with the commission.
135-18 (d) The commission shall adopt a resolution declaring its
135-19 intention to call an election in the territory to be annexed for
135-20 the purpose of submitting the proposition of whether the territory
135-21 shall be annexed to the district and shall set a time and place
135-22 when and where a hearing will be held by the commission on the
135-23 question of whether the territory to be annexed will benefit from
135-24 the improvements, works, and facilities then owned or operated or
135-25 contemplated to be owned or operated by the district. Railroad
135-26 right-of-way that is not situated within the defined limits of an
136-1 incorporated city or town will not benefit from improvements,
136-2 works, and facilities that the district is authorized to construct.
136-3 No railroad right-of-way may be annexed to the district except a
136-4 right-of-way that is contained within the limits of an incorporated
136-5 city or town annexed to the district.
136-6 (e) Notice of the adoption of the resolution stating the
136-7 time and place of the hearing, addressed to the citizens and owners
136-8 of property in the territory to be annexed, shall be published one
136-9 time in a newspaper designated by the commission at least 10 days
136-10 before the date of the hearing. The notice must describe the
136-11 territory to be annexed in the same manner as required or permitted
136-12 for the petition.
136-13 (f) All interested persons may appear at the hearing and
136-14 offer evidence for or against the intended annexation. The hearing
136-15 may proceed in the order and under rules prescribed by the
136-16 commission and may be recessed from time to time. If, at the
136-17 conclusion of the hearing, the commission finds that all the land
136-18 in the territory to be annexed will benefit from the present or
136-19 contemplated improvements, works, or facilities of the district,
136-20 the commission shall adopt a resolution calling an election in the
136-21 territory to be annexed stating the date of and the place or places
136-22 of holding the election and appointing a presiding judge for each
136-23 voting place, who shall appoint the necessary assistant judges and
136-24 clerks to assist in holding the election.
136-25 (g) Notice of the election, stating the date and places for
136-26 holding the election, the proposition to be voted on, and the
137-1 conditions under which the territory may be annexed, or making
137-2 reference to the resolution of the board for that purpose, shall be
137-3 published one time in a newspaper designated by the commission at
137-4 least 10 days before the day set for the election.
137-5 (h) Only qualified electors who reside in the territory to
137-6 be annexed may vote in the election. Returns of the election
137-7 shall be made to the commission.
137-8 (i) The commission shall canvass the returns of the election
137-9 and adopt a resolution declaring the results. If the resolution
137-10 shows that a majority of the votes cast are in favor of annexation,
137-11 the commission shall enter an order annexing the territory to the
137-12 district, and the annexation shall thereafter be incontestable
137-13 except in the manner and within the time for contesting elections
137-14 under the Election Code. A certified copy of the order shall be
137-15 recorded in the deed records of the county in which the territory
137-16 is situated.
137-17 (j) In calling the election on the proposition for
137-18 annexation of territory, the commission may include as a part of
137-19 the same proposition a proposition for the:
137-20 (1) assumption of that territory's part of the
137-21 tax-supported bonds of the district then outstanding and those
137-22 voted but not yet sold; and
137-23 (2) levy of an ad valorem tax on taxable property in
137-24 the territory to be annexed along with the tax in the rest of the
137-25 district for the payment of the bonds.
137-26 (k) After territory is added to the district, the board may
138-1 call an election over the entire district for the purpose of
138-2 determining whether the entire district as enlarged shall assume
138-3 the tax-supported bonds then outstanding and those voted but not
138-4 yet sold and whether an ad valorem tax shall be levied on all
138-5 taxable property within the district as enlarged for the payment of
138-6 the bonds, unless such proposition is voted along with the
138-7 annexation election and becomes lawfully binding on the territory
138-8 annexed. The election shall be called and held in the same manner
138-9 as elections for the issuance of bonds as provided in this chapter.
138-10 (l) If no newspaper is published in the territory to be
138-11 annexed, the notices shall be posted in three public places in that
138-12 territory.
138-13 Sec. 255.007. APPOINTMENT OF DIRECTORS BY CITIES IN ANNEXED
138-14 TERRITORY. (a) If the territory of a city with a population of
138-15 more than 5,000 is annexed to the district, the governing body of
138-16 the city shall appoint two directors for the term ending the
138-17 following May 31 and two directors for the term ending one year
138-18 after the following May 31 and in May of each year shall appoint
138-19 two directors for a two-year term as provided in this chapter for
138-20 cities included in the district at the time of the creation of the
138-21 district.
138-22 (b) If the territory of a city with a population of 5,000 or
138-23 less is annexed to the district, the governing body of the city
138-24 shall appoint one director whose term expires one year after the
138-25 following May 31, one director for the term ending one year after
138-26 the following May 31, and in May of each year shall appoint one
139-1 director for a two-year term.
139-2 (c) If the population of a city that was subject to
139-3 Subsection (b) at the time of its annexation later has a population
139-4 that exceeds 5,000, the city shall be entitled to four directors to
139-5 be appointed as provided in Subsection (a).
139-6 Sec. 255.008. AUTHORITY TO IMPOUND AND TRANSPORT WATER; PLAN
139-7 APPROVAL BY COMMISSION. The district may impound the storm waters
139-8 and floodwaters and the unappropriated flow of the Colorado River
139-9 and its tributaries by the construction of a dam or dams across the
139-10 river and tributaries or otherwise by complying with the applicable
139-11 provisions of this code and may develop or otherwise acquire
139-12 underground sources of water. The district may construct or
139-13 otherwise acquire all works, plants, and other facilities necessary
139-14 or useful for the purpose of processing such water and transporting
139-15 it to cities and others for municipal and domestic industrial
139-16 purposes. No dam or other works for the impounding of water from
139-17 the river may be constructed until the plan for that purpose is
139-18 approved by the commission.
139-19 Sec. 255.009. ADDITIONAL POWERS. (a) The district may
139-20 construct, finance, or otherwise provide any kind or type of water
139-21 pollution control facilities, waste disposal facilities, or air
139-22 pollution control facilities at any place or places within the area
139-23 of the watershed (river basin) of the Colorado River that lies west
139-24 of the east boundary line of Coleman County and at any place or
139-25 places in Reeves, Loving, Culberson, Ector, Ward, and Winkler
139-26 counties. Within that area, the district also may exercise all
140-1 powers granted to a district or a river authority operating under
140-2 Section 59, Article XVI, Texas Constitution, Chapter 383, Health
140-3 and Safety Code, Chapter 30, and any other general law relating to
140-4 those specific powers and facilities. If the district creates a
140-5 nonprofit corporation to act on its behalf under the Development
140-6 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
140-7 Statutes), the corporation may exercise any of its powers with
140-8 respect to projects within the area described in this subsection.
140-9 (b) As used in this section, "person" means any individual,
140-10 partnership, corporation, or other private entity and any public
140-11 agency, including an authority, district, city, town, or other
140-12 political subdivision, joint board, or other public agency created
140-13 and operating under the laws of this state. The district and all
140-14 persons may contract, on terms and conditions on which the parties
140-15 may agree, with respect to any power, function, or duty of the
140-16 district, including those additionally granted in this section, and
140-17 the district and all persons may execute appropriate documents and
140-18 instruments in connection with the contracts. The district may
140-19 issue bonds, in the manner provided in Section 255.013, with
140-20 respect to any of its powers, including the powers granted in this
140-21 section, and for the purpose of providing funds to enable the
140-22 district to pay for the costs of engineering design and studies,
140-23 surveying, title research, appraisals, options on real or personal
140-24 property, and other related activities in connection with planning
140-25 and implementing proposed projects or improvements and also for the
140-26 purpose of providing funds to operate and maintain any facilities.
141-1 The district may invest any of its funds, including bond proceeds,
141-2 in any manner or securities as determined by the board.
141-3 (c) Notwithstanding any other provisions of this chapter,
141-4 and in addition to all other powers granted by this chapter or by
141-5 any other provision of law, the district may:
141-6 (1) enter into loan agreements, leases, or installment
141-7 sales agreements; and
141-8 (2) acquire, purchase, construct, own, operate,
141-9 maintain, repair, improve, or extend, and loan, lease, sell, or
141-10 otherwise dispose of, on terms and conditions, including loan
141-11 payments, rentals, sale price, or installment sale payments, as the
141-12 parties may agree, at any place or location within the area
141-13 described in Subsection (a), or at any other place or location
141-14 outside the area with respect to facilities that are designed
141-15 primarily to serve inhabitants within that area, all works,
141-16 improvements, facilities, plants, buildings, structures, equipment,
141-17 and appliances, real and personal property or any interest in real
141-18 or personal property, and all money or bond proceeds that are
141-19 incident, helpful, or necessary:
141-20 (A) to provide for the control, storage,
141-21 preservation, transmission, treatment, distribution, and use of
141-22 storm water, floodwater, and the water of rivers and streams for
141-23 municipal, domestic, electric energy or power, industrial,
141-24 irrigation, oil flooding, mining, recreation, agricultural,
141-25 commercial, and all other beneficial uses and purposes;
141-26 (B) to collect, transport, process, treat,
142-1 dispose of, and control waste, including municipal, domestic,
142-2 industrial, agricultural, recreational, and other waste, whether in
142-3 fluid, solid, or composite state and to control, abate, or reduce
142-4 all types of pollution, including air pollution and water
142-5 pollution;
142-6 (C) to reclaim and provide drainage and drainage
142-7 systems for land;
142-8 (D) to establish or otherwise provide for public
142-9 parks and recreation facilities; or
142-10 (E) to facilitate the carrying out of any power,
142-11 duty, or function of the district.
142-12 (d) The district is considered a district and constitutes a
142-13 river authority under Chapter 383, Health and Safety Code, and
142-14 Chapter 30, and those chapters are applicable to the district,
142-15 except to the extent of any conflict with this chapter, in which
142-16 case this chapter prevails over the provisions of Chapter 383,
142-17 Health and Safety Code, and Chapter 30.
142-18 (e) Any person may contract with the district in any manner
142-19 authorized by this chapter, Chapter 383, Health and Safety Code, or
142-20 Chapter 30 with respect to water, waste, pollution control, or any
142-21 other facilities or services provided by the district. A public
142-22 agency additionally may enter into and execute a contract with the
142-23 district and may determine, agree, and pledge that all or any part
142-24 of its payments under the contract shall be payable from the source
142-25 described in Section 30.030(c), subject only to the authorization
142-26 of the contract, pledge, and payments by a two-thirds vote of the
143-1 governing body of the public agency. Public agencies may use and
143-2 pledge any other available revenues or resources for the payment of
143-3 amounts due under the contracts, as an additional source or sources
143-4 of payment or as the sole source or sources of payment, and may
143-5 covenant with respect to those revenues to assure the availability
143-6 of the revenues when required. If bonds issued by the district
143-7 recite that they are secured by a pledge of revenues from any
143-8 contract, a copy of the contract and the proceedings relating to
143-9 the contract shall be submitted to the attorney general along with
143-10 the bonds that must be submitted under Section 255.013. If the
143-11 attorney general finds that the bonds are authorized and the
143-12 contract has been made and entered into in accordance with law, the
143-13 attorney general shall approve the bonds and the contract. After
143-14 approval, the bonds and the contract are incontestable in any court
143-15 or other forum for any reason and are valid and binding in
143-16 accordance with their terms and provisions for all purposes.
143-17 (f) Each public agency:
143-18 (1) may set, charge, and collect fees, rates, charges,
143-19 rentals, and other amounts for services or facilities provided by a
143-20 utility operated by the agency, or provided under or in connection
143-21 with a contract with the district, from its inhabitants or from
143-22 users or beneficiaries of the utility, services, or facilities,
143-23 including specifically water charges, sewage charges, waste
143-24 disposal system fees and charges, including garbage collection or
143-25 handling fees, and other fees or charges;
143-26 (2) may use and pledge those amounts to make payments
144-1 to the district that are required under the contract;
144-2 (3) may covenant to do so in amounts sufficient to
144-3 make all or any part of those payments to the district when due;
144-4 and
144-5 (4) if the parties agree in the contract, shall have
144-6 the payments constitute an expense of operation of any facilities
144-7 or utility operated by the public agency provided that an agreement
144-8 may not be made that would violate the United States Constitution
144-9 or the Texas Constitution.
144-10 (g) This section is wholly sufficient authority for the
144-11 exercise of the powers, the issuance of bonds, the execution of
144-12 contracts, and the performance of the other acts and procedures
144-13 authorized in this section, by the district and all persons,
144-14 including specifically public agencies, without reference to any
144-15 other law, or restrictions or limitations contained in any other
144-16 law, except as specifically provided in this section. To the
144-17 extent of any conflict or inconsistency between this section and
144-18 any other law, including a home-rule city charter, this section
144-19 shall prevail and control; provided, however, that the district and
144-20 all persons, including public agencies, may use any other law not
144-21 in conflict with this section to the extent convenient or necessary
144-22 to carry out any power or authority, express or implied, granted by
144-23 this section.
144-24 (h) This section does not compel any person, including any
144-25 public agency, to secure water, sewer service, or any other
144-26 service from the district, except under contracts voluntarily
145-1 executed.
145-2 Sec. 255.010. CONTROL OF POLLUTION AND SALTWATER. The
145-3 district may:
145-4 (1) provide for the study, correction, prevention, and
145-5 control of both artificial and natural pollution of the Colorado
145-6 River and its tributaries, upstream from the north boundary line of
145-7 Coke County, Texas, and adopt and promulgate all reasonable
145-8 regulations with regard to such pollution, both artificial and
145-9 natural, to secure, maintain, and preserve the purity, usefulness,
145-10 and sanitary condition of the water in and to flow into the
145-11 Colorado River and its tributaries;
145-12 (2) eliminate oil field brine pollution of the
145-13 Colorado River and its tributaries, upstream from the north
145-14 boundary line of Coke County, Texas, by capping and plugging
145-15 abandoned oil wells, covering saltwater pits with earth,
145-16 constructing channel dams to collect polluted low flows of the
145-17 Colorado River and its tributaries, developing saltwater disposal
145-18 wells, and by other practical means of eliminating oil field brine
145-19 pollution of the Colorado River and its tributaries; and
145-20 (3) develop, drill for, or otherwise acquire sources
145-21 of underground and surface saltwater and sell salt well water,
145-22 saltwater collected by channel dams, fresh water from the
145-23 district's reservoirs and wells, and commingled saltwater and fresh
145-24 water for mining, oil field flooding and repressuring, industrial,
145-25 manufacturing, or other purposes.
145-26 Sec. 255.011. EMINENT DOMAIN. For the purpose of carrying
146-1 out any power or authority conferred by this chapter the district
146-2 may acquire land and easements within and outside the district,
146-3 including land above the probable high-water line around the
146-4 reservoirs, by condemnation in the manner provided by Chapter 21,
146-5 Property Code. The amount of and character of interest in land and
146-6 easements thus to be acquired shall be determined by the board.
146-7 Sec. 255.012. CONTRACTS; BIDDING. A construction contract
146-8 for the purchase of material, equipment, or supplies requiring an
146-9 expenditure of more than $25,000 may be made only after publication
146-10 of a notice to bidders once each week for two weeks before the
146-11 contract is awarded. The notice is sufficient if it states the
146-12 time and place when and where the bids will be opened and the
146-13 general nature of the work to be done or the material, equipment,
146-14 or supplies to be purchased and states where and the terms on which
146-15 copies of the plans and specifications may be obtained. The
146-16 publication shall be in a newspaper published in the district and
146-17 designated by the board.
146-18 Sec. 255.013. ISSUANCE OF BONDS. (a) For the purpose of
146-19 providing a source of water supply for cities and other users for
146-20 municipal, domestic, and industrial purposes as authorized by this
146-21 chapter and for the purpose of carrying out any other power or
146-22 authority conferred by this chapter, the district may issue
146-23 negotiable bonds to be payable from such revenues of the district
146-24 as are pledged by resolution of the board.
146-25 (b) Bonds must be authorized by resolution of the board and
146-26 must be issued in the name of the district, signed by the president
147-1 or vice president, and attested by the secretary and must have the
147-2 seal of the district impressed on them. The bonds must mature
147-3 serially or otherwise in not to exceed 40 years and may be sold at
147-4 a price and under terms determined by the board to be the most
147-5 advantageous reasonably obtainable, provided that the interest cost
147-6 to the district, calculated by use of standard bond interest tables
147-7 currently in use by insurance companies and investment houses, does
147-8 not exceed six percent per year. Within the discretion of the
147-9 board, bonds may be made callable prior to maturity at such times
147-10 and prices as may be prescribed in the resolution authorizing the
147-11 bonds and may be made registrable as to principal or as to both
147-12 principal and interest.
147-13 (c) Bonds may be issued in more than one series and from
147-14 time to time as required for carrying out the purposes of this
147-15 chapter.
147-16 (d) Bonds may be secured by a pledge of all or part of the
147-17 net revenues of the district, of the net revenues of any one or
147-18 more contracts made before or after the bonds are issued, or of
147-19 other revenues specified by resolution of the board. Any such
147-20 pledge may reserve the right, under conditions specified in the
147-21 pledge resolution, to issue additional bonds which will be on a
147-22 parity with or subordinate to the bonds being issued. The term
147-23 "net revenues" means the gross revenues of the district after
147-24 deduction of the amount necessary to pay the cost of maintaining
147-25 and operating the district and its properties.
147-26 (e) For the purposes stated in Subsection (a), the district
148-1 may issue bonds payable from ad valorem taxes to be levied on all
148-2 taxable property in the district or issue bonds secured both by and
148-3 payable from such taxes and the revenues of the district. If bonds
148-4 are issued payable wholly or partially from ad valorem taxes, the
148-5 board shall levy a tax sufficient to pay the bonds and the interest
148-6 on the bonds as the bonds and interest become due, but the rate of
148-7 the tax for any year may be set after giving consideration to the
148-8 money received from the pledged revenues that may be available for
148-9 payment of principal and interest to the extent and in the manner
148-10 permitted by the resolution authorizing the issuance of the bonds.
148-11 (f) If bonds payable wholly from revenues are issued, the
148-12 board shall set, and from time to time revise, rates of
148-13 compensation for water sold and services rendered by the district
148-14 that will be sufficient to pay the expense of operating and
148-15 maintaining the facilities of the district and to pay bonds as they
148-16 mature and the interest as it accrues and to maintain the reserve
148-17 and other funds as provided in the resolution authorizing the
148-18 bonds. If bonds payable partially from revenues are issued, the
148-19 board shall set, and from time to time revise, rates of
148-20 compensation for water sold and services rendered by the district
148-21 that will be sufficient to assure compliance with the resolution
148-22 authorizing the bonds.
148-23 (g) The district may set aside from the proceeds from the
148-24 sale of the bonds an amount for the payment of interest expected to
148-25 accrue during construction and for a reserve interest and sinking
148-26 fund, and such provision may be made in the resolution authorizing
149-1 the bonds. Proceeds from the sale of the bonds may also be used
149-2 for the payment of all expenses necessarily incurred in
149-3 accomplishing the purposes for which the district is created.
149-4 (h) In the event of a default or a threatened default in the
149-5 payment of principal of or interest on bonds payable wholly or
149-6 partially from revenues of the district, any court of competent
149-7 jurisdiction may, on petition of the holders of 25 percent of the
149-8 outstanding bonds of the issue in default or threatened with
149-9 default, appoint a receiver with authority to collect and receive
149-10 all income of the district except taxes, employ and discharge
149-11 agents and employees of the district, take charge of the district's
149-12 funds on hand except funds received from taxes, unless commingled,
149-13 and manage the proprietary affairs of the district without consent
149-14 or hindrance by the directors. The receiver may also be authorized
149-15 to sell or make contracts for the sale of water or renew such
149-16 contracts with the approval of the court appointing the receiver.
149-17 The court may vest the receiver with other powers and duties the
149-18 court finds necessary for the protection of the holders of the
149-19 bonds.
149-20 Sec. 255.014. REFUNDING BONDS. (a) The district may issue
149-21 refunding bonds for the purpose of refunding any outstanding bonds
149-22 authorized by this chapter and interest on the bonds. Refunding
149-23 bonds may be issued to refund more than one series of outstanding
149-24 bonds and may combine the pledges for the outstanding bonds for the
149-25 security of the refunding bonds, and refunding bonds may be secured
149-26 by other or additional revenues.
150-1 (b) The provisions of this chapter with reference to the
150-2 issuance of other bonds, their approval by the attorney general,
150-3 and the remedies of the holders shall be applicable to refunding
150-4 bonds. Refunding bonds shall be registered by the comptroller on
150-5 surrender and cancellation of the bonds to be refunded, but in lieu
150-6 thereof, the resolution authorizing the issuance of the refunding
150-7 bonds may provide that the refunding bonds shall be sold and the
150-8 proceeds of the sale deposited in the bank where the original bonds
150-9 are payable, in which case the refunding bonds may be issued in an
150-10 amount sufficient to pay the interest on the original bonds to
150-11 their option date or maturity date, and the comptroller shall
150-12 register the refunding bonds without concurrent surrender and
150-13 cancellation of the original bonds.
150-14 Sec. 255.015. DEED OF TRUST LIEN. Any bonds, including
150-15 refunding bonds, authorized by this chapter that are not payable
150-16 wholly from ad valorem taxes may be additionally secured by a deed
150-17 of trust lien upon physical properties of the district and all
150-18 franchises, easements, water rights and appropriation permits,
150-19 leases, and contracts, and all rights appurtenant to such
150-20 properties, vesting in the trustee power to sell the properties for
150-21 payment of the indebtedness, power to operate the properties, and
150-22 all other powers and authority for the further security of the
150-23 bonds. The deed of trust may contain any provisions prescribed by
150-24 the board for the security of the bonds and the preservation of the
150-25 trust estate and may make provision for amendment or modification
150-26 thereof and the issuance of bonds to replace lost or mutilated
151-1 bonds. A purchaser under a sale under a deed of trust shall be the
151-2 owner of the dam or dams and the other properties and facilities
151-3 purchased and shall have the right to maintain and operate such
151-4 dams, properties, or facilities.
151-5 Sec. 255.016. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION.
151-6 (a) No bonds payable wholly or partially from ad valorem taxes,
151-7 except refunding bonds, may be issued unless the issuance is
151-8 authorized by an election at which only the qualified voters who
151-9 reside in the district may vote and a majority of the votes cast in
151-10 each city contained in the district is in favor of the issuance of
151-11 the bonds. Bonds not payable wholly or partially from ad valorem
151-12 taxes may be issued without an election.
151-13 (b) An election for the authorization of bonds may be called
151-14 by the board without a petition. The resolution calling the
151-15 election must specify the time and places of holding the election,
151-16 the purpose for which the bonds are to be issued, the maximum
151-17 amount of the bonds, the maximum maturity of the bonds, the form of
151-18 the ballot, and the presiding judge for each voting place. The
151-19 presiding judge serving at each voting place shall appoint one
151-20 assistant judge and at least two clerks to assist in holding the
151-21 election. Notice of the election shall be given by publishing a
151-22 substantial copy of the notice in one newspaper published in each
151-23 city contained in the district for two consecutive weeks. The
151-24 first publication must be at least 21 days prior to the date of the
151-25 election. In any city in which no newspaper is published, notice
151-26 must be given by posting a copy of the resolution in three public
152-1 places.
152-2 (c) The returns of the election shall be made to and
152-3 canvassed by the board.
152-4 (d) Elections held under this section are governed by the
152-5 Election Code except as otherwise provided in this chapter.
152-6 Sec. 255.017. EXAMINATION BY ATTORNEY GENERAL. After bonds
152-7 are authorized by the district, the bonds and the record relating
152-8 to their issuance shall be submitted to the attorney general for
152-9 examination as to the validity of the bonds. If the bonds recite
152-10 that they are secured by a pledge of the proceeds of a contract
152-11 previously made between the district and a city or other
152-12 governmental agency or district, a copy of the contract and the
152-13 proceedings of the city or other governmental agency or district
152-14 authorizing the contract shall be submitted to the attorney
152-15 general. If the bonds have been authorized and if any such
152-16 contract has been made in accordance with the constitution and laws
152-17 of the state, the attorney general shall approve the bonds and such
152-18 contracts and the bonds then shall be registered by the
152-19 comptroller. After approval and registration, the bonds and the
152-20 contracts, if any, are valid and binding and are incontestable for
152-21 any cause.
152-22 Sec. 255.018. CONTRACTS WITH CITIES AND OTHERS. The
152-23 district may enter into contracts with cities and others for
152-24 supplying water to them. The district may contract with a city for
152-25 the rental or leasing of, or for the operation of, the water
152-26 production, water supply, and water supply facilities of the city
153-1 for such consideration as the district and the city may agree. The
153-2 contract may be on such terms and for such time as the parties
153-3 agree and may provide that the contract shall continue in effect
153-4 until bonds specified in the contract and refunding bonds issued in
153-5 lieu of such bonds are paid.
153-6 Sec. 255.019. DISTRICT DEPOSITORY. (a) The board shall
153-7 designate one or more banks within the district to serve as
153-8 depository for the funds of the district. All funds of the
153-9 district shall be deposited in the depository bank or banks, except
153-10 that funds pledged to pay bonds may be deposited with the trustee
153-11 bank named in the trust agreement and except that funds shall be
153-12 remitted to the bank of payment for the payment of principal of and
153-13 interest on bonds. To the extent that funds in the depository
153-14 banks and the trustee bank are not insured by the Federal Deposit
153-15 Insurance Corporation, the funds shall be secured in the manner
153-16 provided by law for the security of county funds.
153-17 (b) Before designating a depository bank or banks, the board
153-18 shall issue a notice stating the time and place when and where the
153-19 board will meet for such purpose and inviting the banks in the
153-20 district to submit applications to be designated depositories. The
153-21 notice must be published one time in a newspaper published in the
153-22 district and specified by the board. The term of service for
153-23 depositories shall be prescribed by the board.
153-24 (c) At the time specified in the notice, the board shall
153-25 consider the applications and the management and condition of the
153-26 banks filing them and shall designate as depositories the bank or
154-1 banks that offer the most favorable terms and conditions for the
154-2 handling of the funds of the district and that the board finds have
154-3 proper management and are in condition to warrant handling of
154-4 district funds. Membership on the board of an officer or director
154-5 of a bank does not disqualify that bank from being designated as
154-6 depository.
154-7 (d) If no applications are received by the time stated in
154-8 the notice, the board shall designate a bank or banks within or
154-9 outside the district on terms and conditions it determines
154-10 advantageous to the district.
154-11 Sec. 255.020. WATER APPROPRIATION PERMITS; PURCHASE OF
154-12 WATER. The district may acquire water appropriation permits
154-13 directly from the commission or from owners of permits. The
154-14 district may purchase water or a water supply from any person,
154-15 firm, corporation or public agency.
154-16 Sec. 255.021. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
154-17 DEPOSITS. All bonds of the district are legal and authorized
154-18 investments for banks, savings banks, trust companies, building and
154-19 loan associations, savings and loan associations, insurance
154-20 companies, fiduciaries, trustees, and guardians and for the sinking
154-21 funds of cities, towns, villages, counties, school districts, or
154-22 other political corporations or subdivisions of the state. Such
154-23 bonds are eligible to secure the deposit of all public funds of the
154-24 state and all public funds of cities, towns, villages, counties,
154-25 school districts, or other political corporations or subdivisions
154-26 of the state; and the bonds are lawful and sufficient security for
155-1 the deposits to the extent of their value when the bonds are
155-2 accompanied by all unmatured coupons.
155-3 Sec. 255.022. BONDS EXEMPT FROM TAXATION. The
155-4 accomplishment of the purposes stated in this chapter is for the
155-5 benefit of the people of this state and for the improvement of
155-6 their properties and industries, and the district in carrying out
155-7 the purposes of this chapter will be performing an essential public
155-8 function under Section 59, Article XVI, Texas Constitution, and
155-9 shall not be required to pay any tax or assessment on the project
155-10 or any part of the project, and the bonds issued under this chapter
155-11 and the transfer of and income from the bonds, including the
155-12 profits made on the sale of the bonds, shall at all times be free
155-13 from taxation within this state.
155-14 Sec. 255.023. TAX ROLLS. (a) The tax rolls of the cities
155-15 in the district as created and in annexed territory shall
155-16 constitute the tax rolls of the district until assessments and tax
155-17 rolls are made by the district.
155-18 (b) Before the sale and delivery of district bonds that are
155-19 payable wholly or partially from ad valorem taxes, the board shall
155-20 appoint a tax assessor and collector and a board of equalization
155-21 and shall cause taxes to be assessed, valuations to be equalized,
155-22 and tax rolls to be prepared. General laws applicable to water
155-23 control and improvement districts with reference to tax assessors
155-24 and collectors, boards of equalization, tax rolls, and the levy and
155-25 collection of taxes and delinquent taxes shall be applicable to the
155-26 district, except that the board of equalization, to be appointed
156-1 each year by the board, shall consist of one member residing in
156-2 each city in the district.
156-3 Sec. 255.024. ADOPTION OF RULES AND REGULATIONS. (a) The
156-4 board may adopt and promulgate all reasonable rules and regulations
156-5 to secure, maintain, and preserve the sanitary condition of all
156-6 water in and to flow into any reservoir owned by the district, to
156-7 prevent the waste or the unauthorized use of water, and to regulate
156-8 residence, hunting, fishing, boating, and camping, and all
156-9 recreational and business privileges, along or around any such
156-10 reservoir and the Colorado River and its tributaries or any body of
156-11 land or easement owned or controlled by the district. The board
156-12 may make contracts with responsible persons for the construction
156-13 and operation of toll bridges over the district's water or for
156-14 ferry service on or over the district's water, for periods not to
156-15 exceed 20 years in the case of a bridge and not to exceed 10 years
156-16 in the case of a ferry, setting the compensation to be charged for
156-17 service by any such facility so that the charges are reasonable and
156-18 requiring adequate bond or bonds from the contracting person,
156-19 association, or corporation, payable to the district, of such
156-20 amount and conditioned as the board determines appropriate. The
156-21 contracts may provide for forfeiture of the particular franchise in
156-22 case of a failure of the licensee to render adequate public
156-23 service.
156-24 (b) The district may prescribe reasonable penalties for the
156-25 breach of a rule or regulation of the district, which penalties
156-26 shall not exceed a fine of more than $200 or imprisonment for not
157-1 more than 30 days, or both a fine and imprisonment. The penalties
157-2 are in addition to any other penalties provided by the laws of the
157-3 state and may be enforced by complaints filed in the appropriate
157-4 court of jurisdiction. A rule or regulation that provides a
157-5 penalty for the violation of a rule or regulation is not effective
157-6 or enforceable unless the district has published a substantive
157-7 statement of the particular rule or regulation and the penalty for
157-8 its violation once a week for two consecutive weeks in Scurry and
157-9 Borden counties. The substantive statement must be as condensed as
157-10 possible to afford sufficient notice of the act forbidden by the
157-11 rule or regulation. A single notice may embrace a number of
157-12 regulations. The notice must state that breach of the regulation
157-13 or regulations will subject the violator to a penalty and that the
157-14 full text of the rule or regulation is on file in the principal
157-15 office of the district, where it may be read by an interested
157-16 person. Five days after the second publication of the required
157-17 notice, the rule or regulation shall be in effect, and ignorance of
157-18 the rule or regulation does not constitute a defense to a
157-19 prosecution for the enforcement of a penalty. The court shall take
157-20 judicial notice of rules and regulations authorized by this
157-21 subsection, and the rules and regulations shall be considered
157-22 similar in nature to a valid penal ordinance of a city.
157-23 (c) The district may employ and constitute its own peace
157-24 officers, and any such officer or any county peace officer may make
157-25 arrests when necessary to prevent or stop the commission of any
157-26 offense against the regulations of the district, or against the
158-1 laws of the state, when the offense, or threatened offense, occurs
158-2 on any land, water, or easement owned or controlled by the district
158-3 or may make an arrest at any place if an offense involves injury or
158-4 detriment to any property owned or controlled by the district.
158-5 Sec. 255.025. PARKS AND RECREATION. The district may
158-6 establish or otherwise provide for public parks and recreation
158-7 facilities and may acquire land adjacent to any of its reservoirs
158-8 for such purposes; provided, however, that no money received from
158-9 taxation or from bonds payable wholly or partially from taxation
158-10 may be used for such purpose.
158-11 CHAPTER 256. DALLAS COUNTY UTILITY AND RECLAMATION DISTRICT
158-12 Sec. 256.001. CREATION. (a) A conservation, utility, and
158-13 reclamation district to be known as the "Dallas County Utility and
158-14 Reclamation District" is created. The district is a governmental
158-15 agency and a body politic and corporate.
158-16 (b) The district is created under and is essential to
158-17 accomplish the purposes of Section 59, Article XVI, Texas
158-18 Constitution.
158-19 Sec. 256.002. DEFINITIONS. In this chapter:
158-20 (1) "Board" means the board of directors of the
158-21 district.
158-22 (2) "Director" means a member of the board.
158-23 (3) "District" means the Dallas County Utility and
158-24 Reclamation District.
158-25 Sec. 256.003. TERRITORY. (a) The district includes all
158-26 property situated within the boundaries of the district as
159-1 redefined, described, and filed of record in Volume 72226, page
159-2 0508, of the Deed Records of Dallas County and includes areas
159-3 annexed to the district, regardless of the date of such annexation,
159-4 and filed of record in such deed records. It is found and
159-5 determined that the boundaries and field notes of the district form
159-6 a closure. If a mistake is made in copying the field notes on file
159-7 in such records or in field notes filed pursuant to annexation, the
159-8 mistake does not affect the organization, existence, and validity
159-9 of the district or the right to issue bonds voted in the district
159-10 or the right to assess, levy, and collect taxes or its operations,
159-11 projects, or activities.
159-12 (b) The legislature finds and determines that all property
159-13 situated within the boundaries of the district has been, is, and
159-14 will be benefited by the district, by the provisions of this
159-15 chapter, and by the projects and properties permitted by this
159-16 chapter and by prior applicable law.
159-17 (c) All bonds, contracts, and other obligations issued,
159-18 executed, or incurred by the district before February 1, 1984, to
159-19 the extent not satisfied or paid, constitute lawful obligations of
159-20 the district in accordance with their respective terms.
159-21 Sec. 256.004. POWERS AND DUTIES. (a) The district may
159-22 exercise all of the rights, powers, privileges, authorities, and
159-23 functions conferred and imposed by the general laws of this state
159-24 applicable to districts created under the authority of Section 59,
159-25 Article XVI, Texas Constitution, including without limitation those
159-26 conferred by Chapters 49 and 54; provided, however, that the
160-1 district shall obtain specific written approval in the form of a
160-2 resolution of the city council of the City of Irving as a condition
160-3 precedent to the issuance of bonds for fire-fighting purposes or to
160-4 engage in fire-fighting activities. All general laws not in
160-5 conflict with or inconsistent with the provisions of this chapter
160-6 are adopted and incorporated in this chapter by reference with the
160-7 same effect as if copied in full in this chapter. If any provision
160-8 of general law conflicts with or is inconsistent with the
160-9 provisions of this chapter, the provisions of this chapter prevail.
160-10 (b) Subject to the provisions of Subsection (c), the powers
160-11 of the district include the power to purchase, construct, acquire,
160-12 own, operate, maintain, repair, and improve within its boundaries
160-13 any works, improvements, facilities, plants, equipment, appliances,
160-14 vehicles, and other equipment incident, helpful, or necessary to
160-15 provide a land-based transportation system within the district, but
160-16 not within the city of Irving streets and roadway system, capable
160-17 of transporting people and personal property across and along the
160-18 lakes, waterways, watercourses, and lands within and to the
160-19 boundaries of the district. The legislature finds and determines
160-20 that the exercise of this power and the development and furnishing
160-21 of transportation projects under this subsection are necessary,
160-22 appropriate, and desirable in the conservation and development of
160-23 the state's natural resources, including the waters, lands, and
160-24 projects within the district, in order to fully develop those
160-25 purposes.
160-26 (c) The powers granted in Subsection (b) are subject to the
161-1 provisions of this subsection. The district may not issue any
161-2 bonds that are payable in whole or in part from ad valorem taxes
161-3 and that are issued for the purposes authorized in Subsection (b)
161-4 unless the district has obtained a final judgment of a court having
161-5 jurisdiction under Chapter 1205, Government Code, or under other
161-6 appropriate and applicable rules or statutes, and the judgment
161-7 holds in substance, in the opinion of the attorney general, that
161-8 the issuance of tax bonds for the purposes described in Subsection
161-9 (b) will be for purposes authorized by Section 59, Article XVI,
161-10 Texas Constitution. The provisions of this subsection do not apply
161-11 to revenue bonds that are not payable in any part from ad valorem
161-12 taxes levied within the district. The district has the authority,
161-13 without reference to the requirements of this subsection, to issue
161-14 bonds payable solely from contracts or other revenues entered into
161-15 or collected for the purposes described in Subsection (b) and to
161-16 pay the costs of operation of a land-based transportation system
161-17 from funds other than ad valorem taxes.
161-18 (d) The district may sell potable water to retail or
161-19 wholesale customers if the governing body of the City of Irving
161-20 gives its written consent.
161-21 Sec. 256.005. ROADS AND TURNPIKES. (a) The district may
161-22 provide for the construction, maintenance, and operation of
161-23 macadamized, graveled, or paved roads and turnpikes, or works,
161-24 facilities, or improvements in aid of such roads or turnpikes,
161-25 within or outside the boundaries of the district, to the fullest
161-26 extent authorized and contemplated by the provisions of Section 52,
162-1 Article III, Texas Constitution, and, subject to the provisions of
162-2 this chapter, may issue, sell, and deliver bonds, notes, or other
162-3 obligations of the district for such purposes; provided, however,
162-4 that without the consent and approval of the City of Irving, the
162-5 district shall not undertake to construct, maintain, operate,
162-6 repair, reconstruct, cross, intersect, or connect with any public
162-7 streets or roads of the City of Irving;
162-8 (b) The board may expend funds, borrow money, issue bonds,
162-9 issue bond anticipation notes and tax anticipation notes, levy and
162-10 collect maintenance taxes, and carry out all acts and have all
162-11 power and authority authorized by Section 52, Article III, Texas
162-12 Constitution; provided, however, that bonds may not be issued by
162-13 the district for the purposes described in this section unless
162-14 authorized by an election at which a two-thirds majority of the
162-15 resident, qualified electors of the district vote in favor of the
162-16 issuance of the bonds; and provided further, that bonds, notes, or
162-17 other obligations of the district issued or incurred for the
162-18 purposes described in this chapter may not exceed one-fourth of the
162-19 assessed valuation of the real property of the district.
162-20 Sec. 256.006. TAX ABATEMENT AGREEMENTS. (a) The district
162-21 may enter into tax abatement agreements and may designate areas as
162-22 reinvestment zones pursuant to Section 1-g, Article VIII, Texas
162-23 Constitution, this chapter, and Chapter 312, Tax Code. Chapter
162-24 312, Tax Code, applies to the district except as otherwise provided
162-25 by this chapter. In the case of any conflict between this chapter
162-26 and Chapter 312, Tax Code, the provisions of this chapter prevail.
163-1 (b) Notwithstanding any amendment or repeal of this chapter,
163-2 the applicable provisions of this chapter under which a tax
163-3 abatement agreement is entered into shall apply to the agreement
163-4 during the effective date of the agreement and those provisions
163-5 shall remain in effect for that purpose.
163-6 (c) The board may designate as a reinvestment zone for a
163-7 period of 50 years or until the termination of all outstanding tax
163-8 abatement agreements, whichever occurs last, an area within its
163-9 boundaries that satisfies the requirements of Section 312.202, Tax
163-10 Code.
163-11 (d) The district and the board have all of a municipality's
163-12 rights, powers, and authorization contained in Chapter 312, Tax
163-13 Code.
163-14 (e) The district shall enter into tax abatement agreements
163-15 for single-family residential property, as defined by the district,
163-16 for periods of 50 years and for property other than single-family
163-17 residential property for periods not to exceed:
163-18 (1) 25 years if the notice for the project is
163-19 submitted in 1999;
163-20 (2) 24 years if the notice for the project is
163-21 submitted in 2000;
163-22 (3) 23 years if the notice for the project is
163-23 submitted in 2001;
163-24 (4) 22 years if the notice for the project is
163-25 submitted in 2002;
163-26 (5) 21 years if the notice for the project is
164-1 submitted in 2003; and
164-2 (6) 20 years if the notice for the project is
164-3 submitted in 2004 or later.
164-4 (f) A tax abatement agreement is subject to the rights of
164-5 credit providers of the district, including holders of
164-6 tax-supported bonds of the district, regardless of when the bonds
164-7 were issued.
164-8 (g) Except as provided by Subsection (h), a tax abatement
164-9 agreement shall provide that the portion of the taxable value of
164-10 the property subject to the agreement that exceeds the taxable
164-11 value of the property for the year in which notice for the project
164-12 to which the agreement pertains is submitted is:
164-13 (1) subject to an effective tax rate of:
164-14 (A) 60 cents for each $100 of taxable value of
164-15 property if the property is residential real property other than
164-16 single-family residential property; and
164-17 (B) 50 cents for each $100 of taxable value of
164-18 property if the property is nonresidential real property; and
164-19 (2) exempt from taxation if the property is
164-20 single-family residential property.
164-21 (h) The applicable effective tax rate under Subsection (g)
164-22 is increased by the amount that the district's debt rate at the
164-23 time the notice for the project to which the tax abatement
164-24 agreement pertains is submitted exceeds 90 cents for each $100 of
164-25 taxable value of property but may not exceed 75 cents for each $100
164-26 of taxable value of property. This subsection applies only to a
165-1 tax abatement agreement pertaining to a project for which notice is
165-2 submitted in 2001 or later and does not apply to single-family
165-3 residential property.
165-4 (i) The district may enter into tax abatement agreements
165-5 with owners of real and personal property within the district for
165-6 proposed projects.
165-7 (j) The district shall adopt guidelines and criteria
165-8 governing tax abatement agreements by the district. The guidelines
165-9 and criteria must specify the criteria for an eligible project.
165-10 The guidelines and criteria are effective until the termination of
165-11 all outstanding tax abatement agreements. The district may amend
165-12 the guidelines and criteria by a vote of a majority of the
165-13 directors.
165-14 (k) The district shall adopt a form of tax abatement
165-15 agreement to be used by the district.
165-16 (l) A tax abatement agreement entered into by the district:
165-17 (1) must be consistent with:
165-18 (A) the guidelines and criteria adopted by the
165-19 district;
165-20 (B) the form of tax abatement agreement adopted
165-21 by the district; and
165-22 (C) the requirements of deed restrictions, or
165-23 other equivalent restrictions, enforced by the Las Colinas
165-24 Association or by the district; and
165-25 (2) may:
165-26 (A) include phased projects;
166-1 (B) incorporate the district's infrastructure
166-2 requirements; and
166-3 (C) generally describe the kind, number, and
166-4 location of all proposed improvements, subject to any change
166-5 provided by a notice of intent to construct the project, specifying
166-6 the details of the project, submitted by the owner to the district.
166-7 (m) Tax abatement agreements entered into by the district
166-8 are not required to contain identical terms as other tax abatement
166-9 agreements, if any, covering:
166-10 (1) the same property that are entered into by other
166-11 taxing units; or
166-12 (2) different property that are entered into by the
166-13 district.
166-14 (n) The district may enter into tax abatement agreements for
166-15 facilities and structures that commenced or were modified on or
166-16 after January 1, 1995, but before April 24, 1995.
166-17 (o) The district may tax at a reduced rate as provided by
166-18 Subsection (g) personal property located on property described in
166-19 Subsection (n) in each year covered by the agreement except for
166-20 personal property located on the property at any time before the
166-21 period covered by the agreement began.
166-22 Sec. 256.007. BOARD OF DIRECTORS. (a) All powers of the
166-23 district shall be exercised by a board of five directors. Each
166-24 director serves for a term of office as provided by this section
166-25 and until a successor is appointed and has qualified. If a
166-26 director ceases to possess the qualifications prescribed by this
167-1 section, the director's office shall be declared vacant by the
167-2 board and a successor shall be appointed by the city council of the
167-3 City of Irving.
167-4 (b) Each director must be at least 18 years of age and
167-5 possess one of the following qualifications:
167-6 (1) own land within the district subject to taxation;
167-7 (2) be a qualified voter residing within the district
167-8 at the time of qualification as a director;
167-9 (3) be an agent, employee, officer, or director of any
167-10 individual, corporation, trust, or partnership that owns or leases
167-11 real property within the district; or
167-12 (4) be a resident of the city of Irving.
167-13 (c) At least three of the five directors must qualify as
167-14 directors under Section 49.052(a), without consideration of any
167-15 exceptions from that subsection provided by other provisions of
167-16 Section 49.052. Section 49.052 applies only for purposes of this
167-17 section.
167-18 (d) Each director shall qualify by subscribing the
167-19 constitutional oath of office and by giving bond in the amount of
167-20 $5,000 for the faithful performance of the director's duties. The
167-21 directors' bonds must be approved by the district's board and
167-22 recorded in the official bond records of the county clerk of Dallas
167-23 County.
167-24 (e) Directors serve for staggered terms of four years, with
167-25 the terms of two or three directors expiring October 1 of each
167-26 odd-numbered year. Each director serves for a term of office as
168-1 provided by this subsection and until a successor is appointed and
168-2 takes office.
168-3 (f) Directors are appointed by the city council of the City
168-4 of Irving. All vacancies on the board shall be filled by
168-5 appointment to the unexpired term by the city council of the City
168-6 of Irving. The city council of the City of Irving may remove and
168-7 replace any director it appoints at any time without cause.
168-8 (g) Except for an action to dissolve the district under
168-9 state law or any other specific action taken by the city that must
168-10 be evidenced in writing, the city by its appointment and removal of
168-11 directors or any other action taken directly relating to any bond,
168-12 note, financial obligation, or contractual obligation of the
168-13 district, does not assume, agree to pay, or guarantee the payment
168-14 of any bond, note, or other financial obligation or undertaking of
168-15 the district, whether in the form of securities or in other
168-16 contractual forms, including the district's bonds.
168-17 (h) The directors shall establish in the district's bylaws
168-18 what shall constitute a quorum for any meeting, and a concurrence
168-19 of a majority of the quorum shall be necessary in all district
168-20 matters. The board shall prescribe the method of execution of all
168-21 contracts, the signing of checks, and the handling of any other
168-22 matters approved by the board as shown in the official minutes of
168-23 the district.
168-24 (i) Annually in the month of October, the board shall
168-25 reorganize and elect new officers as soon as practicable. The
168-26 board may designate one or more assistant secretaries and an
169-1 assistant treasurer, who may but need not be a member of the board.
169-2 The secretary or one of the assistant secretaries of the board
169-3 shall be responsible for keeping the minutes of the meetings and
169-4 official records of the board and may certify to any action taken
169-5 by the board.
169-6 (j) Each director is entitled to receive a per diem payment
169-7 of $50 for each regular or special board or committee meeting and
169-8 shall be reimbursed for actual expenses approved by the board. The
169-9 board shall hold regular and special meetings, at such times and on
169-10 such dates as the board shall determine, on giving notice as
169-11 required by the district's bylaws. The board shall designate a
169-12 meeting place or places. A meeting place of the district is a
169-13 public place for matters pertaining to the district's business.
169-14 (k) The board shall appoint a person to the office of tax
169-15 assessor-collector and may appoint deputies as the board considers
169-16 necessary. Each tax assessor-collector and deputy shall qualify by
169-17 executing a bond for $10,000 payable to the district and approved
169-18 by the board conditioned on the faithful performance of the
169-19 person's duties. The compensation of the tax assessor-collector
169-20 and deputies shall be fixed by the board. One of the directors
169-21 shall serve as treasurer of the district and shall see that all
169-22 funds of the district are deposited in the depository bank or banks
169-23 designated by the board as the official depository bank of the
169-24 district. To the extent that funds in the depository bank or banks
169-25 are not insured by the Federal Deposit Insurance Corporation, such
169-26 funds shall be secured in the manner provided by law for the
170-1 security of funds of counties of this state. Funds of the district
170-2 may be invested and reinvested at the direction of the board, its
170-3 treasurer, or other qualified representative in direct or indirect
170-4 obligations of the United States, the state, or any county, city,
170-5 or school district or other political subdivision of the state or
170-6 may be placed in certificates of deposit of state or national banks
170-7 within the state, provided that the same are secured in the manner
170-8 provided for the security of funds of counties of this state.
170-9 Sec. 256.008. ELECTIONS. Elections required to be held by
170-10 the district shall be called by the board. The results of the
170-11 elections shall be canvassed by the board. Elections shall be held
170-12 in accordance with the Election Code, except as otherwise provided
170-13 by this chapter. Notice of all district elections shall be given
170-14 by publication in a newspaper of general circulation in Dallas
170-15 County once a week for two consecutive weeks, with the first
170-16 publication at least 14 days before the election. Any elections
170-17 held by the district for any purpose may be held separately or may
170-18 be held at the same time as an election to be held for other
170-19 purposes, including a maintenance tax election, which may be held
170-20 on the same day as a bond election or any other election.
170-21 Elections held at the same time may be called by the board in a
170-22 single election order, and the results of the elections may be
170-23 canvassed in a single order.
170-24 Sec. 256.009. EXCLUSION AND ANNEXATION OF PROPERTY.
170-25 (a) The board may exclude land from the district and add land to
170-26 the district as provided by this section.
171-1 (b) The board may, solely on its own motion, call a hearing
171-2 on the question of exclusion of land from the district if the board
171-3 finds that the exclusion is practicable, just, or desirable and
171-4 that the holders of all outstanding bonds, notes, securities, and
171-5 other obligations of the district are or will be protected as a
171-6 result of the district's providing a substantial equivalent as
171-7 security in lieu of the excluded land for the bonds, notes,
171-8 securities, and other obligations.
171-9 (c) If the board determines that a hearing should be held on
171-10 the exclusion of land, the board shall give notice of a time and
171-11 place for the hearing by publishing the notice once a week for two
171-12 consecutive weeks in one or more newspapers of general circulation
171-13 in the district. The first publication shall appear at least 14
171-14 days before the hearing date.
171-15 (d) After considering all matters presented during the
171-16 hearing by the district's staff, property owners, taxpayers, and
171-17 others, on the board's finding and concluding that the exclusion of
171-18 land from the district is practicable, just, or desirable, and that
171-19 the holders of all outstanding bonds, notes, securities, and other
171-20 obligations of the district are or will be protected as a result of
171-21 the district's providing a substantial equivalent as security for
171-22 payment of the bonds, notes, securities, and other obligations in
171-23 the form of newly annexed property or other lawful and adequate
171-24 security, the board may, solely at its own discretion, enter an
171-25 order excluding the land and property from the district and shall
171-26 redefine in the order the boundaries of the district to embrace all
172-1 land not excluded. A copy of the order excluding the land and
172-2 redefining the boundaries of the district shall be filed in the
172-3 deed records of Dallas County.
172-4 (e) The district may annex property to the district in the
172-5 manner provided by Subchapter J, Chapter 49.
172-6 (f) The district must obtain the approval of the City of
172-7 Irving in the form of a city council resolution as a condition
172-8 precedent to the annexation of any additional land and the approval
172-9 of the district's annual operation and maintenance budget.
172-10 Sec. 256.010. ADDITIONAL SPECIFIC POWERS AND DUTIES.
172-11 (a) The board may expend funds, borrow money, and issue bond
172-12 anticipation notes, tax anticipation notes, and bonds or notes
172-13 payable from revenue derived from the ownership of all or any
172-14 designated part of the district's works, plant, improvements,
172-15 facilities, or equipment, including the revenue derived from the
172-16 district's raw water supply system and the use and lease of the
172-17 district's land and facilities after deduction of the reasonable
172-18 cost of maintaining and operating these facilities, and may levy
172-19 and collect maintenance taxes and carry out all acts and have all
172-20 power and authority in accordance with the provisions of Subchapter
172-21 E, Chapter 49, and Sections 49.057(f) and 49.107.
172-22 (b) The board may issue bonds pursuant to and in accordance
172-23 with Sections 49.106, 49.184, 49.215, 54.501, 54.507, 54.5161, and
172-24 54.521. Sections 49.181 and 49.182 shall not be applicable to the
172-25 district.
172-26 (c) The board may enter into and execute a credit agreement,
173-1 including a letter of credit, line of credit, convertible line of
173-2 credit, loan agreement, revolving credit agreement, reimbursement
173-3 agreement, insurance contract, commitment to purchase obligations,
173-4 or sale agreement, or may authorize and approve a commitment or
173-5 other contract or agreement in connection with the operation,
173-6 maintenance, financial management, and financing of the district.
173-7 The board by order or resolution shall fix the terms, conditions,
173-8 and covenants of any credit agreement. A credit agreement
173-9 authorized under this section is payable from and secured by the
173-10 sources and resources of the district as determined by the board,
173-11 including ad valorem taxes levied and collected by the district and
173-12 other lawfully available revenues of the district. The proceeds
173-13 received from a credit agreement may be used in furtherance of the
173-14 purposes of the district as provided by Section 59, Article XVI,
173-15 Texas Constitution, and this chapter, including the maintenance of
173-16 the district and its assets through the stabilization of the
173-17 district tax rate, improvements to district property, and the
173-18 ongoing maintenance of those improvements. The district may not
173-19 enter into a credit agreement payable from ad valorem taxes unless
173-20 that action has been approved by a majority of the qualified voters
173-21 of the district.
173-22 Sec. 256.011. WRITTEN NOTICE TO REAL PROPERTY PURCHASERS NOT
173-23 REQUIRED. Sections 49.452 and 49.453 do not apply to the district.
173-24 Sec. 256.012. USE OF MAINTENANCE TAX PROCEEDS. The board
173-25 may use the money received from maintenance taxes:
173-26 (1) to maintain, repair, and make additions,
174-1 extensions, and improvements to the district's properties, works,
174-2 projects, facilities, and improvements;
174-3 (2) to pay the principal of or interest on any tax
174-4 anticipation notes or bond anticipation notes or to pay other
174-5 contracts or obligations of the district; and
174-6 (3) for any other lawful purpose other than the
174-7 payment of the principal of or interest on bonds, for the payment
174-8 of which separate taxes shall be levied and collected to the extent
174-9 the bonds are required to be paid from taxes; provided, however,
174-10 that maintenance taxes may not be used for the purposes permitted
174-11 by Section 256.004(b) unless the district has complied with the
174-12 provisions of Section 256.004(c).
174-13 Sec. 256.013. LEVY, ASSESSMENT, AND COLLECTION OF TAXES.
174-14 The ad valorem plan of taxation shall be used by the district, and
174-15 the provisions of Subchapter G, Chapter 54, and the applicable
174-16 provisions of Title 1, Tax Code, shall be applicable to all matters
174-17 relating to the levy, assessment, and collection of both current
174-18 and delinquent taxes by the district.
174-19 Sec. 256.014. CONTRACTS. The district may enter into
174-20 contracts with the United States or any of its agencies, with the
174-21 City of Irving and any other public bodies, with individuals or
174-22 corporations, or with any other entity for the operation and
174-23 maintenance of or construction of any facility or improvement
174-24 authorized by this chapter. Any contract obligating the district
174-25 to make payments in whole or in part from ad valorem taxes, other
174-26 than maintenance taxes, shall be subject to approval at an election
175-1 held under the same procedures as those required for the issuance
175-2 of bonds payable from ad valorem taxes. All contracts, agreements,
175-3 and obligations previously incurred or entered into between the
175-4 City of Irving and the district shall remain in full force and
175-5 effect until the year 2023 or until the effective date of a
175-6 dissolution of the district by the exercise of a lawful right by
175-7 the city, whichever comes first, and those contracts, agreements,
175-8 and obligations are ratified and affirmed.
175-9 Sec. 256.015. RISK MANAGEMENT PROGRAM. The board may
175-10 implement a funded risk management program to self-insure the
175-11 district against such risks, liabilities, and casualties as the
175-12 board may determine. The board may:
175-13 (1) create or provide for a risk management fund and
175-14 pay or discharge from the fund such claims, losses, risks,
175-15 liabilities, and casualties as may be defined and specified by the
175-16 board, along with the expenses and costs of administering the fund;
175-17 (2) issue, guarantee, or otherwise pledge the
175-18 district's assets, properties, or credit to secure any and all such
175-19 bonds, notes, contracts, or other obligations as may be appropriate
175-20 for the creation of the risk management funds;
175-21 (3) notwithstanding any limitations in Section
175-22 256.014, levy, assess, collect, and pledge ad valorem taxes for the
175-23 payment of bonds, notes, contracts, and other obligations
175-24 authorized pursuant to Subsection (b), and, notwithstanding any
175-25 limitations contained in Section 256.012, pledge the district's
175-26 maintenance taxes for the payment of the bonds, notes, contracts,
176-1 and other obligations;
176-2 (4) organize a nonprofit corporation as a risk
176-3 management authority for the purpose of administering the risk
176-4 management fund and the risk management program in a manner
176-5 consistent with the provisions of this section and may contract
176-6 with that corporation and guarantee and secure its obligations and
176-7 indebtedness for that purpose;
176-8 (5) execute and deliver such other notes, bonds,
176-9 contracts, agreements, documents, certificates, or instruments and
176-10 perform such other acts and things as the board determines
176-11 necessary, advisable, or appropriate to implement and administer a
176-12 risk management program in a manner consistent with this section.
176-13 Sec. 256.016. EMINENT DOMAIN. The district shall have and
176-14 may exercise all rights of eminent domain provided in Chapter 49;
176-15 provided, however, that the district shall not exercise any right
176-16 of eminent domain for the purpose of acquiring any land or
176-17 improvements owned by the City of Irving.
176-18 Sec. 256.017. ABOLITION AND DISSOLUTION OF DISTRICT BY CITY
176-19 OF IRVING. The City of Irving shall have the right to abolish and
176-20 dissolve the district and to assume all bonded indebtedness and
176-21 other district obligations under Section 43.074, Local Government
176-22 Code.
176-23 Sec. 256.018. REGULATORY AND POLICE POWER. (a) The
176-24 district shall have all regulatory and police power under Chapters
176-25 49 and 54 except as provided by this section.
176-26 (b) All rules and regulations containing penal provisions to
177-1 be enforced by a peace officer shall be approved by the City of
177-2 Irving as a condition precedent to their enactment except as to
177-3 rules and regulations regulating privileges on the lakes, and on
177-4 walkways contiguous to the lakes, constructed or to be constructed
177-5 and owned or controlled by the district. The rules shall be
177-6 submitted to the City of Irving for review at least 30 days in
177-7 advance of approval of the rules by the district.
177-8 (c) The district may not make penal rules or regulations
177-9 that conflict with any City of Irving ordinances, including the
177-10 Irving Building Code, Fire Code, Traffic Ordinances, Electrical
177-11 Code, and Mechanical Code.
177-12 (d) The district may not promulgate rules or regulations
177-13 relating to the City of Irving's streets or roads, and the
177-14 district's peace officers may not enforce any rules or regulations
177-15 on the city's streets or roads.
177-16 (e) Peace officers employed by the district shall have the
177-17 power authorized in Chapter 49 except that such officers shall not
177-18 have the power to enforce city ordinances or state law but shall
177-19 have the authority to make arrests when necessary to prevent or
177-20 stop the commission of any offense against the rules and
177-21 regulations of the district, as provided in Section 49.216.
177-22 CHAPTER 257. FRANKLIN COUNTY WATER DISTRICT
177-23 Sec. 257.001. CREATION. (a) A conservation and reclamation
177-24 district to be known as the "Franklin County Water District" is
177-25 created. The district is a governmental agency, a body politic and
177-26 corporate, and a political subdivision of this state.
178-1 (b) The district is created under and is essential to
178-2 accomplish the purposes of Section 59, Article XVI, Texas
178-3 Constitution.
178-4 Sec. 257.002. DEFINITIONS. In this chapter:
178-5 (1) "Board" means the board of directors of the
178-6 district.
178-7 (2) "Director" means a member of the board.
178-8 (3) "District" means the Franklin County Water
178-9 District.
178-10 Sec. 257.003. TERRITORY. The area of the district consists
178-11 of all of Franklin County, and the boundaries of the district shall
178-12 be identical with the boundaries of that county.
178-13 Sec. 257.004. NO CONFIRMATION ELECTION, HEARING ON EXCLUSION
178-14 OF LAND OR PLAN OF TAXATION REQUIRED. It being found and
178-15 determined that all of the land included within the boundaries of
178-16 the district will benefit and that the district is created to serve
178-17 a public use and benefit, the board is not required to call a
178-18 confirmation election or to hold a hearing on the exclusion of
178-19 lands or a hearing on the adoption of a plan of taxation. The ad
178-20 valorem plan of taxation shall be used by the district.
178-21 Sec. 257.005. BOARD OF DIRECTORS. (a) All powers of the
178-22 district shall be exercised by a board of five directors. Each
178-23 director serves for a term of office as provided by this section
178-24 and until a successor is elected or appointed and has qualified. A
178-25 person may not serve as a director unless the person is at least 21
178-26 years of age and resides and owns land in the territorial limits of
179-1 the district. Each director shall subscribe the constitutional
179-2 oath of office and shall give bond in the amount of $5,000 for the
179-3 faithful performance of the person's duties as director. The cost
179-4 of the bond shall be paid by the district.
179-5 (b) Directors serve for four-year terms. A directors
179-6 election shall be held on the first Saturday in May of each
179-7 odd-numbered year to elect the appropriate number of directors.
179-8 Except as provided by this chapter, a directors election is held as
179-9 provided by Chapter 49 and the Election Code. Notice of the
179-10 election shall be published in accordance with the general law
179-11 applicable to water control and improvement districts. The
179-12 election order must state the time, places, and purpose of the
179-13 election. The board shall appoint presiding judges as necessary.
179-14 Each presiding judge shall appoint one assistant judge and at least
179-15 two clerks to assist in holding the election. As determined by the
179-16 board, the board may contract with the county clerk of Franklin
179-17 County to conduct its elections.
179-18 (c) One director represents the district as a whole and is
179-19 elected at large. A candidate for the at-large directorship must
179-20 be a qualified voter who resides in the district. One director
179-21 represents each of the county commissioners precincts in Franklin
179-22 County. The director for a precinct is elected by qualified voters
179-23 residing in the precinct. A candidate for a precinct's
179-24 directorship must be a qualified voter who resides in the precinct.
179-25 (d) Only qualified voters residing in the district are
179-26 entitled to vote at the election. Returns of the election shall be
180-1 made to and canvassed by the board, which shall enter its order
180-2 declaring the results of the election.
180-3 (e) Any candidate for director desiring to have the
180-4 candidate's name printed on the ballot may do so by a petition
180-5 signed by not less than 10 residents of the district who are
180-6 qualified to vote at the election. The petition must be presented
180-7 to the secretary of the board not less than 35 full days before the
180-8 date of the election.
180-9 (f) If a vacancy occurs in the membership of the board, the
180-10 remaining members of the board shall appoint a person from the
180-11 precinct where the vacancy occurs, or from the county in the case
180-12 of an at-large position, to fill the vacancy for the unexpired
180-13 term.
180-14 (g) A director is entitled to receive fees of office in
180-15 accordance with Section 49.060.
180-16 (h) The board shall elect from among its members a president
180-17 and a vice president and such other officers as in the judgment of
180-18 the board are necessary. The president is the chief executive
180-19 officer and the presiding officer of the board and has the same
180-20 right to vote as any other director. When the president is absent
180-21 or fails to or declines to act, the vice president shall perform
180-22 all duties and exercise all power conferred by this chapter on the
180-23 president. The board shall also appoint a secretary, who may or
180-24 may not be a member of the board.
180-25 (i) Three members of the board constitute a quorum for the
180-26 transaction of all business, and a favorable vote of a majority of
181-1 a quorum present is sufficient for the enactment of all measures.
181-2 The board shall hold regular meetings at least once a month at the
181-3 time and place designated by resolution or bylaws of the board.
181-4 The president or any two members may call special meetings as
181-5 necessary in the administration of the district's business provided
181-6 that, at least five days before the meeting date, the secretary
181-7 mails notice to each director, unless the director has waived
181-8 notice of special meetings in writing.
181-9 (j) The board shall keep and preserve a true and full
181-10 account of all its meetings and proceedings and shall preserve the
181-11 board's minutes, contracts, notices, accounts, receipts, and
181-12 records of all kinds. Those documents are the property of the
181-13 district and are subject to public inspection. A regular office
181-14 shall be established and maintained within the district for the
181-15 conduct of its business.
181-16 (k) All records and accounts must conform to approved
181-17 methods of bookkeeping. The board shall have an audit made and
181-18 completed annually, as soon as practicable after the expiration of
181-19 each calendar year, of the books of account and financial records
181-20 of the district for that calendar year. The audit must be made by
181-21 an individual public accountant or firm of public accountants. The
181-22 report on the audit shall be submitted at the first regular meeting
181-23 of the board after the report is completed. One copy of the report
181-24 shall be filed with the office of the district, one with the
181-25 depository of the district, and one in the office of the auditor,
181-26 all of which shall be open to public inspection. Additional copies
182-1 of the report shall be filed with any state or governmental
182-2 agencies as may be required by law.
182-3 Sec. 257.006. DISTRICT POWERS. (a) The district has all
182-4 the rights, powers, and privileges conferred by the general laws of
182-5 the state applicable to water control and improvement districts
182-6 created under the authority of Section 59, Article XVI, Texas
182-7 Constitution. To the extent that general laws applicable to water
182-8 control and improvement districts may be inconsistent or in
182-9 conflict with this chapter, the provisions of this chapter prevail.
182-10 (b) It is the intention of the legislature that the district
182-11 have all the power and authority necessary to fully qualify and
182-12 gain the benefits of all laws that are helpful in carrying out the
182-13 purposes for which the district is created, and the provisions of
182-14 all such laws of which the district may lawfully avail itself are
182-15 adopted by this reference and made applicable to the district.
182-16 (c) The district shall exercise the powers, privileges, and
182-17 functions provided by this section, including the power to:
182-18 (1) control, store, preserve, and distribute its
182-19 waters and floodwaters and the waters of its rivers and streams for
182-20 all useful purposes and to accomplish these ends by all practicable
182-21 means, including the construction, maintenance, and operation of
182-22 all appropriate improvements, plants, works, and facilities and the
182-23 acquisition of water rights and all other properties, lands,
182-24 tenements, easements, and rights necessary to the purpose of the
182-25 organization of the district;
182-26 (2) process, store, and distribute water for
183-1 municipal, domestic, irrigation, and industrial purposes, subject
183-2 to the requirements of Chapter 11;
183-3 (3) dispose of property or rights in property when the
183-4 property or rights are no longer needed for the purposes for which
183-5 the district is created and to lease property or rights in property
183-6 for purposes that will not interfere with the use of the property
183-7 of the district;
183-8 (4) cooperate with and contract with the state or the
183-9 United States or any of their departments or agencies to carry out
183-10 any of the powers or to further any of the purposes of the district
183-11 and, for such purposes, to receive grants, loans, or advancements
183-12 from the state or United States or their departments or agencies;
183-13 and
183-14 (5) make or cause to be made surveys and engineering
183-15 investigations for the information of the district to facilitate
183-16 the accomplishment of its purposes, to employ a general manager,
183-17 attorneys, accountants, engineers, financial experts, or other
183-18 technical or nontechnical employees or assistants and set the
183-19 amount and manner of their compensation, and to provide for the
183-20 payment of all expenditures considered essential to the proper
183-21 operation and maintenance of the district and its affairs.
183-22 (d) The district may exercise all functions to permit the
183-23 accomplishment of its purposes including the acquisition, within or
183-24 outside the district, of land, easements, and rights-of-way and any
183-25 other character of property incident to or necessary in carrying
183-26 out the purposes and work of the district by way of gift, device,
184-1 purchase, leasehold, or condemnation. The right of eminent domain
184-2 is expressly conferred on the district, and the procedure with
184-3 reference to condemnation, the assessment of and estimating of
184-4 damages, payment, appeal, the entering upon the property pending
184-5 appeal, and other procedures prescribed in Chapter 21, Property
184-6 Code, apply to the district.
184-7 (e) If the district, in the exercise of the power of eminent
184-8 domain or power of relocation or any other power granted under this
184-9 chapter, makes necessary the taking of any property or the
184-10 relocation, raising, rerouting, changing the grade, or altering the
184-11 construction of any highway, railroad, electric transmission line,
184-12 telephone or telegraph properties and facilities, or pipeline, all
184-13 such necessary taking, relocation, raising, rerouting, changing of
184-14 grade, or alteration of construction shall be accomplished at the
184-15 expense of the district. It is provided, however, that the expense
184-16 of the district shall be strictly confined to that amount which is
184-17 equal to the actual cost of the property taken or work required
184-18 without enhancement of the property and after deducting the net
184-19 salvage value which may be derived from any property taken.
184-20 (f) The district may do any and all other acts or things
184-21 necessary or proper to carry into effect the purpose for which the
184-22 district is created and organized.
184-23 Sec. 257.007. AWARDING CONTRACTS. The district shall comply
184-24 with the requirements of Section 49.273 when awarding a contract.
184-25 Sec. 257.008. ISSUANCE OF BONDS. (a) For the purpose of
184-26 providing funds for purchasing or otherwise providing works,
185-1 plants, facilities, or appliances necessary to the accomplishment
185-2 of the purposes authorized by this chapter, and for the purpose of
185-3 carrying out any other power or authority conferred by this
185-4 chapter, the district may borrow money and issue negotiable bonds
185-5 payable from such ad valorem taxes or revenues or from both taxes
185-6 and revenues of the district as are pledged by resolution of the
185-7 board. Pending the issuance of definitive bonds, the board may
185-8 authorize the delivery of negotiable interim bonds or notes
185-9 eligible for exchange or substitution by use of definitive bonds.
185-10 (b) Bonds must be issued in the name of the district, signed
185-11 by the president, and attested by the secretary and must bear the
185-12 seal of the district. The signature of the president or secretary,
185-13 or of both, may be printed or lithographed on the bonds authorized
185-14 by the board. The seal of the district may be impressed on the
185-15 bonds or may be printed or lithographed on the bonds, if so
185-16 authorized.
185-17 (c) Bonds must mature, serially or otherwise, in not to
185-18 exceed 40 years and may be sold at a price and under terms
185-19 determined by the board to be the most advantageous reasonably
185-20 obtainable, provided that the interest cost to the district,
185-21 calculated by the use of standard bond interest tables currently in
185-22 use by insurance companies and investment houses, does not exceed
185-23 six percent per year. Within the discretion of the board, bonds
185-24 may be made callable before maturity at such times and prices as
185-25 may be prescribed in the resolution authorizing the bonds and may
185-26 be made registrable as to principal or as to both principal and
186-1 interest.
186-2 (d) Bonds may be issued in one or more than one series and
186-3 from time to time as required for carrying out the purposes of this
186-4 chapter.
186-5 (e) Bonds may be secured by a pledge of all or part of the
186-6 net revenues of the district, of the net revenues of one or more
186-7 contracts made before or after the bonds are issued, or of other
186-8 revenues and income specified by the resolution of the board or in
186-9 the trust indenture. A pledge may reserve the right, under
186-10 conditions specified in the pledge, to issue additional bonds that
186-11 would be on a parity with or subordinate to the bonds being issued.
186-12 In this subsection, "net revenues" means the gross revenues of the
186-13 district less the amount necessary to pay the reasonable cost of
186-14 maintaining and operating the district and its properties.
186-15 (f) If bonds are issued that are payable wholly or partially
186-16 from ad valorem taxes, the board shall levy, assess, and cause to
186-17 be collected a tax sufficient to pay the bonds and the interest on
186-18 the bonds as the bonds and interest become due. In levying the
186-19 tax, the board shall take into consideration reasonable
186-20 delinquencies and costs of collection. In the case of bonds
186-21 payable partially from ad valorem taxes, the rate of the tax for
186-22 any year may be set after giving consideration to the money
186-23 reasonably expected to be received from the pledged revenues
186-24 available for payment of principal and interest and to the extent
186-25 and in the manner permitted by the resolution authorizing the
186-26 issuance of the bonds.
187-1 (g) If bonds payable wholly from revenues are issued, the
187-2 board shall set, establish, and from time to time as necessary
187-3 revise the rates of compensation for the sale of water and other
187-4 services furnished, supplied, and rendered by the district and
187-5 collect the rates in amounts sufficient to pay the expenses of
187-6 operating and maintaining the facilities of the district, to pay
187-7 the bonds as they mature and the interest as it accrues, and to
187-8 maintain the reserve and other funds as provided in the resolution
187-9 authorizing the bonds. If bonds payable partially from revenues
187-10 are issued, the board shall set, establish, and from time to time
187-11 as necessary revise the rates of compensation for the sale of water
187-12 and other services furnished, supplied, and rendered by the
187-13 district and shall collect the rates in amounts sufficient to
187-14 assure compliance with the resolution authorizing the bonds.
187-15 (h) From the proceeds of the sale of bonds, the district may
187-16 set aside an amount for the payment of interest expected to accrue
187-17 during construction and for a reserve interest and sinking fund,
187-18 and this provision may be made in the resolution authorizing the
187-19 bonds. Proceeds from the sale of bonds may also be used for the
187-20 payment of all expenses necessarily incurred in accomplishing the
187-21 purposes for which the district is created, including expenses of
187-22 its organization, of engineering investigations, and of the
187-23 issuance and sale of the bonds. The proceeds from the sale of the
187-24 bonds may be placed on time deposit with the district's depository
187-25 bank or may be temporarily invested in direct obligations of the
187-26 United States government maturing in not more than one year from
188-1 the date of investment.
188-2 (i) In the event of a default or a threatened default in the
188-3 payment of principal of or interest on bonds payable wholly or
188-4 partially from revenues, any court of competent jurisdiction may,
188-5 on petition of the holders of the outstanding bonds, appoint a
188-6 receiver with authority to collect and receive all income of the
188-7 district except taxes, employ and discharge agents and employees of
188-8 the district, take charge of the district's funds on hand, except
188-9 funds received from taxes, unless commingled, and manage the
188-10 proprietary affairs of the district without consent or hindrance by
188-11 the board. The receiver may also be authorized to sell or make
188-12 contracts for the sale of water or other services furnished by the
188-13 district or renew the contracts with the approval of the court
188-14 appointing the receiver. The court may vest the receiver with
188-15 other powers and duties the court finds necessary for the
188-16 protection of the holders of the bonds. The resolution authorizing
188-17 the issuance of the bonds or the trust indenture securing them may
188-18 limit or qualify the rights of less than all of the outstanding
188-19 bonds payable from the same source to institute or prosecute any
188-20 litigation affecting the district's property or income.
188-21 (j) The provisions of Section 49.181 relating to commission
188-22 approval of plans and specifications for projects to be financed by
188-23 the sale of bonds apply to the sale of bonds under this chapter.
188-24 Sec. 257.009. REFUNDING BONDS. (a) The district may issue
188-25 refunding bonds for the purpose of refunding any outstanding bonds
188-26 authorized by this chapter and the interest on the bonds.
189-1 Refunding bonds may be issued to refund more than one series of
189-2 outstanding bonds and may combine the pledges of the outstanding
189-3 bonds for the security of the refunding bonds, and the refunding
189-4 bonds may be secured by other or additional revenues and mortgage
189-5 liens.
189-6 (b) The provisions of this chapter with respect to the
189-7 issuance by the district of other bonds, their security, their
189-8 approval by the attorney general, and the remedies of the holders
189-9 are applicable to refunding bonds. Refunding bonds shall be
189-10 registered by the comptroller on surrender and cancellation of the
189-11 bonds to be refunded, but in lieu of that procedure, the resolution
189-12 authorizing the issuance of the refunding bonds may provide that
189-13 the refunding bonds shall be sold and the proceeds of the sale
189-14 deposited in the bank where the original bonds were payable, in
189-15 which case the refunding bonds may be issued in an amount
189-16 sufficient to pay the principal of and interest on the original
189-17 bonds to their effective option date or maturity date, and the
189-18 comptroller shall register the refunding bonds without concurrent
189-19 surrender and cancellation of the original bonds.
189-20 Sec. 257.010. TRUST INDENTURE. (a) Bonds, including
189-21 revenue bonds, authorized by this chapter that are not payable
189-22 wholly from ad valorem taxes may be additionally secured by a trust
189-23 indenture under which the trustee may be a bank with trust powers
189-24 located either within or outside the state. The bonds may, within
189-25 the discretion of the board, be additionally secured by a deed of
189-26 trust or mortgage lien on physical properties of the district and
190-1 all franchises, easements, water rights and appropriation permits,
190-2 leases and contracts, and all rights appurtenant to the properties,
190-3 vesting in the trustee power to sell the properties for payment of
190-4 the indebtedness, power to operate the properties, and all other
190-5 powers and authority for the further security of the bonds.
190-6 (b) The trust indenture, regardless of the existence of a
190-7 deed of trust or mortgage lien on the properties, may contain any
190-8 provisions prescribed by the board for the security of the bonds
190-9 and the preservation of the trust estate, may make provision for
190-10 amendment or modification of the trust indenture and for the
190-11 issuance of bonds to replace lost or mutilated bonds, may condition
190-12 the right to expend district money or sell district property on
190-13 approval by a registered professional engineer selected as provided
190-14 in the trust indenture, and may make provision for the investment
190-15 of funds of the district.
190-16 (c) A purchaser under a sale under a deed of trust lien,
190-17 where one is given, is the absolute owner of the properties,
190-18 facilities, and rights purchased and has the right to maintain and
190-19 operate the properties, facilities, and rights.
190-20 Sec. 257.011. BOND ELECTIONS. (a) Bonds payable wholly or
190-21 partially from ad valorem taxes, except refunding bonds, may not be
190-22 issued unless authorized at an election at which only the qualified
190-23 voters who reside in the district may vote and a majority of the
190-24 votes cast is in favor of the issuance of the bonds. Bonds not
190-25 payable wholly or partially from ad valorem taxes may be issued
190-26 without an election.
191-1 (b) A bond election described by Subsection (a) may be
191-2 called by the board without a petition. The resolution calling the
191-3 election must specify the time and place or places of holding the
191-4 election, the purpose for which the bonds are to be issued, the
191-5 maximum amount of the bonds, the maximum interest rate, the maximum
191-6 maturity of the bonds, the form of the ballot, and the presiding
191-7 judge for each voting place. The presiding judge serving at each
191-8 voting place shall appoint one assistant judge and at least two
191-9 clerks to assist in holding the election. Notice of the election
191-10 for the issuance of bonds shall be given by publication of a
191-11 substantial copy of the resolution calling the election in a
191-12 newspaper with general circulation in the district once each week
191-13 for at least four consecutive weeks. The first publication must
191-14 appear not less than 28 days before the election.
191-15 (c) The returns of the election shall be made to and
191-16 canvassed by the board.
191-17 (d) Except as otherwise provided in this chapter, the
191-18 Election Code applies to bond elections. If a bond issue election
191-19 fails, another bond election may not be called for a period of six
191-20 months.
191-21 Sec. 257.012. APPROVAL AND REGISTRATION OF BONDS. After
191-22 bonds, including refunding bonds, are authorized by the district,
191-23 the bonds and the record relating to their issuance shall be
191-24 submitted to the attorney general for examination as to their
191-25 validity. If the bonds recite that they are secured by a pledge of
191-26 the proceeds of a contract previously made between the district and
192-1 a city or other governmental agency, authority, or district, a copy
192-2 of the contract and the proceedings of the city or other
192-3 governmental agency, authority, or district authorizing the
192-4 contract shall also be submitted to the attorney general. If the
192-5 bonds have been authorized and the contract has been made in
192-6 accordance with the constitution and laws of the state, the
192-7 attorney general shall approve the bonds and the contract and the
192-8 bonds shall then be registered by the comptroller. After the
192-9 approval and registration, the bonds and the contract, if any, are
192-10 valid and binding and are incontestable for any cause.
192-11 Sec. 257.013. TAXES AUTHORIZED. (a) On a favorable
192-12 majority vote of the qualified voters of the district voting at an
192-13 election held for the purpose within the boundaries of the
192-14 district, the board may levy, assess, and collect annual taxes to
192-15 provide funds necessary to construct or acquire, maintain, and
192-16 operate works, plants, and facilities considered essential or
192-17 beneficial to the district and its purposes and, when so
192-18 authorized, may also levy, assess, and collect annual taxes to
192-19 provide funds adequate to defray the cost of the maintenance,
192-20 operation, and administration of the district.
192-21 (b) Elections for the levy of such taxes shall be ordered by
192-22 the board and notice of the election shall be given and the
192-23 election shall be held and conducted and the results of the
192-24 election determined in the manner provided in this chapter with
192-25 relation to elections for the authorization of bonds. In calling
192-26 an election for taxes under this section, the board shall specify
193-1 the maximum rate of tax that is sought to be levied, and no tax in
193-2 excess of that amount may be levied without submitting the question
193-3 of the increased rate of taxation at an election as provided in
193-4 this section.
193-5 (c) Taxes levied by the district for any purpose constitute
193-6 a lien on the property levied against, and limitation shall not bar
193-7 the enforcement or collection of the taxes.
193-8 Sec. 257.014. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
193-9 DEPOSITS. Bonds of the district are legal and authorized
193-10 investments for banks, savings banks, trust companies, building and
193-11 loan associations, savings and loan associations, insurance
193-12 companies, fiduciaries, and trustees, for sinking funds of cities,
193-13 towns and villages, counties, school districts, or other political
193-14 subdivisions of the state, and for all public funds of the state or
193-15 its agencies, including the state permanent school fund. The bonds
193-16 are eligible to secure deposits of all public funds of the state
193-17 and all public funds of cities, towns, villages, counties, school
193-18 districts, or other political subdivisions or corporations of the
193-19 state, and the bonds are lawful and sufficient security for the
193-20 deposits to the extent of their value when accompanied by all
193-21 unmatured coupons.
193-22 Sec. 257.015. DISTRICT DEPOSITORY. The board shall
193-23 designate one or more banks within the district to serve as
193-24 depository for the funds of the district. All funds of the
193-25 district shall be deposited in the depository bank or banks except
193-26 that sufficient funds shall be remitted to the bank or banks for
194-1 payment of the principal of and interest on the outstanding bonds
194-2 of the district and in time that the funds may be received by the
194-3 bank or banks on or before the date of the maturity of the
194-4 principal and interest to be paid. To the extent that funds in the
194-5 depository bank or banks are not insured by the Federal Deposit
194-6 Insurance Corporation, the funds shall be secured in the manner
194-7 provided by law for the security of county funds. Membership on
194-8 the board of an officer or director of a bank shall not disqualify
194-9 that bank from being designated as depository.
194-10 Sec. 257.016. DISTRICT AND BONDS EXEMPT FROM TAXATION. The
194-11 accomplishment of the purposes stated in this chapter will benefit
194-12 the people of this state and improve their properties and
194-13 industries, and the district in carrying out the purposes of this
194-14 chapter will be performing an essential public function under
194-15 Section 59, Article XVI, Texas Constitution, and may not be
194-16 required to pay any tax or assessment on a project or any part of
194-17 the project, and the bonds issued under this chapter and the
194-18 transfer of and income from the bonds, including the profits made
194-19 on the sale of the bonds, shall at all times be free from taxation
194-20 within the state.
194-21 Sec. 257.017. WATER SUPPLY CONTRACTS. The district may
194-22 enter into contracts with cities and others for supplying water
194-23 services to them. The district may also contract with any city for
194-24 the rental or leasing of, or for the operation of, the city's water
194-25 production, water supply, or water filtration or purification and
194-26 water supply facilities. The contract may be on such terms, for
195-1 such consideration, and for such time as the parties may agree, and
195-2 the contract may provide that it shall continue in effect until
195-3 bonds specified in the contract and any refunding bonds issued in
195-4 lieu of such bonds are paid.
195-5 Sec. 257.018. ACQUISITION OF WATER AND STORAGE CAPACITY IN
195-6 RESERVOIRS. The district may lease or acquire rights in and to
195-7 storage and storage capacity in any reservoir constructed or to be
195-8 constructed by any person, firm, corporation, or public agency or
195-9 from the United States government or any of its agencies. The
195-10 district may also purchase or make contracts for the purchase of
195-11 water or a water supply from any person or firm, corporation, or
195-12 public agency or from the United States government or any of its
195-13 agencies.
195-14 CHAPTER 258. GUADALUPE-BLANCO RIVER AUTHORITY
195-15 Sec. 258.001. CREATION. (a) A conservation and reclamation
195-16 district to be known as the "Guadalupe-Blanco River Authority" is
195-17 created. The authority is a governmental agency and body politic
195-18 and corporate.
195-19 (b) The authority is created under and is essential to
195-20 accomplish the purposes of Section 59, Article XVI, Texas
195-21 Constitution.
195-22 (c) The authority may exercise the rights, privileges, and
195-23 functions provided by Section 59, Article XVI, Texas Constitution,
195-24 and this chapter including, to the extent authorized by this
195-25 chapter, the control, storage, preservation, and distribution of
195-26 storm waters, floodwaters, and the waters of rivers and streams,
196-1 including the Guadalupe and Blanco rivers and their tributaries,
196-2 for irrigation, power, and all other useful purposes; the
196-3 reclamation and irrigation of arid, semiarid, and other lands
196-4 needing irrigation; the reclamation and drainage of overflowed
196-5 lands and other lands needing drainage, but not the reclamation or
196-6 drainage of coastal wetlands or inland marshes; the conservation
196-7 and development of the forests, water, and hydroelectric power of
196-8 the state; the navigation of inland waters; and the preservation
196-9 and conservation of all such natural resources of the state.
196-10 (d) Nothing in this chapter or in any other law shall be
196-11 construed as authorizing the authority to levy or collect taxes or
196-12 assessments or to create any indebtedness payable out of taxes or
196-13 assessments or in any way to pledge the credit of the state.
196-14 Sec. 258.002. DEFINITIONS. In this chapter:
196-15 (1) "Authority" means the Guadalupe-Blanco River
196-16 Authority.
196-17 (2) "Board" means the board of directors of the
196-18 authority.
196-19 (3) "Director" means a member of the board.
196-20 Sec. 258.003. TERRITORY. The authority consists of all the
196-21 territory within the boundaries of Hays, Comal, Guadalupe,
196-22 Caldwell, Gonzales, DeWitt, Victoria, Kendall, Refugio, and Calhoun
196-23 counties.
196-24 Sec. 258.004. POWERS OF THE AUTHORITY. (a) Except as
196-25 expressly limited by this chapter, the authority may exercise all
196-26 powers, rights, privileges, and functions conferred by general law
197-1 on any district or districts, excluding groundwater conservation
197-2 districts, created under Section 59, Article XVI, Texas
197-3 Constitution, including the power:
197-4 (1) to control, store, and preserve, within or
197-5 adjoining the boundaries of the authority, the waters of any rivers
197-6 and streams, including the waters of the Guadalupe and Blanco
197-7 rivers and their tributaries, for all useful purposes and to use,
197-8 distribute, and sell such waters, within the boundaries of the
197-9 authority, for any such purposes;
197-10 (2) to conserve, preserve, and develop groundwater
197-11 resources within the boundaries of the authority, subject to any
197-12 applicable regulation by the state or any political subdivision,
197-13 for all useful purposes and to use, distribute, and sell
197-14 groundwater, within the boundaries of the authority, for any such
197-15 purposes;
197-16 (3) to acquire water, water supply facilities, and
197-17 conservation storage capacity within or outside the authority from
197-18 any person, including the state or any of its agencies and
197-19 subdivisions and the United States and any of its agencies and
197-20 subdivisions;
197-21 (4) to use, distribute, and sell, outside the
197-22 boundaries of the authority, any waters that may be controlled,
197-23 stored, preserved, conserved, developed, or acquired by the
197-24 authority, if the board determines that adequate provision can be
197-25 made to continue to serve the water requirements within the
197-26 boundaries of the authority; provided, however, that the authority
198-1 may not enter into any agreement that contemplates or results in
198-2 the removal from the watershed of the Guadalupe and Blanco rivers
198-3 and their tributaries of any surface water of the authority
198-4 necessary to supply the reasonably foreseeable future water
198-5 requirements for municipal uses within such watershed during the
198-6 next ensuing 50-year period, except on a temporary, interim basis;
198-7 (5) to develop and generate water power and electric
198-8 energy within the boundaries of the authority and to distribute and
198-9 sell water power and electric energy, within or outside the
198-10 boundaries of the authority;
198-11 (6) to prevent or aid in the prevention of damage to
198-12 person or property from the waters of the Guadalupe and Blanco
198-13 rivers and their tributaries;
198-14 (7) to forest and reforest and to aid in the foresting
198-15 and reforesting of the watershed area of the Guadalupe and Blanco
198-16 rivers and their tributaries and to prevent and to aid in the
198-17 prevention of soil erosion and floods within the watershed area;
198-18 (8) to develop the navigation of inland waters within
198-19 the boundaries of the authority and any facilities in aid of that
198-20 purpose;
198-21 (9) to develop the reclamation and drainage of
198-22 overflowed lands and other lands needing drainage within the
198-23 boundaries of the authority and any facilities in aid of those
198-24 purposes but not the power to reclaim or drain coastal wetlands or
198-25 inland marshes;
198-26 (10) to develop the collection, transportation,
199-1 treatment, disposal, and handling of any waste, as that term is
199-2 defined by general law, and any facilities in aid of those
199-3 purposes, but if sanitary sewer facilities for the collection,
199-4 treatment, and disposal of sewage are to be constructed or acquired
199-5 within a city's corporate limits, only with the consent of the
199-6 affected city;
199-7 (11) to conserve and develop waters and lands for
199-8 recreation purposes and any facilities in aid of those purposes;
199-9 (12) to acquire by purchase, lease, or gift or in any
199-10 other manner, other than by condemnation, and to maintain, use, and
199-11 operate property of any kind, real, personal, or mixed, or any
199-12 interest in property, within or outside the boundaries of the
199-13 authority, necessary or convenient to the exercise of the powers,
199-14 rights, privileges, and functions conferred on the authority by
199-15 this chapter;
199-16 (13) to acquire by condemnation property of any kind,
199-17 real, personal, or mixed, or any interest in the property, within
199-18 or outside the boundaries of the authority, other than property or
199-19 any interest in property outside the boundaries of the authority
199-20 owned by any body politic, that is necessary or convenient to the
199-21 exercise of the powers, rights, privileges, and functions conferred
199-22 on the authority by this chapter, in the manner provided by general
199-23 law with respect to condemnation or, at the option of the
199-24 authority, in the manner provided by the statutes relating to
199-25 condemnation by districts organized under general law pursuant to
199-26 Section 59, Article XVI, Texas Constitution;
200-1 (14) subject to the provisions of this chapter, to
200-2 sell, lease, or otherwise dispose of property of any kind, real,
200-3 personal, or mixed, or any interest in the property, that the board
200-4 determines is not necessary to accomplish the purposes of the
200-5 authority or whose sale, lease, or disposition, in the judgment of
200-6 the board, is necessary or convenient to the exercise of the
200-7 powers, rights, privileges, and functions conferred on the
200-8 authority by this chapter or by general law;
200-9 (15) to overflow and inundate any public lands and
200-10 public property and to require the relocation of roads, pipelines,
200-11 transmission lines, railroads, cemeteries, and highways in the
200-12 manner and to the extent permitted to districts organized under
200-13 general law pursuant to Section 59, Article XVI, Texas
200-14 Constitution; provided that if the authority requires the
200-15 relocation, raising, lowering, rerouting, change in grade, or
200-16 alteration of the construction of any railroad, transmission lines,
200-17 conduits, poles, properties, facilities, or pipelines in the
200-18 exercise of the power of eminent domain or any other power, all of
200-19 the relocation, raising, lowering, rerouting, changes in grade, or
200-20 alteration of construction shall be at the sole expense of the
200-21 authority, whereby the term "sole expense" means the actual cost of
200-22 relocation, raising, lowering, rerouting, change in grade, or
200-23 alteration of construction to provide comparable replacement
200-24 without enhancement of facilities, after deducting the net salvage
200-25 value derived from the old facility;
200-26 (16) to construct, extend, improve, maintain, and
201-1 reconstruct, to cause to be constructed, extended, improved,
201-2 maintained, and reconstructed, and to use and operate facilities of
201-3 any kind necessary or convenient to the exercise of the powers,
201-4 rights, privileges, and functions conferred on the authority by
201-5 this chapter or by general law;
201-6 (17) to sue and to be sued in the authority's
201-7 corporate name;
201-8 (18) to adopt, use, and alter a corporate seal;
201-9 (19) to invest and reinvest the funds of the
201-10 authority;
201-11 (20) to make bylaws for the management and regulation
201-12 of the authority's affairs;
201-13 (21) to appoint officers, agents, and employees, to
201-14 prescribe their duties and to set their compensation;
201-15 (22) to make contracts and execute instruments
201-16 necessary or convenient to the exercise of the powers, rights,
201-17 privileges, and functions conferred on the authority by this
201-18 chapter or general law for such term and with such provisions as
201-19 the board determines to be in the best interests of the authority
201-20 (including contracts with the state and the United States, and any
201-21 corporation or agency of either the state or the United States, and
201-22 districts, cities, towns, persons, organizations, associations,
201-23 firms, corporations, entities, or others, as the board determines
201-24 necessary or proper for or in connection with any corporate
201-25 purpose) to provide for the construction, acquisition, ownership,
201-26 financing, operation, maintenance, sale, leasing to or from, or
202-1 other use or disposition of any facilities authorized to be
202-2 developed, preserved, conserved, acquired, or constructed under
202-3 this chapter or general law, including any improvements,
202-4 structures, facilities, and equipment and all other property of any
202-5 kind in connection with such improvements, structures, facilities,
202-6 and equipment and any lands, leaseholds, and easements and any
202-7 interests in any of the property described by this subdivision;
202-8 (23) to authorize and allow any of the persons
202-9 described by Subdivision (22), including the state and the United
202-10 States, and any corporation or agency of either the state or the
202-11 United States, and districts, agencies, cities, towns, persons,
202-12 organizations, associations, firms, corporations, entities, or
202-13 others, to participate with the authority in the joint
202-14 construction, acquisition, ownership, financing, operation, and
202-15 maintenance of the improvements, structures, facilities, and
202-16 equipment described by Subdivision (22) and any other property in
202-17 connection with the improvements, structures, facilities, and
202-18 equipment and such lands, leaseholds, easements, and interests in
202-19 the improvements, structures, facilities, and equipment and the
202-20 other property as the board determines necessary or proper for or
202-21 in connection with any corporate purpose, and to allow such persons
202-22 to receive such portion of the revenues derived from projects or
202-23 property described by this subdivision as the board determines
202-24 just, equitable, and proper; and
202-25 (24) to borrow money for its corporate purposes,
202-26 including the power to borrow money and accept grants from persons,
203-1 including the state and the United States or any corporation or
203-2 agency created or designated by the state or the United States,
203-3 and, in connection with any such loan or grant, to enter into such
203-4 agreements as the state or the United States or the corporations or
203-5 agency may require; and to make and issue negotiable bonds or notes
203-6 for funds borrowed, in the manner and to the extent provided in
203-7 this chapter, and to refund or refinance any outstanding bonds or
203-8 notes and to make and issue negotiable bonds or notes for that
203-9 purpose in the manner and to the extent provided in this chapter.
203-10 (b) Nothing in this chapter shall be construed to authorize
203-11 the issuance of any bonds, notes, or other evidences of
203-12 indebtedness of the authority except as specifically provided in
203-13 this chapter, and no issuance of bonds, notes, or other evidences
203-14 of indebtedness of the authority shall ever be authorized except by
203-15 this chapter or general law.
203-16 (c) Nothing in this chapter shall be construed as conferring
203-17 any water rights on the authority or as setting any priority of
203-18 rights. The authority shall obtain its water rights by application
203-19 to and permit from the commission as provided by general law, and
203-20 nothing in this chapter shall be construed as authorizing the
203-21 authority to make any regulation of the withdrawal of groundwater.
203-22 (d) To the extent the provisions of general law that are
203-23 adopted by reference in this chapter may be in conflict with the
203-24 express provisions of this chapter, the provisions of this chapter
203-25 shall prevail unless the general law is made cumulative. The
203-26 rights, powers, privileges, authority, and functions granted to the
204-1 authority under this chapter, and the authority itself, are subject
204-2 to Chapters 11, 12, and 26.
204-3 Sec. 258.005. CONTINUING OVERSIGHT. The powers and duties
204-4 of the authority as provided by this chapter are subject to the
204-5 continuing rights of oversight by the state. The oversight shall
204-6 be exercised through the commission. The commission shall be
204-7 charged with the authority and duty to approve, or to refuse to
204-8 approve, the adequacy of any plan or plans for flood control or
204-9 conservation improvement purposes devised by the authority for the
204-10 achievement of the plans and purposes intended in the creation of
204-11 the authority and which plans contemplate improvements
204-12 supervised by the state authorities under the provisions of general
204-13 law.
204-14 Sec. 258.006. BOARD OF DIRECTORS; COMPENSATION; VOTING
204-15 REQUIREMENTS. (a) The powers, rights, privileges, and functions
204-16 of the authority shall be exercised by a board, which shall consist
204-17 of nine directors. The board is a state board of a state agency as
204-18 contemplated by Section 30a, Article XVI, Texas Constitution.
204-19 (b) Each member of the board must be a freehold property
204-20 taxpayer of the state and must reside in one of the counties
204-21 included within the boundaries of the authority, but only one
204-22 director shall be appointed from any county.
204-23 (c) The directors are appointed by the governor from
204-24 nominations furnished the governor by the commission. The
204-25 appointments are subject to confirmation by the senate.
204-26 (d) Directors serve for staggered terms of six years with
205-1 the terms of one-third of the directors expiring February 1 of each
205-2 odd-numbered year. Each director shall hold office until the
205-3 expiration of the term for which the director was appointed and
205-4 until a successor is appointed and has qualified, unless removed
205-5 sooner as provided by this chapter.
205-6 (e) A director may be removed by the governor for
205-7 inefficiency, neglect of duty, or misconduct in office, after at
205-8 least 10 days' written notice of the charges and an opportunity to
205-9 be heard in person or by counsel at a public hearing. A vacancy
205-10 resulting from the death, resignation or removal of a director is
205-11 filled for the unexpired term by the governor.
205-12 (f) Each director shall qualify by taking the official oath
205-13 of office prescribed by general statute.
205-14 (g) Each director is entitled to receive $100 per day, or
205-15 such amount as may be prescribed by general law, for each day spent
205-16 in attending meetings of the board and any other business of the
205-17 authority that the board determines necessary, plus actual
205-18 traveling and other expenses.
205-19 (h) Until the adoption of bylaws setting the time and place
205-20 of regular meetings and the manner in which special meetings may be
205-21 called, meetings of the board shall be held at such times and
205-22 places as five of the directors may designate in writing.
205-23 (i) Five directors constitute a quorum at any meeting and,
205-24 except as otherwise provided in this chapter or in the bylaws, all
205-25 action may be taken by the affirmative vote of a majority of the
205-26 directors present at any such meeting, except that no contract that
206-1 involves an amount greater than $10,000 or that is to run for a
206-2 period longer than a year, and no bonds, notes, or other evidence
206-3 of indebtedness, and no amendment of the bylaws shall be valid
206-4 unless authorized or ratified by the affirmative vote of at least
206-5 five directors.
206-6 Sec. 258.007. OFFICERS, AGENTS, AND EMPLOYEES. (a) The
206-7 board shall select a secretary, who shall keep true and complete
206-8 records of all proceedings of the board. Until the appointment of
206-9 a secretary, or in the event of the secretary's absence or
206-10 inability to act, a secretary pro tempore shall be selected by the
206-11 board.
206-12 (b) The board shall select a general manager, who shall be
206-13 the chief executive officer of the authority, and a treasurer.
206-14 (c) The officers shall have such powers and duties, shall
206-15 hold office for such term, and shall be subject to removal in such
206-16 manner as may be provided in the bylaws of the authority. The
206-17 board shall set the compensation of the officers.
206-18 (d) The board may appoint such officers, agents, and
206-19 employees, may set their compensation and term of office and the
206-20 method by which they may be removed, and may delegate to them the
206-21 power and duties the board considers appropriate.
206-22 Sec. 258.008. AUTHORITY FUNDS; SURETY BONDS. (a) The funds
206-23 of the authority may be disbursed only on checks, drafts, orders,
206-24 or other instruments signed by the persons authorized to sign those
206-25 instruments by the bylaws or by a resolution concurred in by not
206-26 less than five directors.
207-1 (b) The general manager, the treasurer, and all other
207-2 officers, agents, and employees of the authority charged with the
207-3 collection, custody, or payment of any funds of the authority shall
207-4 give bond conditioned on the faithful performance of the person's
207-5 duties and an accounting of all funds and property of the authority
207-6 coming into the person's hands. The bonds shall be in a form and
207-7 an amount and with a surety company authorized to do business in
207-8 the state approved by the board. The premiums on the bonds shall
207-9 be paid by the authority and charged as an operating expense.
207-10 Sec. 258.009. AUTHORITY OFFICE; ACCOUNTS; RECORDS; AUDIT.
207-11 (a) The domicile of the authority shall be in the City of New
207-12 Braunfels, Comal County, where the authority shall maintain an
207-13 office, in charge of its general manager.
207-14 (b) The authority shall keep complete and accurate accounts
207-15 conforming to approved methods of accounting principles.
207-16 (c) The accounts and all contracts, documents, and records
207-17 of the authority shall be kept at an official office of the
207-18 authority. The accounts and contracts shall be open to public
207-19 inspection at all reasonable times.
207-20 (d) The board shall have an audit made of the books of
207-21 account and financial records of the authority for each fiscal
207-22 year.
207-23 (e) The audit required under Subsection (d) must be:
207-24 (1) completed not later than the 90th day after the
207-25 last day of each fiscal year; and
207-26 (2) conducted by the state auditor, an independent
208-1 certified public accountant, or a firm of certified public
208-2 accountants.
208-3 (f) Copies of a written report of the audit required under
208-4 Subsection (d), certified to by the accountant or accountants,
208-5 shall be placed and kept on file with the commission, with the
208-6 comptroller, and at the official office and shall be open to public
208-7 inspection at all reasonable times.
208-8 Sec. 258.010. CONFLICT OF INTEREST; PENALTY. A director,
208-9 officer, agent, or employee of the authority may not have or obtain
208-10 an interest, directly or indirectly, in a contract for the purchase
208-11 of property or construction of work by or for the authority. If a
208-12 person described by this section has or obtains an interest in a
208-13 contract for the purchase of property or construction of work by or
208-14 for the authority, the person is guilty of a felony and on
208-15 conviction is subject to a fine in an amount not to exceed $10,000
208-16 or to confinement in the county jail for not less than one year or
208-17 more than 10 years, or both a fine and confinement.
208-18 Sec. 258.011. RATES AND CHARGES. (a) The board shall
208-19 establish and collect rates and other charges for the sale or use
208-20 of water, water connections, power, electric energy, and all other
208-21 services sold, furnished, or supplied by the authority. The fees
208-22 and charges shall be reasonable and nondiscriminatory and
208-23 sufficient to produce revenues adequate to:
208-24 (1) pay all expenses necessary to the operation and
208-25 maintenance and replacements and additions to the properties and
208-26 facilities of the authority;
209-1 (2) pay the interest on, the principal of, and the
209-2 premium, if any, on all bonds issued under this chapter when and as
209-3 the interest, principal, and premium become due and payable;
209-4 (3) pay all sinking fund and reserve fund payments
209-5 agreed to be made with respect to bonds and payable out of the
209-6 revenues, when and as the payments become due and payable;
209-7 (4) fulfill the terms of agreements made with the
209-8 holders of bonds or with a person in their behalf; and
209-9 (5) discharge all other lawful obligations of the
209-10 authority as the obligations become due.
209-11 (b) From the revenues received in excess of those required
209-12 for the purposes provided in Subsections (a)(1)-(3) and (5), the
209-13 board may establish a reasonable depreciation and emergency fund,
209-14 may retire, by purchase and cancellation or redemption, bonds
209-15 issued under this chapter, or may apply the excess revenues to any
209-16 corporate purpose.
209-17 (c) The rates and charges of the authority shall not be in
209-18 excess of what is necessary to fulfill the obligations imposed on
209-19 the authority by this chapter. Nothing in this chapter shall be
209-20 construed as depriving the state of its power to regulate and
209-21 control fees or charges to be collected for the use of water, water
209-22 connections, power, electric energy, or other service, provided
209-23 that the state pledges to and agrees with the purchasers and
209-24 successive holders of bonds issued under this chapter that the
209-25 state will not limit or alter the power vested in the authority by
209-26 this chapter to establish and collect such fees and charges as will
210-1 produce revenues sufficient to pay the items specified in
210-2 Subsection (a) or in any way impair the rights or remedies of the
210-3 holders of the bonds, or of any person in their behalf, until the
210-4 bonds, together with the interest on the bonds and any premium,
210-5 along with interest on unpaid installments of interest and all
210-6 costs and expenses in connection with an action or proceeding by or
210-7 on behalf of the bondholders and all other obligations of the
210-8 authority in connection with the bonds, are fully met and
210-9 discharged.
210-10 (d) If the authority enters into agreements to lease, sell,
210-11 or otherwise dispose of any property or facilities to any person,
210-12 the person shall be subject to such regulations and control of fees
210-13 and charges by the state as may be provided by agreement or general
210-14 law, but the board shall set payments under the leases or other
210-15 contracts and agreements for the use or sale of any property in
210-16 order that the payments, together with any other pledged revenues,
210-17 will be sufficient to pay the interest on, the principal of, and
210-18 any premium on all bonds to which the payments are pledged when and
210-19 as the interest, principal, and premium become due and payable; to
210-20 pay all sinking fund and reserve fund payments agreed to be made
210-21 with respect to the bonds and payable out of such payments, when
210-22 and as the payments become due and payable; and to fulfill the
210-23 terms of any agreement made with the holders of the bonds or any
210-24 person in their behalf and to discharge all other obligations of
210-25 the authority in connection with the bonds as and when the
210-26 obligations become due.
211-1 Sec. 258.012. PAYMENT OF DEBTS. Each indebtedness,
211-2 liability, or obligation of the authority for the payment of money,
211-3 however entered into or incurred and whether arising from contract,
211-4 implied contract, or otherwise, shall be payable:
211-5 (1) out of the revenues received by the authority with
211-6 respect to its properties, subject to any prior lien on the
211-7 revenues conferred by resolution authorizing the issuance of bonds
211-8 adopted as provided by this chapter; or
211-9 (2) if the board so determines, out of the proceeds of
211-10 sale by the authority of bonds payable solely from revenues.
211-11 Sec. 258.013. ISSUANCE OF BONDS. (a) The authority may
211-12 issue bonds or notes as provided in this section for any corporate
211-13 purpose. Bonds or notes, hereinafter called "bonds," may be:
211-14 (1) sold for cash, at public or private sale, at a
211-15 price the board determines, provided that the interest cost of the
211-16 money received for the bonds, computed to maturity, shall not
211-17 exceed 10 percent per year;
211-18 (2) issued on terms the board determines in exchange
211-19 for property of any kind, real, personal, or mixed, or an interest
211-20 in property that the board determines necessary or convenient for
211-21 any corporate purpose; or
211-22 (3) issued in exchange for like principal amounts of
211-23 other obligations of the authority, matured or unmatured.
211-24 (b) The proceeds from the sale of bonds shall be deposited
211-25 in a bank or banks or a trust company or trust companies, and shall
211-26 be paid out pursuant to terms and conditions agreed between the
212-1 authority and the purchasers of the bonds. Bonds shall be
212-2 authorized by a resolution or resolutions of the board concurred in
212-3 by at least five members. Bonds shall bear such date or dates;
212-4 mature at such time or times; bear interest at such rate or rates,
212-5 which may be fixed, variable, floating, or otherwise, not exceeding
212-6 the maximum rate authorized by Chapter 1204, Government Code,
212-7 payable annually, semiannually, or otherwise; be in such
212-8 denominations; be in such form, either coupon or registered; carry
212-9 such registration privileges as to principal only or as to both
212-10 principal and interest and as to exchange of coupon bonds for
212-11 registered bonds or vice versa and exchange of bonds of one
212-12 denomination for bonds of other denominations; be executed in such
212-13 manner; and be payable at such place or places within or outside
212-14 the state, as such resolution or resolutions may provide.
212-15 (c) A resolution or resolutions authorizing bonds may
212-16 contain provisions, which shall be part of the contract between the
212-17 authority and the initial and successive holders of the bonds:
212-18 (1) reserving the right to redeem the bonds or
212-19 requiring the redemption of the bonds, at such time or times, in
212-20 such amounts, and at such prices, not exceeding 105 percent of the
212-21 principal amount of the bonds plus accrued interest, as may be
212-22 provided in the resolution;
212-23 (2) providing for the setting aside of sinking funds
212-24 or reserve funds and the regulation and disposition of those funds;
212-25 (3) pledging, to secure the payment of the principal
212-26 of and interest on the bonds and of the sinking fund or reserve
213-1 fund payments agreed to be made with respect to the bonds, all or
213-2 any part of the gross or net revenues received by the authority
213-3 with respect to the property, real, personal, or mixed, to be
213-4 acquired or constructed with the bonds or the proceeds of the
213-5 bonds, or all or part of the gross or net revenues received by the
213-6 authority from any source;
213-7 (4) prescribing the purposes to which the bonds or
213-8 bonds later issued, or the proceeds of the bonds, may be applied;
213-9 (5) agreeing to set and collect rates and charges
213-10 sufficient to produce revenues adequate to pay the items specified
213-11 in Section 258.011(a) and prescribing the use and disposition of
213-12 all revenues;
213-13 (6) prescribing limitations on the issuance of
213-14 additional bonds and subordinate lien bonds and on the agreements
213-15 that may be made with the purchasers and successive holders of the
213-16 bonds;
213-17 (7) relating to the construction, extension,
213-18 improvement, reconstruction, operation, maintenance, and repair of
213-19 the properties of the authority and the carrying of insurance on
213-20 all or part of the properties covering loss or damage or loss of
213-21 use and occupancy resulting from specified risks;
213-22 (8) setting the procedure, if any, by which, if the
213-23 authority so desires, the terms of a contract with the holders of
213-24 the bonds may be amended or abrogated, the amount of bonds whose
213-25 holders must consent to the amendment or abrogation, and the manner
213-26 in which the consent may be given;
214-1 (9) providing for the execution and delivery by the
214-2 authority to a bank or trust company authorized by law to accept
214-3 trusts, or to the United States or any officer or agency of the
214-4 United States, of indentures and agreements for the benefit of the
214-5 holders of the bonds setting forth any or all of the agreements
214-6 authorized by this section to be made with or for the benefit of
214-7 the holders of such bonds, and any other provisions that may be
214-8 customary in such indentures or agreements; and
214-9 (10) making other provisions, not inconsistent with
214-10 the provisions of this chapter, as the board may approve.
214-11 Sec. 258.014. DEFAULT PROCEDURES. (a) A resolution
214-12 authorizing the issuance of bonds and any indenture or agreement
214-13 entered into pursuant to the resolution may include provisions
214-14 regarding a default on:
214-15 (1) the payment of the interest on any bonds as the
214-16 interest becomes due and payable;
214-17 (2) the payment of the principal of any bonds as they
214-18 become due and payable, whether at maturity, by call for
214-19 redemption, or otherwise; or
214-20 (3) the performance of an agreement made with the
214-21 purchasers or successive holders of any bonds.
214-22 (b) If a default described by Subsection (a) has occurred
214-23 and has continued for the period, if any, prescribed by the
214-24 resolution authorizing the issuance of the bonds, the trustee under
214-25 the indenture or indentures entered into with respect to the bonds
214-26 authorized by the resolution or resolutions, or, if there is no
215-1 indenture, a trustee appointed in the manner provided in the
215-2 resolution by the holders of 25 percent in aggregate principal
215-3 amount of the bonds authorized by the resolution or resolutions and
215-4 then outstanding, and on the written request of those bondholders,
215-5 shall, in the trustee's own name but for the equal and
215-6 proportionate benefit of the holders of all the bonds, and with or
215-7 without having possession of the bonds:
215-8 (1) by mandamus or other suit, action, or proceeding
215-9 at law or in equity, enforce all rights of the holders of the
215-10 bonds;
215-11 (2) bring suit on the bonds or the appurtenant
215-12 coupons;
215-13 (3) by action or suit in equity, require the authority
215-14 to account as if it were the trustee of an express trust for the
215-15 bondholders;
215-16 (4) by action or suit in equity, enjoin any acts or
215-17 things which may be unlawful or in violation of the rights of the
215-18 holders of the bonds; or
215-19 (5) after such notice to the authority as the
215-20 resolution may provide, declare the principal of all of the bonds
215-21 due and payable, and if all defaults have been made good, then with
215-22 the written consent of the holders of 25 percent in aggregate
215-23 principal amount of the bonds then outstanding, annul the
215-24 declaration and its consequences; provided, however, that the
215-25 holders of more than a majority in principal amount of the bonds
215-26 authorized by the resolution and then outstanding shall, by written
216-1 instrument delivered to the trustee, have the right to direct and
216-2 control all action taken or to be taken by the trustee under this
216-3 section.
216-4 (c) A resolution, indenture, or agreement relating to bonds
216-5 may provide that in a suit, action, or proceeding under this
216-6 section, the trustee, whether or not all of the bonds have been
216-7 declared due and payable and with or without possession of any of
216-8 the bonds, shall be entitled as of right to the appointment of a
216-9 receiver who may enter and take possession of all or any part of
216-10 the properties of the authority and operate and maintain the
216-11 properties and set, collect, and receive rates and charges
216-12 sufficient to provide revenues adequate to pay the items set forth
216-13 in Section 258.011(a) and the costs and disbursements of the suit,
216-14 action, or proceeding and apply such revenues in conformity with
216-15 the provisions of this chapter and the resolution or resolutions
216-16 authorizing the bonds.
216-17 (d) In a suit, action, or proceeding by a trustee under this
216-18 section, the reasonable fees, counsel fees, and expenses of the
216-19 trustee and of the receiver or receivers, if any, constitute
216-20 taxable disbursements, and all costs and disbursements allowed by
216-21 the court shall be a first charge on any revenues pledged to secure
216-22 the payment of the bonds.
216-23 (e) Subject to the provisions of the constitution, the
216-24 courts of Comal County shall have jurisdiction of any suit, action,
216-25 or proceeding under this section by a trustee on behalf of the
216-26 bondholders and of all property involved in the suit, action, or
217-1 proceeding.
217-2 (f) In addition to the powers specifically provided by this
217-3 section, the trustee shall have and possess all powers necessary or
217-4 appropriate for the exercise of the powers specifically provided or
217-5 incident to the general representation of the bondholders in the
217-6 enforcement of their rights.
217-7 Sec. 258.015. INTERIM BONDS. Pending the issuance of
217-8 definitive bonds, the authority is authorized to make and issue
217-9 interim bonds. The interim bonds will be taken up with the
217-10 proceeds of the definitive bonds, or the definitive bonds may be
217-11 issued and delivered in exchange for and in substitution of the
217-12 interim bonds. After exchange and substitution the authority shall
217-13 file proper certificates with the comptroller as to the exchange,
217-14 substitution, and cancellation, and the certificates shall be
217-15 recorded by the comptroller in the same manner as the record of
217-16 proceedings authorizing the issuance of the bonds. The authority
217-17 may also make and issue temporary bonds for the purpose of interim
217-18 financing and may make agreements or other provision to refinance
217-19 the temporary bonds with bonds to provide permanent financing at
217-20 the time, in the manner, and on the conditions determined by the
217-21 board.
217-22 Sec. 258.016. APPROVAL BY ATTORNEY GENERAL. (a) Before any
217-23 bonds may be sold by the authority, a certified copy of the
217-24 proceedings for the issuance of the bonds, including the form of
217-25 the bonds, together with any other information which the attorney
217-26 general may require, shall be submitted to the attorney general.
218-1 If the attorney general finds that the bonds have been issued in
218-2 accordance with law, the attorney general shall approve the bonds
218-3 and execute a certificate to that effect, which shall be filed in
218-4 the office of the comptroller and be recorded in a record kept for
218-5 that purpose. The comptroller shall register the bonds if the
218-6 attorney general has filed with the comptroller his certificate
218-7 approving the bonds and the proceedings for the issuance of the
218-8 bonds as provided in this section. No bonds shall be issued until
218-9 the bonds have been registered by the comptroller.
218-10 (b) Bonds approved by the attorney general and registered by
218-11 the comptroller are valid and binding obligations of the authority
218-12 and are incontestable for any cause after their registration.
218-13 (c) If bonds recite that they are secured by a pledge of the
218-14 proceeds of a contract, lease, sale, or other agreement, herein
218-15 called "contract," a copy of the contract and the proceedings of
218-16 the contracting parties shall also be submitted to the attorney
218-17 general. If the bonds have been authorized and the contracts made
218-18 in compliance with law, the attorney general shall approve the
218-19 bonds and contracts, and the bonds shall then be registered by the
218-20 comptroller. When so approved, the bonds and the contracts are
218-21 valid and binding and are incontestable for any cause after their
218-22 registration.
218-23 Sec. 258.017. REFUNDING BONDS. (a) The authority may issue
218-24 bonds or notes, herein called "refunding bonds," for the purpose of
218-25 refunding or refinancing any outstanding bonds or notes, herein
218-26 called "bonds," authorized and issued by the authority pursuant to
219-1 this chapter or other law and the interest and premium, if any, on
219-2 the bonds to maturity or on any earlier redemption date specified
219-3 in the resolution authorizing the issuance of the refunding bonds.
219-4 Refunding bonds may be issued to refund more than one series of
219-5 outstanding bonds, may combine the pledges of the outstanding bonds
219-6 for the security of the refunding bonds, or may be secured by other
219-7 or additional revenues.
219-8 (b) Provisions of this chapter with reference to the
219-9 issuance of bonds, the terms and provisions of the bonds, their
219-10 approval by the attorney general, and the remedies of the
219-11 bondholders shall be applicable to refunding bonds. Refunding
219-12 bonds shall be registered by the comptroller on surrender and
219-13 cancellation of the bonds to be refunded, but in lieu of that
219-14 procedure, the resolution authorizing the issuance of refunding
219-15 bonds may provide that they shall be sold and the proceeds of the
219-16 sale deposited at the places at which the original bonds are
219-17 payable, in which case the refunding bonds may be issued in an
219-18 amount sufficient to pay the interest and premium, if any, on the
219-19 original bonds to their maturity date or specified earlier
219-20 redemption date, and the comptroller shall register the refunding
219-21 bonds without concurrent surrender and cancellation of the original
219-22 bonds. The authority may also refund any outstanding bonds in the
219-23 manner provided by any applicable general law.
219-24 Sec. 258.018. BONDS AS INVESTMENT SECURITY. Bonds issued by
219-25 the authority pursuant to the provisions of this chapter constitute
219-26 investment securities under the Business & Commerce Code.
220-1 Sec. 258.019. PURCHASE OF BONDS BY AUTHORITY. The authority
220-2 may, out of funds available for the purpose, purchase bonds issued
220-3 by the authority at a price not exceeding the redemption price
220-4 applicable at the time of the purchase, or if the bonds are not
220-5 redeemable, at a price not exceeding the principal amount of the
220-6 bonds plus accrued interest. Bonds so purchased shall be canceled,
220-7 and no bonds shall ever be issued in lieu of the canceled bonds.
220-8 Sec. 258.020. BONDS EXEMPT FROM TAXATION. Bonds and the
220-9 interest on the bonds issued under the provisions of this chapter
220-10 are exempt from taxation, except for inheritance taxes, by the
220-11 state or any municipal corporation, county, or other political
220-12 subdivision or taxing district of the state.
220-13 Sec. 258.021. BONDS ELIGIBLE FOR INVESTMENTS AND DEPOSITS.
220-14 Bonds of the authority are legal, eligible, and authorized
220-15 investments for banks, savings and loan associations, insurance
220-16 companies, fiduciaries, trustees, and guardians and for the sinking
220-17 funds of cities, towns, villages, counties, school districts, or
220-18 other political corporations or subdivisions of the state. The
220-19 bonds are eligible to secure the deposit of all public funds of the
220-20 state and of cities, towns, villages, counties, school districts,
220-21 or other political corporations or subdivisions of the state, and
220-22 the bonds are lawful and sufficient security for such deposits to
220-23 the extent of their face value when accompanied by all unmatured
220-24 coupons.
220-25 Sec. 258.022. CHAPTER AS FULL AUTHORITY. This chapter,
220-26 without reference to other statutes of the state, constitutes full
221-1 authority for the authorization and issuance of bonds under this
221-2 chapter. No other act or law with regard to the authorization or
221-3 issuance of obligations or the deposit of the proceeds of the
221-4 obligations, or in any way impeding or restricting the carrying out
221-5 of the acts authorized by this chapter, shall be construed as
221-6 applying to any proceedings or acts under this chapter.
221-7 Sec. 258.023. ADDITIONAL SPECIFIC POWERS. The authority may
221-8 enter into and carry out contracts or establish or comply with
221-9 rules and regulations concerning labor and materials and other
221-10 related matters in connection with any project or projects as the
221-11 authority deems desirable or as requested by the state, the United
221-12 States, or any corporation or agency created, designated, or
221-13 established by the state or the United States that may assist in
221-14 the financing of the project or projects.
221-15 Sec. 258.024. PUBLIC USE OF SURPLUS LANDS OF THE AUTHORITY.
221-16 The authority shall not prevent free public use of its surplus
221-17 lands for recreation purposes and for hunting and fishing except at
221-18 such point where, in the opinion of the board, the use would
221-19 interfere with the proper conduct of business.
221-20 Sec. 258.025. LIBERAL CONSTRUCTION. This chapter and all of
221-21 its terms and provisions shall be liberally construed to effectuate
221-22 the purposes set forth in this chapter.
221-23 Sec. 258.026. ACT CREATING OTHER DISTRICT NOT REPEALED.
221-24 This chapter shall not be construed as repealing Chapter 75, Acts
221-25 of the 43rd Legislature, 1st Called Session, 1933, which created a
221-26 conservation and reclamation district, and the entity created under
222-1 that chapter may, by resolution of its board of directors, merge
222-2 with the authority.
222-3 CHAPTER 259. GULF COAST WATER AUTHORITY
222-4 Sec. 259.001. CREATION. (a) A conservation and reclamation
222-5 district to be known as the "Gulf Coast Water Authority" is
222-6 created. The authority is a governmental agency and body politic
222-7 and corporate and a municipal corporation.
222-8 (b) The authority is created under and is essential to
222-9 accomplish the purposes of Section 59, Article XVI, Texas
222-10 Constitution.
222-11 Sec. 259.002. DEFINITIONS. In this chapter:
222-12 (1) "Authority" means the Gulf Coast Water Authority.
222-13 (2) "Board" means the board of directors of the
222-14 authority.
222-15 (3) "Director" means a member of the board.
222-16 Sec. 259.003. TERRITORY. The authority comprises all the
222-17 territory contained within Galveston County, and the boundaries of
222-18 the authority are the same as and coextensive with the boundaries
222-19 of Galveston County.
222-20 Sec. 259.004. POWERS AND DUTIES. (a) Except as expressly
222-21 limited by this chapter, the authority may exercise all rights,
222-22 powers, privileges, and authority conferred by the general laws of
222-23 this state applicable to municipal utility districts created under
222-24 authority of Section 59, Article XVI, Texas Constitution, including
222-25 those conferred by Chapters 49 and 54, but to the extent that the
222-26 provisions of such general laws may be in conflict with or
223-1 inconsistent with the provisions of this chapter, the provisions of
223-2 this chapter prevail. All such general laws are adopted and
223-3 incorporated by reference with the same effect as if incorporated
223-4 in full in this chapter.
223-5 (b) The authority may make, construct, or otherwise acquire
223-6 improvements, either within or outside the boundaries of the
223-7 authority, necessary to carry out the powers and authority granted
223-8 by this chapter and general law and may exercise the power of
223-9 eminent domain for such purposes; provided, however, that the
223-10 authority shall not have the power of eminent domain as to all or
223-11 any part of the water supply, property, works, or facilities of any
223-12 private person or persons or of any private or public corporation
223-13 or association engaged in the business of supplying water in
223-14 Galveston County to any class of consumers for any use on June 18,
223-15 1965. This subsection does not restrict the power of the authority
223-16 to acquire necessary crossing easements and rights-of-way.
223-17 (c) The authority may conserve, store, transport, treat and
223-18 purify, distribute, sell, and deliver water, both surface water and
223-19 groundwater, to persons, corporations, both public and private,
223-20 political subdivisions of the state, and others and may purchase,
223-21 construct, or lease all property, works, and facilities, both
223-22 within and outside the authority, necessary or useful for such
223-23 purposes.
223-24 (d) The authority may acquire water supplies from sources
223-25 within or outside the boundaries of the authority, may sell,
223-26 transport, and deliver water to customers within or outside the
224-1 authority, and may acquire all properties and facilities necessary
224-2 or useful for such purposes. For any or all of such purposes the
224-3 authority may enter into contracts with persons, corporations, both
224-4 public and private, and political subdivisions of the state for
224-5 such periods and on such terms and conditions as the board may
224-6 consider appropriate.
224-7 (e) Subject to the provisions of this chapter, the authority
224-8 may sell, lease, or exchange property of any kind, or any interest
224-9 in property, that is not necessary to the carrying on of the
224-10 business of the authority or whose sale, lease, or exchange, in the
224-11 judgment of the board, is necessary for the exercise of the powers,
224-12 rights, privileges, and functions conferred on the authority by
224-13 this chapter or by Chapters 49 and 54.
224-14 (f) Subject to the provisions of this chapter, the authority
224-15 may acquire by purchase, lease, gift, or otherwise and may
224-16 maintain, use, and operate any property of any kind, or any
224-17 interest in property, within or outside the boundaries of the
224-18 authority, necessary to the exercise of the powers, rights,
224-19 privileges, and functions conferred on the authority by this
224-20 chapter or by Chapters 49 and 54.
224-21 (g) The authority may construct, extend, improve, maintain,
224-22 and reconstruct, cause to be constructed, extended, improved,
224-23 maintained, and reconstructed, and use and operate facilities of
224-24 any kind necessary to the exercise of its powers, rights,
224-25 privileges, and functions.
224-26 (h) The authority may sue and be sued in its corporate name.
225-1 (i) The authority may adopt, use, and alter a corporate
225-2 seal.
225-3 (j) The authority may invest and reinvest its funds.
225-4 (k) The authority may make bylaws for management and
225-5 regulation of its affairs.
225-6 (l) The authority may appoint officers, agents, and
225-7 employees and may prescribe their duties and fix their
225-8 compensation.
225-9 (m) The authority may make contracts and execute instruments
225-10 necessary to the exercise of the powers, rights, privileges, and
225-11 functions conferred by this chapter or Chapters 49 and 54 for such
225-12 term and with such provisions as the board may determine to be in
225-13 the best interests of the authority, including contracts with
225-14 persons including the state, the United States, and any corporation
225-15 or agency of the state or the United States and districts, cities,
225-16 towns, persons, organizations, firms, corporations, or other
225-17 entities as the board considers necessary or proper for or in
225-18 connection with any of its corporate purposes.
225-19 (n) The authority may borrow money for its corporate
225-20 purposes and may borrow money and accept grants from persons,
225-21 including the state, the United States, or any corporation, agency,
225-22 or entity created or designated by the state or the United States,
225-23 and in connection with any such loan or grant may enter into such
225-24 agreements as the state, the United States, or any such
225-25 corporation, agency, or entity may require. The authority may
225-26 issue negotiable bonds or notes for money borrowed, in the manner
226-1 and to the extent provided in this chapter, and may refund or
226-2 refinance any outstanding bonds or notes and make and issue
226-3 negotiable bonds or notes for that purpose in the manner provided
226-4 by this chapter.
226-5 Sec. 259.005. LIMITATIONS ON AUTHORITY. (a) The authority
226-6 may not levy and collect taxes on any property, real, personal, or
226-7 mixed, within the boundaries of the authority and may not issue
226-8 bonds or create indebtedness that would in any way be payable from
226-9 ad valorem taxes levied by the authority on property within the
226-10 authority.
226-11 (b) The authority shall have none of the powers conferred by
226-12 general law for the purposes of the collection, transportation,
226-13 processing, disposal, and control of domestic, industrial, or
226-14 communal wastes and the gathering, conducting, directing, and
226-15 controlling of local storm waters or other local harmful excesses
226-16 of water.
226-17 (c) Nothing in this chapter shall be construed as impairing
226-18 or affecting the powers, authority, rights, or duties of any
226-19 municipal corporation or conservation and reclamation district
226-20 previously or subsequently created within, or partially within, the
226-21 boundaries of the authority or as requiring any such corporation or
226-22 district to contract with the authority for its water supply.
226-23 (d) If the authority in the exercise of the power of eminent
226-24 domain or power of relocation or any other power granted under this
226-25 chapter makes necessary the relocation, raising, rerouting,
226-26 changing the grade, or altering the construction of any highway,
227-1 railroad, electric transmission line, telephone or telegraph
227-2 properties and facilities, or pipeline, all such necessary
227-3 relocation, raising, rerouting, changing the grade, or alteration
227-4 of construction shall be accomplished at the sole expense of the
227-5 authority. In this subsection "sole expense" means the actual cost
227-6 of relocation, raising, rerouting, changing the grade, or
227-7 alteration of construction in providing comparable replacement
227-8 without enhancement of the facilities after deducting the net
227-9 salvage value derived from the old facility.
227-10 (e) Nothing in this chapter shall be construed as conferring
227-11 any water rights on the authority or as setting any priority of
227-12 rights.
227-13 (f) Nothing in this chapter shall be construed as
227-14 authorizing the authority to make any regulation of the withdrawal
227-15 of groundwater.
227-16 (g) The powers, rights, privileges, and functions conferred
227-17 on the authority shall be subject to the continuing rights of
227-18 supervision by the state, which shall be exercised by the
227-19 commission. The authority shall obtain approval of its projects,
227-20 and they shall be supervised as provided by Section 49.182.
227-21 Sec. 259.006. BOARD OF DIRECTORS. (a) The management and
227-22 control of the authority is vested in a board of seven directors.
227-23 The membership of the board must represent the geographic and
227-24 ethnic diversity of the county. Three of the members appointed by
227-25 the commissioners court must be registered professional engineers
227-26 under the laws of Texas. Vacancies on the board, whether by death,
228-1 resignation, or termination of the term of office, are filled by
228-2 appointment by the commissioners court of Galveston County. All
228-3 terms of office are for a period of two years. Terms are
228-4 staggered, with the terms of three directors expiring one year and
228-5 the terms of four directors expiring the next year.
228-6 (b) One director shall be appointed by the commissioners
228-7 court of Galveston County on the recommendation of the city council
228-8 of the City of Galveston. The remaining six directors shall be
228-9 appointed by the commissioners court of Galveston County, with two
228-10 of the directors appointed at large and the remaining four
228-11 directors appointed on the written recommendation of advisory
228-12 committees appointed by the board. Two directors shall be
228-13 recommended by the Mainland Municipal Advisory Committee and two
228-14 directors by the Industrial Advisory Committee. The commissioners
228-15 court of Galveston County is entitled to accept or reject the
228-16 recommendations made to the court by the advisory committees. If a
228-17 recommendation made by an advisory committee is rejected, the
228-18 advisory committee shall submit additional recommendations to the
228-19 court.
228-20 (c) The Industrial Advisory Committee is composed of one
228-21 representative of each industrial customer of the authority. The
228-22 Mainland Municipal Advisory Committee is composed of one
228-23 representative of each municipal or water district customer of the
228-24 authority that uses at least 2 million gallons of water per day.
228-25 The names of the representatives of each of the committees shall be
228-26 submitted to the board by the respective industrial and municipal
229-1 or water district customers. The board shall submit the names of
229-2 the advisory committee members to the commissioners court of
229-3 Galveston County, which shall record the names in the minutes of
229-4 the court.
229-5 Sec. 259.007. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
229-6 DEPOSITS. The bonds of the authority are legal and authorized
229-7 investments for banks, savings banks, trust companies, building and
229-8 loan associations, savings and loan associations, insurance
229-9 companies, fiduciaries, and trustees and for the sinking funds of
229-10 cities, towns, villages, counties, school districts, or other
229-11 political corporations or subdivisions of the state. The bonds are
229-12 eligible to secure the deposit of all public funds of the state and
229-13 all public funds of cities, towns, villages, counties, school
229-14 districts, or other political corporations or subdivisions of the
229-15 state, and the bonds shall be lawful and sufficient security for
229-16 such deposits to the extent of their value when accompanied by all
229-17 unmatured coupons.
229-18 Sec. 259.008. ISSUANCE OF BONDS. (a) The authority may
229-19 issue, from time to time, bonds as authorized by this chapter for
229-20 any corporate purpose. The bonds may be:
229-21 (1) sold for cash, at public or private sale, at such
229-22 price or prices as the board determines, provided that the net
229-23 effective interest rate, calculated in accordance with Chapter
229-24 1204, Government Code, does not exceed 10 percent;
229-25 (2) issued on such terms as the board determines in
229-26 exchange for property of any kind, real, personal, or mixed, or any
230-1 interest in property, that the board determines necessary for any
230-2 corporate purpose; or
230-3 (3) issued in exchange for like principal amounts of
230-4 other obligations of the authority, matured or unmatured.
230-5 (b) The proceeds of the sale of bonds shall be deposited in
230-6 such bank or banks or trust company or trust companies, and shall
230-7 be paid out pursuant to such terms and conditions, as may be agreed
230-8 between the authority and the purchasers of the bonds.
230-9 (c) Bonds of the authority must be authorized by resolution
230-10 of the board and shall bear such date or dates, mature at such time
230-11 or times, bear interest payable annually, semiannually, or
230-12 otherwise, be in such denominations, be in such form, either coupon
230-13 or registered, carry such registration privileges as to principal
230-14 only or as to both principal and interest and as to exchange of
230-15 coupon bonds for registered bonds, or vice versa, and exchange of
230-16 bonds of one denomination for bonds of other denominations, be
230-17 executed in such manner and be payable at such place or places,
230-18 within or outside the state, as the resolution may provide.
230-19 (d) A resolution authorizing bonds may contain provisions,
230-20 which shall be part of the contract between the authority and the
230-21 purchasers or successive holders of the bonds:
230-22 (1) reserving the right to redeem the bonds or
230-23 requiring the redemption of the bonds, at such time or times, in
230-24 such amounts, and at such prices, not exceeding 105 percent of the
230-25 principal amount of the bonds, plus accrued interest, as may be
230-26 provided;
231-1 (2) providing for the setting aside of sinking funds
231-2 or reserve funds and the regulation and disposition of those funds;
231-3 (3) pledging, to secure the payment of the principal
231-4 of and interest on the bonds and of the sinking fund or reserve
231-5 fund payments agreed to be made with respect to the bonds, all or
231-6 any part of the gross or net revenues received by the authority
231-7 with respect to the property, real, personal, or mixed, to be
231-8 acquired or constructed with the bonds or the proceeds of the
231-9 bonds, or all or part of the gross or net revenues received by the
231-10 authority from whatever source derived;
231-11 (4) prescribing the purposes to which the bonds or
231-12 any bonds to be issued later, or the proceeds of bonds, may be
231-13 applied;
231-14 (5) agreeing to set and collect rates and charges
231-15 sufficient to produce revenues adequate to pay (A) all expenses
231-16 necessary to the operation and maintenance and replacements and
231-17 additions to the properties and facilities of the authority; (B)
231-18 the principal of and the interest and premium, if any, on bonds
231-19 issued under this chapter as the bonds, interest, and premiums
231-20 become due and payable; (C) all sinking fund and reserve fund
231-21 payments agreed to be made with respect to the bonds out of such
231-22 revenues as the payments become due and payable, and agreeing to
231-23 fulfill the terms of any agreements made with the holders of the
231-24 bonds or with any person on their behalf and to discharge all other
231-25 lawful obligations of the authority as and when they become due;
231-26 (6) prescribing limitations on the issuance of
232-1 additional bonds and subordinate lien bonds and on the agreements
232-2 that may be made with the purchasers and successive holders of such
232-3 bonds;
232-4 (7) relating to the construction, extension,
232-5 improvement, reconstruction, operation, maintenance, and repair of
232-6 the properties of the authority and carrying insurance on all or
232-7 any part of the properties covering loss or damage or loss of use
232-8 and occupancy resulting from specified risks;
232-9 (8) setting the procedure, if any, by which, if the
232-10 authority so desires, the terms of a contract with the holders of
232-11 the bonds may be amended or abrogated, the amount of the bonds
232-12 whose holders must consent to the amendment or abrogation, and the
232-13 manner in which such consent may be given;
232-14 (9) providing for the execution and delivery by the
232-15 authority to a bank or trust company authorized by law to accept
232-16 trusts, or to the United States or any officer or agency of the
232-17 United States, of indentures and agreements for the benefit of the
232-18 holders of the bonds and such other provisions as may be customary
232-19 in such indentures or agreements; and
232-20 (10) making such other provisions, not inconsistent
232-21 with the provisions of this chapter, as the board may approve.
232-22 (e) The board may declare an emergency in the matter of
232-23 funds not being available to pay the principal of and interest on
232-24 bonds of the authority or to meet any other needs of the authority.
232-25 (f) Bond anticipation notes may bear interest at any rate or
232-26 rates not to exceed 10 percent and must mature within one year of
233-1 their date. The bond anticipation notes so issued will be taken up
233-2 with the proceeds of bonds, or the bonds may be issued and
233-3 delivered in exchange for and in substitution of such notes.
233-4 (g) Before any bonds may be sold or exchanged or substituted
233-5 by the authority, a certified copy of the proceedings of the
233-6 issuance of the bonds, including the form of the bonds, together
233-7 with any other information that the attorney general may require,
233-8 shall be submitted to the attorney general for examination, and if
233-9 the attorney general finds that the bonds have been issued in
233-10 accordance with law, the attorney general shall approve the bonds
233-11 and shall execute a certificate to that effect which shall be filed
233-12 in the office of the comptroller and be recorded in a record kept
233-13 for that purpose. Bonds may not be issued until they have been
233-14 registered by the comptroller, who shall register the bonds if the
233-15 attorney general has filed with the comptroller the certificate
233-16 approving the bonds and the proceedings for the issuance of the
233-17 bonds as provided in this subsection.
233-18 (h) Bonds approved by the attorney general and registered by
233-19 the comptroller and issued in accordance with the proceedings so
233-20 approved are valid and binding obligations of the authority and are
233-21 incontestable for any cause from and after the time of their
233-22 registration.
233-23 (i) If bonds recite that they are secured by a pledge of the
233-24 proceeds of a contract, lease, sale, or other agreement, a copy of
233-25 the contract and the proceedings of the contracting parties will
233-26 also be submitted to the attorney general for examination. If the
234-1 bonds have been authorized and the contract made in compliance with
234-2 law, the attorney general shall approve the bonds and contract, and
234-3 the bonds shall then be registered by the comptroller. When so
234-4 approved, the bonds and the contract are valid and binding and are
234-5 incontestable for any cause from and after the time of their
234-6 registration.
234-7 (j) The authority may issue refunding bonds for the purpose
234-8 of refunding or refinancing any outstanding bonds or notes
234-9 authorized and issued by the authority as provided by this chapter
234-10 or other law and the interest and premium, if any, on the bonds to
234-11 maturity or on any earlier redemption date specified in the
234-12 resolution authorizing the issuance of the refunding bonds.
234-13 Refunding bonds may be issued to refund more than one series of
234-14 outstanding bonds, may combine the pledges of the outstanding bonds
234-15 for the security of the refunding bonds, or may be secured by other
234-16 or additional revenues. All provisions of this chapter with
234-17 reference to the issuance of bonds, the terms and provisions of the
234-18 bonds, their approval by the attorney general, and the remedies of
234-19 the bondholders are applicable to refunding bonds. Refunding bonds
234-20 shall be registered by the comptroller on surrender and
234-21 cancellation of the bonds to be refunded, but in lieu of that
234-22 procedure, the resolution authorizing the issuance of refunding
234-23 bonds may provide that the refunding bonds shall be sold and the
234-24 proceeds of the sale deposited at the places at which the original
234-25 bonds are payable, in which case the refunding bonds may be issued
234-26 in an amount sufficient to pay the interest and premium, if any, on
235-1 the original bonds to their maturity date or specified earlier
235-2 redemption date, and the comptroller shall register the refunding
235-3 bonds without concurrent surrender and cancellation of the original
235-4 bonds. The authority may also refund any outstanding bonds in the
235-5 manner provided by any applicable general law.
235-6 (k) All bonds issued by the authority pursuant to the
235-7 provisions of this chapter are investment securities within the
235-8 meaning of Chapter 8, Business & Commerce Code.
235-9 (l) This chapter, without reference to other statutory
235-10 provisions, constitutes full authority for the authorization and
235-11 issuance of bonds under this chapter, and no other Act or law with
235-12 regard to the authorization or issuance of obligations or the
235-13 deposit of the proceeds of the obligations, or in any way impeding
235-14 or restricting the carrying out of the acts authorized by this
235-15 chapter, may be construed as applying to any proceedings taken
235-16 under this chapter or acts done pursuant to this chapter.
235-17 Sec. 259.009. CHARGES, FEES, AND TOLLS. If revenues are
235-18 pledged to the payment of bonds issued by the authority, the board
235-19 shall set, maintain, and enforce charges, fees, or tolls for
235-20 services rendered by properties and facilities, whose revenues have
235-21 been pledged, at rates and amounts at least sufficient to comply
235-22 with and carry out the covenants and provisions contained in the
235-23 resolution authorizing the issuance of the bonds. The authority
235-24 may impose a penalty for failure to pay a charge, fee, or toll when
235-25 due.
235-26 Sec. 259.010. AUTHORITY DEPOSITORY. The board shall from
236-1 time to time by resolution designate one or more banks to serve as
236-2 the authority's depository, and all funds of the authority shall be
236-3 secured in the manner provided for the security of county funds.
236-4 CHAPTER 260. LAVACA-NAVIDAD RIVER AUTHORITY
236-5 Sec. 260.001. CREATION. (a) A conservation and reclamation
236-6 district to be known as the "Lavaca-Navidad River Authority" is
236-7 created. The authority is a governmental agency and body politic
236-8 and corporate.
236-9 (b) The authority is created under and is essential to
236-10 accomplish the purposes of Section 59, Article XVI, Texas
236-11 Constitution.
236-12 (c) The authority may exercise the rights, privileges, and
236-13 functions provided by Section 59, Article XVI, Texas Constitution,
236-14 and this chapter, including the control, storage, preservation, and
236-15 distribution of the storm waters, floodwaters, and the waters of
236-16 the rivers and streams of Jackson County and their tributaries for
236-17 domestic, municipal, flood control, irrigation, and other useful
236-18 purposes, the reclamation and drainage of the overflow land of
236-19 Jackson County, and the conservation of forests, and the authority
236-20 may aid in the protection and promotion of navigation on the
236-21 navigable waters by regulating the floodwaters and storm waters
236-22 that flow into the navigable streams.
236-23 Sec. 260.002. DEFINITIONS. In this chapter:
236-24 (1) "Authority" means the Lavaca-Navidad River
236-25 Authority.
236-26 (2) "Board" means the board of directors of the
237-1 authority.
237-2 (3) "Director" means a member of the board.
237-3 Sec. 260.003. BOUNDARIES. The boundaries of the authority
237-4 are coextensive with the boundaries of Jackson County and the
237-5 authority includes all of the lands and other property, both real
237-6 and personal, within the boundaries of Jackson County.
237-7 Sec. 260.004. BOARD OF DIRECTORS; DIRECTOR BONDS. (a) The
237-8 management and control of the authority shall be vested in a board
237-9 consisting of nine directors.
237-10 (b) A director must reside within the authority and must be
237-11 a freehold property taxpayer and a legal voter of the state.
237-12 (c) The governor shall appoint the directors with the advice
237-13 and consent of the senate.
237-14 (d) Directors serve for staggered terms of six years, with
237-15 the terms of one-third of the directors expiring on May 1 of each
237-16 odd-numbered year, and hold office until their successors are
237-17 appointed and have qualified.
237-18 (e) The governor shall appoint three directors during the
237-19 month of April of each odd-numbered year to succeed the directors
237-20 whose terms of office are to expire on the following May 1. If a
237-21 vacancy on the board occurs because of the resignation or death of
237-22 a director or otherwise, the governor shall fill the vacancy for
237-23 the unexpired term by the appointment of a successor.
237-24 (f) A director shall qualify by taking the official oath and
237-25 filing a good and sufficient bond with the secretary of state in an
237-26 amount set by resolution of the board, payable to the authority,
238-1 and conditioned on the faithful performance of the person's
238-2 official duties as director.
238-3 Sec. 260.005. BOARD MEETINGS; OFFICERS; VOTING REQUIREMENTS.
238-4 (a) The board shall meet at such times and places as it shall
238-5 designate and shall hold regular and special meetings as it
238-6 determines appropriate.
238-7 (b) The board shall elect from among its members a
238-8 president, a vice president, a secretary, and a treasurer. The
238-9 offices of secretary and treasurer may be combined into one office
238-10 of secretary-treasurer on a majority vote of the board.
238-11 (c) Except for the original board, the officers serve for a
238-12 term of one year, and the board shall elect the officers annually
238-13 during the month of May.
238-14 (d) Special meetings of the board may be called by the
238-15 president or by any three members.
238-16 (e) A majority of the members of the board constitutes a
238-17 quorum to transact any and all business. A majority vote of the
238-18 members present at any regular or special meeting is sufficient for
238-19 the adoption of any proceedings or for the taking of any official
238-20 action.
238-21 Sec. 260.006. RECORDS; ACCOUNTS; AUTHORITY OFFICE. (a) The
238-22 board shall keep complete and accurate records and accounts
238-23 conforming to approved methods of bookkeeping and shall preserve
238-24 its minutes, contracts, records, notices, accounts, receipts, and
238-25 records of all kinds in a fireproof vault or safe.
238-26 (b) The authority shall establish and maintain an office for
239-1 the conduct of authority business within the authority.
239-2 Sec. 260.007. DIRECTOR FEES. Each director is entitled to
239-3 receive fees of office of not more than $100 per day, or the amount
239-4 permitted under Section 49.060, for each day served plus actual
239-5 traveling expenses, provided that the compensation and expenses are
239-6 approved by a vote of the board, and provided further that no
239-7 director receives more than $6,000 per year or the amount permitted
239-8 under Section 49.060. Each director shall file with the secretary
239-9 a statement showing the amount due the director each month or as
239-10 soon after each month as practicable, before a check is issued for
239-11 the services and expenses.
239-12 Sec. 260.008. CONFLICT OF INTEREST; PENALTY. A director,
239-13 engineer, officer, or employee of the authority may not either for
239-14 the person's own self or as an agent for anyone else, benefit
239-15 directly or indirectly by reason of any sale, purchase, or contract
239-16 entered into by the board. If a director, engineer, officer, or
239-17 employee of the authority directly or indirectly becomes interested
239-18 in a sale, purchase, or contract, the person is guilty of a
239-19 misdemeanor and on conviction entered into by the board shall be
239-20 punished by a fine not to exceed $1,000 or by confinement in the
239-21 county jail for not less than six months or more than one year, or
239-22 by both a fine and imprisonment.
239-23 Sec. 260.009. SURETY BONDS. All bonds required to be given
239-24 by officers and employees of the authority shall be executed by a
239-25 surety company authorized to do business in the state. The
239-26 authority may pay the premium on the bonds.
240-1 Sec. 260.010. REFERENCES TO FORMER NAME OF AUTHORITY. In
240-2 all laws a reference to Jackson County Flood Control District shall
240-3 mean and be interpreted to mean Lavaca-Navidad River Authority.
240-4 Lavaca-Navidad River Authority has all rights, powers, and duties
240-5 conferred or imposed by law on the Jackson County Flood Control
240-6 District and all rights, powers, and duties conferred by or assumed
240-7 in all contracts to which the Jackson County Flood Control District
240-8 is a party.
240-9 Sec. 260.011. POWERS OF THE AUTHORITY. (a) Except as
240-10 expressly limited by this chapter, the authority may exercise all
240-11 powers, rights, privileges, and functions provided by this chapter
240-12 or conferred by general or special law on any flood control
240-13 district or districts created pursuant to, or operating under,
240-14 Section 59, Article XVI, Texas Constitution, including the power:
240-15 (1) to acquire by gift, devise, purchase,
240-16 condemnation, or otherwise lands and rights and interests in lands
240-17 and rights and any other character of property necessary or useful
240-18 for any of the purposes provided in Section 260.001;
240-19 (2) to lease, sell, trade, or otherwise dispose of
240-20 land or other property or rights in land or property when the land
240-21 or property or rights in land or property are no longer needed for
240-22 the purposes provided in Section 260.001;
240-23 (3) to appoint a manager and other officers, agents,
240-24 and employees, including an engineer or engineers and counsel, and
240-25 to prescribe their duties and set their compensation;
240-26 (4) to authorize the authority's officers, employees,
241-1 or agents to go on any lands lying within the authority for the
241-2 purpose of making surveys and examining the lands in connection
241-3 with any authority plans or projects and for any other lawful
241-4 purpose within the scope of its authority;
241-5 (5) to devise plans and construct works to lessen and
241-6 control floods or to reclaim lands in the authority; to prevent the
241-7 deposit of silt in navigable streams; to remove obstructions,
241-8 natural or artificial, from streams and watercourses; to regulate
241-9 the flow of surface waters and floodwaters; to provide drainage;
241-10 and to accomplish any other purpose within the scope of its
241-11 authority;
241-12 (6) to borrow money for any of the purposes,
241-13 consistent with the constitution, provided by this chapter or by
241-14 general law; to borrow money and accept grants from the United
241-15 States, or from any corporation or agency created or designated by
241-16 the United States, and in connection with any such loan or grant to
241-17 enter into such agreements as the United States or the corporations
241-18 or agencies may require; and to make and issue negotiable bonds,
241-19 including bonds to finance capital projects, which may be tax
241-20 bonds, revenue bonds, or combination tax-revenue bonds, for such
241-21 borrowed money in the manner and to the extent provided in this
241-22 chapter;
241-23 (7) to cooperate or contract with any agency or
241-24 political subdivision of the state or any city or town within the
241-25 boundaries of the authority with regard to surveys, the acquisition
241-26 of land or rights-of-way, the construction or maintenance of
242-1 projects or parts of projects, or the financing of such surveys,
242-2 acquisitions, or construction or maintenance in connection with any
242-3 matter within the scope of this chapter;
242-4 (8) to sue and be sued in its corporate name;
242-5 (9) to adopt, use, and alter a corporate seal;
242-6 (10) to make bylaws, rules, and regulations for the
242-7 management and regulation of the authority's affairs;
242-8 (11) to make contracts and execute instruments
242-9 necessary or convenient to the exercise of the powers, rights,
242-10 privileges, and functions conferred on the authority by this
242-11 chapter; and
242-12 (12) to do anything necessary or proper to carry into
242-13 effect any of the foregoing powers.
242-14 (b) The authority may own, operate, and construct
242-15 facilities, including facilities for water supply and treatment,
242-16 wastewater treatment and distribution, solid waste, power
242-17 generation, flood monitoring, flood warning and control, water
242-18 quality protection, including non-point source pollution control
242-19 measures, and may monitor and collect data to support these
242-20 functions.
242-21 (c) The authority may construct projects outside of its area
242-22 of jurisdiction.
242-23 (d) The authority may develop and provide groundwater.
242-24 (e) The authority may provide for emergency communication
242-25 support to other political subdivisions, peace officer functions
242-26 around lakes, aquatic weed control and development, and the
243-1 operation and maintenance of parks and recreational facilities.
243-2 Sec. 260.012. EMINENT DOMAIN. (a) If the authority, in the
243-3 exercise of the power of eminent domain or power of relocation, or
243-4 any other power granted under this chapter, makes necessary the
243-5 relocation, raising, rerouting, changing the grade, or altering the
243-6 construction of any highway, railroad, electric transmission line,
243-7 telephone or telegraph properties and facilities, or pipeline, all
243-8 such necessary relocation, raising, rerouting, changing the grade,
243-9 or alteration of construction shall be accomplished at the sole
243-10 expense of the authority.
243-11 (b) The authority may not exercise the power of eminent
243-12 domain beyond the limits of Jackson County.
243-13 Sec. 260.013. AUTHORITY DEPOSITORY. The board shall select
243-14 a depository or depositories of the authority under the general
243-15 provisions provided by law for the selection of depositories for
243-16 counties in this state. All checks or vouchers of the authority
243-17 shall be signed by two directors, by one director and an officer or
243-18 employee of the authority, or by two of the authority's employees
243-19 designated by the board, as may be provided in an order or
243-20 resolution adopted by the board.
243-21 Sec. 260.014. AD VALOREM TAX. The authority may levy and
243-22 cause to be assessed and collected for the maintenance, operation,
243-23 and upkeep of the authority and the facilities, properties, and
243-24 improvements constructed or acquired by the authority an annual ad
243-25 valorem tax not to exceed 15 cents on each $100 valuation of
243-26 taxable property within the authority, whether real, personal,
244-1 mixed, or otherwise, if the levying of the tax is first submitted
244-2 to the qualified voters of the authority at an election called and
244-3 held as provided by this chapter and the proposition is adopted by
244-4 a majority vote of those voting at the election. Subsequent
244-5 elections may be ordered and held for the purpose of increasing,
244-6 reducing, or abating the tax; provided, however, that the tax shall
244-7 never exceed the maximum prescribed by this section.
244-8 Sec. 260.015. ISSUANCE OF BONDS. (a) For the purpose of
244-9 providing funds for any of the purposes provided by this chapter or
244-10 any other laws relating to flood control districts, the board may
244-11 issue negotiable bonds for and on behalf of the authority secured
244-12 by:
244-13 (1) a pledge of and payable from the net revenues
244-14 derived from the operation of all or a designated part of the
244-15 improvements and facilities of the authority then in existence or
244-16 to be constructed or acquired, with the duty on the board to charge
244-17 and collect fees, tolls, and charges, while the bonds are
244-18 outstanding, sufficient to pay all maintenance and operation
244-19 expenses of the improvements and facilities, the income of which is
244-20 pledged, the interest on the bonds as it accrues, and the principal
244-21 of the bonds as it matures and to make any and all other payments
244-22 as may be prescribed in the bond order or resolution;
244-23 (2) a pledge of and payable from an ad valorem tax on
244-24 all taxable property within the authority under Section 59, Article
244-25 XVI, Texas Constitution, with the duty on the board, each year
244-26 while the bonds or any part of them are outstanding, to levy and
245-1 cause to be assessed and collected a tax sufficient to pay the
245-2 interest on the bonds as it accrues and the principal of the bonds
245-3 as it matures; or
245-4 (3) a combination of the methods prescribed under
245-5 Subdivisions (1) and (2), whereby the bonds are supported and
245-6 secured by an ad valorem tax, with the duty on the board while the
245-7 bonds are outstanding, to charge and collect fees, tolls, and
245-8 charges, so that, in the manner prescribed in the bond order or
245-9 resolution, the amount of tax to be collected from time to time may
245-10 be reduced or abated to the extent that the revenues from the
245-11 operation of the improvements and facilities, whose income is
245-12 pledged, are sufficient to meet the requirements for maintenance
245-13 and operation of the improvements and facilities and to provide
245-14 funds for the bonds as prescribed in the bond order or resolution.
245-15 (b) In this section, "net revenues" means the gross revenues
245-16 derived from the operation of the improvements and facilities of
245-17 the authority, whose income is pledged to the payment of the bonds,
245-18 less the reasonable expense of maintaining and operating the
245-19 improvements and facilities. The maintenance and operation
245-20 expenses include necessary repair, upkeep, and insurance of the
245-21 improvements and facilities.
245-22 (c) In the resolution or order adopted by the board
245-23 authorizing the issuance of bonds payable in whole or in part from
245-24 net revenues, the board may provide for the flow of funds, the
245-25 establishment and maintenance of an interest and sinking fund, a
245-26 reserve fund, and other funds and may make additional covenants
246-1 with respect to the bonds and the pledged revenues and the
246-2 operation, maintenance, and upkeep of the improvements and
246-3 facilities whose income is pledged, including provision for the
246-4 leasing of all or a part of those improvements and facilities and
246-5 the use or pledge of funds derived from leases of those
246-6 improvements and facilities, as the board determines appropriate.
246-7 The resolution or order may also prohibit the further issuance of
246-8 bonds or other obligations payable from the pledged net revenues or
246-9 may reserve the right to issue additional bonds to be secured by a
246-10 pledge of and payable from the net revenues on a parity with, or
246-11 subordinate to, the lien and pledge in support of the bonds being
246-12 issued, subject to the conditions set forth in the resolution or
246-13 order. The resolution or order may contain, within the discretion
246-14 of the board, other provisions and covenants not prohibited by the
246-15 constitution or by this chapter, and the board may adopt and cause
246-16 to be executed any other proceedings or instruments necessary or
246-17 convenient in the issuance of the bonds.
246-18 (d) Bonds payable solely from net revenues may be issued by
246-19 resolution or order of the board without an election. Bonds wholly
246-20 or partially supported by taxes, except refunding bonds, may not be
246-21 issued unless the bonds have been authorized at an election called
246-22 by the board at which a majority of the duly qualified resident
246-23 electors of the authority voting at the election have voted in
246-24 favor of the issuance of the bonds. An election must be held not
246-25 less than 14 days after the date of adoption of the order or
246-26 resolution calling the election, and notice of the election must be
247-1 given by publication in a newspaper of general circulation within
247-2 the authority, on the same day in each of two successive weeks, of
247-3 a substantial copy of the order or resolution calling the election,
247-4 the first publication to be not less than 14 days prior to the date
247-5 of the election. No other notice of election is required. If the
247-6 bonds are to be payable solely from taxes, the proposition to
247-7 appear on the ballot shall be: "For the bonds and the levy of
247-8 taxes in payment thereof; and the contrary thereof." If the bonds
247-9 are to be payable both from net revenues and taxes, the proposition
247-10 to appear on the ballot shall be: "For the bonds, the pledge of
247-11 net revenues, and the levy of taxes adequate to provide for the
247-12 payment thereof; and the contrary thereof."
247-13 (e) Bonds must be authorized by resolution or order of the
247-14 board, be issued in the name of the authority, be signed by the
247-15 president and attested by the secretary, and have the seal of the
247-16 authority impressed on them; provided, however, that the resolution
247-17 or order authorizing the bonds may provide for the bonds to be
247-18 signed by the facsimile signatures of the president and secretary,
247-19 either or both, and for the seal of the authority on the bonds to
247-20 be a printed facsimile seal of the seal of the authority; and
247-21 provided further, that the interest coupons attached to the bonds
247-22 may also be executed by the facsimile signatures of the officers.
247-23 Bonds must mature, serially or otherwise, in not to exceed 40 years
247-24 from their date or dates, and may be sold at a price and under
247-25 terms determined by the board to be the most advantageous
247-26 reasonably obtainable, provided that the interest cost to the
248-1 authority, calculated by the use of standard bond interest tables
248-2 currently in use by insurance companies and investment houses, does
248-3 not exceed six percent per year. Within the discretion of the
248-4 board, bonds may be callable prior to maturity at the times and at
248-5 the prices prescribed in the resolution or order authorizing the
248-6 bonds. Bonds may be made registrable as to principal or as to both
248-7 principal and interest.
248-8 (f) After bonds have been authorized by the authority, the
248-9 bonds and the record relating to their issuance shall be submitted
248-10 to the attorney general for examination as to the validity of the
248-11 bonds and the record. If the attorney general approves the bonds,
248-12 the bonds shall be registered by the comptroller. After the bonds
248-13 have been approved by the attorney general, registered by the
248-14 comptroller, and delivered to the purchasers, the bonds are
248-15 incontestable except for forgery or fraud. If bonds payable in
248-16 whole or in part from net revenues recite that they are secured
248-17 partially or otherwise by a pledge of the proceeds of a contract or
248-18 contracts made between the authority and another party or parties,
248-19 public agency or otherwise, a copy of the contract or contracts and
248-20 the proceedings authorizing the contract or contracts shall be
248-21 submitted to the attorney general along with the bond record.
248-22 Approval by the attorney general of the bonds constitutes an
248-23 approval of the contract or contracts, and after the approval the
248-24 contract or contracts are incontestable except for forgery or
248-25 fraud.
248-26 (g) From the proceeds of sale of bonds, the board may
249-1 appropriate or set aside an amount for the payment of interest
249-2 expected to accrue during the period of construction of the
249-3 improvements or facilities, an amount or amounts to establish a
249-4 reserve fund or funds as provided in the bond order or resolution,
249-5 and an amount necessary to pay all expenses incurred and to be
249-6 incurred in issuance, sale, and delivery of the bonds.
249-7 Sec. 260.016. REFUNDING BONDS. (a) The board may issue
249-8 refunding bonds for the purpose of refunding any outstanding bonds
249-9 of the authority and accrued interest on the bonds. Refunding
249-10 bonds may be issued to refund more than one series or issue of
249-11 outstanding bonds payable wholly from taxes. Refunding bonds may
249-12 be issued to refund more than one series or issue of outstanding
249-13 bonds payable in whole or in part from net revenues and to combine
249-14 pledges for the outstanding bonds for the security of the refunding
249-15 bonds, and the refunding bonds may be secured by other and
249-16 additional revenues; provided, however, that bonds payable solely
249-17 from net revenues may not be refunded into bonds secured by taxes
249-18 unless authorized by a majority vote of the qualified voters voting
249-19 at an election called and held in the same manner as bond
249-20 elections; and provided further, that such refunding may not impair
249-21 the contract rights of the holders of any of the outstanding bonds
249-22 that are not being refunded.
249-23 (b) Refunding bonds must be authorized by resolution or
249-24 order of the board and must be executed and mature as is provided
249-25 in this chapter for original bonds. Refunding bonds bear interest
249-26 at the same or a lower rate than that of the bonds refunded unless
250-1 it is shown mathematically that a saving will result in the total
250-2 amount of interest to be paid.
250-3 (c) Refunding bonds shall be approved by the attorney
250-4 general as in the case of original bonds and shall be registered by
250-5 the comptroller on surrender and cancellation of the bonds to be
250-6 refunded, but in lieu of this procedure, the resolution or order
250-7 authorizing the issuance of the refunding bonds may provide that
250-8 the refunding bonds shall be sold and the proceeds of the sale
250-9 deposited in the place or places where the original bonds are
250-10 payable, in which case the refunding bonds may be issued in an
250-11 amount sufficient to pay the interest on the original bonds to
250-12 their option or maturity date and the comptroller shall register
250-13 the refunding bonds without the surrender and cancellation of the
250-14 original bonds. Refunding bonds, after they have been approved by
250-15 the attorney general and registered by the comptroller, are
250-16 incontestable except for forgery or fraud.
250-17 Sec. 260.017. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
250-18 DEPOSITS. (a) Bonds issued under this chapter are negotiable
250-19 instruments under the laws of the state, and the bonds are legal
250-20 and authorized investments for banks, savings banks, trust
250-21 companies, building and loan associations, insurance companies,
250-22 fiduciaries, trustees, and guardians and for the sinking funds of
250-23 cities, towns, villages, counties, school districts, or other
250-24 political corporations or subdivisions of the state.
250-25 (b) The bonds are eligible to secure the deposit of public
250-26 funds of the state and public funds of cities, towns, villages,
251-1 counties, school districts, or other political corporations or
251-2 subdivisions of the state; and the bonds are lawful and sufficient
251-3 security for such deposits to the extent of their face value when
251-4 accompanied by all unmatured coupons.
251-5 Sec. 260.018. MAINTENANCE TAX ELECTIONS. (a) All
251-6 maintenance tax elections shall be called and held as provided in
251-7 Section 260.015(d) of this chapter relating to elections for bonds
251-8 payable in whole or in part from taxes, and the following language
251-9 shall appear on the ballot in maintenance tax elections: "For
251-10 maintenance tax; and the contrary thereof."
251-11 (b) The regular voting or election precincts established by
251-12 the commissioners court of Jackson County for countywide elections
251-13 shall be the voting or election precincts for all elections called
251-14 and held under the provisions of this chapter. Except as modified
251-15 in this chapter, the Election Code shall apply to and govern all
251-16 elections called and held under the provisions of this section.
251-17 Sec. 260.019. TAXATION. (a) The board shall levy all taxes
251-18 of the authority, whether maintenance taxes or taxes to support
251-19 bonds, and the tax rolls of Jackson County shall be the tax rolls
251-20 of the authority.
251-21 (b) The authority shall furnish the officer responsible for
251-22 assessing and collecting taxes for the authority a certified copy
251-23 of each resolution or order adopted by the board in which taxes are
251-24 levied, and that officer shall assess and collect the taxes at the
251-25 same time as county taxes are assessed and collected and shall turn
251-26 the proceeds of such taxes, when collected, over to the authority
252-1 or its depository.
252-2 (c) All laws of the state relating to the assessing and
252-3 collecting of state and county taxes shall be applied to the
252-4 assessment and collection of current and delinquent taxes of the
252-5 authority, to the extent that such laws are applicable.
252-6 (d) The board may contract as provided by Chapter 791,
252-7 Government Code, with the board of directors of the Jackson County
252-8 Appraisal District for the performance of duties relating to
252-9 assessment or collection of taxes on behalf of the authority. The
252-10 board may contract with any other political subdivision of the
252-11 state having authority to assess or collect taxes in Jackson County
252-12 for the assessment or collection of taxes on behalf of the
252-13 authority.
252-14 Sec. 260.020. POWERS OF WATER CONTROL AND IMPROVEMENT
252-15 DISTRICTS. (a) Except as limited by this chapter, the authority
252-16 and the board shall have, with respect to the powers and privileges
252-17 granted under this chapter, all the powers and privileges granted
252-18 to water control and improvement districts and the board of
252-19 directors of such districts by Chapters 49 and 51.
252-20 (b) In addition to all other vested powers, the authority
252-21 may exercise all powers, rights, privileges, and functions that are
252-22 conferred by general or special law on water improvement districts
252-23 and water control and improvement districts created pursuant to
252-24 Section 59, Article XVI, Texas Constitution.
252-25 Sec. 260.021. CONSTRUCTION. The terms and provisions of
252-26 this chapter shall be liberally construed to effectuate the
253-1 purposes set forth in this chapter.
253-2 Sec. 260.022. FINDING OF BENEFIT. All property, both real
253-3 and personal, within the authority and within the state will
253-4 benefit from the authority and from the improvements and facilities
253-5 acquired or constructed and to be acquired or constructed under the
253-6 provisions of this chapter.
253-7 CHAPTER 261. LOWER COLORADO RIVER AUTHORITY
253-8 Sec. 261.001. CREATION. (a) A conservation and reclamation
253-9 district to be known as the "Lower Colorado River Authority" is
253-10 created. The authority is a governmental agency and a body politic
253-11 and corporate.
253-12 (b) The authority is created under and is essential to
253-13 accomplish the purposes of Section 59, Article XVI, Texas
253-14 Constitution, including the control, storing, preservation, and
253-15 distribution of the waters of the Colorado River and its
253-16 tributaries within the boundaries of the authority for irrigation,
253-17 generation of electric energy and power, and other useful purposes;
253-18 the reclamation and irrigation of arid, semiarid, and other lands
253-19 needing irrigation; the development of parks on lands owned or
253-20 hereafter acquired by the authority; and the conservation and
253-21 development of the forests, water, and electric power in the state.
253-22 (c) Nothing in this chapter or in any other law shall be
253-23 construed as authorizing the authority to levy or collect taxes or
253-24 to create any indebtedness payable out of taxes or in any way to
253-25 pledge the credit of the state.
253-26 Sec. 261.002. DEFINITIONS. In this chapter:
254-1 (1) "Authority" means the Lower Colorado River
254-2 Authority.
254-3 (2) "Board" means the board of directors of the
254-4 authority.
254-5 (3) "Director" means a member of the board.
254-6 Sec. 261.003. TERRITORY. The authority consists of the
254-7 territory included within the boundaries of the counties of Blanco,
254-8 Burnet, Llano, Travis, Bastrop, Fayette, Colorado, Wharton, San
254-9 Saba, and Matagorda.
254-10 Sec. 261.004. POWERS AND DUTIES. (a) Except as expressly
254-11 limited by this chapter, the authority has all the powers, rights,
254-12 privileges, and functions conferred by general law on any district
254-13 or districts created under Section 59, Article XVI, Texas
254-14 Constitution, and as provided by this section.
254-15 (b) The authority may control, store, and preserve, within
254-16 the boundaries of the authority, the waters of the Colorado River
254-17 and its tributaries and the lands of the authority for any useful
254-18 purpose and may use, distribute, and sell those waters, within the
254-19 boundaries of the authority or within the boundaries of the
254-20 watershed that contributes inflow to the Colorado River below the
254-21 intersection of Coleman, Brown, and McCulloch counties, for any
254-22 such purpose.
254-23 (c) The authority may develop and generate water power and
254-24 electric energy within the boundaries of the authority and may
254-25 distribute and sell water power and electric energy, within or
254-26 outside the boundaries of the authority.
255-1 (d) The authority may prevent or aid, within the boundaries
255-2 of the authority, in the prevention of damage to person or property
255-3 from the waters of the Colorado River and its tributaries.
255-4 (e) The authority may forest and reforest and aid in the
255-5 foresting and reforesting of the watershed area of the Colorado
255-6 River and its tributaries, within the boundaries of the authority,
255-7 and may prevent and aid in the prevention of soil erosion and
255-8 floods within the watershed area.
255-9 (f) The authority may acquire by purchase, lease, or gift or
255-10 in any other manner provided by law and may maintain, use, and
255-11 operate any property of any kind, real, personal, or mixed, or any
255-12 interest in property, within or outside the boundaries of the
255-13 authority that is necessary or convenient to the exercise of the
255-14 powers, rights, privileges, and functions conferred on the
255-15 authority by this chapter.
255-16 (g) The authority may acquire by condemnation property of
255-17 any kind, real, personal, or mixed, or any interest in property,
255-18 within or outside the boundaries of the authority, other than
255-19 property or any interest in property outside the boundaries of the
255-20 authority owned by any body politic, that is necessary or
255-21 convenient to the exercise of the powers, rights, privileges, and
255-22 functions conferred on the authority by this chapter. The
255-23 authority shall exercise the condemnation power in the manner
255-24 provided by general law with respect to condemnation or, at the
255-25 option of the authority, in the manner provided by state law
255-26 relating to condemnation by districts organized under general law
256-1 pursuant to Section 59, Article XVI, Texas Constitution.
256-2 (h) Subject to the provisions of this chapter, the authority
256-3 may sell or otherwise dispose of property of any kind, real,
256-4 personal, or mixed, or any interest in the property, that is not
256-5 necessary to the carrying on of the business of the authority.
256-6 (i) The authority may overflow and inundate within the
256-7 boundaries of the authority any public lands and public property
256-8 and may require the relocation of roads, pipelines, transmission
256-9 lines, railroads, cemeteries, and highways in the manner and to the
256-10 extent permitted to districts organized under general law pursuant
256-11 to Section 59, Article XVI, Texas Constitution.
256-12 (j) The authority may construct, extend, improve, maintain,
256-13 and reconstruct, cause to be constructed, extended, improved,
256-14 maintained, and reconstructed, and use and operate facilities of
256-15 any kind necessary or convenient to the exercise of its powers,
256-16 rights, privileges, and functions.
256-17 (k) The authority may sue and be sued in its corporate name.
256-18 (l) The authority may adopt and use a corporate seal.
256-19 (m) The authority may make bylaws for the management and
256-20 regulation of its affairs.
256-21 (n) The authority may appoint officers, agents, and
256-22 employees, prescribe their duties, and set their compensation.
256-23 (o) The authority may make contracts and execute instruments
256-24 necessary or convenient to the exercise of the powers, rights,
256-25 privileges, and functions conferred on the authority by this
256-26 chapter or permitted by general law.
257-1 (p) The authority may borrow money for its corporate
257-2 purposes on notes or other written evidence of indebtedness for a
257-3 period not to exceed five years as may be authorized from time to
257-4 time by an affirmative vote of 12 members of the board, which loans
257-5 or indebtedness shall be repaid from the proceeds of bonds of the
257-6 authority at the next bond offering. The authority may borrow
257-7 money and accept grants from the United States, the state, or any
257-8 corporation or agency created or designated by the United States or
257-9 the state and, in connection with any such loans or grants, may
257-10 enter into such agreements as the United States, the state, or the
257-11 corporation or agency may require. The authority may make and
257-12 issue negotiable bonds for money borrowed in the manner provided by
257-13 Sections 261.013, 261.014, and 261.015. Nothing in this chapter
257-14 shall authorize the issuance of any bonds, notes, or other
257-15 evidences of indebtedness of the authority except as specifically
257-16 provided by this chapter.
257-17 (q) The authority may provide for the study, correcting, and
257-18 control of both artificial and natural pollution, including
257-19 organic, inorganic, and thermal, of all ground or surface water of
257-20 the Colorado River and its tributaries within the boundaries of the
257-21 authority. The authority may promulgate by ordinance rules and
257-22 regulations with regard to the pollution, both artificial and
257-23 natural, and possesses police power to enforce its rules and
257-24 regulations. The authority may provide a reasonable penalty for
257-25 the violation of any rule or regulation, which shall be cumulative
257-26 of any penalties fixed by the general law of this state. A penalty
258-1 under this subsection may not exceed the limit for penalties
258-2 provided by this chapter. An ordinance enacted under this section
258-3 may not be promulgated in any county or counties outside the
258-4 existing boundaries of the authority.
258-5 (r) As a necessary aid to the conservation, control,
258-6 preservation, purification, and distribution of surface waters and
258-7 groundwaters of the Colorado River and its tributaries within the
258-8 boundaries of the authority, the authority may have the power to
258-9 construct, own, operate, maintain, or otherwise provide sewage
258-10 gathering, treatment, and disposal services, including waste
258-11 disposal services, and may make contracts regarding those services
258-12 with the United States, the state, counties, municipalities, and
258-13 others. The authority shall charge the actual cost of those
258-14 services.
258-15 (s) The authority may develop and manage parks, recreational
258-16 facilities, and natural science laboratories and may promote the
258-17 preservation of fish and wildlife within the boundaries of the
258-18 authority. The authority may negotiate contracts with any county,
258-19 municipality, municipal corporation, person, firm, corporation,
258-20 nonprofit organization, or state or federal agency for the
258-21 operation and maintenance of any such park, recreational facility,
258-22 or natural science laboratory. The preservation of fish and
258-23 wildlife shall be in accordance with the rules and regulations of
258-24 the Parks and Wildlife Commission. Notwithstanding any other
258-25 provisions of this chapter, the board may charge and collect
258-26 reasonable entrance, gate, or use fees for the development,
259-1 management, and use of parks and recreational facilities developed
259-2 in whole or in part by the authority.
259-3 (t) The authority may enter into agreements authorized by
259-4 Chapter 163, Utilities Code, to acquire, install, construct,
259-5 operate, enlarge and make additions to, and own and operate
259-6 electric power and energy generating facilities as provided by that
259-7 chapter, in joint ownership with others, either as cotenants or
259-8 under such other arrangements as may be approved by a three-fourths
259-9 vote of the statutory membership of the board. In accordance with
259-10 and subject to the terms of the agreements, if any, the authority
259-11 may sell or otherwise dispose of any or all of its interest in the
259-12 jointly owned electric power and generating facilities. This
259-13 subsection does not apply to generating facilities or other
259-14 property wholly owned by the authority.
259-15 (u) The authority may do any and all other acts or things
259-16 necessary or convenient, including controlling the use of the
259-17 surface of any lake or island located in such lake developed by the
259-18 authority and levying a charge for the commercial use of the lake
259-19 or island, to the exercise of all powers, rights, privileges,
259-20 authority, or functions conferred on the authority by the
259-21 constitution, this chapter, or any law.
259-22 (v) The authority may enter into contracts with the state
259-23 through the General Services Commission providing for direct sale
259-24 by the authority of electrical power to the state for use in
259-25 buildings or other facilities owned, leased, or rented by the state
259-26 in Travis County.
260-1 Sec. 261.005. LIMITATIONS OF AUTHORITY. (a) The authority
260-2 may not use for irrigation purposes any water under any permit or
260-3 permits acquired from any other company or person unless such use
260-4 is expressly authorized by, and granted to the authority by, the
260-5 commission or its predecessor agency under authority of law. In
260-6 considering subsequent applications by the authority, the
260-7 commission shall at all times consider the needs of the people
260-8 living within and on lands lying within the watershed of the
260-9 Colorado River and its tributaries above the authority.
260-10 (b) Notwithstanding any rights or permits issued by the
260-11 commission or its predecessor agency that are held or acquired by
260-12 the authority, the impounding and use of the floodwaters of the
260-13 Colorado River or its tributaries for the generation of
260-14 hydroelectric power by the authority or anyone who may succeed to
260-15 the rights and privileges conferred on the authority by this
260-16 chapter are subject to the rights of a person, municipal
260-17 corporation, or body politic that, under legal grant of authority,
260-18 is impounding and putting to beneficial use the waters if the
260-19 person, municipal corporation, or body politic:
260-20 (1) has received a permit for the use from the
260-21 commission, or its predecessor agency; or
260-22 (2) is permitted by law to impound water for the
260-23 purposes described by this subsection.
260-24 (c) Nothing in this chapter shall be construed to require a
260-25 municipal corporation or body politic to surrender to the authority
260-26 any rights described by this section to which it may be legally
261-1 entitled.
261-2 (d) This chapter shall not be construed to subject to
261-3 condemnation by the authority or any successor, or by anyone who
261-4 may succeed to the rights and privileges conferred on the authority
261-5 by this chapter, any waters:
261-6 (1) impounded or to be impounded within or outside the
261-7 authority under any law authorizing water to be impounded or under
261-8 any permits granted to a municipal corporation or body politic; or
261-9 (2) impounded or permitted to be impounded or used
261-10 outside the authority under permits legally granted to any person.
261-11 (e) Nothing in this chapter shall be construed as depriving
261-12 any person or municipality of the right, legally granted, to
261-13 impound the waters of the Colorado River or its tributaries for
261-14 authorized beneficial uses or as repealing any law granting such
261-15 rights to persons and municipalities.
261-16 (f) The rights of the authority to impound or use or sell
261-17 the waters of the Colorado River and its tributaries for the
261-18 generation of hydroelectric power are subordinate and inferior to
261-19 the rights of:
261-20 (1) cities and towns situated within the boundaries of
261-21 the authority to build dams and impound floodwaters solely for
261-22 municipal purposes;
261-23 (2) cities and towns and bodies politic within the
261-24 watershed of the Colorado River outside the authority to build dams
261-25 or impound floodwaters for municipal purposes; and
261-26 (3) bodies politic within the watershed of the
262-1 Colorado River to build dams and impound the floodwaters within the
262-2 watershed of the Colorado River and its tributaries for domestic
262-3 purposes inside and outside the boundaries of the authority.
262-4 (g) The title to any rights, properties, licenses,
262-5 franchises, or permits acquired by the authority shall be subject
262-6 to the limitations imposed by Subsection (f).
262-7 Sec. 261.006. BOARD OF DIRECTORS. (a) The powers, rights,
262-8 privileges, and functions of the authority shall be exercised by
262-9 the board. The board shall consist of 15 directors and shall
262-10 include at least one director from each of the counties named in
262-11 Section 261.003 except Travis County, which shall have two
262-12 directors. Three directors shall be appointed at large by the
262-13 governor with the advice and consent of the senate from the
262-14 counties served with electric power, other than the counties
262-15 included in Section 261.003.
262-16 (b) A director appointed at large may not serve for a period
262-17 of more than six consecutive years. A county other than a county
262-18 included in Section 261.003 may not be represented on the board for
262-19 more than six consecutive years. A county other than Travis County
262-20 may not have two directors for a period greater than six
262-21 consecutive years.
262-22 (c) All directors shall be appointed by the governor with
262-23 the advice and consent of the senate for staggered terms of six
262-24 years, with five members' terms expiring on February 1 of each
262-25 odd-numbered year.
262-26 (d) Each director must be a resident and freehold property
263-1 taxpayer of the county from which the director is appointed and
263-2 must have been a resident and taxpayer of that county for not less
263-3 than two years immediately preceding the director's appointment.
263-4 Not more than two directors may be residents of the same county.
263-5 (e) A person is not eligible for appointment as a director
263-6 if the person has, during the three years immediately preceding the
263-7 person's appointment, been employed by an electric power and light
263-8 company, a telephone company, or any other utility company.
263-9 (f) At the expiration of the term of a director, a successor
263-10 shall be appointed by the governor with the advice and consent of
263-11 the senate. Each director shall hold office until the expiration
263-12 of the term for which the director was appointed and until a
263-13 successor has been appointed and has qualified, unless removed
263-14 sooner as provided by this section.
263-15 (g) A director may be removed by the governor for
263-16 inefficiency, neglect of duty, or misconduct in office after at
263-17 least 30 days written notice of the charges against the director
263-18 and an opportunity to be heard in person or by counsel at a public
263-19 hearing.
263-20 (h) A vacancy resulting from the death, resignation, or
263-21 removal of a director is filled by the governor for the unexpired
263-22 term.
263-23 (i) Each director shall qualify by taking the official oath
263-24 of office prescribed by the constitution or general laws of the
263-25 state.
263-26 (j) Each director is entitled to receive fees of office of
264-1 not more than $100 per day and reimbursement of actual expenses
264-2 incurred in accordance with Chapter 49; provided, however, that no
264-3 director is paid per diem in excess of 150 days in any one calendar
264-4 year.
264-5 (k) Eight directors constitute a quorum at any meeting and,
264-6 except as otherwise provided by this chapter or in the bylaws, all
264-7 action may be taken by the affirmative vote of a majority of the
264-8 directors present at any meeting, except that no bonds, notes, or
264-9 other evidence of indebtedness and no amendment of the bylaws shall
264-10 be valid unless authorized or ratified by the affirmative vote of
264-11 at least eight directors, unless otherwise specifically provided by
264-12 this chapter.
264-13 (l) The board is a state board as contemplated by Section
264-14 30a, Article XVI, Texas Constitution.
264-15 Sec. 261.007. OFFICERS; GENERAL MANAGER; EMPLOYEES.
264-16 (a) The board shall select a secretary, who shall keep true and
264-17 complete records of all proceedings of the board. Until the
264-18 appointment of a secretary or in the event of the secretary's
264-19 absence or inability to act, the board shall select a secretary pro
264-20 tempore.
264-21 (b) The board shall select a general manager. The general
264-22 manager is the chief executive officer of the authority.
264-23 (c) The board shall select a treasurer, who may also hold
264-24 the office of secretary.
264-25 (d) The officers described in Subsections (a)-(c) have the
264-26 powers and duties, hold office for the term, and are subject to
265-1 removal in the manner as may be provided in the bylaws.
265-2 (e) The board shall set the compensation of the officers.
265-3 The board may appoint the officers described in Subsections
265-4 (a)-(c), agents, and employees, may set their compensation and term
265-5 of office and the method by which they may be removed, and may
265-6 delegate to them the power and duties it determines proper.
265-7 Sec. 261.008. DISBURSEMENT OF FUNDS; SURETY BONDS. (a) The
265-8 money of the authority may be disbursed only on checks, drafts,
265-9 orders, or other instruments signed by the persons authorized by
265-10 the bylaws or a resolution concurred in by no fewer than eight
265-11 directors.
265-12 (b) The general manager, the treasurer, and all other
265-13 officers, agents, and employees of the authority charged with the
265-14 collection, custody, or payment of any funds of the authority must
265-15 give bond conditioned on the faithful performance of their duties
265-16 and an accounting for all funds and property of the authority
265-17 coming into their hands.
265-18 (c) The bonds must be in a form, amount, and with a surety
265-19 company authorized to do business in the state, approved by the
265-20 board.
265-21 (d) The premiums on the bonds shall be paid by the authority
265-22 and charged as an operating expense.
265-23 Sec. 261.009. OFFICE; RECORDS. (a) The domicile of the
265-24 authority is in the City of Austin, Travis County, where the
265-25 authority shall maintain its principal office in the charge of the
265-26 general manager.
266-1 (b) The authority shall keep complete and accurate accounts
266-2 conforming to approved methods of bookkeeping.
266-3 (c) The accounts and all contracts, documents, and records
266-4 of the authority shall be kept at the principal office. The
266-5 accounts and contracts shall be open to public inspection at all
266-6 reasonable times.
266-7 (d) The board shall cause to be made and completed, within
266-8 90 days after the end of each fiscal year, an audit of the books of
266-9 account and financial records of the authority for that fiscal
266-10 year. The audit shall be made by an independent certified public
266-11 accountant or firm of certified public accountants.
266-12 (e) Copies of a written report of the audit certified to by
266-13 the accountant or accountants must be placed and kept on file with
266-14 the commission, with the comptroller, and at the principal office
266-15 of the authority, and be open to public inspection at all
266-16 reasonable times.
266-17 Sec. 261.010. CONFLICT OF INTEREST. The provisions of
266-18 Chapter 171, Local Government Code, apply to conflicts of interest
266-19 in the award of district contracts.
266-20 Sec. 261.011. RATES AND CHARGES. (a) The board shall
266-21 establish and collect rates and other charges for the sale or use
266-22 of water, water connections, power, electric energy, or other
266-23 services sold, furnished, or supplied by the authority. The fees
266-24 and charges must be reasonable and nondiscriminatory and sufficient
266-25 to produce revenues adequate to:
266-26 (1) pay all expenses necessary to the operation and
267-1 maintenance of the properties and facilities of the authority;
267-2 (2) pay the interest on and principal of all bonds
267-3 issued under this chapter as the interest and principal become due
267-4 and payable;
267-5 (3) pay the principal and interest on any legal debt
267-6 created by the authority;
267-7 (4) pay all sinking fund and reserve fund payments
267-8 agreed to be made with respect to bonds and payable out of such
267-9 revenues, as the payments become due and payable; and
267-10 (5) fulfill the terms of any agreements made with the
267-11 holders of bonds or with any person in their behalf.
267-12 (b) Out of the revenues that may be received in excess of
267-13 those required for the purposes specified in Subsection (a), the
267-14 board may:
267-15 (1) establish a reasonable depreciation and emergency
267-16 fund;
267-17 (2) retire, by purchase and cancellation or
267-18 redemption, bonds issued under this chapter; or
267-19 (3) apply the excess revenues to any corporate
267-20 purpose.
267-21 (c) The rates and charges of the authority may not be in
267-22 excess of what is necessary to fulfill the obligations imposed on
267-23 the authority by this chapter. Nothing in this chapter shall be
267-24 construed as depriving the state of its power to regulate and
267-25 control fees or charges to be collected for the use of water, water
267-26 connections, power, electric energy, or other service; provided,
268-1 however, that the state pledges to and agrees with the purchasers
268-2 and successive holders of the bonds and other written evidence of
268-3 indebtedness issued under this chapter that the state will not
268-4 limit or alter the power vested in the authority to establish and
268-5 collect such fees and charges as will produce revenues sufficient
268-6 to pay the items specified in Subsection (a), or in any way impair
268-7 the rights or remedies of creditors or holders of the bonds, or of
268-8 any person in their behalf, until the bonds and other written
268-9 evidence of indebtedness, together with the interest on the bonds
268-10 or indebtedness and the interest on unpaid installments of interest
268-11 and all costs and expenses in connection with any action or
268-12 proceedings by or on behalf of the bondholders and all other
268-13 obligations of the authority in connection with the bonds are fully
268-14 met and discharged.
268-15 Sec. 261.012. PAYMENT OF DEBTS. Any indebtedness,
268-16 liability, or obligation of the authority for the payment of money,
268-17 however entered into or incurred and whether arising from contract,
268-18 implied contract, or otherwise, shall be payable solely:
268-19 (1) out of revenues received by the authority with
268-20 respect to its properties, subject to any prior lien on the
268-21 revenues conferred by any resolution or resolutions adopted as
268-22 provided by this chapter authorizing the issuance of bonds; or
268-23 (2) if the board so determines, out of the proceeds of
268-24 sale by the authority of bonds payable solely from such revenues.
268-25 Sec. 261.013. ISSUANCE OF BONDS. (a) The authority may
268-26 issue bonds from time to time and for any purpose authorized by
269-1 this chapter. If bonds of the authority are issued, the bonds:
269-2 (1) when sold, shall be sold for cash at public sale
269-3 to the highest and best bidder, as determined by the board, and the
269-4 interest cost of the money received for the bonds, computed to
269-5 maturity in accordance with the method prescribed by the board in
269-6 connection with the sale of the bonds;
269-7 (2) may be issued, on such terms as the board
269-8 determines, in exchange for property of any kind, real, personal,
269-9 or mixed, or any interest in such property that the board
269-10 determines necessary or convenient for any corporate purposes,
269-11 provided that any property acquired through the exchange of bonds
269-12 is certified in writing before the exchange as being of a value
269-13 equal to or in excess of the par value of the bonds by an
269-14 independent appraisal that is to be kept on file by the authority
269-15 as a public record, with a copy filed with the state auditor;
269-16 (3) may be issued in exchange for like principal
269-17 amounts of other obligations of the authority, matured or
269-18 unmatured; or
269-19 (4) may be sold to the state or any agency of the
269-20 state, the United States, or any agency or corporation created or
269-21 designated by the state or the United States in exchange for cash
269-22 equal in amount to the principal amount of the bonds sold and the
269-23 interest cost of the money received for the bonds, computed to
269-24 maturity in accordance with standard bond tables in general use by
269-25 banks and insurance companies, as determined by the board.
269-26 (b) The proceeds from the sale of the bonds shall be
270-1 deposited in a bank or banks or a trust company or trust companies
270-2 and shall be paid out pursuant to such terms and conditions not in
270-3 conflict with the provisions of this chapter as may be agreed on
270-4 between the authority and the purchasers of the bonds.
270-5 (c) The proceeds of the bonds and any net operating revenues
270-6 derived from the sale of electric power or water which may be
270-7 available after paying the interest on outstanding bonds and the
270-8 principal amount of such bonds and after setting aside sufficient
270-9 funds for working capital, including a reasonable amount for
270-10 contingencies, and setting aside funds for reserves to secure
270-11 payment of principal of and interest on outstanding bonds, shall be
270-12 used:
270-13 (1) to build and construct dams or other structures
270-14 within the authority, on the Colorado River and its tributaries,
270-15 for the impounding and storage of floodwater and surface water;
270-16 (2) to purchase and install in the dams on the
270-17 Colorado River hydroelectric generators and other related
270-18 facilities for the generation of hydroelectric power;
270-19 (3) for the construction of additional lines and the
270-20 purchase and installation of additional equipment the board
270-21 considers necessary or expedient to enable the authority to
270-22 continue to meet the demand for electric power in the areas within
270-23 the authority directly served by its transmission lines and
270-24 distribution systems on January 1, 1975, and other areas within the
270-25 service area served by the authority on January 1, 1975, that
270-26 cannot receive comparable service from any other power source and
271-1 to provide electric power to the state as provided by Section
271-2 261.004; provided, however, that no steam generating capacity shall
271-3 be installed by the authority, except that the authority may
271-4 acquire, install, construct, enlarge and make additions to, and
271-5 operate one or more steam generating plants, the sum of whose
271-6 aggregate capacity shall not be more than 5,000 megawatts, to be
271-7 located within the boundaries of either one or more of Colorado,
271-8 Fayette, Bastrop, Travis, Blanco, Burnet, Llano, or San Saba
271-9 counties and to be utilized for the purpose of serving the area
271-10 directly served by the authority's transmission lines and
271-11 distribution systems on January 1, 1975, and to provide electric
271-12 power to the state as provided by Section 261.004;
271-13 (4) to own or acquire an interest in one or more steam
271-14 generating plants at any location within or outside the authority,
271-15 if any such plant or plants are owned in conjunction with one or
271-16 more other utilities, public, private, or municipal, provided that
271-17 any such interest owned or acquired by the authority shall be
271-18 utilized for the sole purpose of serving electric power and energy
271-19 only in the areas within the authority directly served by its
271-20 transmission lines and distribution systems as they existed on
271-21 January 1, 1975;
271-22 (5) for the purpose of building dams, levees, or such
271-23 other flood control structures between the City of Austin and the
271-24 mouth of the Colorado River as may be considered necessary and
271-25 desirable by the board and for acquiring or installing such
271-26 facilities necessary to supply water for irrigation and other
272-1 useful purposes within the counties composing the authority; and
272-2 (6) in aid of any soil conservation or soil
272-3 reclamation projects within the authority that the board determines
272-4 to be in the public interest.
272-5 (d) Nothing in this section shall be construed as
272-6 establishing priorities as to uses of water that are contrary to
272-7 the general laws of this state with reference to the water uses.
272-8 (e) Proceeds of bonds sold by the authority, and any net
272-9 operating revenues that the board determines are not needed to
272-10 carry out the projects set out in Subsections (c)(1), (2), and (3),
272-11 to the extent not required by an outstanding trust indenture to be
272-12 used to redeem outstanding bonds, shall be placed in a separate
272-13 fund to be designated "The Irrigation, Conservation and Reclamation
272-14 Fund of the Authority" and used only for carrying out the projects
272-15 and purposes authorized in Subsections (c)(5) and (6) until the
272-16 legislature directs otherwise. Dams built on the tributaries of
272-17 the Colorado River or on the Colorado River shall be used for the
272-18 purpose of impounding and storing floodwaters and surface waters.
272-19 (f) Bonds shall be authorized by resolution of the board
272-20 concurred in by at least 12 of the members.
272-21 (g) Bonds shall bear such date or dates, mature at such time
272-22 or times, bear interest at such rates, payable annually or
272-23 semiannually, be in such denominations, be in such form, either
272-24 coupon or registered, carry such registration privileges as to
272-25 principal only or as to both principal and interest and as to
272-26 exchange of coupon bonds for registered bonds or vice versa and
273-1 exchange of bonds of one denomination for bonds of other
273-2 denominations, be executed in such manner, and be payable at such
273-3 place or places within or outside the state as the resolution or
273-4 resolutions may provide.
273-5 (h) A resolution or resolutions authorizing bonds may
273-6 contain provisions, which shall be part of the contract between the
273-7 authority and the holder of the bonds from time to time:
273-8 (1) reserving the right to redeem the bonds at the
273-9 time or times, in the amounts, and at the prices, not exceeding 105
273-10 percent of the principal amount of the bonds, plus accrued
273-11 interest, as may be provided;
273-12 (2) providing for the setting aside of interest and
273-13 sinking funds or reserve funds and the regulation and disposition
273-14 of those funds;
273-15 (3) pledging, to secure the payment of the principal
273-16 of and interest on the bonds and of the sinking fund or reserve
273-17 fund payments agreed to be made with respect to the bonds, all or
273-18 any part of the gross or net revenues received by the authority
273-19 with respect to the property, real, personal, or mixed, acquired or
273-20 constructed or to be acquired or constructed with the bonds or the
273-21 proceeds of the bonds, or all or any part of the gross or net
273-22 revenues previously or thereafter received by the authority from
273-23 any source;
273-24 (4) prescribing the purposes to which the bonds or any
273-25 bonds issued later are to be applied;
273-26 (5) agreeing to set and collect rates and charges
274-1 sufficient to produce revenues adequate to pay the items specified
274-2 in Section 261.011(a) and prescribing the use and disposition of
274-3 all revenues;
274-4 (6) prescribing limitations on the issuance of
274-5 additional bonds and on the agreements that may be made with the
274-6 purchasers and successive holders of the bonds;
274-7 (7) relating to the construction, extension,
274-8 improvement, reconstruction, operation, maintenance, and repair of
274-9 the properties of the authority and the carrying of insurance on
274-10 all or any part of the properties covering loss or damage or loss
274-11 of use and occupancy resulting from specified risks;
274-12 (8) setting the procedure, if any, by which, if the
274-13 authority so desires, the terms of any contract with the holders of
274-14 the bonds may be amended or abrogated, the amount of bonds whose
274-15 holders must consent to such amendment or abrogation and the manner
274-16 in which the consent may be given;
274-17 (9) providing for the execution and delivery by the
274-18 authority, to a bank or trust company authorized by law to accept
274-19 trusts, of indentures and agreements for the benefit of the holders
274-20 of the bonds setting forth all of the agreements authorized by this
274-21 chapter to be made with or for the benefit of the holders of the
274-22 bonds and other provisions as may be customary in such indentures
274-23 or agreements; and
274-24 (10) making other provisions, not inconsistent with
274-25 the provisions of this chapter, as the board may approve, provided
274-26 that no agreement, contract, or commitment shall ever be made
275-1 which, under any contingency, could or would result in the United
275-2 States government or any of its agencies or bureaus claiming the
275-3 right or privilege of controlling or managing the properties and
275-4 facilities of the authority or the control or disposition of the
275-5 water of the Colorado River or its tributaries; provided, however,
275-6 that nothing in this chapter shall be construed as limiting or
275-7 restricting the rights or powers as set out in Section 261.014 in
275-8 the event of any default on the part of the authority; and provided
275-9 further that nothing in this chapter is intended to prohibit
275-10 compliance with existing federal regulations, if compliance with
275-11 those regulations is done on the advice and approval of the
275-12 attorney general.
275-13 Sec. 261.014. DEFAULT PROCEDURES. (a) A resolution
275-14 authorizing the issuance of bonds and any indenture or agreement
275-15 entered into pursuant to the resolution may include provisions
275-16 regarding a default on:
275-17 (1) the payment of the interest on any bonds as the
275-18 interest becomes due and payable;
275-19 (2) the payment of the principal of any bonds as they
275-20 become due and payable, whether at maturity, by call for
275-21 redemption, or otherwise; or
275-22 (3) the performance of an agreement made with the
275-23 purchasers or successive holders of any bonds.
275-24 (b) If a default described by Subsection (a) has occurred
275-25 and has continued for a period, if any, prescribed by the
275-26 resolution authorizing the issuance of the bonds, the trustee under
276-1 the indenture or indentures entered into with respect to the bonds
276-2 authorized by the resolution, or, if there is no indenture, a
276-3 trustee appointed in the manner provided in the resolution by the
276-4 holders of 25 percent in aggregate principal amount of the bonds
276-5 authorized by the resolution or resolutions and then outstanding,
276-6 shall, in the trustee's own name but for the equal and
276-7 proportionate benefit of the holders of all the bonds, and with or
276-8 without having possession of the bonds:
276-9 (1) by mandamus or other suit, action, or proceeding
276-10 at law or in equity, enforce all rights of the holders of the
276-11 bonds, including the requirements of Section 261.011;
276-12 (2) bring suit on the bonds or the appurtenant
276-13 coupons;
276-14 (3) by action or suit in equity, require the authority
276-15 to account as if it were the trustee of an express trust for the
276-16 bondholders;
276-17 (4) by action or suit in equity, enjoin any acts or
276-18 things which may be unlawful or in violation of the rights of the
276-19 holders of the bonds; or
276-20 (5) after such notice to the authority as the
276-21 resolution may provide, declare the principal of all of the bonds
276-22 due and payable, and if all defaults have been made good, then with
276-23 the written consent of the holders of 25 percent in aggregate
276-24 principal amount of the bonds then outstanding, annul the
276-25 declaration and its consequences; provided, however, that the
276-26 holders of more than a majority in principal amount of the bonds
277-1 authorized by the resolution and then outstanding shall, by written
277-2 instrument delivered to the trustee, have the right to direct and
277-3 control any and all action taken or to be taken by the trustee
277-4 under this section.
277-5 (c) A resolution, indenture, or agreement relating to bonds
277-6 may provide that in such suit, action, or proceeding under this
277-7 section, the trustee, whether or not all of the bonds have been
277-8 declared due and payable and with or without possession of any of
277-9 the bonds, shall be entitled as of right to the appointment of a
277-10 receiver who may enter and take possession of all or any part of
277-11 the properties of the authority and operate and maintain the
277-12 properties and set, collect, and receive rates and charges
277-13 sufficient to provide revenues adequate to pay the items set forth
277-14 in Section 261.011(a) and the costs and disbursements of the suit,
277-15 action, or proceeding and apply such revenues in conformity with
277-16 the provisions of this chapter and the resolution or resolutions
277-17 authorizing the bonds.
277-18 (d) In any suit, action, or proceeding by a trustee under
277-19 this section, the reasonable fees, counsel fees, and expenses of
277-20 the trustee or the receiver or receivers, if any, constitute
277-21 taxable disbursements, and all costs and disbursements allowed by
277-22 the court shall be a first charge on any revenues pledged to secure
277-23 the payment of the bonds.
277-24 (e) Subject to the provisions of the constitution, the
277-25 courts of Travis County shall have jurisdiction of any suit,
277-26 action, or proceeding under this section by a trustee on behalf of
278-1 the bondholders and of all property involved in the suit, action,
278-2 or proceeding.
278-3 (f) In addition to the powers specifically provided by this
278-4 section, the trustee shall have and possess all powers necessary or
278-5 appropriate for the exercise of the powers specifically provided or
278-6 incident to the general representation of the bondholders in the
278-7 enforcement of their rights.
278-8 Sec. 261.015. BOND APPROVAL AND REGISTRATION. (a) Before
278-9 any bonds may be sold by the authority, a certified copy of the
278-10 proceedings for the issuance of the bonds, including the form of
278-11 the bonds, together with any other information the attorney general
278-12 may require, shall be submitted to the attorney general, and if the
278-13 attorney general finds that the bonds have been issued in
278-14 accordance with law, the attorney general shall approve the bonds
278-15 and shall execute a certificate to that effect which shall be filed
278-16 in the office of the comptroller and be recorded in a record kept
278-17 for that purpose. Bonds may not be issued until they have been
278-18 registered by the comptroller, who shall register the bonds if the
278-19 attorney general has filed with the comptroller the certificate
278-20 approving the bonds and the proceedings for the issuance of the
278-21 bonds as provided in this subsection.
278-22 (b) Bonds approved by the attorney general and registered by
278-23 the comptroller and issued in accordance with the proceedings so
278-24 approved are valid and binding obligations on the revenues of the
278-25 authority and are incontestable for any cause after their
278-26 registration.
279-1 Sec. 261.016. ANNUAL AUDIT. (a) Annually the state auditor
279-2 shall audit the books and accounts of the authority in such manner
279-3 as to enable the auditor to report to the legislature as to the
279-4 manner and purpose of the expenditure of funds of the authority.
279-5 The audit shall cover the fiscal year from July 1 to June 30, and a
279-6 report of the audit shall be made before January 1 of each year, a
279-7 copy of which shall be filed with the governor, the attorney
279-8 general, the lieutenant governor, and the speaker of the house of
279-9 representatives.
279-10 (b) The state auditor, after completing the report, shall
279-11 prepare a detailed statement showing the actual cost of the audit
279-12 and certifying the account to the governor for approval. When
279-13 approved by the governor, the state auditor shall deliver an
279-14 official copy of the detailed statement to the general manager of
279-15 the authority, and the authority shall immediately deposit the
279-16 money with the comptroller, and the money shall be placed in the
279-17 general fund. Nothing in this chapter shall prohibit an
279-18 independent audit as required under any bond indenture or
279-19 resolution.
279-20 Sec. 261.017. AUTHORITY AS CONSERVATION AND RECLAMATION
279-21 DISTRICT. (a) The authority shall manage and use its facilities,
279-22 the water impounded by its dams on the Colorado River or its
279-23 tributaries, and the net operating revenues which may be available
279-24 to accomplish, to the extent possible, the purposes included in
279-25 Section 59(a), Article XVI, Texas Constitution, that are enumerated
279-26 in the provisions of this chapter, and the authority shall market
280-1 such electric power that in the opinion of the board will not be
280-2 immediately needed by the authority, under contracts and on
280-3 conditions that will best enable the authority to pay its operating
280-4 expenses, meet its outstanding financial obligations as they
280-5 mature, supply the increasing demand for electric power in the area
280-6 dependent on its systems for electric service on April 28, 1975,
280-7 and assure, to the extent possible, an adequate supply of water for
280-8 irrigation and other useful purposes, as it is needed in the
280-9 various counties comprising the authority.
280-10 (b) When bonds are to be issued to finance in whole or in
280-11 part water-using facilities, before approving the bonds the
280-12 attorney general shall be furnished a resolution from the
280-13 commission or its successor agency certifying that the authority
280-14 possesses the necessary water right authorizing it to impound or
280-15 otherwise appropriate the waters to be utilized by the project.
280-16 Sec. 261.018. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued
280-17 by the authority pursuant to the provisions of this chapter are
280-18 negotiable instruments under the laws of this state.
280-19 Sec. 261.019. ADDITIONAL POWERS RELATING TO CONTRACTS,
280-20 RULES, AND REGULATIONS. The authority may, but without intending
280-21 by this provision to limit any powers of the authority as granted
280-22 to it by this chapter, enter into and carry out contracts or
280-23 establish or comply with rules and regulations concerning labor and
280-24 materials and other related matters in connection with any project
280-25 or projects as the authority considers desirable or as requested by
280-26 the United States, the state, or any corporation or agency created,
281-1 designated, or established by the United States or the state that
281-2 may assist in the financing of the project or projects.
281-3 Sec. 261.020. PURCHASE OF BONDS. The authority may, out of
281-4 any funds available for the purpose, purchase any bonds issued by
281-5 it at a price not exceeding the redemption price applicable at the
281-6 time of the purchase, or if the bonds are not redeemable, at a
281-7 price not exceeding the principal amount of the bonds plus accrued
281-8 interest. All bonds so purchased shall be canceled.
281-9 Sec. 261.021. DISPOSITION OF PROPERTY. (a) Nothing in this
281-10 chapter shall be construed as authorizing the authority, and the
281-11 authority is not authorized, to mortgage or otherwise encumber any
281-12 of its property of any kind, real, personal, or mixed, or any
281-13 interest in such property, or to acquire any property or interest
281-14 subject to a mortgage or conditional sale, provided that this
281-15 section shall not be construed as preventing the pledging of the
281-16 revenues of the authority as authorized by this chapter.
281-17 (b) Nothing in this chapter shall be construed as
281-18 authorizing the sale of any property or interest by the authority
281-19 or by any receiver of any of its properties or through any court
281-20 proceeding or otherwise, unless, by the affirmative vote of
281-21 three-fourths of its statutory membership, the board has determined
281-22 that the property or interest is not necessary or convenient or of
281-23 beneficial use to the business of the authority and has approved
281-24 the terms of the sale. Except by sale as expressly authorized in
281-25 this section, no such property or interest shall ever come into the
281-26 ownership or control, directly or indirectly, of any person, firm,
282-1 or corporation other than a public authority created under the laws
282-2 of the state.
282-3 (c) The limitations on the sale of properties of the
282-4 authority in this section shall not and are not intended to
282-5 preclude the authority from selling any interest owned or held by
282-6 the authority in any jointly owned electric power and generating
282-7 facilities constructed, or to be constructed, pursuant to the
282-8 provisions of Section 261.004(t), provided that any such sale of an
282-9 ownership interest in a joint project is provided for and in
282-10 conformance with any contract with other owners regarding such
282-11 electric power and energy generating facilities.
282-12 (d) All property of the authority shall be at all times
282-13 exempted from forced sale, and nothing in this chapter shall be
282-14 construed to authorize the sale of any of the property of the
282-15 authority under any judgment rendered in any suit, and such sales
282-16 are prohibited.
282-17 Sec. 261.022. PROPERTY AGREEMENTS WITH CITY OF AUSTIN.
282-18 Nothing in this chapter prohibits the authority from owning
282-19 property in conjunction with, acquiring property from, or selling
282-20 property to the City of Austin, on terms and conditions as the
282-21 authority and the city may agree. The authority may acquire
282-22 property from the City of Austin subject to repurchase agreements,
282-23 or other terms and conditions as may be agreed on between the
282-24 authority and the city, and may enter into such contractual
282-25 relations with the city respecting property as the parties may
282-26 agree on.
283-1 Sec. 261.023. PROPERTY USEFUL IN THE PRODUCTION OR
283-2 UTILIZATION OF ELECTRIC ENERGY. Nothing in this chapter shall
283-3 prohibit or restrict the sale, lease, or other disposition, to any
283-4 electric cooperative, municipality, or other governmental agency or
283-5 body politic and corporate of the state, of any property acquired
283-6 or constructed by the authority and incidental to or used or useful
283-7 in the generation, production, transmission, distribution, or sale
283-8 of electric energy. The authority is authorized to pledge the
283-9 proceeds of any such sale or sales to the same extent and in the
283-10 same manner in which it is authorized to pledge its revenues.
283-11 Sec. 261.024. PUBLIC ACCESS. (a) The authority may not
283-12 prevent the public use of its lands for recreation purposes and
283-13 fishing except at such points where, in the opinion of the board,
283-14 the use would interfere with the proper conduct of the business of
283-15 the authority or would interfere with the lawful use of the
283-16 property. A lease of authority lands, except one expressly
283-17 permitted by Section 261.023, is not lawful unless it provides for
283-18 free public use of the lands for recreational purposes and fishing.
283-19 (b) All public rights-of-way traversing the areas adjacent
283-20 to the areas flooded or to be flooded by the impounded waters shall
283-21 remain open as a way of free public passage to and from the lakes
283-22 created, and no charge shall ever be made to the public for the
283-23 right to engage in fishing, boating, or swimming on such lakes.
283-24 (c) If any citizen of the state or of the United States
283-25 advises the attorney general that this section has not been
283-26 complied with, the attorney general is authorized after
284-1 investigation of the complaint and notice to the authority to
284-2 institute the proper legal proceedings, if any are required, to
284-3 require the authority or its successor to comply with this section.
284-4 (d) If any of the land owned by the authority bordering the
284-5 lakes to be created under the authority of this chapter is sold by
284-6 the authority, the authority shall retain in each tract a strip 20
284-7 feet wide abutting the high-water line of the lake for the purpose
284-8 of passage and use by the public for public sports and amusements;
284-9 provided, however, that this subsection shall not apply to any
284-10 sales of land by the authority to any state or federal agency to be
284-11 used for game or fish sanctuaries, preserves, or for propagation
284-12 purposes.
284-13 Sec. 261.025. BONDS EXEMPT FROM TAXATION. All bonds and
284-14 interest on the bonds issued under the provisions of this chapter
284-15 are exempt from taxation, except inheritance taxes, by the state or
284-16 by any municipal corporation, county, or other political
284-17 subdivision or taxing district of the state.
284-18 Sec. 261.026. SOURCE OF AUTHORITY. (a) This chapter,
284-19 without reference to other statutory provisions, constitutes full
284-20 authority for the authorization and issuance of bonds under this
284-21 chapter, and no other act or law with regard to the authorization
284-22 or issuance of obligations or the deposit of the proceeds of
284-23 obligations, or in any way impeding or restricting the carrying out
284-24 of the acts authorized by this chapter shall be construed as
284-25 applying a limitation to any proceedings taken under or acts done
284-26 pursuant to this chapter.
285-1 (b) Nothing in this chapter shall prevent the authority from
285-2 issuing bonds under any applicable general law of the state,
285-3 provided, however, that no bonds are issued that would be in
285-4 conflict with Section 261.025.
285-5 Sec. 261.027. BONDS AS INVESTMENTS AND SECURITY FOR
285-6 DEPOSITS. (a) All bonds of the authority are legal and authorized
285-7 investments for individuals, partnerships, profit and nonprofit
285-8 corporations, banks, savings banks, trust companies, building and
285-9 loan associations, savings and loan associations, insurance
285-10 companies, fiduciaries, trustees, and guardians and for the sinking
285-11 funds of cities, towns, villages, counties, school districts, or
285-12 other political corporations or subdivisions of the state.
285-13 (b) The bonds are eligible to secure the deposit of all
285-14 public funds of the state and any public funds of cities, towns,
285-15 villages, counties, school districts, or other political
285-16 corporations or subdivisions of the state and are lawful and
285-17 sufficient security for such deposits to the extent of their par
285-18 value when accompanied by all unmatured coupons.
285-19 Sec. 261.028. CONSTRUCTION. This chapter and all of its
285-20 terms and provisions shall be liberally construed to carry out the
285-21 purposes set forth in this chapter.
285-22 Sec. 261.029. AUTHORITY POWERS IN LAMPASAS COUNTY.
285-23 Notwithstanding any other provision of this chapter, the authority
285-24 may exercise all powers within Lampasas County that it may
285-25 otherwise exercise within the 10 counties specified in Section
285-26 261.003, except that the authority may not provide water or
286-1 wastewater services in the portion of Lampasas County outside the
286-2 Colorado River watershed without the consent of the Brazos River
286-3 Authority.
286-4 Sec. 261.030. ADDITIONAL SPECIFIC POWERS. (a)
286-5 Notwithstanding any other provision of this chapter, the
286-6 authority:
286-7 (1) may purchase, construct, acquire, own, operate,
286-8 repair, improve, or extend any facility necessary or convenient to
286-9 provide water services in Williamson County in cooperation with
286-10 another special district, a municipality, or another governmental
286-11 entity;
286-12 (2) may not provide water services in the watershed of
286-13 the Brazos River unless the authority obtains in writing the
286-14 consent of the Brazos River Authority before the services are
286-15 provided; and
286-16 (3) may transfer surface water from the authority to a
286-17 place in Williamson County that is outside the watershed of the
286-18 Colorado River only if the transfer is made to:
286-19 (A) a municipality that was a water customer of
286-20 the authority on May 20, 1997, and located in the watersheds of
286-21 both the Colorado River and the Brazos River; or
286-22 (B) a person or entity that pays for the surface
286-23 water in an amount sufficient to pay both the authority's
286-24 applicable water rate and an additional charge to pay the costs of
286-25 mitigating any adverse effects of the transfer of surface water to
286-26 Williamson County from the Colorado River watershed, and provided
287-1 the transfer results in no net loss of water to the Colorado River
287-2 watershed as determined by the board.
287-3 (b) Notwithstanding the amounts of surface water transferred
287-4 by the authority to municipalities in accordance with Subsection
287-5 (a)(3)(A), the volume of surface water authorized for transfer by
287-6 the authority in accordance with Subsection (a)(3)(B) shall not
287-7 exceed 25,000 acre-feet per year, it being the intent of the
287-8 legislature that the authority shall not be the sole provider of
287-9 surface water to Williamson County.
287-10 (c) The authority shall determine the amount of the
287-11 additional charge under Subsection (a)(3)(B). The additional
287-12 charge may not be less than 10 percent of the authority's
287-13 applicable rate for surface water to be transferred. The authority
287-14 shall deposit any money the authority receives from the additional
287-15 charge, and may deposit any other money as the board determines,
287-16 into a separate fund designated as the agricultural water
287-17 conservation fund. The authority may use money from the
287-18 agricultural water conservation fund only for the development of
287-19 water resources or other water use strategies to replace or offset
287-20 the amount of surface water to be transferred to Williamson County,
287-21 including the development and implementation of methods, programs,
287-22 and strategies relating to groundwater resources, reuse,
287-23 conservation, and other opportunities to reduce the reliance on
287-24 surface water for agricultural irrigation, provided that the
287-25 methods, programs, and strategies take into consideration the
287-26 surface water and groundwater needs of the affected Colorado River
288-1 Basin users.
288-2 (d) Before its determination of the use of money from the
288-3 agricultural water conservation fund, the authority shall consult
288-4 with an advisory committee representing agricultural irrigation
288-5 interests that is appointed by the county judges of Matagorda,
288-6 Wharton, and Colorado counties. The board's determination of the
288-7 additional charge is not subject to review or modification by any
288-8 regulatory agency or authority. Water resources developed or
288-9 conserved through the additional charge may be acquired from any
288-10 source inside or outside the boundaries of the authority and shall
288-11 be used to benefit the water service areas of the authority's
288-12 irrigation operations.
288-13 CHAPTER 262. LOWER NECHES VALLEY AUTHORITY
288-14 Sec. 262.001. CREATION. (a) A conservation and reclamation
288-15 district to be known as the "Lower Neches Valley Authority" is
288-16 created. The authority is a governmental agency and a body politic
288-17 and corporate.
288-18 (b) The authority is created under and is essential to
288-19 accomplish the purposes of Section 59, Article XVI, Texas
288-20 Constitution.
288-21 (c) The authority may exercise the powers granted by Section
288-22 59, Article XVI, Texas Constitution, to districts created to
288-23 conserve, store, control, preserve, utilize, and distribute the
288-24 storm waters, floodwaters, and waters of the rivers and streams of
288-25 the state, as well as such powers as may be contemplated and
288-26 implied by the purposes of that provision of the constitution and
289-1 as may be conferred by general law and by the provisions of this
289-2 chapter, except that nothing in this chapter shall be construed to
289-3 authorize the authority to levy any taxes or special assessments or
289-4 to create any debt payable out of taxation.
289-5 (d) The authority may construct, maintain, and operate, in
289-6 the valleys of the Neches River and its tributaries, within or
289-7 outside the boundaries of the authority, all works considered
289-8 essential to the operation of the authority and for its
289-9 administration in the control, storing, preservation, and
289-10 distribution for all useful purposes of the waters of the Neches
289-11 River and its tributaries, including the storm waters and
289-12 floodwaters.
289-13 (e) The authority may exercise the authority and power of
289-14 control and regulation over such waters of the Neches River and its
289-15 tributaries as may be exercised by the state, subject to the
289-16 provisions of the constitution and the acts of the legislature.
289-17 Sec. 262.002. DEFINITIONS. In this chapter:
289-18 (1) "Authority" means the Lower Neches Valley
289-19 Authority.
289-20 (2) "Board" means the board of directors of the
289-21 authority.
289-22 (3) "Director" means a member of the board.
289-23 Sec. 262.003. TERRITORY. The territory of the authority is
289-24 as follows: All of Jefferson, Hardin and Tyler Counties, a strip
289-25 of land ten (10) miles in width off the Eastern end of Liberty
289-26 County (the West line of said strip being parallel to and ten (10)
290-1 miles West of the extreme Eastern boundary line of Liberty County,
290-2 and a strip of land Fifteen (15) miles in width off the East side
290-3 of Chambers County. (the West line of such strip being parallel to
290-4 and fifteen (15) miles West of the Eastern boundary line of
290-5 Chambers County).
290-6 Sec. 262.004. BOARD OF DIRECTORS. (a) The management and
290-7 control of all the affairs of the authority shall be vested in a
290-8 board consisting of nine directors.
290-9 (b) A director must be a freehold property taxpayer and a
290-10 legal voter of the state.
290-11 (c) The governor shall appoint the directors with the advice
290-12 and consent of the senate. The board shall include five residents
290-13 of Jefferson County, two of Hardin County, and two of Tyler County.
290-14 (d) Directors serve for staggered terms of six years.
290-15 Directors hold office after their appointment and qualification
290-16 until their successors are appointed and have qualified, unless
290-17 sooner removed by the governor.
290-18 (e) If a vacancy occurs on the board, the vacancy is filled
290-19 for the unexpired term in the manner provided for appointments for
290-20 a full term.
290-21 (f) Within 15 days after appointment, each director must
290-22 qualify by taking the official oath and filing with the secretary
290-23 of state a good and sufficient bond in the amount of $5,000 payable
290-24 to the authority, conditioned on the faithful performance of that
290-25 director's duties, and subject to approval by the secretary of
290-26 state.
291-1 (g) The board shall employ a general manager at the
291-2 compensation set by the board.
291-3 Sec. 262.005. OFFICERS; VOTING REQUIREMENTS; WARRANTS.
291-4 (a) The board shall elect from among its members a president, vice
291-5 president, treasurer, and secretary.
291-6 (b) Five directors constitute a quorum at any meeting, and a
291-7 concurrence of a majority of those present is sufficient in all
291-8 matters pertaining to the business of the authority, except that
291-9 the letting of construction contracts and the authorization of the
291-10 issuance of checks paying construction contracts require the
291-11 concurrence of seven directors.
291-12 (c) Warrants for the payment of money may be drawn and
291-13 signed by two officers or employees designated by standing order
291-14 entered on the minutes of the board when such accounts have been
291-15 contracted and ordered paid by the board.
291-16 Sec. 262.006. OFFICER AND EMPLOYEE BONDS. The board shall
291-17 require an officer or employee who collects, pays, or handles any
291-18 funds of the authority to furnish good and sufficient bond, with a
291-19 duly authorized surety company, payable to the authority, in an
291-20 amount sufficient to safeguard the authority. The bond must be
291-21 conditioned on the faithful performance of the person's duties and
291-22 on the person's accounting for all funds and property of the
291-23 authority coming into the person's hands.
291-24 Sec. 262.007. DUTIES OF OFFICERS; MEETINGS. (a) The
291-25 president is the chief executive officer of the authority and
291-26 presides at all meetings of the board. The vice president acts as
292-1 president in case of the absence or disability of the president.
292-2 (b) The secretary is responsible for keeping all records and
292-3 books of the authority. In case of the absence or inability of the
292-4 secretary to act, a secretary pro tempore shall be selected by the
292-5 board.
292-6 (c) The board shall hold regular meetings at the office of
292-7 the authority in February, May, August, and November of each year
292-8 and may hold other meetings at such other times as the business of
292-9 the authority may require.
292-10 Sec. 262.008. DIRECTOR FEES. (a) A director is entitled to
292-11 receive a fee to be determined by the board not to exceed the fees
292-12 prescribed by Section 49.060 for each day of service necessary to
292-13 the discharge of the director's duties, provided the service is
292-14 authorized by vote of the board.
292-15 (b) Each director shall file with the secretary, on the last
292-16 day of each month or as soon after that date as possible, a
292-17 verified statement showing the actual number of days of service for
292-18 that month before a warrant is issued for the service.
292-19 Sec. 262.009. RECORDS; AUTHORITY OFFICE. (a) The board
292-20 shall keep a true and full record of its meetings and proceedings
292-21 and maintain the records in a secure manner. The records are the
292-22 property of the authority and are subject to public inspection.
292-23 (b) An office shall be established and maintained within the
292-24 authority for the conduct of the authority's business.
292-25 Sec. 262.010. ACCOUNT RECORDS; AUDIT. (a) The authority
292-26 shall keep a complete book of accounts.
293-1 (b) The account books and records of the authority and of
293-2 the depository of the authority shall be audited by a certified
293-3 public accountant annually as soon as practicable after the
293-4 expiration of each year. The audit shall cover the preceding
293-5 calendar year.
293-6 (c) A report on the audit required by this section shall be
293-7 submitted at the first regular meeting of the board after the end
293-8 of the calendar year. A copy of the report shall be filed in the
293-9 office of the authority, with the depository of the authority, in
293-10 the office of the auditor, and with the commission, and all such
293-11 copies shall be open to public inspection.
293-12 Sec. 262.011. GENERAL MANAGER; EMPLOYEES. (a) The board
293-13 may employ a general manager for the authority and may delegate to
293-14 the general manager full authority to manage and operate the
293-15 authority's affairs subject only to the orders of the board. The
293-16 general manager's term of office and compensation shall be
293-17 determined in the manner provided by the board.
293-18 (b) The terms of employment and compensation of all
293-19 authority positions shall be determined in the manner provided by
293-20 the board.
293-21 Sec. 262.012. SURETY BONDS. All bonds required to be given
293-22 by directors, officers, and employees of the authority shall be
293-23 executed by a surety company authorized to do business in this
293-24 state. The authority may pay the premiums on the bonds.
293-25 Sec. 262.013. CONFLICT OF INTEREST; PENALTY. A director,
293-26 engineer, or employee of the authority may not be, directly or
294-1 indirectly, interested either for that person or as an agent for
294-2 anyone else in any contract for the purchase or construction of any
294-3 work by the authority. If such a person, directly or indirectly,
294-4 becomes interested in such a contract, the person shall be guilty
294-5 of a misdemeanor and on conviction shall be punished by a fine not
294-6 to exceed $1,000, by confinement in the county jail for not less
294-7 than six months or more than one year, or by both fine and
294-8 imprisonment.
294-9 Sec. 262.014. CONTROL AND EMPLOYMENT OF WATERS. (a) The
294-10 authority may exercise, in addition to all the powers otherwise
294-11 provided by this chapter for the conservation and beneficial
294-12 utilization of waters, the power of control and employment of the
294-13 waters of the Neches River and its tributaries, including the storm
294-14 waters and floodwaters, in the manner and for the following
294-15 purposes:
294-16 (1) to provide through practical and legal means for
294-17 the control and coordination of the regulation of the waters of the
294-18 Neches River and its tributaries;
294-19 (2) to provide by adequate organization and
294-20 administration for the preservation of the equitable rights of the
294-21 people of the different sections of the watershed area in the
294-22 beneficial use of the waters of the Neches River and its
294-23 tributaries;
294-24 (3) to provide for storage, control, and conservation
294-25 of the waters of the Neches River and its tributaries within or
294-26 outside the authority in order to prevent the escape of any of the
295-1 waters without the maximum of public service and to provide for the
295-2 prevention of the devastation of lands from recurrent overflows and
295-3 the protection of life and property in the authority from
295-4 uncontrolled floodwaters;
295-5 (4) to provide for the conservation of the waters of
295-6 the Neches River and its tributaries essential for the domestic
295-7 uses of the people of the authority, including all necessary water
295-8 supplies for cities and towns;
295-9 (5) to provide for the irrigation of all lands in the
295-10 authority, lands outside the authority but within the watershed
295-11 area, where irrigation is required for agricultural purposes, or
295-12 may be considered helpful to more profitable agricultural
295-13 production, and to provide for the equitable distribution of water
295-14 to the regional potential requirements for all uses, domestic,
295-15 manufacturing, and irrigation;
295-16 (6) to provide for encouragement and development of
295-17 drainage systems and provisions for drainage of lands in the
295-18 valleys of the Neches River and its tributaries needing drainage
295-19 for profitable agricultural production and for drainage of other
295-20 lands in the watershed area of the authority requiring drainage for
295-21 the most advantageous use;
295-22 (7) to provide for the conservation of all soils
295-23 against destructive erosion and to prevent the increased flood
295-24 dangers caused by destructive soil erosion;
295-25 (8) to control and make storm waters and floodwaters
295-26 available for employment in the development of commercial and
296-1 industrial enterprises in all sections of the watershed area of the
296-2 authority of the Neches River and its tributaries;
296-3 (9) to provide for the control, storage, and
296-4 employment of storm waters and floodwaters in the development and
296-5 distribution of hydroelectric power, where this use may be
296-6 economically coordinated with other and superior uses and
296-7 subordinated to the uses declared by law to be superior; and
296-8 (10) to provide for all purposes for which floodwaters
296-9 and storm waters, when controlled and conserved, may be used in the
296-10 performance of a useful service as contemplated and authorized by
296-11 the provisions of the constitution and the public policy it
296-12 declares.
296-13 (b) The authority may purchase or construct all works
296-14 necessary or convenient for the exercise of the powers and to
296-15 accomplish the purposes specified in this chapter and to purchase
296-16 or otherwise acquire all lands or other property necessary or
296-17 convenient for carrying out those purposes.
296-18 (c) Plans and works provided by the authority and works
296-19 provided under authorization of the authority must give primary
296-20 consideration to the necessary and potential needs for water by or
296-21 within the area in the authority constituting the watershed of the
296-22 Neches River and its tributaries.
296-23 Sec. 262.015. EMINENT DOMAIN. (a) The right of eminent
296-24 domain is expressly conferred on the authority to enable it to
296-25 acquire the fee simple title to, or easement or right-of-way over
296-26 and through, all lands, water, or lands under water, private or
297-1 public, within and outside the authority, necessary or convenient
297-2 to carry out any of the purposes and powers conferred on the
297-3 authority by this chapter.
297-4 (b) Condemnation proceedings shall be under the direction of
297-5 the board and in the name of the authority. The assessment of
297-6 damages and all procedures with regard to condemnation, appeal, and
297-7 payment shall be in conformity with Chapter 21, Property Code.
297-8 Sec. 262.016. FEES AND CHARGES. (a) The board shall
297-9 prescribe fees and charges to be collected for the use of water,
297-10 water connections, or other service. The fees and charges must be
297-11 reasonable and equitable and fully sufficient to produce revenues
297-12 adequate to pay, and from which the board shall pay:
297-13 (1) all expenses necessary to the operation and
297-14 maintenance of the improvements and facilities of the authority,
297-15 including the cost of the acquisition of properties and materials
297-16 necessary to maintain the improvements and facilities in good
297-17 condition and to operate them efficiently, necessary wages and
297-18 salaries of the authority, and such other expenses as may be
297-19 reasonably necessary to the efficient operation of the improvements
297-20 and facilities;
297-21 (2) the annual or semiannual interest on any
297-22 obligations issued under this chapter that are payable out of the
297-23 revenues of the improvements and facilities; and
297-24 (3) the amount required to be paid annually into the
297-25 sinking fund for the payment of any obligations issued under this
297-26 chapter that are payable out of the revenues of the improvements
298-1 and facilities.
298-2 (b) No charges other than those authorized by Subsection (a)
298-3 may be made on the revenues derived from the improvements and
298-4 facilities of the authority if any obligations issued under this
298-5 chapter remain outstanding and unpaid as to principal or interest;
298-6 provided, however, that out of revenues that may be received in
298-7 excess of those required for the purposes listed in Subsection (a)
298-8 the board may pay the cost of improvements and replacements not
298-9 covered by Subsection (a)(1) and may establish a reasonable
298-10 depreciation and emergency fund.
298-11 (c) The fees and charges of the authority may not be in
298-12 excess of what may be reasonably necessary to fulfill the
298-13 obligations imposed on the authority by this chapter.
298-14 Sec. 262.017. EMPLOYEES FOR CONSTRUCTION, OPERATION, AND
298-15 MAINTENANCE. The board may employ managers, engineers, attorneys,
298-16 and all necessary employees to properly construct, operate, and
298-17 maintain the works of the authority and carry out the provisions of
298-18 this chapter and may pay reasonable compensation for such services.
298-19 Sec. 262.018. CONTRACTS, LEASES, AND AGREEMENTS. (a) The
298-20 authority, in addition to the powers otherwise provided by this
298-21 chapter, may enter into all contracts, leases, and agreements
298-22 necessary or convenient to carry out any of the powers granted by
298-23 this chapter. The contracts, leases, and agreements may be entered
298-24 into with any person, real or artificial, any corporation,
298-25 municipal, public, or private, or any government or governmental
298-26 agency, including the United States government and the state.
299-1 (b) The authority may convey or cause to be conveyed any of
299-2 its properties, rights, lands, tenements, easements, improvements,
299-3 reservoirs, dams, canals, plants, laterals, works, and facilities
299-4 to the United States government or any agency of the United States
299-5 and may enter into a lease with the United States government or any
299-6 agency of the United States government relative to such properties
299-7 and obligate itself to pay rent for such properties out of the
299-8 income and revenues of the properties, with or without the
299-9 privilege of purchase.
299-10 (c) Nothing in this section shall be construed to authorize
299-11 the assumption by the authority of any obligation requiring payment
299-12 out of taxes.
299-13 (d) Contracts, leases, and agreements authorized by this
299-14 section shall be approved by resolution of the board and shall be
299-15 executed by the president and attested by the secretary.
299-16 Sec. 262.019. RIGHT TO SUE. The authority may sue and be
299-17 sued.
299-18 Sec. 262.020. APPROVAL OF PLANS AND SPECIFICATIONS. Before
299-19 the authority may establish a diversion point or construct a canal,
299-20 a pumping plant, or other works provided for in this chapter, the
299-21 authority must present to the commission plans and specifications
299-22 of the canal, plant, or other works and obtain the approval of the
299-23 commission.
299-24 Sec. 262.021. ACQUISITION OF LAND FOR PUBLIC PARKS.
299-25 (a) The authority may acquire and own lands within the authority
299-26 by purchase for the purpose of operating and maintaining public
300-1 parks for public recreation and may construct and operate
300-2 improvements and facilities on such lands to accomplish that
300-3 purpose.
300-4 (b) Funds derived from taxation may not be expended in
300-5 purchasing lands or constructing and maintaining improvements and
300-6 facilities under this section.
300-7 Sec. 262.022. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
300-8 authority may sponsor and participate in an economic development
300-9 program within the areas served by the authority to strengthen the
300-10 economic base and further the economic development of the state.
300-11 The program may not be outside the areas served by the authority
300-12 unless the authority has entered into an interlocal agreement with
300-13 an entity under Subsection (c).
300-14 (b) Each program must be established by formal action of the
300-15 board. The board shall:
300-16 (1) establish the goals of the program;
300-17 (2) impose requirements on persons participating in
300-18 and receiving the benefits of the program; and
300-19 (3) provide restrictions, procedures, and budget
300-20 limits that the board determines are necessary to ensure that the
300-21 governmental purposes of this section and the program are achieved.
300-22 (c) A program under this section may involve grants or loans
300-23 of money, services, or equipment to a person engaged in an economic
300-24 development activity, including a public fire-fighting
300-25 organization, governmental body, nonprofit corporation, local or
300-26 regional development council, or other nonprofit or noncommercial
301-1 organization. The authority may provide assistance to a for-profit
301-2 entity if the assistance is necessary or appropriate to carry out
301-3 an economic development program consistent with the purposes of
301-4 this section.
301-5 (d) The authority may employ staff and expend its resources
301-6 to further an economic development program under this section,
301-7 except that the authority may not use money received from an ad
301-8 valorem tax or a general appropriation to further a program. The
301-9 authority may apply for and receive money, grants, or other
301-10 assistance from any source to carry out an economic development
301-11 program under this section.
301-12 (e) The authority and any other public or private person may
301-13 enter into an agreement with respect to an economic development
301-14 program.
301-15 (f) If the authority provides scholarships, grants, loans,
301-16 or financial assistance to a public fire-fighting organization, the
301-17 authority shall adopt guidelines to determine:
301-18 (1) eligibility for the assistance;
301-19 (2) the amount of loans, grants, or other assistance
301-20 the authority may make available to a fire-fighting organization;
301-21 and
301-22 (3) the type of equipment, education, or training for
301-23 which the assistance may be used.
301-24 (g) A determination by the board that a program is intended
301-25 and expected to carry out the program's stated purposes is
301-26 conclusive with respect to whether the purposes of this section are
302-1 satisfied.
302-2 (h) In this section, an economic development program
302-3 includes a community assistance program, a privatization program,
302-4 or any other program designed to:
302-5 (1) encourage economic diversification;
302-6 (2) maintain or expand employment;
302-7 (3) train persons;
302-8 (4) eliminate conditions detrimental to the public
302-9 health, safety, or welfare;
302-10 (5) improve the quality or quantity of services
302-11 essential for the development of viable communities and economic
302-12 growth, including services related to:
302-13 (A) education;
302-14 (B) transportation;
302-15 (C) public safety;
302-16 (D) recreation;
302-17 (E) health care;
302-18 (F) water and wastewater treatment; or
302-19 (G) rural water and sewer development; or
302-20 (6) contribute to the health and development of a
302-21 community to improve the attractiveness of the community to public
302-22 and private enterprises.
302-23 Sec. 262.023. COMMISSION SUPERVISION. In the exercise of
302-24 the powers and duties provided by this chapter, the authority is
302-25 subject to the continuing rights of supervision of the commission.
302-26 The commission may approve or refuse to approve the adequacy of any
303-1 plan or plans for flood control or conservation improvement
303-2 purposes devised by the authority for the achievement of the plans
303-3 and purposes intended in the creation of the authority which
303-4 contemplate improvements supervised by the commission under the
303-5 provisions of general law.
303-6 Sec. 262.024. ADDITIONAL POWERS. (a) The authority has and
303-7 may exercise the functions, powers, authority, rights, and duties
303-8 necessary to accomplish the purposes for which the authority is
303-9 created, including investigating and planning, acquiring,
303-10 constructing, maintaining, and operating all necessary properties,
303-11 lands, rights, tenements, easements, improvements, reservoirs,
303-12 dams, canals, laterals, plants, works, and facilities, including
303-13 the acquisition within or outside the authority of lands,
303-14 rights-of-way, water rights, and all other properties, tenements,
303-15 and easements and other rights incident to, helpful to, or in aid
303-16 of carrying out the purposes of the authority as provided by this
303-17 chapter.
303-18 (b) This chapter shall be liberally construed to effectuate
303-19 the purposes provided by this chapter.
303-20 Sec. 262.025. LOANS. The authority may borrow money for any
303-21 corporate purpose from any department or agency of the United
303-22 States or from any other source, and in evidence of any such debt
303-23 may issue notes, warrants, bonds, certificates of indebtedness, or
303-24 other forms of obligations of the authority, payable solely out of
303-25 the revenues to be derived from the improvements and facilities and
303-26 the operations and services of the improvements and facilities.
304-1 Sec. 262.026. ISSUANCE OF OBLIGATIONS. (a) Each issue of
304-2 obligations authorized under this chapter constitutes a separate
304-3 series and shall be appropriately designated. The obligations
304-4 shall not constitute an indebtedness or pledge of the credit of the
304-5 authority and shall never be paid, in whole or in part, out of any
304-6 funds raised, or to be raised, by taxation, and must contain a
304-7 recital to that effect. Obligations issued under this chapter
304-8 shall be in registered or coupon form and if in coupon form may be
304-9 registrable as to principal only, or as to both principal and
304-10 interest.
304-11 (b) The obligations must bear interest payable annually or
304-12 semiannually, at a rate not to exceed six percent per year and must
304-13 be in denominations and must mature, serially or at one time not
304-14 more than 50 years from their date, in such manner as may be
304-15 provided by the board.
304-16 (c) The principal of and interest on the obligations shall
304-17 be made payable at any place or places within or outside the state
304-18 in the discretion of the board and may be made redeemable at the
304-19 option of the board before maturity at such premium or premiums as
304-20 the board determines.
304-21 (d) The obligations must be signed by the president and
304-22 secretary of the board. The interest coupons attached to the
304-23 obligations may be executed with facsimile signatures of those
304-24 officers.
304-25 (e) The obligations shall be sold in the manner and at the
304-26 time the board determines to be expedient and necessary to the
305-1 interests of the authority, provided, however, that in no event may
305-2 obligations be sold for a price that will result in an interest
305-3 yield of more than six percent computed to maturity according to
305-4 standard bond tables in general use by banks and insurance
305-5 companies.
305-6 (f) If an officer whose signature is on the obligations or
305-7 coupons ceases to be an officer before the delivery of the
305-8 obligations to the purchaser, the signature continues to be valid
305-9 and sufficient for all purposes.
305-10 (g) Obligations issued under this chapter are negotiable
305-11 instruments under the laws of this state.
305-12 Sec. 262.027. REVENUE OBLIGATIONS. (a) Obligations issued
305-13 under this chapter may be issued payable from and secured by the
305-14 pledge of all the revenues derived from the operation of the
305-15 improvements and facilities of the authority, exclusive of any
305-16 revenues derived from taxation or assessments, or may be payable
305-17 from and secured by the pledge of only such revenues as may be
305-18 derived from the operation of the improvements and facilities
305-19 acquired with the proceeds of the sale of the obligations or may be
305-20 payable from and secured by the pledge of a specified part of the
305-21 revenues derived from the operation of the improvements and
305-22 facilities of the authority, all as may be provided in the
305-23 proceedings authorizing the issuance of the obligations.
305-24 (b) If more than one series of obligations is issued under
305-25 the provisions of this chapter payable from and secured by
305-26 identical revenues, priority of lien against the revenues shall
306-1 depend on the time of delivery of the obligations, each series
306-2 enjoying a lien against the revenues prior and superior to that
306-3 enjoyed by any other series of obligations subsequently delivered,
306-4 provided, however, that as to any issue or series of obligations
306-5 that may be authorized as a unit but delivered from time to time in
306-6 blocks, the board may, in the proceedings authorizing the issuance
306-7 of the obligations, provide that all of the obligations of that
306-8 series or issue shall be coequal as to lien regardless of the time
306-9 of delivery.
306-10 Sec. 262.028. SINKING FUND. (a) A resolution or order
306-11 authorizing the issuance of obligations under this chapter shall
306-12 provide for the creation of a sinking fund. Revenues pledged to
306-13 the payment of the obligations shall be paid into the sinking fund
306-14 from month to month as the revenues are collected in amounts fully
306-15 sufficient to pay the principal of and interest on the obligations.
306-16 The money in the sinking fund shall be applied solely to the
306-17 payment of interest on the obligations for the payment of which the
306-18 fund is created and for the retirement of the obligations at or
306-19 before maturity in the manner provided in this section.
306-20 (b) At the time the obligations are authorized, the board
306-21 may provide that all money in the sinking fund in excess of the
306-22 amount required for the payment of the interest on and principal of
306-23 the outstanding obligations, for the period the board may
306-24 determine, shall be expended once each year pursuant to the board's
306-25 order in the purchase of obligations for the account for which the
306-26 sinking fund has been accumulated, if any obligations can be
307-1 purchased at a price that seems reasonable to the board, and may
307-2 provide that, if the obligations contain an option permitting
307-3 retirement before maturity, the excess amounts shall be paid out
307-4 for the purchase of the obligations as provided by this section.
307-5 If the board is unable to purchase sufficient obligations of the
307-6 issue to absorb the entire surplus, the board shall call for
307-7 redemption a sufficient amount of the obligations to absorb, to the
307-8 extent practicable, the entire surplus remaining in the sinking
307-9 fund.
307-10 (c) The resolution or order may provide that any excess in
307-11 the sinking fund that cannot be applied to the purchase or
307-12 redemption of obligations remain in the sinking fund to be used for
307-13 payment of the principal or interest when due or for the subsequent
307-14 call of obligations for purchase or redemption in the manner
307-15 provided in this section.
307-16 Sec. 262.029. COVENANTS WITH HOLDERS. A resolution or order
307-17 authorizing the issuance of obligations under this chapter may
307-18 contain covenants with the holders of the obligations as to the
307-19 management and operation of the improvements and facilities, the
307-20 collection of fees and charges for the use of the improvements and
307-21 facilities, the disposition of the fees and charges, the issuance
307-22 of future obligations and the creation of future liens, mortgages,
307-23 and encumbrances against the improvements and facilities and the
307-24 revenues of the improvements and facilities and other pertinent
307-25 matters considered necessary to ensure the marketability of the
307-26 obligations, provided that the covenants are not inconsistent with
308-1 the provisions of this chapter.
308-2 Sec. 262.030. DEDICATION OF REVENUES. (a) A resolution or
308-3 order authorizing the issuance of obligations under this chapter
308-4 shall provide that the revenues from which the obligations are to
308-5 be paid and which are pledged to the payment of the obligations
308-6 shall, from month to month as the revenues accrue and are received,
308-7 be set apart and placed in the sinking fund and disbursed in the
308-8 manner provided in this chapter.
308-9 (b) The board, in setting and determining the amount of
308-10 revenues to be set aside as provided in Subsection (a), shall
308-11 provide that the amount to be set aside and paid into the sinking
308-12 fund in any year or years shall not be less than a set amount,
308-13 which shall be at least sufficient to provide for the payment of
308-14 the interest on and principal of all obligations maturing and
308-15 becoming payable in each such year, together with a surplus or
308-16 margin of 10 percent in excess of that amount.
308-17 Sec. 262.031. ACTIONS BY HOLDERS; ADMINISTRATOR OR RECEIVER.
308-18 (a) A holder of obligations issued under this chapter or of
308-19 coupons originally attached to the obligations may either at law or
308-20 in equity, by suit, action, mandamus, or other proceeding, enforce
308-21 and compel performance of all duties required by this chapter to be
308-22 performed by the board, including the making and collecting of
308-23 reasonable and sufficient fees or charges for the use of the
308-24 improvements and facilities of the authority, the segregation of
308-25 the income and revenues of the improvements and facilities, and the
308-26 application of the income and revenues as provided by this
309-1 chapter.
309-2 (b) In the event of a default in the payment of the
309-3 principal of or interest on any of the obligations of the
309-4 authority, a holder of the obligation shall be entitled to have an
309-5 administrator or receiver appointed by a court having jurisdiction
309-6 to administer and operate the improvements and facilities, whose
309-7 revenues are pledged to the payment of the obligations, in behalf
309-8 of the authority and the holders of the obligations. The
309-9 administrator or receiver may be authorized to set and collect fees
309-10 and charges sufficient to provide for the payment of operation and
309-11 maintenance expenses as defined by this chapter, to pay any
309-12 obligations or interest coupons outstanding payable from the
309-13 revenues of the improvements and facilities, and to apply the
309-14 income and revenues of the improvements and facilities in
309-15 conformity with the provisions of this chapter and the proceedings
309-16 authorizing the issuance of the obligations.
309-17 Sec. 262.032. TRUST INDENTURE. (a) As additional security
309-18 for the payment of obligations issued under this chapter, the board
309-19 may in its discretion have executed in favor of the holders of the
309-20 obligations an indenture mortgaging and encumbering the
309-21 improvements, facilities, and properties acquired with the proceeds
309-22 of the sale of the obligations, or all of the improvements,
309-23 facilities, and properties of the authority. The indenture may
309-24 also mortgage and encumber the revenues to be derived from the
309-25 operation of the improvements, facilities, and properties and may
309-26 provide in the encumbrance for a grant to a purchaser at
310-1 foreclosure sale under the encumbrance of a franchise to operate
310-2 the improvements, facilities, and properties for a term of not more
310-3 than 50 years from the date of the purchase, subject to all
310-4 applicable laws.
310-5 (b) An indenture under this section may contain terms and
310-6 provisions the board considers proper and shall be enforceable in
310-7 the manner provided by law for the enforcement of other mortgages
310-8 and encumbrances.
310-9 (c) Under a sale ordered under the provisions of the
310-10 mortgage or encumbrance, the purchaser at the sale and the
310-11 purchaser's successors or assigns shall be vested with a permit and
310-12 franchise to maintain and operate the improvements, facilities, and
310-13 properties purchased at the sale with the powers and privileges
310-14 used by the authority in the operation of the improvements,
310-15 facilities, and properties.
310-16 (d) The purchaser of the improvements, facilities, and
310-17 properties at a forclosure sale under this section and the
310-18 purchaser's successors and assigns may operate the improvements,
310-19 facilities, and properties as provided by Subsection (c) or may at
310-20 their option remove all or part of the improvements, facilities,
310-21 and properties for diversion to other purposes.
310-22 (e) General law pertaining to the granting of franchise does
310-23 not apply to the authorization or execution of any mortgage or
310-24 encumbrance entered into under the provisions of this chapter or to
310-25 the granting of any franchise under this chapter.
310-26 Sec. 262.033. SALE PROCEEDS. (a) The proceeds of the sale
311-1 of any obligations issued under this chapter may be deposited in
311-2 the bank or banks agreed on by the purchaser and the board. The
311-3 proceeds of the sale may be deposited and paid out pursuant to the
311-4 terms and conditions agreed on between the purchaser and the board,
311-5 provided that general law pertaining to the deposit of the
311-6 authority's funds in the depository of the authority is not
311-7 applicable to the deposit of the proceeds of the sale.
311-8 (b) Any part of the proceeds of the sale of obligations
311-9 issued under this chapter that may remain unexpended after the
311-10 project for which the obligations were authorized has been
311-11 completed may be paid into the sinking fund for the payment of the
311-12 obligations and be used only for the payment of the principal of
311-13 the obligations or for the purposes of acquiring outstanding
311-14 obligations by purchase in the manner provided by this chapter.
311-15 Sec. 262.034. INSURANCE FOR IMPROVEMENTS AND FACILITIES.
311-16 The board may enter into an agreement with a purchaser of
311-17 obligations issued by the authority to keep all of the improvements
311-18 and facilities whose revenues are pledged to the payment of the
311-19 obligations insured with insurers of good standing against loss or
311-20 damage by fire, water, or flood and against any other hazards
311-21 customarily insured against by private companies operating similar
311-22 properties. The authority may also agree to carry with insurers of
311-23 good standing insurance covering the use and occupancy of such
311-24 property as is customarily carried by private companies. The cost
311-25 of insurance shall be budgeted as maintenance and operation
311-26 expense, and the insurance shall be carried for the benefit of the
312-1 holders of the obligations.
312-2 Sec. 262.035. EXEMPTION FROM TAXATION. Obligations issued
312-3 under the provisions of this chapter are exempt from taxation by
312-4 the state or by any municipal corporation, county, or other
312-5 political subdivision or taxing district of the state.
312-6 Sec. 262.036. REFUNDING OBLIGATIONS. After issuing
312-7 obligations under this chapter the authority may authorize and
312-8 issue its refunding obligations on terms the board deems advisable
312-9 for the purpose of providing for the retirement of any outstanding
312-10 obligations of the authority, either due or to become due.
312-11 Refunding obligations may be either exchanged for like par amounts
312-12 of the outstanding obligations or may be sold and the proceeds of
312-13 the sale so applied. Refunding obligations authorized and issued
312-14 under this section are subject to the provisions of this chapter
312-15 pertaining to the issuance of other obligations and shall be
312-16 secured in all respects to the same extent and be payable from the
312-17 same revenues as were the obligations being refunded.
312-18 Sec. 262.037. APPROVAL AND REGISTRATION OF OBLIGATIONS.
312-19 Before any obligations are issued by the authority, the authority
312-20 shall submit a certified copy of the obligation and of the
312-21 proceedings for the issuance of the obligation, together with any
312-22 additional information that may be required, to the attorney
312-23 general for approval. If approved by the attorney general, the
312-24 obligations shall be issued after registration with the
312-25 comptroller.
312-26 Sec. 262.038. CHAPTER AS FULL AUTHORITY. This chapter,
313-1 without reference to other statutory provisions, constitutes full
313-2 authority for the authorization and issuance of obligations under
313-3 this chapter and for the accomplishment of all purposes authorized
313-4 by this chapter. No proceedings relating to the authorization or
313-5 issuance of obligations is necessary except as required by this
313-6 chapter, and no other provisions of the laws of the state pertinent
313-7 to the authorization or issuance of obligations, the operation and
313-8 maintenance of the improvements and facilities, the granting of
313-9 franchises or permits, or the right to elections or referendum
313-10 petitions or in any way impeding or restricting the carrying out of
313-11 the acts authorized by this chapter applies to any proceedings or
313-12 acts done under this chapter.
313-13 Sec. 262.039. EXISTING WATER RIGHTS. Nothing in this
313-14 chapter affects any rights existing at the time of the formation of
313-15 the authority or existing priorities in the rights to water from
313-16 the source of supply, and neither the formation of the authority or
313-17 a contract for the purchase of water with the authority may ever be
313-18 held to be an abandonment or waiver of those rights or priorities
313-19 or an abandonment of the original point of diversion from the
313-20 source of supply, and all such rights existing at the time of the
313-21 formation of the authority shall be preserved.
313-22 CHAPTER 263. MACKENZIE MUNICIPAL WATER AUTHORITY
313-23 Sec. 263.001. CREATION. (a) A conservation and reclamation
313-24 district to be known as the "Mackenzie Municipal Water Authority"
313-25 is created. The authority is a governmental agency and a body
313-26 politic and corporate.
314-1 (b) The authority is created under and is essential to
314-2 accomplish the purposes of Section 59, Article XVI, Texas
314-3 Constitution.
314-4 Sec. 263.002. DEFINITIONS. In this chapter:
314-5 (1) "Authority" means the Mackenzie Municipal Water
314-6 Authority.
314-7 (2) "Board" means the board of directors of the
314-8 authority.
314-9 (3) "Director" means a member of the board.
314-10 Sec. 263.003. TERRITORY. The authority contains all of the
314-11 territory within the boundaries of the city of Tulia in Swisher
314-12 County, the city of Silverton in Briscoe County, and the cities of
314-13 Lockney and Floydada in Floyd County, as the boundaries of each
314-14 city existed on February 1, 1965. An invalidity in the fixing of
314-15 the boundaries of those cities does not affect the boundaries of
314-16 the territory contained in the authority. It is found and
314-17 determined that all of the territory and taxable property contained
314-18 within the boundaries of those cities will benefit from the works
314-19 and improvements of the authority.
314-20 Sec. 263.004. BOARD OF DIRECTORS. (a) All powers of the
314-21 authority shall be exercised by a board of directors. The
314-22 directors serve staggered two-year terms. The governing body of
314-23 each city contained in the authority shall appoint two directors,
314-24 with the term of one director expiring on April 30 of each
314-25 even-numbered year and the term of one director expiring on April
314-26 30 of each odd-numbered year.
315-1 (b) In April of each year the governing body of each city
315-2 contained in the authority shall appoint a director to succeed the
315-3 director from that city whose term is about to expire. A vacancy
315-4 shall be filled for the unexpired term by the governing body of the
315-5 appropriate city.
315-6 (c) Each director serves for a term of office as provided by
315-7 this section and until a successor is appointed and has qualified.
315-8 (d) A director must reside in and own taxable property in
315-9 the city from which the director is appointed. A member of a
315-10 governing body or an employee of a city is not eligible to serve as
315-11 a director.
315-12 (e) Each director shall subscribe the constitutional oath of
315-13 office and shall give bond for the faithful performance of the
315-14 person's duties as director in the amount of $5,000. The cost of
315-15 the bond shall be paid by the authority.
315-16 (f) A majority of the members of the board constitutes a
315-17 quorum.
315-18 (g) If a director moves from the city from which the
315-19 director is appointed or otherwise ceases to be a director, the
315-20 governing body of the city shall appoint a successor for the
315-21 unexpired term.
315-22 Sec. 263.005. DIRECTOR FEES. (a) Each director may receive
315-23 a fee determined by the board, not to exceed $20, for attending
315-24 each meeting of the board, provided that no more than $40 shall be
315-25 paid to any director for meetings held in any one calendar month.
315-26 (b) Each director is entitled to receive a fee not to exceed
316-1 $20 per day for each day devoted to the business of the authority
316-2 and to reimbursement for actual expenses incurred in attending to
316-3 authority business provided that the service and expense have
316-4 received prior approval by the board.
316-5 Sec. 263.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
316-6 shall elect from among its members a president and a vice president
316-7 of the authority and other officers as the board determines
316-8 necessary.
316-9 (b) The president is the chief executive officer of the
316-10 authority and the presiding officer of the board and has the same
316-11 right to vote as any other director.
316-12 (c) The vice president shall perform all duties and exercise
316-13 all powers conferred by this chapter on the president when the
316-14 president is absent or fails or declines to act, except the
316-15 president's right to vote.
316-16 (d) The board shall appoint a secretary and a treasurer, who
316-17 may or may not be members of the board, and it may combine those
316-18 offices. The treasurer shall give bond in an amount determined by
316-19 the board. The bond shall be conditioned on the treasurer
316-20 faithfully accounting for all money that comes into the treasurer's
316-21 custody as treasurer of the authority.
316-22 (e) The board shall appoint necessary engineers, attorneys,
316-23 and other employees and employ a general manager. The power to
316-24 employ and discharge employees may be conferred on the general
316-25 manager.
316-26 (f) The board shall adopt a seal for the authority.
317-1 Sec. 263.007. GENERAL PROCEDURE FOR ANNEXATION OF TERRITORY.
317-2 (a) Other territory, whether incorporated or unincorporated, may
317-3 be annexed to the authority as provided by this section.
317-4 (b) A petition praying for annexation must:
317-5 (1) be signed by 50 or a majority, whichever number is
317-6 less, of the qualified voters residing in the territory to be
317-7 annexed who own taxable property in the territory;
317-8 (2) be filed with the board; and
317-9 (3) describe the territory to be annexed by metes and
317-10 bounds, or otherwise, unless the territory is the same as that
317-11 contained in a city or town, in which event it will be sufficient
317-12 to state that the territory to be annexed is that contained within
317-13 the boundaries of the city or town.
317-14 (c) If the board finds that the petition complies with, and
317-15 is signed by the number of qualified persons required by,
317-16 Subsection (b), that the annexation would be to the best interest
317-17 of the territory to be annexed and the authority, and that the
317-18 authority will be able to supply water or cause water to be
317-19 supplied to the territory or render sewer service or cause sewer
317-20 service to be rendered to the territory, the board shall adopt a
317-21 resolution stating the conditions, if any, under which the
317-22 territory may be annexed to the authority and shall set a time and
317-23 place for a hearing to be held by the board on the question of
317-24 whether the territory to be annexed will benefit from the
317-25 improvements, works, and facilities then owned or operated or
317-26 contemplated to be owned or operated by the authority or by the
318-1 other functions of the authority. Railroad right-of-way that is
318-2 not situated within the defined limits of an incorporated city or
318-3 town will not benefit from the improvements, works, and facilities
318-4 that the authority is authorized to construct. Railroad
318-5 right-of-way may not be annexed to the authority unless the
318-6 right-of-way is contained within the limit of an incorporated city
318-7 or town that has been annexed to the authority.
318-8 (d) Notice of the adoption of the resolution stating the
318-9 time and place of the hearing shall be published one time in a
318-10 newspaper designated by the board at least 10 days before the date
318-11 of the hearing. The notice must describe the territory to be
318-12 annexed in the same manner in which it is required or permitted by
318-13 this chapter to be described in the petition.
318-14 (e) All interested persons may appear at the hearing and
318-15 offer evidence for or against the proposed annexation. The hearing
318-16 may proceed in the order and under the rules as may be prescribed
318-17 by the board and may be recessed from time to time. If, at the
318-18 conclusion of the hearing, the board finds that lands in the
318-19 territory to be annexed will benefit from present or contemplated
318-20 improvements, works, or facilities of the authority, the board
318-21 shall adopt a resolution making a finding of such benefit, calling
318-22 an election in the territory to be annexed stating the date and the
318-23 place or places for holding the election and the proposition to be
318-24 voted on, and appointing a presiding judge for each voting place,
318-25 who shall appoint the necessary assistant judges and clerks to
318-26 assist in holding the election.
319-1 (f) Notice of the election shall be given by publishing a
319-2 substantial copy of the resolution calling the election one time in
319-3 a newspaper of general circulation in the territory to be annexed
319-4 to the authority at least 10 days before the date set for the
319-5 election.
319-6 (g) Only constitutionally qualified electors who reside in
319-7 the territory to be annexed shall be qualified to vote in the
319-8 election. Returns of the result of the election shall be made to
319-9 the board.
319-10 (h) The board shall canvass the returns of the election and
319-11 adopt an order declaring the results. If the order shows that a
319-12 majority of the votes cast are in favor of annexation, the board
319-13 shall by resolution annex the territory to the authority, and the
319-14 annexation shall be incontestable except in the manner and within
319-15 the time for contesting elections under the Election Code.
319-16 (i) In calling an election on the proposition of the
319-17 annexation of territory, the board may include as a part of the
319-18 same proposition, or as a separate proposition, the question of the
319-19 assumption of that territory's part of the tax-supported bonds of
319-20 the authority then outstanding and those voted but not yet sold and
319-21 the levy of an ad valorem tax on taxable property in the territory
319-22 along with the tax in the rest of the authority for the payment of
319-23 the bonds. The voting on the proposition or propositions shall be
319-24 restricted to constitutionally qualified electors. The territory
319-25 may be annexed only if both propositions receive a majority vote.
319-26 Sec. 263.008. ANNEXATION OF CERTAIN MUNICIPAL TERRITORY.
320-1 (a) Territory annexed to a city that is initially contained in the
320-2 authority or that is added to the authority may be annexed to the
320-3 authority as provided by this section.
320-4 (b) At any time after final passage of an ordinance or
320-5 resolution annexing territory to a city, the board may issue a
320-6 notice of a hearing on the question of annexing the territory or
320-7 any part of the territory. The notice is sufficient if it states
320-8 the date and place of the hearing and:
320-9 (1) describes the area proposed to be annexed; or
320-10 (2) makes reference to the annexation ordinance or
320-11 resolution of the city.
320-12 (c) The notice must be published one time in a newspaper
320-13 having general circulation in the city that made the annexation.
320-14 The publication must be at least 10 days before the date set for
320-15 the hearing.
320-16 (d) If, at the hearing, the board finds that the territory
320-17 proposed to be annexed will benefit from present or contemplated
320-18 improvements, works, or facilities of the authority, the board
320-19 shall adopt a resolution annexing the territory to the authority.
320-20 Sec. 263.009. ASSUMPTION OF BONDS. After territory is added
320-21 to the authority, the board may call an election over the entire
320-22 authority to determine whether the entire authority as enlarged
320-23 shall assume the tax-supported bonds then outstanding and those
320-24 voted but not yet sold and whether an ad valorem tax shall be
320-25 levied on all taxable property within the authority as enlarged for
320-26 the payment of the bonds, unless the proposition had previously
321-1 been voted at an election held within the annexed territory and
321-2 became lawfully binding on the annexed territory. The election
321-3 shall be called and held and notice of the election given in the
321-4 same manner as elections for the issuance of bonds as provided in
321-5 this chapter.
321-6 Sec. 263.010. APPOINTMENT OF DIRECTORS IN ANNEXED
321-7 TERRITORIES. If the territory of a city is annexed to the
321-8 authority, the governing body of the city shall appoint two
321-9 directors. The term of one appointee shall expire on the following
321-10 April 30 and the term of the other appointee shall expire on April
321-11 30 a year later. Thereafter the directors shall be appointed as
321-12 provided in Section 263.004.
321-13 Sec. 263.011. WATER APPROPRIATION PERMITS. The authority
321-14 may obtain appropriation permits from the commission through
321-15 appropriate hearings as provided by Chapter 11.
321-16 Sec. 263.012. DAMS AND OTHER FACILITIES FOR DIVERTING,
321-17 IMPOUNDING, STORING, TREATING, AND TRANSPORTING WATER. The
321-18 authority may acquire or construct within or outside the boundaries
321-19 of the authority dams and all works, plants, and other facilities,
321-20 including underground water storage facilities, necessary for the
321-21 purpose of diverting, impounding, storing, treating, and
321-22 transporting water to cities and others for municipal, domestic,
321-23 industrial, and mining purposes. A dam or other facility for
321-24 impounding water may not be constructed unless the plan for the
321-25 facility is approved by the commission.
321-26 Sec. 263.013. ACQUISITION AND SALE OF PROPERTY; CONSTRUCTION
322-1 OF FACILITIES; WATER RIGHTS. (a) The authority may acquire land
322-2 within and outside the boundaries of the authority and may
322-3 construct, lease, or otherwise acquire all works, plants, and other
322-4 facilities necessary for the purpose of diverting, further
322-5 impounding, or storing water, treating the water, and transporting
322-6 it to cities and others for municipal, domestic, industrial, and
322-7 mining purposes.
322-8 (b) The authority may sell water within and outside the
322-9 boundaries of the authority and may acquire by purchase or
322-10 contract, in any county in which a part of the authority is
322-11 located, lands in fee simple title or water rights without surface
322-12 title and may develop and beneficially use such groundwater;
322-13 provided, however, that the authority shall be limited to a
322-14 quantity of groundwater as may be reasonably necessary, and the
322-15 withdrawal may not exceed two acre-feet of water per year for each
322-16 acre of surface area purchased or water rights otherwise acquired
322-17 by the authority overlying the groundwater reservoir.
322-18 (c) Subject to the terms of any deed of trust issued by the
322-19 authority, the authority may sell, trade, or otherwise dispose of
322-20 any real or personal property determined by the board not to be
322-21 needed for authority purposes.
322-22 (d) As a necessary aid to the conservation, control,
322-23 preservation, and distribution of water for beneficial use, the
322-24 authority may construct, own, and operate sewage gathering,
322-25 transmission, and disposal facilities, may charge for such service,
322-26 and may make contracts in reference to such facilities and services
323-1 with municipalities and others.
323-2 Sec. 263.014. EMINENT DOMAIN. (a) For the purpose of
323-3 carrying out a power or authority conferred by this chapter, except
323-4 the acquisition of groundwater rights, the authority may acquire,
323-5 within or outside the boundaries of the authority, the fee simple
323-6 title to land and other property and easements, including land
323-7 needed for a reservoir and dam and flood easements above the
323-8 probable high-water line around the reservoir, by condemnation in
323-9 the manner and with the same power as conferred on counties of the
323-10 state by Chapter 21, Property Code. The authority is a municipal
323-11 corporation within the meaning of Section 21.021 (c), Property
323-12 Code.
323-13 (b) The authority may not condemn any property that is owned
323-14 by any persons, firms, private corporations, or receivers, or their
323-15 trustees, who have the power of eminent domain, except that the
323-16 authority may condemn an easement. The amount and character of
323-17 interest in land, other property, and easements to be acquired
323-18 through condemnation shall be determined by the board. The
323-19 authority has the powers provided by Section 49.221 with reference
323-20 to making surveys and attending to other business of the
323-21 authority.
323-22 (c) If the authority, in the exercise of its power of
323-23 eminent domain or police power or any other power, requires the
323-24 relocation, raising, lowering, rerouting, change in grade, or
323-25 alteration in construction of any road or highway; railroad;
323-26 electric transmission, telegraph, or telephone lines, conduits,
324-1 poles, properties, or facilities; or pipelines, all such
324-2 relocation, raising, lowering, rerouting, change in grade, or
324-3 alteration of construction shall be accomplished at the sole
324-4 expense of the authority. In this section, "sole expense" means
324-5 the actual cost of such lowering, rerouting, change in grade, or
324-6 alteration of construction in providing comparable replacement
324-7 without enhancement of the facilities, after deducting the net
324-8 salvage value derived from the old facility.
324-9 Sec. 263.015. CONTRACTS; BIDDING. A construction contract
324-10 requiring an expenditure of more than $15,000 may only be made
324-11 after publication of a notice to bidders once each week for two
324-12 weeks before the contract is awarded. The notice is sufficient if
324-13 it states the time and location the bids will be opened, states the
324-14 general nature of the work to be done or the material, equipment,
324-15 or supplies to be purchased, and states where and the terms on
324-16 which copies of the plans and specifications may be obtained. The
324-17 publication must be in a newspaper published in each county in
324-18 which a portion of the authority is located, and such newspapers
324-19 shall be designated or approved by the board.
324-20 Sec. 263.016. ISSUANCE OF BONDS. (a) For the purpose of
324-21 carrying out any power or authority conferred by this chapter, the
324-22 authority may issue negotiable bonds to be payable from such
324-23 revenues or taxes or both revenues and taxes of the authority as
324-24 are pledged by resolution of the board.
324-25 (b) Bonds must be authorized by resolution of the board.
324-26 The bonds must be issued in the name of the authority, signed by
325-1 the president or vice president, and attested by the secretary and
325-2 must bear the seal of the authority. The signatures of the
325-3 president or vice president, of the secretary, or of both may be
325-4 printed or lithographed on the bonds if authorized by the board,
325-5 and the seal of the authority may be impressed on the bonds or may
325-6 be printed or lithographed on the bonds.
325-7 (c) Bonds must mature serially or otherwise in not to exceed
325-8 40 years from their date and may be sold at a price and under terms
325-9 determined by the board to be the most advantageous reasonably
325-10 obtainable, provided that the interest cost to the authority,
325-11 including the discount, if any, does not exceed six percent per
325-12 year. Within the discretion of the board, bonds may be made
325-13 callable prior to maturity at such times and prices as may be
325-14 prescribed in the resolution authorizing the bonds and may be made
325-15 registrable as to principal or as to both principal and interest.
325-16 (d) Bonds may be issued in more than one series and from
325-17 time to time as required for carrying out the purposes of this
325-18 chapter.
325-19 (e) Bonds may be secured by a pledge of all or part of the
325-20 net revenues of the authority, of the net revenues of one or more
325-21 contracts made before or after the bonds are issued, or of other
325-22 revenues or income specified by resolution of the board or in the
325-23 trust indenture. A pledge may reserve the right, under conditions
325-24 in the pledge specified, to issue additional bonds that will be on
325-25 a parity with or subordinate to the bonds being issued.
325-26 (f) The authority may issue bonds payable from ad valorem
326-1 taxes to be levied on all taxable property in the authority or may
326-2 issue bonds secured by and payable from both those taxes and the
326-3 revenues of the authority. If bonds are issued payable wholly or
326-4 partially from ad valorem taxes, the board shall levy a tax
326-5 sufficient to pay the bonds and the interest on the bonds as the
326-6 bonds and interest become due. The rate of the tax for any year
326-7 may be set after giving consideration to the money received from
326-8 the pledged revenues available for payment of principal and
326-9 interest to the extent and in the manner permitted by the
326-10 resolution authorizing the issuance of the bonds.
326-11 (g) If bonds payable wholly from revenues are issued, the
326-12 board shall set, and from time to time revise, rates of
326-13 compensation for water sold and services rendered by the authority
326-14 sufficient to pay the expense of operating and maintaining the
326-15 facilities of the authority, to pay the bonds as they mature and
326-16 the interest as it accrues, and to maintain the reserve and other
326-17 funds as provided in the resolution authorizing the bonds. If
326-18 bonds payable partially from revenues are issued, the board shall
326-19 set, and from time to time revise, rates of compensation for water
326-20 sold and services rendered by the authority sufficient to assure
326-21 compliance with the resolution authorizing the bonds or the trust
326-22 indenture securing the bonds.
326-23 (h) From the proceeds of the sale of the bonds, the
326-24 authority may set aside an amount for the payment of interest
326-25 expected to accrue during construction and for a reserve interest
326-26 and sinking fund and such other funds as may be provided in the
327-1 resolution authorizing the bonds or in the trust indenture.
327-2 Proceeds from the sale of the bonds may also be used for the
327-3 payment of all expenses necessarily incurred in accomplishing the
327-4 purpose for which this authority is created, including expenses of
327-5 issuing and selling the bonds. The proceeds from the sale of the
327-6 bonds and other funds may be invested in such securities as are
327-7 specified in the bond resolution or trust indenture.
327-8 (i) In the event of a default or a threatened default in the
327-9 payment of principal of or interest on bonds payable wholly or
327-10 partially from revenues, any court of competent jurisdiction may,
327-11 on petition of the holders of outstanding bonds, appoint a receiver
327-12 with authority to collect and receive all income of the authority
327-13 except taxes, employ and discharge agents and employees of the
327-14 authority, take charge of the authority's funds on hand (except
327-15 funds received from taxes, unless commingled), and manage the
327-16 proprietary affairs of the authority without consent or hindrance
327-17 by the board. The receiver may also be authorized to sell or make
327-18 contracts for the sale of water or renew the contracts with the
327-19 approval of the court appointing the receiver. The court may vest
327-20 the receiver with other powers and duties the court finds necessary
327-21 for the protection of the holders of the bonds. The resolution
327-22 authorizing the issuance of the bonds or the trust indenture
327-23 securing them may limit or qualify the rights of the holders of
327-24 less than all of the outstanding bonds payable from the same source
327-25 to institute or prosecute litigation affecting the authority's
327-26 property or income.
328-1 Sec. 263.017. REFUNDING BONDS. (a) The authority may issue
328-2 refunding bonds for the purpose of refunding outstanding bonds
328-3 authorized by this chapter and interest on the bonds. Refunding
328-4 bonds may be issued to refund more than one series of outstanding
328-5 bonds and may combine the pledges for the outstanding bonds for the
328-6 security of the refunding bonds, and the refunding bonds may be
328-7 secured by other or additional revenues and mortgage liens.
328-8 (b) The provisions of this chapter regarding the issuance of
328-9 other bonds by the authority, their security, their approval by the
328-10 attorney general, and the remedies of the holders shall be
328-11 applicable to refunding bonds. Refunding bonds shall be registered
328-12 by the comptroller on surrender and cancellation of the bonds to be
328-13 refunded, but in lieu of that procedure, the resolution authorizing
328-14 the issuance of the refunding bonds may provide that the refunding
328-15 bonds shall be sold and the proceeds of the sale deposited in the
328-16 bank where the original bonds are payable, in which case the
328-17 refunding bonds may be issued in an amount sufficient to pay the
328-18 principal of and the interest on the original bonds to their option
328-19 date or maturity date, and the comptroller shall register the
328-20 refunding bonds without concurrent surrender and cancellation of
328-21 the original bonds. Refunding bonds may be issued without an
328-22 election.
328-23 Sec. 263.018. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE
328-24 LIEN. (a) Bonds, including refunding bonds, authorized by this
328-25 chapter that are not payable wholly from ad valorem taxes may be
328-26 additionally secured by a trust indenture under which the trustee
329-1 may be a bank with trust powers located either within or outside
329-2 the state. The bonds may, within the discretion of the board, be
329-3 additionally secured by a deed of trust or mortgage lien on
329-4 physical properties of the authority and all franchises, easements,
329-5 water rights and appropriation permits, leases and contracts, and
329-6 all rights appurtenant to the properties, vesting in the trustee
329-7 power to sell the properties for the payment of indebtedness, power
329-8 to operate the properties, and all other powers and authority for
329-9 the further security of the bonds.
329-10 (b) The trust indenture, regardless of the existence of a
329-11 deed of trust or mortgage lien on the properties, may:
329-12 (1) contain provisions prescribed by the board for the
329-13 security of the bonds and the preservation of the trust estate;
329-14 (2) make provision for amendment or modification of
329-15 the trust indenture and the issuance of bonds to replace lost or
329-16 mutilated bonds;
329-17 (3) condition the right to expend authority money or
329-18 sell authority property on approval of a registered professional
329-19 engineer selected as provided in the trust indenture; and
329-20 (4) make provision for the investment of funds of the
329-21 authority.
329-22 (c) A purchaser under a sale under a deed of trust lien,
329-23 where one is given, shall be the absolute owner of the properties,
329-24 facilities, and rights purchased and shall have the right to
329-25 maintain and operate the properties, facilities, and rights.
329-26 Sec. 263.019. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION.
330-1 (a) Bonds payable wholly or partially from ad valorem taxes,
330-2 except refunding bonds, may not be issued unless authorized by an
330-3 election at which only the constitutionally qualified electors who
330-4 reside in the authority are allowed to vote and a majority of the
330-5 votes cast in each city contained in the authority are in favor of
330-6 the issuance of the bonds. If a majority of the votes cast in any
330-7 city contained in the authority are against the issuance of the
330-8 bonds, the board may, in its discretion, adopt a resolution
330-9 detaching the territory of that city from the authority; provided,
330-10 however, that after bonds payable from taxes have been issued by
330-11 the authority and while any such bonds are outstanding, no
330-12 territory shall be detached from the authority. Bonds not payable
330-13 wholly or partially from ad valorem taxes may be issued without an
330-14 election.
330-15 (b) An election for the authorization of bonds may be called
330-16 by the board without a petition. The resolution calling the
330-17 election shall specify the time and locations of holding the
330-18 election, the purpose for which the bonds are to be issued, the
330-19 maximum amount of the bonds, the maximum maturity of the bonds, the
330-20 form of the ballot, and the presiding judge for each voting place.
330-21 The presiding judge serving at each voting place shall appoint one
330-22 assistant judge and at least two clerks to assist in holding the
330-23 election. Notice of the election shall be given by publishing a
330-24 substantial copy of the notice in a newspaper published in each
330-25 city contained in the authority for two consecutive weeks. The
330-26 first publication must be at least 21 days before the date of the
331-1 election. In a city in which no newspaper is published, notice
331-2 shall be given by posting a copy of the resolution in three public
331-3 places in the city at least 21 days before the date of the
331-4 election.
331-5 (c) The returns of the election shall be made to and
331-6 canvassed by the board.
331-7 (d) Elections held under this section shall be governed by
331-8 the Election Code except as otherwise provided by this chapter.
331-9 Sec. 263.020. BOND APPROVAL AND REGISTRATION. After bonds,
331-10 including refunding bonds, are authorized by the authority, the
331-11 bonds and the record relating to their issuance shall be submitted
331-12 to the attorney general for examination as to the validity of the
331-13 bonds. If the bonds recite that they are secured by a pledge of
331-14 the proceeds of a contract previously made between the authority
331-15 and a city or other governmental agency, authority, or district, a
331-16 copy of the contract and the proceedings of the city or other
331-17 governmental agency, authority, or district authorizing the
331-18 contract shall also be submitted to the attorney general. If the
331-19 attorney general finds that the bonds have been authorized and that
331-20 the contract has been made in accordance with the constitution and
331-21 laws of the state, the attorney general shall approve the bonds and
331-22 the contract, and the bonds shall then be registered by the
331-23 comptroller. After their approval and registration, the bonds and
331-24 the contract, if any, are valid and binding and are incontestable
331-25 for any cause.
331-26 Sec. 263.021. CONTRACTS WITH CITIES AND OTHERS. (a) The
332-1 authority may enter into contracts with cities and others for
332-2 supplying water to them. The authority may also contract with a
332-3 city for the rental or leasing of, or for the operation of, the
332-4 water production, water supply, and water filtration or
332-5 purification and water supply facilities of the city for such
332-6 consideration as the authority and the city may agree. The
332-7 contract may be on the terms and for the time as the parties may
332-8 agree, and the contract may provide that it shall continue in
332-9 effect until bonds specified in the contract and refunding bonds
332-10 issued in lieu of those bonds are paid.
332-11 (b) If an election is held in any city then contained in the
332-12 authority on the question of whether the governing body of the city
332-13 shall be authorized to make a water supply contract with the
332-14 authority and the result of the election is that the governing body
332-15 shall not be authorized to make such a contract with the authority,
332-16 the board may, in its discretion, adopt a resolution detaching that
332-17 city from the authority; provided, however, that after bonds
332-18 payable from taxes have been issued by the authority and while any
332-19 such bonds are outstanding, no territory shall be detached from the
332-20 authority.
332-21 (c) In addition to selling its bonds to the Texas Water
332-22 Development Board and securing loans from that board, the authority
332-23 may enter into a contract or contracts with the board under which
332-24 the board or the state will own a portion of the water storage
332-25 facilities, as provided in Chapter 16, in a reservoir or reservoirs
332-26 to be constructed by the authority. The authority may include in
333-1 the contract or contracts the obligation to purchase such storage
333-2 facilities from the state and a provision to accumulate a fund for
333-3 that purpose by setting and maintaining adequate rates and charges
333-4 to be paid by cities previously and subsequently contracting to buy
333-5 water from the authority.
333-6 Sec. 263.022. AUTHORITY DEPOSITORY. (a) The board shall
333-7 designate one or more banks within the authority to serve as
333-8 depository for the funds of the authority. All funds of the
333-9 authority shall be deposited in the depository bank or banks,
333-10 except that bond proceeds and funds pledged to pay bonds may, to
333-11 the extent provided in the indenture, be deposited with the trustee
333-12 bank named in the trust indenture and except that funds shall be
333-13 remitted to the bank of payment for the payment of principal of and
333-14 interest on bonds. To the extent that funds in the depository
333-15 banks and the trustee bank are not insured by the Federal Deposit
333-16 Insurance Corporation, the funds shall be secured in the manner
333-17 provided by law for the security of county funds.
333-18 (b) Before designating a depository bank or banks, the board
333-19 shall issue a notice stating the time and the location the board
333-20 will meet to designate the depository or depositories and inviting
333-21 the banks in the authority to submit applications to be designated
333-22 depositories. The notice must be mailed to each bank in the
333-23 authority.
333-24 (c) At the time stated in the notice, the board shall
333-25 consider the applications and the management and condition of the
333-26 banks filing them and shall designate as the depository or
334-1 depositories the bank or banks that offer the most favorable terms
334-2 and conditions for the handling of the funds of the authority and
334-3 which the board finds have proper management and are in condition
334-4 to warrant the handling of authority funds. Membership on the
334-5 board of an officer or director of a bank shall not disqualify that
334-6 bank from being designated as a depository.
334-7 (d) If no applications are received by the time stated in
334-8 the notice, the board shall designate a bank or banks within or
334-9 outside the authority on the terms and conditions the board
334-10 determines are advantageous to the authority.
334-11 (e) The term of service for depositories shall be prescribed
334-12 by the board.
334-13 Sec. 263.023. WATER APPROPRIATION PERMITS; ACQUISITION OF
334-14 STORAGE CAPACITY AND OF WATER. The authority may acquire water
334-15 appropriation permits from owners of permits. The authority may
334-16 lease or acquire rights in and to storage and storage capacity in
334-17 any reservoir constructed or to be constructed by any person, firm,
334-18 corporation, or public agency or from the United States government
334-19 or any of its agencies.
334-20 Sec. 263.024. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
334-21 DEPOSITS. (a) Bonds of the authority are legal and authorized
334-22 investments for banks, savings banks, trust companies, building and
334-23 loan associations, savings and loan associations, insurance
334-24 companies, fiduciaries, trustees, and guardians and for the sinking
334-25 fund of cities, towns, villages, counties, school districts, or
334-26 other political corporations or subdivisions of the state.
335-1 (b) The bonds are eligible to secure the deposit of all
335-2 public funds of the state and all public funds of cities, towns,
335-3 villages, counties, school districts, or other political
335-4 corporations or subdivisions of the state. The bonds are lawful
335-5 and sufficient security for the deposits to the extent of their
335-6 value when accompanied by all unmatured coupons appurtenant to the
335-7 bonds.
335-8 Sec. 263.025. BONDS EXEMPT FROM TAXATION. The
335-9 accomplishment of the purposes stated in this chapter is for the
335-10 benefit of the people of the state and for the improvement of their
335-11 properties and industries, and the authority, in carrying out the
335-12 purposes of this chapter, will be performing an essential public
335-13 function under Section 59, Article XVI, Texas Constitution. The
335-14 authority may not be required to pay any tax or assessment on the
335-15 project or any part of the project, and the bonds issued under this
335-16 chapter and the transfer of and income from the bonds, including
335-17 the profits made on the sale of the bonds, shall at all times be
335-18 free from taxation within the state.
335-19 Sec. 263.026. TAX ROLLS. (a) The tax rolls of the cities
335-20 located within the authority and within annexed territory
335-21 constitute the tax rolls of the authority until assessment and tax
335-22 rolls are made by the authority.
335-23 (b) Before the sale and delivery of authority bonds that are
335-24 payable wholly or partially from ad valorem taxes, the board shall
335-25 appoint a tax assessor and collector and a board of equalization
335-26 and shall cause taxes to be assessed, valuations to be equalized,
336-1 and tax rolls to be prepared. General laws applicable to water
336-2 control and improvement districts with reference to tax assessors
336-3 and collectors, boards of equalization, tax rolls, tax liens, and
336-4 the levy and collection of taxes and delinquent taxes shall be
336-5 applicable to the authority, except that the board of equalization,
336-6 to be appointed each year by the board, shall consist of one member
336-7 residing in each city contained in the authority.
336-8 (c) The board may make contracts with one or more cities in
336-9 the authority for the collection of authority taxes.
336-10 (d) Taxes levied by the authority shall be ad valorem.
336-11 Sec. 263.027. ADOPTION OF RULES AND REGULATIONS. (a) The
336-12 board may adopt and promulgate all reasonable rules and regulations
336-13 to secure, maintain, and preserve the potable and sanitary
336-14 condition of all water in and to flow into any reservoir owned by
336-15 the authority to prevent the waste or unauthorized use of water, to
336-16 regulate residence, hunting, fishing, boating, and camping, and all
336-17 recreational and business privileges, along, around, or on any
336-18 reservoir or any body of land or easement owned by the authority.
336-19 (b) The authority may prescribe a reasonable penalty for the
336-20 breach of a rule or regulation of the authority, not to exceed a
336-21 fine of $200 or imprisonment for 30 days, or both such fine and
336-22 imprisonment. The penalty shall be in addition to any other
336-23 penalties provided by the laws of the state and may be enforced by
336-24 complaints filed in the appropriate court of jurisdiction;
336-25 provided, however, that no rule or regulation that provides a
336-26 penalty for a violation of the rule or regulation shall be in
337-1 effect, as to enforcement of the penalty, until five days after the
337-2 authority has caused a substantive statement of the rule or
337-3 regulation and the penalty for the violation to be published once a
337-4 week for two consecutive weeks in the county or counties in which
337-5 the reservoir is located. The substantive statement to be
337-6 published shall be as condensed as is possible to afford sufficient
337-7 notice as to the act forbidden by the rule or regulation. A single
337-8 notice may embrace any number of rules or regulations. The notice
337-9 must provide the information that breach of the rule or regulation
337-10 will subject the violator to the imposition of a penalty. The
337-11 notice must also state that the full text of the rule or regulation
337-12 is on file in the principal office of the authority and may be read
337-13 by any interested person. Five days after the second publication
337-14 of the notice required by this section, the advertised rule or
337-15 regulation shall be in effect, and ignorance of the rule or
337-16 regulation shall not constitute a defense to prosecution for the
337-17 enforcement of a penalty. After the required publication, the
337-18 rules and regulations authorized by this section shall judicially
337-19 be known to the courts and shall be considered similar in nature to
337-20 a valid penal ordinance of a city.
337-21 (c) A duly constituted peace officer may make arrests when
337-22 necessary to prevent or stop the commission of any offense against
337-23 the rules or regulations of the authority or against the laws of
337-24 the state, when the offense or threatened offense occurs on or in
337-25 any land, water, or easement owned or controlled by the authority,
337-26 or may make an arrest at any place in the case of an offense
338-1 involving injury or detriment to any property owned or controlled
338-2 by the authority.
338-3 Sec. 263.028. PARKS AND RECREATION FACILITIES. The
338-4 authority may establish or otherwise provide for public parks and
338-5 recreation facilities and may acquire land for such purposes within
338-6 or outside the authority; provided, however, that no money received
338-7 from taxation or from bonds payable wholly or partially from
338-8 taxation shall be used to provide for the parks or recreation
338-9 facilities.
338-10 Sec. 263.029. AUTHORITY OF PEACE OFFICERS. The authority
338-11 may employ and constitute its own peace officers, and any such
338-12 officer or any other duly constituted peace officer may make an
338-13 arrest when necessary to prevent or stop the commission of any
338-14 offense against the regulations of the authority or against the
338-15 laws of the state, when any such offense or threatened offense
338-16 occurs on or in any land, water, or easement owned or controlled by
338-17 the authority, or may make an arrest at any place in the case of an
338-18 offense involving injury or detriment to any property owned or
338-19 controlled by the authority.
338-20 Sec. 263.030. EFFECT ON PRIORITY OF WATER USE. Nothing in
338-21 this chapter shall be interpreted as amending or repealing Section
338-22 11.024, which provides for priorities of the use of water.
338-23 CHAPTER 264. NORTH CENTRAL TEXAS MUNICIPAL WATER AUTHORITY
338-24 Sec. 264.001. CREATION. (a) A conservation and reclamation
338-25 district to be known as the "North Central Texas Municipal Water
338-26 Authority" is created. The authority is a governmental agency and
339-1 a body politic and corporate.
339-2 (b) The authority is created under and is essential to
339-3 accomplish the purposes of Section 59, Article XVI, Texas
339-4 Constitution.
339-5 Sec. 264.002. DEFINITIONS. In this chapter:
339-6 (1) "Authority" means the North Central Texas
339-7 Municipal Water Authority.
339-8 (2) "Board" means the board of directors of the
339-9 authority.
339-10 (3) "Director" means a member of the board.
339-11 Sec. 264.003. TERRITORY. The authority contains all of the
339-12 territory contained in the boundaries of the cities of Goree, Knox
339-13 City, and Munday in Knox County and the city of Haskell in Haskell
339-14 County, as the boundaries of each city are set forth in ordinances
339-15 or resolutions passed or adopted before April 19, 1957. No
339-16 invalidity of any of those ordinances or resolutions or the fixing
339-17 of the boundaries as set out in those ordinances shall affect the
339-18 boundaries of the territory contained in the authority. The
339-19 legislature finds and determines that all of the territory and
339-20 taxable property contained within the boundaries set forth in the
339-21 ordinances or resolutions will benefit from the works and
339-22 improvements of the authority and that the territory described in
339-23 the ordinances or resolutions shall be contained within the
339-24 authority whether lawfully contained within any of the cities or
339-25 not.
339-26 Sec. 264.004. BOARD OF DIRECTORS. (a) All powers of the
340-1 authority shall be exercised by a board of directors. Each
340-2 director is appointed by a majority vote of the governing body of
340-3 the city in which the director resides.
340-4 (b) Two directors are appointed from each city in the
340-5 authority.
340-6 (c) Directors serve staggered two-year terms. In May of
340-7 each year the governing body of each city shall appoint a director
340-8 for the two-year term beginning June 1 of that year.
340-9 (d) Each director serves for a term of office as provided by
340-10 this section and until a successor is appointed and has qualified.
340-11 (e) A director must reside in and own taxable property in
340-12 the city from which the director is appointed. A member of a
340-13 governing body of a city or an employee of a city is not eligible
340-14 to serve as a director.
340-15 (f) A director shall subscribe the constitutional oath of
340-16 office and shall give bond for the faithful performance of the
340-17 director's duties in the amount of $5,000, the cost of which shall
340-18 be paid by the authority.
340-19 (g) A majority of the members of the board constitute a
340-20 quorum.
340-21 (h) If a director moves from the city from which the
340-22 director is appointed or otherwise ceases to be a director, the
340-23 governing body of the city shall appoint a successor director for
340-24 the unexpired term.
340-25 Sec. 264.005. DIRECTOR FEES. (a) Each director is entitled
340-26 to receive a fee not to exceed $20 for attending each meeting of
341-1 the board; provided, however, that no more than $40 may be paid to
341-2 a director for meetings held in any one calendar month.
341-3 (b) Each director is entitled to receive a fee not to exceed
341-4 $20 per day for each day devoted to the business of the authority
341-5 and reimbursement for actual expenses incurred in attending to
341-6 authority business provided that such service and expense are
341-7 expressly approved by the board.
341-8 Sec. 264.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
341-9 shall elect from among its members a president and a vice president
341-10 of the authority and other officers as in the judgment of the board
341-11 are necessary.
341-12 (b) The president is the chief executive officer of the
341-13 authority and the presiding officer of the board and has the same
341-14 right to vote as any other director.
341-15 (c) The vice president shall perform all duties and exercise
341-16 all powers conferred by this chapter on the president when the
341-17 president is absent or fails or declines to act, except the
341-18 president's right to vote.
341-19 (d) The board shall appoint a secretary and a treasurer, who
341-20 may or may not be members of the board, and it may combine those
341-21 offices. The treasurer shall give bond in an amount required by
341-22 the board. The bond must be conditioned on the treasurer
341-23 faithfully accounting for all funds that come into the person's
341-24 custody as treasurer of the authority.
341-25 (e) The board shall appoint necessary engineers, attorneys,
341-26 and other employees and shall employ a general manager. The power
342-1 to employ and discharge employees may be conferred upon the general
342-2 manager.
342-3 (f) The board shall adopt a seal for the authority.
342-4 Sec. 264.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
342-5 (a) Other territory situated within Baylor, Haskell, and Knox
342-6 counties may be annexed to the authority as provided by this
342-7 section.
342-8 (b) A petition for annexation must:
342-9 (1) be signed by 50 or a majority, whichever number is
342-10 less, of the qualified voters of the territory to be annexed who
342-11 own taxable property in the territory being annexed and who have
342-12 duly rendered the property to the city, if situated within a city
342-13 or town, or county for taxation;
342-14 (2) be filed with the board; and
342-15 (3) describe the territory to be annexed by metes and
342-16 bounds or otherwise unless the territory is the same as that
342-17 contained in a city or town, in which event it is sufficient to
342-18 state that the territory to be annexed is that contained within the
342-19 city or town.
342-20 (c) If the board finds that the petition complies with and
342-21 is signed by the number of qualified persons required under
342-22 Subsection (b), that the annexation would be in the interest of the
342-23 territory to be annexed and the authority, and that the authority
342-24 will be able to supply water to the territory to be annexed or
342-25 cause water to be supplied to the territory to be annexed, the
342-26 board shall adopt a resolution stating the conditions, if any,
343-1 under which the territory may be annexed to the authority and
343-2 requesting the commission to annex the territory to the authority.
343-3 The resolution shall be conclusive of the legal sufficiency of the
343-4 petition and the qualifications of the signers. A certified copy
343-5 of the resolution and the petition shall be filed with the
343-6 commission.
343-7 (d) The commission shall adopt a resolution declaring its
343-8 intention to call an election in the territory to be annexed for
343-9 the purpose of submitting the proposition of whether the territory
343-10 shall be annexed to the authority. The commission shall set a time
343-11 and place for a hearing to be held by the commission on the
343-12 question of whether the territory to be annexed will benefit from
343-13 the improvements, works, and facilities then owned or operated or
343-14 contemplated to be owned or operated by the authority or will
343-15 benefit from the other functions of the authority. Railroad
343-16 right-of-way that is not situated within the defined limits of an
343-17 incorporated city or town will not benefit from the improvements,
343-18 works, and facilities that the authority is authorized to
343-19 construct. Railroad right-of-way may not be annexed to the
343-20 authority unless the right-of-way is contained within the limits of
343-21 an incorporated city or town that has been annexed to the
343-22 authority.
343-23 (e) Notice of the adoption of the resolution stating the
343-24 time and place of the hearing addressed to the citizens and owners
343-25 of property in the territory to be annexed shall be published one
343-26 time in a newspaper designated by the commission at least 10 days
344-1 before the date of the hearing. The notice must describe the
344-2 territory to be annexed in the same manner in which it is required
344-3 or permitted by this chapter to be described in the petition.
344-4 (f) All interested persons may appear at the hearing and
344-5 offer evidence for or against the intended annexation. The hearing
344-6 may proceed in the order and under the rules as may be prescribed
344-7 by the commission and may be recessed from time to time. If, at
344-8 the conclusion of the hearing, the commission finds that all of the
344-9 lands in the territory to be annexed will benefit from the present
344-10 or contemplated improvements, works, or facilities of the
344-11 authority, the commission shall adopt a resolution calling an
344-12 election in the territory to be annexed stating the date of the
344-13 election and the place or places for holding and appointing a
344-14 presiding judge for each voting place, who shall appoint the
344-15 necessary assistant judges and clerks to assist in holding the
344-16 election.
344-17 (g) Notice of the election, stating the date and places for
344-18 holding the election, the proposition to be voted on, and the
344-19 conditions under which the territory may be annexed, or making
344-20 reference to the resolution of the board for that purpose, shall be
344-21 published one time in a newspaper designated by the commission at
344-22 least 10 days before the date set for the election.
344-23 (h) Only qualified electors who reside in the territory to
344-24 be annexed may vote in the election. Returns of the election shall
344-25 be made to the commission.
344-26 (i) The commission shall canvass the returns of the election
345-1 and adopt an order declaring the results. If the order shows that
345-2 a majority of the votes cast are in favor of annexation, the
345-3 commission shall annex the territory to the authority, and the
345-4 annexation is incontestable except in the manner and within the
345-5 time for contesting elections under the general election law. A
345-6 certified copy of the order shall be recorded in the deed records
345-7 of the county in which the territory is situated.
345-8 (j) In calling the election on the proposition for the
345-9 annexation of territory, the commission may include, as a part of
345-10 the same proposition, a proposition for:
345-11 (1) the assumption of the territory's part of the
345-12 tax-supported bonds of the authority then outstanding and those
345-13 previously voted but not yet sold; and
345-14 (2) the levy of an ad valorem tax on taxable property
345-15 in the territory to be annexed along with the tax in the rest of
345-16 the authority for the payment of the bonds.
345-17 (k) After territory is added to the authority, the board may
345-18 call an election over the entire authority for the purpose of
345-19 determining whether the entire authority as enlarged shall assume
345-20 the tax-supported bonds then outstanding and those voted but not
345-21 yet sold and whether an ad valorem tax shall be levied on all
345-22 taxable property within the authority as enlarged for the payment
345-23 of the bonds, unless the proposition has been voted along with the
345-24 annexation election and becomes lawfully binding on the territory
345-25 annexed. The election shall be called and held in the same manner
345-26 as elections for the issuance of bonds as provided in this chapter.
346-1 (l) If no newspaper is published in the territory to be
346-2 annexed, the notices required by this section shall be posted at
346-3 three public places in the territory.
346-4 Sec. 264.008. APPOINTMENT OF DIRECTORS IN ANNEXED TERRITORY.
346-5 If the territory of a city is annexed to the authority, the
346-6 governing body of the city shall appoint two directors. The term
346-7 of one appointee expires on the following May 31 and the term of
346-8 the other appointee expires on May 31 a year later. Thereafter,
346-9 the directors are appointed as provided in Section 264.004.
346-10 Sec. 264.009. WATER APPROPRIATION PERMITS. The authority
346-11 may obtain appropriation permits from the commission through
346-12 appropriate hearings as provided by Chapter 11. Thereafter the
346-13 permit, either on application of the authority or on the initiative
346-14 of the commission, may be modified by the commission, after an
346-15 appropriate hearing, to increase or decrease the amount of water
346-16 that may be appropriated, and after considering the amount of water
346-17 that may be stored by the authority to meet fluctuating demands,
346-18 either on application by the authority or by its own action, the
346-19 commission shall redetermine the maximum amount of water that the
346-20 authority may store in its reservoir. In making this
346-21 determination, the commission shall consider the needs of the
346-22 cities and others that purchase water from the authority.
346-23 Sec. 264.010. AUTHORITY TO IMPOUND AND TRANSPORT WATER;
346-24 COMMISSION APPROVAL. (a) The authority may acquire or construct,
346-25 within the boundaries of Baylor, Haskell, Knox, and Throckmorton
346-26 counties, dams and all works, plants, and other facilities
347-1 necessary or useful for the purpose of impounding, processing, and
347-2 transporting water to cities and others for municipal, domestic,
347-3 industrial, and mining purposes.
347-4 (b) The size of a dam and reservoir shall be determined by
347-5 the board, taking into consideration probable future increases in
347-6 water requirements.
347-7 (c) The size of a dam shall not be limited by the amount of
347-8 water initially authorized by the commission or a predecessor
347-9 agency of the commission to be impounded in the reservoir.
347-10 (d) A dam or other facility for impounding water may not be
347-11 constructed until the plan for the project is approved by the
347-12 commission.
347-13 Sec. 264.011. ACQUISITION AND DISPOSITION OF PROPERTY.
347-14 (a) The authority may acquire land and construct, lease, or
347-15 otherwise acquire all works, plants, and other facilities necessary
347-16 or useful for the purpose of diverting, further impounding or
347-17 storing, processing, and transporting water to cities and others
347-18 for municipal, domestic, industrial, and mining purposes.
347-19 (b) Subject to the terms of any deed of trust issued by the
347-20 authority, the authority may sell, trade, or otherwise dispose of
347-21 any real or personal property determined by the board not to be
347-22 needed for authority purposes.
347-23 (c) The authority may not develop or otherwise acquire
347-24 underground sources of water.
347-25 (d) The authority may not exercise powers of eminent domain
347-26 outside the boundaries of Baylor, Knox, Haskell, and Throckmorton
348-1 counties.
348-2 Sec. 264.012. EMINENT DOMAIN. (a) For the purpose of
348-3 carrying out any power or authority conferred by this chapter, the
348-4 authority may acquire by condemnation in the manner provided by
348-5 Chapter 21, Property Code, the fee simple title to land and other
348-6 property and easements in Baylor, Knox, Haskell, and Throckmorton
348-7 counties for the reservoir and dam and flood easements above the
348-8 probable high-water line around any such reservoir and easements
348-9 for pipelines.
348-10 (b) The authority is a municipal corporation within the
348-11 meaning of Section 21.021(c), Property Code, except that the
348-12 authority may not condemn property owned by any other political
348-13 subdivision, city, or town.
348-14 (c) As against persons, firms, and corporations, or their
348-15 receivers or trustees, who have the power of eminent domain, the
348-16 fee title may not be condemned, and the authority may condemn only
348-17 an easement.
348-18 (d) In accordance with the provisions of this section, the
348-19 amount and character of interest in land, other property, and
348-20 easements to be acquired shall be determined by the board.
348-21 (e) The authority has the power conferred on water control
348-22 and improvement districts by Section 49.221 with reference to
348-23 making surveys and attending to other business of the authority.
348-24 (f) If the authority, in the exercise of the power of
348-25 eminent domain or the power of relocation or any other power
348-26 granted under this chapter, makes necessary the relocation,
349-1 raising, rerouting, changing the grade, or altering the
349-2 construction of any highway, railroad, electric transmission line,
349-3 telephone or telegraph properties and facilities, or pipeline, all
349-4 such necessary relocation, raising, rerouting, changing of grade,
349-5 or alteration of construction shall be accomplished at the sole
349-6 expense of the authority.
349-7 Sec. 264.013. CONTRACTS; BIDS. A construction contract
349-8 requiring an expenditure of more than $10,000 may be made only
349-9 after publication of a notice to bidders once each week for two
349-10 weeks for sealed bids before the contract is awarded. The bids
349-11 shall be opened publicly. The notice is sufficient if it states
349-12 the time and place when and where the bids will be opened, states
349-13 the general nature of the work to be done or the material,
349-14 equipment, or supplies to be purchased, and states where and on
349-15 what terms copies of the plans and specifications may be obtained.
349-16 The publication must be in a newspaper published in the authority
349-17 and designated or approved by the board.
349-18 Sec. 264.014. ISSUANCE OF BONDS. (a) For the purpose of
349-19 providing a source of water supply for cities and other users for
349-20 municipal, domestic, industrial, mining, and oil flooding purposes
349-21 as authorized by this chapter and for the purpose of carrying out
349-22 any other power or authority conferred by this chapter, the
349-23 authority may issue negotiable bonds to be payable from such
349-24 revenues or taxes, or both revenues and taxes, of the authority as
349-25 are pledged by resolution of the board. Pending the issuance of
349-26 definitive bonds, the board may authorize the delivery of
350-1 negotiable interim bonds or notes that are eligible for exchange or
350-2 substitution by the definitive bonds.
350-3 (b) Bonds must be authorized by resolution of the board.
350-4 The bonds must be issued in the name of the authority, signed by
350-5 the president or vice president, and attested by the secretary and
350-6 must bear the seal of the authority. The signatures of the
350-7 president or of the secretary or of both may be printed or
350-8 lithographed on the bonds if authorized by the board, and the seal
350-9 of the authority may be impressed, printed, or lithographed on the
350-10 bonds. The bonds must mature, serially or otherwise, in not to
350-11 exceed 40 years and may be sold at a price and under terms
350-12 determined by the board to be the most advantageous reasonably
350-13 obtainable, provided that the interest cost to the authority,
350-14 including the discount, if any, calculated by use of standard bond
350-15 interest tables currently in use by insurance companies and
350-16 investment houses does not exceed six percent per year. Within the
350-17 discretion of the board, bonds may be made callable prior to
350-18 maturity at such times and prices as may be prescribed in the
350-19 resolution authorizing the bonds and may be made registrable as to
350-20 principal or as to both principal and interest.
350-21 (c) Bonds may be issued in more than one series and from
350-22 time to time as required for carrying out the purposes of this
350-23 chapter.
350-24 (d) Bonds may be secured by a pledge of all or part of the
350-25 net revenues of the authority, of the net revenues of one or more
350-26 contracts made before or after the bonds are issued, or of other
351-1 revenues or income specified by resolution of the board or in the
351-2 trust indenture. Any such pledge may reserve the right, under
351-3 conditions specified in the pledge, to issue additional bonds that
351-4 will be on a parity with or subordinate to the bonds being issued.
351-5 In this section, "net revenues" means the gross revenues and income
351-6 of the authority from all sources less the amount necessary to pay
351-7 the cost of maintaining and operating the authority and its
351-8 properties.
351-9 (e) The authority may issue bonds payable from ad valorem
351-10 taxes to be levied on all taxable property in the authority and may
351-11 issue bonds secured by and payable from both such taxes and the
351-12 revenues of the authority. If bonds are issued payable wholly or
351-13 partially from ad valorem taxes, the board shall levy a tax
351-14 sufficient to pay the bonds and the interest on the bonds as the
351-15 bonds and interest become due, but the rate of the tax for any year
351-16 may be set after giving consideration to the money received from
351-17 the pledged revenues that may be available for payment of principal
351-18 and interest to the extent and in the manner permitted by the
351-19 resolution authorizing the issuance of the bonds.
351-20 (f) If bonds payable wholly from revenues are issued, the
351-21 board shall set, and from time to time revise, rates of
351-22 compensation for water sold and services rendered by the authority
351-23 that will be sufficient to pay the expense of operating and
351-24 maintaining the facilities of the authority and to pay bonds as
351-25 they mature and the interest as it accrues and to maintain the
351-26 reserve and other funds as provided in the resolution authorizing
352-1 the bonds. If bonds payable partially from revenues are issued,
352-2 the board shall set, and from time to time revise, rates of
352-3 compensation for water sold and services rendered by the authority
352-4 that will be sufficient to assure compliance with the resolution
352-5 authorizing the bonds.
352-6 (g) The authority may set aside from the proceeds of the
352-7 sale of the bonds an amount for the payment of interest expected to
352-8 accrue during construction and for a reserve interest and sinking
352-9 fund, and such provision may be made in the resolution authorizing
352-10 the bonds. Proceeds from the sale of the bonds may also be used
352-11 for the payment of all expenses necessarily incurred in
352-12 accomplishing the purposes for which the authority is created,
352-13 including the expenses of issuing and selling the bonds. The
352-14 proceeds from the sale of the bonds may be temporarily invested in
352-15 direct obligations of the United States government maturing not
352-16 more than one year from the date of investment.
352-17 (h) In the event of a default or a threatened default in the
352-18 payment of principal of or interest on bonds payable wholly or
352-19 partially from revenues of the authority, any court of competent
352-20 jurisdiction may, on petition of the holders of outstanding bonds,
352-21 appoint a receiver with authority to collect and receive all income
352-22 of the authority except taxes, employ and discharge agents and
352-23 employees of the authority, take charge of the authority's funds on
352-24 hand (except funds received from taxes, unless commingled), and
352-25 manage the proprietary affairs of the authority without consent or
352-26 hindrance by the board. The receiver may also be authorized to
353-1 sell or make contracts for the sale of water or renew such
353-2 contracts with the approval of the court appointing the receiver.
353-3 The court may vest the receiver with other powers and duties the
353-4 court finds necessary for the protection of the holders of the
353-5 bonds. The resolution authorizing the issuance of the bonds or the
353-6 trust indenture securing them may limit or qualify the rights of
353-7 less than all of the outstanding bonds payable from the same source
353-8 to institute or prosecute any litigation affecting the authority's
353-9 property or income.
353-10 Sec. 264.015. REFUNDING BONDS. (a) The authority may issue
353-11 refunding bonds for the purpose of refunding any outstanding bonds
353-12 authorized by this chapter and interest on the bonds. Refunding
353-13 bonds may be issued to refund more than one series of outstanding
353-14 bonds and combine the pledges for the outstanding bonds for the
353-15 security of the refunding bonds, and refunding bonds may be secured
353-16 by other or additional revenues and mortgage liens.
353-17 (b) The provisions of this chapter with reference to the
353-18 issuance by the authority of other bonds, their security, their
353-19 approval by the attorney general, and the remedies of the holders
353-20 shall be applicable to refunding bonds. Refunding bonds shall be
353-21 registered by the comptroller on surrender and cancellation of the
353-22 bonds to be refunded, but in lieu of the process, the resolution
353-23 authorizing the issuance of the refunding bonds may provide that
353-24 the refunding bonds shall be sold and the proceeds of the sale
353-25 deposited in the bank where the original bonds are payable, in
353-26 which case the refunding bonds may be issued in an amount
354-1 sufficient to pay the principal of and the interest on the original
354-2 bonds to their option date or maturity date, and the comptroller
354-3 shall register the refunding bonds without concurrent surrender and
354-4 cancellation of the original bonds.
354-5 Sec. 264.016. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE
354-6 LIEN. (a) Bonds, including refunding bonds, authorized by this
354-7 chapter that are not payable wholly from ad valorem taxes may be
354-8 additionally secured by a trust indenture under which the trustee
354-9 may be a bank with trust powers located either within or outside
354-10 the state. Such bonds may, within the discretion of the board, be
354-11 additionally secured by a deed of trust or mortgage lien on
354-12 physical properties of the authority and all franchises, easements,
354-13 water rights and appropriation permits, leases and contracts, and
354-14 rights appurtenant to the properties, vesting in the trustee power
354-15 to sell the properties for payment of the indebtedness, power to
354-16 operate the properties, and all other powers and authority for the
354-17 further security of the bonds.
354-18 (b) The trust indenture, regardless of the existence of a
354-19 deed of trust or mortgage lien on the properties, may contain any
354-20 provisions prescribed by the board for the security of the bonds
354-21 and the preservation of the trust estate, may make provision for
354-22 amendment or modification thereof and the issuance of bonds to
354-23 replace lost or mutilated bonds, may condition the right to expend
354-24 authority funds or sell authority property upon approval of a
354-25 registered professional engineer selected as provided in the trust
354-26 indenture, and may make provision for the investment of funds of
355-1 the authority. A purchaser under a sale under a deed of trust
355-2 lien, where one is given, shall be the absolute owner of the
355-3 properties, facilities, and rights purchased and shall have the
355-4 right to maintain and operate the properties, facilities, and
355-5 rights.
355-6 Sec. 264.017. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION.
355-7 (a) Bonds payable wholly or partially from ad valorem taxes,
355-8 except refunding bonds, may not be issued unless authorized by an
355-9 election held after January 1, 1969, at which only the qualified
355-10 voters who reside in the authority may vote and a majority of the
355-11 votes cast in each city contained in the authority are in favor of
355-12 the issuance of the bonds. If a majority of the votes cast in any
355-13 city contained in the authority are against the issuance of the
355-14 bonds, the board may adopt a resolution detaching the territory of
355-15 that city from the authority if the board finds that it is to the
355-16 best interest of the authority to issue bonds payable wholly or
355-17 partially from taxes, but no territory may be detached from the
355-18 authority while any bonds that are payable from revenues or taxes
355-19 or both are outstanding. Bonds not payable wholly or partially
355-20 from ad valorem taxes may be issued without an election.
355-21 (b) An election for the authorization of bonds may be called
355-22 by the board without a petition. The resolution calling the
355-23 election must specify the time and places of holding the election,
355-24 the purpose for which the bonds are to be issued, the maximum
355-25 amount of the bonds, the maximum maturity of the bonds, the form of
355-26 the ballot, and the presiding judge for each voting place. The
356-1 presiding judge serving at each voting place shall appoint one
356-2 assistant judge and at least two clerks to assist in holding the
356-3 election. Notice of the election shall be given by publishing a
356-4 substantial copy of the notice in a newspaper published in each
356-5 city contained in the authority for two consecutive weeks. The
356-6 first publication must be at least 21 days before the date of the
356-7 election. In a city in which no newspaper is published, notice
356-8 shall be given by posting a copy of the resolution in three public
356-9 places.
356-10 (c) The returns of the election shall be made to and
356-11 canvassed by the board.
356-12 (d) Elections held under this section shall be governed by
356-13 the Election Code except as otherwise provided by this chapter.
356-14 Sec. 264.018. BOND APPROVAL AND REGISTRATION. After bonds,
356-15 including refunding bonds, are authorized by the authority, the
356-16 bonds and the record relating to their issuance shall be submitted
356-17 to the attorney general for examination as to the validity of the
356-18 bonds. If the bonds recite that they are secured by a pledge of
356-19 the proceeds of a contract previously made between the authority
356-20 and a city or other governmental agency, authority, or district, a
356-21 copy of the contract and the proceedings of the city or other
356-22 governmental agency, authority, or district authorizing the
356-23 contract shall also be submitted to the attorney general. If the
356-24 bonds have been authorized and if such contract has been made in
356-25 accordance with the constitution and laws of the state, the
356-26 attorney general shall approve the bonds and the contract, and the
357-1 bonds then shall be registered by the comptroller. After this
357-2 approval, the bonds and the contract, if any, are valid and binding
357-3 and are incontestable for any cause.
357-4 Sec. 264.019. CONTRACTS WITH CITIES AND OTHERS. The
357-5 authority may enter into contracts with cities and others for
357-6 supplying water to them. The authority may also contract with a
357-7 city for the rental or leasing of, or for the operation of, the
357-8 water production, water supply, and water filtration or
357-9 purification and water supply facilities of the city for such
357-10 consideration as the authority and the city may agree. The
357-11 contract may be on such terms and for such time as the parties may
357-12 agree, and the contract may provide that it shall continue in
357-13 effect until bonds specified in the contract and refunding bonds
357-14 issued in lieu of such bonds are paid.
357-15 Sec. 264.020. AUTHORITY DEPOSITORY. (a) The board shall
357-16 designate one or more banks within the authority to serve as
357-17 depository for the funds of the authority. All funds of the
357-18 authority shall be deposited in the depository bank or banks,
357-19 except that funds pledged to pay bonds may be deposited with the
357-20 trustee bank named in the trust agreement and except that funds
357-21 shall be remitted to the bank of payment for the payment of the
357-22 principal of and interest on bonds. To the extent that funds in
357-23 the depository banks and the trustee bank are not insured by the
357-24 Federal Deposit Insurance Corporation, the funds shall be secured
357-25 in the manner provided by law for the security of county funds.
357-26 (b) Before designating a depository bank or banks, the board
358-1 shall issue a notice stating the time and place when and where the
358-2 board will meet for such purpose and inviting the banks in the
358-3 authority to submit applications to be designated depositories.
358-4 The notice must be published one time in a newspaper or newspapers
358-5 published in the authority and specified by the board.
358-6 (c) At the time stated in the notice, the board shall
358-7 consider the applications and the management and condition of the
358-8 banks filing them and shall designate as depositories the bank or
358-9 banks that offer the most favorable terms and conditions for the
358-10 handling of the funds of the authority and that the board finds
358-11 have proper management and are in condition to warrant the handling
358-12 of authority funds. Membership on the board by an officer or
358-13 director of a bank shall not disqualify that bank from being
358-14 designated as a depository.
358-15 (d) If no applications are received by the time stated in
358-16 the notice, the board shall designate a bank or banks within or
358-17 outside the authority on such terms and conditions as the board
358-18 determines advantageous to the authority.
358-19 (e) The term of service for depositories shall be prescribed
358-20 by the board.
358-21 Sec. 264.021. WATER APPROPRIATION PERMITS; ACQUISITION OF
358-22 STORAGE CAPACITY AND WATER. The authority may acquire water
358-23 appropriation permits from owners of permits. The authority may
358-24 lease or acquire rights in and to storage and storage capacity in
358-25 any reservoir constructed or to be constructed by any person, firm,
358-26 corporation, or public agency or from the United States government
359-1 or any of its agencies. The authority may also purchase or make
359-2 contracts for the purchase of water or a water supply from any
359-3 person, firm, corporation, or public agency or from the United
359-4 States government or any of its agencies.
359-5 Sec. 264.022. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
359-6 DEPOSITS. All bonds of the authority are legal and authorized
359-7 investments for banks, savings banks, trust companies, building and
359-8 loan associations, savings and loan associations, insurance
359-9 companies, fiduciaries, trustees, and guardians and for the sinking
359-10 funds of cities, towns, villages, counties, school districts, or
359-11 other political corporations or subdivisions of the state. The
359-12 bonds are eligible to secure the deposit of all public funds of the
359-13 state and all public funds of cities, towns, villages, counties,
359-14 school districts, or other political corporations or subdivisions
359-15 of the state, and the bonds are lawful and sufficient security for
359-16 the deposits to the extent of their value when accompanied by all
359-17 unmatured coupons.
359-18 Sec. 264.023. BONDS EXEMPT FROM TAXATION. The
359-19 accomplishment of the purposes stated in this chapter is for the
359-20 benefit of the people of this state and for the improvement of
359-21 their properties and industries, and the authority, in carrying out
359-22 the purposes of this chapter will be performing an essential public
359-23 function under Section 59, Article XVI, Texas Constitution. The
359-24 authority shall not be required to pay any tax or assessment on the
359-25 project or any part of the project, and the bonds issued under this
359-26 chapter and the transfer of and income from the bonds, including
360-1 profits made on the sale of the bonds, shall at all times be free
360-2 from taxation within the state.
360-3 Sec. 264.024. TAXATION. (a) The tax rolls of the cities
360-4 situated within the authority as created and within annexed
360-5 territory shall constitute the tax rolls of the authority until
360-6 assessments and tax rolls are made by the authority.
360-7 (b) Before the sale and delivery of authority bonds that are
360-8 payable wholly or partially from ad valorem taxes, the board shall
360-9 appoint a tax assessor and collector and a board of equalization
360-10 and shall cause taxes to be assessed, valuations to be equalized,
360-11 and tax rolls to be prepared. General laws applicable to water
360-12 control and improvement districts with reference to tax assessors
360-13 and collectors, boards of equalization, tax rolls, and the levy and
360-14 collection of taxes and delinquent taxes shall be applicable to the
360-15 authority, except that the board of equalization, to be appointed
360-16 each year by the board, shall consist of one member residing in
360-17 each city then contained in the authority.
360-18 Sec. 264.025. ADOPTION OF RULES OR REGULATIONS; PENALTIES;
360-19 ENFORCEMENT. (a) The board may adopt and promulgate all
360-20 reasonable rules or regulations to secure, maintain, and preserve
360-21 the sanitary condition of all water in and to flow into any
360-22 reservoir owned by the authority, to prevent the waste or
360-23 unauthorized use of water, and to regulate residence, hunting,
360-24 fishing, boating, and camping and all recreational and business
360-25 privileges along or around any reservoir or any body of land or
360-26 easement owned by the authority.
361-1 (b) The authority may prescribe a reasonable penalty for the
361-2 breach of a rule or regulation of the authority, not to exceed a
361-3 fine of $200 or imprisonment for 30 days, or both the fine and
361-4 imprisonment. The penalty shall be in addition to any other
361-5 penalties provided by the laws of the state and may be enforced by
361-6 complaints filed in the appropriate court of jurisdiction;
361-7 provided, however, that no rule or regulation that provides a
361-8 penalty for a violation of the rule or regulation shall be in
361-9 effect, as to enforcement of the penalty, until five days after the
361-10 authority has caused a substantive statement of the rule or
361-11 regulation and the penalty for the violation to be published once a
361-12 week for two consecutive weeks in the county in which the reservoir
361-13 is situated or in any county in which it is partly situated. The
361-14 substantive statement to be published must be as condensed as is
361-15 possible to afford sufficient notice as to the act prohibited by
361-16 the rule or regulation. A single notice may embrace any number of
361-17 rules or regulations. The notice must provide the information that
361-18 breach of the rule or regulation will subject the violator to the
361-19 imposition of a penalty. The notice must also state that the full
361-20 text of the rule or regulation is on file in the principal office
361-21 of the authority, where it may be read by any interested person.
361-22 Five days after the second publication of the required notice, the
361-23 advertised rule or regulation shall be in effect and ignorance of
361-24 the rule or regulation is not a defense to prosecution for the
361-25 enforcement of a penalty. After the required publication, the
361-26 rules and regulations authorized by this section shall judicially
362-1 be known to the courts and shall be considered similar in nature to
362-2 a valid penal ordinance of a city of the state.
362-3 (c) A duly constituted peace officer may make arrests when
362-4 necessary to prevent or stop the commission of any offense against
362-5 the rules or regulations of the authority, or against the laws of
362-6 the state, when the offense or threatened offense occurs on any
362-7 land, water, or easement owned or controlled by the authority or
362-8 may make an arrest at any place in the case of an offense involving
362-9 injury or detriment to any property owned or controlled by the
362-10 authority.
362-11 Sec. 264.026. PARKS AND RECREATION. The authority may
362-12 establish or otherwise provide for public parks and recreation
362-13 facilities and may acquire land for those purposes.
362-14 Sec. 264.027. EFFECT ON PRIORITY OF WATER USE. Nothing in
362-15 this chapter shall be interpreted as amending or repealing Section
362-16 11.024, which provides for priorities of the use of water.
362-17 CHAPTER 265. NORTH HARRIS COUNTY REGIONAL WATER AUTHORITY
362-18 Sec. 265.001. CREATION. (a) A regional water authority to
362-19 be known as the "North Harris County Regional Water Authority" is
362-20 created. The authority is a governmental agency and a body politic
362-21 and corporate.
362-22 (b) The authority is created under and is essential to
362-23 accomplish the purposes of Section 59, Article XVI, Texas
362-24 Constitution.
362-25 Sec. 265.002. DEFINITIONS. In this chapter:
362-26 (1) "Agricultural crop" means food or fiber
363-1 commodities grown for resale or commercial purposes that provide
363-2 food, clothing, or animal feed.
363-3 (2) "Authority" means the North Harris County Regional
363-4 Water Authority.
363-5 (3) "Board" means the board of directors of the
363-6 authority.
363-7 (4) "Director" means a member of the board.
363-8 (5) "Local government" means a municipality, county,
363-9 special district, or other political subdivision of the state or a
363-10 combination of two or more of those entities.
363-11 (6) "Person" has the meaning assigned by Section
363-12 311.005, Government Code.
363-13 (7) "Subsidence" means the lowering in elevation of
363-14 the surface of land by the withdrawal of groundwater.
363-15 (8) "Subsidence district" means the Harris-Galveston
363-16 Coastal Subsidence District.
363-17 (9) "System" means a network of pipelines, conduits,
363-18 canals, pumping stations, force mains, treatment plants, and any
363-19 other construction, device, or related appurtenance used to treat
363-20 or transport water.
363-21 (10) "Water" includes:
363-22 (A) groundwater, percolating or otherwise;
363-23 (B) any surface water, natural or artificial,
363-24 navigable or nonnavigable; and
363-25 (C) industrial and municipal wastewater.
363-26 Sec. 265.003. BOUNDARIES. (a) Except as provided by this
364-1 section, the authority includes the territory that is contained in
364-2 the following area, regardless of whether the territory contains
364-3 noncontiguous parcels of land or whether the territory is located
364-4 within the boundaries of any other governmental entity or political
364-5 subdivision of the state, but only if also contained in one or more
364-6 of the state representative districts described by this section:
364-7 BEGINNING at the intersection of the Harris and Waller County
364-8 line with the north right-of-way line of U.S. Highway 290 (current
364-9 alignment);
364-10 THENCE northwest along the Harris and Waller County line to
364-11 the intersection with Spring Creek;
364-12 THENCE continuing southeasterly along said Harris and Waller
364-13 County line, with the meanders of Spring Creek to the intersection
364-14 of the Waller and Montgomery County line;
364-15 THENCE southeasterly along the Harris and Montgomery County
364-16 line continuing with the meanders of said Spring Creek; to the
364-17 intersection with the City of Houston, corporate limits;
364-18 THENCE along said City of Houston corporate limits, the
364-19 following: south approximately one half mile; east approximately
364-20 one half mile to the City of Humble corporate limits; north along
364-21 said City of Humble corporate limits approximately one half mile to
364-22 aforementioned Spring Creek; east along Spring Creek to its
364-23 confluence with the San Jacinto River to the intersection of U.S.
364-24 Highway 59; easterly and southerly along the take line for Lake
364-25 Houston to the intersection with the southeasterly right-of-way of
364-26 the Union Pacific Railroad; southwesterly along said Union Pacific
365-1 Railroad for approximately two miles; south to the north end of
365-2 Duessen Parkway; southeast along the east side of Duessen Parkway
365-3 and along the north side of the access road to the intersection
365-4 with North Lake Houston Parkway;
365-5 THENCE departing said City of Houston corporate limits, west
365-6 along the north side of said North Lake Houston Parkway to the
365-7 beginning of Mount Houston Road, and continuing west on Mount
365-8 Houston Road to the 6900 block to the intersection of Suburban;
365-9 THENCE south along Suburban to the City of Houston corporate
365-10 limits;
365-11 THENCE along said City of Houston corporate limits, the
365-12 following: west to Hirsch Road; south along the west side of
365-13 Hirsch Road to Langely; west along the south side of Langley to the
365-14 southbound feeder road of US Highway 59; northeast along the west
365-15 side of the feeder road of US Highway 59 to Little York; west along
365-16 the south side of Little York to Bentley; north along the east side
365-17 of Bentley to Sagebrush; west along the north side of Sagebrush to
365-18 Halls Bayou; south along Halls Bayou to Little York; west along the
365-19 south side of Little York to Aldine Westfield Road; north along the
365-20 east sides of Aldine Westfield Road to its intersection with the
365-21 easterly extension of the City of Houston corporate limits; west to
365-22 the Hardy Toll Road; north along the Hardy Toll Road approximately
365-23 0.25 miles; east approximately 0.35 mile; north approximately 0.15
365-24 mile; west approximately 0.35 mile; northwest along the Hardy Toll
365-25 Road approximately 1 mile; southwesterly along an irregular path
365-26 generally west to Carby; west along Carby to Airline Drive; south
366-1 along Airline Drive to Canino; west along Canino to Sweetwater;
366-2 north along Sweetwater to West Road; west to Interstate 45/US 75;
366-3 south along Interstate 45/US 75 to south of Bluebell Road;
366-4 southerly along an irregular path generally south and west to West
366-5 Mount Houston Road; west along Mount Houston Road to a line east of
366-6 Ella Boulevard; south along a line generally parallel to Ella
366-7 Boulevard to south of West Gulf Bank; west along the south side of
366-8 West Gulf Bank to Tomball Parkway; northwest along Tomball Parkway
366-9 approximately 1.5 mile; west along an irregular path to North
366-10 Houston-Rosslyn Road; north along North Houston-Rosslyn Road to
366-11 Vogel Creek; west along Vogel Creek to the FWD CRIP RR; south along
366-12 the FWD CRIP RR to Logview; west along Logview to Hollister; south
366-13 along Hollister to White Oak Bayou; east along White Oak Bayou to
366-14 Twisting Vine; south along Twisting Vine to West Little York; west
366-15 along West Little York to Fairbanks North Houston; south along
366-16 Fairbanks North Houston to Cole Creek; west along Cole Creek to
366-17 Hempstead Road; northwest along Hempstead Road to Brittmore Road,
366-18 also being the intersection with U.S. Highway 290, Northwest
366-19 Freeway;
366-20 THENCE departing said City of Houston corporate limits and
366-21 continuing northwest along U.S. Highway 290, Northwest Freeway, at
366-22 Spencer Road;
366-23 THENCE northwest along U.S. Highway 290, Northwest Freeway
366-24 (current alignment), to the intersection of the Harris and Waller
366-25 County line, the POINT OF BEGINNING.
366-26 (b) The authority includes only that territory described by
367-1 Subsection (a) that is also in the following state representative
367-2 districts as described by Article II, Chapter 2, Acts of the 72nd
367-3 Legislature, 3rd Called Session, 1992 (Article II, Article 195a-11,
367-4 Vernon's Texas Civil Statutes), as the districts existed on
367-5 June 18, 1999:
367-6 (1) District 127;
367-7 (2) District 126;
367-8 (3) District 130;
367-9 (4) District 135; and
367-10 (5) District 150.
367-11 (c) Notwithstanding Subsections (a) and (b), the authority
367-12 does not include any area that, on June 18, 1999, was inside the
367-13 municipal limits of the city of Houston or inside the municipal
367-14 limits of the city of Humble.
367-15 (d) On a municipality's annexation of any of the authority's
367-16 territory, the annexed territory is excluded from the authority's
367-17 territory. The authority shall continue to provide services to the
367-18 annexed territory in accordance with contracts in effect at the
367-19 time of the annexation unless a written agreement between the board
367-20 and the governing body of the municipality provides otherwise.
367-21 Sec. 265.004. EXCLUSION OF CERTAIN TERRITORY. (a) A
367-22 district organized under Section 52, Article III, or Section 59,
367-23 Article XVI, Texas Constitution, that is located in the portion of
367-24 the territory described by Section 265.003(a) that is south of
367-25 Beltway 8 or east of U.S. Highway 59 may petition for exclusion of
367-26 its territory from the authority's territory. Before the 61st day
368-1 after the date the authority receives the petition, the board
368-2 shall:
368-3 (1) grant the petition and order the territory
368-4 excluded if the petition:
368-5 (A) includes an accurate legal description of
368-6 the boundaries of the territory to be excluded; and
368-7 (B) is filed with the authority before March 1,
368-8 2001; and
368-9 (2) if the board grants the petition, file for
368-10 recording in the office of the county clerk of Harris County a copy
368-11 of the order and a description of the authority's boundaries as
368-12 they exist after the exclusion of the territory.
368-13 (b) The order excluding the territory is effective
368-14 immediately after the order and description are recorded.
368-15 Sec. 265.005. APPLICABILITY OF OTHER LAW. (a) Except as
368-16 provided by Subsection (b), this chapter prevails over any
368-17 provision of general law that is inconsistent with this chapter.
368-18 (b) This chapter does not prevail over or preempt a
368-19 provision of Chapter 36 or 151 that is being implemented by the
368-20 subsidence district.
368-21 Sec. 265.006. FINDING OF BENEFIT. All the land and other
368-22 property included within the boundaries of the authority will
368-23 benefit from the works and projects that are to be accomplished by
368-24 the authority under powers conveyed by this chapter. The authority
368-25 is created to serve a public use and benefit.
368-26 Sec. 265.007. BOARD OF DIRECTORS. (a) The authority is
369-1 governed by a board of five directors.
369-2 (b) The board shall appoint a person to fill a vacancy in
369-3 the office of director until the next election of directors. If
369-4 the position is not scheduled to be filled at the election, the
369-5 person elected to fill the position serves only for the remainder
369-6 of the unexpired term.
369-7 (c) To be eligible to serve as director, a person must be a
369-8 qualified voter in the voting district from which the person is
369-9 elected or appointed.
369-10 Sec. 265.008. METHOD OF ELECTION OF DIRECTORS. (a) One
369-11 director shall be elected from each of the five single-member
369-12 voting districts by the qualified voters of the voting district.
369-13 (b) A person shall indicate on the person's application for
369-14 a place on the ballot the voting district that the person seeks to
369-15 represent.
369-16 (c) In the manner described by Section 49.103(d), the board
369-17 shall redraw the single-member voting districts as soon as
369-18 practicable after:
369-19 (1) each federal census; and
369-20 (2) any change in the boundaries of the authority.
369-21 (d) At the first election after each time the voting
369-22 districts are redrawn:
369-23 (1) five new directors shall be elected to represent
369-24 the single-member voting districts; and
369-25 (2) the directors elected shall draw lots to determine
369-26 their terms so that:
370-1 (A) two directors serve two-year terms; and
370-2 (B) three directors serve four-year terms.
370-3 (e) Subchapter C, Chapter 146, Election Code, applies to the
370-4 consideration of votes for a write-in candidate for director as if
370-5 the authority were a municipality.
370-6 Sec. 265.009. SERVICE OF DIRECTORS. (a) The terms of the
370-7 initial permanent directors are determined by lot, with two
370-8 directors serving two-year terms and three directors serving
370-9 four-year terms.
370-10 (b) The initial permanent directors serve until permanent
370-11 directors are elected under Section 265.010.
370-12 (c) Permanent directors serve staggered four-year terms.
370-13 (d) A director serves until the director's successor has
370-14 qualified.
370-15 Sec. 265.010. ELECTION DATES. On the first uniform election
370-16 date of the calendar year in each even-numbered year, the
370-17 appropriate number of directors shall be elected to the board.
370-18 Sec. 265.011. MEETINGS AND ACTIONS OF BOARD. The board
370-19 shall meet at least four times each year and may meet at any other
370-20 time the board considers appropriate.
370-21 Sec. 265.012. GENERAL MANAGER. (a) The board shall employ
370-22 a general manager as the chief administrative officer of the
370-23 authority. The board may delegate to the general manager full
370-24 authority to manage and operate the affairs of the authority
370-25 subject only to the orders of the board.
370-26 (b) The duties of the general manager include:
371-1 (1) the administration of the orders of the board;
371-2 (2) coordination with state, federal, and local
371-3 agencies;
371-4 (3) the oversight of development of authority plans
371-5 and programs; and
371-6 (4) other duties assigned by the board.
371-7 (c) The board shall determine the terms of office and
371-8 employment of and the compensation to be paid to the general
371-9 manager. The general manager may be discharged by majority vote of
371-10 the board.
371-11 Sec. 265.013. EMPLOYEES; BONDS. (a) The general manager of
371-12 the authority shall employ all persons necessary for the proper
371-13 handling of the business and operations of the authority and may
371-14 employ attorneys, bookkeepers, engineers, and other expert and
371-15 specialized personnel the board considers necessary. The general
371-16 manager shall determine compensation to be paid by the authority.
371-17 (b) The general manager may discharge employees of the
371-18 authority.
371-19 (c) The general manager of the authority and each employee
371-20 or contractor of the authority who is charged with the collection,
371-21 custody, or payment of any money of the authority shall execute a
371-22 fidelity bond in an amount determined by the board and in a form
371-23 and with a surety approved by the board. The authority shall pay
371-24 for the bond.
371-25 Sec. 265.014. GENERAL POWERS AND DUTIES. (a) The authority
371-26 has all of the rights, powers, privileges, authority, functions,
372-1 and duties necessary and convenient to accomplish the purposes of
372-2 this chapter, including those provided by Chapter 49.
372-3 (b) The authority may:
372-4 (1) provide for the conservation, preservation,
372-5 protection, recharge, and prevention of waste of groundwater, and
372-6 for the reduction of groundwater withdrawals, in a manner
372-7 consistent with the purposes of Section 59, Article XVI, Texas
372-8 Constitution;
372-9 (2) for the purposes of reducing groundwater
372-10 withdrawals and subsidence, acquire or develop surface water and
372-11 groundwater supplies from sources inside or outside the boundaries
372-12 of the authority and may conserve, store, transport, treat, purify,
372-13 distribute, sell, and deliver water to persons, corporations,
372-14 municipal corporations, political subdivisions of the state, and
372-15 others, inside and outside the boundaries of the authority;
372-16 (3) enter into contracts with persons, including
372-17 political subdivisions of the state, on terms and conditions the
372-18 board considers desirable, fair, and advantageous for the
372-19 performance of the authority's rights, powers, and authority under
372-20 this chapter;
372-21 (4) coordinate water services provided inside,
372-22 outside, or into the authority; and
372-23 (5) administer and enforce the provisions of this
372-24 chapter.
372-25 (c) The authority's rights, powers, privileges, authority,
372-26 functions, and duties are subject to the continuing right of
373-1 supervision of the state, to be exercised by and through the
373-2 commission.
373-3 (d) The authority shall exercise its rights, powers,
373-4 privileges, and authority in a manner that will promote
373-5 regionalization of water treatment and distribution.
373-6 Sec. 265.015. AUTHORITY RULES. (a) The authority shall
373-7 adopt and enforce rules reasonably required to implement this
373-8 chapter, including rules governing procedures before the board.
373-9 (b) The board shall compile its rules in a book and make
373-10 them available for use and inspection at the authority's principal
373-11 office.
373-12 Sec. 265.016. FEES AND CHARGES. (a) The authority may
373-13 establish fees and charges as necessary to enable the authority to
373-14 fulfill the authority's regulatory obligations as provided by this
373-15 chapter.
373-16 (b) The authority may charge against the owner of a well
373-17 located in the authority's boundaries a fee on the amount of water
373-18 pumped from the well. The board shall set the rate of a fee under
373-19 this subsection only after a special meeting on the fee. The board
373-20 by rule may exempt classes of wells from the fee under this
373-21 subsection. The board may not apply the fee to a well that:
373-22 (1) has a casing diameter of less than five inches and
373-23 serves a single-family dwelling;
373-24 (2) is regulated under Chapter 27;
373-25 (3) is used for irrigation of agricultural crops;
373-26 (4) produces 10 million gallons or less annually; or
374-1 (5) is used solely for electric generation.
374-2 (c) Fees set by the board must be sufficient to:
374-3 (1) achieve water conservation, prevent waste of
374-4 water, serve as a disincentive to pumping groundwater, and
374-5 accomplish the purposes of this chapter, including making available
374-6 alternative water supplies; and
374-7 (2) enable the authority to meet operation and
374-8 maintenance expenses and pay the principal of and interest on debt
374-9 issued in connection with the exercise of the authority's general
374-10 powers and duties.
374-11 (d) The temporary board may set fees to pay for the initial
374-12 operation of the authority and the election of the initial
374-13 permanent board until the permanent board has been elected.
374-14 Sec. 265.017. CIVIL PENALTY; INJUNCTION. (a) A person who
374-15 violates a rule or order of the authority is subject to a civil
374-16 penalty of not less than $50 and not more than $5,000 for each
374-17 violation or each day of a continuing violation.
374-18 (b) The authority may bring an action to recover the penalty
374-19 in a district court in the county where the violation occurred.
374-20 The penalty shall be paid to the authority.
374-21 (c) The authority may bring an action for injunctive relief
374-22 in a district court in the county where a violation of an authority
374-23 rule or order occurs or is threatened to occur. The court may
374-24 grant to the authority, without bond or other undertaking, a
374-25 prohibitory or mandatory injunction that the facts warrant,
374-26 including a temporary restraining order, temporary injunction, or
375-1 permanent injunction.
375-2 (d) The authority may bring an action for a civil penalty
375-3 and injunctive relief in the same proceeding.
375-4 Sec. 265.018. WATER SUPPLY PLANS. The authority by rule
375-5 shall, as needed but not less frequently than every five years,
375-6 develop, prepare, revise, and adopt comprehensive water supply and
375-7 drought contingency plans for various areas of the authority. The
375-8 plans must:
375-9 (1) be consistent with regional planning; and
375-10 (2) include 10-year, 20-year, and 50-year projections
375-11 of water needs within the authority.
375-12 Sec. 265.019. ACQUISITION, CONSTRUCTION, AND OPERATION OF
375-13 SYSTEMS. (a) The authority may:
375-14 (1) acquire and provide by purchase, gift, or lease a
375-15 water treatment or water supply system inside or outside the
375-16 authority's boundaries;
375-17 (2) design, finance, or construct a water treatment or
375-18 water supply system and provide water services inside or outside
375-19 the authority's boundaries;
375-20 (3) operate, lease, or sell a water treatment or water
375-21 supply system the authority constructs or acquires; and
375-22 (4) contract with any person to operate or maintain a
375-23 water treatment or water supply system the person owns.
375-24 (b) The authority shall give persons outside the authority's
375-25 boundaries, including the City of Houston, the option to contract
375-26 for available excess capacity of the authority's water treatment or
376-1 water supply system or, before construction of a water treatment or
376-2 water supply system begins, for additional capacity of the system.
376-3 The authority must offer a contract that would enable the person to
376-4 pay for the excess capacity or additional capacity in accordance
376-5 with the person's pro rata share of the capital investment and
376-6 operational and maintenance costs for providing the excess capacity
376-7 or additional capacity.
376-8 Sec. 265.020. SALE OR REUSE OF WATER OR BY-PRODUCT. The
376-9 authority may store, sell, or reuse:
376-10 (1) water; or
376-11 (2) any by-product from the authority's operations.
376-12 Sec. 265.021. EMINENT DOMAIN. The authority may exercise
376-13 the power of eminent domain in the manner provided by Chapter 21,
376-14 Property Code, to acquire property of any kind to further
376-15 authorized purposes of the authority. The authority may not
376-16 exercise the power of eminent domain outside the boundaries of the
376-17 authority.
376-18 Sec. 265.022. CONTRACTS. (a) The authority may enter into
376-19 a contract with any person or legal entity regarding the
376-20 performance of any purpose or function of the authority, including
376-21 a contract to jointly construct, finance, own, or operate works,
376-22 improvements, facilities, plants, equipment, or appliances
376-23 necessary to accomplish a purpose or function of the authority. A
376-24 contract may be of unlimited duration.
376-25 (b) The authority may purchase an interest in a project used
376-26 for a purpose or function of the authority.
377-1 (c) The authority may contract for:
377-2 (1) the purchase or sale of water or water rights;
377-3 (2) the performance of activities within the powers of
377-4 the authority to promote the continuing and orderly development of
377-5 land and property in the authority through the purchase,
377-6 construction, or installation of works, improvements, facilities,
377-7 plants, equipment, or appliances so that, to the greatest extent
377-8 possible consistent with sound engineering practices and economic
377-9 feasibility, all the land and property in the authority may receive
377-10 services of the works, improvements, facilities, plants, equipment,
377-11 or appliances of the authority; or
377-12 (3) the construction, ownership, maintenance, or
377-13 operation of any works, improvements, facilities, plants,
377-14 equipment, or appliances of the authority or another person or
377-15 legal entity.
377-16 (d) The authority may purchase surplus property from the
377-17 state, the United States, or another public entity through a
377-18 negotiated contract without bids.
377-19 (e) An officer, agent, or employee of the authority who has
377-20 a financial interest in the contract of the type described by
377-21 Subsection (d) shall disclose the interest to the board before the
377-22 board votes on the acceptance of the contract.
377-23 Sec. 265.023. COOPERATION WITH AND ASSISTANCE OF OTHER
377-24 GOVERNMENTAL ENTITIES. (a) In implementing this chapter, the
377-25 board may cooperate with and request the assistance of the Texas
377-26 Water Development Board, the commission, the United States
378-1 Geological Survey, the subsidence district, other local
378-2 governments, and other agencies of the United States and the state.
378-3 (b) The subsidence district may enter into an interlocal
378-4 contract with the authority to carry out the authority's purposes
378-5 and may carry out the governmental functions and services specified
378-6 in the interlocal contract.
378-7 (c) The board shall coordinate with the City of Houston to
378-8 develop an interregional plan for a system to distribute treated
378-9 surface water in an economical and efficient manner.
378-10 Sec. 265.024. GIFTS AND GRANTS. The authority is authorized
378-11 to accept a gift or grant from money collected by the subsidence
378-12 district under Chapter 151 to fund a water treatment or water
378-13 supply system. The authorization provided by this section is in
378-14 addition to the authorization provided by Section 49.229.
378-15 Sec. 265.025. EXPENDITURES. (a) The authority's money may
378-16 be disbursed only by check, draft, order, or other instrument.
378-17 (b) Disbursements of the authority must be signed by at
378-18 least two directors, except that the board by resolution may allow
378-19 the general manager, treasurer, or bookkeeper or another employee
378-20 of the authority to sign disbursements.
378-21 (c) The board by resolution may allow disbursements to be
378-22 transferred by federal reserve wire system to accounts in the name
378-23 of the authority.
378-24 Sec. 265.026. TAXATION. The authority may not impose an ad
378-25 valorem tax.
378-26 Sec. 265.027. REVENUE NOTES. (a) The board, without an
379-1 election, may borrow money on negotiable notes of the authority to
379-2 be paid solely from the revenue derived from any legal source,
379-3 including:
379-4 (1) tolls, charges, and fees the authority imposes;
379-5 (2) the sale of water, water or sewer services, or any
379-6 other service or product of the authority;
379-7 (3) grants or gifts;
379-8 (4) the ownership and operation of all or a designated
379-9 part of the authority's works, improvements, facilities, plants, or
379-10 equipment; and
379-11 (5) contracts between the authority and any person,
379-12 including a local government.
379-13 (b) The notes may be first or subordinate lien notes at the
379-14 board's discretion. An obligation may not be a charge on the
379-15 property of the authority. An obligation may only be a charge on
379-16 revenue pledged for the payment of the obligation.
379-17 Sec. 265.028. BONDS. (a) To carry out a power or authority
379-18 conferred by this chapter, the authority may issue bonds secured by
379-19 all or part of the revenue derived from any source, including any
379-20 source described by Section 265.027(a).
379-21 (b) In issuing or securing a bond or note of the authority,
379-22 the authority may exercise any power of an issuer under Chapter
379-23 1371, Government Code.
379-24 (c) The authority may conduct a public, private, or
379-25 negotiated sale of the bonds.
379-26 (d) The authority's bonds must:
380-1 (1) be authorized by board resolution;
380-2 (2) be issued in the authority's name;
380-3 (3) be signed by the president or vice president of
380-4 the board, which may be accomplished by facsimile signature;
380-5 (4) be attested by the secretary of the board, which
380-6 may be accomplished by facsimile signature; and
380-7 (5) bear the authority's seal or facsimile seal.
380-8 (e) An authority bond may be secured by a trust indenture
380-9 with a corporate trustee.
380-10 (f) The authority may issue bonds in more than one series as
380-11 required for carrying out the purposes of this chapter. In issuing
380-12 bonds secured by revenue of the authority, the authority may
380-13 reserve the right to issue additional bonds secured by the
380-14 authority's revenue that are on a parity with or are senior or
380-15 subordinate to the bonds issued earlier.
380-16 (g) The resolution authorizing the bonds or the trust
380-17 indenture securing the bonds may specify additional provisions that
380-18 constitute a contract between the authority and its bondholders.
380-19 The board may provide:
380-20 (1) for additional bond provisions; and
380-21 (2) for a corporate trustee or receiver to take
380-22 possession of the authority's facilities if the authority defaults.
380-23 (h) Section 49.181 does not apply to bonds or notes issued
380-24 by the authority.
380-25 Sec. 265.029. REFUNDING BONDS. The provisions of this
380-26 chapter that apply to the authority's issuance of other bonds,
381-1 their security, and the remedies of the holders apply to refunding
381-2 bonds.
381-3 Sec. 265.030. APPROVAL AND REGISTRATION OF BONDS. After the
381-4 authority authorizes bonds, the authority shall submit the bonds
381-5 and the record relating to their issuance to the attorney general
381-6 for approval. If the bonds are secured by a pledge of the proceeds
381-7 of a contract between the authority and a municipality or other
381-8 governmental agency, authority, or district, the authority shall
381-9 submit to the attorney general a copy of the contract and the
381-10 proceedings of the municipality or other governmental agency,
381-11 authority, or district authorizing the contract. If the attorney
381-12 general finds that the bonds have been authorized and each contract
381-13 has been made in accordance with the constitution and laws of the
381-14 state, the attorney general shall approve the bonds and contracts.
381-15 On approval, the bonds shall be registered by the comptroller.
381-16 Sec. 265.031. FUNDING BY OTHER DISTRICTS. (a) The
381-17 authority shall develop a procedure for cooperatively funding a
381-18 project of the authority with money from other districts inside the
381-19 authority's boundaries if the authority project fulfills a
381-20 governmental purpose of both the authority and the other districts.
381-21 (b) Not later than the 90th day before the date the
381-22 authority issues bonds, other than refunding bonds, to finance a
381-23 project, the authority shall provide written notice of the
381-24 authority's intention to issue the bonds to each district inside
381-25 the authority's boundaries that may benefit from or be affected by
381-26 the project. The notice must include the value of the bonds to be
382-1 issued, a description of the project the bonds would finance, and a
382-2 schedule of the portion of the project costs financed by the bonds
382-3 that may be allocated to each district benefited or affected. The
382-4 schedule must be prepared by means of a formula certified by the
382-5 authority's engineer.
382-6 (c) A district may enter into a contract with the authority
382-7 for the district to finance a portion of the proposed project with
382-8 the district's resources instead of using proceeds from bonds of
382-9 the authority for that purpose. The contract must be executed
382-10 before the authority issues the bonds. As provided in the
382-11 contract, the authority must:
382-12 (1) reduce the value of the bond issuance to the
382-13 degree that the district provides project funding; and
382-14 (2) credit the district for its contribution to the
382-15 project financing and adjust the allocation of revenue pledged to
382-16 the payment of the bonds so that the authority avoids using, to a
382-17 degree commensurate with the contribution, revenue from the
382-18 district to service the authority's bond debt or interest.
382-19 CHAPTER 266. NORTH TEXAS MUNICIPAL WATER DISTRICT
382-20 Sec. 266.001. CREATION. (a) A conservation and reclamation
382-21 district to be known as the "North Texas Municipal Water District"
382-22 is created. The district is a governmental agency and a body
382-23 politic and corporate.
382-24 (b) The district is created under and is essential to
382-25 accomplish the purposes of Section 59, Article XVI, Texas
382-26 Constitution.
383-1 Sec. 266.002. DEFINITIONS. In this chapter:
383-2 (1) "Basic service area" means the geographic area
383-3 contained within the corporate limits of the member cities and
383-4 areas that are being served at the time of the creation of the
383-5 district or that may later be served by the member cities' primary
383-6 water system.
383-7 (2) "Board" means the board of directors of the
383-8 district.
383-9 (3) "Customer" means users of district water other
383-10 than member cities.
383-11 (4) "Director" means a member of the board.
383-12 (5) "District" means the North Texas Municipal Water
383-13 District and any other public body that succeeds to the property
383-14 and principal rights, powers, and obligations of the North Texas
383-15 Municipal Water District.
383-16 (6) "Enlarged Lavon water" means the water that the
383-17 district holds on May 5, 1969, or secures in the future, under or
383-18 through a permit from the commission to store and divert from Lavon
383-19 Lake on the East Fork of the Trinity River, as modified.
383-20 (7) "Interim basis" means only until such time as the
383-21 district needs the water for the use and benefit of its service
383-22 area, not permanently, but only during such times as a surplus of
383-23 dependable safe yield is present in each classification of water.
383-24 (8) "Member cities" means the cities of Garland,
383-25 Princeton, Plano, Mesquite, Wylie, Rockwall, Farmersville,
383-26 McKinney, Forney, Royse City, Allen, and Richardson and any other
384-1 city that may legally become a part of the district.
384-2 (9) "Original Lavon water" means the water for which
384-3 the district holds a permit from the commission to store and divert
384-4 from Lavon Lake on the East Fork of the Trinity River, as
384-5 originally constructed.
384-6 (10) "Other service area" means the geographic area in
384-7 the state that is outside the service area described by Subdivision
384-8 (14).
384-9 (11) "Other water" means any water that the district
384-10 secures under or through a permit from the commission or its
384-11 predecessor agency to store and divert, other than Lavon water or
384-12 enlarged Lavon water.
384-13 (12) "Primary right" means the superior right to
384-14 permanent water and to the quantity, quality, and price of the
384-15 water.
384-16 (13) "Prospective customer" means any person, firm,
384-17 corporation, company, partnership, association, or body corporate
384-18 or politic that evidences an interest in securing water from the
384-19 district.
384-20 (14) "Service area" means the geographic area
384-21 contained within the watershed of the East Fork of the Trinity
384-22 River, any area contained within the corporate limits of the member
384-23 cities, and the areas served by the member cities' water system.
384-24 Sec. 266.003. TERRITORY. (a) The district comprises all
384-25 the territory that was contained within the cities of Garland,
384-26 Princeton, Plano, Mesquite, Wylie, Rockwall, Farmersville,
385-1 McKinney, Forney, and Royse City on March 1, 1951, and any
385-2 territory annexed after that date. A defect in the definition of
385-3 the boundaries of any of those cities or in any past or future
385-4 proceedings for the annexation of territory to any of those cities
385-5 does not affect the validity of the district or any of its powers
385-6 or duties.
385-7 (b) The legislature finds and determines that all the land
385-8 included in the district will benefit from the improvements to be
385-9 acquired and constructed by the district.
385-10 Sec. 266.004. BOARD OF DIRECTORS. (a) All powers of the
385-11 district shall be exercised by a board of directors. The directors
385-12 shall be appointed by majority vote of the governing body of each
385-13 of the member cities contained in the district.
385-14 (b) In May of each year, the governing body of each member
385-15 city in the district with a population of 5,000 or more shall
385-16 appoint one director for a two-year term beginning June 1 of that
385-17 year.
385-18 (c) In May of each even-numbered year, the governing body of
385-19 each member city in the district with a population of less than
385-20 5,000 shall appoint one director for a two-year term beginning
385-21 June 1 of that year.
385-22 (d) Each director serves for a term of office as provided by
385-23 this section and until a successor is appointed and has qualified.
385-24 (e) A director must reside in and own taxable property in
385-25 the city from which the director is appointed. A member of a
385-26 governing body of a city or an employee of a city is not eligible
386-1 to serve as a director.
386-2 (f) A director shall subscribe the constitutional oath of
386-3 office and shall give bond for the faithful performance of the
386-4 director's duties in the amount of $5,000, the cost of which shall
386-5 be paid by the district.
386-6 (g) A majority of the members of the board constitutes a
386-7 quorum.
386-8 Sec. 266.005. DIRECTOR FEES. (a) Each director is entitled
386-9 to receive a fee of $50 for attending each meeting of the board and
386-10 $20 per day for each day devoted to the business of the district
386-11 other than attending board meetings, but not more than $1,200 shall
386-12 be paid to any director in one calendar year.
386-13 (b) Each director is entitled to reimbursement for actual
386-14 expenses incurred in attending to district business if the service
386-15 and expense are expressly approved by the board.
386-16 Sec. 266.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
386-17 shall elect from among its members a president and a vice president
386-18 of the district and other officers as the board considers
386-19 necessary.
386-20 (b) The president is the chief executive officer of the
386-21 district and the presiding officer of the board and has the same
386-22 right to vote as any other director.
386-23 (c) The vice president shall perform all duties and exercise
386-24 all powers conferred by this chapter on the president when the
386-25 president is absent or fails or declines to act.
386-26 (d) The board shall appoint a secretary and a treasurer, who
387-1 may or may not be members of the board, and may combine those
387-2 offices. The treasurer shall give bond in an amount required by
387-3 the board but not less than $100,000. The bond shall be
387-4 conditioned on the treasurer faithfully accounting for all money
387-5 that comes into the treasurer's custody as treasurer of the
387-6 district.
387-7 (e) The board shall appoint all necessary engineers,
387-8 attorneys, and other employees.
387-9 (f) The board shall adopt a seal for the district.
387-10 Sec. 266.007. ANNEXATION OF TERRITORY. (a) Other territory
387-11 may be annexed to the district as provided by this section.
387-12 (b) A petition for annexation must:
387-13 (1) be signed by 50 or a majority of the qualified
387-14 voters of the territory to be annexed who own taxable property in
387-15 the territory;
387-16 (2) be filed with the board; and
387-17 (3) describe the territory to be annexed by metes and
387-18 bounds or otherwise unless the territory is the same as that
387-19 contained in a city or town, in which case it will be sufficient to
387-20 state that the territory to be annexed is that contained within the
387-21 city or town.
387-22 (c) If the board finds that the petition complies with and
387-23 is signed by the number of qualified persons required under
387-24 Subsection (b), that the annexation would be in the interest of the
387-25 territory to be annexed and the district, and that the district
387-26 will be able to supply water to the territory to be annexed, the
388-1 board shall adopt a resolution stating the conditions, if any,
388-2 under which the territory may be annexed and requesting the
388-3 commission or its successor agency to annex the territory to the
388-4 district. A certified copy of the resolution and the petition
388-5 shall be filed with the commission.
388-6 (d) The commission shall adopt a resolution declaring its
388-7 intention to call an election in the territory to be annexed for
388-8 the purpose of submitting the proposition of whether the territory
388-9 shall be annexed to the district. The commission shall set a time
388-10 and place for a hearing to be held by the commission on the
388-11 question of whether the territory to be annexed will benefit from
388-12 the improvements, works, and facilities then owned or operated or
388-13 contemplated to be owned or operated by the district. Railroad
388-14 right-of-way or transmission lines and other property of electric
388-15 and gas utilities that are not situated within the defined limits
388-16 of an incorporated city or town will not benefit from the
388-17 improvements, works, and facilities that the district is authorized
388-18 to construct. Railroad right-of-way or transmission lines and
388-19 other property of electric and gas utilities may not be annexed to
388-20 the district unless the right-of-way and transmission lines and
388-21 other property of electric and gas utilities are contained within
388-22 the limits of an incorporated city or town that has been annexed to
388-23 the district.
388-24 (e) Notice of the adoption of the resolution stating the
388-25 time and place of the hearing addressed to the citizens and owners
388-26 of property in the territory to be annexed shall be published one
389-1 time in a newspaper designated by the commission at least 10 days
389-2 before the date of the hearing. The notice shall describe the
389-3 territory in the same manner as required or permitted by the
389-4 petition.
389-5 (f) All interested persons may appear at the hearing and
389-6 offer evidence for or against the intended annexation. The hearing
389-7 may proceed in the order and under the rules prescribed by the
389-8 commission and may be recessed from time to time. If, at the
389-9 conclusion of the hearing, the commission finds that all the lands
389-10 in the territory to be annexed will benefit from the present or
389-11 contemplated improvements, works, or facilities of the district,
389-12 the commission shall adopt a resolution calling an election in the
389-13 territory to be annexed, stating the date and the place or places
389-14 for holding the election, and appointing a presiding judge for each
389-15 voting place, who shall appoint the necessary assistant judges and
389-16 clerks to assist in holding the election.
389-17 (g) Notice of the election, stating the date and places for
389-18 holding the election, the proposition to be voted on, and the
389-19 conditions under which the territory may be annexed, or making
389-20 reference to the resolution of the board for that purpose, shall be
389-21 published one time in a newspaper designated by the commission at
389-22 least 10 days before the date set for the election.
389-23 (h) Only qualified electors who reside in the territory to
389-24 be annexed are qualified to vote in the election. Returns of the
389-25 election shall be made to the commission.
389-26 (i) The commission shall canvass the returns of the election
390-1 and adopt a resolution declaring the results. If the resolution
390-2 shows that a majority of the votes cast are in favor of annexation,
390-3 the commission shall enter an order annexing the territory to the
390-4 district, and the annexation shall be incontestable except in the
390-5 manner and within the time for contesting elections under the
390-6 Election Code. A certified copy of the order shall be recorded in
390-7 the deed records of the county in which the territory is situated.
390-8 (j) In calling the election on the proposition for the
390-9 annexation of territory, the commission may include as a part of
390-10 the same proposition a proposition for the assumption of that
390-11 territory's part of the tax-supported bonds of the district then
390-12 outstanding and those voted but not yet sold and for the levy of an
390-13 ad valorem tax on taxable property in the territory to be annexed
390-14 along with the tax in the rest of the district for the payment of
390-15 the bonds.
390-16 (k) After territory is added to the district, the board may
390-17 call an election over the entire district for the purpose of
390-18 determining whether the entire district as enlarged shall assume
390-19 the tax-supported bonds then outstanding and those voted but not
390-20 yet sold and whether an ad valorem tax shall be levied on all
390-21 taxable property within the district as enlarged for the payment of
390-22 the bonds, unless the proposition is voted along with the
390-23 annexation election and becomes lawfully binding on the territory
390-24 annexed. The election shall be called and held in the same manner
390-25 as elections for the issuance of bonds as provided by this chapter.
390-26 (l) If no newspaper is published in the territory to be
391-1 annexed, notices required by this section shall be posted in three
391-2 public places in the territory.
391-3 Sec. 266.008. APPOINTMENT OF DIRECTORS IN ANNEXED
391-4 TERRITORIES. (a) If the territory of a city with a population of
391-5 5,000 or more is annexed to the district, the governing body of the
391-6 city shall appoint one director for a term ending the following May
391-7 31 and one director for a term ending one year after the following
391-8 May 31. In May of each year, the governing body of the city shall
391-9 appoint one director for a two-year term as provided by this
391-10 chapter for cities originally included in the district.
391-11 (b) If a city whose territory is annexed to the district has
391-12 a population of less than 5,000, the governing body of the city
391-13 shall appoint one director whose term shall expire the following
391-14 May 31 and in May of each second year thereafter shall appoint one
391-15 director for a two-year term. If the city later attains a
391-16 population of 5,000 or more, it shall be entitled to two directors
391-17 to be appointed as provided by this section.
391-18 Sec. 266.009. USE OF CERTAIN WATERS AND FACILITIES.
391-19 (a) The district may acquire any and all rights in and to storage
391-20 and storage capacity in Lavon Lake as constructed at the time of
391-21 the creation of the district or later modified, and in any other
391-22 reservoir or from any other source, and the right to take water
391-23 from the reservoirs or other sources after obtaining a permit from
391-24 the commission, by complying with the provisions of this code that
391-25 are applicable to such rights and pursuant to any contract or
391-26 contracts the district may make with the United States government,
392-1 any of its agencies, or any other agency in reference to those
392-2 rights, and the district may develop or otherwise acquire, with the
392-3 consent of owners of surface, underground sources of water.
392-4 (b) The district may construct or otherwise acquire all
392-5 works, plants, and other facilities necessary or useful for the
392-6 purpose of storing, impounding, retaining, diverting, or processing
392-7 the water described by Subsection (a) and transporting it to cities
392-8 and other areas for municipal, domestic, and industrial purposes.
392-9 (c) To the extent permissible under a contract with the
392-10 United States government, any of its agencies, and any other
392-11 agency, the district may dispose of surplus water under its control
392-12 by contract with the commission or any other state or local agency
392-13 for irrigation or beneficial purposes.
392-14 (d) Any works for the diversion of water from the impounding
392-15 dams may not be constructed until the plans for the works are
392-16 approved by the commission. The district shall apply to and obtain
392-17 authority from the commission to appropriate the waters.
392-18 (e) The district may not be compelled to supply water for
392-19 use outside its service area except by order of the commission in
392-20 accordance with Section 11.041.
392-21 (f) The basic service area has the primary right to water in
392-22 each classification that the district secures under permit from the
392-23 commission.
392-24 (g) This chapter does not compel any customer or prospective
392-25 customer to secure water from the district except pursuant to
392-26 contracts voluntarily executed.
393-1 (h) This chapter does not alter any outstanding permit,
393-2 contract, or other obligation.
393-3 Sec. 266.010. EMINENT DOMAIN. (a) For the purpose of
393-4 carrying out any power or authority conferred by this chapter, the
393-5 district may acquire land and easements within and outside the
393-6 district, including land above the probable high-water line around
393-7 reservoirs, by condemnation in the manner provided by Chapter 21,
393-8 Property Code.
393-9 (b) The district is a municipal corporation within the
393-10 meaning of Section 21.021(c), Property Code.
393-11 (c) The amount and character of interest in land and
393-12 easements acquired under this section shall be determined by the
393-13 board.
393-14 (d) If the district, in the exercise of the power of eminent
393-15 domain or police power or any other power granted under this
393-16 chapter makes necessary the relocation, raising, lowering,
393-17 rerouting, changing the grade, or altering the construction of any
393-18 railroad, electric transmission, telegraph or telephone lines,
393-19 properties, and facilities, or pipeline, all such relocation,
393-20 raising, lowering, rerouting, changing of grade, or alteration of
393-21 construction shall be accomplished at the sole expense of the
393-22 district. In this subsection, "sole expense" means the actual cost
393-23 of the relocation, raising, lowering, rerouting, change in grade,
393-24 or alteration of construction in providing comparable replacement
393-25 without enhancement of the facilities, after deducting from the
393-26 cost the net salvage value of the old facility.
394-1 Sec. 266.011. NOTICE REQUIRED FOR CERTAIN CONTRACTS. (a) A
394-2 construction contract requiring an expenditure of more than $25,000
394-3 shall be made only after publication of a notice to bidders once
394-4 each week for two weeks before the awarding of the contract.
394-5 (b) The notice required under this section is sufficient if
394-6 it states the time and place at which the bids will be opened, the
394-7 general nature of the work to be done or the material, equipment,
394-8 or supplies to be purchased and states where and under what terms
394-9 copies of the plans and specifications may be obtained.
394-10 (c) The publication shall be in a newspaper published in the
394-11 district and designated by the board.
394-12 Sec. 266.012. BONDS. (a) For the purpose of providing a
394-13 source of water supply for cities and other users for municipal,
394-14 domestic, and industrial purposes as authorized by this chapter and
394-15 for the purpose of carrying out any other power or authority
394-16 conferred by this chapter, the district may issue negotiable bonds
394-17 payable from the revenues or taxes, or both revenues and taxes, of
394-18 the district as pledged by resolution of the board. Pending the
394-19 issuance of definitive bonds, the board may authorize the delivery
394-20 of negotiable interim bonds or notes that are eligible for exchange
394-21 or substitution by the definitive bonds.
394-22 (b) Bonds must be authorized by resolution of the board and
394-23 shall be issued in the name of the district, signed by the
394-24 president or vice president, and attested by the secretary and
394-25 shall bear the seal of the district.
394-26 (c) Bonds must mature serially or otherwise in not to exceed
395-1 40 years and may be sold at a price and under terms determined by
395-2 the board to be the most advantageous reasonably obtainable,
395-3 provided that the interest cost to the district, calculated by the
395-4 use of standard bond interest tables currently in use by insurance
395-5 companies and investment houses, does not exceed six percent per
395-6 year. Within the discretion of the board, bonds may be made
395-7 callable prior to maturity at times and prices prescribed in the
395-8 resolution authorizing the bonds and may be made registrable as to
395-9 principal or as to both principal and interest.
395-10 (d) Bonds may be issued in more than one series and from
395-11 time to time as required for carrying out the purposes of this
395-12 chapter.
395-13 (e) Bonds may be secured by a pledge of all or part of the
395-14 net revenues of the district, of the net revenues of one or more
395-15 contracts made before or after the bonds are issued, or of other
395-16 revenues specified by resolution of the board. A pledge may
395-17 reserve the right, under conditions specified in the pledge, to
395-18 issue additional bonds that will be on a parity with or subordinate
395-19 to the bonds being issued. In this subsection, "net revenues"
395-20 means the gross revenues of the district less the amount necessary
395-21 to pay the cost of maintaining and operating the district and its
395-22 properties.
395-23 (f) For the purposes stated in Subsection (a), the district
395-24 may issue bonds payable from ad valorem taxes to be levied on all
395-25 taxable property in the district or may issue bonds secured by and
395-26 payable from both the taxes and the revenues of the district,
396-1 subject to the conditions prescribed in Sections 266.015 (a), (b),
396-2 and (c). The board shall levy a tax sufficient to pay bonds issued
396-3 payable wholly or partially from ad valorem taxes and the interest
396-4 on the bonds as the bonds and interest become due. The rate of the
396-5 tax for any year may be set after giving consideration to the money
396-6 received from the pledged revenues available for payment of
396-7 principal and interest to the extent and in the manner permitted by
396-8 the resolution authorizing the issuance of the bonds.
396-9 (g) If bonds payable wholly from revenues are issued, the
396-10 board shall set, and from time to time revise, rates of
396-11 compensation for water sold and services rendered by the district
396-12 that will be sufficient to pay the expense of operating and
396-13 maintaining the facilities of the district and to pay bonds as they
396-14 mature and the interest as it accrues and to maintain the reserve
396-15 and other funds as provided in the resolution authorizing the
396-16 bonds. If bonds payable partially from revenues are issued, the
396-17 board shall set, and from time to time revise, rates of
396-18 compensation for water sold and services rendered by the district
396-19 that will be sufficient to assure compliance with the resolution
396-20 authorizing the bonds.
396-21 (h) From the proceeds of the sale of the bonds, the district
396-22 may set aside an amount for the payment of interest expected to
396-23 accrue during construction and for a reserve interest and sinking
396-24 fund, and the set-aside provision may be made in the resolution
396-25 authorizing the bonds. Proceeds from the sale of the bonds may
396-26 also be used for the payment of all expenses necessarily incurred
397-1 in accomplishing the purposes for which the district is created,
397-2 including expenses of issuing and selling the bonds.
397-3 (i) In the event of a default or a threatened default in the
397-4 payment of principal of or interest on bonds payable wholly or
397-5 partially from revenues of the district, any court of competent
397-6 jurisdiction may, on petition of the holders of 25 percent of the
397-7 outstanding bonds of the issue in default or threatened with
397-8 default, appoint a receiver with authority to collect and receive
397-9 all income of the district except taxes, employ and discharge
397-10 agents and employees of the district, take charge of the district's
397-11 funds on hand (except funds received from taxes, unless
397-12 commingled), and manage the proprietary affairs of the district
397-13 without consent or hindrance by the directors. The receiver may
397-14 also be authorized to sell or make contracts for the sale of water
397-15 or renew the contracts with the approval of the court appointing
397-16 the receiver. The court may vest the receiver with other powers
397-17 and duties that the court finds necessary for the protection of the
397-18 holders of the bonds.
397-19 Sec. 266.013. REFUNDING BONDS. (a) The district may issue
397-20 refunding bonds for the purpose of refunding any outstanding bonds
397-21 authorized by this chapter and interest on the bonds. Refunding
397-22 bonds may be issued to refund more than one series of outstanding
397-23 bonds and may combine the pledges for the outstanding bonds for the
397-24 security of the refunding bonds, and the refunding bonds may be
397-25 secured by other or additional revenues.
397-26 (b) The provisions of this chapter regarding the issuance by
398-1 the district of other bonds, their approval by the attorney
398-2 general, and the remedies of the holders are applicable to
398-3 refunding bonds. Refunding bonds shall be registered by the
398-4 comptroller on surrender and cancellation of the bonds to be
398-5 refunded, but in lieu of that process, the resolution authorizing
398-6 the issuance of the refunding bonds may provide that the refunding
398-7 bonds shall be sold and the proceeds of the sale deposited in the
398-8 bank where the original bonds are payable, in which case the
398-9 refunding bonds may be issued in an amount sufficient to pay the
398-10 interest on the original bonds to their option date or maturity
398-11 date, and the comptroller shall register the refunding bonds
398-12 without concurrent surrender and cancellation of the original
398-13 bonds.
398-14 Sec. 266.014. TRUST INDENTURE; DEED OF TRUST. (a) Bonds,
398-15 including refunding bonds, authorized by this chapter that are not
398-16 payable wholly from ad valorem taxes may be additionally secured by
398-17 a trust indenture under which the trustee may be a bank having
398-18 trust powers situated either within or outside the state. Bonds
398-19 may, in the discretion of the board, be additionally secured by a
398-20 deed of trust lien on physical properties of the district and all
398-21 franchises, easements, and water rights and appropriation permits,
398-22 leases, and contracts and all rights appurtenant to the properties,
398-23 vesting in the trustee power to sell the properties for payment of
398-24 the indebtedness, power to operate the properties, and all other
398-25 powers and authority for the further security of the bonds.
398-26 (b) The trust indenture, regardless of the existence of a
399-1 deed of trust lien, may contain any provisions prescribed by the
399-2 board for the security of the bonds and the preservation of the
399-3 trust estate and may make provision for amendment or modification
399-4 thereof and the issuance of bonds to replace lost or mutilated
399-5 bonds. A purchaser under a sale under the deed of trust lien,
399-6 where one is given, shall be the owner of the properties,
399-7 facilities, and rights purchased and shall have the right to
399-8 maintain and operate the properties, facilities, and rights.
399-9 Sec. 266.015. ELECTION FOR TAX FUNDED BONDS. (a) Bonds
399-10 payable wholly or partially from ad valorem taxes, except refunding
399-11 bonds, shall not be issued unless authorized by an election at
399-12 which only the qualified voters who reside in the district shall be
399-13 qualified to vote and unless a majority of the votes cast is in
399-14 favor of the issuance of the bonds.
399-15 (b) Before calling an election for the issuance of bonds
399-16 secured either wholly or partially by a pledge of ad valorem taxes,
399-17 the board shall publish, in the manner prescribed by this section,
399-18 a summary of the improvements to be financed with the proceeds of
399-19 the bonds to be issued. If the district has not provided
399-20 facilities for delivering water to a city within the district and
399-21 if the summary of improvements does not include provision for
399-22 delivering water to the city, the district shall publish in the
399-23 city notice of its intention, on a date specified in the notice, to
399-24 adopt a resolution ordering an election on the issuance of bonds
399-25 wholly or partly secured by a pledge of ad valorem taxes and
399-26 containing the summary of the proposed improvements. The notice
400-1 shall be published at least once in a newspaper published in or
400-2 having general circulation in the city. The date of publication
400-3 shall be at least 14 days before the date on which the district
400-4 intends to adopt a resolution ordering the election. The district
400-5 shall also mail a copy of the notice to the mayor of the city at
400-6 least 14 days before the date designated for ordering the election.
400-7 Before the date designated for ordering the election, the governing
400-8 body of the notified city may adopt a resolution stating that the
400-9 district has not provided facilities for delivering water to the
400-10 city and does not propose to provide the necessary facilities with
400-11 the proceeds from the proposed tax-supported bonds and on a
400-12 reasonable cost basis; stating that it is in the best interests of
400-13 the people of the city that the city be eliminated from the
400-14 district for all purposes; and seeking withdrawal from the
400-15 district. If, before the date designated for ordering the
400-16 election, a certified copy of the resolution is delivered to the
400-17 district and to the commission, the district shall not proceed with
400-18 the election until the commission has acted finally on the request
400-19 for withdrawal from the district.
400-20 (c) On receipt of the certified copy of the resolution from
400-21 a city requesting withdrawal from the district the commission shall
400-22 set a date for a hearing on the request, giving written notice of
400-23 the hearing to both the city and the district. If at the hearing
400-24 the commission finds that no facilities have been provided to the
400-25 city and that none will be provided from the proceeds of the
400-26 proposed tax-supported bonds for the delivery of water to the city
401-1 on a reasonable cost basis, the commission shall enter an order
401-2 eliminating the city from the district. In lieu of a hearing the
401-3 district may file with the commission a consent to the elimination
401-4 of the territory. However, if the commission finds that facilities
401-5 are available or will be provided from the proceeds of the proposed
401-6 bonds on a reasonable cost basis, the commission shall enter an
401-7 order denying the request for withdrawal. After the commission
401-8 enters the order, the district may order an election with the city
401-9 either eliminated or retained in the boundaries of the district as
401-10 prescribed in the order. Bonds not payable wholly or partially
401-11 from ad valorem taxes may be issued without an election.
401-12 (d) An election for the issuance of bonds payable wholly or
401-13 partially from ad valorem taxes may be called by the board without
401-14 a petition. The resolution calling the election shall specify the
401-15 time and places for holding the election, the purpose for which the
401-16 bonds are to be issued, the maximum amount of the bonds, the
401-17 maximum maturity of the bonds, the form of the ballot, and the
401-18 presiding judge for each voting place. The presiding judge serving
401-19 at each voting place shall appoint one assistant judge and at least
401-20 two clerks to assist in holding the election. Notice of the
401-21 election shall be given by publishing a substantial copy of the
401-22 resolution in one newspaper published in each city contained in the
401-23 district for two consecutive weeks. The first publication shall be
401-24 at least 21 days before the date of the election. If a newspaper
401-25 is not published in a city, notice shall be given by posting a copy
401-26 of the resolution in three public places.
402-1 (e) The returns of the election shall be made to and
402-2 canvassed by the board.
402-3 (f) The Election Code is applicable to elections held under
402-4 this section except as otherwise provided by this chapter.
402-5 Sec. 266.016. EXAMINATION BY ATTORNEY GENERAL. After any
402-6 bonds, including refunding bonds, are authorized by the district,
402-7 the bonds and the record relating to their issuance shall be
402-8 submitted to the attorney general for examination as to the
402-9 validity of the bonds. If the bonds recite that they are secured
402-10 by a pledge of the proceeds of a contract previously made between
402-11 the district and any city or other governmental agency or district,
402-12 a copy of the contract and the proceedings of the city or other
402-13 governmental agency or district authorizing the contract shall also
402-14 be submitted to the attorney general. If the bonds have been
402-15 authorized and the contracts have been made in accordance with the
402-16 constitution and laws of the state, the attorney general shall
402-17 approve the bonds and the contracts, and the bonds then shall be
402-18 registered by the comptroller. After approval and registration,
402-19 the bonds and the contracts, if any, are valid and binding and are
402-20 incontestable for any cause.
402-21 Sec. 266.017. CONTRACTS WITH CITIES AND OTHERS. The
402-22 district may enter into contracts with cities and others for
402-23 supplying water to them. The district may also contract with a
402-24 city for the rental or leasing of, or for the operation of, the
402-25 water production, water supply, and water filtration or
402-26 purification and water supply facilities of the city for such
403-1 consideration as the district and the city may agree. The contract
403-2 may be on such terms and for such period as the parties may agree
403-3 and may provide that it shall continue in effect until bonds
403-4 specified in the contract and refunding bonds issued in lieu of
403-5 such bonds are paid.
403-6 Sec. 266.018. DISTRICT DEPOSITORY. (a) The board shall
403-7 designate one or more banks within the district to serve as
403-8 depository for the funds of the district. All funds of the
403-9 district shall be deposited in the depository bank or banks, except
403-10 that funds pledged to pay bonds may be deposited with the trustee
403-11 bank named in the trust agreement and except that funds shall be
403-12 remitted to the bank of payment for the payment of principal of and
403-13 interest on bonds. To the extent that funds in the depository
403-14 banks and the trustee bank are not insured by the Federal Deposit
403-15 Insurance Corporation the funds shall be secured in the manner
403-16 provided by law for the security of county funds.
403-17 (b) Before designating a depository bank or banks, the board
403-18 shall issue a notice stating the time and place when and where the
403-19 board will meet to designate the depository or depositories and
403-20 inviting the banks in the district to submit applications to be
403-21 designated depositories. The notice shall be published one time in
403-22 a newspaper or newspapers published in the district and specified
403-23 by the board. The term of service for depositories shall be
403-24 prescribed by the board.
403-25 (c) At the time stated in the notice, the board shall
403-26 consider the applications and the management and condition of the
404-1 banks filing them and shall designate as depositories the bank or
404-2 banks which offer the most favorable terms and conditions for the
404-3 handling of the funds of the district and which the board finds
404-4 have proper management and are in condition to warrant handling of
404-5 district funds. Membership on the board of an officer or director
404-6 of a bank shall not disqualify the bank from being designated as a
404-7 depository.
404-8 (d) If no applications are received by the time stated in
404-9 the notice, the board shall designate a bank or banks within or
404-10 outside the district on terms and conditions it determines
404-11 advantageous to the district.
404-12 Sec. 266.019. WATER APPROPRIATION PERMITS; ACQUISITION OF
404-13 WATER. The district may acquire water appropriation permits
404-14 directly from the commission or from owners of permits. The
404-15 district may purchase water or a water supply from any person,
404-16 firm, corporation, or public agency or from the United States
404-17 government or any of its agencies.
404-18 Sec. 266.020. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
404-19 DEPOSITS. All bonds of the district are legal and authorized
404-20 investments for banks, savings banks, trust companies, building and
404-21 loan associations, savings and loan associations, and insurance
404-22 companies. The bonds are eligible to secure the deposit of all
404-23 public funds of the state and all public funds of cities, towns,
404-24 villages, counties, school districts, or other political
404-25 corporations or subdivisions of the state. The bonds are lawful
404-26 and sufficient security for such deposits to the extent of their
405-1 value when accompanied by all unmatured coupons.
405-2 Sec. 266.021. BONDS EXEMPT FROM TAXATION. The
405-3 accomplishment of the purposes stated in this chapter is for the
405-4 benefit of the people of this state and for the improvement of
405-5 their properties and industries, and the district, in carrying out
405-6 the purposes of this chapter, will be performing an essential
405-7 public function under Section 59, Article XVI, Texas Constitution.
405-8 The district shall not be required to pay any tax or assessment on
405-9 a project or any part of a project under this chapter, and the
405-10 bonds issued under this chapter and the transfer of and income from
405-11 the bonds, including profits made on the sale of the bonds, shall
405-12 at all times be free from taxation within the state.
405-13 Sec. 266.022. TAX ROLLS. (a) The tax rolls of the cities
405-14 situated within the district as created and within annexed
405-15 territory shall constitute the tax rolls of the district until
405-16 assessments and tax rolls are made by the district.
405-17 (b) Before the sale and delivery of district bonds that are
405-18 payable wholly or partially from ad valorem taxes, the board shall
405-19 appoint a tax assessor and collector and a board of equalization
405-20 and shall cause taxes to be assessed, valuations to be equalized,
405-21 and tax rolls to be prepared. General laws applicable to water
405-22 control and improvement districts with reference to tax assessors
405-23 and collectors, boards of equalization, tax rolls, and the levy and
405-24 collection of taxes and delinquent taxes shall be applicable to the
405-25 district, except that the board of equalization, which is to be
405-26 appointed each year by the board, shall consist of one member
406-1 residing in each city contained in the district.
406-2 Sec. 266.023. ADOPTION OF RULES AND REGULATIONS. (a) The
406-3 board may adopt and promulgate all reasonable rules and regulations
406-4 to secure, maintain, and preserve the sanitary condition of all
406-5 water in and to flow into any reservoir owned by the district, or
406-6 which it may control by contract or otherwise, to prevent the waste
406-7 or unauthorized use of water, and to regulate residence, hunting,
406-8 fishing, boating, and camping, and all recreational and business
406-9 privileges, along or around any reservoir or any body of land or
406-10 easement owned or controlled by the district.
406-11 (b) The district may prescribe a reasonable penalty for the
406-12 breach of a rule or regulation of the district, which penalty shall
406-13 not exceed a fine of more than $200 or imprisonment for not more
406-14 than 30 days, or both a fine and imprisonment. The penalty is in
406-15 addition to any other penalties provided by the laws of this state
406-16 and may be enforced by a complaint filed in the appropriate court
406-17 of jurisdiction. A rule or regulation that provides a penalty for
406-18 a violation of the rule or regulation is not effective or
406-19 enforceable unless the district has published a substantive
406-20 statement of the rule or regulation and the penalty for its
406-21 violation once a week for two consecutive weeks in the county in
406-22 which the reservoir is situated or in any county in which it is
406-23 partly situated. The substantive statement must be as condensed as
406-24 possible to afford sufficient notice of the act forbidden by the
406-25 rule or regulation. A single notice may embrace a number of rules
406-26 or regulations. The notice must state that breach of the rule or
407-1 regulation will subject the violator to the imposition of a
407-2 penalty. The notice must also state that the full text of the rule
407-3 or regulation is on file in the principal office of the district
407-4 and may be read by any interested person. Five days after the
407-5 second publication of the required notice, the rule or regulation
407-6 shall be in effect, and ignorance of the rule or regulation shall
407-7 not constitute a defense to a prosecution for the enforcement of a
407-8 penalty. After the required publication, the rules and regulations
407-9 authorized by this subsection shall judicially be known to the
407-10 courts and shall be considered similar in nature to a valid penal
407-11 ordinance of a city of the state.
407-12 (c) The district may employ and constitute its own peace
407-13 officers, and any such officer or any county peace officer may make
407-14 arrests when necessary to prevent or stop the commission of any
407-15 offense against the rules or regulations of the district or against
407-16 the laws of the state, when the offense or threatened offense
407-17 occurs on any land, water, or easement owned or controlled by the
407-18 district, or may make an arrest at any place in the case of an
407-19 offense involving injury or detriment to any property owned or
407-20 controlled by the district.
407-21 Sec. 266.024. PARKS AND RECREATION. The district may
407-22 establish or otherwise provide for public parks and recreation
407-23 facilities and may acquire land adjacent to any reservoir in which
407-24 the district owns water storage rights for such purposes; provided,
407-25 however, that no money received from taxation or from bonds payable
407-26 wholly or partially from taxation shall be used for such purpose.
408-1 Sec. 266.025. ADDITIONAL SPECIFIC POWERS. (a) In addition
408-2 to all other powers and for the conservation and development of the
408-3 natural resources of the state within the meaning of Section 59,
408-4 Article XVI, Texas Constitution, the district is authorized to
408-5 purchase, construct, acquire, own, operate, maintain, repair,
408-6 improve, or extend at any location inside and outside its
408-7 boundaries, in the sole discretion of the district, any and all
408-8 works, improvements, facilities, plants, equipment, and appliances
408-9 incident, helpful, or necessary to:
408-10 (1) provide, under the provisions of Chapters 11 and
408-11 12, for the control, storage, preservation, transmission,
408-12 treatment, and distribution and use of storm water and floodwater,
408-13 the water of rivers and streams, and groundwater for irrigation,
408-14 power, hydroelectric, and all other useful purposes and to supply
408-15 water for municipal, domestic, power, hydroelectric, industrial,
408-16 oil flooding, mining, and commercial uses and purposes and all
408-17 other beneficial uses and purposes; or
408-18 (2) collect, transport, process, treat, dispose of,
408-19 and control all municipal, domestic, industrial, or communal waste,
408-20 whether in fluid, solid, or composite state, including the control,
408-21 abatement, or reduction of all types of pollution.
408-22 (b) The district may adopt, enforce, and collect all
408-23 necessary charges, fees, or rentals for providing any district
408-24 facilities or service and may require a deposit for any service or
408-25 facilities furnished, and the district may or may not provide that
408-26 the deposit will bear interest. The district may discontinue a
409-1 facility or service to prevent an abuse or enforce payment of an
409-2 unpaid charge, fee, or rental due the district.
409-3 (c) Facilities acquired or constructed under this section
409-4 shall be separate and apart from, and shall not constitute a part
409-5 of, the district's water system established under the trust
409-6 indenture securing North Texas Municipal Water District Water
409-7 Revenue Bonds, Series 1954, dated September 1, 1954, and all
409-8 additional bonds issued under that trust indenture, as
409-9 supplemented. Bonds issued under this section shall not be issued
409-10 as additional bonds under that trust indenture, but shall be issued
409-11 strictly under this section.
409-12 Sec. 266.026. APPLICATION OF REGIONAL WASTE DISPOSAL ACT.
409-13 (a) The district is a "district" under Chapter 30, and all
409-14 provisions of that chapter apply to the district except to the
409-15 extent of any conflict with this chapter, in which case the
409-16 provisions of this chapter shall prevail.
409-17 (b) A city, public agency, or other political subdivision
409-18 may contract with the district in any manner authorized by Chapter
409-19 30, provided that any city is authorized to contract with the
409-20 district in the manner authorized by Section 30.030(c).
409-21 (c) The district and all cities, public agencies, and other
409-22 political subdivisions shall have all the rights, powers, and
409-23 authority with respect to the control, storage, preservation,
409-24 transmission, treatment, and disposition of storm water and
409-25 floodwater, the water of rivers and streams, and groundwater that
409-26 are granted, permitted, and authorized by Chapter 30 with respect
410-1 to waste, waste disposal systems, and treatment facilities.
410-2 Contracts made under this subsection are subject to the provisions
410-3 of Subsection (b).
410-4 (d) All cities, public agencies, and other political
410-5 subdivisions may set, charge, and collect fees, rates, charges,
410-6 rentals, and other amounts for any service or facilities provided
410-7 under or in connection with any contract with the district and to
410-8 pledge amounts sufficient to make all payments required under the
410-9 contract.
410-10 Sec. 266.027. BOND ISSUANCE FOR SPECIFIC PURPOSES. (a) For
410-11 the purpose of providing funds to acquire, purchase, construct,
410-12 improve, enlarge, and equip any property, buildings, structures, or
410-13 other facilities for any purpose or power authorized by Section
410-14 266.025 or 266.026, the board may issue revenue bonds from time to
410-15 time and in one or more issues or series. The bonds may be payable
410-16 from and secured by liens on and pledges of all or any part of the
410-17 revenues, income, or receipts derived by the district from its
410-18 ownership, operation, lease, or sale of the property, buildings,
410-19 structures, or facilities, including the proceeds or revenues from
410-20 contracts with any person, firm, corporation, city, public agency,
410-21 or other political subdivision. The bonds may be issued to mature
410-22 serially or otherwise within 50 years from their date, and
410-23 provision may be made for the subsequent issuance of additional
410-24 parity bonds or subordinate lien bonds under any terms or
410-25 conditions that may be set forth in the resolution authorizing the
410-26 issuance of the bonds.
411-1 (b) The bonds, and any interest coupons pertaining to the
411-2 bonds, are negotiable instruments within the meaning and for all
411-3 purposes of the Business & Commerce Code, provided that the bonds
411-4 may be issued registrable as to principal alone or as to both
411-5 principal and interest.
411-6 (c) The bonds must be executed and may be made redeemable
411-7 before maturity and may be issued in the form, denominations, and
411-8 manner and under the terms, conditions, and details, may be sold in
411-9 the manner, at the price, and under the terms, and must bear
411-10 interest at the rates determined and provided in the resolution
411-11 authorizing the issuance of the bonds. If the bond resolution so
411-12 provides, the proceeds from the sale of the bonds may be used for
411-13 paying interest on the bonds during the period of the acquisition
411-14 or construction of facilities to be provided through the issuance
411-15 of the bonds, for paying expenses of operation and maintenance of
411-16 facilities, for creating a reserve fund for the payment of the
411-17 principal of and interest on the bonds, and for creating any other
411-18 funds, and the proceeds may be placed on time deposit or invested
411-19 until needed, to the extent and in the manner provided in the bond
411-20 resolution.
411-21 (d) The district may pledge all or part of its revenues,
411-22 income, or receipts from fees, rentals, rates, charges, and
411-23 contract proceeds or payments to the payment of the bonds,
411-24 including the payment of principal, interest, and any other amounts
411-25 required or permitted in connection with the bonds. The pledged
411-26 fees, rentals, rates, charges, proceeds, or payments shall be set
412-1 and collected in amounts that will be at a minimum sufficient,
412-2 together with other pledged resources, to provide for all payments
412-3 of principal, interest, and other amounts required in connection
412-4 with the bonds and, to the extent required by the resolution
412-5 authorizing the issuance of the bonds, to provide for the payment
412-6 of expenses in connection with the bonds and for the operation,
412-7 maintenance, and other expenses in connection with the facilities.
412-8 (e) The bonds may be additionally secured by mortgages or
412-9 deeds of trust on real property owned or to be acquired by the
412-10 district and by chattel mortgages or liens on personal property
412-11 appurtenant to the real property, and the board may authorize the
412-12 execution of trust indentures, mortgages, deeds of trust, or other
412-13 forms of encumbrances to evidence same. The district may pledge to
412-14 the payment of the bonds all or any part of any grant, donation,
412-15 revenues, or income received from the United States government or
412-16 any other public or private source, whether under an agreement or
412-17 otherwise.
412-18 (f) Bonds issued under this section may be refunded or
412-19 otherwise refinanced by the issuance of refunding bonds for that
412-20 purpose, under the terms, conditions, and details determined by
412-21 resolution of the board. All pertinent and appropriate provisions
412-22 of this section apply to the refunding bonds, and they shall be
412-23 issued in the manner provided in this section for other bonds
412-24 authorized under this section. The refunding bonds may be sold and
412-25 delivered in amounts necessary to pay the principal, interest, and
412-26 redemption premium, if any, of bonds to be refunded, at maturity or
413-1 on any redemption date. The refunding bonds may be issued to be
413-2 exchanged for the bonds being refunded. In the latter case, the
413-3 comptroller shall register the refunding bonds and deliver the
413-4 bonds to the holder or holders of the bonds being refunded, in
413-5 accordance with the provisions of the resolution authorizing the
413-6 refunding bonds. The exchange may be made in one delivery or in
413-7 several installment deliveries. Bonds issued at any time by the
413-8 district may also be refunded in the manner provided by any other
413-9 applicable law.
413-10 Sec. 266.028. BOND APPROVAL AND REGISTRATION. Bonds issued
413-11 under Section 266.027 and the appropriate proceedings authorizing
413-12 their issuance shall be submitted to the attorney general for
413-13 examination. When the bonds are to be issued to finance in whole
413-14 or in part water-using facilities, except treatment or distribution
413-15 facilities, the attorney general, before granting approval, shall
413-16 be furnished a resolution from the commission certifying that the
413-17 district possesses the necessary water right authorizing it to
413-18 impound and appropriate the water to be used by the project. If
413-19 the bonds recite that they are secured by a pledge of revenues of a
413-20 contract, a copy of the contract and the proceedings relating to
413-21 the contract shall be submitted to the attorney general. If the
413-22 attorney general finds that the bonds have been authorized and the
413-23 contract has been made in accordance with law, the attorney general
413-24 shall approve the bonds and the contract and then the bonds shall
413-25 be registered by the comptroller.
413-26 (b) After the approval and registration, the bonds and the
414-1 contract, if any, are incontestable in any court or other forum for
414-2 any reason and are valid and binding obligations in accordance with
414-3 their terms for all purposes.
414-4 Sec. 266.029. ADDITIONAL PROVISIONS REGARDING BONDS ELIGIBLE
414-5 FOR INVESTMENT AND TO SECURE DEPOSITS. Bonds issued under Section
414-6 266.027 are legal and authorized investments for banks, trust
414-7 companies, building and loan associations, savings and loan
414-8 associations, insurance companies of all kinds and types, and
414-9 trustees and for all interest and sinking funds and other public
414-10 funds of the state and all agencies, subdivisions, and
414-11 instrumentalities of the state, including counties, cities, towns,
414-12 villages, school districts, and all other kinds and types of
414-13 districts, public agencies, and bodies politic. The bonds are
414-14 eligible and lawful security for all deposits of public funds of
414-15 the state and all agencies, subdivisions, and instrumentalities of
414-16 the state, including counties, cities, towns, villages, school
414-17 districts, and all other kinds and types of districts, public
414-18 agencies, and bodies politic, to the extent of the market value of
414-19 the bonds when accompanied by any unmatured interest coupons.
414-20 Sec. 266.030. SUFFICIENT SOURCE OF AUTHORITY. (a) The
414-21 provisions of Sections 266.025-266.029 are wholly sufficient
414-22 authority for the issuance of bonds, the execution of contracts,
414-23 and the performance by the district and all cities, public
414-24 agencies, and other political subdivisions of other acts and
414-25 procedures authorized by those provisions, without reference to any
414-26 other law or any restrictions or limitations contained in that law,
415-1 except as specifically provided in this chapter. To the extent of
415-2 any conflict or inconsistency between provisions of this section
415-3 and any other provision of law, this section and Sections
415-4 266.025-266.029 shall prevail and control; provided, however, that
415-5 the district and all cities, public agencies, and other political
415-6 subdivisions may use the provisions of any other laws not in
415-7 conflict with this section to the extent convenient or necessary to
415-8 carry out any power or authority, express or implied, granted by
415-9 those sections.
415-10 (b) This chapter does not compel any city, customer, or
415-11 prospective customer to secure water, sewer service, or any other
415-12 service from the district except under contracts voluntarily
415-13 executed.
415-14 Sec. 266.031. COMPLIANCE REQUIRED. Nothing in this chapter
415-15 shall relieve the district from compliance with the provisions of
415-16 Chapters 11, 12, and 49.
415-17 CHAPTER 267. NORTHEAST TEXAS MUNICIPAL WATER DISTRICT
415-18 Sec. 267.001. CREATION. (a) A conservation and reclamation
415-19 district to be known as the "Northeast Texas Municipal Water
415-20 District" is created. The district is a governmental agency and a
415-21 body politic and corporate.
415-22 (b) The district is created under and is essential to
415-23 accomplish the purposes of Section 59, Article XVI, Texas
415-24 Constitution.
415-25 Sec. 267.002. DEFINITIONS. In this chapter:
415-26 (1) "Board" means the board of directors for the
416-1 district.
416-2 (2) "Director" means a member of the board.
416-3 (3) "District" means the Northeast Texas Municipal
416-4 Water District.
416-5 Sec. 267.003. BOUNDARIES. (a) The district comprises all
416-6 the territory that was contained within the cities of Mt. Pleasant,
416-7 Jefferson, Avinger, Hughes Springs, Lone Star, Ore City, Pittsburg,
416-8 Marshall, and Daingerfield on March 1, 1953. A defect in the
416-9 definition of the boundaries of any of those cities or in any past
416-10 or future proceedings for the annexation of territory to any of
416-11 those cities does not affect the validity of the district or any of
416-12 its powers or duties.
416-13 (b) The legislature finds that all the land included in the
416-14 district will benefit from the improvements to be acquired and
416-15 constructed by the district.
416-16 Sec. 267.004. BOARD OF DIRECTORS. (a) All powers of the
416-17 district shall be exercised by a board of directors. The directors
416-18 shall be appointed by a majority vote of the governing body of each
416-19 of the cities contained in the district.
416-20 (b) In appointing the first directors for a city with a
416-21 population of 5,000 or more, the governing body of the city shall
416-22 appoint one director for a term ending the following May 31 and one
416-23 director for a term ending one year after the following May 31. In
416-24 appointing subsequent directors, the governing body of each city
416-25 shall appoint in May of each year one director for a two-year term
416-26 beginning on June 1 of that year.
417-1 (c) In appointing the first director for a city with a
417-2 population of less than 5,000, the governing body of the city shall
417-3 appoint one director for a term ending the next May 31 of an
417-4 even-numbered year. In appointing subsequent directors, the
417-5 governing body shall appoint in May of each even-numbered year one
417-6 director for a two-year term beginning on June 1 of that year.
417-7 (d) Each director serves for a term of office as provided by
417-8 this section and until a successor is appointed and has qualified.
417-9 (e) A director must reside in and own taxable property in
417-10 the city from which the director is appointed. A member of a
417-11 governing body of a city or an employee of a city is not eligible
417-12 to serve as a director.
417-13 (f) A director shall subscribe the constitutional oath of
417-14 office and shall give bond for the faithful performance of the
417-15 director's duties in the amount of $5,000, the cost of which shall
417-16 be paid by the district.
417-17 (g) A majority of the members of the board constitutes a
417-18 quorum.
417-19 Sec. 267.005. DIRECTOR FEES. (a) Each director is entitled
417-20 to receive a fee of $50 for attending each meeting of the board,
417-21 provided, however, that not more than three meetings shall be held
417-22 in any one calendar month.
417-23 (b) A director is entitled to receive a fee of $50 per day
417-24 for each day devoted to the business of the district and to
417-25 reimbursement for actual expenses incurred in attending to district
417-26 business if such service and expense are expressly approved by the
418-1 board.
418-2 Sec. 267.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
418-3 shall elect from among its members a president and a vice president
418-4 of the district and other officers the board considers necessary.
418-5 (b) The president is the chief executive officer of the
418-6 district and the presiding officer of the board and has the same
418-7 right to vote as any other director.
418-8 (c) The vice president shall perform all duties and exercise
418-9 all powers conferred by this chapter on the president when the
418-10 president is absent or fails or declines to act.
418-11 (d) The board shall appoint a secretary and a treasurer, who
418-12 may or may not be members of the board, and may combine those
418-13 offices. The treasurer shall give bond in an amount required by
418-14 the board, but in no event less than $100,000. The bond must be
418-15 conditioned on the treasurer's accounting for all money that comes
418-16 into the treasurer's custody as treasurer of the district. Until
418-17 the district authorizes the issuance of bonds, the amount of the
418-18 official bond of the treasurer may be fixed by the board in any
418-19 amount not less than $5,000.
418-20 (e) The board shall appoint all necessary engineers,
418-21 attorneys, and other employees.
418-22 (f) The board shall adopt a seal for the district.
418-23 Sec. 267.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
418-24 (a) Other territory in Titus, Marion, Cass, Morris, Harrison,
418-25 Upshur, and Camp counties may be annexed to the district as
418-26 provided by this section.
419-1 (b) A petition for annexation must:
419-2 (1) be signed by 50 or a majority of the qualified
419-3 voters of the territory to be annexed who own taxable property in
419-4 the territory and who have duly rendered the property to the city,
419-5 if situated within a city or town, or county for taxation;
419-6 (2) be filed with the board; and
419-7 (3) describe the territory to be annexed by metes and
419-8 bounds or otherwise unless the territory is the same as that
419-9 contained in a city or town, in which event it shall be sufficient
419-10 to state that the territory to be annexed is that which is
419-11 contained within the city or town.
419-12 (c) If the board finds that the petition complies with and
419-13 is signed by the number of qualified persons required under
419-14 Subsection (b), that the annexation would be in the interest of the
419-15 territory to be annexed and the district, and that the district
419-16 will be able to supply water to the territory to be annexed, the
419-17 board shall adopt a resolution stating the conditions, if any,
419-18 under which territory may be annexed to the district and requesting
419-19 the commission to annex the territory to the district. A certified
419-20 copy of the resolution and of the petition shall be filed with the
419-21 commission.
419-22 (d) The commission shall adopt a resolution declaring its
419-23 intention to call an election in the territory to be annexed for
419-24 the purpose of submitting the proposition of whether or not the
419-25 territory shall be annexed to the district. The commission shall
419-26 set a time and place for a hearing to be held by the commission on
420-1 the question of whether the territory to be annexed will benefit
420-2 from the improvements, works, and facilities then owned or operated
420-3 or contemplated to be owned or operated by the district. A
420-4 railroad right-of-way that is not situated within the defined
420-5 limits of an incorporated city or town will not benefit from the
420-6 improvements, works, and facilities that the district is authorized
420-7 to construct. A railroad right-of-way may not be annexed to the
420-8 district unless the right-of-way is contained within the limits of
420-9 an incorporated city or town that has been annexed to the district.
420-10 (e) Notice of the adoption of the resolution stating the
420-11 time and place of the hearing and addressed to the citizens and
420-12 owners of property in the territory to be annexed shall be
420-13 published one time in a newspaper published within or having
420-14 general circulation within the territory to be annexed, as
420-15 designated by the commission, at least 10 days before the date of
420-16 the hearing. The notice must describe the territory to be annexed
420-17 in the same manner as required or permitted by the petition.
420-18 (f) All interested persons may appear at the hearing and
420-19 offer evidence for or against the intended annexation. The hearing
420-20 may proceed in the order and under the rules prescribed by the
420-21 commission and may be recessed from time to time. If, at the
420-22 conclusion of the hearing, the commission finds that all of the
420-23 lands in the territory to be annexed will benefit from the present
420-24 or contemplated improvements, works, or facilities of the district,
420-25 the commission shall adopt a resolution calling an election in the
420-26 territory to be annexed, stating the date and place or places for
421-1 holding the election and appointing a presiding judge for each
421-2 voting place who shall appoint the necessary assistant judges and
421-3 clerks to assist in holding the election.
421-4 (g) Notice of the election, stating the date of and places
421-5 for holding the election, the proposition to be voted on, and the
421-6 conditions under which the territory may be annexed, or making
421-7 reference to the resolution of the board for that purpose, shall be
421-8 published one time in a newspaper designated by the commission at
421-9 least 10 days before the date set for the election. If the
421-10 newspaper carrying the notice is not published within the territory
421-11 to be annexed, additional notice shall be given for the required
421-12 period by posting copies of the notice of the election at three
421-13 public places in the territory.
421-14 (h) Only qualified electors who reside in the territory to
421-15 be annexed may vote in the election. Returns of the election shall
421-16 be made to the commission.
421-17 (i) The commission shall canvass the returns of the election
421-18 and adopt a resolution declaring the results. If the resolution
421-19 shows that a majority of the votes cast are in favor of annexation,
421-20 the commission shall enter an order annexing the territory to the
421-21 district, and the annexation is incontestable except in the manner
421-22 and within the time for contesting elections under the Election
421-23 Code. A certified copy of the order shall be recorded in the deed
421-24 records of the county in which the territory is situated.
421-25 (j) The commission, in calling the election on the
421-26 proposition for annexation of territory, may include as a part of
422-1 the same proposition a proposition for the assumption of the
422-2 territory's part of the tax-supported bonds of the district then
422-3 outstanding and those voted but not yet sold and for the levy of an
422-4 ad valorem tax on taxable property in the territory to be annexed
422-5 along with the tax in the rest of the district for the payment of
422-6 the bonds.
422-7 (k) After territory is added to the district, the board may
422-8 call an election over the entire district for the purpose of
422-9 determining whether the district as enlarged shall assume the
422-10 tax-supported bonds, if any, then outstanding and those voted but
422-11 not yet sold and whether an ad valorem tax shall be levied on all
422-12 taxable property within the district as enlarged for the payment of
422-13 the bonds, unless the proposition is voted along with the
422-14 annexation election and becomes lawfully binding on the territory
422-15 annexed. The election shall be called and held in the same manner
422-16 as elections for the issuance of bonds as provided by this chapter.
422-17 (l) If no newspaper is published in the territory to be
422-18 annexed, the notices required by this section shall be posted in
422-19 three public places in the territory.
422-20 Sec. 267.008. APPOINTMENT OF DIRECTORS IN ANNEXED
422-21 TERRITORIES. (a) When any city, the territory of which is annexed
422-22 to the district, has a population of 5,000 or more, the governing
422-23 body of the city shall appoint one director for a term ending the
422-24 following May 31 and one director for a term ending one year after
422-25 the following May 31. In May of each year the governing body of
422-26 the city shall appoint one director for a two-year term as provided
423-1 by this chapter for cities originally included in the district.
423-2 (b) If a city, the territory of which is annexed to the
423-3 district, has a population of less than 5,000, the governing body
423-4 of the city shall appoint one director whose term shall expire the
423-5 following May 31 and in May of each second year thereafter shall
423-6 appoint one director for a two-year term.
423-7 (c) If a city initially subject to Subsection (b) later has
423-8 a population of 5,000 or more, it shall be entitled to two
423-9 directors to be appointed as provided by Subsection (a).
423-10 Sec. 267.009. USE OF CERTAIN WATERS AND FACILITIES.
423-11 (a) The district may acquire:
423-12 (1) any and all rights to storage and storage capacity
423-13 in the reservoir formed by Ferrell's Bridge Dam; and
423-14 (2) the right to take water from the reservoir in
423-15 which the dam will impound certain storm waters and floodwaters and
423-16 the unappropriated flow of Cypress Creek and its tributaries by
423-17 complying with the applicable provisions of this code and pursuant
423-18 to any contracts that the district may make with the United States
423-19 government in reference to those rights.
423-20 (b) The district may construct or otherwise acquire all
423-21 works, plants, and other facilities necessary or useful for the
423-22 purpose of diverting, further impounding, or storing the water
423-23 described by Subsection (a), processing the water, and transporting
423-24 it to cities and others for municipal, domestic, and industrial
423-25 purposes.
423-26 (c) To the extent permissible under the contract with the
424-1 United States government and its agencies, the district may dispose
424-2 of surplus waters under its control for irrigation purposes.
424-3 (d) Any works for the diverting of water from the impounding
424-4 dam may not be constructed until the plans for the works are
424-5 approved by the commission.
424-6 (e) None of the powers granted by this section extend
424-7 outside of Titus, Marion, Cass, Morris, Harrison, Upshur, and Camp
424-8 counties.
424-9 Sec. 267.010. SEWAGE FACILITIES. As a proper aid to the
424-10 conservation, control, preservation, and distribution of the water
424-11 described by Section 267.009 for beneficial uses, the district may
424-12 construct, own, and operate sewage gathering, transmission,
424-13 treatment, and disposal facilities within the counties designated
424-14 in Section 267.009, charge for services rendered by the facilities,
424-15 and make contracts in reference to the facilities with
424-16 municipalities and others.
424-17 Sec. 267.011. DAMS AND RESERVOIRS. (a) The district may
424-18 construct and operate one or more impounding dams and reservoirs
424-19 within the territorial limits prescribed in Section 267.009.
424-20 (b) A dam or reservoir may not be constructed until a permit
424-21 is procured from and the plans are approved by the commission.
424-22 (c) The district may enter into contracts with individuals
424-23 and public or private corporations for supplying water from such
424-24 source, either at the reservoir or delivered to the purchasers.
424-25 (d) The district may use and pledge the net revenues from a
424-26 contract described by this section in connection with the issuance
425-1 of its bonds in accordance with Section 267.015.
425-2 Sec. 267.012. APPLICATION OF CERTAIN PROVISIONS. The
425-3 provisions of Section 267.013(e), under which the district is
425-4 required to accomplish at its sole expense the relocation, raising,
425-5 rerouting, changing the grade, or altering the construction of any
425-6 highway, railroad, electric transmission line, or pipeline, are
425-7 applicable to any work done by the district under authority of this
425-8 chapter.
425-9 Sec. 267.013. EMINENT DOMAIN. (a) For the purpose of
425-10 carrying out any power or authority conferred by this chapter the
425-11 district may acquire land and easements within and outside the
425-12 district in Titus, Marion, Cass, Morris, Harrison, Upshur, and Camp
425-13 counties, including land above the probable high-water line around
425-14 any impounding or diversion reservoir, by condemnation in the
425-15 manner provided by Chapter 21, Property Code.
425-16 (b) The district is a municipal corporation within the
425-17 meaning of Section 21.021(c), Property Code.
425-18 (c) Except as provided by Subsection (d), the amount of and
425-19 character of interest in land and easements acquired under this
425-20 section shall be determined by the board.
425-21 (d) The district may condemn only an easement against
425-22 persons, firms, and corporations, or their receivers or trustees,
425-23 who have the power of eminent domain, and the fee title may not be
425-24 condemned.
425-25 (e) If the district, in the exercise of the power of eminent
425-26 domain or power of relocation or any other power granted under this
426-1 chapter, makes necessary the relocation, raising, rerouting,
426-2 changing the grade, or altering the construction of any highway,
426-3 railroad, electric transmission line, or pipeline, all such
426-4 necessary relocation, raising, rerouting, changing the grade, or
426-5 alteration of construction shall be accomplished at the sole
426-6 expense of the district.
426-7 Sec. 267.014. NOTICE REQUIRED FOR CERTAIN CONTRACTS. (a) A
426-8 construction contract requiring an expenditure of more than $25,000
426-9 may be made only after publication of a notice to bidders once each
426-10 week for two weeks before the awarding of the contract.
426-11 (b) The notice required under this section is sufficient if
426-12 it states the time and place at which the bids will be opened and
426-13 the general nature of the work to be done or the material,
426-14 equipment, or supplies to be purchased and states where and under
426-15 what terms copies of the plans and specifications may be obtained.
426-16 (c) The publication shall be in a newspaper published in the
426-17 district and designated by the board.
426-18 Sec. 267.015. BONDS. (a) For the purpose of providing a
426-19 source of water supply for cities and other users for municipal,
426-20 domestic, and industrial purposes as authorized by this chapter and
426-21 for the purpose of carrying out any other power or authority
426-22 conferred by this chapter, the district may issue negotiable bonds
426-23 payable from the revenues or taxes, or both revenues and taxes, of
426-24 the district as pledged by resolution of the board. Pending the
426-25 issuance of definitive bonds, the board may authorize the delivery
426-26 of negotiable interim bonds or notes that are eligible for exchange
427-1 or substitution by the definitive bonds.
427-2 (b) Bonds must be authorized by resolution of the board and
427-3 must be issued in the name of the district, signed by the president
427-4 or vice president, and attested by the secretary and have the seal
427-5 of the district impressed on the bonds.
427-6 (c) Bonds must mature serially or otherwise in not to exceed
427-7 40 years and may be sold at a price and under terms determined by
427-8 the board to be the most advantageous reasonably obtainable,
427-9 provided that the interest cost to the district, calculated by use
427-10 of standard bond interest tables currently in use by insurance
427-11 companies and investment houses, does not exceed six percent per
427-12 year. Within the discretion of the board, bonds may be made
427-13 callable prior to maturity at times and prices prescribed in the
427-14 resolution authorizing the bonds and may be made registrable as to
427-15 principal or as to both principal and interest.
427-16 (d) Bonds may be issued in more than one series and from
427-17 time to time as required for carrying out the purposes of this
427-18 chapter.
427-19 (e) Bonds may be secured by a pledge of all or part of the
427-20 net revenues of the district, of the net revenues of one or more
427-21 contracts made before or after the bonds are issued, or of other
427-22 revenues specified by resolution of the board. A pledge may
427-23 reserve the right, under conditions specified in the pledge, to
427-24 issue additional bonds which will be on a parity with or
427-25 subordinate to the bonds being issued. In this subsection, "net
427-26 revenues" means the gross revenues of the district less the amount
428-1 necessary to pay the cost of maintaining and operating the district
428-2 and its properties.
428-3 (f) For the purposes stated in Subsection (a), the district
428-4 may issue bonds payable from ad valorem taxes to be levied on all
428-5 taxable property in the district or may issue bonds secured by and
428-6 payable from both the taxes and the revenues of the district,
428-7 subject to the conditions prescribed in Section 267.018(a). The
428-8 board shall levy a tax sufficient to pay bonds issued payable
428-9 wholly or partially from ad valorem taxes and the interest on the
428-10 bonds as the bonds and interest become due. The rate of the tax
428-11 for any year may be set after giving consideration to the money
428-12 received from the pledged revenues available for payment of
428-13 principal and interest to the extent and in the manner permitted by
428-14 the resolution authorizing the issuance of the bonds.
428-15 (g) If bonds payable wholly from revenues are issued, the
428-16 board shall set and from time to time revise rates of compensation
428-17 for water sold and services rendered by the district that will be
428-18 sufficient to pay the expense of operating and maintaining the
428-19 facilities of the district, to pay bonds as they mature and the
428-20 interest as it accrues, and to maintain the reserve and other funds
428-21 as provided in the resolution authorizing the bonds. If bonds
428-22 payable partially from revenues are issued, the board shall set and
428-23 from time to time revise rates of compensation for water sold and
428-24 services rendered by the district that will be sufficient to assure
428-25 compliance with the resolution authorizing the bonds.
428-26 (h) From the proceeds of the sale of the bonds, the district
429-1 may set aside an amount for the payment of interest expected to
429-2 accrue during construction and for a reserve interest and sinking
429-3 fund, and the set-aside provision may be made in the resolution
429-4 authorizing the bonds. Proceeds from the sale of the bonds may
429-5 also be used for the payment of all expenses necessarily incurred
429-6 in accomplishing the purposes for which the district is created,
429-7 including expenses of issuing and selling the bonds and the expense
429-8 of creating and organizing the district.
429-9 (i) The district may invest all or any part of the proceeds
429-10 of the bonds before and during the period of construction in
429-11 obligations of or in obligations unconditionally guaranteed by the
429-12 United States government.
429-13 (j) In the event of a default or a threatened default in the
429-14 payment of principal of or interest on bonds payable wholly or
429-15 partially from revenues of the district, any court of competent
429-16 jurisdiction may, on petition of the holders of 25 percent of the
429-17 outstanding bonds of the issue in default or threatened with
429-18 default, appoint a receiver with authority to collect and receive
429-19 all income of the district except income from taxes, employ and
429-20 discharge agents and employees of the district, take charge of the
429-21 district's funds on hand (except funds received from taxes, unless
429-22 commingled), and manage the proprietary affairs of the district
429-23 without consent or hindrance by the board. The receiver may also
429-24 be authorized to sell or make contracts for the sale of water or
429-25 renew the contracts with the approval of the court appointing the
429-26 receiver. The court may vest the receiver with other powers and
430-1 duties the court finds necessary for the protection of the holders
430-2 of the bonds.
430-3 Sec. 267.016. REFUNDING BONDS. (a) The district may issue
430-4 refunding bonds for the purpose of refunding any outstanding bonds
430-5 authorized by this chapter and interest on the bonds. The
430-6 refunding bonds may be issued to refund more than one series of
430-7 outstanding bonds and may combine the pledges for the outstanding
430-8 bonds for the security of the refunding bonds, and the refunding
430-9 bonds may be secured by other or additional revenues.
430-10 (b) The provisions of this chapter with reference to the
430-11 issuance by the district of other bonds, the approval of the bonds
430-12 by the attorney general, and the remedies of the holders of the
430-13 bonds are applicable to refunding bonds. Refunding bonds shall be
430-14 registered by the comptroller on surrender and cancellation of the
430-15 bonds to be refunded, but in lieu of that process, the resolution
430-16 authorizing the issuance of the refunding bonds may provide that
430-17 the refunding bonds shall be sold and the proceeds of the sale
430-18 deposited in the bank where the original bonds are payable, in
430-19 which case the refunding bonds may be issued in an amount
430-20 sufficient to pay the interest on the original bonds to their
430-21 option date or maturity date, and the comptroller shall register
430-22 the refunding bonds without concurrent surrender and cancellation
430-23 of the original bonds.
430-24 Sec. 267.017. TRUST INDENTURE FOR BONDS. (a) Any bonds,
430-25 including refunding bonds, authorized by this chapter that are not
430-26 payable wholly from ad valorem taxes may be additionally secured by
431-1 a trust indenture under which the trustee may be a bank having
431-2 trust powers located either within or outside the state. The bonds
431-3 may, in the discretion of the board, be additionally secured by a
431-4 deed of trust lien on physical properties of the district and all
431-5 franchises, easements, water rights and appropriation permits,
431-6 leases, and contracts and all rights pertaining to the properties,
431-7 vesting in the trustee power to sell the properties for payment of
431-8 the indebtedness, power to operate the properties, and all other
431-9 powers and authority for the further security of the bonds.
431-10 (b) The trust indenture, regardless of the existence of the
431-11 deed of trust lien, may contain any provisions prescribed by the
431-12 board for the security of the bonds and the preservation of the
431-13 trust estate and may make provision for amendment or modification
431-14 of the trust indenture and the issuance of bonds to replace lost or
431-15 mutilated bonds.
431-16 (c) A purchaser under a sale under a deed of trust lien,
431-17 where one is given, shall be the owner of the properties,
431-18 facilities, and rights purchased and shall have the right to
431-19 maintain and operate the properties, facilities, and rights.
431-20 Sec. 267.018. BOND ELECTIONS. (a) Bonds payable wholly or
431-21 partially from ad valorem taxes, except refunding bonds, may not be
431-22 issued unless authorized by an election at which only the qualified
431-23 voters who reside in the district shall participate and a majority
431-24 of the votes cast at the election is in favor of the issuance of
431-25 the bonds.
431-26 (b) Before calling an election for the issuance of bonds
432-1 secured either wholly or partially by a pledge of ad valorem taxes,
432-2 the board shall publish, in the manner prescribed by this section,
432-3 a summary of the improvements to be financed with the proceeds of
432-4 the bonds to be issued. If the district has not provided
432-5 facilities for delivering water to a city within the district and
432-6 the summary of improvements does not include provision for
432-7 delivering water to the city, the district shall publish in the
432-8 city notice of its intention, on a date specified in the notice, to
432-9 adopt a resolution ordering an election involving the issuance of
432-10 the bonds and containing the summary of the proposed improvements.
432-11 The notice shall be published at least once in a newspaper
432-12 published in or having general circulation in the city. The date
432-13 of publication shall be at least 14 days before the date on which
432-14 the district intends to adopt a resolution ordering the election.
432-15 If no newspaper is published in the city, notice shall be given by
432-16 posting a copy of the notice of intention at three public places in
432-17 the city for at least 14 days before the date designated for
432-18 ordering the election. The district shall also mail a copy of the
432-19 election notice to the mayor of the city at least 14 days before
432-20 the date designated for ordering the election. Before the date
432-21 designated for ordering the election, the governing body of the
432-22 city notified may adopt a resolution stating that the district has
432-23 not provided facilities for delivering water to the city and does
432-24 not propose to provide the facilities necessary for that purpose
432-25 with the proceeds from the proposed tax-supported bonds on a
432-26 reasonable cost basis; stating that eliminating the city from the
433-1 district for all purposes is in the best interests of the people of
433-2 the city; and seeking withdrawal from the district. If, before the
433-3 date designated for ordering the election, a certified copy of the
433-4 resolution is delivered to the district and to the commission, the
433-5 district shall not proceed with the election until the commission
433-6 has acted finally on the request for withdrawal from the district.
433-7 (c) On receipt of a certified copy of a resolution from a
433-8 city requesting withdrawal from a district the commission shall set
433-9 a date for a hearing on the request, giving written notice of the
433-10 hearing to the city and to the district. If at the hearing the
433-11 commission finds that no facilities have been provided to the city
433-12 and that none will be provided from the proceeds of the proposed
433-13 tax-supported bonds for the delivery of water to the city on a
433-14 reasonable cost basis, the commission shall enter an order
433-15 eliminating the city from the district. In lieu of a hearing the
433-16 district may file with the commission a consent to the elimination
433-17 of the territory. However, if the commission finds that the
433-18 facilities are available or will be provided from the proceeds of
433-19 the proposed bonds on a reasonable cost basis, the commission shall
433-20 enter an order denying the request for withdrawal. After the
433-21 commission enters the order, the district may order an election
433-22 with the city either eliminated or retained in the boundaries of
433-23 the district as prescribed in the order.
433-24 (d) An election for the issuance of bonds payable wholly or
433-25 partially by ad valorem taxes may be called by the board without a
433-26 petition. The resolution calling the election shall specify the
434-1 time and location of the election, the purpose for which the bonds
434-2 are to be issued, the maximum amount of the bonds, the maximum
434-3 maturity of the bonds, the form of the ballot, and the presiding
434-4 judge for each voting place. The presiding judge serving at each
434-5 voting place shall appoint one assistant judge and at least two
434-6 clerks to assist in holding the election. Notice of the election
434-7 shall be given by publishing a substantial copy of the resolution
434-8 calling the election in one newspaper published in each city
434-9 contained in the district for two consecutive weeks. The notice
434-10 must first be published at least 21 days prior to the date of the
434-11 election. If no newspaper is published in a city, notice shall be
434-12 given by posting a copy of the resolution in three public places.
434-13 (e) The returns of the election shall be made to and
434-14 canvassed by the board.
434-15 (f) The Election Code is applicable to elections held under
434-16 this section except as otherwise provided by this chapter.
434-17 (g) Bonds not payable wholly or partially from ad valorem
434-18 taxes may be issued without an election.
434-19 Sec. 267.019. APPROVAL AND REGISTRATION OF BONDS. After any
434-20 bonds, including refunding bonds, are authorized by the district,
434-21 the bonds and the record relating to their issuance shall be
434-22 submitted to the attorney general for examination as to the
434-23 validity of the bonds. If the bonds recite that they are secured
434-24 by a pledge of the proceeds of a contract previously made between
434-25 the district and a city or other governmental agency or district, a
434-26 copy of the contract and the proceedings of the city or other
435-1 governmental agency or district authorizing the contract shall also
435-2 be submitted to the attorney general. If the bonds have been
435-3 authorized and the contracts have been made in accordance with the
435-4 constitution and laws of the state, the attorney general shall
435-5 approve the bonds and contracts and the bonds shall then be
435-6 registered by the comptroller. After the approval and
435-7 registration, the bonds and the contracts, if any, are valid and
435-8 binding and are incontestable for any cause.
435-9 Sec. 267.020. WATER SUPPLY CONTRACTS. The district may
435-10 contract with cities and others for the purpose of supplying water
435-11 to them. The district may also contract with a city for the rental
435-12 or leasing of, or for the operation of, the water production, water
435-13 supply, or water filtration or purification and water supply
435-14 facilities of the city for such consideration as the district and
435-15 the city may agree. The contract may be on the terms and for the
435-16 time the parties may agree, and the contract may provide that it
435-17 shall continue in effect until bonds specified in the contract and
435-18 refunding bonds issued in lieu of the bonds are paid.
435-19 Sec. 267.021. DISTRICT DEPOSITORY. (a) The board shall
435-20 designate one or more banks within the district to serve as
435-21 depository or depositories for the funds of the district. All
435-22 funds of the district shall be deposited in the depository bank or
435-23 banks, except that funds pledged to pay bonds may be deposited with
435-24 the trustee bank named in the trust agreement and except that funds
435-25 shall be remitted to the bank of payment for the payment of
435-26 principal of and interest on bonds. To the extent that funds in
436-1 the depository banks and the trustee bank are not insured by the
436-2 Federal Deposit Insurance Corporation, the funds shall be secured
436-3 in the manner provided by law for the security of county funds; or
436-4 the resolution or trust agreement, or both, securing the bonds may
436-5 require that any or all of the funds be secured by obligations of
436-6 or obligations unconditionally guaranteed by the United States
436-7 government.
436-8 (b) Before designating a depository bank or banks, the board
436-9 shall issue a notice stating the time and place when and where the
436-10 board will meet to designate the depository bank or banks and
436-11 inviting the banks in the district to submit applications to be
436-12 designated depositories. The notice must be published one time in
436-13 a newspaper or newspapers published in the district and specified
436-14 by the board. The term of service for depositories shall be
436-15 prescribed by the board.
436-16 (c) At the time stated in the notice of the meeting, the
436-17 board shall consider the applications and the management and
436-18 condition of the banks filing the applications and shall designate
436-19 as depositories the bank or banks which offer the most favorable
436-20 terms and conditions for the handling of the funds of the district
436-21 and which the board finds have proper management and are in
436-22 condition to warrant handling of district funds. Membership on the
436-23 board of an officer or director of a bank shall not disqualify the
436-24 bank from being designated as depository.
436-25 (d) If no applications are received by the time stated in
436-26 the notice of the meeting, the board shall designate a bank or
437-1 banks within or outside of the district based on the terms and
437-2 conditions the board finds advantageous to the district.
437-3 Sec. 267.022. WATER APPROPRIATION PERMITS; WATER SUPPLY
437-4 CONTRACTS. The district may acquire water appropriation permits
437-5 directly from the commission or from owners of permits. The
437-6 district may also purchase water or a water supply from any person,
437-7 firm, corporation, or public agency or from the United States
437-8 government or any of its agencies. The district may, within the
437-9 discretion of the board, contract with one or more large users of
437-10 water to acquire a water supply on an agreed allocation of storage
437-11 space as between the district and the user, or the district may
437-12 contract independently for the district's water supply.
437-13 Sec. 267.023. BONDS ELIGIBLE FOR INVESTMENT AND SECURITY OF
437-14 DEPOSITS. (a) All bonds of the district are legal and authorized
437-15 investments for banks, savings banks, trust companies, building and
437-16 loan associations, savings and loan associations, insurance
437-17 companies, fiduciaries, trustees, and guardians and for the sinking
437-18 funds of cities, towns, villages, counties, school districts, or
437-19 other political corporations or subdivisions of the state.
437-20 (b) District bonds are eligible to secure the deposit of
437-21 public funds of the state and of cities, towns, villages, counties,
437-22 school districts, or other political corporations or subdivisions
437-23 of the state. The bonds are lawful and sufficient security for the
437-24 deposits to the extent of the value of the bonds when accompanied
437-25 by all unmatured coupons.
437-26 Sec. 267.024. EXEMPTION FROM TAXATION. The accomplishment
438-1 of the purposes stated in this chapter being for the benefit of the
438-2 people of this state and for the improvement of the properties and
438-3 industries of the state, the district in carrying out the purposes
438-4 of this chapter will be performing an essential public function
438-5 under the constitution and shall not be required to pay any tax or
438-6 assessment on a project or any part of a project under this
438-7 chapter. The bonds issued as provided by this chapter and the
438-8 transfer of and income from the bonds, including the profits made
438-9 on the sale of the bonds, are free from taxation within the state.
438-10 Sec. 267.025. ASSESSMENT, EQUALIZATION, LEVYING, AND
438-11 COLLECTION OF TAXES. (a) The tax rolls of the cities situated
438-12 within the district and within territory later annexed are adopted
438-13 and shall constitute the tax rolls of the district until
438-14 assessments and tax rolls are made by the district.
438-15 (b) Before the sale and delivery of district bonds payable
438-16 wholly or partially from ad valorem taxes, the board shall appoint
438-17 a tax assessor and collector and a board of equalization. The
438-18 board shall assess taxes, equalize valuations, and prepare tax
438-19 rolls. General laws applicable to water control and improvement
438-20 districts with reference to tax assessors and collectors, boards of
438-21 equalization, tax rolls, and the levy and collection of taxes and
438-22 delinquent taxes are applicable to the district, except that the
438-23 board of equalization which is to be appointed each year by the
438-24 board, shall consist of one member residing in each city contained
438-25 in the district.
438-26 Sec. 267.026. DISTRICT RULES AND REGULATIONS. (a) The
439-1 board may adopt and promulgate all reasonable rules or regulations
439-2 to secure, maintain, and preserve the sanitary condition of all
439-3 water in and to flow into a reservoir owned by the district, or
439-4 which the district may control by contract or otherwise, to prevent
439-5 the waste or unauthorized use of the water, and to regulate
439-6 residence, hunting, fishing, boating, camping, and all recreational
439-7 and business privileges, along or around the reservoir or any body
439-8 of land or easement owned or controlled by the district.
439-9 Sec. 267.027. RECREATIONAL FACILITIES. The district may
439-10 establish or otherwise provide for and operate public parks and
439-11 recreational facilities adjacent to or in the immediate vicinity of
439-12 Ferrell's Bridge Dam Reservoir, known as Lake of the Pines, and may
439-13 acquire, by purchase, lease, or otherwise, land for the parks or
439-14 facilities. However, no money received from taxation or from bonds
439-15 payable wholly or partially from taxation shall be used to provide
439-16 for the parks or facilities, and no land for the parks or
439-17 facilities shall be acquired through condemnation proceedings. The
439-18 district may make contracts, including lease and operating
439-19 agreements, in reference to the establishment of public parks and
439-20 recreational facilities with the United States government. The
439-21 district has the power and authority to prescribe and enforce rules
439-22 and regulations applicable to the parks and recreational facilities
439-23 as are granted, under the general law, to water control and
439-24 improvement districts.
439-25 Sec. 267.028. BOUNDARY MAP. The board shall file a map and
439-26 plat of the district, clearly showing the boundaries and limits,
440-1 with each of the following offices: two copies with the
440-2 commission, one copy with the secretary of state, and one copy with
440-3 the county clerk of each county in which any portion of the
440-4 district is located.
440-5 CHAPTER 268. NUECES RIVER AUTHORITY
440-6 Sec. 268.001. CREATION. (a) A conservation and reclamation
440-7 district to be known as the "Nueces River Authority" is created.
440-8 The authority is a governmental agency, a body politic and
440-9 corporate, and a municipality with the authority to exercise the
440-10 powers, rights, privileges, and functions in this chapter. The
440-11 authority is created under and is essential to accomplish the
440-12 purposes of Section 59, Article XVI, Texas Constitution.
440-13 (b) The rights, privileges, authority, and functions granted
440-14 in this chapter to the authority and the authority itself are
440-15 expressly subject to Sections 17.183-17.188, Sections
440-16 17.271-17.277, and Chapters 11, 12, and 26.
440-17 Sec. 268.002. DEFINITIONS. In this chapter:
440-18 (1) "Authority" means the Nueces River Authority.
440-19 (2) "Board" means the board of directors of the
440-20 authority.
440-21 (3) "Director" means a member of the board.
440-22 (4) "Person" includes an individual, corporation,
440-23 organization, government or governmental subdivision or agency,
440-24 business trust, estate, trust, partnership, association, and any
440-25 other legal entity.
440-26 (5) "State" means the State of Texas or any of its
441-1 agencies, departments, boards, political subdivisions, or other
441-2 entities.
441-3 (6) "United States" includes a department, bureau, and
441-4 any other agency of the United States of America.
441-5 (7) "Waste" means sewage, industrial waste, municipal
441-6 waste, recreational waste, agricultural waste, waste heat, solid
441-7 waste, or any other waste.
441-8 Sec. 268.003. BOUNDARIES. (a) The authority includes all
441-9 counties that lie wholly within the Nueces River Basin, all of San
441-10 Patricio, Nueces, and Jim Wells counties, and generally the
441-11 in-basin parts of other counties, except Webb County, that lie
441-12 partially within the basin. The actual boundaries of the area
441-13 within the authority may be described by metes and bounds as
441-14 follows: Beginning at a point in the boundary of the State of
441-15 Texas offshore of the City of Port Aransas at the Northeast corner
441-16 of Nueces County and the most southerly Southeast corner of Aransas
441-17 County; thence along the common line between Nueces County and
441-18 Aransas County in a westerly and then northerly direction to a
441-19 point in the center of the Intracoastal Canal cutoff between
441-20 Rockport and Aransas Pass, Texas; thence southerly along the
441-21 centerline of the said Intracoastal Canal to its point of
441-22 intersection with an extension of the boundary line between Aransas
441-23 County and San Patricio County for the northernmost Southeast
441-24 corner of San Patricio County and the Southwest corner of Aransas
441-25 County for an angle point; thence along the common line between San
441-26 Patricio County and Aransas County in a northwesterly direction
442-1 approximately 14 miles to a point on the Aransas River on the South
442-2 line of Refugio County for the Northeast corner of San Patricio
442-3 County and the West corner of Aransas County; thence along the
442-4 Aransas River and the common line between Refugio County and San
442-5 Patricio County in a west-northwesterly direction approximately 19
442-6 miles to a point on the Southeast line of Bee County for the
442-7 Southwest corner of Refugio County; thence along the common line
442-8 between Bee County and San Patricio County in a southwesterly
442-9 direction approximately 3 miles to a point for the Southeast corner
442-10 of Bee County; thence along the common line between Bee County and
442-11 San Patricio County in a west-northwesterly direction approximately
442-12 16 miles to the common corner of Live Oak, Bee, and San Patricio
442-13 Counties; thence in a northwesterly direction with the line between
442-14 Live Oak and Bee Counties approximately 14 miles; thence N.
442-15 approximately 25 miles to the most northern corner of Bee County;
442-16 thence N. 40 W. at approximately 19 1/2 miles the Karnes-Wilson
442-17 Counties line, at about 31 miles a point in the S.W. line of Bexar
442-18 County; thence approximately North 77 1/2 W. approximately 28
442-19 miles, to the S.W. corner of Bexar County; thence N.W. along the
442-20 northwest extension of the common boundary between Bexar and
442-21 Atascosa Counties 3 1/2 miles to a point; thence N. 30 W.
442-22 approximately 28 miles to a point in the North line of Medina
442-23 County; then North 64 W. approximately 34 miles to a point in the
442-24 west line of Bandera County; thence North approximately 3 miles to
442-25 the northwest corner of Bandera County; thence West with the line
442-26 of Real and Kerr Counties approximately 5 miles to S.W. corner of
443-1 Kerr County; thence North with the line between Kerr and Real
443-2 Counties approximately 13 miles to the N.E. corner of Real County;
443-3 thence West, North and West, with the north line of Real County,
443-4 approximately 18 miles to the Northwest corner of Real County;
443-5 thence South 75 west approximately 15 miles to the Court House in
443-6 Rock Springs in Edwards County; thence N. 68 W. approximately 15
443-7 miles to a point; thence S. 34 W. approximately 19 miles to a
443-8 point; thence S. 35 E. at 21 miles pass a point in the South line
443-9 of Edwards County, 34 miles to a point; thence S. 23 1/2 W.
443-10 approximately 14 miles to a point; thence S. approximately 8 miles
443-11 to Spofford Junction; thence South with the Eagle Pass branch of
443-12 G. H. & S. A. R. R. at 15 miles a point; thence South 12 miles to a
443-13 point; thence S. 41 1/2 E. 42 miles to the village of Dentonia in
443-14 Dimmit County; thence S. 27 1/2 d. E. approximately 10 miles to the
443-15 Dimmit and Webb Counties line; thence E. with said Dimmit-Webb
443-16 County line approximately 25 miles to the west line of La Salle
443-17 County; thence South with west line of La Salle County
443-18 approximately 5 miles to the S.W. corner of La Salle County, a
443-19 common corner with Webb County; thence E. with the Webb-La Salle
443-20 County line approximately 30 miles to the N.E. corner of Webb
443-21 County, the common corner of Webb, La Salle, McMullen and Duval
443-22 Counties; thence S. with the Webb-Duval County line approximately
443-23 27 miles to a point in the E. line of Webb County; thence N. 35 d.
443-24 E. 33 miles to a point on the 28 d. North Parallel; thence East
443-25 along the 28 degrees North Parallel approximately 17 miles to a
443-26 point on the East line of Duval County and the West line of Jim
444-1 Wells County for an interior corner; thence along the common line
444-2 between Duval County and Jim Wells County, South approximately 55
444-3 miles to a point on the North line of Brooks County for the
444-4 Southwest corner of Jim Wells County and the Southeast corner of
444-5 Duval County; thence along the common line between Jim Wells County
444-6 and Brooks County, East approximately 11 miles to a point for the
444-7 northernmost Southwest corner of Kleberg County and the
444-8 southernmost Southeast corner of Jim Wells County; thence along the
444-9 common line between Jim Wells County and Kleberg County, North
444-10 approximately 25.5 miles to the Northwest corner of Kleberg County
444-11 and an interior corner of Jim Wells County; thence along the common
444-12 line between Jim Wells County and Kleberg County, East
444-13 approximately 7.25 miles to a point in the center of San Fernando
444-14 Creek for the northernmost Southeast corner of Jim Wells County and
444-15 the northernmost Southwest corner of Nueces County; thence along
444-16 the centerline of San Fernando Creek and along the common line
444-17 between Kleberg County and Nueces County in a southeasterly
444-18 direction approximately 9 miles to a point for the southernmost
444-19 Southwest corner of Nueces County; thence along the common line
444-20 between Kleberg County and Nueces County, East approximately 32
444-21 miles to a point on the shoreline of Laguna Madre for an angle
444-22 point; thence along the common line between Kleberg County and
444-23 Nueces County in an east-northeasterly direction across Laguna
444-24 Madre approximately 5.25 miles to a point on the Northwest line of
444-25 Padre Island for an angle point; thence along the common line
444-26 between Kleberg County and Nueces County in a southeasterly
445-1 direction to a point on the boundary of the State of Texas in the
445-2 Gulf of Mexico off North Padre Island at the Northeast corner of
445-3 Kleberg County and the Southeast corner of Nueces County; thence
445-4 along the boundary of the State of Texas in the Gulf of Mexico and
445-5 along the Southeast line of Nueces County in a northeasterly
445-6 direction to the point of beginning; being all of Live Oak County,
445-7 1116 square miles, McMullen County 1302 square miles, La Salle
445-8 County 1561 square miles, Frio County 1124 square miles, Zavala
445-9 County 1348 square miles, Atascosa County, 1358 square miles, Real
445-10 County 619 square miles, Uvalde County 1589 square miles, San
445-11 Patricio County 680 square miles, Nueces County 838 square miles,
445-12 and Jim Wells County 846 square miles, and parts of the following
445-13 Counties with the number of square miles included in the authority:
445-14 Duval 378 square miles.
445-15 Dimmit 1200 square miles.
445-16 Maverick 574 square miles.
445-17 Kinney 602 square miles.
445-18 Medina 1113 square miles.
445-19 Bandera 224 square miles.
445-20 Edwards 922 square miles.
445-21 Bexar 84 square miles.
445-22 Wilson 98 square miles.
445-23 Karnes 85 square miles.
445-24 Bee 135 square miles.
445-25 (b) The boundaries and field notes of the authority form a
445-26 closure. If a mistake is made in copying the field notes in the
446-1 legislative process or a mistake is otherwise made in the field
446-2 notes, it shall in no way affect the organization, existence, and
446-3 validity of the authority, the right of the authority to issue any
446-4 type of bonds or refunding bonds for the purpose for which the
446-5 authority is created or to pay the principal of or interest on the
446-6 bonds, the right to assess, levy, and collect taxes, or in any
446-7 other manner affect the legality or operation of the authority or
446-8 the governing body of the authority.
446-9 (c) The written description of the boundaries in Subsection
446-10 (a) shall be recorded by the board in the minutes of the authority.
446-11 (d) If the board finds any land included in the field notes,
446-12 other than land in San Patricio, Nueces, and Jim Wells counties,
446-13 that is not actually included in the watershed, the board shall
446-14 exclude the land from the authority and file a certificate of
446-15 exclusion with the county clerk of the county in which the land is
446-16 located. The certificate of exclusion shall describe the
446-17 boundaries of the land excluded so that the land remaining in the
446-18 authority may be adequately identified.
446-19 Sec. 268.004. PURPOSE. The purpose of this chapter is to
446-20 provide by the means and in the manner authorized by this chapter,
446-21 for the conservation and development of the state's natural
446-22 resources within the Nueces River Basin, including:
446-23 (1) the control, storage, preservation, and
446-24 distribution of the state's water for domestic and municipal uses,
446-25 industrial uses, irrigation, mining and recovery of minerals, stock
446-26 raising, underground water recharge, electric power generation,
447-1 navigation, recreation and pleasure, and other beneficial uses and
447-2 purposes;
447-3 (2) the reclamation and irrigation of arid, semiarid,
447-4 and other land needing irrigation;
447-5 (3) the reclamation and drainage of overflowed land
447-6 and other land needing drainage;
447-7 (4) the maintenance and enhancement of the quality of
447-8 the water in the Nueces River Basin;
447-9 (5) the conservation and development of the forests,
447-10 water, and hydroelectric power;
447-11 (6) the navigation of inland and coastal water; and
447-12 (7) the provision of systems, facilities, and
447-13 procedures for the collection, transportation, handling, treatment,
447-14 and disposal of waste of all types.
447-15 Sec. 268.005. CONSTRUCTION OF CHAPTER. This chapter shall
447-16 be liberally construed to achieve its purposes, and any particular
447-17 grant of power contained in this chapter shall be held to specify
447-18 but not to limit general powers. This chapter is sufficient
447-19 authority for the performance of all acts and procedures authorized
447-20 by this chapter, without reference to any other law or any
447-21 restrictions or limitations included in any other law. The
447-22 authority may use the provisions of any other law not in conflict
447-23 with an express provision of this chapter to the extent necessary
447-24 or convenient to carry out any power, express or implied, granted
447-25 by this chapter or by any other law that by its terms is applicable
447-26 to the authority.
448-1 Sec. 268.006. BOARD OF DIRECTORS. (a) The authority shall
448-2 be governed by a board of directors composed of 21 members, who
448-3 shall be appointed by the governor with the advice and consent of
448-4 the senate. Each member must be a qualified elector and a resident
448-5 of a county that lies wholly or partly within the authority as
448-6 described in Section 268.003(a).
448-7 (b) The board shall include four members who are residents
448-8 of Nueces County, two members who are residents of San Patricio
448-9 County, and two members who are residents of Jim Wells County. Not
448-10 more than four persons who reside in Nueces County and not more
448-11 than two persons who reside in any other county that lies wholly or
448-12 partly within the authority may be appointed to or serve on the
448-13 board at the same time.
448-14 (c) Each member of the board serves for a term of six years
448-15 and until a successor is appointed and has qualified. Members of
448-16 the board serve staggered terms, with one-third of the members
448-17 taking office on February 1 of each odd-numbered year.
448-18 (d) Each member of the board shall qualify by taking the
448-19 constitutional oath of office and by executing a bond in an amount
448-20 determined by the board conditioned on the faithful performance of
448-21 the member's duties.
448-22 (e) All vacancies on the board shall be filled in the manner
448-23 provided by this section for making the original appointment.
448-24 (f) The governor may remove a director from office for
448-25 inefficiency, neglect of duty, misconduct in office, or absence
448-26 from three consecutive regular meetings of the board. Before a
449-1 director is removed from office, the board shall conduct a hearing
449-2 on the charges against the director. The director is entitled to
449-3 appear at the hearing and present evidence to show why the director
449-4 should not be removed from office. Not later than the 30th day
449-5 before the date of the hearing, the board shall give the director
449-6 notice of the charges against the director and the time and place
449-7 for the hearing. An affirmative vote of not less than 11 of the
449-8 directors is required to approve a recommendation for removal. A
449-9 recommendation for removal shall be forwarded to the governor for
449-10 the governor's consideration and action in accordance with the
449-11 provisions of this subsection.
449-12 (g) Eleven members of the board constitute a quorum for the
449-13 transaction of business.
449-14 (h) The board shall adopt and may amend necessary bylaws for
449-15 the conduct of the authority's business.
449-16 (i) The board shall elect a president, one or more vice
449-17 presidents, a secretary, a treasurer, and other officers as the
449-18 board considers necessary. The president, vice presidents,
449-19 secretary, and treasurer must be members of the board, but other
449-20 officers are not required to be members of the board. The offices
449-21 of secretary and treasurer may be combined, and the offices of
449-22 assistant secretary and assistant treasurer may be combined.
449-23 Sec. 268.007. INTEREST IN CONTRACT. A director who has a
449-24 financial interest in a contract to be executed by the authority
449-25 for the purchase, sale, lease, rental, or supply of property,
449-26 including supplies, materials, and equipment, or the construction
450-1 of facilities shall disclose that fact to the other directors and
450-2 may not vote on or participate in discussions during board meetings
450-3 on the acceptance of the contract. A financial interest of a
450-4 director does not affect the validity of a contract if the
450-5 disclosure is made and the director with the financial interest
450-6 does not vote on the question of entering into the contract.
450-7 Sec. 268.008. DIRECTOR COMPENSATION. (a) A director is
450-8 entitled to receive an allowance in an amount not exceeding that
450-9 provided under the general law of the state and reimbursement for
450-10 actual and necessary expenses incurred:
450-11 (1) for each day the director spends attending
450-12 meetings of the board; and
450-13 (2) for each day the director spends attending to the
450-14 business of the authority that is authorized by the board.
450-15 (b) A director is not entitled to receive a per diem
450-16 allowance for more than 50 days in any one calendar year.
450-17 Sec. 268.009. COMMITTEES. The board may appoint or
450-18 establish an executive committee and appoint or provide for the
450-19 appointment of other committees as necessary or desirable to assist
450-20 in conducting the business of the authority. Subject to the
450-21 applicable rules of law on delegation of powers, the board may
450-22 assign, delegate, or provide for the assignment or delegation of
450-23 any powers, duties, and functions to its committees as the board
450-24 may prescribe. If a committee member is not a director, the
450-25 committee member may not vote on matters coming before the
450-26 committee unless specifically authorized by the board.
451-1 Sec. 268.010. EXECUTIVE DIRECTOR. (a) The board may employ
451-2 an executive director and set the salary and other compensation of
451-3 the executive director by a majority vote of the board.
451-4 (b) The executive director is the chief executive officer of
451-5 the authority. Under policies determined by the board and the
451-6 executive committee, if such a committee is established under
451-7 Section 268.009, the executive director is responsible to the board
451-8 and the executive committee, if established, for:
451-9 (1) administering the directives of the board and the
451-10 executive committee;
451-11 (2) keeping the authority's records, including minutes
451-12 of meetings of the board and the executive committee;
451-13 (3) coordinating with state, federal, and local
451-14 agencies;
451-15 (4) developing plans and programs for the approval of
451-16 the board or the executive committee;
451-17 (5) hiring, supervising, training, and discharging the
451-18 authority's employees, as authorized by the board or the executive
451-19 committee;
451-20 (6) contracting for or retaining technical,
451-21 scientific, legal, fiscal, and other professional services, as
451-22 authorized by the board or the executive committee; and
451-23 (7) performing any other duties assigned to the
451-24 executive director by the board or the executive committee.
451-25 (c) The board may discharge the executive director on a
451-26 majority vote of the board.
452-1 Sec. 268.011. DIRECTOR AND EMPLOYEE BONDS. (a) The
452-2 executive director, the treasurer, and other officers, agents, and
452-3 employees of the authority charged with the collection, custody, or
452-4 payment of any money of the authority shall execute a fidelity
452-5 bond. The board shall approve the form, amount, and surety of the
452-6 bond.
452-7 (b) The authority shall pay the premiums on the bonds
452-8 required under this section and the director bonds required under
452-9 Section 268.006(d).
452-10 Sec. 268.012. PRINCIPAL OFFICE. The authority shall
452-11 maintain its principal office within its boundaries.
452-12 Sec. 268.013. RECORDS. (a) The authority shall keep
452-13 complete and accurate accounts of its business transactions in
452-14 accordance with generally accepted methods of accounting.
452-15 (b) The authority shall keep complete and accurate minutes
452-16 of its meetings.
452-17 (c) The authority shall keep its accounts, contracts,
452-18 documents, minutes, and other records at its principal office.
452-19 (d) Except as otherwise required by law, the authority shall
452-20 not disclose any records that it has relating to trade secrets or
452-21 economics of operation of any business or industry.
452-22 (e) Except as provided in Subsection (d), the authority
452-23 shall permit reasonable public inspection of its records during
452-24 regular business hours.
452-25 Sec. 268.014. SEAL. The authority shall adopt a seal, the
452-26 form of which it may alter from time to time.
453-1 Sec. 268.015. SUIT. The authority may sue and be sued in
453-2 its corporate name.
453-3 Sec. 268.016. GENERAL POWERS AND DUTIES. (a) The authority
453-4 shall administer this chapter and shall use its facilities and
453-5 powers to accomplish the purposes of this chapter.
453-6 (b) The authority shall have and may exercise all powers,
453-7 rights, and privileges necessary or convenient for accomplishing
453-8 the purposes of this chapter.
453-9 (c) The powers granted to the authority by this chapter are
453-10 cumulative of all powers granted by other laws that are by their
453-11 terms applicable to the authority.
453-12 Sec. 268.017. CONTROL AND EMPLOYMENT OF WATERS.
453-13 (a) Subject to the constitution and other laws of the state and
453-14 the continuing right of supervision of the state through the
453-15 commission, the authority has and may exercise authority and power
453-16 over the storm water and floodwater of the Nueces River Basin,
453-17 subject to the applicable provisions of Chapters 11 and 12.
453-18 (b) Subject to Chapters 11 and 12, the authority may
453-19 exercise the powers of control and employment of the state's water
453-20 in the following manner and for the following purposes:
453-21 (1) to provide for the control and coordination of
453-22 water use in the Nueces River Basin as a unit;
453-23 (2) to provide by adequate organization and
453-24 administration for the preservation of the rights of the people of
453-25 the different sections of the Nueces River Basin in the beneficial
453-26 use of water;
454-1 (3) to provide for conserving storm water, floodwater,
454-2 and unappropriated flow water of the Nueces River Basin, including
454-3 storing, controlling, transporting, treating, and distributing the
454-4 water, for preventing the escape of the water without the maximum
454-5 of public service, preventing the devastation of land from
454-6 recurrent overflows, and protecting life and property in the river
454-7 basin from uncontrolled floodwater;
454-8 (4) to provide for the conservation of water essential
454-9 for domestic and other water uses of the people of the Nueces River
454-10 Basin, including all necessary water supplies for cities, towns,
454-11 and industrial districts;
454-12 (5) to provide for the irrigation of land in the
454-13 Nueces River Basin where irrigation is required for agricultural
454-14 purposes or may be deemed helpful to more profitable agricultural
454-15 production and to provide for the equitable distribution of storm
454-16 water, floodwater, and unappropriated flow water to the regional
454-17 potential requirements for all uses;
454-18 (6) to provide for the encouragement and development
454-19 of drainage systems and provisions for drainage of land in the
454-20 valleys of the Nueces River and its tributaries needing drainage
454-21 for profitable agricultural and livestock production and industrial
454-22 activities and drainage of other land in the watershed area of the
454-23 authority requiring drainage for the most advantageous use;
454-24 (7) to provide for the conservation of all soils
454-25 against destructive erosion, thereby preventing the increased flood
454-26 dangers caused by destructive erosion;
455-1 (8) to control and make available for employment
455-2 floodwater, storm water, and unappropriated flow water, as
455-3 authorized by the commission, in the development of commercial and
455-4 industrial enterprises in all sections of the watershed area of the
455-5 authority;
455-6 (9) to provide, as set forth by Chapters 11 and 12,
455-7 for the control, storage, and employment of floodwater, storm
455-8 water, and unappropriated flow water in the development and
455-9 distribution of hydroelectric power where this use may be
455-10 economically coordinated with other and superior uses and
455-11 subordinated to the uses declared by law to be superior; and
455-12 (10) to provide, in the manner set forth in Chapters
455-13 11 and 12, for each purpose and use for which floodwater, storm
455-14 water, and unappropriated flow water when controlled and conserved
455-15 may be used in the performance of a useful service as contemplated
455-16 and authorized by the provisions of the constitution and other
455-17 laws.
455-18 (c) Subject to Chapters 11 and 12, the authority may
455-19 control, store, and preserve the water of the Nueces River and its
455-20 tributaries within the boundaries of the authority for any useful
455-21 purpose, may use, distribute, and sell the water for any beneficial
455-22 purpose inside and outside the authority, and may acquire water and
455-23 water rights inside and outside the authority.
455-24 (d) Plans and works provided by the authority and works
455-25 provided under authorization of the authority should give primary
455-26 consideration to the necessary and potential needs for water by or
456-1 within the respective areas constituting the watershed of the
456-2 Nueces River and its tributary streams.
456-3 Sec. 268.018. FORESTATION AND REFORESTATION. The authority
456-4 may forest, reforest, and aid in the foresting and reforesting of
456-5 the watershed area of the Nueces River and its tributaries.
456-6 Sec. 268.019. GROUNDWATER. (a) The authority may conduct
456-7 surveys and studies of the groundwater supplies in the authority
456-8 for the purpose of determining the location and quantity of
456-9 groundwater available for irrigation and other purposes and to
456-10 develop and ascertain other data and information that in the
456-11 judgment of the authority may be necessary to fully develop
456-12 irrigation and other water uses from the groundwater in the
456-13 authority.
456-14 (b) Subject to the requirements of applicable laws and with
456-15 the approval and under the supervision of the commission, the
456-16 authority may appropriate storm water and floodwater to recharge
456-17 underground freshwater-bearing sand and aquifers in the Nueces
456-18 River Basin.
456-19 (c) The authority shall cooperate with the Edwards Aquifer
456-20 Authority, or its lawful successor, and any other groundwater
456-21 district within the boundaries of the authority in groundwater
456-22 recharge projects in areas where a groundwater district has
456-23 jurisdiction.
456-24 Sec. 268.020. WATER QUALITY CONTROL. (a) The authority has
456-25 and may exercise all the powers granted to river authorities under
456-26 Subchapters E and F, Chapter 17, and Chapters 26 and 30.
457-1 (b) The authority may serve as the entity to provide
457-2 regional or areawide waste collection, treatment, and disposal
457-3 services, as provided by Subchapter C, Chapter 26.
457-4 Sec. 268.021. SOLID WASTE. The authority may purchase,
457-5 acquire, construct, maintain, and provide facilities, equipment,
457-6 and disposal sites to furnish solid waste collection,
457-7 transportation, treatment, and disposal services inside the
457-8 authority, may charge for the services, and may enter into
457-9 contracts for the services with any person.
457-10 Sec. 268.022. PARKS AND RECREATIONAL FACILITIES. The
457-11 authority may acquire land adjacent to or in the vicinity of the
457-12 Nueces River or any of its tributaries for park and recreational
457-13 purposes and may acquire, construct, and maintain park and
457-14 recreational facilities on that land.
457-15 Sec. 268.023. PERMITS AND LICENSES. (a) In the manner
457-16 provided by Chapters 11 and 12, the authority shall apply for any
457-17 permits, licenses, franchises, and other grants of authority it may
457-18 require from the commission.
457-19 (b) The authority may apply for any permits, licenses,
457-20 franchises, and other grants of authority it may require from the
457-21 Texas Water Development Board or any other federal, state, or local
457-22 governmental agency to exercise its powers and accomplish the
457-23 purposes under this chapter.
457-24 Sec. 268.024. SERVICE CONTRACTS AND CHARGES. (a) The
457-25 authority may enter into service contracts and may adopt
457-26 resolutions and orders establishing rates and providing for the
458-1 collection of fees and charges for the sale or use of water, the
458-2 services of water transmission, treatment, and storage facilities,
458-3 solid and liquid waste collection, treatment, and disposal
458-4 facilities and services, the use of park and recreational
458-5 facilities, the sale of power and electric energy, and any other
458-6 services or facilities sold, furnished, or supplied by the
458-7 authority.
458-8 (b) The fees and charges shall be sufficient to produce
458-9 revenue adequate to pay:
458-10 (1) expenses necessary for the operation and
458-11 maintenance of the properties and facilities of the authority;
458-12 (2) the interest on or the principal of any bonds or
458-13 other obligations issued by the authority when due and payable and
458-14 to fulfill any reserve or other fund obligations of the authority
458-15 in connection with the bonds or other obligations; and
458-16 (3) any other expenses the board may consider
458-17 necessary and proper for the operations of the authority.
458-18 Sec. 268.025. EMINENT DOMAIN. The authority may acquire
458-19 property of any kind, within or outside the authority, appropriate
458-20 for the exercise of its functions, through the exercise of the
458-21 power of eminent domain under Chapter 21, Property Code.
458-22 Sec. 268.026. ACQUISITION AND DISPOSITION OF PROPERTY.
458-23 (a) The authority may purchase, lease, acquire by gift, maintain,
458-24 use, and operate property of any kind, inside or outside the
458-25 authority, appropriate for the exercise of its functions.
458-26 (b) The authority may sell any property or interest in any
459-1 property owned by the authority by installments or otherwise,
459-2 including sales in a manner prescribed or authorized by Section
459-3 402.014, Local Government Code, Chapter 383, Health and Safety
459-4 Code, and Chapter 30. The authority may lease, exchange, or
459-5 otherwise dispose of any property or interest in any property.
459-6 Sec. 268.027. FACILITIES. The authority may acquire,
459-7 construct, extend, improve, maintain, reconstruct, use, and operate
459-8 any facilities inside or outside the authority necessary or
459-9 convenient to the exercise of its powers, rights, duties, and
459-10 functions.
459-11 Sec. 268.028. USE OF PUBLIC EASEMENTS. The authority may
459-12 use any public roadways, streets, alleys, or public easements
459-13 inside or outside the boundaries of the authority in the
459-14 accomplishment of its purposes without the necessity of securing a
459-15 franchise.
459-16 Sec. 268.029. RELOCATION OF FACILITIES. (a) If the
459-17 authority, in the exercise of the power of eminent domain, power of
459-18 relocation, or any other power, necessitates the relocation,
459-19 raising, rerouting, change in grade, or alteration of the
459-20 construction of any highway, railroad, electric transmission line,
459-21 telephone or telegraph properties and facilities, or pipelines, all
459-22 necessary relocation, raising, rerouting, change in grade, or
459-23 alteration of construction shall be accomplished at the sole
459-24 expense of the authority.
459-25 (b) In this section, "sole expense" means the actual cost of
459-26 the relocation, raising, rerouting, change in grade, or alteration
460-1 of grade or construction in providing a comparable replacement
460-2 without any enhancement of the facilities, after deducting the net
460-3 salvage value derived from the old facility.
460-4 Sec. 268.030. CONTRACTS GENERALLY. (a) The authority may
460-5 enter into contracts and execute instruments that are necessary or
460-6 convenient to the exercise of its powers, rights, duties, and
460-7 functions.
460-8 (b) A construction, maintenance, operation, or repair
460-9 contract, a contract for the purchase of material, equipment, or
460-10 supplies, or a contract for services, other than technical,
460-11 scientific, legal, fiscal, or other professional services, that
460-12 will require an estimated expenditure of more than $10,000 or is
460-13 for a term of six months or more shall be awarded to the lowest and
460-14 best bidder. A notice to bidders shall be published once each week
460-15 for three consecutive weeks before the date set for awarding the
460-16 contract. In the event of a catastrophe or calamity of any kind,
460-17 the authority may award contracts necessary to protect and preserve
460-18 the public health and welfare or the properties of the authority
460-19 without using the bidding procedures.
460-20 (c) The notice of bids is sufficient if it states the time
460-21 and place the bids will be opened, the general nature of the work
460-22 to be done, the material, equipment, or supplies to be purchased,
460-23 or the nonprofessional services to be rendered and states the terms
460-24 on which copies of the plans, specifications, or other pertinent
460-25 information may be obtained.
460-26 (d) Notice shall be published in a newspaper with general
461-1 circulation in the county or counties in which the contract is to
461-2 be performed and may also be published in any other appropriate
461-3 publication.
461-4 (e) A person who desires to bid on the construction of any
461-5 work that is advertised shall, on written application to the
461-6 authority, be furnished a copy of the plans and specifications or
461-7 other engineering and architectural documents showing the work to
461-8 be done and all the details of the work to be done. The authority
461-9 may charge a fee to cover the cost of making the copy. Bids must
461-10 be in writing, sealed, and delivered to the authority and must be
461-11 accompanied by a certified check on a responsible bank in the state
461-12 or, at the discretion of the authority, a bid bond from a company
461-13 approved by the authority, for at least one percent of the total
461-14 amount bid. The check or bond is forfeited to the authority if the
461-15 successful bidder fails or refuses to enter into a proper contract
461-16 or fails or refuses to furnish bond as required by law. Bids may
461-17 be rejected by the authority, and the authority may waive any
461-18 informality in the bids.
461-19 (f) Bids shall be opened at the place specified in the
461-20 published notice and shall be announced by the authority. The
461-21 place where the bids are opened and announced shall always be open
461-22 to the public. The award of the contract shall be made by the
461-23 board or by the executive committee if authorized by the board.
461-24 (g) The contract price of all construction contracts of the
461-25 authority may be paid in partial payments as the work progresses,
461-26 but the payments shall not exceed 90 percent of the amount due at
462-1 the time of the payment as shown by the report of the engineer of
462-2 the authority. At all times during the progress of the work, the
462-3 executive director shall inspect the construction or have the
462-4 construction inspected by the authority's engineer or the
462-5 engineer's assistants. On certification of the executive director
462-6 and the authority's engineer of the completion of the contract in
462-7 accordance with its terms, and in the case of any construction
462-8 contract for which notice to bidders is required by Subsection (b),
462-9 on approval of the board, the authority shall draw a warrant on its
462-10 depository to pay the balance due on the contract.
462-11 (h) The person, firm, or corporation to whom the contract is
462-12 awarded shall provide the performance and payment bonds required by
462-13 law.
462-14 (i) This section does not prohibit the authority from
462-15 purchasing or acquiring land or interests in land from any person,
462-16 from acquiring, constructing, or improving pollution control or
462-17 waste collection and disposal facilities as provided by Chapter
462-18 383, Health and Safety Code, Chapter 30, or other applicable laws,
462-19 or from purchasing or acquiring surplus property from a
462-20 governmental entity by negotiated contract and without necessity
462-21 for advertising bids.
462-22 (j) An officer, agent, or employee of the authority who is
462-23 financially interested in a contract described in Subsection (b)
462-24 shall disclose that fact to the board before the board votes on the
462-25 acceptance of the contract.
462-26 Sec. 268.031. AUTHORITY RULES. (a) The authority may adopt
463-1 and enforce rules reasonably required to effectuate the provisions
463-2 of this chapter.
463-3 (b) In adopting rules, the board shall comply, as
463-4 appropriate, with the requirements of Chapter 2001, Government
463-5 Code.
463-6 (c) The board shall print its rules and furnish copies to
463-7 any person on written request.
463-8 Sec. 268.032. PENALTIES. (a) A person who violates a rule
463-9 or order of the authority is subject to a civil penalty of not less
463-10 than $50 and not more than $1,000 for each day of violation. The
463-11 authority may sue to recover the penalty in a district court in the
463-12 county where the violation occurred. Penalties shall be paid to
463-13 the authority.
463-14 (b) The authority may sue for injunctive relief in a
463-15 district court in the county where a violation of a rule or order
463-16 occurred or is threatened.
463-17 (c) The authority may sue for injunctive relief and
463-18 penalties in the same proceeding.
463-19 Sec. 268.033. JUDICIAL REVIEW. (a) A person who is
463-20 adversely affected by a rule or order of the authority may sue the
463-21 authority in a district court to set aside the rule or order before
463-22 the 31st day after the date on which the rule or order took effect.
463-23 (b) Venue for suits under Subsection (a) is in any county
463-24 located wholly or partially in the authority where the plaintiff
463-25 resides or in the county in which the authority maintains its
463-26 principal office.
464-1 Sec. 268.034. SURVEYS AND ENGINEERING INVESTIGATIONS. The
464-2 authority shall make surveys and engineering investigations to
464-3 develop information for its use, and the board may make and
464-4 determine plans necessary to accomplish the purposes for which the
464-5 authority is created and do all things useful and helpful in
464-6 carrying out the plans and accomplishing the purposes of the
464-7 authority.
464-8 Sec. 268.035. ACCESS. (a) To provide for the safety and
464-9 welfare of persons and their property or for the protection and
464-10 security of the property and facilities of the authority, the board
464-11 may adopt rules with respect to the properties of the authority and
464-12 any water reservoir or dam, the construction, operation, or
464-13 management of which is participated in by the authority, to control
464-14 and regulate ingress, egress, and use and the operation of land and
464-15 water vehicles.
464-16 (b) All public roads, streets, and state highways crossing
464-17 the areas adjacent to the areas to be covered by any impounded
464-18 water shall remain open to allow public access to and from the
464-19 lakes created, unless a change is made by lawful authority.
464-20 Sec. 268.036. USE OF BED AND BANKS OF NUECES RIVER AND
464-21 TRIBUTARIES. Subject to the approval of the commission, the
464-22 authority may use the bed and banks of the Nueces River and its
464-23 tributaries for any purpose necessary to accomplish the plans of
464-24 the authority for storing, controlling, conserving, transporting,
464-25 and distributing storm waters, floodwaters, and appropriated flow
464-26 waters for useful purposes.
465-1 Sec. 268.037. MASTER PLAN. (a) The authority shall prepare
465-2 and file with the commission a master plan for the maximum
465-3 development of the soil and water resources of the entire Nueces
465-4 River watershed, including plans for the complete utilization, for
465-5 all economically beneficial purposes, of the water resources of the
465-6 watershed. The authority may amend the master plan as appropriate
465-7 to accomplish the purposes of this section.
465-8 (b) After the master plan or any amendments to the plan have
465-9 been filed with the commission, notice of the application of a
465-10 person who desires to acquire the right to use state water in the
465-11 Nueces River watershed shall be furnished to the authority. After
465-12 public hearing as provided by law, the commission may grant or deny
465-13 the proposed application in the manner required by law,
465-14 notwithstanding any provisions of the master plan or any amendments
465-15 to the plan to the contrary.
465-16 (c) Works constructed by the authority shall be constructed
465-17 and operated in a manner conforming to the master plan and any
465-18 amendments to the plan to the greatest degree practicable.
465-19 (d) None of the provisions of this section shall be
465-20 construed to interfere with any improvement of the Nueces River or
465-21 its tributaries or with grants or loans in aid of any improvement
465-22 made by the United States or the state.
465-23 Sec. 268.038. CONSERVATION PROGRAM. The board shall adopt
465-24 and implement a program of water conservation that incorporates
465-25 practices, techniques, and technologies that will reduce the
465-26 consumption of water, reduce the loss or waste of water, improve
466-1 the efficiency in the use of water, or increase the recycling and
466-2 reuse of water so that a water supply is made available for future
466-3 or alternative uses. The commission determines whether a program
466-4 will meet reasonably anticipated local needs and conditions.
466-5 Sec. 268.039. WORK WITH TEXAS WATER DEVELOPMENT BOARD. The
466-6 authority has all the powers vested in political subdivisions under
466-7 Chapters 16 and 17, including the powers necessary to enable the
466-8 authority to participate in the programs administered by the Texas
466-9 Water Development Board for the acquisition and development of
466-10 facilities, the sale or lease of facilities, financial assistance
466-11 to political subdivisions, and other authorized programs.
466-12 Sec. 268.040. GENERAL PROVISIONS. (a) The board may
466-13 provide for any expenditures it considers essential or useful in
466-14 the maintenance, operation, and administration of the authority.
466-15 (b) The authority may perform any other acts necessary or
466-16 convenient to the exercise of the powers, rights, privileges, or
466-17 functions conferred by this chapter or other laws.
466-18 Sec. 268.041. LIMITATIONS ON AUTHORITY AND SUPERVISION BY
466-19 COMMISSION. (a) The powers and duties granted and prescribed by
466-20 this chapter are subject to all legislative declarations of public
466-21 policy in the maximum use of the storm water, floodwater, and
466-22 unappropriated flow water of the Nueces River Basin for the
466-23 purposes for which the authority is created and are subject to the
466-24 continuing right of supervision of the state through the
466-25 commission.
466-26 (b) The commission is charged with the authority and duty to
467-1 approve or refuse to approve the adequacy of a plan for flood
467-2 control or conservation improvement purposes that is devised by the
467-3 authority for the achievement of the plans and purposes intended in
467-4 the creation of the authority and that contemplates improvements
467-5 supervised by the commission under the provisions of the general
467-6 law.
467-7 Sec. 268.042. CLEAN AIR FINANCING POWERS. In addition to
467-8 the powers and functions vested in the authority by this chapter,
467-9 the authority has and may exercise all the powers and functions
467-10 vested in river authorities under Chapter 383, Health and Safety
467-11 Code.
467-12 Sec. 268.043. DISBURSEMENT OF FUNDS. The authority may
467-13 disburse money only by check, draft, order, or other instrument,
467-14 signed by the person or persons authorized in the bylaws of the
467-15 board or by resolution of the board.
467-16 Sec. 268.044. FEES AND CHARGES. The authority shall
467-17 establish fees and charges that may not be higher than necessary to
467-18 fulfill the obligations imposed on the authority by this chapter.
467-19 Sec. 268.045. LOANS AND GRANTS. (a) The authority may
467-20 borrow money and accept grants and donations for corporate purposes
467-21 from private sources, the United States, the state, local
467-22 governments, or any other person. The authority may enter into any
467-23 agreement in connection with the loan, grant, or donation that is
467-24 not in conflict with the constitution and laws of this state.
467-25 (b) The source of any funds accepted by the authority,
467-26 including the amount and any restrictions placed by the donor on
468-1 the expenditure of the funds, shall be public information.
468-2 Sec. 268.046. FUNDS FOR SURVEYS AND DATA COLLECTION. The
468-3 authority may apply to the state, the United States, or any other
468-4 person for funds necessary to secure engineering surveys and the
468-5 compilation and collection of data relating to regional and general
468-6 conditions entering into and influencing the character and the
468-7 extent of the improvements necessary to accomplish the storage,
468-8 control, transportation, treatment, conservation, and equitable
468-9 distribution to the greatest public advantage of the floodwater,
468-10 normal flow, and storm water that are stored and controlled and to
468-11 accomplish or carry out any of the other purposes of this chapter.
468-12 The authority shall request an amount of funds the authority
468-13 considers sufficient for its purposes and may make the necessary
468-14 agreements with the party providing the funds and may appropriate
468-15 the amount of the estimated equitable contribution of the costs of
468-16 developing essential engineering data.
468-17 Sec. 268.047. TRUST FUND. Money collected by or donated,
468-18 granted, loaned, or advanced to the authority is declared to be
468-19 trust fund money for the purposes provided in this chapter.
468-20 Sec. 268.048. USE OF REVENUE AND PROPERTY. (a) All revenue
468-21 accruing to the authority shall be used by the authority pursuant
468-22 to this chapter and any other law relating to the authority.
468-23 (b) The use of any money or property of the authority for
468-24 any purpose not provided in this chapter is prohibited.
468-25 Sec. 268.049. INVESTMENT OF FUNDS. (a) Funds in the
468-26 treasury of the authority that are not required for current payment
469-1 of obligations of the authority or for sinking funds and that the
469-2 board considers available for investment may be invested or
469-3 reinvested by the authority in:
469-4 (1) direct obligations of or obligations the principal
469-5 and interest of which are guaranteed by the United States;
469-6 (2) direct obligations of or participation
469-7 certificates guaranteed by the Federal Intermediate Credit Banks,
469-8 Federal Land Banks, Federal National Mortgage Association, Federal
469-9 Home Loan Banks, Banks for Cooperatives, or the successor or
469-10 successors to any of those entities and in certificates of deposit
469-11 of any bank or trust company the deposits of which are fully
469-12 secured by a pledge of securities of any of the kind specified in
469-13 this subdivision;
469-14 (3) any other securities made eligible for such
469-15 investment by other laws and constitutional provisions; or
469-16 (4) any combination of the obligations, certificates,
469-17 or securities specified in this subsection.
469-18 (b) The type and maturity of investments made under this
469-19 section shall be determined by the board, which, in the case of
469-20 funds established in connection with the authorization of bonds,
469-21 shall provide appropriate recitals with regard to the issuance of
469-22 the bonds in the resolutions relating to the issuance of the bonds.
469-23 Income and profits on the investments shall be applied as directed
469-24 by the board.
469-25 Sec. 268.050. AUDIT. (a) The fiscal year of the authority
469-26 ends on August 31 of each year.
470-1 (b) On or before January 1 following the close of each
470-2 fiscal year, the state auditor shall audit the books and accounts
470-3 of the authority for the preceding fiscal year. The audit shall
470-4 show the amount of money received by the authority under this
470-5 chapter during the preceding fiscal year and shall show how, to
470-6 whom, and for what purpose the money was spent.
470-7 (c) A copy of the audit report shall be filed with the
470-8 authority, the governor, the lieutenant governor, the speaker of
470-9 the house of representatives, the attorney general, the commission,
470-10 and the comptroller.
470-11 (d) After completing the audit report, the state auditor
470-12 shall prepare a statement showing the actual cost of the audit and
470-13 shall certify the statement to the governor for approval. When the
470-14 statement is approved by the governor, it shall be delivered to the
470-15 authority. The authority shall pay the cost of the audit by
470-16 depositing the money with the state treasurer, who shall place the
470-17 money in the general revenue fund.
470-18 (e) Nothing in this section shall prohibit the authority
470-19 from employing the professional services of accountants for any
470-20 purpose.
470-21 Sec. 268.051. DEPOSITORY BANKS. (a) The board shall
470-22 designate one or more banks inside or outside the authority to
470-23 serve as depository for the funds of the authority. All money of
470-24 the authority shall be deposited in the depository bank or banks
470-25 except that bond proceeds, money pledged to pay bonds, money placed
470-26 in special funds, and money remitted to a bank of payment for the
471-1 payment of principal of and interest on bonds may be handled as
471-2 provided in a trust indenture or bond resolution. To the extent
471-3 that funds in the depository banks or a trustee bank are not
471-4 invested or insured by the Federal Deposit Insurance Corporation,
471-5 the funds shall be secured in the manner provided by law for the
471-6 security of county funds.
471-7 (b) Before designating a depository bank or banks, the board
471-8 shall issue a notice stating the time and place the board will meet
471-9 for that purpose and inviting the banks in the authority to submit
471-10 applications to be designated depositories. The term of service
471-11 for depositories shall be prescribed by the board. The notice
471-12 shall be published one time in a newspaper or newspapers of general
471-13 circulation in the authority specified by the board. In lieu of
471-14 the publication in a newspaper, a copy of the notice may be mailed
471-15 to each bank in the authority.
471-16 (c) At the time mentioned in the notice, the board shall
471-17 consider the applications and the management and condition of the
471-18 banks filing them and shall designate as depositories the bank or
471-19 banks that offer the most favorable terms and conditions for the
471-20 handling of the funds of the authority, that the board finds have
471-21 proper management, and that are in condition to warrant handling of
471-22 authority funds. Membership on the board of an officer or director
471-23 of a bank shall not disqualify the bank from being designated a
471-24 depository.
471-25 (d) If no applications are received by the time stated in
471-26 the notice, the board shall designate a bank or banks inside or
472-1 outside the authority on terms and conditions the authority finds
472-2 advantageous.
472-3 Sec. 268.052. BONDS. (a) For the purpose of carrying out
472-4 any power or authority conferred by this chapter, including the
472-5 expense of preparing the master plan and the payment of engineering
472-6 and other expenses in connection with the master plan, the
472-7 authority may issue bonds in three general classes:
472-8 (1) bonds secured by ad valorem taxes;
472-9 (2) bonds secured by a pledge of all or part of the
472-10 revenues accruing to the authority, including revenues received
472-11 from the sale of water or other products, rendition of service,
472-12 tolls, charges, and all other sources other than ad valorem taxes;
472-13 or
472-14 (3) bonds secured by a combination pledge of all or
472-15 part of the revenues described in Subdivision (2) and taxes.
472-16 (b) The bonds must be authorized by resolution of the board
472-17 and shall be issued in the name of the authority, signed by the
472-18 president or vice president, and attested by the secretary and
472-19 shall bear the seal of the authority. If authorized by the board,
472-20 the signatures of the president or vice president and the secretary
472-21 or of both may be printed or lithographed on the bonds, and the
472-22 seal of the authority may be impressed on the bonds or may be
472-23 printed or lithographed on the bonds. The bonds must be in the
472-24 form prescribed by the board, must be in any denomination or
472-25 denominations, must mature serially or otherwise in not to exceed
472-26 50 years from their date, shall bear any interest, and may be sold
473-1 at a price and under terms determined by the board to be the most
473-2 advantageous reasonably obtainable. Within the discretion of the
473-3 board, the bonds may be made callable prior to maturity at the
473-4 times and prices prescribed in the bonds and may be made
473-5 registrable as to principal or as to both principal and interest.
473-6 The bonds may be further secured by an indenture of trust with a
473-7 corporate trustee.
473-8 (c) Bonds may be issued in more than one series, and from
473-9 time to time, as required for carrying out the purposes of this
473-10 chapter. A pledge of revenue may reserve the right, under
473-11 conditions specified in the pledge, to issue additional bonds which
473-12 will be on a parity with or subordinate to the bonds then being
473-13 issued.
473-14 (d) The resolution authorizing the bonds or the trust
473-15 indenture further securing the bonds may specify additional
473-16 provisions that shall constitute a contract between the authority
473-17 and its bondholders. The board shall have full discretion to
473-18 provide additional provisions to the resolution, including the
473-19 authority to provide for a corporate trustee or receiver to take
473-20 possession of facilities of the authority in the event of default
473-21 on the part of the authority in fulfilling the covenants made in
473-22 the resolution.
473-23 Sec. 268.053. REFUNDING BONDS. (a) The authority may issue
473-24 refunding bonds for the purpose of refunding any outstanding bonds
473-25 authorized by this chapter and interest on the bonds. The
473-26 refunding bonds may be issued to refund one or more series of
474-1 outstanding bonds and may combine the pledges for the outstanding
474-2 bonds for the security of the refunding bonds, and the refunding
474-3 bonds may be secured by other or additional revenue.
474-4 (b) The provisions of this chapter with reference to the
474-5 issuance by the authority of other bonds, their security, their
474-6 approval by the attorney general, and the remedies of the holders
474-7 shall be applicable to refunding bonds. Refunding bonds shall be
474-8 registered by the comptroller on surrender and cancellation of the
474-9 bonds to be refunded, but in lieu of such surrender and
474-10 cancellation, the resolution authorizing the issuance of the
474-11 refunding bonds may provide that the bonds shall be sold and the
474-12 proceeds deposited in the bank where the original bonds are
474-13 payable, in which case the refunding bonds may be issued in an
474-14 amount sufficient to pay the principal of and the interest on the
474-15 original bonds to their option date or maturity date, and the
474-16 comptroller shall register the refunding bonds without concurrent
474-17 surrender and cancellation of the original bonds.
474-18 Sec. 268.054. APPROVAL AND REGISTRATION OF BONDS. After any
474-19 bonds, including refunding bonds, are authorized by the authority,
474-20 the bonds and the record relating to their issuance shall be
474-21 submitted to the attorney general for examination as to the
474-22 validity of the bonds. If bonds are to be issued to finance in
474-23 whole or in part water-using facilities, the attorney general
474-24 before giving approval shall be furnished a resolution from the
474-25 commission certifying that the authority possesses the necessary
474-26 water right authorizing the authority to impound and appropriate
475-1 the water to be utilized by the project. If the bonds recite that
475-2 they are secured by a pledge of the proceeds of a contract
475-3 previously made between the authority and a city or other
475-4 governmental agency, authority, or district, a copy of the contract
475-5 and the proceedings of the city or other governmental agency,
475-6 authority, or district authorizing the contract shall also be
475-7 submitted to the attorney general. If the attorney general finds
475-8 that the bonds have been authorized and the contracts have been
475-9 made in accordance with the constitution and laws of the state, the
475-10 attorney general shall approve the bonds and the contracts and the
475-11 bonds then shall be registered by the comptroller. After approval
475-12 and registration the bonds, and the contracts, if any, are valid
475-13 and binding and are incontestable for any cause.
475-14 Sec. 268.055. BOND ELECTION REQUIREMENTS. (a) Bonds
475-15 payable wholly or partially from ad valorem taxes, except refunding
475-16 bonds, may not be issued unless authorized by an election at which
475-17 the resident electors cast a majority of the votes in favor of the
475-18 issuance of the bonds. The election shall be held in accordance
475-19 with the provisions of Section 268.057 governing ad valorem tax
475-20 elections.
475-21 (b) Bonds not payable wholly or partially from ad valorem
475-22 taxes may be issued without an election.
475-23 Sec. 268.056. ADMINISTRATION AND MAINTENANCE TAX. (a) The
475-24 board may levy and collect ad valorem taxes for the maintenance and
475-25 improvements of the authority, for administrative expenses of the
475-26 authority, or for both purposes in the amounts voted in accordance
476-1 with the election procedure in Section 268.057.
476-2 (b) The maintenance tax and administration tax shall not
476-3 exceed the maximum rate voted, and the rate shall remain in effect
476-4 unless changed by subsequent vote. The tax rate may not exceed the
476-5 limit specified in Section 268.059.
476-6 Sec. 268.057. ELECTION. An ad valorem tax may not be levied
476-7 or collected for any purpose authorized in this chapter and bonds
476-8 payable wholly or partially from ad valorem taxes, except refunding
476-9 bonds, may not be issued, unless an election is held in the
476-10 authority and the taxes or bonds are duly and favorably voted by a
476-11 majority of the resident electors of the authority voting at the
476-12 election. Each election shall be called by resolution of the
476-13 board. The election resolution shall set forth the date of the
476-14 election, the proposition to be submitted and voted on, the polling
476-15 places, and any other matters considered advisable by the board.
476-16 There shall be at least two polling places in each county that lies
476-17 wholly inside the authority, one of which shall be at the county
476-18 seat. There shall be at least one polling place in the part of
476-19 each county that lies partly inside the authority. Notice of the
476-20 election shall be given by publishing a substantial copy of the
476-21 resolution calling the election in a newspaper or newspapers of
476-22 general circulation in the authority not less than twice in each
476-23 newspaper, with the interval between the publications to be at
476-24 least one week and with the first of each of the publications to be
476-25 at least 14 days prior to the date set for the election. To the
476-26 extent consistent with this section, the election shall be held in
477-1 accordance with the provisions of the Election Code.
477-2 Sec. 268.058. RENDITION, ASSESSMENT, EQUALIZATION, LEVYING,
477-3 AND COLLECTION OF TAXES. (a) The rendition and assessment of
477-4 property for taxation, the equalization of values, and the
477-5 collection of taxes for the benefit of the authority shall be in
477-6 accordance with the law applicable to counties, to the extent that
477-7 the law can be made applicable and except as specifically provided
477-8 in this section.
477-9 (b) The board may act as the board of equalization for the
477-10 authority in all counties that lie wholly or partly in the
477-11 authority or, to the extent authorized or not prohibited by the
477-12 constitution, may delegate the equalization functions for one or
477-13 more of those counties to the county board of equalization for each
477-14 county. In either case, the board of equalization shall have the
477-15 powers, functions, and duties of the commissioners courts in
477-16 counties to equalize the property values in accordance with the law
477-17 applicable to counties, to the extent that the laws can be made
477-18 applicable. If the board delegates the equalization functions to
477-19 one or more county boards of equalization as authorized in this
477-20 subsection, the board shall review the assessments of each county
477-21 board of equalization and shall adjust the assessments as necessary
477-22 to equalize values throughout the authority. Regardless of the
477-23 method used by the authority to accomplish the equalization
477-24 functions, renditions shall be made to the county tax
477-25 assessor-collector of the county in which property contained in the
477-26 authority is located, and the tax assessor-collector of the county
478-1 shall act as the tax assessor-collector for the authority for
478-2 property in the authority located in the county.
478-3 (c) It shall be the duty of the tax assessor-collector in
478-4 each county to place on the county tax rolls the additional column
478-5 or columns needed to show the taxes levied by the authority and the
478-6 amount of the taxes, based on the value of the property as approved
478-7 and equalized by the board. The fee of each county tax
478-8 assessor-collector for assessing and collecting the taxes levied by
478-9 the authority shall be one percent of the taxes collected, to be
478-10 paid over and disbursed in each county as are other fees of office.
478-11 (d) All the laws for the enforcement of state and county
478-12 taxes shall be available to the authority. The authority shall
478-13 have the right to cause the officers of each county to enforce and
478-14 collect the taxes due the authority in that county, as provided in
478-15 the law for the enforcement of state and county taxes.
478-16 (e) Taxes assessed and levied for the benefit of the
478-17 authority shall be payable and shall become delinquent at the same
478-18 time, in the same manner, and subject to the same discount for
478-19 advance payment as taxes levied by and for the benefit of the
478-20 county in which the property is taxable. The fee for collecting
478-21 delinquent taxes through prosecution of suit shall be 15 percent of
478-22 the taxes collected by the suit, to be paid over and disbursed in
478-23 each county as are other fees of office.
478-24 (f) Concurrently with the levy of county taxes by the
478-25 commissioners courts, the board shall levy the tax on all taxable
478-26 property in the authority that is subject to taxation and shall
479-1 immediately certify the tax rate to the tax assessor-collectors of
479-2 the counties that lie wholly or partly inside the authority.
479-3 Sec. 268.059. TAX LIMIT. The maximum rate of tax that may
479-4 be levied for any year for all purposes is 15 cents on each $100 of
479-5 taxable property, based on the assessed valuation of the property.
479-6 Sec. 268.060. TAXATION IN DEFINED AREA. The authority has
479-7 and may exercise, but is not required to exercise, the powers
479-8 specified in Sections 51.510-51.530 relating to improvements
479-9 peculiar to defined areas inside the authority. The tax rate limit
479-10 specified in Section 268.059 does not apply to improvements
479-11 constructed in the exercise of the powers authorized by this
479-12 section. The taxing powers in this section are cumulative of the
479-13 other taxing powers in this chapter.
479-14 Sec. 268.061. BONDS AS LEGAL INVESTMENTS AND SECURITY FOR
479-15 DEPOSITS. Bonds and refunding bonds of the authority are legal,
479-16 eligible, and authorized investments for banks; savings and loan
479-17 associations; insurance companies; fiduciaries; trustees; the
479-18 sinking funds of cities, towns, villages, counties, school
479-19 districts, or any other political corporations or subdivisions of
479-20 the state; and all public funds of the state or its agencies,
479-21 including the state permanent school fund. Bonds and refunding
479-22 bonds are eligible to secure the deposit of all public funds of the
479-23 state, cities, towns, villages, counties, school districts, or
479-24 other political corporations or subdivisions of the state, and the
479-25 bonds are lawful and sufficient security for the deposits to the
479-26 extent of the face value of the bonds, when accompanied by all
480-1 unmatured coupons.
480-2 CHAPTER 269. RED RIVER AUTHORITY OF TEXAS
480-3 Sec. 269.001. CREATION. (a) A conservation and reclamation
480-4 district to be known as the "Red River Authority of Texas" is
480-5 created. The authority is a governmental agency and a body politic
480-6 and corporate.
480-7 (b) The authority is created under and is essential to
480-8 accomplish the purposes of Section 59, Article XVI, Texas
480-9 Constitution.
480-10 Sec. 269.002. DEFINITIONS. In this chapter:
480-11 (1) "Authority" means the Red River Authority of
480-12 Texas.
480-13 (2) "Board" means the board of directors of the
480-14 authority.
480-15 (3) "Director" means a member of the board.
480-16 Sec. 269.003. TERRITORY. (a) The area of the authority
480-17 comprises the whole of all counties in Texas lying wholly or partly
480-18 within the watershed of the Red River and its Texas tributaries
480-19 whose confluences with the Red River are upstream from the
480-20 northeast corner of Bowie County, Texas, according to contour maps
480-21 on file in the office of the Texas Water Development Board.
480-22 (b) In addition to the counties lying wholly or partly
480-23 within the watershed, the area of the authority shall also comprise
480-24 the whole of the following Texas counties: Hutchinson, Hartley,
480-25 Lamar, Lipscomb, and Red River.
480-26 (c) For the limited purpose stated in Section 269.019, the
481-1 authority shall include Bowie County. Except as provided by
481-2 Section 269.019, none of the provisions of this chapter apply to
481-3 the following counties: Delta, Hopkins, Franklin, Titus, Morris,
481-4 Cass, Marion, and Bowie.
481-5 (d) No defect or irregularity in the boundary of the
481-6 authority, or overlap or conflict of the boundary with other
481-7 authorities or districts, shall in any manner affect the validity
481-8 of the authority. The legislature finds and determines that all of
481-9 the territory comprising the authority will benefit from the
481-10 exercise of the powers, rights, privileges, and functions conferred
481-11 by this chapter.
481-12 Sec. 269.004. OVERLAPPING TERRITORY. (a) Any overlapping
481-13 of territory of the authority with the territories or watershed of
481-14 any other district or authority shall not interfere with or affect
481-15 the powers, affairs, duties, or functions of the Canadian River
481-16 Municipal Water Authority or any other district or authority.
481-17 (b) Additional districts or authorities of a local nature
481-18 and peculiar to a defined area may be created either entirely or
481-19 partly within the authority.
481-20 (c) In the prosecution of its proposed improvements, the
481-21 authority shall cooperate in every practical manner with the
481-22 sponsors of existing or proposed districts or authorities.
481-23 Sec. 269.005. BOARD OF DIRECTORS. (a) All powers of the
481-24 authority shall be exercised by a board consisting of nine
481-25 directors.
481-26 (b) A director must be a freehold property taxpayer, a legal
482-1 voter of the state, and a resident of the director district that
482-2 the director is appointed to represent.
482-3 (c) The authority is divided into three districts for the
482-4 appointment and representation of directors as follows:
482-5 (1) Director District No. 1 includes Roberts,
482-6 Hemphill, Oldham, Potter, Carson, Gray, Wheeler, Deaf Smith,
482-7 Randall, Armstrong, Donley, Collingsworth, Parmer, and Castro
482-8 counties;
482-9 (2) Director District No. 2 includes Swisher, Briscoe,
482-10 Hall, Childress, Hale, Floyd, Motley, Cottle, Hardeman, Foard,
482-11 Wilbarger, Wichita, Crosby, Dickens, King, Knox, Baylor, Archer,
482-12 and Clay counties; and
482-13 (3) Director District No. 3 includes Montague, Cooke,
482-14 Grayson, Fannin, Lamar, Red River, and Bowie counties.
482-15 (d) Three directors shall be appointed from each of the
482-16 director districts.
482-17 (e) Each director is appointed by the governor with the
482-18 advice and consent of the senate.
482-19 (f) Directors serve for staggered six-year terms, holding
482-20 office after their appointment and qualification until their
482-21 successors are appointed and have qualified. If a vacancy occurs
482-22 on the board, the vacancy is filled by the governor in the manner
482-23 provided by this section for the unexpired term.
482-24 (g) Within 15 days after appointment, each director shall
482-25 qualify by taking the official oath and filing with the secretary
482-26 of state, and obtaining the secretary of state's approval of, a
483-1 good and sufficient bond in the amount of $5,000, payable to the
483-2 authority and conditioned on the faithful performance of the
483-3 director's duties.
483-4 Sec. 269.006. OFFICERS; VOTING REQUIREMENTS; WARRANTS. The
483-5 board shall elect a president, vice president, secretary, and
483-6 treasurer. Five directors constitute a quorum at any meeting, and
483-7 a concurrence of a majority of those present is sufficient in all
483-8 matters pertaining to the business of the authority, except that
483-9 the letting of construction contracts, and the authorization of the
483-10 issuance of warrants paying such contracts, require the concurrence
483-11 of seven directors. Warrants for the payment of money may be drawn
483-12 and signed by two officers or employees designated by standing
483-13 order entered in the minutes of the authority when such accounts
483-14 have been contracted and ordered paid by the board.
483-15 Sec. 269.007. DIRECTOR AND EMPLOYEE BONDS. The board shall
483-16 require an officer or employee who collects, pays, or handles any
483-17 funds of the authority to furnish good and sufficient bond, payable
483-18 to the authority, in an amount determined by the board to be
483-19 sufficient to safeguard the authority. The bond shall be
483-20 conditioned on the faithful performance of the person's duties and
483-21 on the person's accounting for all funds and property of the
483-22 authority.
483-23 Sec. 269.008. DUTIES OF OFFICERS. The president is the
483-24 chief executive officer of the authority and presides at board
483-25 meetings. The vice president acts as president in case of the
483-26 absence or disability of the president. The secretary is
484-1 responsible for keeping a record of all proceedings and all orders
484-2 of the board. The treasurer shall receive and receipt for all
484-3 funds received and expended. In case of the absence of the
484-4 secretary or the inability of the secretary to act, a secretary pro
484-5 tempore shall be selected by the board.
484-6 Sec. 269.009. RECORDS; AUTHORITY OFFICE. Records of the
484-7 authority shall be kept in a secure manner. The records are the
484-8 property of the authority and are subject to public inspection
484-9 during regular office hours. An office shall be established and
484-10 maintained within the authority, at a place determined by the
484-11 board, for the conduct of the authority's business.
484-12 Sec. 269.010. ACCOUNT RECORDS; AUDIT. (a) The authority
484-13 shall keep a complete book of accounts, and the account books and
484-14 records of the authority and of the depository of the authority
484-15 shall be audited by a certified public accountant annually as soon
484-16 as practicable after the end of the authority's fiscal year.
484-17 (b) The audit required by this section shall cover a fiscal
484-18 year ending September 30 of each year and a report on the audit
484-19 shall be submitted at the first regular meeting of the board after
484-20 the end of the fiscal year. A copy shall be filed in the office of
484-21 the authority, the depository of the authority, the office of the
484-22 auditor, and the commission and shall be open to public inspection.
484-23 Sec. 269.011. DIRECTOR FEES. (a) A director is entitled to
484-24 receive a fee not to exceed $25 per day for each day of service
484-25 necessary to the discharge of the director's duties, in addition to
484-26 all traveling expenses, provided the service is authorized by the
485-1 board.
485-2 (b) The directors shall file with the secretary on the last
485-3 day of each month, or as soon after that date as practicable, a
485-4 verified statement showing the actual amount of the fees due, and
485-5 warrants shall be issued for those amounts.
485-6 Sec. 269.012. GENERAL MANAGER AND EMPLOYEES. (a) The board
485-7 may employ a general manager for the authority and may delegate to
485-8 the general manager full authority to manage and operate the
485-9 affairs of the authority subject only to orders of the board. The
485-10 general manager's term of office and compensation shall be
485-11 determined by the board.
485-12 (b) The terms of employment and compensation of all
485-13 authority employees shall be determined by the board.
485-14 (c) A director may be employed as general manager of the
485-15 authority, but the compensation of a general manager who also
485-16 serves as a director shall be determined by a majority of the other
485-17 directors. A director who is employed as the general manager of
485-18 the authority shall continue to perform the duties of a director
485-19 but may not receive compensation as a director.
485-20 Sec. 269.013. SURETY BONDS. All bonds required to be given
485-21 by directors, officers, and employees of the authority shall be
485-22 executed by a surety company authorized to do business in this
485-23 state. The premiums on such bonds shall be paid by the authority.
485-24 Sec. 269.014. CONFLICT OF INTEREST; PENALTY. A director,
485-25 engineer, or employee of the authority may not be interested,
485-26 directly or indirectly, either for themselves or as agents for
486-1 anyone else, in any contract for the purchase of materials or the
486-2 construction of work by the authority. If a director, engineer, or
486-3 employee becomes interested, directly or indirectly, in such a
486-4 contract, the person shall be guilty of a misdemeanor and on
486-5 conviction shall be punished by a fine not to exceed $1,000, by
486-6 confinement in the county jail for not less than six months or more
486-7 than one year, or by both fine and imprisonment.
486-8 Sec. 269.015. GENERAL POWERS AND DUTIES. (a) The authority
486-9 shall have all the powers of the state under Section 59, Article
486-10 XVI, Texas Constitution, to effectuate flood control and the
486-11 conservation and use, for all beneficial purposes, of the storm
486-12 waters, floodwaters, and unappropriated waters of the Red River
486-13 watershed and its Texas tributaries, subject only to:
486-14 (1) declarations of policy by the legislature as to
486-15 use of water;
486-16 (2) continuing supervision and control by the
486-17 commission or any successor agency;
486-18 (3) the provisions of Section 11.024 prescribing the
486-19 priorities of uses of water; and
486-20 (4) water rights legally acquired at any time by
486-21 municipalities and other users.
486-22 (b) The authority shall exercise the powers described by
486-23 this section, to the greatest practicable extent, for the
486-24 conservation and beneficial utilization of the storm waters,
486-25 floodwaters, and unappropriated waters of the Red River watershed
486-26 and its Texas tributaries in the manner and for the purposes
487-1 specified in this section and in this chapter, including the power
487-2 to:
487-3 (1) provide for the study, correcting, and control of
487-4 both artificial and natural pollution of the Red River and its
487-5 tributaries;
487-6 (2) provide, through all practical and legal means,
487-7 for the control, conservation, and orderly development of the
487-8 watershed and water of the Red River and its Texas tributaries;
487-9 (3) provide for the preservation of the equitable
487-10 rights and beneficial use of the waters of the Red River and its
487-11 Texas tributaries for the people of the different sections of the
487-12 authority;
487-13 (4) provide for storing, controlling, and conserving
487-14 the waters of the Red River and its Texas tributaries in order to
487-15 prevent the escape of any of such waters without the maximum of
487-16 public service, prevent the devastation of lands from recurrent
487-17 overflows, and protect life and property in the watershed areas
487-18 from uncontrolled floodwaters;
487-19 (5) provide for the conservation of storm waters,
487-20 floodwaters, and unappropriated waters of the Red River watershed
487-21 and its Texas tributaries essential for the beneficial uses of the
487-22 people of the watersheds of the Red River and its Texas
487-23 tributaries;
487-24 (6) provide for the encouragement and development of
487-25 drainage systems and for drainage of lands needing drainage for
487-26 profitable agricultural production;
488-1 (7) provide for the conservation of all soils against
488-2 destructive erosion and prevent the increased risk of flood caused
488-3 by destructive soil erosion; and
488-4 (8) in all sections of the authority, control and make
488-5 storm waters, floodwaters, and unappropriated waters of the Red
488-6 River watershed available for employment in the development of
488-7 commercial, industrial, and agricultural enterprises and for all
488-8 purposes for which such waters, when controlled and conserved, may
488-9 be utilized in the performance of a useful service as contemplated
488-10 and authorized by the provisions of the constitution and the public
488-11 policy it declares.
488-12 (c) The authority may sue and be sued in its own name.
488-13 (d) The authority shall prepare a master plan for the
488-14 maximum development of the soil and water resources of the entire
488-15 Red River watershed within the authority, including plans for the
488-16 complete utilization, for all economically beneficial purposes, of
488-17 the water resources of the watershed. That portion of the master
488-18 plan and any amendments to the plan relating to soil conservation
488-19 and upstream flood prevention and watershed protection works in
488-20 furtherance of those purposes shall be prepared by the soil
488-21 conservation districts on the Red River watershed, subject to
488-22 approval by the State Soil and Water Conservation Board. The
488-23 master plan shall be filed with and approved by the commission.
488-24 (e) For the purpose of pollution control as provided by
488-25 Subsection (b)(1), the authority may promulgate rules and
488-26 regulations with regard to pollution, both artificial and natural,
489-1 and possesses police power to enforce its rules and regulations.
489-2 The authority may provide for a penalty for a violation of its
489-3 pollution rules consisting of a fine not to exceed $1,000 or
489-4 confinement in the county jail for not more than 30 days or both
489-5 such fine and confinement. For the purposes of this subsection,
489-6 the provisions of the general law pertaining to water control and
489-7 improvement districts shall govern, except as expressly provided by
489-8 this chapter.
489-9 Sec. 269.016. POWERS RELATING TO NAVIGATION, RECREATIONAL
489-10 FACILITIES, AND WATER TREATMENT. (a) In addition to other
489-11 purposes authorized by law, the authority is vested with all the
489-12 powers of the state under Section 59, Article XVI, Texas
489-13 Constitution, and with all the powers, rights, privileges, and
489-14 functions conferred upon navigation districts by general law.
489-15 (b) The authority may:
489-16 (1) promote, construct, maintain, and operate or aid
489-17 and encourage the construction, maintenance, and operation of
489-18 navigable canals or waterways, and all navigational systems or
489-19 facilities auxiliary to the canals or waterways, using the natural
489-20 bed and banks of the Red River, where practicable, and traversing
489-21 the route found by the authority to be the most feasible and
489-22 practicable to connect the Red River in Texas with any new
489-23 navigation canals to be constructed in the lower reaches of the Red
489-24 River or to connect the Red River with the Intracoastal Waterway,
489-25 and to construct or cause to be constructed a system of artificial
489-26 waterways and canals together with all locks and other works,
490-1 structures, and artificial facilities necessary and convenient for
490-2 the construction, maintenance, and operation of navigation canals
490-3 or waterways and all navigational systems and facilities auxiliary
490-4 to the canals or waterways;
490-5 (2) acquire, purchase, improve, extend, take over,
490-6 construct, maintain, repair, operate, develop, and regulate ports,
490-7 levees, wharves, docks, locks, warehouses, grain elevators, dumping
490-8 facilities, belt railways, lands, and all other facilities or aids
490-9 to navigation or aids necessary to the operation or development of
490-10 ports or waterways within the Red River Basin in Texas; provided,
490-11 however, that the powers conferred on the authority under the
490-12 provisions of this subdivision extend to a facility or aid
490-13 authorized under this subdivision only if the facility or aid is
490-14 situated in a county or counties included as part of the authority;
490-15 (3) acquire by gift or purchase properties of any
490-16 kind, including lighters, tugs, barges, and other floating
490-17 equipment of any nature, whether the property is real, personal, or
490-18 mixed, or any interest in property, within or outside the
490-19 boundaries of the authority necessary to the exercise of the
490-20 powers, rights, privileges, and functions conferred on the
490-21 authority by this chapter and may acquire property by condemnation
490-22 in the manner provided by Section 269.025; provided, however, that
490-23 the authority shall not be required to give bond for appeal or bond
490-24 for costs in any judicial proceedings;
490-25 (4) control, develop, store, and use the natural flow
490-26 and floodwaters of the Red River and its Texas tributaries for the
491-1 purpose of operating and maintaining the navigable canals or
491-2 waterways and all navigational systems or facilities auxiliary to
491-3 the canals or waterways; provided, however, that the navigational
491-4 use shall be subordinate to the consumptive use of water, and
491-5 navigation shall be incidental to the consumptive use of water; and
491-6 (5) effectuate the construction, maintenance, and
491-7 operation of bank stabilization facilities or channel rectification
491-8 or alignment to prevent and aid in preventing the devastation of
491-9 lands from recurrent overflows and to protect life and property in
491-10 the watershed of the Red River in Texas or any tributaries of the
491-11 river within the authority from uncontrolled floodwaters and may
491-12 store and conserve to the greatest beneficial use the storm waters,
491-13 floodwaters, and unappropriated waters of the Red River in Texas or
491-14 any tributaries of the river within the authority so as to prevent
491-15 the escape of any water without maximum beneficial use either
491-16 within or outside the boundaries of the authority.
491-17 (c) If the construction or maintenance and operation of
491-18 navigable canals or waterways, and all navigational systems or
491-19 facilities auxiliary to the canals or waterways, on the Red River
491-20 in Texas is taken over or performed by the federal government or
491-21 any agency of the federal government, the authority may make and
491-22 enter into any contracts lawfully required by the federal
491-23 government, including assignments and transfers of property and
491-24 rights of property and easements and privileges and any and all
491-25 other lawful things and acts necessary and required in order to
491-26 meet the requirements of the federal government or any agency of
492-1 the federal government in taking over the construction or
492-2 maintenance and operation of the navigable canals or waterways and
492-3 all navigational systems or facilities auxiliary to the canals or
492-4 waterways.
492-5 (d) The authority may acquire additional land adjacent to
492-6 any permanent improvement constructed within the authority,
492-7 regardless of when it was constructed, for the purpose of
492-8 developing public parks and recreational facilities and may acquire
492-9 necessary right-of-way for public ingress and egress to such areas.
492-10 (e) The authority may provide recreational facilities and
492-11 services and may enter into contracts and agreements with the
492-12 federal government or any agency of the federal government, the
492-13 Parks and Wildlife Department, or any county, municipality,
492-14 municipal corporation, person, firm, or nonprofit organization for
492-15 the construction, operation, and maintenance of the park or
492-16 recreational facility. The authority shall coordinate the
492-17 development of any public parks and recreational facilities with
492-18 the Parks and Wildlife Department for conformity with the State
492-19 Comprehensive Outdoor Recreation Plan. The authority may perform
492-20 all functions necessary to qualify for state or federal
492-21 recreational grants and loans.
492-22 (f) In addition to other purposes previously authorized by
492-23 law and as a necessary aid to the conservation, control,
492-24 preservation, and distribution of water for beneficial use, the
492-25 authority is authorized to purchase, construct, improve, repair,
492-26 operate, and maintain works and facilities necessary for the
493-1 collection, transportation, treatment, and disposal of sewage and
493-2 industrial waste and effluent and to issue negotiable bonds for
493-3 those purposes. The authority may make contracts with cities and
493-4 others under which the authority will collect, transport, treat,
493-5 and dispose of sewage from the cities or other entities. The
493-6 authority may also make contracts with any city for the use of any
493-7 collection, transportation, treatment, or disposal facilities owned
493-8 by the city or by the authority.
493-9 (g) Bonds issued under this section are payable from
493-10 revenues under any contract or contracts described in this chapter
493-11 or from other income of the authority. The bonds shall be in the
493-12 form and shall be issued in the manner prescribed by law for other
493-13 revenue bonds and as provided by Sections 269.033, 269.034,
493-14 269.035, and 269.036.
493-15 Sec. 269.017. ADDITIONAL PROVISIONS REGARDING CONTRACTS,
493-16 BONDS, FEES, AND MANAGEMENT OF AUTHORITY PROPERTY. (a) In this
493-17 section:
493-18 (1) "Person" means:
493-19 (A) an individual, partnership, corporation, or
493-20 other private entity; and
493-21 (B) a public agency.
493-22 (2) "Public agency" means an authority, district,
493-23 city, town, other political subdivision, joint board, or other
493-24 public agency created and operating under the laws of this state.
493-25 (b) The authority and all persons may contract, on terms and
493-26 conditions to which the parties may agree, with respect to any
494-1 power, function, or duty of the authority and may execute all
494-2 appropriate documents and instruments in connection with the
494-3 contract. The authority may issue bonds with respect to any of its
494-4 powers in the manner provided by Section 269.033, including the
494-5 powers granted in this section for the purpose of providing funds:
494-6 (1) to pay for the costs of engineering design and
494-7 studies, surveys, title research, appraisals, options on real or
494-8 personal property, and other related matters and activities in
494-9 connection with planning and implementing proposed projects or
494-10 improvements; and
494-11 (2) to operate and maintain any facilities.
494-12 (c) The authority may invest its funds, including bond
494-13 proceeds, in any manner or in any securities determined by the
494-14 board.
494-15 (d) Notwithstanding any provisions of this chapter and in
494-16 addition to all other powers granted by this chapter or by any
494-17 other law, the authority may undertake and carry out any
494-18 activities; enter into loan agreements, leases, or installment sale
494-19 agreements; and acquire, purchase, construct, own, operate,
494-20 maintain, repair, improve, or extend and may loan, lease, sell, or
494-21 otherwise dispose of, on terms and conditions including rentals,
494-22 sale price, or installment sale payments as the parties may agree,
494-23 at any place or location within the boundaries of the authority,
494-24 any and all money or bond proceeds, works, improvements,
494-25 facilities, plants, buildings, structures, equipment, and
494-26 appliances, and all property or any interest in property, that are
495-1 incident, helpful, or necessary to the accomplishment of the
495-2 purposes of this chapter.
495-3 (e) The authority may exercise the powers listed in
495-4 Subsection (d) to:
495-5 (1) provide for the control, storage, preservation,
495-6 transmission, treatment, distribution, and use of water, including
495-7 storm water, floodwater, and the water of rivers and streams, for
495-8 irrigation, electric energy or power, flood control, municipal,
495-9 domestic, industrial, agricultural, and commercial uses and
495-10 purposes and for all other beneficial purposes;
495-11 (2) supply water for municipal, domestic, electric
495-12 energy or power, industrial, irrigation, oil flooding, mining,
495-13 agricultural, and commercial uses and purposes and for all other
495-14 beneficial uses and purposes;
495-15 (3) generate, produce, distribute, and sell electric
495-16 energy or power; and
495-17 (4) facilitate the carrying out of any power, duty, or
495-18 function of the authority.
495-19 (f) It is found and determined by the legislature that all
495-20 of the purposes stated in Subsection (e) are for the conservation
495-21 and development of the natural resources of this state within the
495-22 meaning of Section 59, Article XVI, Texas Constitution.
495-23 (g) Each public agency may set, charge, and collect fees,
495-24 rates, charges, rentals, and other amounts for any services or
495-25 facilities provided by a utility operated by it or provided
495-26 pursuant to or in connection with any contract with the authority.
496-1 The fees, rates, charges, rentals, and other amounts may be charged
496-2 to and collected from inhabitants or from any users or
496-3 beneficiaries of that utility, service, or facility. Such fees,
496-4 rates, charges, rentals, and other amounts may include water
496-5 charges, sewage charges, solid waste disposal system fees and
496-6 charges, including garbage collection or handling fees, and other
496-7 fees or charges.
496-8 (h) The fees, rates, charges, rentals, and other amounts
496-9 authorized by this section may be used or pledged to make payments
496-10 to the authority required under the contract and may be pledged in
496-11 amounts sufficient to make all or any part of those payments to the
496-12 authority when due. The payments, if the parties agree in the
496-13 contract, constitute an expense of operation of any facilities or
496-14 utility operated by the public agency; provided, however, that an
496-15 agreement may not be made that would violate the United States or
496-16 Texas constitutions.
496-17 (i) This section is wholly sufficient authority for the
496-18 issuance of bonds, the execution of contracts, and the performance
496-19 of the other acts and procedures authorized in this chapter by the
496-20 authority and other persons, including public agencies, without
496-21 reference to any other law or any restrictions or limitations
496-22 included in any other law. To the extent of any conflict or
496-23 inconsistency between this subsection and any other law including a
496-24 home-rule city charter, this section prevails and controls;
496-25 provided, however, that the authority and other persons, including
496-26 public agencies, may use any other law not in conflict with this
497-1 subsection to the extent convenient or necessary to carry out any
497-2 power or authority granted by this section.
497-3 (j) This section does not compel any person, including a
497-4 public agency, to secure water, sewer service, or any other service
497-5 from the authority, except under voluntarily executed contracts.
497-6 Sec. 269.018. GASOHOL AND INDUSTRIAL ALCOHOL. (a) On
497-7 acquisition of any necessary authorization as provided by law, the
497-8 authority may engage in the manufacture and production of gasohol
497-9 only for use in operating equipment of the authority in an
497-10 emergency as determined by the general manager of the authority.
497-11 (b) The authority is eligible for a local industrial alcohol
497-12 manufacturer's permit under Chapter 47, Alcoholic Beverage Code, as
497-13 if it were an eligible Texas corporation, but its authority under
497-14 the permit is limited as provided by Subsection (a).
497-15 Sec. 269.019. LIMITED USE OF BOWIE COUNTY TERRITORY.
497-16 (a) Bowie County is added to the authority for the limited purpose
497-17 of participating in the United States Army Corps of Engineers Red
497-18 River Bank Stabilization and Navigation Project from Index,
497-19 Arkansas, to Denison Dam, and this chapter shall apply to Bowie
497-20 County to the extent necessary to accomplish that project.
497-21 (b) Bowie County is liable only for debt incurred by the
497-22 authority directly in connection with the Red River Bank
497-23 Stabilization and Navigation Project, and the board may exercise
497-24 the duties and powers, including the power of eminent domain, under
497-25 this chapter with relation to Bowie County only to the extent
497-26 necessary to accomplish that project.
498-1 Sec. 269.020. LIMITATION OF AUTHORITY; COMMISSION
498-2 SUPERVISION. The powers and duties granted to the authority by
498-3 this chapter are subject to all legislative declarations of public
498-4 policy for the maximum use of the waters of the authority's
498-5 watersheds for the purposes for which the authority is created. In
498-6 the exercise of its powers and duties the authority shall be
498-7 subject to continuing supervision by the state. The supervision
498-8 shall be exercised through the commission or its successor agency,
498-9 and the commission is charged with the authority and duty to
498-10 approve or to refuse to approve the adequacy and feasibility of any
498-11 plan or plans for flood control or conservation devised for the
498-12 achievement of the purposes intended in the creation of the
498-13 authority.
498-14 Sec. 269.021. CONTRACTS WITH PUBLIC ENTITIES. The authority
498-15 may execute contracts and enter into agreements necessary to
498-16 accomplish the purposes for which it is created. The authority is
498-17 authorized to enter into contracts with cities, corporations,
498-18 districts, the United States and its agencies, the state and its
498-19 agencies, or the states of Oklahoma, Arkansas, and Louisiana, the
498-20 confines of which are contiguous or adjacent to the Red River.
498-21 Sec. 269.022. CONTRACTS FOR WATER SYSTEMS; ACQUISITION OF
498-22 WATER RIGHTS. The authority is expressly authorized to contract
498-23 with cities, towns, or villages located within its boundaries for
498-24 the purchase, lease, use, management, control, or operation of
498-25 water distribution plants or systems owned by the cities, towns, or
498-26 villages, in accordance with such terms and conditions as may be
499-1 mutually agreed upon by the governing bodies of the authority and
499-2 the cities, towns, or villages. The authority may acquire by any
499-3 such contract surface water or groundwater rights belonging to a
499-4 city, town, or village; provided, however, that the authority shall
499-5 devote any water rights so acquired only to the uses the city,
499-6 town, or village from which the water rights were acquired would be
499-7 authorized to make of them. The authority shall use any water
499-8 rights acquired as provided by this section only for the purposes
499-9 of the water distribution plant or system of the city, town, or
499-10 village from which the water rights were acquired.
499-11 Sec. 269.023. WATER DELIVERY TO ELDORADO, OKLAHOMA. The
499-12 authority may enter into any contracts necessary to provide for the
499-13 sale and delivery of water to the City of Eldorado, Oklahoma.
499-14 Sec. 269.024. LOANS AND GRANTS. For the purpose of
499-15 providing funds requisite to secure the necessary studies,
499-16 engineering, and other services which may be necessary and to the
499-17 collection and computation of data respecting regional and general
499-18 conditions influencing the character and extent of the improvements
499-19 necessary to effect the purposes of the creation of the authority
499-20 to the greatest public advantage, the authority may solicit, seek
499-21 and accept contributions to its funds from any other district,
499-22 authority, or municipality, the federal government, the state, or
499-23 any other source. All grants and gratuities shall be strictly
499-24 accounted for and shall be subject to the same rules, regulations,
499-25 and orders as are other funds handled or disbursed by the
499-26 authority.
500-1 Sec. 269.025. EMINENT DOMAIN. The authority is vested with
500-2 the right of eminent domain in the manner provided by general law
500-3 pertaining to water control and improvement districts. If the
500-4 authority, in the exercise of the power of eminent domain or power
500-5 of relocation or any other power granted under this chapter, makes
500-6 necessary the relocation, raising, rerouting, changing the grade,
500-7 or altering the construction of any highway, railroad, electric
500-8 transmission line, telephone or telegraph properties and
500-9 facilities, or pipeline, all such necessary relocation, raising,
500-10 rerouting, changing of grade, or alteration of construction shall
500-11 be accomplished at the sole expense of the authority.
500-12 Sec. 269.026. ADDITIONAL POWERS. (a) Except as provided by
500-13 Subsection (b), the authority has and may exercise the functions,
500-14 powers, authority, rights, and duties necessary to accomplish the
500-15 purposes for which the authority is created, including
500-16 investigating and planning, acquiring, constructing, maintaining,
500-17 and operating all necessary properties, lands, rights, tenements,
500-18 easements, improvements, reservoirs, dams, canals, laterals,
500-19 plants, works, and facilities, including the acquisition within or
500-20 outside the authority of lands, rights-of-way, water rights, and
500-21 all other properties, tenements, easements, and other rights
500-22 incident, helpful to, or in aid of carrying out the purposes of the
500-23 authority as provided in this chapter.
500-24 (b) The authority may not engage in the generation or
500-25 distribution of electric power except as provided by Section
500-26 269.017. The right of eminent domain shall not be exercised and
501-1 shall not extend beyond the boundaries of the authority.
501-2 Sec. 269.027. FEES AND CHARGES. (a) The authority shall
501-3 establish and collect rates and other charges for the sale or use
501-4 of water or for its services sold, furnished, or supplied. The
501-5 fees and charges shall be reasonable and nondiscriminatory but
501-6 sufficient to produce revenues adequate to pay the expenses of the
501-7 authority in carrying out the functions for which it is created and
501-8 to fulfill the terms of any agreements made with the holders of any
501-9 of its obligations.
501-10 (b) The rates and charges for the sale or use of water
501-11 provided by this section shall be subject to review by the
501-12 commission as provided by general law.
501-13 Sec. 269.028. APPROVAL OF BONDS AND WARRANTS PRIOR TO
501-14 ISSUANCE. While the authority is expressly given the power to
501-15 issue its obligations or warrants for furnishing funds, before the
501-16 obligations or warrants may be issued, they shall bear the approval
501-17 of the state, acting through the attorney general.
501-18 Sec. 269.029. AUTHORITY PROCEDURES; SEAL. The authority
501-19 shall make bylaws for the management and regulation of its affairs,
501-20 including:
501-21 (1) adopting and using a corporate seal;
501-22 (2) appointing officers, attorneys, agents, and
501-23 employees and prescribing their duties and setting their
501-24 compensation;
501-25 (3) making contracts and executing instruments
501-26 necessary or convenient to the exercise of the powers, rights,
502-1 privileges, and functions conferred on the authority by this
502-2 chapter and the general laws of the state pertaining to water
502-3 control and improvement districts;
502-4 (4) borrowing money for its corporate purposes;
502-5 (5) borrowing money and accepting grants from the
502-6 United States, the state, or any other source; and
502-7 (6) in connection with any loan or grant, entering
502-8 into such agreements and assuming such obligations as may be
502-9 required.
502-10 Sec. 269.030. AUTHORITY DEPOSITORY. The board shall
502-11 designate one or more banks within the authority to serve as
502-12 depository for the funds of the authority. All funds of the
502-13 authority shall be deposited in the depository bank or banks,
502-14 except that funds pledged to pay bonds may be deposited with the
502-15 trustee bank named in the trust agreement and except that funds
502-16 shall be remitted to the bank of payment for the payment of
502-17 principal of and interest on bonds. To the extent that funds in
502-18 the depository banks and the trustee bank are not insured by the
502-19 Federal Deposit Insurance Corporation, the funds shall be secured
502-20 in the manner provided by law for the security of county funds.
502-21 Sec. 269.031. TAXES. Nothing in this chapter shall be
502-22 construed as authorizing the authority to levy or collect any form
502-23 of tax within the authority.
502-24 Sec. 269.032. GROUNDWATER. Nothing in this chapter shall be
502-25 construed as authorizing the authority to acquire, regulate, or
502-26 control in any way groundwater or groundwater rights by
503-1 condemnation, purchase, or otherwise or to develop, regulate, or
503-2 control the use of groundwater resources in any manner. This
503-3 chapter is intended to govern and shall be construed to govern and
503-4 apply to surface water only.
503-5 Sec. 269.033. BOND ISSUANCE. (a) For the purpose of
503-6 providing funds for any purpose authorized by this chapter, the
503-7 authority may issue bonds as authorized by this chapter. The
503-8 authority may, without the necessity of an election, issue bonds to
503-9 be payable from the revenues of the authority as pledged by
503-10 resolution of the board.
503-11 (b) Bonds must be authorized by resolution of the board and
503-12 shall be issued in the name of the authority, signed by the
503-13 president or vice president, attested by the secretary, and have
503-14 the seal of the authority impressed on the bonds.
503-15 (c) Bonds must mature serially or otherwise in not to exceed
503-16 50 years and may be sold at a price and under terms determined by
503-17 the board to be the most advantageous reasonably obtainable;
503-18 provided, however, that the interest rate on the bonds may not
503-19 exceed the maximum net effective interest rate, as that term is
503-20 defined by Chapter 1204, Government Code, that is legally
503-21 authorized at the time the bonds are issued. Within the discretion
503-22 of the board, bonds may be made callable prior to maturity at such
503-23 times and prices as may be prescribed in the resolution authorizing
503-24 the bonds and may be made registrable as to principal or as to both
503-25 principal and interest.
503-26 (d) Bonds may be issued in more than one series and from
504-1 time to time as required for carrying out the purposes of this
504-2 chapter.
504-3 (e) Bonds may be secured by a pledge of all or part of the
504-4 net revenues of the authority, of the net revenues of one or more
504-5 contracts made before or after the bonds are issued, or of other
504-6 revenues specified by resolution of the board. A pledge may
504-7 reserve the right, under conditions specified in the pledge, to
504-8 issue additional bonds which will be on a parity with or
504-9 subordinate to the bonds being issued. In this section, "net
504-10 revenues" means the gross revenues of the authority less the amount
504-11 necessary to pay the cost of maintaining and operating the
504-12 authority and its properties.
504-13 (f) The board shall set, and from time to time revise, rates
504-14 of compensation for water sold and services rendered by the
504-15 authority that will be sufficient to pay the expense of operating
504-16 and maintaining the facilities of the authority and to pay bonds as
504-17 they mature and the interest as it accrues and to maintain the
504-18 reserve and other funds as provided in the resolution authorizing
504-19 the bonds.
504-20 (g) From the proceeds of the sale of the bonds, the
504-21 authority may set aside an amount for the payment of interest
504-22 expected to accrue during construction and for a reserve interest
504-23 and sinking fund, and such provision may be made in the resolution
504-24 authorizing the bonds. Proceeds from the sale of the bonds may
504-25 also be used for the payment of all expenses necessarily incurred
504-26 in accomplishing the purposes for which the authority is created.
505-1 (h) In the event of a default or a threatened default in the
505-2 payment of principal of or interest on any of the bonds of the
505-3 authority any court of competent jurisdiction may, on petition of
505-4 the holders of 25 percent of the outstanding bonds of the issue in
505-5 default or threatened with default, appoint a receiver with
505-6 authority to collect and receive all income of the authority,
505-7 employ and discharge agents and employees of the authority, take
505-8 charge of the authority's funds on hand, and manage the proprietary
505-9 affairs of the authority without consent or hindrance by the board.
505-10 The receiver may also be authorized to sell or make contracts for
505-11 the sale of water or to renew such contracts with the approval of
505-12 the court appointing the receiver. The court may vest the receiver
505-13 with other powers and duties the court finds necessary for the
505-14 protection of the holders of the bonds.
505-15 Sec. 269.034. REFUNDING BONDS. (a) The authority may issue
505-16 refunding bonds for the purpose of refunding any outstanding bonds
505-17 authorized by this chapter and interest on the bonds. Refunding
505-18 bonds may be issued to refund more than one series of outstanding
505-19 bonds and may combine the pledges for the outstanding bonds for the
505-20 security of the refunding bonds, and refunding bonds may be secured
505-21 by other or additional revenues.
505-22 (b) The provisions of this chapter with reference to the
505-23 issuance of other bonds and their approval by the attorney general
505-24 and the remedies of the holders shall be applicable to refunding
505-25 bonds. Refunding bonds shall be registered by the comptroller on
505-26 surrender and cancellation of the bonds to be refunded, but in lieu
506-1 of that procedure, the resolution authorizing the issuance of the
506-2 refunding bonds may provide that the refunding bonds be sold and
506-3 the proceeds of the sale deposited in the bank where the original
506-4 bonds are payable, in which case the refunding bonds may be issued
506-5 in an amount sufficient to pay the interest on the original bonds
506-6 to their option date or maturity date, and the comptroller shall
506-7 register the refunding bonds without concurrent surrender and
506-8 cancellation of the original bonds.
506-9 Sec. 269.035. DEED OF TRUST LIEN. (a) Any bonds, including
506-10 refunding bonds, authorized by this chapter may be additionally
506-11 secured by a deed of trust lien on physical properties of the
506-12 authority and all franchises, easements, water rights and
506-13 appropriation permits, leases, and contracts and all rights
506-14 appurtenant to such properties, vesting in the trustee power to
506-15 sell the properties for payment of the indebtedness, power to
506-16 operate the properties, and all other powers and authority for the
506-17 further security of the bonds.
506-18 (b) The deed of trust may contain any provisions prescribed
506-19 by the board for the security of the bonds and the preservation of
506-20 the trust estate and may make provision for amendment or
506-21 modification of the deed of trust and the issuance of bonds to
506-22 replace lost or mutilated bonds. A purchaser under a sale under
506-23 the deed of trust shall be the owner of the dam or dams and the
506-24 other properties and facilities purchased and shall have the right
506-25 to maintain and operate them in the event of a forfeiture or
506-26 default on the part of the authority.
507-1 Sec. 269.036. APPROVAL AND REGISTRATION OF BONDS. After any
507-2 bonds are authorized by the authority, the bonds and the record
507-3 relating to their issuance shall be submitted to the attorney
507-4 general for examination as to the validity of the bonds and the
507-5 record. If the bonds recite that they are secured by a pledge of
507-6 the proceeds of a contract previously made between the authority
507-7 and any city or other governmental agency or district, a copy of
507-8 the contract and the proceedings of the city or other governmental
507-9 agency or district authorizing the contract shall also be submitted
507-10 to the attorney general. If the bonds have been authorized and the
507-11 contract has been made in accordance with the constitution and laws
507-12 of the state the attorney general shall approve the bonds and the
507-13 contract, and the bonds then shall be registered by the
507-14 comptroller. After their approval and registration, the bonds and
507-15 the contracts, if any, are valid and binding and are incontestable
507-16 for any cause.
507-17 Sec. 269.037. LEGISLATIVE DECLARATION; CONSTRUCTION. The
507-18 legislature hereby declares that the enactment of this chapter is
507-19 in fulfillment of a duty conferred on it by Section 59, Article
507-20 XVI, Texas Constitution, empowering the legislature to pass laws
507-21 for the preservation and conservation of the natural resources of
507-22 the state; that the authority created by this chapter is essential
507-23 to the accomplishment of the purposes of that constitutional
507-24 provision; and that this chapter operates on a subject in which the
507-25 state at large is interested. The legislature finds and determines
507-26 that all of the lands and other property included within the
508-1 boundaries of the authority will be benefited and that the
508-2 authority is created to serve a public use and benefit. All the
508-3 terms and provisions of this chapter are to be liberally construed
508-4 to effectuate its purposes.
508-5 Sec. 269.038. POWERS OF WATER CONTROL AND IMPROVEMENT
508-6 DISTRICTS. Except as otherwise provided by this chapter, the
508-7 authority is vested with all of the rights, powers, and privileges
508-8 conferred by the general laws of this state applicable to water
508-9 control and improvement districts created under authority of
508-10 Section 59, Article XVI, Texas Constitution.
508-11 CHAPTER 270. SABINE RIVER AUTHORITY OF TEXAS
508-12 Sec. 270.001. CREATION. (a) A conservation and reclamation
508-13 district to be known as the "Sabine River Authority of Texas" is
508-14 created. The authority is a governmental agency and a body politic
508-15 and corporate.
508-16 (b) The authority is created under and is essential to
508-17 accomplish the purposes of Section 59, Article XVI, Texas
508-18 Constitution.
508-19 (c) The authority may exercise the powers granted by Section
508-20 59, Article XVI, Texas Constitution, to districts created to
508-21 conserve, store, control, preserve, utilize, and distribute the
508-22 storm waters, floodwaters, and waters of the rivers and streams of
508-23 the state, as well as such powers as may be contemplated and
508-24 implied by the purposes of that provision of the constitution and
508-25 as may be conferred by general law and by the provisions of this
508-26 chapter; provided, however, that nothing in this chapter shall be
509-1 construed to authorize the authority to levy any taxes or special
509-2 assessments or to create any debt payable out of taxation.
509-3 (d) The authority may construct, maintain, and operate
509-4 within the state, in the watershed of the Sabine River and its
509-5 tributaries, within or outside the boundaries of the authority, any
509-6 and all works considered essential to the operation of the
509-7 authority and for its administration in the control, storing,
509-8 preservation, and distribution for all useful purposes of the
509-9 waters of the Sabine River and its tributaries, including the storm
509-10 waters and floodwaters.
509-11 (e) The authority may exercise such authority and power of
509-12 control and regulation over the waters of the Sabine River and its
509-13 tributaries as may be exercised by the state, subject to the
509-14 provisions of the constitution and the acts of the legislature.
509-15 (f) In all other laws, wherever reference is made to Sabine
509-16 River Authority, the reference shall mean "Sabine River Authority
509-17 of Texas." The Sabine River Authority of Texas shall succeed to
509-18 all rights, powers, and duties conferred or imposed by all statutes
509-19 on the Sabine River Authority and to all rights, powers, and duties
509-20 conferred by or assumed in all contracts to which the Sabine River
509-21 Authority is a party.
509-22 Sec. 270.002. DEFINITIONS. In this chapter:
509-23 (1) "Authority" means the Sabine River Authority of
509-24 Texas.
509-25 (2) "Board" means the board of directors of the
509-26 authority.
510-1 (3) "Director" means a member of the board.
510-2 Sec. 270.003. TERRITORY. (a) The area of the authority
510-3 comprises all of that part of the territory lying within the
510-4 watershed of the Sabine River and its tributaries that is situated
510-5 within the state according to the state contour maps on file in the
510-6 office of the Texas Water Development Board.
510-7 (b) On the request of the board the commission shall define
510-8 the boundaries so that they may be expressed by the metes and
510-9 bounds of the watershed described by Subsection (a); provided,
510-10 however, that the definition of the boundaries shall not be a
510-11 condition precedent to the exercise of any power conferred by this
510-12 chapter; and provided further, that all the area presently covered
510-13 by the Lower Neches Valley Authority is excepted from the area
510-14 covered by the Neches River Conservation District. It is the
510-15 intent of the legislature to preserve the present area and
510-16 authority of the Lower Neches Valley Authority.
510-17 Sec. 270.004. BOARD OF DIRECTORS. (a) The management and
510-18 control of the affairs of the authority are vested in a board of
510-19 directors, consisting of nine members. Each director must be a
510-20 freehold property taxpayer and a legal voter of the state.
510-21 (b) Directors are appointed by the governor with the advice
510-22 and consent of the senate and serve staggered six-year terms.
510-23 (c) Four members of the board must reside within a county
510-24 located in the upper basin of the Sabine River, including Collin,
510-25 Rockwall, Kaufman, Hunt, Rains, Van Zandt, Hopkins, Franklin, Wood,
510-26 Smith, Upshur, Gregg, Harrison, and Rusk counties, and four members
511-1 of the board must reside within a county located in the lower basin
511-2 of the Sabine River, including Panola, Shelby, San Augustine,
511-3 Sabine, Jasper, Newton, and Orange counties. One member of the
511-4 board must reside within a county situated wholly or partially
511-5 within the watershed of the Sabine River.
511-6 (d) The directors shall hold office after their appointment
511-7 and qualification until their successors are appointed and have
511-8 qualified.
511-9 (e) A vacancy on the board is filled by the governor, in the
511-10 manner provided by this section, for the unexpired term.
511-11 (f) Within 15 days after appointment, a director shall
511-12 qualify by taking the official oath and filing a good and
511-13 sufficient bond with the secretary of state in the amount of
511-14 $1,000, payable to the authority and conditioned on the faithful
511-15 performance of official duties of the director. The bond is
511-16 subject to approval by the secretary of state.
511-17 Sec. 270.005. OFFICERS; VOTING REQUIREMENTS; WARRANTS.
511-18 (a) The board shall elect from among its members a president, vice
511-19 president, secretary, and secretary pro tempore.
511-20 (b) Five directors constitute a quorum at any meeting, and a
511-21 concurrence of a majority of those present is sufficient in all
511-22 matters pertaining to the business of the authority, except that
511-23 the letting of construction contracts and the authorization of the
511-24 issuance of bonds require the concurrence of five directors.
511-25 (c) Warrants for the payment of money may be drawn and
511-26 signed by two officers or employees designated by resolution
512-1 entered in the minutes of the board when such accounts have been
512-2 contracted and ordered paid by the board.
512-3 Sec. 270.006. OFFICER AND EMPLOYEE BONDS. The board shall
512-4 require an officer or employee who collects, pays, or handles any
512-5 funds of the authority to furnish good and sufficient bond, with a
512-6 duly authorized surety company, payable to the authority, in an
512-7 amount determined by the board to be sufficient to safeguard the
512-8 authority. The bond shall be conditioned on the faithful
512-9 performance of the person's duties and on the person's accounting
512-10 for all funds and property of the authority coming into the
512-11 person's hands.
512-12 Sec. 270.007. OFFICERS; MEETINGS. (a) The president is the
512-13 chief executive officer of the authority and presides at board
512-14 meetings. The vice president acts as president if the president is
512-15 absent or disabled.
512-16 (b) The secretary is responsible for keeping the records and
512-17 books of the authority. The secretary pro tempore acts as
512-18 secretary if the secretary is absent or disabled.
512-19 (c) The board shall hold regular meetings at times set by
512-20 the board and may hold special meetings when required by the
512-21 business of the authority.
512-22 Sec. 270.008. DIRECTOR FEES. A director is entitled to
512-23 receive a fee not to exceed $100 for each day of service necessary
512-24 to discharge the director's duties, plus actual expenses, provided
512-25 the fee and expenses are authorized by vote of the board. The
512-26 directors must file with the secretary a statement showing the
513-1 amount due each month, or as soon after that month as practicable,
513-2 before a check is issued.
513-3 Sec. 270.009. RECORDS; AUTHORITY OFFICE. The board shall
513-4 keep a true and full account of all its meetings and proceedings
513-5 and maintain its records in a secure manner. The records are the
513-6 property of the authority and are subject to public inspection. A
513-7 regular office shall be established and maintained within the
513-8 authority for conducting the authority's business.
513-9 Sec. 270.010. ACCOUNT RECORD; AUDIT. The authority shall
513-10 keep a complete book of accounts. The authority's fiscal accounts
513-11 and records shall be audited annually in accordance with Section
513-12 49.191.
513-13 Sec. 270.011. DEPOSITORIES. (a) The board shall annually
513-14 select a depository or depositories for the authority.
513-15 (b) Funds of the authority shall be deposited in a
513-16 depository selected under Subsection (a).
513-17 (c) The board may allocate authority funds between
513-18 depositories or accounts maintained in a depository subject only to
513-19 the duty imposed on the board by statute to invest the funds so as
513-20 to obtain the highest rate of return consistent with safety.
513-21 (d) Subsection (b) does not prohibit the withdrawal of
513-22 authority funds after deposit in order to invest the funds in
513-23 fulfillment of the duty imposed on the board by statute to invest
513-24 the funds so as to obtain the highest rate of return consistent
513-25 with safety.
513-26 Sec. 270.012. INVESTMENT OF FUNDS. (a) Funds of the
514-1 authority shall be invested and reinvested in accordance with:
514-2 (1) Chapter 2256, Government Code; or
514-3 (2) the provisions of the authority's bond orders and
514-4 agreements, as applicable.
514-5 (b) The authority shall comply with Chapter 2257, Government
514-6 Code, to the extent applicable.
514-7 Sec. 270.013. MANAGER; EMPLOYEES. (a) The board may employ
514-8 a manager for the authority and may delegate to the manager full
514-9 authority to manage and operate the affairs of the authority
514-10 subject only to orders of the board. The manager's compensation
514-11 shall be determined by the board.
514-12 (b) The terms of employment and compensation of all
514-13 authority employees shall be determined by the board.
514-14 Sec. 270.014. SURETY BONDS. (a) All bonds required to be
514-15 given by officers and employees of the authority shall be executed
514-16 by a surety company authorized to do business in this state. The
514-17 authority may pay the premiums on the bonds.
514-18 (b) The authority may maintain a blanket surety bond to
514-19 cover the directors of the authority. The bond must be in the
514-20 amount of at least $1,000 per director. If the authority maintains
514-21 a blanket surety bond under this subsection, a director is not
514-22 required to file a surety bond with the secretary of state as
514-23 provided by Section 270.004.
514-24 Sec. 270.015. CONFLICT OF INTEREST; PENALTY. (a) A
514-25 director, engineer, or employee of the authority, either for the
514-26 person or as agent for anyone else, may not benefit directly or
515-1 indirectly by any sale, purchase, or contract entered into by the
515-2 board. If such a person, directly or indirectly, becomes
515-3 interested in such a contract, sale, or purchase, the person is
515-4 guilty of a misdemeanor and on conviction shall be punished by a
515-5 fine not to exceed $1,000, by confinement in the county jail for
515-6 not less than six months or more than one year, or by both fine and
515-7 imprisonment.
515-8 (b) In the purchase or sale of any realty bought or sold by
515-9 the authority from or to any director, engineer, or employee of the
515-10 authority, the value of the property shall be set by a board of
515-11 three disinterested citizens who are residents of the county in
515-12 which the property lies, who shall be appointed by the district
515-13 judge of the county.
515-14 Sec. 270.016. JOINT ACTIONS. A drainage, conservation,
515-15 reclamation, or other district previously created by the state with
515-16 powers provided in Section 59, Article XVI, or Section 52, Article
515-17 III, Texas Constitution, shall have the authority, power, and right
515-18 to coordinate its plans with the authority and shall have full
515-19 authority, power, and right to enter into joint undertakings for
515-20 the purposes for which the districts are created; provided,
515-21 however, that all such acts must be approved by a majority of the
515-22 board of each district involved.
515-23 Sec. 270.017. POWERS AND DUTIES. (a) The authority may
515-24 control and employ the waters of the Sabine River and its
515-25 tributaries within the state, including the storm waters and
515-26 floodwaters, for the conservation and beneficial use of the waters,
516-1 as provided by Chapters 11, 12, and 49 in the manner and for the
516-2 purposes provided by this section.
516-3 (b) The authority may provide through practical and legal
516-4 means for the control and coordination of the regulation of the
516-5 waters of the Sabine River and its tributaries.
516-6 (c) The authority may provide by adequate organization and
516-7 administration for the preservation of the equitable rights of the
516-8 people of the different sections of the watershed area in the
516-9 beneficial use of the waters of the Sabine River and its
516-10 tributaries.
516-11 (d) The authority may provide for storing, controlling, and
516-12 conserving the waters of the Sabine River and its tributaries
516-13 within and outside the authority in order to prevent the escape of
516-14 any of the waters without the maximum of public service, prevent
516-15 the devastation of lands from recurrent overflows, and protect life
516-16 and property in the authority from uncontrolled floodwaters.
516-17 (e) The authority may take actions necessary to comply with
516-18 laws, rules, and regulations of this state and the United States
516-19 relating to the protection of the environment and may borrow money,
516-20 accept grants, and enter into agreements with this state and the
516-21 United States to carry out these actions. If there is any conflict
516-22 between the provisions of this chapter and any law, rule, or
516-23 regulation of this state or the United States, the provisions of
516-24 this chapter prevail unless superseded by federal law.
516-25 (f) The authority may provide for the conservation of the
516-26 waters of the Sabine River and its tributaries essential for the
517-1 domestic uses of the people of the authority, including all
517-2 necessary water supplies for cities and towns.
517-3 (g) The authority may provide for the irrigation of lands
517-4 within the state where irrigation is required for agricultural
517-5 purposes or is considered helpful for more profitable agricultural
517-6 production and may provide for the equitable distribution of the
517-7 waters to the regional potential requirements for all beneficial
517-8 uses. All plans and works provided by the authority or authorized
517-9 by the authority shall give primary consideration to the necessary
517-10 and potential needs for water. The sale of water by the authority
517-11 and the compensation charged for water shall be subject to
517-12 regulation by the commission, on its own initiative or on the
517-13 complaint of any user of the water, but such regulation shall be
517-14 subject to the requirements of Section 270.019.
517-15 (h) The authority may provide for the encouragement and
517-16 development of drainage systems and provisions for drainage systems
517-17 and for the drainage of lands in the watershed of the Sabine River
517-18 and its tributaries needed for profitable agricultural production
517-19 and the drainage of other lands in the watershed area of the
517-20 authority requiring drainage for the most advantageous use.
517-21 (i) The authority may provide for the conservation of all
517-22 soils against destructive erosion and prevent the increased dangers
517-23 caused by destructive soil erosion.
517-24 (j) The authority may control and make water available for
517-25 use in the development of commercial and industrial enterprises in
517-26 all sections of the authority, may improve the Sabine River for
518-1 navigation, may construct or otherwise acquire and operate
518-2 navigation facilities and ports, and may enter into contracts with
518-3 the United States government with respect to those purposes.
518-4 (k) The authority may provide for the control, storage, and
518-5 employment of water under its control in the development and
518-6 distribution of hydroelectric power, where such use may be
518-7 economically coordinated with other and superior uses and
518-8 subordinated to the uses declared by law to be superior.
518-9 (l) The authority may provide for all purposes for which
518-10 floodwaters and storm waters, when controlled and conserved, may be
518-11 utilized in the performance of useful service as contemplated and
518-12 authorized by the provisions of the constitution and the public
518-13 policy it declares.
518-14 (m) The authority may purchase and construct all works
518-15 necessary or convenient for the exercise of the powers and the
518-16 accomplishment of the purposes specified in this chapter and may
518-17 purchase or otherwise acquire all real and personal property
518-18 necessary or convenient for carrying out those purposes.
518-19 Sec. 270.018. EMINENT DOMAIN. (a) The right of eminent
518-20 domain is expressly conferred on the authority to enable it to
518-21 acquire the fee simple title to, or the easement or right-of-way
518-22 over and through, any and all lands, water, or lands under water,
518-23 private or public, within and outside the authority, which in the
518-24 judgment of the board is necessary or convenient to carry out any
518-25 of the purposes and powers conferred on the authority by this
518-26 chapter; provided, however, that as against persons, firms, and
519-1 corporations, or their receivers or trustees, who have the power of
519-2 eminent domain, the fee title may not be condemned, and the
519-3 authority may condemn only an easement.
519-4 (b) All condemnation proceedings shall be under the
519-5 direction of the board and in the name of the authority, and the
519-6 assessment of damages and all procedure with reference to
519-7 condemnation, appeal, and payment shall be in conformity with
519-8 Chapter 21, Property Code.
519-9 Sec. 270.019. FEES AND CHARGES. The board shall prescribe
519-10 fees and charges to be collected for the use of water, water
519-11 connections, hydroelectric service, or other service that are
519-12 reasonable and equitable and sufficient to produce revenues
519-13 adequate to pay:
519-14 (1) all expenses necessary for the operation and
519-15 maintenance of the improvements and facilities of the authority,
519-16 including the cost of the acquisition of properties and materials
519-17 necessary to maintain the improvements and facilities in good
519-18 condition and to operate them efficiently, necessary wages and
519-19 salaries of the authority, and other expenses reasonably necessary
519-20 to the efficient operation of the improvements and facilities;
519-21 (2) the annual or semiannual interest as it becomes
519-22 due on bonds issued under this chapter that are payable out of the
519-23 revenues of the improvements and facilities; and
519-24 (3) the amount required to be paid annually into the
519-25 sinking fund for the payment of any bonds issued under this chapter
519-26 that are payable out of the revenues of the improvements and
520-1 facilities and the amount required to be paid into the reserve and
520-2 other funds under the resolution authorizing the issuance of the
520-3 bonds.
520-4 Sec. 270.020. EMPLOYEES. The authority through its board
520-5 may employ managers, engineers, attorneys, and all employees
520-6 necessary to construct, operate, and maintain the improvements and
520-7 facilities of the authority and to carry out the provisions of this
520-8 chapter, and may pay reasonable compensation set by the board for
520-9 such services.
520-10 Sec. 270.021. CONTRACTS. (a) The authority may make and
520-11 enter into contracts, leases, and agreements necessary or
520-12 convenient to carry the powers granted by this chapter.
520-13 (b) The contracts, leases, and agreements may be entered
520-14 into with any person, real or artificial; any corporation,
520-15 municipal, public or private; any government or governmental
520-16 agency, including the United States government, the State of Texas,
520-17 or the State of Louisiana, or any public or private corporation or
520-18 entity created by or under the laws of the State of Louisiana.
520-19 (c) The authority may contract with a person, corporation,
520-20 or entity described by Subsection (b) for the joint construction,
520-21 operation, or both construction and operation of facilities
520-22 authorized to be operated or constructed by the authority.
520-23 (d) All such contracts, leases, and agreements authorized by
520-24 this section must be approved by resolution of the board, executed
520-25 by the president or vice president, and attested by the secretary
520-26 or secretary pro tempore.
521-1 Sec. 270.022. RIGHT TO SUE. The authority may sue and be
521-2 sued in its own name.
521-3 Sec. 270.023. APPROVAL OF CERTAIN WORKS. Before the
521-4 authority establishes a diversion point, or constructs canals,
521-5 pumping plants, and other waterworks, the authority must present
521-6 plans and specifications for the project to the commission for
521-7 approval.
521-8 Sec. 270.024. ANNUITY CONTRACTS. The authority may enter
521-9 into agreements with its employees for the purchase of annuities
521-10 for its employees as authorized by Section 403(b), Internal Revenue
521-11 Code of 1986, as amended, and may effect reductions in the salary
521-12 of participants when authorized in writing and apply the amount of
521-13 the reductions to the purchase of annuity contracts, the exclusive
521-14 control of which will vest in the participants.
521-15 Sec. 270.025. RETIREMENT BENEFITS. The authority may
521-16 establish a system of retirement benefits or other benefits for its
521-17 employees, including a pension or other retirement plan as set
521-18 forth in the Internal Revenue Code of 1986, as amended.
521-19 Sec. 270.026. COMMISSION SUPERVISION. The authority is
521-20 subject to the continuing rights of supervision by the commission.
521-21 The commission may approve, or refuse to approve, the adequacy of
521-22 any plan for flood control or conservation improvement purposes
521-23 devised by the authority for the achievement of the plans and
521-24 purposes intended in the creation of the authority and which plans
521-25 contemplate improvements supervised by the commission under the
521-26 provisions of the general laws.
522-1 Sec. 270.027. ADDITIONAL POWERS. (a) The authority has and
522-2 may exercise such functions, powers, authority, rights, and duties
522-3 necessary to accomplish the purposes for which the authority is
522-4 created, including investigating, planning, acquiring,
522-5 constructing, maintaining, and operating all necessary properties,
522-6 lands, rights, tenements, easements, improvements, reservoirs,
522-7 dams, canals, laterals, plants, works, and facilities, including
522-8 the acquisition within and outside the authority of lands,
522-9 rights-of-way, water rights, and all other properties, tenements,
522-10 and easements, and other rights incident, helpful to, or in aid of
522-11 carrying out the purposes of the authority as provided by this
522-12 chapter.
522-13 (b) This chapter shall be liberally construed to accomplish
522-14 the purposes of the authority.
522-15 Sec. 270.028. ACCEPTANCE OF GRANTS; APPROVAL OF CONTRACTS.
522-16 (a) The board may accept grants and gratuities in any form for the
522-17 purpose of promoting, establishing, and accomplishing the
522-18 objectives provided by this chapter. Grants and gratuities shall
522-19 be strictly accounted for and shall be subject to the same rules,
522-20 regulations, and audits by the state auditor as other funds handled
522-21 or disbursed by the board.
522-22 (b) Any contract or agreement entered into or any commitment
522-23 made by and between the authority or any of its agents or
522-24 representatives and the federal government or any of its agents or
522-25 representatives involving the sovereign rights of the State of
522-26 Texas in the control, use, disposition, storage, or sale of the
523-1 water of the Sabine River or its tributaries, or involving the
523-2 control, management, or use of any facilities, properties, or
523-3 improvements constructed on the Sabine River or its tributaries,
523-4 shall be submitted to the attorney general for approval before
523-5 becoming an obligation of the authority. Nothing in this section
523-6 shall preclude compliance by the authority with federal laws in
523-7 existence on May 3, 1949, or with any compact after that date by
523-8 and between the State of Texas, the federal government, and the
523-9 State of Louisiana, but any agreement, contract, or commitment
523-10 based on or involving any compact promulgated after May 3, 1949,
523-11 between the State of Texas, the federal government, and the State
523-12 of Louisiana shall be submitted to the attorney general for
523-13 approval.
523-14 Sec. 270.029. ADDITIONAL SPECIFIC POWERS. (a) In addition
523-15 to all other powers granted by this chapter or by any other
523-16 provision of law, the authority is authorized to undertake and
523-17 carry out any activities and to purchase, construct, acquire, own,
523-18 operate, maintain, repair, improve, or extend, inside and outside
523-19 its boundaries, all works, improvements, facilities, plants,
523-20 equipment, and appliances incident, helpful, or necessary to:
523-21 (1) provide for the control, storage, preservation,
523-22 transmission, treatment, distribution, and use of storm water and
523-23 floodwater and the water of rivers and streams for irrigation,
523-24 power (whether hydroelectric, steam-generated, or nuclear), and all
523-25 other beneficial purposes;
523-26 (2) supply water for municipal, domestic, power
524-1 (whether hydroelectric, steam-generated, or nuclear), industrial,
524-2 irrigation, oil flooding, mining, agricultural, and commercial uses
524-3 and purposes and all other beneficial uses and purposes;
524-4 (3) collect, transport, process, treat, dispose of,
524-5 and control all municipal, domestic, industrial, or communal water
524-6 and solid waste pollution, whether in fluid, solid, or composite
524-7 state;
524-8 (4) reclaim and provide drainage and drainage systems
524-9 for lands;
524-10 (5) provide for the navigation of coastal and inland
524-11 waters and provide port facilities; or
524-12 (6) establish or otherwise provide for public parks
524-13 and recreation facilities.
524-14 (b) All of the purposes provided in Subsection (a) are for
524-15 the conservation and development of the natural resources of the
524-16 state within the meaning of Section 59, Article XVI, Texas
524-17 Constitution.
524-18 Sec. 270.030. CHARGES, FEES, AND RENTALS FOR FACILITY OR
524-19 SERVICE. The authority may adopt, enforce, and collect all
524-20 necessary charges, fees, or rentals for providing any authority
524-21 facility or service and may require a deposit for any service or
524-22 facility furnished, and the authority may or may not provide that
524-23 the deposit will bear interest. The authority may discontinue a
524-24 facility or service to prevent an abuse or enforce payment of an
524-25 unpaid charge, fee, or rental due the authority.
524-26 Sec. 270.031. RULES AND REGULATIONS. (a) The authority may
525-1 adopt and enforce reasonable rules and regulations to:
525-2 (1) secure and maintain safe, sanitary, and adequate
525-3 plumbing installations, connections, and appurtenances as
525-4 subsidiary parts of its sanitary sewer facilities;
525-5 (2) preserve the sanitary condition of all water
525-6 controlled by the authority;
525-7 (3) prevent waste or the unauthorized use of water
525-8 controlled by the authority; and
525-9 (4) regulate privileges on any land or easement owned
525-10 or controlled by the authority.
525-11 (b) The board shall publish once a week for two consecutive
525-12 weeks a substantive statement of a proposed rule or regulation and
525-13 the penalty for its violation in one or more newspapers with
525-14 general circulation in the area in which the rule or regulation is
525-15 to be effective. The substantive statement must be condensed as
525-16 far as possible to explain the purpose to be accomplished or the
525-17 act forbidden by the rule or regulation. The notice must advise
525-18 that breach of the rule or regulation will subject the violator to
525-19 a penalty and that the full text of the rule or regulation is on
525-20 file in the principal office of the authority where it may be read
525-21 by any interested person. Any number of rules or regulations may
525-22 be included in one notice.
525-23 (c) The penalty for violation of a rule or regulation is not
525-24 effective and enforceable until five days after the last
525-25 publication of the notice. Five days after the last publication,
525-26 the published rule or regulation shall be in effect, and ignorance
526-1 of it is not a defense to a prosecution for the enforcement of the
526-2 penalty.
526-3 (d) The board may set a reasonable penalty for the breach of
526-4 a rule or regulation of the authority. A penalty shall not exceed
526-5 a fine of more than $200. The penalty shall be in addition to any
526-6 other penalties and remedies provided by the laws of this state and
526-7 may be enforced by complaints filed in the appropriate court of
526-8 jurisdiction in the county in which the authority's principal
526-9 office is located or in the county in which the violation is
526-10 alleged to have occurred.
526-11 (e) After the publication required by Subsection (b), a rule
526-12 or regulation adopted by the authority shall be recognized by the
526-13 courts as if it were a penal ordinance of a city.
526-14 Sec. 270.032. ACQUISITION OF PROPERTY; ADDITIONAL PROVISIONS
526-15 REGARDING EMINENT DOMAIN. (a) The authority may acquire, by
526-16 purchase, lease, gift, or condemnation, any land, easements, or
526-17 other property, or any interest in land, easements, or other
526-18 property, within or outside the authority, for any purpose or
526-19 function authorized by this chapter.
526-20 (b) The authority may elect to condemn either the fee simple
526-21 title or an easement or other interest only, notwithstanding any
526-22 other provisions of this chapter. The right of eminent domain
526-23 shall be exercised by the authority in the manner provided by
526-24 Chapter 21, Property Code. The authority is a water improvement
526-25 district within the meaning of that chapter. The proceedings shall
526-26 be instituted under the direction of the board and in the name of
527-1 the authority. If the authority, in the exercise of the power of
527-2 eminent domain or power of relocation or any other power, makes
527-3 necessary the relocation, raising, rerouting, changing the grade,
527-4 or altering the construction of any highway, railroad, electric
527-5 transmission line, telephone or telegraph properties and
527-6 facilities, or pipeline, all necessary relocations, raising,
527-7 rerouting, changing the grade, or alteration of construction shall
527-8 be accomplished at the sole expense of the authority.
527-9 Sec. 270.033. CONTRACTS WITH AGENCIES AND POLITICAL
527-10 SUBDIVISIONS. The authority may contract, on the terms and
527-11 conditions as the parties may agree, with all cities, public
527-12 agencies, and other political subdivisions, including the United
527-13 States government and any of its agencies and the states of Texas
527-14 and Louisiana and any of their agencies, with respect to any power,
527-15 function, or duty of the authority.
527-16 Sec. 270.034. APPLICATION OF REGIONAL WASTE DISPOSAL ACT.
527-17 (a) The authority is a district under Chapter 30, and all the
527-18 provisions of that chapter are applicable to the authority except
527-19 to the extent of any conflict with this chapter, in which case this
527-20 chapter shall prevail.
527-21 (b) A city, public agency, or other political subdivision
527-22 may contract with the authority in any manner authorized by Chapter
527-23 30, provided, however, that the city, public agency, or other
527-24 political subdivision may execute contracts with the authority and
527-25 may determine, agree, and pledge that payments under the contract
527-26 shall be payable from the source or sources described in Section
528-1 30.030(c), subject only to the authorization of the contract,
528-2 pledge, and payments by a two-thirds vote of the governing board of
528-3 the city, public agency, or political subdivision.
528-4 (c) The authority and all cities, public agencies, and other
528-5 political subdivisions shall have all the rights, powers, and
528-6 authority with respect to the control, storage, preservation,
528-7 transmission, treatment, and disposition of storm water and
528-8 floodwater, and the water of rivers and streams, and with respect
528-9 to any other power, function, or activity of the authority granted,
528-10 permitted, and authorized to districts and public agencies by
528-11 Chapter 30, with respect to waste, waste disposal systems, and
528-12 treatment facilities. Contracts made pursuant to this subsection
528-13 are subject to the provisions of Subsection (b).
528-14 Sec. 270.035. CONTRACT CHARGES. All cities, public
528-15 agencies, and other political subdivisions may set, charge, and
528-16 collect fees, rates, charges, rentals, and other amounts for any
528-17 service or facilities provided pursuant to or in connection with
528-18 any contract with the authority and may pledge amounts sufficient
528-19 to make all payments required under the contract.
528-20 Sec. 270.036. BONDS. (a) For the purpose of providing
528-21 funds to acquire, purchase, construct, improve, enlarge, or equip
528-22 any property, buildings, structures, or other facilities for any
528-23 purpose or power authorized by law, the board may issue revenue
528-24 bonds from time to time and in one or more issues or series
528-25 pursuant to this section.
528-26 (b) The bonds may be payable from and secured by liens on
529-1 and pledges of all or any part of the revenues, income, or receipts
529-2 derived by the authority from its ownership or operation of the
529-3 property, buildings, structures, or facilities or any other
529-4 resources of the authority, including the proceeds or revenues from
529-5 contracts with any person, firm, corporation, city, public agency,
529-6 or other political subdivision.
529-7 (c) The bonds must be issued to mature serially or otherwise
529-8 within not to exceed 50 years, and provision may be made for the
529-9 subsequent issuance of additional parity bonds, or subordinate lien
529-10 bonds, under any terms or conditions that may be provided in the
529-11 resolution authorizing the issuance of the bonds.
529-12 (d) The bonds, and any interest coupons appertaining to the
529-13 bonds, are negotiable instruments within the meaning and for all
529-14 purposes of the Business & Commerce Code, provided, however, that
529-15 the bonds may be issued registrable as to principal alone or as to
529-16 both principal and interest.
529-17 (e) The bonds shall be executed and may be made redeemable
529-18 before maturity, may be issued in the form, denominations, and
529-19 manner and under the terms, conditions, and details, may be sold in
529-20 the manner, at the price, and under the terms, and shall bear
529-21 interest at the rates as provided in the resolution authorizing the
529-22 issuance of the bonds. If provided in the bond resolution, the
529-23 proceeds from the sale of the bonds may be used for paying interest
529-24 on the bonds during the period of the acquisition or construction
529-25 of facilities to be provided through the issuance of the bonds, for
529-26 paying expenses of operation and maintenance of facilities, for
530-1 creating a reserve fund for the payment of the principal of and
530-2 interest on the bonds, and for creating other funds, and the
530-3 proceeds from the sale of the bonds may be placed on time deposit
530-4 or invested until needed, to the extent and in the manner provided
530-5 in the bond resolution.
530-6 (f) The authority may pledge all or part of its revenues,
530-7 income, or receipts from fees, rentals, rates, charges, contract
530-8 proceeds or payments, or other resources to the payment of the
530-9 bonds, including the payment of principal, interest, and other
530-10 amounts required or permitted in connection with the bonds. The
530-11 pledged fees, rentals, rates, charges, proceeds, or payments shall
530-12 be set and collected in amounts that will be at a minimum
530-13 sufficient, together with other pledged resources, to provide for
530-14 all payments of principal, interest, and other amounts required in
530-15 connection with the bonds and, to the extent required by the
530-16 resolution authorizing the issuance of the bonds, to provide for
530-17 the payment of expenses in connection with the bonds and for the
530-18 operation, maintenance, and other expenses in connection with the
530-19 facilities.
530-20 (g) The bonds may be additionally secured by mortgages or
530-21 deeds of trust on real property owned or acquired by the authority,
530-22 and by chattel mortgages or liens on personal property appurtenant
530-23 to the real property, and the board may authorize the execution of
530-24 trust indentures, mortgages, deeds of trust, or other forms of
530-25 encumbrances to evidence same.
530-26 (h) The authority may pledge to the payment of the bonds all
531-1 or part of any grant, donation, revenues, or income received or to
531-2 be received from the United States government or any other public
531-3 or private source, whether pursuant to an agreement or otherwise.
531-4 (i) Revenue bonds issued pursuant to this section may be
531-5 refunded as provided by this section or Section 270.040, and the
531-6 bonds may be refunded or otherwise refinanced by the issuance of
531-7 refunding bonds for that purpose, under the terms, conditions, and
531-8 details, and with the security and pledges as determined by
531-9 resolution of the board. All pertinent and appropriate provisions
531-10 of this chapter apply to refunding bonds, which may be issued in
531-11 the manner provided for other bonds authorized under this section.
531-12 Refunding bonds may be sold for cash and delivered in amounts
531-13 necessary to pay the principal, interest, and redemption premium,
531-14 if any, of bonds to be refunded, at maturity or on any redemption
531-15 date; or the refunding bonds may be issued to be exchanged for the
531-16 bonds being refunded, in which case the comptroller shall register
531-17 the refunding bonds and deliver them to the holder or holders of
531-18 the bonds being refunded, in accordance with the provisions of the
531-19 resolution authorizing the refunding bonds. The exchange may be
531-20 made in one delivery or in several installment deliveries. Bonds
531-21 issued at any time by the authority may also be refunded in the
531-22 manner provided by any other applicable law.
531-23 Sec. 270.037. BOND APPROVAL AND REGISTRATION. (a) Bonds
531-24 issued pursuant to this chapter and the appropriate proceedings
531-25 authorizing their issuance shall be submitted to the attorney
531-26 general for examination. If the bonds recite that they are secured
532-1 by a pledge of revenues of any contract, a copy of the contract and
532-2 the proceedings relating to the contract shall be submitted to the
532-3 attorney general. If the attorney general finds that the bonds
532-4 have been authorized and that any such contract has been made in
532-5 accordance with law, the attorney general shall approve the bonds
532-6 and the contract and the bonds shall be registered by the
532-7 comptroller.
532-8 (b) After approval and registration the bonds and the
532-9 contract, if any, are incontestable in any court or other forum,
532-10 for any reason, and are valid and binding obligations in accordance
532-11 with their terms for all purposes.
532-12 Sec. 270.038. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
532-13 DEPOSITS. Bonds issued pursuant to this chapter are legal and
532-14 authorized investments for all banks, trust companies, building and
532-15 loan associations, savings and loan associations, insurance
532-16 companies of all kinds and types, fiduciaries, trustees, and
532-17 guardians and for all interest and sinking funds and other public
532-18 funds of the state and all agencies, subdivisions, and
532-19 instrumentalities of the state, including counties, cities, towns,
532-20 villages, school districts, and all other kinds and types of
532-21 districts, public agencies, and bodies politic. The bonds are
532-22 eligible and lawful security for deposits of public funds of the
532-23 state and all agencies, subdivisions, and instrumentalities of the
532-24 state, including counties, cities, towns, villages, school
532-25 districts, and all other kinds and types of districts, public
532-26 agencies, and bodies politic, to the extent of the face value of
533-1 the bonds, when accompanied by any unmatured interest coupons.
533-2 Sec. 270.039. SOURCE OF AUTHORITY. The provisions of
533-3 Sections 270.029-270.038 are sufficient authority for the issuance
533-4 of bonds, the execution of contracts, and the performance by the
533-5 authority and by cities, public agencies, and other political
533-6 subdivisions of other acts and procedures authorized by those
533-7 provisions, regardless of any other provisions of this chapter and
533-8 without reference to any other provisions of law or any
533-9 restrictions or limitations contained in those provisions, except
533-10 as specifically provided by this subsection and Sections
533-11 270.029-270.038. To the extent of any conflict or inconsistency
533-12 between provisions of this section and Sections 270.029-270.038 and
533-13 any other provision of law, this section and Sections
533-14 270.029-270.038 prevail and control; provided, however, that the
533-15 authority and all cities, public agencies, and other political
533-16 subdivisions may use other provisions of this chapter or other laws
533-17 not in conflict with this section and Sections 270.029-270.038, to
533-18 the extent convenient or necessary to carry out any power or
533-19 authority, express or implied, granted by those sections.
533-20 Sec. 270.040. REFUNDING BONDS. (a) The authority may issue
533-21 refunding bonds for the purpose of refunding any outstanding bonds
533-22 authorized by this chapter and interest on the bonds. Refunding
533-23 bonds may be issued to refund more than one series of outstanding
533-24 bonds and may combine the pledges for the outstanding bonds for the
533-25 security of the refunding bonds, and the refunding bonds may be
533-26 secured by other or additional revenues.
534-1 (b) The provisions of this chapter with reference to the
534-2 issuance of other bonds and their approval by the attorney general
534-3 and the remedies of the holders are applicable to refunding bonds.
534-4 Refunding bonds shall be registered by the comptroller on surrender
534-5 and cancellation of the bonds to be refunded, but in lieu of
534-6 surrender and cancellation, the resolution authorizing the issuance
534-7 of the refunding bonds may provide that the bonds shall be sold and
534-8 the proceeds of the sale deposited in the bank where the original
534-9 bonds are payable, in which case the refunding bonds may be issued
534-10 in an amount sufficient to pay the interest on the original bonds
534-11 to their option date or maturity date and the comptroller shall
534-12 register the refunding bonds without concurrent surrender and
534-13 cancellation of the original bonds.
534-14 Sec. 270.041. DEED OF TRUST LIEN. (a) Bonds, including
534-15 refunding bonds, authorized by this chapter may be additionally
534-16 secured by a deed of trust lien on physical properties of the
534-17 authority and all franchises, easements, water rights and
534-18 appropriation permits, leases and contracts, and all rights
534-19 appurtenant to the properties, vesting in the trustee power to sell
534-20 the properties for payment of the indebtedness, power to operate
534-21 the properties, and all other powers and authority for the further
534-22 security of the bonds.
534-23 (b) The deed of trust may contain any provisions prescribed
534-24 by the board for the security of the bonds and the preservation of
534-25 the trust estate and may make provision for amendment or
534-26 modification of the deed of trust and the issuance of bonds to
535-1 replace lost or mutilated bonds. A purchaser under a sale under
535-2 the deed of trust shall be the owner of the dam or dams and the
535-3 other properties and facilities so purchased and shall have the
535-4 right to maintain and operate them.
535-5 Sec. 270.042. ADDITIONAL PROVISIONS REGARDING APPROVAL AND
535-6 REGISTRATION OF BONDS. (a) After any bonds are authorized by the
535-7 authority, the bonds and the record relating to their issuance
535-8 shall be submitted to the attorney general for examination as to
535-9 the validity of the bonds and the record. If the bonds recite that
535-10 they are secured by a pledge of the proceeds of a contract
535-11 previously made between the authority and a city or other
535-12 governmental agency or district, a copy of the contract and the
535-13 proceedings of the city or other governmental agency or district
535-14 authorizing the contract shall also be submitted to the attorney
535-15 general. If the bonds have been authorized and the contract has
535-16 been made in accordance with the constitution and laws of the
535-17 state, the attorney general shall approve the bonds and contract
535-18 and the bonds then shall be registered by the comptroller.
535-19 (b) After their approval and registration, the bonds and the
535-20 contract, if any, are valid and binding and are incontestable for
535-21 any cause.
535-22 Sec. 270.043. PROVISIONS REGARDING FURNISHING OF ELECTRICITY
535-23 AND OTHER AUTHORITY SERVICES. (a) The rates and charges for
535-24 electric power sold and the services rendered by the authority
535-25 shall be reasonable, nondiscriminatory, and just to the customers,
535-26 and all rates and charges that are unreasonable, discriminatory, or
536-1 unjust to customers are prohibited.
536-2 (b) The commission shall have the power to regulate and set
536-3 the rates and compensation to be charged by the authority for
536-4 electric energy and other services and to prescribe rules and
536-5 regulations under which electric energy is furnished. The
536-6 commission shall not set a rate or compensation that will yield
536-7 less than a fair rate of return on the fair value of the property
536-8 used and useful in generating electric energy and rendering other
536-9 service, but in no event shall the return exceed 10 percent per
536-10 year.
536-11 (c) When the authority proposes to enter into a contract for
536-12 the sale of electric energy, the contract shall be filed with the
536-13 commission for examination. On the filing of the contract, the
536-14 commission shall issue a notice to the parties by registered mail,
536-15 unless notice is waived, informing the parties of the time and
536-16 location of a hearing on the contract. If, following the hearing,
536-17 the commission finds that the contract or proposal is fair and
536-18 reasonable and not detrimental to the public interest, it shall
536-19 approve the contract or proposal. The action of the commission
536-20 pursuant to the hearing shall be conclusive unless an appeal is
536-21 taken.
536-22 (d) If a party is dissatisfied with the action of the
536-23 commission, the party may file a petition stating the party's
536-24 objections to the action in a district court of Travis County
536-25 against the commission as defendant. The findings of the
536-26 commission as to the facts, if supported by substantial evidence,
537-1 shall be conclusive. Appeals may be taken to the court of civil
537-2 appeals and may be removed to the supreme court as in other civil
537-3 causes.
537-4 (e) The commission may exercise its powers of regulation and
537-5 control on its own initiative or on complaint of any person
537-6 aggrieved.
537-7 Sec. 270.044. AUTHORITY AS WATER CONTROL AND IMPROVEMENT
537-8 DISTRICT. The authority has all the powers conferred by general
537-9 laws on water control and improvement districts. In the event of a
537-10 conflict between the provisions of this chapter and the general
537-11 laws relating to water control and improvement districts or any
537-12 other general law, the provisions of this chapter shall prevail.
537-13 Sec. 270.045. ADDITIONAL PROVISIONS REGARDING BONDS AS
537-14 INVESTMENTS AND AS SECURITY FOR DEPOSITS. All bonds of the
537-15 authority are legal and authorized investments for banks, savings
537-16 banks, trust companies, building and loan associations, savings and
537-17 loan associations, insurance companies, fiduciaries, trustees, and
537-18 guardians and for the sinking funds of cities, towns, villages,
537-19 counties, school districts, or other political corporations or
537-20 subdivisions of the state. The bonds are eligible to secure the
537-21 deposit of all public funds of the state and all public funds of
537-22 cities, towns, villages, counties, school districts, or other
537-23 political corporations or subdivisions of the state, and the bonds
537-24 are lawful and sufficient security for the deposits to the extent
537-25 of their value if the bonds are accompanied by all unmatured
537-26 coupons.
538-1 Sec. 270.046. TAX EXEMPTION. The accomplishment of the
538-2 purposes stated in this chapter is for the benefit of the people of
538-3 the state and for the improvement of their properties and
538-4 industries, and the authority, in carrying out the purposes of this
538-5 chapter, will be performing an essential public function under the
538-6 constitution. The authority shall not be required to pay any tax
538-7 or assessment on the project or a part of the project, and the
538-8 bonds issued under this chapter and the transfer of and income from
538-9 the bonds, including the profits made on the sale of the bonds,
538-10 shall at all times be free from taxation within this state.
538-11 Sec. 270.047. ADDITIONAL PROVISIONS REGARDING AUTHORITY
538-12 REGULATIONS AND CONTRACTS. (a) The board may adopt and promulgate
538-13 all reasonable regulations to secure, maintain, and preserve the
538-14 sanitary condition of all water in and to flow into any reservoir
538-15 owned by the authority, to prevent the waste or unauthorized use of
538-16 water, and to regulate residence, hunting, fishing, boating, and
538-17 camping, and all recreational and business privileges, along or
538-18 around any such reservoir and the Sabine River and its tributaries
538-19 or on any body of land or easement owned or controlled by the
538-20 authority.
538-21 (b) The board may contract with responsible persons for the
538-22 construction and operation of toll bridges over the authority's
538-23 water or for ferry service on or over the authority's water, for a
538-24 period not to exceed 20 years in the case of a bridge and not to
538-25 exceed 10 years in the case of a ferry, setting reasonable
538-26 compensation to be charged for service by any such facility and
539-1 requiring adequate bond or bonds from contracting persons,
539-2 associations, or corporations, payable to the authority, in an
539-3 amount and conditioned as required in the judgment of the board.
539-4 The contracts may provide for forfeiture of the particular
539-5 franchise in case of a failure of the licensee to render adequate
539-6 public service.
539-7 (c) The authority may prescribe a reasonable penalty for the
539-8 breach of a regulation of the authority, not to exceed a fine of
539-9 $200 or imprisonment for 30 days, or both a fine and imprisonment.
539-10 The penalty shall be in addition to any other penalties provided by
539-11 the laws of the state and may be enforced by complaints filed in
539-12 the appropriate court of jurisdiction in the county in which the
539-13 violation occurred; provided, however, that no rule or regulation
539-14 that provides a penalty for a violation of the rule or regulation
539-15 shall be in effect, as to enforcement of the penalty, until five
539-16 days after the authority has caused a substantive statement of the
539-17 rule or regulation and the penalty for the violation to be
539-18 published, once a week for two consecutive weeks in the authority.
539-19 The statement to be published must be as condensed as is possible
539-20 to afford sufficient notice as to the act forbidden by the rule or
539-21 regulation. A single notice may embrace any number of regulations.
539-22 The notice must provide the information that breach of the
539-23 regulation or regulations will subject the violator to the
539-24 imposition of a penalty. The notice must also state that the full
539-25 text of the regulation or regulations is on file in the principal
539-26 office of the authority and may be read by any interested person.
540-1 Five days after the second publication of the notice, the
540-2 advertised regulation shall be in effect and ignorance of the
540-3 regulation shall not constitute a defense to a prosecution for the
540-4 enforcement of a penalty. After the required publication, the
540-5 rules and regulations authorized by this section shall judicially
540-6 be known to the courts and shall be considered of a nature similar
540-7 to a valid penal ordinance of a city of the state.
540-8 (d) The authority may employ and constitute its own peace
540-9 officers, and any such peace officer or any county peace officer
540-10 may make arrests when necessary to prevent or stop the commission
540-11 of an offense against the regulations of the authority, or against
540-12 the laws of the state, when the offense or threatened offense
540-13 occurs on any land, water, or easement owned or controlled by the
540-14 authority, or may make an arrest at any place in the case of an
540-15 offense involving injury or detriment to any property owned or
540-16 controlled by the authority.
540-17 Sec. 270.048. PARKS AND RECREATION FACILITIES. The
540-18 authority may establish or otherwise provide for public parks and
540-19 recreation facilities and may acquire land for such purposes.
540-20 CHAPTER 271. SAN ANTONIO RIVER AUTHORITY
540-21 Sec. 271.001. CREATION. (a) A conservation and reclamation
540-22 district to be known as the "San Antonio River Authority" is
540-23 created. The authority is a governmental agency, a municipality,
540-24 body politic and corporate.
540-25 (b) The authority is created under and is essential to
540-26 accomplish the purposes of Section 59, Article XVI, Texas
541-1 Constitution, including the construction, maintenance, and
541-2 operation of navigable canals or waterways authorized by this
541-3 chapter and the control of the waters of those parts of all rivers
541-4 and streams and their tributaries that are within the boundaries of
541-5 the authority.
541-6 Sec. 271.002. DEFINITIONS. In this chapter:
541-7 (1) "Authority" means the San Antonio River Authority.
541-8 (2) "Board" means the board of directors of the
541-9 authority.
541-10 (3) "Director" means a member of the board.
541-11 (4) "Federal" means the government of the United
541-12 States or its functions or subsidiary agencies.
541-13 (5) "Flood plain" means the area of the channel of a
541-14 river or stream and those portions of land abutting and adjacent to
541-15 the channel that are reasonably required to carry floodwaters.
541-16 (6) "Person" means an individual, partnership,
541-17 association, corporation, business trust, legal representative, or
541-18 receiver or any organized group of persons.
541-19 (7) "Professional services" means services rendered,
541-20 either individually or by firms, by accountants, attorneys,
541-21 engineers, surveyors, geologists, physicians, surgeons, laboratory
541-22 technicians, bond brokers, fiscal advisers, appraisers,
541-23 statisticians, and researchers and by such other vocations,
541-24 callings, occupations, or employments involving labor, skill,
541-25 education, special knowledge, and compensation or profit in which
541-26 the labor and skill involved are predominantly mental or
542-1 intellectual rather than physical or manual.
542-2 (8) "San Antonio River Basin" means all of the area
542-3 except Bandera, Real, and Kerr counties that has topographic
542-4 characteristics causing surface waters to flow into the San Antonio
542-5 River and its tributaries.
542-6 (9) "State" means or relates to the government of the
542-7 State of Texas or such of its functions and agencies as are
542-8 appropriate to accomplish the objectives of this chapter.
542-9 Sec. 271.003. BOUNDARIES OF THE AUTHORITY; FINDING OF
542-10 BENEFIT. (a) The authority includes all of the territory within
542-11 the Bexar, Wilson, Karnes, and Goliad counties.
542-12 (b) It is found and determined that all of the land included
542-13 in the authority will benefit from the exercise of the power
542-14 conferred by this chapter.
542-15 Sec. 271.004. POWERS AND DUTIES OF THE AUTHORITY. (a) The
542-16 authority has all of the powers of the state granted under Section
542-17 59, Article XVI, Texas Constitution, to effectuate the
542-18 construction, maintenance, and operation of navigable canals or
542-19 waterways, to effectuate flood control, to effectuate the
542-20 conservation and use for all beneficial purposes of groundwater,
542-21 storm waters, floodwaters, and unappropriated flow waters in the
542-22 authority, to effectuate irrigation, to effectuate soil
542-23 conservation, to effectuate sewage treatment, to effectuate
542-24 pollution prevention, to encourage and develop parks and
542-25 recreational facilities and to preserve fish, to effectuate
542-26 forestation and reforestation, and to do all things required for
543-1 those purposes, subject only to:
543-2 (1) declarations of policy by the legislature as to
543-3 the use of water;
543-4 (2) continuing supervision and control by the
543-5 commission and any board or agency that succeeds to its duties;
543-6 (3) the provisions of Section 11.024, prescribing the
543-7 priorities of uses for water; and
543-8 (4) water rights legally acquired by municipalities
543-9 and other users.
543-10 (b) Subject to the provisions of Subsection (a), the
543-11 authority shall exercise the powers, rights, privileges, and
543-12 functions provided by this section and Sections 271.005-271.015, in
543-13 the manner and for the purposes specified in those sections and in
543-14 this chapter, for the greatest practicable measure of conservation
543-15 and beneficial utilization of all groundwater, storm waters,
543-16 floodwaters, and unappropriated flow waters of the authority.
543-17 Sec. 271.005. NAVIGATION. (a) The authority may promote,
543-18 construct, maintain, and operate or may make practicable, promote,
543-19 aid, and encourage the construction, maintenance, and operation of
543-20 navigable canals or waterways, and all navigational systems or
543-21 facilities auxiliary to navigable canals or waterways, using the
543-22 natural bed and banks of the San Antonio River to its junction with
543-23 the Guadalupe River where practicable and from there traversing
543-24 such route as may be found by the authority to be most feasible and
543-25 practicable to connect with the Gulf Intracoastal Waterway or with
543-26 any new canal to be constructed or with any harbor at or near San
544-1 Antonio Bay or the Gulf of Mexico and also using such new
544-2 correlated artificial waterways, together with all locks and other
544-3 works, structures, and artificial facilities, as may be necessary
544-4 and convenient for the construction, maintenance, and operation of
544-5 the navigable canals or waterways and all navigational systems or
544-6 facilities auxiliary to them.
544-7 (b) The authority may construct or cause to be constructed
544-8 the system of artificial waterways, canals, locks, works, and other
544-9 facilities to connect the watershed area of the San Antonio River,
544-10 including navigation to or at a point near the city of San Antonio,
544-11 with the Gulf Intracoastal Waterway or with any new canal to be
544-12 constructed or with any harbor at or near San Antonio Bay or the
544-13 Gulf of Mexico.
544-14 (c) The authority may control, develop, store, and use the
544-15 natural flow and floodwaters of the San Antonio River and its
544-16 tributaries for the purpose of operating and maintaining the
544-17 navigable canals or waterways and all navigational systems or
544-18 facilities auxiliary to the canals and waterways; provided,
544-19 however, that the navigational use shall be subordinate to the
544-20 consumptive use of water, and navigation shall be incidental to the
544-21 consumptive use of water.
544-22 (d) In the case of the construction of the navigable canals
544-23 or waterways and all navigational systems or facilities auxiliary
544-24 to them by the federal government or otherwise, the authority may
544-25 construct, maintain, and operate lateral connecting canals and
544-26 turning basins to serve local needs, and may also provide,
545-1 construct, acquire, purchase, take over, lease from others, lease
545-2 to others, maintain, operate, develop, and regulate, or by
545-3 franchise control, wharves, docks, warehouses, grain elevators,
545-4 bunkering facilities, belt or terminal railroads, floating plants,
545-5 lighterage, towing facilities, and all other facilities incident to
545-6 or in aid of the efficient operation and development of the canals
545-7 or waterways and all navigational systems or facilities auxiliary
545-8 to them, and any ports incident to them, whether on land or on
545-9 water.
545-10 (e) If the construction or maintenance and operation of the
545-11 navigable canals or waterways and all navigational systems or
545-12 facilities auxiliary to the canals or waterways is taken over by
545-13 the federal government or any agency of the federal government, the
545-14 authority may make and enter into any contracts lawfully required
545-15 by the federal government, including assignments and transfers of
545-16 property and rights of property and easements and privileges and
545-17 all other lawful things and acts necessary and required to meet the
545-18 requirements of the federal government, or any agency of the
545-19 federal government, in taking over the construction or maintenance
545-20 and operation of the navigable canals or waterways and all
545-21 navigational systems or facilities auxiliary to the canals and
545-22 waterways.
545-23 (f) The authority may grant a franchise or right to any
545-24 person or body politic or corporate for the use of the navigable
545-25 canals or waterways and all navigational systems or facilities
545-26 auxiliary to the canals or waterways or any facility in aid of
546-1 navigation. A person or body politic or corporate may not provide,
546-2 maintain, or operate any facility in aid of navigation in any way
546-3 connected with the navigable canals or waterways and all
546-4 navigational systems or facilities auxiliary to the canals or
546-5 waterways and intended for use by the public within the meaning and
546-6 intent of this chapter, except by and under the franchise granted
546-7 by the authority in the form of an ordinance as provided by this
546-8 chapter.
546-9 (g) A franchise may be granted under Subsection (f) for a
546-10 term not to exceed 50 years. An ordinance granting the franchise:
546-11 (1) may contain provisions for the payment of
546-12 reasonable fees or other charges to be paid to the authority; and
546-13 (2) shall contain:
546-14 (A) provisions adequate to regulate the fees,
546-15 tolls, rates, or exactions to be demanded for the use of, or
546-16 service to be rendered by, any means or facility to be provided or
546-17 operated under the franchise, so that the terms will be uniform,
546-18 reasonable, and without discrimination against any person, both as
546-19 to charges and the conditions of use or service; and
546-20 (B) all provisions reasonably required to
546-21 procure service adequate to serve the public necessity and
546-22 convenience.
546-23 (h) The authority may grant a franchise for the design,
546-24 construction, repair, enlargement, alteration, maintenance, or
546-25 operation of, service from, or use of any facility to be provided
546-26 for use in aid of navigation on the navigable canals or waterways
547-1 and all navigational systems or facilities auxiliary to the canals
547-2 or waterways, whether on land or in or on water.
547-3 (i) In granting a franchise under this section, the
547-4 authority may require:
547-5 (1) uniform and adequate analytic accounting systems
547-6 and forms;
547-7 (2) periodic verified reports based on the accounting
547-8 system;
547-9 (3) audits by the authority; and
547-10 (4) other reasonable regulations designed to protect
547-11 the public.
547-12 (j) To procure observance of the conditions of a franchise
547-13 granted under this section and compliance with the rules and
547-14 regulations established by ordinance of the authority, to be
547-15 adopted as provided in this chapter, the ordinance may provide
547-16 reasonable and commensurate penalties set by general law, not to
547-17 exceed the limit for penalties provided by this chapter.
547-18 (k) Unless the franchise otherwise provides, the forfeiture
547-19 or suspension of a franchise granted under this chapter may be only
547-20 because of discrimination in rendering service, in affording use,
547-21 or in taking or demanding a toll, rate, or charge. Forfeiture or
547-22 suspension of a franchise granted under this section, unless
547-23 otherwise provided in the franchise, shall be on a decree of a
547-24 district court within the county in which the authority maintains
547-25 its general office.
547-26 (l) The authority may by ordinance establish rules necessary
548-1 or designed to protect the physical property owned by the
548-2 authority, or physical property owned or operated by another under
548-3 a franchise granted under this section, or to effect the safety or
548-4 efficient use of the property. In the ordinance the authority may
548-5 provide a reasonable and commensurate penalty for the violation of
548-6 a rule. The penalty, which shall be cumulative of other penalties
548-7 provided by general law, may not exceed the limit for penalties
548-8 provided by this chapter.
548-9 Sec. 271.006. FLOOD CONTROL AND FLOOD PLAIN MANAGEMENT. The
548-10 authority may prevent and aid in the prevention of damage to
548-11 persons and property by the overflow of rivers, streams, or
548-12 tributaries of rivers and streams within the authority, including
548-13 the study and designation of flood plains and their regulation.
548-14 Sec. 271.007. WATER CONSERVATION, STORAGE, PROCUREMENT,
548-15 DISTRIBUTION AND SUPPLY. (a) The authority may store and conserve
548-16 water for the greatest beneficial use, for standby service as well
548-17 as for the actual delivery of water.
548-18 (b) The authority may provide water for the development of
548-19 commercial and industrial enterprises within or outside the
548-20 authority.
548-21 (c) The authority may bring water into the boundaries of the
548-22 authority.
548-23 (d) The authority may construct, acquire, equip, acquire
548-24 storage rights at, and operate and maintain dams and reservoirs,
548-25 either within or outside the authority, in carrying out the powers
548-26 conferred on the authority, or may exercise such powers in
549-1 conjunction with others.
549-2 (e) The authority may contract for, operate, maintain, or
549-3 otherwise provide water supply lines and water purification and
549-4 water pumping systems and facilities either within or outside the
549-5 authority.
549-6 (f) The authority may execute contracts with municipalities
549-7 and others involving the construction of reservoirs, dams, water
549-8 supply lines, and water purification and pumping facilities and the
549-9 furnishing of water supply service substantially in the manner
549-10 provided by Section 402.020, Local Government Code, for districts
549-11 organized and created pursuant to Section 59, Article XVI, Texas
549-12 Constitution, extended so as to permit such contracts with
549-13 individuals, partnerships, and all classes of corporations and to
549-14 permit the inclusion of provisions for the operation, maintenance,
549-15 and ownership of such properties. The powers granted the authority
549-16 in this section are not to be construed as a limitation on the
549-17 powers, rights, privileges, and functions otherwise granted by this
549-18 chapter.
549-19 (g) The authority may acquire from the United States
549-20 government, through the secretary of the army or the secretary of
549-21 the interior or any of its officials authorized to make such
549-22 contracts, from the state or an agency of the state, or from any
549-23 privately financed reservoirs, unsold conservation storage capacity
549-24 at any dam within or outside the authority constructed or to be
549-25 constructed either by or with the assistance of the United States
549-26 government or the state, or both. The authority may acquire
550-1 additional conservation storage capacity that may be provided at
550-2 any such dam.
550-3 Sec. 271.008. IRRIGATION. The authority may provide water
550-4 for the irrigation of lands within and outside the authority, and
550-5 incident to that purpose may construct, operate, and maintain
550-6 supply lines and pumping systems and facilities either within or
550-7 outside the authority.
550-8 Sec. 271.009. SOIL CONSERVATION. (a) In furtherance of the
550-9 master plan provided for in Section 271.016, the authority may
550-10 provide for the conservation of soils and other surface resources
550-11 within the authority against destructive erosion, for the
550-12 prevention of the increased threat of flood caused by soil erosion,
550-13 and for the prevention of sedimentation and siltation of lands,
550-14 channels, and reservoirs, including the right either to act as
550-15 local sponsoring agent for upstream soil and water conservation and
550-16 flood prevention projects authorized by state or federal agencies
550-17 in conjunction with soil conservation districts or to aid and
550-18 supplement the work of such upstream soil and water conservation
550-19 and flood prevention projects.
550-20 (b) The authority may make arrangements satisfactory to the
550-21 secretary of agriculture of the United States for defraying costs
550-22 of operating and maintaining the projects described by Subsection
550-23 (a) in accordance with regulations promulgated by the secretary of
550-24 agriculture; provided, however, that any portion of the total
550-25 construction cost of any such project that is allocable to flood
550-26 control or soil conservation shall be paid for or financed by funds
551-1 that have their source in the county in which the project is
551-2 located. The funds may be of any kind or character except taxes
551-3 collected in accordance with the provisions of Sections 271.027 and
551-4 271.028.
551-5 Sec. 271.010. SEWAGE TREATMENT AND SOLID WASTE DISPOSAL.
551-6 (a) Except as provided by Subsection (b) as a necessary aid to the
551-7 conservation, control, preservation, purification, and distribution
551-8 of surface waters and groundwater within the authority, the
551-9 authority may construct, own, operate, maintain, or otherwise
551-10 provide within the San Antonio River Basin sewage gathering,
551-11 treatment, or disposal services, including solid waste disposal
551-12 services, may charge for those services, and may make contracts in
551-13 reference to those services with counties, municipalities, and
551-14 others.
551-15 (b) The authority may not exercise the powers granted by
551-16 this section within the boundaries of Kerr, Real, or Bandera
551-17 counties unless the commissioners court of the county or counties
551-18 has consented by a majority vote to the exercise of those powers
551-19 within the county or counties.
551-20 Sec. 271.011. POLLUTION PREVENTION. (a) The authority may
551-21 provide for the study, correcting, and control of both artificial
551-22 and natural pollution, including organic, inorganic, and thermal
551-23 pollution, of all groundwater or surface water within the San
551-24 Antonio River Basin.
551-25 (b) Except as provided by Subsection (c), the authority may
551-26 by ordinance promulgate rules and regulations with regard to
552-1 pollution, both artificial and natural, may police the authority to
552-2 enforce the rules and regulations, and may provide reasonable and
552-3 commensurate penalties for the violation of the rules and
552-4 regulations. The penalties, which shall be cumulative of any
552-5 penalties fixed by general law, may not exceed the limit for
552-6 penalties provided by this chapter.
552-7 (c) An ordinance enacted under this section may not be
552-8 promulgated in any county or counties outside the boundaries of the
552-9 authority.
552-10 Sec. 271.012. PARKS, RECREATIONAL FACILITIES, AND
552-11 PRESERVATION OF FISH. For the encouragement and development of
552-12 parks and recreational facilities and the preservation of fish, the
552-13 authority may acquire additional land adjoining any permanent work
552-14 of improvement constructed within the authority for the purpose of
552-15 developing parks or recreational facilities. The authority may
552-16 negotiate contracts with any county, municipality, municipal
552-17 corporation, person, firm, corporation, nonprofit organization, or
552-18 state or federal agency for the operation or maintenance of any
552-19 such park or recreational facility. The preservation of fish shall
552-20 be in accordance with rules and regulations, if any, prescribed by
552-21 the Parks and Wildlife Department.
552-22 Sec. 271.013. FORESTATION AND REFORESTATION. The authority
552-23 may forest and reforest and aid in the foresting and reforesting of
552-24 all areas within the authority.
552-25 Sec. 271.014. CONTRACTS. (a) The authority may make
552-26 contracts and execute instruments necessary or convenient to the
553-1 exercise of the powers, rights, privileges, and functions conferred
553-2 on it by this chapter. The contracts or instruments may be with
553-3 the United States and its agencies, with counties, cities,
553-4 municipal corporations, political subdivisions, and districts, and
553-5 with private persons, partnerships, associations, and corporations.
553-6 The authority shall make and execute the contracts and instruments
553-7 in accordance with the procedures provided by this section.
553-8 (b) Concerning any wholesale contract for the sale,
553-9 purchase, procurement, distribution, or supply of water or
553-10 conservation storage capacity or for the construction of a
553-11 navigable canal or waterway or any contract authorized by Section
553-12 411.003, Local Government Code, the manager shall publish a notice
553-13 describing the general nature of the contract once each week for
553-14 three consecutive weeks in a newspaper of general circulation in
553-15 each county in the authority within which the contract is to have
553-16 effect. The contract may be considered and acted on at the next
553-17 regular meeting of the board following the last date of publication
553-18 or, without further notice, at any meeting thereafter. The
553-19 affirmative vote of at least seven members of the board is required
553-20 for the approval of confirmation or ratification of the contract.
553-21 Of those seven affirmative votes, at least three affirmative votes
553-22 must be cast by directors from Bexar County, at least one
553-23 affirmative vote must be cast by a director from Wilson County, at
553-24 least one affirmative vote must be cast by a director from Karnes
553-25 County, and at least one affirmative vote must be cast by a
553-26 director from Goliad County. The authority may use any such
554-1 contract as the sole basis, or as a supplement to the basis, for
554-2 securing the authority's bonds.
554-3 (c) Concerning any construction, maintenance, operation or
554-4 repair contract, any contract for the purchase of material,
554-5 equipment, or supplies, or any contract for services other than
554-6 professional services, if the contract will require an estimated
554-7 expenditure of more than the maximum amount for which competitive
554-8 bidding is required by statute for any political subdivision of the
554-9 state or if the contract is for a term of two years or more, the
554-10 board, on the affirmative vote of a majority of a quorum present at
554-11 any regular or special meeting, shall award the contract to the
554-12 lowest and best bidder after publication of a notice to bidders
554-13 once each week for three consecutive weeks. The board by bylaw
554-14 shall promulgate the procedures for the publication of notice to
554-15 bidders and related procedures and may, within the limitations
554-16 provided by this section, from time to time prescribe the amount of
554-17 estimated expenditures to be subjected to competitive bidding. In
554-18 the event of an emergency, the authority may let such contracts as
554-19 are necessary to protect and preserve the public health and welfare
554-20 or the properties of the authority without such bidding procedures.
554-21 Members of the board shall be ineligible to submit such bids. Any
554-22 provision of this section to the contrary notwithstanding, the
554-23 authority may purchase surplus property from the United States by
554-24 negotiated contract and without the necessity of advertising for
554-25 bids.
554-26 Sec. 271.015. GENERAL POWERS AND DUTIES. (a) The authority
555-1 is vested with such title and right of control as the state has, or
555-2 may have, in, to, and concerning the natural bed and banks of the
555-3 San Antonio River in its entire length, and all of its tributaries
555-4 as are within the boundaries of the authority as defined by Section
555-5 271.003, and the authority is further vested with such title and
555-6 right of control as the state has, or may have, in, to, and
555-7 concerning the natural bed and banks of any other navigable stream
555-8 or tributary of such stream as may be situated within the
555-9 boundaries of the authority; which investment, however, shall be in
555-10 trust and to authorize the authority to make such uses or
555-11 disposition of such lands and rights and the proceeds, income,
555-12 revenues, or trading values of those lands and rights as in actual
555-13 experience may prove to be reasonably required for, or in aid of,
555-14 the accomplishment of the purposes of this chapter.
555-15 (b) The authority may make preliminary investigations and
555-16 surveys in the manner and for the purposes specified in Chapters 49
555-17 and 51, either independently at its own cost or jointly with
555-18 others, or may contribute to the cost of investigations and surveys
555-19 when done by another, in order to procure cooperation by the
555-20 government of the United States to the end that any project
555-21 lawfully within the purposes of this chapter may be approved for
555-22 construction as a federal project under such contractual terms and
555-23 conditions as may be demanded by the congress.
555-24 (c) The authority may expend all sums reasonably determined
555-25 by the board to be necessary or expedient for seeking cooperation
555-26 in accomplishing the objectives of this chapter from the federal
556-1 government or any and all other persons, creatures, or entities,
556-2 whether natural or creatures of law or contract.
556-3 (d) Subject to the provisions of this chapter, the authority
556-4 may sell or otherwise dispose of property of any kind, real,
556-5 personal, or mixed, or any interest in property, that is not
556-6 necessary to the carrying on of the business of the authority.
556-7 (e) The authority may overflow and inundate any public lands
556-8 and public property and may require the relocation of roads and
556-9 highways in the manner and to the extent permitted to districts
556-10 organized under general laws pursuant to Section 59, Article XVI,
556-11 Texas Constitution. If the authority, in the exercise of the power
556-12 of eminent domain or power of relocation or any other power granted
556-13 under this chapter, makes necessary the relocation, raising,
556-14 rerouting, changing the grade, or altering the construction of any
556-15 railroad or street railway, all such necessary relocation, raising,
556-16 rerouting, changing of grade, or alteration of construction shall
556-17 be accomplished at the sole expense of the authority.
556-18 (f) The authority may construct, extend, improve, maintain,
556-19 and reconstruct, may cause to be constructed, extended, improved,
556-20 maintained, and reconstructed, and may use and operate, facilities
556-21 of any kind necessary or convenient to the exercise of the powers,
556-22 rights, privileges, and functions conferred on the authority by
556-23 this chapter.
556-24 (g) The authority may sue and be sued in its corporate name.
556-25 (h) The authority may adopt, use, and alter a corporate
556-26 seal.
557-1 (i) The authority may adopt and amend its bylaws for the
557-2 management of its affairs.
557-3 (j) The authority may appoint officers, agents, employees,
557-4 and professional consultants, who may not have any interest, direct
557-5 or indirect, in any contracts awarded by the authority.
557-6 (k) The authority may prescribe the duties and set the
557-7 compensation of all officers, agents, employees, and professional
557-8 consultants.
557-9 (l) The authority may acquire by purchase, lease, or gift or
557-10 in any other lawful manner and may maintain, use, and operate
557-11 property of any kind, real, personal or mixed, or any interest in
557-12 property, within and outside the boundaries of the authority,
557-13 necessary or convenient to the exercise of the powers, rights,
557-14 privileges, and functions conferred on the authority by this
557-15 chapter, in the manner provided by general law with respect to
557-16 condemnation or, at the option of the authority, in the manner
557-17 provided by the statutes relative to condemnation by districts
557-18 organized under general law pursuant to Section 59, Article XVI,
557-19 Texas Constitution.
557-20 (m) The authority may condemn lands used or dedicated for
557-21 cemetery purposes in the manner provided by general law if
557-22 reasonably necessary to effectuate the powers, rights, privileges,
557-23 and functions of the authority; provided, however, that when the
557-24 power of condemnation is sought to be exercised with respect to a
557-25 perpetual care cemetery, as defined in Section 711.001, Health and
557-26 Safety Code, as to the condemnation of the perpetual care cemetery
558-1 or a portion of the cemetery, jurisdiction for such purpose is
558-2 conferred by this section on the district court or courts of the
558-3 county in which the cemetery land or any part of the cemetery land
558-4 is located, and the condemnation action shall likewise involve the
558-5 issue of the removal of the dedication of the land as a perpetual
558-6 care cemetery and the issue of the necessity for such taking.
558-7 (n) The authority may borrow money for its corporate
558-8 purposes, may execute proper notes or other evidences of
558-9 indebtedness, and may borrow money and accept grants from the
558-10 United States and in connection with any such loan or grant, may
558-11 enter into such agreements as the United States or such corporation
558-12 or agency may require. The authority may issue negotiable bonds
558-13 for money borrowed in the manner and to the extent provided in
558-14 Section 271.029; provided, however, that nothing in this chapter
558-15 shall be construed to authorize the issuance of any bonds, notes,
558-16 or other evidences of indebtedness of the authority except as
558-17 specifically provided by this chapter, and no issuance of bonds,
558-18 notes, or other evidences of indebtedness, except as specifically
558-19 provided by this chapter, shall ever be authorized except by an act
558-20 of the legislature.
558-21 (o) The authority may obtain loans from and accept grants
558-22 from the United States and its agencies and from the state and its
558-23 agencies and may participate in and be the beneficiary of any plan
558-24 which may be evolved by the state or federal government for
558-25 guaranteeing or otherwise subsidizing the obligations of the
558-26 authority.
559-1 (p) The authority may adopt and promulgate by ordinance all
559-2 reasonable rules and regulations for purposes provided in this
559-3 chapter and generally to secure and protect all of its property and
559-4 all of its works of improvement and to regulate residence, hunting,
559-5 fishing, boating, and camping, and all recreational and business
559-6 privileges, on any navigable river of the authority or any
559-7 reservoir of the authority or on any land owned by the authority.
559-8 The authority may prescribe a reasonable and commensurate penalty
559-9 for the violation of a rule or regulation of the authority. The
559-10 penalty, which shall be cumulative of any penalties fixed by
559-11 general law, may not exceed a fine of $200 or imprisonment for 180
559-12 days or both a fine and imprisonment. A rule or regulation that
559-13 provides a penalty for a violation does not take effect, as to
559-14 enforcement of the penalty, until five days after the authority has
559-15 published a substantive statement of the rule or regulation and the
559-16 penalty for the violation once a week for three consecutive weeks
559-17 in a newspaper of general circulation in each county in which the
559-18 rule or regulation is to be effective. The substantive statement
559-19 to be published must be as condensed as possible and must afford
559-20 sufficient notice as to the act forbidden by the rule or
559-21 regulation. One notice may embrace any number of regulations. The
559-22 notice must state that breach of the regulation or regulations will
559-23 subject the violator to the imposition of a penalty and that the
559-24 full text of the regulations is on file in the principal office of
559-25 the authority, where it may be read by any interested person. Five
559-26 days after the third publication of the notice required by this
560-1 subsection, the advertised regulation shall be in effect and
560-2 ignorance of the regulation shall not constitute a defense to
560-3 prosecution for the enforcement of a penalty. After the required
560-4 publication, the rules and regulations authorized by this
560-5 subsection shall judicially be known to the courts and shall be
560-6 considered of a nature like unto that of a valid penal ordinance of
560-7 a city of the state. The authority shall be primarily liable for
560-8 any court costs incurred under this subsection and for the cost to
560-9 maintain any offender committed for imprisonment under this
560-10 subsection. A fine imposed in a proceeding under this subsection
560-11 and paid in money shall be payable to the authority and applied as
560-12 the board directs.
560-13 (q) The authority may designate an official newspaper of the
560-14 authority in each county in the authority. Each of the newspapers
560-15 must be a newspaper with general circulation in the county in which
560-16 it is located.
560-17 (r) The authority may acquire rights-of-way necessary to
560-18 construct, operate, and maintain roads necessary for ingress and
560-19 egress to any work of improvement or to any park, recreational
560-20 facility, or fish or wildlife preserve or reserve.
560-21 (s) The authority may grant concessions and franchises on
560-22 the premises of any works of improvement or any park, recreational
560-23 facility, or fish or wildlife preserve or reserve to any person or
560-24 corporation.
560-25 (t) When germane to the accomplishment of the purposes of
560-26 this chapter, and not otherwise adequately provided by Chapters 49
561-1 and 51 or provided elsewhere in this chapter, the board may adopt
561-2 and promulgate ordinances, which may be done by a majority, except
561-3 as specifically provided elsewhere in this chapter, of the
561-4 directors present at any meeting held in compliance with the
561-5 provisions of the bylaws at which a majority of the board is
561-6 present, constituting a quorum. Notice is not required before the
561-7 passage of an ordinance, except for notice of a special or regular
561-8 meeting of the board as may be provided elsewhere in this chapter.
561-9 After an ordinance is adopted, the board shall cause the ordinance
561-10 to be filed and recorded in the official records of the authority.
561-11 The board may, within its discretion, in addition to filing and
561-12 recording the ordinance in the official records of the authority,
561-13 either cause certified copies of the ordinance to be immediately
561-14 filed of record in the office of the county clerk of each county
561-15 situated in whole or in part within the authority within which the
561-16 ordinance is intended to have application or cause the ordinance to
561-17 be published once or more each week for three or more consecutive
561-18 weeks in a newspaper or newspapers of general circulation in each
561-19 county within the authority within which the ordinance is intended
561-20 to have application. Following any or all of these methods of
561-21 recording or publication, the ordinance shall be in full force and
561-22 effect, and all courts and persons shall be held to have knowledge
561-23 of it, just as though the ordinance had been included in this
561-24 chapter. The county clerk in any county shall file and record all
561-25 certified copies of the ordinance and shall charge for such filing
561-26 and recording the same fees as is provided for recording deeds of
562-1 conveyance. If Title 4 does not provide a specific power or right
562-2 germane to, or appropriate to, or adequate to accomplish a purpose
562-3 of this chapter, and the specific power has been, or may be,
562-4 conferred by law on counties, cities, water improvement districts,
562-5 water control and improvement districts, drainage districts,
562-6 navigation districts, canal corporations, channel and dock
562-7 corporations, deep water corporations, railway corporations,
562-8 terminal railway corporations, telegraph and telephone
562-9 corporations, or other like creatures of the law, then to the
562-10 extent required to make the powers and rights of the authority
562-11 adequate for that purpose, the authority may by ordinance adopt so
562-12 much of the power and right of an entity described by this
562-13 subsection as will enable the authority to effectively accomplish
562-14 that purpose. The adoption of a power or mode of procedure under
562-15 this subsection does not include any incidental limitation that
562-16 would impede the lawful accomplishment of the purposes of this
562-17 chapter. This provision is limited only by the provisions of the
562-18 constitutions of the United States and the state concerning the
562-19 rights of others.
562-20 (u) The authority has all the powers, rights, and
562-21 regulations for government and procedure, as are contained in
562-22 Chapters 49 and 51, which shall be cumulative of those provided by
562-23 this chapter, and such rules for procedure as may be provided by
562-24 ordinances adopted by the authority under other provisions of this
562-25 chapter.
562-26 Sec. 271.016. MASTER PLAN. (a) The authority shall prepare
563-1 a master plan for the maximum development of the soil and water
563-2 resources of the entire authority, including plans for the complete
563-3 utilization, for all economically beneficial purposes, of the water
563-4 resources of the authority. The master plan shall be filed with
563-5 and approved by the commission. The master plan may be amended or
563-6 supplemented from time to time by the authority; provided, however,
563-7 that a copy of the amendment or supplement to the master plan shall
563-8 be filed with and approved by the commission. The first master
563-9 plan, as amended or supplemented, is effective for a period of 10
563-10 years from the date of its approval by the commission. On the
563-11 expiration of each 10-year period, the authority shall revise its
563-12 master plan, and a copy of the revised master plan shall be filed
563-13 with and approved by the commission.
563-14 (b) Before the adoption of the master plan or any amendment
563-15 or supplement to or revision of the master plan, the board shall
563-16 give notice to the public that it proposes to adopt the master
563-17 plan, amendment, supplement, or revision by causing a notice
563-18 describing the general nature of the master plan, amendment,
563-19 supplement, or revision to be published once each week for three
563-20 consecutive weeks in a newspaper of general circulation in each
563-21 county in the authority.
563-22 (c) In addition to the publication required under Subsection
563-23 (b), a copy of the notice shall be transmitted by the manager of
563-24 the authority, by registered or certified mail, to the county judge
563-25 of each county within the authority, to the mayor of each
563-26 incorporated municipality within the authority, and to the manager
564-1 or presiding director of every water district within the authority
564-2 that has registered with the commission under Section 49.010. The
564-3 notice must be mailed not less than 20 days before the regular
564-4 meeting at which the master plan, amendment, supplement, or
564-5 revision is to be considered for the first time.
564-6 (d) The master plan, amendment, supplement, or revision may
564-7 be considered and approved at the next regular meeting of the board
564-8 following the last date of publication or, without further notice,
564-9 at any regular meeting thereafter. The affirmative vote of at
564-10 least seven members of the board is required for the approval of
564-11 the master plan, or any amendment or supplement to the master plan
564-12 or revision of the master plan. Of those seven affirmative votes,
564-13 at least four affirmative votes must be cast by directors from
564-14 Bexar County, at least one affirmative vote must be cast by a
564-15 director from Wilson County, at least one affirmative vote must be
564-16 cast by a director from Karnes County, and at least one affirmative
564-17 vote must be cast by a director from Goliad County.
564-18 (e) After the master plan is filed with the commission, the
564-19 plan of any water development proposal within the entire authority
564-20 not exempted by law from the requirement for procuring a permit
564-21 shall be submitted to the commission, and a copy of the plan shall
564-22 be furnished to the authority at its principal office by the party
564-23 proposing the development, who shall notify the commission of
564-24 compliance with this subsection. The authority shall make its
564-25 recommendations in reference to the proposed development to the
564-26 commission within 60 days after receipt of a copy of the water
565-1 development plan. The commission shall hold a hearing at which the
565-2 proponents of the proposed water development plan and the authority
565-3 shall have an opportunity to present their evidence and
565-4 recommendations to the commission. The commission shall approve or
565-5 disapprove the proposed water development plan, notwithstanding any
565-6 provision of the authority's master plan, in accordance with the
565-7 applicable provisions of this code.
565-8 (f) The master plan, and all amendments or supplements to or
565-9 revisions of the master plan, shall be prepared so as to carry out
565-10 the purposes of Sections 11.123, 12.014, 16.012, and 16.018 and the
565-11 rules and regulations of the commission.
565-12 Sec. 271.017. AUTHORITY CONSTABULARY. In order to
565-13 accomplish the objectives of this chapter, the authority may
565-14 constitute and maintain its own independent constabulary under oath
565-15 and bond, insofar as is applicable, conditioned as is provided for
565-16 a sheriff of a county. The constabulary shall police the
565-17 authority's property and its controlled facilities and may make
565-18 arrests to prevent injury to the properties or after the offense or
565-19 violation of any penal ordinance of the authority, and, on
565-20 complaint or indictment lawfully had on the offense or violation,
565-21 may make arrests either within or beyond the boundaries of the
565-22 authority.
565-23 Sec. 271.018. DUTIES OF CERTAIN STATE OFFICERS. The
565-24 commission shall cooperate with the authority in the making of
565-25 investigations and plans and the approval of plans for improvements
565-26 to be provided by the authority. The plans are subject to approval
566-1 by the commission when appropriate under the general laws of the
566-2 state; provided, only, that if the federal government has adopted a
566-3 plan for improvements, the plan shall control as to all matters
566-4 except the use of water already under permit from the state.
566-5 Sec. 271.019. BOARD OF DIRECTORS; QUALIFICATIONS OF
566-6 DIRECTORS; VACANCIES; TERM OF OFFICE. (a) The government and
566-7 control of the authority are vested in a board of directors. The
566-8 board consists of 12 directors. Six of the directors must be
566-9 elected from Bexar County, two from Wilson County, two from Karnes
566-10 County, and two from Goliad County.
566-11 (b) Each director serves for a term of six years, and holds
566-12 office until a successor is elected and has qualified by taking the
566-13 oath of office.
566-14 (c) Before assuming the person's duties as director, each
566-15 director shall take the constitutional oath of office, which shall
566-16 be filed in written form with the secretary of the board.
566-17 (d) Vacancies occurring on the board from any county shall
566-18 be filled by appointment by the governor, with the advice and
566-19 consent of the senate, for the unexpired term.
566-20 (e) Any person over the age of 21 years residing within the
566-21 authority and within the county from which the person is elected or
566-22 appointed and possessing the qualifications of a juror is eligible
566-23 to be elected or appointed and to serve as a director.
566-24 Sec. 271.020. ELECTION OF DIRECTORS. (a) All elections
566-25 within the authority must be conducted in accordance with rules
566-26 provided by the bylaws and the Election Code. The results of all
567-1 elections shall be canvassed by the board at the next regular
567-2 meeting following each biennial election. All elections shall be
567-3 held on the third Saturday in January of each odd-numbered year and
567-4 at the polling places designated by the board. The terms of office
567-5 of directors elected at each election after the first election
567-6 shall commence on the first day of February following their
567-7 election. Elections shall be conducted as provided by this
567-8 section.
567-9 (b) Persons seeking to have their names placed on the ballot
567-10 shall make application to the secretary of the board in accordance
567-11 with rules prescribed by the board either in the ordinance calling
567-12 the election or in the bylaws.
567-13 (c) The secretary of the board shall make up the ballot for
567-14 each county from the names of candidates who have filed
567-15 applications, and the placing of the names of the candidates on the
567-16 ballot shall be determined by lot. The drawing of lots for the
567-17 placing of the names of the candidates on the ballot shall be by
567-18 the secretary of the board, and all candidates, or their designated
567-19 representatives, may be present at the drawing.
567-20 (d) The directors from Wilson, Karnes, and Goliad counties
567-21 shall be elected at large from each county. Four directors from
567-22 Bexar County shall be elected from single-member districts and two
567-23 directors shall be elected at large. The four single-member
567-24 districts shall be coterminous with and bear the same number as the
567-25 Bexar County commissioners precincts. A candidate for a
567-26 single-member district position must live in the district the
568-1 candidate seeks to represent.
568-2 (e) The candidates receiving the greatest number of votes,
568-3 that is a plurality, shall be declared elected. Should there be a
568-4 tie in the votes received, the winner of the election shall be
568-5 determined by a majority of the board. The two at-large directors
568-6 of Bexar County shall be elected simultaneously by plurality, and
568-7 the two candidates receiving the greatest number of votes shall be
568-8 declared elected.
568-9 (f) Directors serving from single-member districts at the
568-10 time new single-member districts are adopted shall serve for the
568-11 remainder of the terms to which they were elected regardless of the
568-12 redistricting.
568-13 Sec. 271.021. COMPENSATION AND EXPENSES OF DIRECTORS. A
568-14 director is entitled to the compensation and allowances established
568-15 by general law for each day of official service, whether at a
568-16 meeting of the board or while serving on a committee of the board,
568-17 and in addition is entitled to reimbursement for all expenses
568-18 necessarily incurred by reason of such service. A meeting shall be
568-19 considered a day of service; provided, however, that no charge
568-20 shall be made for more than one meeting held on any one day, and a
568-21 director may not be paid per diem in excess of 150 days in any one
568-22 fiscal year, exclusive of reimbursement for expenses, as
568-23 compensation for service rendered as a director and as a member of
568-24 a committee.
568-25 Sec. 271.022. REMOVAL OF DIRECTORS AND OFFICERS. A director
568-26 or officer is subject to removal or suspension from office, by the
569-1 affirmative vote of eight directors, for incompetency, official
569-2 misconduct, official gross negligence, or habitual drunkenness or
569-3 for nonattendance at six consecutive regular meetings of the board;
569-4 provided, however, that a director or officer may not be removed or
569-5 suspended from office unless charges in writing are filed against
569-6 the director and the director is given the opportunity of a fair
569-7 hearing before the board.
569-8 Sec. 271.023. ORGANIZATION AND MEETINGS OF THE BOARD;
569-9 OFFICERS; QUORUM; MEETINGS. (a) At the first regular meeting of
569-10 the board held in the month of February of each odd-numbered year,
569-11 the board shall elect by majority vote a chairman, a vice chairman,
569-12 a secretary, and a treasurer, and, within the discretion of the
569-13 board, an assistant secretary and an assistant treasurer, who need
569-14 not be members of the board and who may be granted limited powers
569-15 in the bylaws. The officers so elected shall serve for a term of
569-16 two years and until their successors have been elected, except that
569-17 the assistant secretary and the assistant treasurer, if such
569-18 officers are elected, shall hold office at the pleasure of the
569-19 board.
569-20 (b) A quorum at all meetings of the board shall consist of
569-21 not less than seven members. A quorum at all meetings of the
569-22 executive committee shall consist of not less than three members.
569-23 Regular and special meetings of the board shall be held as provided
569-24 by the bylaws, and notice of the meetings shall be given as
569-25 required by the bylaws. The board shall meet periodically with the
569-26 commission. All meetings of the board shall be open to the public.
570-1 Sec. 271.024. POWERS OF THE BOARD AND EXECUTIVE COMMITTEE;
570-2 MANAGER; EMPLOYEES; SURETY BONDS. (a) The board shall be
570-3 responsible for the management and control of all affairs of the
570-4 authority. The board may exercise the powers provided by this
570-5 section.
570-6 (b) The board may exercise all the powers, rights,
570-7 privileges, and functions conferred by law on the authority.
570-8 (c) The board may adopt all such bylaws as are not
570-9 inconsistent with the law. The bylaws may provide for the
570-10 designation by the board of an executive committee of five members
570-11 upon whom the manager may call for policy decisions and advice
570-12 concerning matters that arise between meetings of the board. The
570-13 executive committee may authorize, on behalf of the authority, the
570-14 execution of any contract involving the expenditure of an amount
570-15 not exceeding $20,000.
570-16 (d) The board may appoint and set the salary of a manager,
570-17 who shall be the chief executive officer of the authority. The
570-18 manager shall employ and supervise, subject to policies promulgated
570-19 by the board, all employees, agents, accountants, attorneys,
570-20 engineers, and others rendering professional services necessary and
570-21 required to accomplish the purposes of this chapter. The manager
570-22 may execute, on behalf of the authority, without specific
570-23 authorization of the board, any contract not subject to competitive
570-24 bidding. The manager may execute on behalf of the authority and
570-25 with specific authorization of the board, any other contract.
570-26 (e) Except as specifically provided by this chapter, all the
571-1 powers, rights, privileges, and functions of the authority may be
571-2 exercised by a majority of the directors present at a meeting of
571-3 the board, or of the executive committee if the sum involved is no
571-4 greater than $20,000, held in compliance with the provisions of the
571-5 bylaws provided a majority of the board, or of the executive
571-6 committee, is present, constituting a quorum.
571-7 (f) The board shall have all such additional powers as may
571-8 be conferred on the authority by other provisions of this chapter,
571-9 Section 59, Article XVI, Texas Constitution, and Chapters 49 and
571-10 51; provided, however, that the directors shall be ineligible to
571-11 engage in any transaction for gain or profit with the authority.
571-12 (g) The directors and all officers of the authority who are
571-13 not directors shall, within 15 days after their election or
571-14 appointment, file a good and sufficient bond with the secretary of
571-15 the board. The official bond of each director and officer shall be
571-16 in the sum of $5,000, shall be payable to the authority, shall be
571-17 conditioned on the faithful performance of the person's duties as
571-18 director or officer, and shall be subject to approval by the
571-19 secretary of the board.
571-20 Sec. 271.025. AUDIT. (a) A complete system of accounts
571-21 shall be kept by the authority in accordance with generally
571-22 accepted principles of accounting. The state auditor shall
571-23 annually audit the books and accounts of the authority in such
571-24 manner as to enable the state auditor to report to the legislature
571-25 as to the manner and purpose of the expenditure of all funds of the
571-26 authority. The audit shall cover the fiscal year from July 1 to
572-1 June 30, and a report of the audit shall be made before January 1
572-2 of each year. A copy of the audit report shall be filed with the
572-3 governor, the lieutenant governor, the attorney general, the
572-4 speaker of the house of representatives, the county judge of each
572-5 county included in the authority, and each state senator and member
572-6 of the house of representatives of each county within the
572-7 authority.
572-8 (b) The state auditor, after completing the report, shall
572-9 prepare a detailed statement showing the actual cost of the audit
572-10 and shall certify the statement to the governor for approval. The
572-11 statement, when approved by the governor, shall be delivered to the
572-12 manager of the authority, and the authority shall immediately
572-13 deposit the amount of the cost with the comptroller, which amount
572-14 shall be placed in the general fund of the state. Nothing in this
572-15 section shall prohibit the authority from employing the
572-16 professional services of an independent certified public accountant
572-17 or firm of certified public accountants for any purpose. All
572-18 books, accounts, contracts, records, papers, and archives of the
572-19 authority shall be kept and maintained at the authority's general
572-20 office and shall be open to public inspection at all reasonable
572-21 times.
572-22 Sec. 271.026. PAYMENT OF DEBTS. Each indebtedness,
572-23 liability, or obligation of the authority for the payment of money,
572-24 however entered into or incurred and whether arising from express
572-25 contracts or implied contracts or otherwise, shall be payable
572-26 solely out of revenue received by the authority with respect to its
573-1 properties and out of any other funds or income from any source
573-2 whatsoever coming into possession of the authority including
573-3 proceeds of the sale of bonds.
573-4 Sec. 271.027. TAXATION. (a) Subject to the limitation as
573-5 to the maximum rate of tax as prescribed in this section, the
573-6 authority may levy and collect throughout the territory of the
573-7 authority such ad valorem taxes as are voted at an election or
573-8 elections called by the board for that purpose and conducted
573-9 throughout the territory of the authority. The maximum rate of tax
573-10 that can be levied and collected for any year shall be two cents on
573-11 the $100 of taxable property based on its assessed valuation, in
573-12 accordance with the conditions and procedures provided by this
573-13 section.
573-14 (b) The board may, by ordinance, call an election to submit
573-15 to the voters for approval of an ad valorem tax; provided, however,
573-16 that a public hearing to discuss the proposed tax issue shall be
573-17 held in each county in the authority. The public hearings shall be
573-18 held not less than 10 days nor more than 25 days prior to the
573-19 scheduled date of the election. The hearings shall be called by
573-20 the board and notice of the time, day, date, place, and purpose of
573-21 the hearings shall be given by publishing the notice in at least
573-22 one newspaper of general circulation in each county where a hearing
573-23 is to be held at least 10 days before the hearing.
573-24 (c) Only qualified electors residing within the boundaries
573-25 of the authority shall be entitled to vote in the election. An
573-26 elector otherwise qualified must vote in the county of the
574-1 elector's residence and at the polling place designated for the
574-2 precinct of the elector's residence. The ordinance calling the
574-3 election shall specify the polling place or places in each of the
574-4 counties. The notice of election will be sufficient as to any
574-5 county within the authority if it states that the election is to be
574-6 held throughout the territory comprising the authority and if it
574-7 specifies the polling place or places in the county. It shall not
574-8 be necessary to publish such details except in the county in which
574-9 they are applicable.
574-10 (d) Returns of the election shall be made to the board, and
574-11 the board shall canvass the returns of the election and adopt an
574-12 ordinance declaring the results. The board may levy taxes within
574-13 the maximum rate voted if a majority of the votes cast throughout
574-14 the authority are in favor of the levy of the tax and if a majority
574-15 of the votes cast in any three counties in the authority are in
574-16 favor of the levy of the tax.
574-17 (e) The rate of tax shall be uniform throughout the
574-18 territory comprising the authority and shall be certified by the
574-19 chairman and the secretary of the board to the tax assessor and the
574-20 tax collector of each included county.
574-21 (f) If the election results are in favor of the levy of a
574-22 tax, the board may borrow money payable from the tax and may
574-23 evidence such loan by a negotiable note given in the name of the
574-24 authority.
574-25 (g) Taxes collected under this section shall be used for the
574-26 purpose of general administration, preparation of the master plan
575-1 provided for in Section 271.016, and for other planning and
575-2 services with respect to any of the purposes, rights, privileges,
575-3 and functions of the authority; provided, however, that none of the
575-4 taxes thus collected shall be used to pay for or finance the
575-5 construction of any dams, reservoirs, levees, channels, pipelines,
575-6 or other major physical works of the authority, to pay for the cost
575-7 of any right-of-way acquisitions or the expenses of right-of-way
575-8 acquisition, or to pay damages awarded by any court under Section
575-9 17, Article I, Texas Constitution. It is the intent of this
575-10 chapter that any taxes collected under this section will enable the
575-11 authority to develop a master plan for the maximum development of
575-12 the soil and water resources of the authority, it being found and
575-13 determined that the benefits to be realized from such maximum
575-14 development can be obtained only through areawide participation and
575-15 planning. The construction of any dams, reservoirs, levees,
575-16 channels, pipelines, or other major physical works of the authority
575-17 shall be paid for or financed by revenue bonds of the authority to
575-18 be redeemed either by the sale of services or by taxes to be levied
575-19 by a county or municipality and paid over to the authority as an
575-20 independent contractor of the county or municipality. Any taxes
575-21 collected under this section may be used to pay for the operation,
575-22 repair, or maintenance of any flood control, soil conservation,
575-23 watershed protection or erosion structures, or works of improvement
575-24 constructed in cooperation with the federal government; provided,
575-25 however, that any such operation, repair, or maintenance costs
575-26 shall be paid for out of taxes collected under this section in the
576-1 county in which the structure or work of improvement is located.
576-2 The taxes authorized by this section and collected shall not be
576-3 pledged to the redemption of any bonds of the authority.
576-4 Sec. 271.028. RENDITION, ASSESSMENT, LEVYING, AND COLLECTION
576-5 OF TAXES. (a) The rendition and assessment of property for
576-6 taxation and the collection of taxes for the benefit of the
576-7 authority shall be in accordance with the law applicable to
576-8 counties, insofar as such law is applicable. Renditions shall be
576-9 to the county tax assessor of the county in which the property is
576-10 taxable for state and county purposes. The assessor and collector
576-11 in each county shall cause to be placed on the county tax rolls
576-12 such additional column or columns as are needed to show the tax
576-13 levied by the authority and the amount of the tax, based on the
576-14 value of the property as approved finally for state and county
576-15 purposes by the board of equalization of the county. The fee for
576-16 assessing and collecting taxes shall be two percent of the taxes
576-17 collected. The fee shall be paid over and disbursed in each county
576-18 in the manner that other fees of office are paid over. All of the
576-19 laws for the enforcement of state and county taxes shall be
576-20 available to the authority. The authority has the right to cause
576-21 the officers of each county to enforce the taxes due to the
576-22 authority in that county as provided in the law for the enforcement
576-23 of state and county taxes.
576-24 (b) Taxes assessed and levied for the benefit of the
576-25 authority shall be payable and shall become delinquent at the same
576-26 time, in the same manner, and subject to the same discount for
577-1 advance payment as taxes levied by and for the benefit of the
577-2 county in which the property is taxable. The fee for collecting
577-3 delinquent taxes through prosecution of suit shall be 15 percent of
577-4 the taxes collected by the suit, to be paid over and disbursed in
577-5 each county in the manner that other fees of office are paid over.
577-6 Sec. 271.029. ISSUANCE OF BONDS. (a) For the purpose of
577-7 constructing improvements related to the exercise of any power or
577-8 powers conferred on the authority by law, the authority may issue
577-9 negotiable bonds, either as a single issue or in separate issues,
577-10 from time to time, to be secured by a pledge of revenues, income,
577-11 and funds of the authority without reference to their source and
577-12 having such priority of liens on the revenues, income, and funds as
577-13 may be prescribed in the proceedings authorizing the issuance of
577-14 the bonds; provided, however, that no ad valorem taxes collected in
577-15 accordance with the provisions of Sections 271.027 and 271.028
577-16 shall be pledged to any issue or issues of bonds.
577-17 (b) The authority may issue the bonds provided for in this
577-18 section by action of the board without the necessity of an
577-19 election.
577-20 (c) Bonds of the authority may be:
577-21 (1) sold for cash, at public sale, at such price or
577-22 prices as the board determines, provided that the interest cost of
577-23 the money received, computed to maturity in accordance with
577-24 standard bond tables in general use by banks and insurance
577-25 companies, shall not exceed six percent per year;
577-26 (2) issued on the terms the board determines in
578-1 exchange for property of any kind, real, personal, or mixed, or any
578-2 interest in the property that the board determines necessary or
578-3 convenient for any corporate purpose; or
578-4 (3) issued in exchange for principal amounts or other
578-5 obligations of the authority, matured or unmatured.
578-6 (d) The proceeds of sale of bonds may be deposited in such
578-7 banks or trust company or trust companies and may be paid out
578-8 pursuant to such terms and conditions as may be agreed between the
578-9 authority and the purchasers of the bonds.
578-10 (e) Bonds of the authority must be authorized by resolution
578-11 of the board concurred in by at least eight of the members of the
578-12 board. The bonds must bear such date or dates; mature at such time
578-13 or times; bear interest at such rate or rates not exceeding six
578-14 percent per year, payable annually or semiannually; be in such
578-15 denominations; be in such form, either coupon or registered; carry
578-16 such registration privileges as to principal only or as to both
578-17 principal and interest and as to exchange of coupon bonds for
578-18 registered bonds, or vice versa, and exchange of bonds of one
578-19 denomination for bonds of other denomination; be executed in such
578-20 manner; and be payable at such place or places, within or outside
578-21 the state, as the resolution or resolutions may provide.
578-22 (f) The resolution or resolutions authorizing the issuance
578-23 of bonds may contain provisions, which shall be part of the
578-24 contract between the authority and the purchaser and successive
578-25 holders of the bonds:
578-26 (1) reserving the right to redeem the bonds at such
579-1 time or times, in such amounts, and at such prices, not exceeding
579-2 105 percent of the principal amount of the bonds plus accrued
579-3 interest, as may be provided in the resolution;
579-4 (2) providing for the setting aside of sinking funds
579-5 or reserve funds and the regulation and disposition of such funds;
579-6 (3) pledging, to secure the payment of the principal
579-7 of and interest on the bonds and of the sinking fund or reserve
579-8 fund payments agreed to be made with respect to the bonds, part or
579-9 all of the revenue and income of every kind and character from any
579-10 source later received by the authority;
579-11 (4) prescribing the purposes to which the bonds or
579-12 bonds later issued, or the proceeds of the bonds, may be applied;
579-13 (5) agreeing to set and collect rates, charges, and
579-14 assessments sufficient to produce net revenues adequate to pay the
579-15 items specified in Subdivisions (1), (2), and (3) and prescribing
579-16 the use and disposition of all revenues;
579-17 (6) prescribing limitations on the issuance of
579-18 additional bonds and on the agreements that may be made with the
579-19 purchasers and successive holders of the bonds;
579-20 (7) relating to the construction, extension,
579-21 improvement, reconstruction, operation, maintenance, and repair of
579-22 the properties of the authority and to the carrying of insurance on
579-23 all or any part of the properties covering loss or damage or loss
579-24 of use and occupancy resulting from specified risks;
579-25 (8) fixing the procedure, if any, by which, if the
579-26 authority desires, the terms of any contract with the holders of
580-1 the bonds may be amended or abrogated, the amount of bonds the
580-2 holders of which must consent to the amendment or abrogation, and
580-3 the manner in which such consent may be given;
580-4 (9) providing for the execution and delivery by the
580-5 authority to a bank or trust company authorized by law to accept
580-6 trusts, or to the United States or any officer or agency of the
580-7 United States, of indentures and agreements for the benefit of the
580-8 holders of the bonds setting forth any or all of the agreements
580-9 authorized by this section to be made with or for the benefit of
580-10 the holders of the bonds and such other provisions as may be
580-11 customary in such indentures or agreements; and
580-12 (10) making such other provisions not inconsistent
580-13 with the provisions of this chapter as the board may approve.
580-14 Sec. 271.030. DEFAULT PROCEDURES. (a) A resolution
580-15 authorizing the issuance of bonds and any indenture or agreement
580-16 entered into pursuant to the resolution may include provisions
580-17 regarding a default on the:
580-18 (1) payment of the interest on any bonds as the
580-19 interest becomes due and payable;
580-20 (2) payment of the principal of any bonds as they
580-21 become due and payable, whether at maturity, by call for
580-22 redemption, or otherwise; or
580-23 (3) performance of an agreement made with the
580-24 purchasers or successive holders of any bonds.
580-25 (b) If a default described by Subsection (a) has occurred
580-26 and has continued for a period, if any, prescribed by the
581-1 resolution authorizing the issuance of the bonds, the trustee under
581-2 the indenture or indentures entered into with respect to the bonds
581-3 authorized by the resolution, or, if there is no indenture, a
581-4 trustee appointed in the manner provided in the resolution by the
581-5 holders of 25 percent in aggregate principal amount of the bonds
581-6 authorized by the resolution and then outstanding may, and on the
581-7 written request of the holders of 25 percent in aggregate principal
581-8 amount of the bonds authorized by the resolution and then
581-9 outstanding shall, in the trustee's own name but for the equal and
581-10 proportionate benefit of the holders of all the bonds, and with or
581-11 without having possession of the bonds:
581-12 (1) by mandamus or other suit, action, or proceeding
581-13 at law or in equity, enforce all rights of the holders of the
581-14 bonds;
581-15 (2) bring suit on the bonds or the appurtenant
581-16 coupons;
581-17 (3) by action or suit in equity, require the authority
581-18 to account as if it were the trustee of an express trust for the
581-19 bondholders;
581-20 (4) by action or suit in equity, enjoin any acts or
581-21 things which may be unlawful or in violation of the rights of the
581-22 holders of the bonds; or
581-23 (5) after such notice to the authority as the
581-24 resolution may provide, declare the principal of all of the bonds
581-25 due and payable, and if all defaults have been made good, then with
581-26 the written consent of the holders of 25 percent in aggregate
582-1 principal amount of the bonds then outstanding, annul the
582-2 declaration and its consequences; provided, however, that the
582-3 holders of more than a majority in principal amount of the bonds
582-4 authorized by the resolution and then outstanding shall, by written
582-5 instrument delivered to the trustee, have the right to direct and
582-6 control any and all action taken or to be taken by the trustee
582-7 under this section.
582-8 (c) A resolution, indenture, or agreement relating to bonds
582-9 may provide that in a suit, action, or proceeding under this
582-10 section, the trustee, whether or not all of the bonds have been
582-11 declared due and payable and with or without possession of any of
582-12 the bonds, shall be entitled as of right to the appointment of a
582-13 receiver who may enter and take possession of all or any part of
582-14 the properties of the authority and operate and maintain the
582-15 properties, and set, collect, and receive rates and charges
582-16 sufficient to provide revenues adequate to apply the items set
582-17 forth in Sections 271.029(f)(1), (2), and (3) and the costs and
582-18 disbursements of the suit, action, or proceeding and apply such
582-19 revenues in conformity with the provisions of this chapter and the
582-20 resolution or resolutions authorizing the bonds.
582-21 (d) In any suit, action, or proceeding by a trustee under
582-22 this section, the reasonable fees, counsel fees, and expenses of
582-23 the trustee and of the receiver or receivers, if any, shall
582-24 constitute taxable disbursements, and all costs and disbursements
582-25 allowed by the court shall be a first charge on any revenues
582-26 pledged to secure the payment of the bonds.
583-1 (e) Subject to the provisions of the constitution, the
583-2 courts of Bexar County shall have jurisdiction of any such suit,
583-3 action, or proceeding by a trustee under this section on behalf of
583-4 the bondholders and of all property involved in the suit, action,
583-5 or proceeding.
583-6 (f) In addition to the powers specifically provided by this
583-7 section, the trustee shall have and possess all powers necessary or
583-8 appropriate for the exercise of the powers specifically provided or
583-9 incident to the general representation of the bondholders in the
583-10 enforcement of their rights.
583-11 Sec. 271.031. BOND APPROVAL AND REGISTRATION. (a) Before
583-12 bonds may be sold by the authority, a certified copy of the
583-13 proceedings for the issuance of the bonds, including the form of
583-14 the bonds, together with any other information that the attorney
583-15 general may require, shall be submitted to the attorney general,
583-16 and if the attorney general finds that the bonds have been issued
583-17 in accordance with law, the attorney general shall approve the
583-18 bonds and execute a certificate to that effect, which shall be
583-19 filed in the office of the comptroller and be recorded in a record
583-20 kept for that purpose. In lieu of the approval by the attorney
583-21 general, the authority may institute proceedings as authorized by
583-22 Chapter 1205, Government Code. The comptroller shall register the
583-23 bonds if the attorney general has filed with the comptroller the
583-24 certificate approving the bonds and the proceedings for the
583-25 issuance of the bonds as provided in this section. Bonds may not
583-26 be issued until the bonds have been registered by the comptroller.
584-1 (b) Bonds approved by the attorney general, registered by
584-2 the comptroller, and issued in accordance with the proceedings as
584-3 approved are valid and binding obligations of the authority and are
584-4 incontestable for any cause after registration.
584-5 (c) Nothing in this chapter shall prevent the authority from
584-6 making a private sale of its bonds to the Texas Water Development
584-7 Board under such terms and conditions as the board in its
584-8 discretion determines advisable, and such private sale is
584-9 specifically authorized by this chapter.
584-10 Sec. 271.032. PURCHASE OF BONDS BY AUTHORITY. The authority
584-11 may, out of any funds available for the purpose, purchase any bonds
584-12 issued by it at a price not exceeding the redemption price
584-13 applicable at the time of the purchase or, if such bonds are not
584-14 redeemable, at a price not exceeding the principal amount of the
584-15 bonds plus accrued interest. All bonds so purchased shall be
584-16 cancelled, and no bonds shall ever be issued in lieu of such bonds.
584-17 Sec. 271.033. BONDS LEGAL FOR INVESTMENT AND SECURITY. The
584-18 bonds of the authority are legal and authorized investments for
584-19 banks, savings banks, trust companies, building and loan
584-20 associations, savings and loan associations, insurance companies,
584-21 fiduciaries, trustees, and guardians and for the sinking funds of
584-22 cities, towns, villages, counties, school districts, or other
584-23 political corporations or subdivisions of the state. The bonds are
584-24 eligible to secure the deposit of all public funds of the state and
584-25 all public funds of cities, towns, villages, counties, school
584-26 districts, or other political corporations or subdivisions of the
585-1 state, and the bonds are lawful and sufficient security for such
585-2 deposits to the extent of their value when accompanied by all
585-3 unmatured coupons.
585-4 Sec. 271.034. PROPERTY OF THE AUTHORITY. (a) Nothing in
585-5 this chapter shall be construed as authorizing the authority, and
585-6 it may not be authorized, to mortgage or otherwise encumber any of
585-7 its property of any kind, real, personal, or mixed, or any interest
585-8 in such property, or to acquire any such property or interest
585-9 subject to a mortgage or conditional sale; provided, however, that
585-10 this subsection shall not be construed as preventing the pledging
585-11 of any revenues and income of the authority of every kind and
585-12 character and from any source whatever, except ad valorem taxes
585-13 collected by the authority in accordance with Sections 271.027 and
585-14 271.028.
585-15 (b) Nothing in this chapter shall be construed as
585-16 authorizing the authority or any receiver of its properties or any
585-17 court to sell, lease, or otherwise dispose of any of the
585-18 authority's property of any kind, real, personal, or mixed, or any
585-19 interest in such property, unless such sale, lease, or other
585-20 disposition has been generally authorized by this chapter;
585-21 provided, however, that the authority may sell or otherwise dispose
585-22 of property of any kind or any interest in property that is not
585-23 necessary to carry on the business of the authority if the board,
585-24 by a majority vote of a quorum present at any regular or special
585-25 meeting, determines that the property is not convenient to the
585-26 business of the authority and is surplus. The board shall cause a
586-1 notice of such proposed sale to be published once each week for
586-2 three consecutive weeks in a newspaper of general circulation in
586-3 the county or counties in which the property or interest in
586-4 property is located if the appraised value of the property or
586-5 interest in property is in excess of $5,000 and the property or
586-6 interest in property is not partial or total consideration in a
586-7 transaction for the exchange of properties.
586-8 Sec. 271.035. BONDS EXEMPT FROM TAXATION. Bonds and
586-9 interest on bonds issued under this chapter are exempt from
586-10 taxation, except inheritance taxes, by the state or by any
586-11 municipal corporation, county, or other political subdivision or
586-12 taxing district of the state.
586-13 Sec. 271.036. APPEAL BOND NOT REQUIRED. The authority may
586-14 not be required to give bond on any appeal from judgment in any
586-15 court.
586-16 Sec. 271.037. FULL AUTHORITY TO ISSUE BONDS. This chapter,
586-17 without reference to other statutes of the state, constitutes full
586-18 authority for the authorization and issuance of bonds under this
586-19 chapter, and no other act or law with regard to the authorization
586-20 or issuance of obligations or the deposit of the proceeds of
586-21 obligations or in any way impeding or restricting the carrying out
586-22 of the acts authorized by this chapter shall be construed as
586-23 applying to any proceedings taken or acts done pursuant to this
586-24 chapter.
586-25 Sec. 271.038. CONTRACT WITH BEXAR COUNTY. Recognizing the
586-26 fact that the authority has previously entered into a contract with
587-1 the Commissioners Court of Bexar County for the purpose of
587-2 financing the construction of certain flood control and soil
587-3 conservation works of improvement in Bexar County, the authority is
587-4 prohibited from spending any income or revenue derived from the
587-5 contract and from all amendments to or reformations of the contract
587-6 for any purpose other than those specifically provided for in this
587-7 chapter; provided, however, that a reasonable amount of the income
587-8 or revenue may be allocated by the board for the payment of the
587-9 authority's overhead, operational costs, and the fees of the
587-10 directors who reside in Bexar County.
587-11 Sec. 271.039. POLLUTION CONTROL DISTRICT. (a) The
587-12 authority may establish one or more pollution control districts for
587-13 the purpose of accomplishing any of the powers, purposes, rights,
587-14 privileges, or authority vested in the authority regarding waste
587-15 treatment. Pollution control districts may be established by the
587-16 procedures provided by this section.
587-17 (b) The board may adopt a resolution calling for the
587-18 creation of a pollution control district, defining the boundaries
587-19 of the district, and:
587-20 (1) estimating the principal amount of and stating the
587-21 purpose of bonds proposed to be issued by the authority on behalf
587-22 of the proposed pollution control district, declaring that taxes
587-23 for the payment of the proposed bonded indebtedness shall be levied
587-24 exclusively on the taxable property within the proposed pollution
587-25 control district, and setting a time and place for a public hearing
587-26 on the matters set out in the resolution; or
588-1 (2) declaring that taxes for the maintenance of the
588-2 authority and its improvements shall be levied on the taxable
588-3 property within the proposed pollution control district and setting
588-4 a time and place for a public hearing on the matters set out in the
588-5 resolution.
588-6 (c) The resolutions authorized by Subsection (b) may be
588-7 adopted simultaneously, and simultaneous hearings on proposed bond
588-8 and maintenance taxes may be held.
588-9 (d) The public hearing may be conducted by a quorum of the
588-10 board, by one or more directors, or by one or more employees
588-11 designated by the board. If someone other than a quorum of the
588-12 board conducts the hearing, the person or persons shall have power
588-13 to accept evidence and make recommendations on which the board may
588-14 act. The board may alter, modify, or change any provision of the
588-15 resolution calling for the creation of the proposed pollution
588-16 control district subsequent to the public hearing; provided,
588-17 however, that the boundaries of the pollution control district may
588-18 not be enlarged or expanded without compliance with the notice
588-19 requirements of Subsection (e).
588-20 (e) Notice of the public hearing shall be published in a
588-21 newspaper of general circulation within the proposed pollution
588-22 control district once not less than 15 or more than 30 days before
588-23 the public hearing. To the extent not inconsistent with the
588-24 provisions of this section, notice of the public hearing must
588-25 comply with Chapter 551, Government Code.
588-26 (f) All public hearings on the creation of a pollution
589-1 control district shall be held within the boundaries of the
589-2 proposed pollution control district. The public hearings may be
589-3 held concurrently or in connection with any other public hearing,
589-4 meeting, or proceeding conducted by the board.
589-5 (g) Any interested person, including persons residing or
589-6 owning property within the authority, may appear at the public
589-7 hearing and present evidence relevant to the matter set forth in
589-8 the resolution calling for the creation of the proposed pollution
589-9 control district. All persons residing within or owning property
589-10 within the proposed pollution control district shall have the right
589-11 to appear at the public hearing and present evidence with regard to
589-12 whether they will receive benefits from the proposed improvements
589-13 or taxation. Failure to appear at the public hearing shall
589-14 constitute a waiver of all objections the absent party might have
589-15 had to all matters set forth in the resolution calling for the
589-16 creation of the proposed pollution control district.
589-17 (h) The board shall review the findings and recommendations
589-18 resulting from the public hearing and may adopt a resolution
589-19 creating the pollution control district, stating the purposes for
589-20 which the pollution control district has been created, designating
589-21 the boundaries of the pollution control district, declaring that
589-22 the indebtedness to be incurred or the cost of services to be
589-23 rendered by the authority for the benefit of the pollution control
589-24 district shall be payable from taxes levied on property within the
589-25 pollution control district, finding that the property within the
589-26 pollution control district will benefit from the indebtedness
590-1 proposed to be incurred or the services proposed to be rendered by
590-2 the authority on its behalf, and calling for an election within the
590-3 pollution control district to authorize the indebtedness or
590-4 maintenance tax. The resolution shall further state the date of
590-5 the election, the proposition or propositions to be voted on, the
590-6 location of the polling places, and the names of the officers of
590-7 the election. The election may be held in conjunction with a
590-8 general election or a special election other than a primary
590-9 election. The provisions of the Election Code shall govern the
590-10 election unless contrary to any provision of this chapter.
590-11 (i) The resolution of the board creating a pollution control
590-12 district shall be final and conclusive and shall not be subject to
590-13 review by any court except on the basis of whether the resolution
590-14 is supported by substantial evidence. The resolution shall be
590-15 filed in the deed records of the county or counties in which the
590-16 territory within the pollution control district is situated.
590-17 Unless an action or a proceeding in which the validity of the
590-18 board's resolution creating a pollution control district or of the
590-19 proceedings relative to the resolution is contested, questioned, or
590-20 denied is commenced within 30 days from the effective date of the
590-21 resolution, the resolution and all proceedings relative to the
590-22 resolution, including the creation of the pollution control
590-23 district, shall be valid and in every respect legal and
590-24 incontestable.
590-25 (j) The boundaries of a pollution control district may
590-26 include any territory within the authority, whether or not the
591-1 territory contains noncontiguous parcels of land and whether or not
591-2 the territory is located within the boundaries of any incorporated
591-3 city, town, village, or any other governmental entity or political
591-4 subdivision of the state. If any portion of the territory of a
591-5 proposed pollution control district is located within the
591-6 boundaries or within the exclusive extraterritorial jurisdiction of
591-7 an incorporated city, town, or village, the board may not create
591-8 the pollution control district unless it has obtained the consent
591-9 of that city, town, or village. The consent may contain such
591-10 conditions as may be mutually agreed by the authority and the city,
591-11 town, or village and shall be evidenced by a duly enacted ordinance
591-12 of the governing body of the city, town, or village.
591-13 (k) Proceedings for the annexation of territory to an
591-14 existing pollution control district may be initiated by a
591-15 resolution of the board or by a petition signed by the owners of 50
591-16 percent or more of the value of the land subject to the proceedings
591-17 or by a petition signed by a majority of the residents of the
591-18 territory to be annexed. The petition must, insofar as is
591-19 practicable, set forth substantially those matters that would be
591-20 set forth in a resolution calling for the creation of a pollution
591-21 control district and must request a public hearing by the board on
591-22 the matters set out in the petition. The public hearing shall be
591-23 held in substantial compliance with the provisions set forth in
591-24 this section for a public hearing on creation of a pollution
591-25 control district. If the board determines that the annexation
591-26 should be accomplished, the board may adopt a resolution calling
592-1 separate elections on the matter of annexation to be held within
592-2 the existing pollution control district and within the territory to
592-3 be annexed. The annexation shall not become final unless approved
592-4 by a majority of the qualified voters within the existing pollution
592-5 control district and unless a majority of the qualified voters
592-6 within the boundaries of the territory to be annexed approve the
592-7 annexation and elect to allow the territory that is to be annexed
592-8 to be taxed for maintenance purposes or to allow the territory that
592-9 is to be annexed to assume its pro rata share of indebtedness
592-10 previously authorized or of taxes necessary to support the voted
592-11 but unissued tax bonds or tax revenue bonds of the authority that
592-12 are to be issued on behalf of the existing pollution control
592-13 district and authorize the board to levy a tax on the property in
592-14 the territory that is to be annexed for payment for the unissued
592-15 bonds, when issued. The elections shall conform to the Election
592-16 Code to the extent that the code is not inconsistent with the
592-17 provisions of this chapter. The board's resolution canvassing the
592-18 returns of the elections shall redefine the boundaries of the
592-19 pollution control district and shall be recorded in the deed
592-20 records of the county within which the annexed territory lies.
592-21 (l) Proceedings for the addition of territory to an existing
592-22 pollution control district on which less than three qualified
592-23 voters reside may be initiated by a petition signed by the owner or
592-24 owners of the territory to be annexed seeking that the territory
592-25 described in the petition be added to the pollution control
592-26 district. The petition must, to the extent applicable, set forth
593-1 substantially those matters that would be set forth in a resolution
593-2 calling for the creation of a pollution control district and must
593-3 request a public hearing by the board on the matters set out in the
593-4 petition. The public hearing must be held in substantial
593-5 compliance with the provisions of this section relating to public
593-6 hearings on the creation of a pollution control district. If the
593-7 board determines that the addition should be accomplished, it may
593-8 adopt a resolution adding such territory. If taxes or bonds have
593-9 been authorized within the pollution control district prior to the
593-10 addition of the territory, the resolution adding the territory must
593-11 be temporary and the addition shall not become final unless
593-12 approved by a majority of the qualified voters within the pollution
593-13 control district as it exists after the addition. The election
593-14 must be held, as soon as practicable after the addition, on the
593-15 proposition of approving the addition, ratifying the unissued tax
593-16 bonds or tax revenue bonds of the authority that are to be issued
593-17 on behalf of the pollution control district, and authorizing the
593-18 board to levy a tax on the property within the pollution control
593-19 district as enlarged for payment of the unissued bonds when issued
593-20 or for the maintenance of the authority. The election must conform
593-21 to the Election Code to the extent that the code is not
593-22 inconsistent with the provisions of this chapter. The board's
593-23 resolution canvassing the returns of the election or adding the
593-24 territory shall redefine the boundaries of the pollution control
593-25 district and shall be recorded in the deed records of the county
593-26 within which the added territory lies.
594-1 (m) If the qualified voters in an election called pursuant
594-2 to this section authorize the authority to incur indebtedness for
594-3 the benefit of a pollution control district, the board may issue
594-4 bonds as provided in this chapter; provided, however, that taxes
594-5 levied for the purpose of making payments of the interest on or
594-6 principal of the bonds shall be levied only on taxable property
594-7 within the pollution control district.
594-8 (n) Notwithstanding any provision of this chapter to the
594-9 contrary, if the qualified voters in an election called pursuant to
594-10 this section authorize the authority to levy and collect ad valorem
594-11 taxes for the maintenance of the authority and its improvements,
594-12 the board may levy, assess, and collect a maintenance tax;
594-13 provided, however, that the maintenance tax may be levied only on
594-14 taxable property within the pollution control district.
594-15 (o) The board may incur such indebtedness as may be
594-16 necessary to provide all improvements, and the maintenance of the
594-17 improvements, requisite to the achievement of the purposes for
594-18 which any pollution control district is organized. The authority
594-19 may levy and collect such taxes as may be necessary for the payment
594-20 of the interest on the indebtedness and the creation of a sinking
594-21 fund for the payment of the indebtedness, and such taxes shall be a
594-22 lien on the property assessed for the payment of the indebtedness.
594-23 Sec. 271.040. LIBERAL CONSTRUCTION; CONFLICTS. This chapter
594-24 and all its terms and provisions shall be liberally construed to
594-25 effectuate the purposes set forth in this chapter; provided,
594-26 however, that:
595-1 (1) if any authority or power granted by this chapter
595-2 conflicts with any authority or power previously vested in the
595-3 Guadalupe-Blanco River Authority as created by Chapter 410, Acts of
595-4 the 44th Legislature, 1st Called Session, 1935, the power and
595-5 authority granted by the Act creating the Guadalupe-Blanco River
595-6 Authority shall supersede and control over any power or authority
595-7 granted by this chapter unless the Guadalupe-Blanco River Authority
595-8 consents to the exercise of such power or authority by the San
595-9 Antonio River Authority;
595-10 (2) no provision of this chapter shall have the effect
595-11 of divesting any person, firm, or corporation of any riparian
595-12 rights previously vested, or any vested rights derived under
595-13 existing permits for the appropriation and use of public waters
595-14 previously issued by the commission, or any vested rights derived
595-15 under any certified filings previously filed with the commission;
595-16 and
595-17 (3) nothing in this chapter shall impair or supersede
595-18 the authority and supervision granted to the commission under other
595-19 statutory provisions of the state or under the rules formulated by
595-20 the commission in accordance with law, any provision of this
595-21 chapter to the contrary notwithstanding.
595-22 Sec. 271.041. DOMICILE. The general office and place of
595-23 domicile of the authority shall be in the city of San Antonio,
595-24 Bexar County.
595-25 Sec. 271.042. CONSTITUTIONAL CONFORMITY. Nothing in this
595-26 chapter shall be construed to violate any provision of the federal
596-1 or state constitution, and all acts done under this chapter shall
596-2 be done in such a manner as will conform to those constitutions,
596-3 whether expressly provided in this chapter or not. If the board
596-4 determines that any procedure under this chapter violates the
596-5 federal or state constitution, the board may by ordinance provide a
596-6 procedure conformable with those constitutions.
596-7 CHAPTER 272. SAN JACINTO RIVER AUTHORITY
596-8 Sec. 272.001. CREATION. (a) A conservation and reclamation
596-9 district to be known as the "San Jacinto River Authority" is
596-10 created. The authority is a governmental agency and a body politic
596-11 and corporate.
596-12 (b) The authority is created under and is essential to
596-13 accomplish the purposes of Section 59, Article XVI, Texas
596-14 Constitution.
596-15 (c) The authority may exercise the powers granted by Section
596-16 59, Article XVI, Texas Constitution, to districts created to
596-17 conserve, control, and utilize to beneficial service the storm
596-18 waters and floodwaters of rivers and streams of the state, as well
596-19 as such powers as may be contemplated and implied by the purposes
596-20 of that provision of the constitution and as may be conferred by
596-21 general law and by the provisions of this chapter.
596-22 (d) The authority may formulate plans considered essential
596-23 to the operation of the authority and for its administration in the
596-24 control, storing, preservation, and distribution to all useful
596-25 purposes of the storm waters and floodwaters of the San Jacinto
596-26 River and its tributaries.
597-1 (e) The authority may exercise such authority and power of
597-2 control and regulation over the storm waters and floodwaters of the
597-3 San Jacinto River and its tributaries as may be exercised by the
597-4 state, subject to the provisions of the constitution and the acts
597-5 of the legislature.
597-6 Sec. 272.002. DEFINITIONS. In this chapter:
597-7 (1) "Authority" means the San Jacinto River Authority.
597-8 (2) "Board" means the board of directors of the
597-9 authority.
597-10 (3) "Director" means a member of the board.
597-11 Sec. 272.003. TERRITORY. (a) The authority comprises all
597-12 the territory within the watershed of the San Jacinto River and its
597-13 tributaries except the portion of the watershed that is within the
597-14 boundaries of Harris County, which is expressly excluded from the
597-15 boundaries of the authority.
597-16 (b) The written description of the boundaries shall be
597-17 certified by the commissioner of the General Land Office, approved
597-18 by the commission or its predecessor agency, and recorded in the
597-19 minutes of the authority.
597-20 (c) The board shall cause a copy of the certified boundaries
597-21 to be filed and recorded in the office of the county clerk of each
597-22 county lying in whole or in part within the boundaries of the
597-23 authority. The board shall also file a copy of the certified
597-24 boundaries, together with a map showing the boundaries, with the
597-25 tax assessor and collector of each of the counties that lie in
597-26 whole or in part within the authority.
598-1 Sec. 272.004. EFFECT OF CHANGE OF NAME OF AUTHORITY.
598-2 (a) All laws applicable to the San Jacinto River Conservation and
598-3 Reclamation District and all contracts and bonds or other
598-4 debentures effected under that name are applicable to the San
598-5 Jacinto River Authority.
598-6 (b) Wherever the name San Jacinto River Conservation and
598-7 Reclamation District or any reference to that district appears in
598-8 any law or in any court decision, the name and reference shall mean
598-9 and apply to the San Jacinto River Authority.
598-10 (c) All grants and donations of state ad valorem taxes made
598-11 by the state to the San Jacinto River Conservation and Reclamation
598-12 District and all appropriations and benefits under those grants and
598-13 donations are available to and apply to the San Jacinto River
598-14 Authority.
598-15 (d) The change in name of the authority in no way affects
598-16 the organization, authority, functions, or powers previously
598-17 conferred by law and as expressly authorized in the provisions of
598-18 Section 59, Article XVI, Texas Constitution.
598-19 Sec. 272.005. SPECIFIC POWERS. The authority, in addition
598-20 to possessing all powers expressly or impliedly granted by other
598-21 sections of this chapter, by complying where applicable with the
598-22 provisions of this code may:
598-23 (1) store, control, and conserve the storm waters and
598-24 floodwaters of the watershed of the San Jacinto River and its
598-25 tributaries and prevent the escape of any such waters through every
598-26 practical means in order to prevent the devastation of lands from
599-1 recurrent overflows and to protect life and property;
599-2 (2) provide through every practical means for the
599-3 control, utilization, and coordination of regulation of the waters
599-4 of the San Jacinto River and its tributaries;
599-5 (3) appropriate the waters of the San Jacinto River
599-6 and its tributaries, construct dams and other facilities for the
599-7 impoundment, conservation, diversion, and utilization of such
599-8 waters, and devote waters to municipal, domestic, agricultural,
599-9 commercial, industrial, mining, and other beneficial uses, within
599-10 and outside the watershed of the river;
599-11 (4) provide waters for the irrigation of lands where
599-12 irrigation is required for agricultural purposes or may be
599-13 considered helpful to more profitable agricultural production;
599-14 (5) provide water for domestic, municipal, commercial,
599-15 industrial, and mining purposes within and outside the watershed of
599-16 the river, including water supplies for cities, towns, and
599-17 industries, and in connection with those purposes may construct or
599-18 otherwise acquire water transportation, treatment, and distribution
599-19 facilities and supplemental sources of supply;
599-20 (6) encourage and develop drainage systems and
599-21 provisions for the drainage of lands in the valleys of the San
599-22 Jacinto River and its tributaries needing drainage for profitable
599-23 agricultural production and the drainage of other lands in the
599-24 watershed area of the authority requiring drainage for the most
599-25 advantageous use;
599-26 (7) encourage through practical and legal means the
600-1 conservation of soils against destructive erosion and prevent the
600-2 increased flood danger caused by soil erosion;
600-3 (8) forest and reforest and aid in the foresting and
600-4 reforesting of the watershed area of the San Jacinto River and its
600-5 tributaries and may prevent and aid in the prevention of soil
600-6 erosion and floods in, on, and upon all lands situated within the
600-7 boundaries of the authority;
600-8 (9) control, store, and employ the waters of the San
600-9 Jacinto River and its tributaries in the development and
600-10 distribution of hydroelectric power, where such use may be
600-11 economically coordinated with other and superior uses and
600-12 subordinated to the uses declared by law to be superior;
600-13 (10) encourage, aid, and protect navigation and harbor
600-14 improvements;
600-15 (11) acquire land adjacent to or in the vicinity of
600-16 any waters impounded by the authority or adjacent to or in the
600-17 vicinity of the San Jacinto River or any of its tributaries for
600-18 park and recreation purposes and acquire or construct park and
600-19 recreation facilities on such land; provided, however, that except
600-20 as may otherwise be provided by general law, the acquisition or
600-21 construction of any recreation and park facilities by the authority
600-22 shall be subject to the approval of the Parks and Wildlife
600-23 Commission and to such conditions as the Parks and Wildlife
600-24 Commission may prescribe;
600-25 (12) acquire or construct facilities for the
600-26 gathering, transporting, treating, and disposing of sewage and
601-1 industrial waste and effluent;
601-2 (13) control, store, and employ the waters of the San
601-3 Jacinto River and its tributaries for every purpose for which such
601-4 waters, when controlled and conserved, may be utilized in the
601-5 performance of a useful service as contemplated and authorized by
601-6 the provisions of the Texas Constitution and the public policy it
601-7 declares;
601-8 (14) construct and otherwise acquire and repair,
601-9 improve, extend, operate, and maintain all works, plants, and other
601-10 facilities necessary or useful in the furtherance of any power
601-11 granted by law to the authority, including water storage
601-12 reservoirs, dams, canals, waterways, and water transportation
601-13 facilities of all kinds, water treatment facilities, hydroelectric
601-14 facilities, municipal water supply facilities, facilities for the
601-15 treatment of sewage and industrial waste and effluent, parks and
601-16 recreation facilities, and all other necessary and useful
601-17 structures, facilities, and equipment;
601-18 (15) enter into necessary and proper contracts with
601-19 other state or federal agencies, districts, bodies politic and
601-20 corporate, and others and may make and enter into cooperative and
601-21 coordinative contracts with such agencies, districts, bodies
601-22 politic and corporate, and others necessary or useful in the
601-23 furtherance of any power granted by law to the authority, including
601-24 the power to pledge the authority's funds and its other assets or
601-25 any part of such funds or assets;
601-26 (16) acquire any properties necessary for any of the
602-1 authority's corporate purposes by purchase, by condemnation as
602-2 provided by this chapter, or by gift and may acquire property by
602-3 lease or other contract, on such terms as may be agreed by the
602-4 board;
602-5 (17) operate the water and sewage properties and
602-6 facilities of other public bodies or political subdivisions on such
602-7 terms as the authority may agree in connection with the supplying
602-8 by the authority of any water or sewage or waste disposal or other
602-9 services to public bodies;
602-10 (18) enter into such contracts, on such terms, and for
602-11 such periods as the board approves, with municipalities or other
602-12 corporate bodies or persons, public or private, for the purpose of
602-13 establishing and collecting, and by resolution or order to
602-14 otherwise establish and collect, rates and other charges for the
602-15 sale or use of water, water transmission, treatment or connection
602-16 facilities, sewage or industrial or other waste disposal services
602-17 and facilities of all types, park or recreation facilities, power,
602-18 electric energy, and any other services sold, furnished, or
602-19 supplied by the authority, which rates and charges shall be
602-20 sufficient to produce revenue adequate to:
602-21 (A) pay expenses necessary to operate and
602-22 maintain the properties and facilities of the authority;
602-23 (B) pay the interest on or the principal of any
602-24 bonds or other obligations issued by the authority when and as the
602-25 interest or principal becomes due and payable and to fulfill any
602-26 reserve or other fund obligations of the authority in connection
603-1 with such bonds; and
603-2 (C) pay such other expenses the board determines
603-3 necessary and proper for any purpose in the corporate operations
603-4 and functions of the authority; and
603-5 (19) authorize by contract any other districts,
603-6 agencies, bodies politic and corporate, and individuals to
603-7 participate in the joint construction, operation, and maintenance
603-8 of water storage reservoirs, dams, canals, waterways, and water
603-9 lines and all other structures, facilities, and equipment in
603-10 connection with such reservoirs, dams, canals, waterways, and water
603-11 lines or in connection with sewage or waste facilities of all types
603-12 and all necessary facilities for the manufacture, sale, and
603-13 transportation of hydroelectric power, and by such contracts allow
603-14 such other agencies, districts, bodies politic and corporate, and
603-15 others to receive such portion of the revenues derived from the
603-16 sale of water and hydroelectric power or from furnishing sewage and
603-17 waste facilities and services as the board determines just,
603-18 equitable, and proper.
603-19 Sec. 272.006. LIMITATION OF AUTHORITY; COMMISSION
603-20 SUPERVISION. (a) The powers and duties granted to the authority
603-21 by this chapter are subject to all legislative declarations of
603-22 public policy in the maximum utilization of the storm waters,
603-23 floodwaters, and unappropriated flow waters of the state for the
603-24 purpose for which the authority is created, as expressed and
603-25 indicated in this chapter and subject to the continuing rights of
603-26 supervision by the state, which shall be exercised through the
604-1 commission.
604-2 (b) The commission is charged with the authority and duty to
604-3 approve, or to refuse to approve, the adequacy of any plan or plans
604-4 devised in the exercise of any power granted under this chapter
604-5 that contemplate improvements or facilities, the plans pertaining
604-6 to which are required to be supervised or approved by the
604-7 commission under the provisions of general law.
604-8 (c) If the plans described by Subsection (b) contemplate the
604-9 installation, construction, or other acquisition of parks and
604-10 recreation facilities or of facilities for the gathering,
604-11 transporting, or disposal of sewage or industrial wastes and
604-12 effluent, the commission shall not approve the plans unless it
604-13 finds that the Parks and Wildlife Commission has issued such
604-14 approvals or permits relating to the matters as may be required by
604-15 this chapter or general law.
604-16 Sec. 272.007. BOARD OF DIRECTORS. (a) The management and
604-17 control of the affairs of the authority are vested in, and the
604-18 powers, rights, privileges, and functions of the authority are
604-19 exercised by, a board of directors. The board consists of six
604-20 directors, all of whom must be freehold property taxpayers and
604-21 legal voters of the state.
604-22 (b) Directors are appointed by the Texas Water Development
604-23 Board and serve for staggered terms of six years, holding office
604-24 after their appointment and qualification until their successors
604-25 are appointed and have qualified. If a vacancy occurs on the
604-26 board, the vacancy is filled by the Texas Water Development Board
605-1 for the unexpired term. The provisions of Section 49.103 regarding
605-2 the election and terms of directors do not apply to directors of
605-3 the authority.
605-4 (c) Within 30 days after appointment, a director shall
605-5 qualify by taking the official oath required of county
605-6 commissioners and shall execute bond in the sum of $5,000 payable
605-7 to the authority. The sufficiency of the bond shall be determined
605-8 by the Texas Water Development Board. The bonds shall be recorded
605-9 in the official bond records of the county in which the authority
605-10 maintains its office and shall be deposited with the depository
605-11 selected and approved for the deposit of the funds of the
605-12 authority.
605-13 (d) The board shall elect from among its members a
605-14 president, vice president, secretary, and treasurer. The president
605-15 presides at all meetings of the board and is the chief executive
605-16 officer of the authority. The vice president acts as president in
605-17 case of the absence or disability of the president. The secretary
605-18 shall keep a record of all proceedings and all orders of the board.
605-19 The treasurer shall receive and receipt for all funds received by
605-20 the authority and shall keep books and records of all funds
605-21 received and expended. In case of the absence or inability of the
605-22 secretary to act, a secretary pro tempore shall be selected by the
605-23 board.
605-24 (e) Four members, including the presiding officer,
605-25 constitute a quorum to transact business.
605-26 Sec. 272.008. OFFICE; MEETINGS; ACCOUNTS. (a) The domicile
606-1 of the authority is in the city of Conroe, Montgomery County, where
606-2 the authority shall maintain its principal office.
606-3 (b) The board may set the time, place, and number of
606-4 meetings of the board by proper resolutions, regulations, and
606-5 bylaws passed by the board.
606-6 (c) The board shall keep complete and accurate accounts
606-7 conforming to approved methods of bookkeeping. The accounts and
606-8 all contracts, documents, and records of the authority shall be
606-9 kept at the principal office and shall be open to public inspection
606-10 at all reasonable times.
606-11 Sec. 272.009. GENERAL POWERS. (a) The board has all
606-12 powers, both express and implied, to do and perform any and all
606-13 acts for and on behalf of the authority that are authorized by the
606-14 constitution and laws of the United States and the state for the
606-15 purpose of achieving the plans and purposes intended in the
606-16 creation of the authority and in the exercise of all powers granted
606-17 to the authority by this chapter. The board has full and complete
606-18 authority to do anything necessary or convenient to the exercise of
606-19 the powers, privileges, and functions conferred on the authority
606-20 and the board by this chapter or any other law.
606-21 Sec. 272.010. SURVEYS AND ENGINEERING INVESTIGATIONS.
606-22 (a) The board shall make or cause to be made surveys and
606-23 engineering investigations for the information of the authority and
606-24 shall determine the plans necessary to accomplish the purposes for
606-25 which the authority is created. The board may employ engineers,
606-26 attorneys, and all other technical and nontechnical assistants or
607-1 employees and set and provide the amount and manner of their
607-2 compensation for the making of surveys, the preparation of plans,
607-3 and the collection of data essential to the determination of the
607-4 character, extent, and cost of all improvements essential in the
607-5 exercise of any power granted by this chapter or by any other law
607-6 applicable to the authority, and for expenditures found essential
607-7 in the maintenance and administration of the authority.
607-8 Sec. 272.011. DIRECTOR FEES. Directors are entitled to
607-9 receive a per diem of not more than $25 per day for the period
607-10 served, together with traveling and other necessary expenses. A
607-11 director may perform any service required by the board but may not
607-12 receive the per diem and other compensation at the same time.
607-13 Sec. 272.012. BONDS AS AUTHORIZED INVESTMENT; INVESTMENT OF
607-14 FUNDS. (a) All bonds issued by the authority are legal and
607-15 authorized investments for banks, savings banks, trust companies,
607-16 building and loan associations, insurance companies, fiduciaries
607-17 and trustees and for the sinking funds of cities, towns, villages,
607-18 counties, school districts, and other political corporations and
607-19 subdivisions of the state. Bonds issued by the authority are
607-20 eligible to secure the deposit of all public funds of the state and
607-21 all public funds of cities, towns, villages, counties, school
607-22 districts, and other political corporations or subdivisions of the
607-23 state and shall be lawful and sufficient security for such deposits
607-24 at their market value when accompanied by all unmatured coupons.
607-25 (b) Money in any fund of the authority or any fund
607-26 established by the board in connection with the authorization of
608-1 bonds, including proceeds from the sale of bonds, and which funds
608-2 are not needed to satisfy their particular purpose for any period,
608-3 may be invested or reinvested in direct obligations of or
608-4 obligations whose principal and interest are guaranteed by the
608-5 United States or invested in direct obligations of or participation
608-6 certificates guaranteed by the Federal Intermediate Credit Banks,
608-7 Federal Land Banks, the Federal National Mortgage Association,
608-8 Federal Home Loan Banks, and Banks for Cooperatives and in
608-9 certificates of deposit of any bank or trust company whose deposits
608-10 are fully secured by a pledge of securities of any of the kind
608-11 specified in this section.
608-12 (c) The type and maturity of investments made under this
608-13 section shall be determined by the board, which, in the case of
608-14 funds established in connection with the authorization of bonds,
608-15 shall provide appropriate recitals with regard to such investments
608-16 in the resolutions relating to the issuance of the bonds. Income
608-17 and profits on such investments shall be applied as provided in the
608-18 resolution and, absent such provision, shall be applied to the uses
608-19 specified by this section for bond proceeds.
608-20 Sec. 272.013. FUNDS FOR SURVEYS AND DATA COLLECTION. For
608-21 the purpose of providing funds requisite to procure necessary
608-22 engineering surveys and the collection and compilation of data
608-23 respecting regional and general conditions entering into and
608-24 influencing the character and extent of the improvements necessary
608-25 to the storage, control, conservation, and equitable distribution
608-26 of floodwaters, when stored and controlled, to the greatest public
609-1 advantage, the counties lying in whole or in part within the area
609-2 of the authority may from year to year contribute to the funds for
609-3 such engineering surveys and the compilation of data essential to
609-4 the progress of flood control improvement in such amount as may be
609-5 deemed an equitable part of the cost of such surveys and the
609-6 compilation of necessary information, in the estimated relation of
609-7 such expenditures to the contemplated and probable benefit to the
609-8 respective counties from the accomplishment of the plans and
609-9 purposes of the creation of the authority. For the provision of
609-10 such funds, the counties may make the necessary collections through
609-11 their respective general funds or may appropriate the amounts of
609-12 the estimated equitable contribution of such costs of developing
609-13 essential engineering data from their general fund.
609-14 Sec. 272.014. ADOPTION OF RULES; PENALTY; ENFORCEMENT.
609-15 (a) The board may adopt and enforce rules to:
609-16 (1) preserve and protect the sanitary condition and
609-17 prevent waste or unauthorized use of water owned or controlled by
609-18 the authority;
609-19 (2) preserve, protect, secure, and regulate privileges
609-20 on any authority property; and
609-21 (3) ensure the public safety on, in, under, across, or
609-22 within any authority property.
609-23 (b) A rule adopted under this section must clearly define
609-24 any conduct that constitutes an offense and plainly state the
609-25 punishment for the offense. In adopting a rule under this section,
609-26 the board must prescribe a punishment that is proportionate to the
610-1 seriousness of the offense. The board may designate an offense
610-2 only as a Class C misdemeanor.
610-3 (c) A rule adopted under this section does not take effect
610-4 until the authority has published once a week for two consecutive
610-5 weeks a substantive statement of the rule and the penalty for
610-6 violation of the rule in a newspaper with general circulation in
610-7 each county in which the rule is to be effective. The statement
610-8 must intelligently explain the purpose to be accomplished by or the
610-9 acts prohibited by the rule. The statement must advise the public
610-10 that violation of the rule will subject the violator to a penalty.
610-11 The statement must advise the public that the full text of the rule
610-12 is on file in the principal office of the authority and that any
610-13 interested person is entitled to read the full text. The board may
610-14 use one statement to satisfy the notice requirements of this
610-15 section for any number of rules the board adopts. The board may
610-16 amend a rule after the rule is adopted, but must meet the notice
610-17 requirements under this subsection.
610-18 (d) The violation of a rule is not punishable as an offense
610-19 unless the violation occurs after the 30th day after the date on
610-20 which the notice requirements under this section are met. A rule
610-21 adopted under this section is effective until repealed, revoked,
610-22 rescinded, or amended by official action of the board.
610-23 (e) A rule adopted under this section shall be recognized by
610-24 the courts of the state and is enforceable by complaint filed in
610-25 the appropriate court by the proper prosecuting authority in a
610-26 jurisdiction in which authority property is located in the same
611-1 manner as a penal statute under state law. A penalty provided by a
611-2 rule adopted under this section is in addition to any other penalty
611-3 provided by law. Rules promulgated under the authority of this
611-4 chapter shall not conflict with any provision of the Parks and
611-5 Wildlife Code or a rule adopted under the authority of the Parks
611-6 and Wildlife Code.
611-7 (f) The board, the commissioners court, and the law
611-8 enforcement officials in a county in which authority property is
611-9 located may enter into a contract to provide for the employment,
611-10 assignment, duties, equipping, or compensation of local law
611-11 enforcement personnel to enforce the board's rules. A contract
611-12 under this subsection may require the authority to pay to the
611-13 commissioners court a specified portion of the cost of providing
611-14 the law enforcement personnel.
611-15 (g) In this section, "authority property" means any land,
611-16 easement, water, property, equipment, work, or facility owned or
611-17 controlled, in whole or in part, by the authority, including a
611-18 reservoir, impoundment, lake, canal, channel, conduit, pipe,
611-19 siphon, dam, dike, levee, embankment, or berm but excluding Lake
611-20 Houston and the San Jacinto River below Lake Houston, except for
611-21 equipment, works, and facilities owned by the authority at or near
611-22 a dam site.
611-23 Sec. 272.015. ADDITIONAL POWERS AND DUTIES. (a) The
611-24 provisions of Title 4 apply to the authority, to the extent such
611-25 provisions are applicable and practicable, except that such
611-26 provisions do not apply to any matter specifically provided for in,
612-1 or expressly or impliedly excluded from, this chapter relating to
612-2 the creation of a district and to the issuance of preliminary bonds
612-3 to finance investigations on which to base a plan for improvements
612-4 and to the levy of a tax to retire the bonds. The authority may on
612-5 a vote of the qualified electors issue preliminary bonds for such
612-6 investigations and levy a tax to retire the bonds, which tax may be
612-7 in addition to all other taxes authorized by this chapter.
612-8 (b) Conflicting provisions of Sections 51.510-51.530 shall
612-9 not control the authority.
612-10 (c) After the completion and approval of a plan for the
612-11 coordination of improvements considered adequate to serve the
612-12 watershed of the San Jacinto River and its tributaries as a whole,
612-13 as provided for by this chapter, the commission and the reclamation
612-14 department of the General Land Office, in authorizing improvements
612-15 to control the waters of or in allocating the right to use waters
612-16 from the San Jacinto River and its tributaries, shall substantially
612-17 conform to, and shall effectually preserve the benefits of, the
612-18 plan formulated by the authority, and the authority shall have the
612-19 right to enforce the observance of the plan by judicial decree.
612-20 (d) The authority may provide and maintain improvements for
612-21 the common benefit of the authority as a whole, subject only to
612-22 constitutional and statutory provisions concerning a vote by the
612-23 qualified electors of the authority.
612-24 (e) The authority may exercise the powers contained in
612-25 Sections 51.510-51.530 relating to improvements peculiar to defined
612-26 areas within a district.
613-1 (f) If the electors of a defined area within the authority
613-2 desire, the electors may create a water control and improvement
613-3 district for the purpose of independently providing, operating, and
613-4 maintaining improvements designed peculiarly to serve that defined
613-5 area. The contained defined area may be created under the
613-6 applicable provisions of Title 4. In like manner, any other
613-7 political subdivision of the state located in whole or in part in
613-8 the authority may independently provide, maintain, and operate
613-9 works peculiarly designed to benefit that political subdivision.
613-10 The improvements or works of the defined area or political
613-11 subdivision shall be constructed and operated in a manner that
613-12 conforms to the authority's plan described under Subsection (a) to
613-13 the greatest practicable degree.
613-14 (g) To the extent necessary to enable the authority to
613-15 construct, maintain, and operate works beneficial to the authority
613-16 as a whole, to supervise, to perform any service inuring to the
613-17 benefit of the authority as a whole, and to provide funds adequate
613-18 to defray the cost of the administration to the authority, the
613-19 authority may levy and collect taxes, equitably distributed. The
613-20 taxes shall be in addition to other taxes that may lawfully be
613-21 levied by the state and other political subdivisions of the state.
613-22 (h) The authority may do all things necessary or suitable
613-23 for the prevention of recurrent, devastating floods in the valley
613-24 of the San Jacinto River.
613-25 Sec. 272.016. CONTRACTS, GRANTS, AND LOANS. The board is a
613-26 state agency and has full authority to negotiate and contract with
614-1 the United States, or any of its agencies, and others for grants,
614-2 loans, or allotments. The authority may receive and accept grants,
614-3 loans, or allotments from the United States or others for the
614-4 purpose of making investigations and assembling data or for any
614-5 purpose set forth in this chapter and may receive and use the
614-6 grants, loans, or allotments for the purposes provided in this
614-7 chapter.
614-8 Sec. 272.017. BOND ELECTION REQUIRED. The authority may not
614-9 issue bonds, incur any form of continuing obligations or
614-10 indebtedness for purposes of effecting improvements comprehended in
614-11 the plan of organization and administration of the authority or
614-12 incur any indebtedness in the form of a continuing charge on land
614-13 or properties within the authority unless such proposition has been
614-14 submitted to the qualified voters of the authority, or when
614-15 appropriate, the voters of a defined area or political subdivision
614-16 within the authority, and approved by a majority of those voting on
614-17 the proposition.
614-18 Sec. 272.018. ISSUANCE OF BONDS. (a) The authority may
614-19 issue negotiable revenue bonds for the purposes of:
614-20 (1) making investigations and assembling data;
614-21 (2) purchasing, acquiring, or condemning lands,
614-22 easements, rights-of-way, and other properties;
614-23 (3) constructing, repairing, improving, and extending
614-24 any structures, dams, reservoirs, transmission facilities, water
614-25 treatment and water supply facilities, and sewage and other waste
614-26 gathering, transmission, treatment, and disposal facilities;
615-1 (4) developing park and recreation facilities; and
615-2 (5) acquiring, constructing, improving, repairing, and
615-3 extending any other properties and facilities considered
615-4 appropriate by the board in the exercise of powers granted the
615-5 authority in Section 272.005 and elsewhere in this chapter.
615-6 (b) Any of the purposes described by this section may be
615-7 combined into a single issue of bonds. The bonds shall be issued
615-8 in accordance with Subsection (d) and (e) and may be secured by and
615-9 payable from the revenues of the authority permitted by Subsection
615-10 (f), including the proceeds of one or more contracts between the
615-11 authority and any persons, firms, corporations, cities, and
615-12 political subdivisions.
615-13 (c) If the legislature remits the ad valorem tax in the
615-14 counties for a certain period of years, the board may, if necessary
615-15 and with the approval of the commissioners court of the counties in
615-16 the watershed, use part or all of the taxes remitted to the
615-17 counties for the purpose of paying back to the United States or its
615-18 agencies or others the money borrowed by the authority for the
615-19 purposes described by this section.
615-20 (d) The bonds issued under this chapter may be:
615-21 (1) sold for cash, at public or private sale, at such
615-22 price or prices as the board determines, but not for less than par
615-23 plus accrued interest, provided that the interest cost of the money
615-24 received, computed to maturity in accordance with the standard
615-25 bonds tables in general use by banks and insurance companies, does
615-26 not exceed five percent per year;
616-1 (2) issued on terms the board considers necessary or
616-2 convenient for any corporate purpose; or
616-3 (3) issued to refund bonds issued under this chapter.
616-4 (e) Bonds of the authority must be authorized by resolution
616-5 of the board concurred in by a majority of the directors. The
616-6 bonds shall bear such date or dates; be made at such time or times;
616-7 bear interest at such rate or rates, not exceeding five percent per
616-8 year, payable annually or semiannually; be in such denominations;
616-9 be in such form, either coupon or registered; carry such
616-10 registration privileges as to principal only or as to both
616-11 principal and interest and as to exchange of coupon bonds for
616-12 registered bonds, or vice versa, or exchange of bonds of one
616-13 denomination for bonds of other denominations; be executed in such
616-14 manner; and be payable at such place or places, within or outside
616-15 the state, as the resolution may provide.
616-16 (f) The resolution authorizing the issuance of bonds may
616-17 contain provisions, which shall be part of the contract between the
616-18 board and the initial and successive holders of the bonds:
616-19 (1) reserving the right to redeem the bonds at such
616-20 time or times, in such amounts, and at such prices, not exceeding
616-21 102 percent of the principal amount of the bonds plus accrued
616-22 interest, as may be provided in the resolution;
616-23 (2) providing for the setting aside of sinking funds
616-24 or reserve funds and the regulation and disposition of the funds;
616-25 (3) pledging, to secure the payment of the principal
616-26 of and interest on the bonds and the sinking fund or reserve fund
617-1 payments agreed to be made with respect to the bonds, all or part
617-2 of the funds that may be donated or granted by the state as
617-3 provided by this chapter and all or part of the gross or net
617-4 revenues received by the authority with respect to the property,
617-5 real, personal, or mixed, to be acquired or constructed with the
617-6 bonds or with proceeds of the bonds, or all or part of the gross or
617-7 net revenues received by the authority from any source;
617-8 (4) prescribing the purposes to which the bonds or
617-9 bonds later issued, or the proceeds of the bonds, may be applied;
617-10 (5) agreeing to set and collect rates and charges
617-11 sufficient to produce revenues that, together with the funds that
617-12 may be granted or donated by the state, are adequate to pay the
617-13 items specified by this chapter, and prescribing the use and
617-14 disposition of all revenues;
617-15 (6) prescribing limitations on the issuance of
617-16 additional bonds and on the agreements that may be made with the
617-17 purchaser and successive bondholders;
617-18 (7) relating to the construction, extension,
617-19 improvement, operation, maintenance, depreciation, replacement, and
617-20 betterments of the properties of the authority and to the carrying
617-21 of insurance on all or part of the property covering loss or damage
617-22 or loss of use and occupancy resulting from specified risks;
617-23 (8) fixing the procedure, if any, by which, if the
617-24 authority so desires, the terms of any contract with the holders of
617-25 the bonds may be amended or abrogated, the amount of bonds whose
617-26 holders must consent to the amendment or abrogation, and the manner
618-1 in which such consent shall be evidenced;
618-2 (9) providing for the execution and delivery by the
618-3 authority to a bank or trust company authorized by law to accept
618-4 trusts, or to the United States or any officer or agency of the
618-5 United States, of indentures or agreements authorized by this
618-6 chapter to be made with or for the benefit of the holders of the
618-7 bonds and such other provisions as may be contained in such
618-8 indentures or agreements; and
618-9 (10) making such other provisions, not inconsistent
618-10 with provisions of this chapter, as the board may approve.
618-11 Sec. 272.019. DEFAULT PROCEDURES. (a) A resolution
618-12 authorizing the issuance of bonds and any indenture or agreement
618-13 entered into pursuant to the resolution may include provisions
618-14 regarding a default on the:
618-15 (1) payment of the interest on any bonds as the
618-16 interest becomes due and payable;
618-17 (2) payment of the principal of any bonds as they
618-18 become due and payable, whether at maturity, by call for
618-19 redemption, or otherwise; or
618-20 (3) performance of an agreement made with the
618-21 purchasers or successive holders of any bonds.
618-22 (b) If a default described by Subsection (a) has occurred
618-23 and has continued for the period, if any, prescribed by the
618-24 resolution authorizing the issuance of the bonds, the trustee under
618-25 the indenture or indentures entered into with respect to the bonds
618-26 authorized by the resolution, or, if there is no indenture, a
619-1 trustee appointed in the manner provided in the resolution by the
619-2 holders of 25 percent in aggregate principal amount of the bonds
619-3 authorized by the resolution and then outstanding, may, and on the
619-4 written request of the holders of 25 percent in aggregate principal
619-5 amount of the bonds authorized by the resolution and then
619-6 outstanding shall, in the trustee's own name but for the equal and
619-7 proportionate benefit of the holders of all the bonds and, with or
619-8 without having possession of the bonds, for the holders of all the
619-9 bonds:
619-10 (1) by mandamus or suit, action, or proceeding at law
619-11 or in equity, enforce all rights of the holders of the bonds;
619-12 (2) bring suit on the bonds or the appurtenant
619-13 coupons;
619-14 (3) by action or suit in equity, require the board to
619-15 act as if it were the trustee of an express trust for the holders
619-16 of the bonds;
619-17 (4) by action or suit in equity, enjoin anything that
619-18 may be unlawful or in violation of the rights of the holders of the
619-19 bonds; or
619-20 (5) after such notice to the board as the resolution
619-21 may provide, declare the principal of all of the bonds due and
619-22 payable, and if all defaults have been made good, then with the
619-23 written consent of the holders of 25 percent aggregate principal
619-24 amount of the bonds then outstanding, annul the declaration and its
619-25 consequences; provided, however, that the holders of more than a
619-26 majority in principal amount of the bonds authorized by the
620-1 resolution and then outstanding shall, by written instrument
620-2 delivered to the trustee, have the right to direct and control any
620-3 and all actions taken or to be taken by the trustee under this
620-4 section.
620-5 (c) A resolution, indenture, or agreement relating to bonds
620-6 may provide that in a suit, action, or proceeding under this
620-7 section, the trustee, whether or not all of the bonds have been
620-8 declared due and payable and with or without possession of any of
620-9 the bonds, shall be entitled as of right to the appointment of a
620-10 receiver who may enter and take possession of all or any part of
620-11 the properties of the authority and operate and maintain the
620-12 properties and set, collect, and receive rates and charges that,
620-13 together with the funds that may be granted or donated by the
620-14 state, will be sufficient to provide revenues adequate to pay the
620-15 items set forth in this chapter and the costs and disbursements of
620-16 the suit, action, or proceeding and apply such revenue in
620-17 conformity with the provisions of this chapter and the resolution
620-18 or resolutions authorizing the bonds.
620-19 (d) In any suit, action, or proceeding by a trustee or
620-20 receiver, if any, under this section, counsel fees and expenses of
620-21 the trustee and of the receiver or receivers, if any, shall
620-22 constitute taxable disbursements, and all costs and disbursements
620-23 allowed by the court shall be a first charge on any revenue pledged
620-24 to secure the payment of the bonds.
620-25 (e) In addition to the powers specifically provided by this
620-26 section, the trustee shall have and possess all powers necessary or
621-1 appropriate for the exercise of the powers specifically provided or
621-2 incident to the general representation of the bondholders in
621-3 enforcement of their rights.
621-4 Sec. 272.020. BOND APPROVAL AND REGISTRATION. (a) Before
621-5 any bonds may be sold by the authority, a certified copy of the
621-6 proceedings for the issuance of the bonds, including the form of
621-7 the bonds, together with any other information the attorney general
621-8 may require, shall be submitted to the attorney general, and if the
621-9 attorney general finds that the bonds have been issued in
621-10 accordance with law and approves the bonds, the attorney general
621-11 shall execute a certificate to that effect which shall be filed in
621-12 the office of the comptroller and be recorded in a record kept for
621-13 that purpose. Bonds may not be issued until the bonds have been
621-14 registered by the comptroller, who shall register the bonds if the
621-15 attorney general has filed with the comptroller the certificate
621-16 approving the bonds and the proceedings for the issuance of the
621-17 bonds as provided in this subsection.
621-18 (b) Bonds approved by the attorney general and registered by
621-19 the comptroller as provided by this section and issued in
621-20 accordance with the proceedings so approved are valid and binding
621-21 obligations of the authority and are incontestable for any cause
621-22 after their registration.
621-23 Sec. 272.021. OIL AND GAS LEASES. The authority may enter
621-24 into oil and gas leases with respect to its properties on terms the
621-25 board determines appropriate in the production of revenues to the
621-26 authority.
622-1 Sec. 272.022. DISPOSAL OF AUTHORITY PROPERTY. The authority
622-2 may sell or otherwise dispose of its properties if the board has
622-3 determined that the property or interest to be disposed of is not
622-4 necessary to the business of the authority and has approved the
622-5 terms of the sale.
622-6 Sec. 272.023. EXEMPTION OF AUTHORITY PROPERTY FROM FORCED
622-7 SALE. Property of the authority is exempted from forced sale under
622-8 any judgment, suit, or proceeding of any nature or kind.
622-9 Sec. 272.024. ACQUISITION AND USE OF PROPERTY. The
622-10 authority may acquire by purchase, lease, or gift or in any other
622-11 manner, other than by condemnation, and may maintain, use, and
622-12 operate property of any kind, real, personal, or mixed, or any
622-13 interest in such property, within or outside the boundaries of the
622-14 authority, necessary or convenient to the exercise of the powers,
622-15 rights, privileges, and functions conferred on the authority by
622-16 this chapter.
622-17 Sec. 272.025. EMINENT DOMAIN. (a) The authority has the
622-18 power and right of eminent domain for the purpose of acquiring by
622-19 condemnation property of any kind, real, personal, or mixed, or any
622-20 interest in such property, within or outside the boundaries of the
622-21 authority (other than such property or interest in such property
622-22 outside the boundaries of the authority that may at the time be
622-23 owned by any body politic) necessary or convenient to the exercise
622-24 of the powers, rights, privileges, and functions conferred on the
622-25 authority by this chapter in the manner provided by general law
622-26 with respect to condemnation or, at the option of the authority, in
623-1 the manner provided by statutes relative to condemnation by
623-2 districts organized under general law pursuant to Section 59,
623-3 Article XVI, Texas Constitution.
623-4 (b) In condemnation proceedings being prosecuted by the
623-5 authority, the authority shall not be required to give bond for
623-6 appeal or bond for costs.
623-7 (c) The authority may overflow and inundate public lands and
623-8 public property and require the relocation of roads and highways in
623-9 the manner and to the extent permitted to districts organized under
623-10 general law pursuant to Section 59, Article XVI, Texas
623-11 Constitution.
623-12 (d) If, in the exercise of the power of eminent domain, the
623-13 relocation or change of grade of any railroad facilities is
623-14 required, the relocation or change of grade shall be accomplished
623-15 under the provisions of Section 49.223.
623-16 Sec. 272.026. RULES AND REGULATIONS. The board may make all
623-17 necessary rules and regulations for the government and control of
623-18 the authority not inconsistent with the constitution and laws of
623-19 the state.
623-20 Sec. 272.027. USE OF SAN JACINTO RIVER AND TRIBUTARIES. In
623-21 the prosecution of the plans for which the authority has been
623-22 created for storing, controlling, conserving, and distributing for
623-23 useful purposes the storm waters and floodwaters of the San Jacinto
623-24 River watershed, the authority may make use of the bed and banks of
623-25 the San Jacinto River and of its tributaries for any purposes
623-26 necessary to the accomplishment of the plans of the authority.
624-1 Sec. 272.028. CONFLICTS. Nothing in this chapter shall be
624-2 construed to violate any provision of the federal or state
624-3 constitutions, and all acts done under this chapter shall be done
624-4 in a manner that conforms to those constitutions, whether expressly
624-5 provided or not. If any procedure under this chapter is held by
624-6 any court to be violative of either of those constitutions, the
624-7 authority may by resolution provide an alternative procedure
624-8 conformable with those constitutions.
624-9 CHAPTER 273. SULPHUR RIVER BASIN AUTHORITY
624-10 Sec. 273.001. CREATION. (a) A conservation and reclamation
624-11 district to be known as the "Sulphur River Basin Authority" is
624-12 created. The authority is a governmental agency and a body politic
624-13 and corporate.
624-14 (b) The authority is created under and is essential to
624-15 accomplish the purposes of Section 59, Article XVI, Texas
624-16 Constitution.
624-17 (c) The authority may not levy any taxes or create any debt
624-18 payable out of taxation.
624-19 (d) The authority may exercise all the rights and powers of
624-20 an independent agency and body politic and corporate to construct,
624-21 maintain, and operate inside the state and in the watershed of the
624-22 Sulphur River and its tributaries, inside or outside the boundaries
624-23 of the authority, any works considered essential to the operation
624-24 of the authority and for its administration in controlling,
624-25 storing, preserving, and distributing the water of the Sulphur
624-26 River and its tributary streams, including the storm water and
625-1 floodwater. The authority may exercise the power of control and
625-2 regulation over the water of the Sulphur River and its tributaries
625-3 as may be exercised by the state, subject to the constitution and
625-4 the laws of this state.
625-5 Sec. 273.002. DEFINITIONS. In this chapter:
625-6 (1) "Authority" means the Sulphur River Basin
625-7 Authority.
625-8 (2) "Basin" means the watersheds of the Sulphur River
625-9 within the boundaries of the authority as defined in Section
625-10 273.003.
625-11 (3) "Board" means the board of directors of the
625-12 authority.
625-13 (4) "Director" means a member of the board.
625-14 (5) "Person" means an individual, corporation,
625-15 organization, public agency, business trust, estate, trust,
625-16 partnership, association, and any other legal entity.
625-17 (6) "Public agency" means any government or
625-18 governmental subdivision or agency.
625-19 (7) "State" means the State of Texas or any of its
625-20 agencies, departments, boards, political subdivisions, or other
625-21 entities.
625-22 (8) "United States" includes any department, bureau,
625-23 and other agency of the United States.
625-24 (9) "Waste" means sewage, industrial waste, municipal
625-25 waste, recreational waste, agricultural waste, waste heat, solid
625-26 waste, or any other waste.
626-1 Sec. 273.003. BOUNDARIES. (a) The authority is composed of
626-2 the territory in each county in Texas, other than Fannin County,
626-3 that is located in whole or in part within the watershed of the
626-4 Sulphur River and its tributaries with confluences with the Sulphur
626-5 River upstream from the eastern boundary of Texas, as those
626-6 watersheds and tributaries are defined by maps on file with the
626-7 Texas Water Development Board.
626-8 (b) The legislature finds that all of the land included in
626-9 the authority will benefit from the improvements to be acquired and
626-10 constructed by the authority.
626-11 Sec. 273.004. AUTHORITY PURPOSES. The purpose of this
626-12 chapter is to authorize the authority to provide for the
626-13 conservation and development of the state's natural resources
626-14 within the basin of Sulphur River, including:
626-15 (1) the control, storage, preservation, and
626-16 distribution of the state's water for domestic and municipal uses,
626-17 industrial uses, irrigation, mining and recovery of minerals, stock
626-18 raising, groundwater recharge, electric power generation,
626-19 navigation, recreation and pleasure, and other beneficial uses and
626-20 purposes;
626-21 (2) the reclamation and irrigation of land needing
626-22 irrigation;
626-23 (3) the reclamation and drainage of overflowed land
626-24 and other land needing drainage;
626-25 (4) the maintenance and enhancement of the quality of
626-26 the water;
627-1 (5) the conservation and development of the forests,
627-2 water, and hydroelectric power;
627-3 (6) the navigation of inland water; and
627-4 (7) the provision of systems, facilities, and
627-5 procedures for the collection, transportation, handling, treatment,
627-6 and disposal of waste of all types.
627-7 Sec. 273.005. CONSTRUCTION OF CHAPTER. This chapter shall
627-8 be liberally construed to achieve its purposes, and any particular
627-9 grant of power included in this chapter shall be held to specify
627-10 but not to limit general powers. This chapter is sufficient
627-11 authority for the performance of all acts and procedures authorized
627-12 by this chapter, without reference to any other law or any
627-13 restrictions or limitations included in any other law.
627-14 Sec. 273.006. BOARD OF DIRECTORS. (a) The authority shall
627-15 be governed by a board of directors composed of six members. The
627-16 directors are appointed by the governor with the advice and consent
627-17 of the senate. Two directors are appointed from each of the
627-18 following regions:
627-19 (1) Region 1: Bowie and Red River counties;
627-20 (2) Region 2: Cass, Franklin, Hunt, Morris, and Titus
627-21 counties; and
627-22 (3) Region 3: Delta, Hopkins, and Lamar counties.
627-23 (b) Each director must be a qualified elector and a resident
627-24 of a county in the region for which the director is appointed.
627-25 (c) Each director serves for a term of office as provided by
627-26 this subsection and until a successor has qualified. Directors
628-1 serve staggered terms of six years, with the terms of one-third of
628-2 the directors expiring February 1 of each odd-numbered year.
628-3 (d) Each director shall qualify by taking the constitutional
628-4 oath of office and by executing a bond in an amount determined by
628-5 the board conditioned on the faithful performance of the person's
628-6 duties as director.
628-7 (e) All vacancies on the board shall be filled in the manner
628-8 provided by this section for making the original appointment.
628-9 (f) The governor may remove a director from office for
628-10 inefficiency, neglect of duty, misconduct in office, or absence
628-11 from three consecutive regular meetings of the board. Before a
628-12 director is removed from office, the board shall call and hold a
628-13 hearing on the charges against the director, and the director who
628-14 is the subject of the proposed removal is entitled to appear at the
628-15 hearing and present evidence to show why the director should not be
628-16 removed from office. Not later than the 30th day before the date
628-17 of the hearing, the board shall give the accused director notice of
628-18 the charges against the director and the time and place for the
628-19 hearing. An affirmative vote of at least four of the directors is
628-20 required to approve a recommendation for removal. A recommendation
628-21 for removal shall be forwarded to the governor for the governor's
628-22 consideration and action as provided by this subsection.
628-23 (g) A majority of the members of the board constitutes a
628-24 quorum for the transaction of business.
628-25 (h) The board shall adopt and may amend necessary rules for
628-26 the conduct of the authority's business.
629-1 (i) The board shall elect a president, one or more vice
629-2 presidents, a secretary, a treasurer, and other officers as the
629-3 members of the board consider necessary. The president and vice
629-4 president must be directors, but other officers are not required to
629-5 be members of the board. The offices of the secretary and
629-6 treasurer may be combined, and the offices of assistant secretary
629-7 and assistant treasurer may be combined.
629-8 Sec. 273.007. INTEREST IN CONTRACT. A director who has a
629-9 financial interest in a contract of the authority for the purchase,
629-10 sale, lease, rental, or supply of property, including supplies,
629-11 materials, and equipment, or the construction of facilities shall
629-12 disclose that fact to the other members of the board and may not
629-13 vote on or participate in discussions during board meetings on the
629-14 acceptance of the contract. A financial interest of a director
629-15 does not affect the validity of a contract if disclosure is made
629-16 and the director with the financial interest does not vote on the
629-17 question of entering into the contract.
629-18 Sec. 273.008. DIRECTOR'S COMPENSATION. (a) A director is
629-19 entitled to receive $25 per day and reimbursement for actual and
629-20 necessary expenses incurred:
629-21 (1) for each day the director spends attending
629-22 meetings of the board; and
629-23 (2) for each day the director spends attending to
629-24 business of the authority that is authorized by the board.
629-25 (b) A director is not entitled to receive a per diem
629-26 allowance for more than 50 days in any single calendar year.
630-1 Sec. 273.009. COMMITTEES. The board may appoint or
630-2 establish committees from the membership of the board as necessary
630-3 or desirable in conducting the business of the authority. Subject
630-4 to the applicable rules of law on delegation of powers, the board
630-5 may assign or delegate or provide for the assignment or delegation
630-6 of any powers, duties, and functions to its committees as the board
630-7 may provide by rule or resolution.
630-8 Sec. 273.010. EXECUTIVE DIRECTOR. (a) By majority vote of
630-9 the qualified directors the board may employ an executive director
630-10 and set the executive director's salary and other compensation.
630-11 (b) The executive director is the chief executive officer of
630-12 the authority.
630-13 (c) Under policies established by the board, the executive
630-14 director is responsible to the board for:
630-15 (1) administering the directives of the board;
630-16 (2) keeping the authority's records, including minutes
630-17 of the meetings of the board and the executive committee;
630-18 (3) coordinating with state, federal, and local
630-19 agencies;
630-20 (4) developing plans and programs for the approval of
630-21 the board or the executive committee;
630-22 (5) hiring, supervising, training, and discharging the
630-23 authority's employees, as authorized by the board or the executive
630-24 committee;
630-25 (6) contracting for or retaining technical,
630-26 scientific, legal, fiscal, and other professional services, as
631-1 authorized by the board; and
631-2 (7) performing any other duties assigned by the board.
631-3 (d) The board may discharge the executive director on a
631-4 majority vote of the qualified directors.
631-5 Sec. 273.011. DIRECTORS' AND EMPLOYEES' BONDS. (a) The
631-6 executive director, the treasurer, and other officers, agents, and
631-7 employees of the authority who have responsibilities that involve
631-8 the collection, custody, or payment of any money of the authority
631-9 shall execute a fidelity bond. The board shall approve the form,
631-10 amount, and surety of the bond.
631-11 (b) The authority shall pay the premiums on the bonds
631-12 required under this chapter.
631-13 Sec. 273.012. PRINCIPAL OFFICE. The authority shall
631-14 maintain its principal office inside its boundaries.
631-15 Sec. 273.013. RECORDS. (a) The authority shall keep
631-16 complete and accurate accounts of its business transactions in
631-17 accordance with generally accepted methods of accounting.
631-18 (b) The authority shall keep complete and accurate minutes
631-19 of its meetings.
631-20 (c) The authority shall keep its accounts, contracts,
631-21 documents, minutes, and other records at its principal office.
631-22 (d) Except as otherwise required by law, the authority may
631-23 not disclose any records that it has relating to trade secrets or
631-24 the economics of operation of any business or industry.
631-25 (e) Except as provided by Subsection (d), the authority
631-26 shall permit reasonable public inspection of its records during
632-1 regular business hours under rules adopted by the board.
632-2 Sec. 273.014. SEAL. The authority shall adopt a seal.
632-3 Sec. 273.015. SUIT. (a) The authority may sue and be sued
632-4 in the name of the authority.
632-5 (b) Service of process may be accomplished by serving the
632-6 president or vice president of the board or the executive director.
632-7 (c) All courts of this state shall take judicial notice of
632-8 the establishment of the authority.
632-9 Sec. 273.016. GENERAL POWERS AND DUTIES. (a) The authority
632-10 shall administer this chapter and shall use its facilities and
632-11 powers to accomplish the purposes of this chapter.
632-12 (b) The authority may exercise the powers, rights, and
632-13 privileges necessary or convenient for accomplishing the purposes
632-14 of this chapter.
632-15 (c) The powers granted to the authority by this chapter are
632-16 cumulative of all powers granted by other laws that are applicable
632-17 to the authority. The powers granted to the authority by this
632-18 chapter are not intended to restrict the powers of any conservation
632-19 and reclamation district previously created within the basin or
632-20 area of the authority under Section 59, Article XVI, Texas
632-21 Constitution. It is the legislature's intent that the authority
632-22 and those districts exercise their respective powers in a
632-23 cooperative manner.
632-24 (d) A district previously created under Section 59, Article
632-25 XVI, or Sections 52(b)(1) and (2), Article III, Texas Constitution,
632-26 may coordinate its plans with the authority and may enter into
633-1 joint undertakings for the purposes for which the districts are
633-2 created. However, those undertakings must be approved by a
633-3 majority of the boards of directors of the district and of the
633-4 authority.
633-5 Sec. 273.017. CONTROL AND USE OF WATERS. (a) Subject to
633-6 the constitution and other laws of the state and the continuing
633-7 right of supervision of the state through the commission, the
633-8 authority may exercise authority over the storm water and
633-9 floodwater of the basin, subject to applicable provisions of this
633-10 code.
633-11 (b) The authority may exercise the powers of control and use
633-12 of the state's water in the following manner and for the following
633-13 purposes:
633-14 (1) to provide for the control and coordination of
633-15 water use in the basin as a unit;
633-16 (2) to provide by adequate organization and
633-17 administration for the preservation of the rights of the people of
633-18 the different sections of the basin in the beneficial use of water;
633-19 (3) to provide for conserving storm water, floodwater,
633-20 and unappropriated flow water of the basin, including the storage,
633-21 control, transportation, treatment, and distribution of that water,
633-22 and for the prevention of the escape of water without the maximum
633-23 of public service, the prevention of devastation of land from
633-24 recurrent overflows, and the protection of life and property in the
633-25 river basin from uncontrolled floodwater;
633-26 (4) to provide for the conservation of water essential
634-1 for domestic and other water uses of the people of the basin,
634-2 including necessary water supplies for cities, towns, and
634-3 industrial districts;
634-4 (5) to provide for the irrigation of land in the basin
634-5 where irrigation is required for agricultural purposes or is
634-6 considered helpful to more profitable agricultural production and
634-7 to provide for the equitable distribution of storm water,
634-8 floodwater, and unappropriated flow water to the regional potential
634-9 requirements for all uses;
634-10 (6) to provide for the encouragement and development
634-11 of drainage systems and provisions for drainage of land in the
634-12 valleys of the basin needing drainage for profitable agricultural
634-13 and livestock production and industrial activities and for other
634-14 drainage of land for the most advantageous use;
634-15 (7) to provide for the conservation of soil against
634-16 destructive erosion and to prevent the increased risk of flood
634-17 incident to erosion;
634-18 (8) to control and make available for use storm water,
634-19 floodwater, and unappropriated flow water, as authorized by the
634-20 commission, in the development of commercial and industrial
634-21 enterprises in all sections of the watershed area of the authority;
634-22 (9) to provide for the control, storage, and use of
634-23 storm water, floodwater, and unappropriated flow water in the
634-24 development and distribution of hydroelectric power, where this use
634-25 may be economically coordinated with other and superior uses and
634-26 subordinated to the uses declared by law to be superior;
635-1 (10) to provide for each purpose and use for which
635-2 storm water, floodwater, and unappropriated flow water when
635-3 controlled and conserved may be used in the performance of a useful
635-4 service as contemplated and authorized by the provisions of the
635-5 constitution and laws of the state;
635-6 (11) to control, store, and preserve the water of the
635-7 basin inside the boundaries of the authority for any useful
635-8 purpose;
635-9 (12) to use, distribute, and sell water for any
635-10 beneficial purpose inside and outside the authority; and
635-11 (13) to acquire water and water rights inside and
635-12 outside the authority.
635-13 (c) Plans and works provided by the authority or under
635-14 authorization of the authority should give primary consideration to
635-15 the necessary and potential needs for water by or within the
635-16 various areas within the watersheds of the basin.
635-17 (d) The authority shall adopt and implement a program of
635-18 water conservation consistent with rules and criteria duly adopted
635-19 and enforceable by the commission for similarly situated
635-20 authorities. A program of water conservation means the use of
635-21 practices, techniques, and technologies that will reduce the
635-22 consumption of water, reduce the loss or waste of water, improve
635-23 efficiency in the use of water, or increase the recycling and reuse
635-24 of water so that a water supply is made available for future uses.
635-25 Sec. 273.018. FORESTATION AND REFORESTATION. The authority
635-26 may forest and reforest and aid in the foresting and reforesting of
636-1 the watershed area of the basin.
636-2 Sec. 273.019. GROUNDWATER. (a) The authority may conduct
636-3 surveys and studies of the groundwater supplies in the authority
636-4 for the purpose of determining the location and quantity of
636-5 groundwater available and develop and ascertain other data and
636-6 information that in the judgment of the board may be necessary to
636-7 fully develop water uses from the groundwater in the authority.
636-8 (b) Subject to the requirements of applicable laws and with
636-9 the approval and under the supervision of the commission, the
636-10 authority may appropriate storm water and floodwater to recharge
636-11 underground freshwater-bearing sand and aquifers in the basin.
636-12 Sec. 273.020. WATER QUALITY CONTROL. The authority is a
636-13 river authority for the purposes and definitions of Chapters 362
636-14 and 383, Health and Safety Code, and Chapter 30 as they apply to
636-15 the authority. If one of those chapters conflicts with this
636-16 chapter, this chapter prevails.
636-17 Sec. 273.021. SOLID WASTE. The authority may purchase,
636-18 acquire, construct, maintain, and provide facilities, equipment,
636-19 and disposal sites to furnish solid waste collection,
636-20 transportation, treatment, and disposal services inside the
636-21 authority, may charge for the services, and may enter into
636-22 contracts for those services with any person.
636-23 Sec. 273.022. PARKS AND RECREATIONAL FACILITIES. The
636-24 authority may acquire land adjacent to or in the basin for park and
636-25 recreational purposes and may acquire, construct, and maintain park
636-26 and recreational facilities on that land.
637-1 Sec. 273.023. PERMITS AND LICENSES. (a) The authority
637-2 shall apply for any permits, licenses, franchises, and other grants
637-3 of authority required from the commission.
637-4 (b) The authority may apply for any permits, licenses,
637-5 franchises, and financial assistance it may need from the Texas
637-6 Water Development Board, the commission, or any other state,
637-7 federal, or local governmental agency.
637-8 Sec. 273.024. SERVICE CONTRACTS AND CHARGES. (a) The
637-9 authority may enter into service contracts and may adopt
637-10 resolutions and orders establishing rates and providing for the
637-11 collection of fees and charges for the sale or use of water, the
637-12 services of water transmission, treatment, and storage facilities,
637-13 solid and liquid waste collection, treatment and disposal
637-14 facilities and services, the use of park and recreational
637-15 facilities, the sale of power and electric energy, and any other
637-16 services or facilities sold, furnished, or supplied by the
637-17 authority.
637-18 (b) The fees and charges shall be sufficient to produce
637-19 revenues adequate to:
637-20 (1) pay expenses necessary for the operation and
637-21 maintenance of the property and facilities of the authority;
637-22 (2) pay the principal of and interest on any bonds or
637-23 other obligations issued by the authority when due and payable and
637-24 to fulfill any reserve or other fund obligations of the authority
637-25 in connection with the bonds or other obligations; and
637-26 (3) pay any other expenses the board considers
638-1 necessary and proper for the operations of the authority.
638-2 Sec. 273.025. EMINENT DOMAIN. (a) The authority may
638-3 acquire land inside and outside the authority to carry out the
638-4 powers, rights, privileges, authority, and functions authorized by
638-5 this chapter by condemnation when the board determines, after
638-6 notice and hearing, that it is necessary.
638-7 (b) The right of eminent domain shall be exercised by the
638-8 authority in the manner provided by Chapter 21, Property Code,
638-9 except that the authority is not required to give bond for appeal
638-10 or bond for costs in a condemnation suit or other suit to which it
638-11 is a party and is not required to deposit double the amount of any
638-12 award in any suit.
638-13 (c) If the authority, in the exercise of the power of
638-14 eminent domain, makes necessary the relocation, raising, lowering,
638-15 rerouting, changing the grade, or alteration of the construction of
638-16 any highway, railroad, electric transmission or distribution line,
638-17 telephone or telegraph properties and facilities, or pipeline, all
638-18 necessary relocations, raising, lowering, rerouting, changing the
638-19 grade, or alteration of construction shall be accomplished at the
638-20 sole expense of the authority. In this subsection "sole expense"
638-21 means the actual cost of relocation, raising, lowering, rerouting,
638-22 change in grade, or alteration of construction to provide
638-23 comparable replacement without enhancement of facilities after
638-24 deducting the net salvage value derived from the old facility.
638-25 Sec. 273.026. ACQUISITION AND DISPOSITION OF PROPERTY.
638-26 (a) The authority may purchase, lease, acquire by gift, maintain,
639-1 use, and operate property of any kind inside or outside the
639-2 authority appropriate for the exercise of its powers or the
639-3 accomplishment of its purposes.
639-4 (b) The authority may sell any property or interest in
639-5 property owned by the authority by installments or otherwise,
639-6 including sales in any manner prescribed or authorized by Section
639-7 402.014, Local Government Code, Chapter 383, Health and Safety
639-8 Code, and Chapter 30. The authority may also lease, exchange, or
639-9 otherwise dispose of any property or interest in property.
639-10 Sec. 273.027. FACILITIES. The authority may acquire,
639-11 construct, extend, improve, maintain, reconstruct, use, and operate
639-12 facilities inside or outside the authority necessary or convenient
639-13 to the exercise of its powers, rights, duties, and functions or the
639-14 accomplishment of its purposes.
639-15 Sec. 273.028. USE OF PUBLIC EASEMENTS. The authority may
639-16 use public roadways, streets, alleys, or public easements inside or
639-17 outside the boundaries of the authority in the exercise of its
639-18 powers or the accomplishment of its purposes without the necessity
639-19 of securing a franchise.
639-20 Sec. 273.029. CONTRACTS GENERALLY. (a) The authority may
639-21 enter into contracts and execute instruments that are necessary or
639-22 convenient to the exercise of its powers, rights, duties, and
639-23 functions or the accomplishment of its purposes.
639-24 (b) Notwithstanding any other law, the authority may
639-25 undertake and carry out any activities, enter into contracts, loan
639-26 agreements, leases, or installment sales agreements, and acquire,
640-1 purchase, construct, own, operate, maintain, repair, improve, or
640-2 extend and loan, lease, sell, or otherwise dispose of, as the
640-3 parties may agree, any facilities, plants, buildings, structures,
640-4 equipment, and appliances, property or any interest in property,
640-5 and any or all money or proceeds of bonds and other obligations.
640-6 These activities and agreements may be accomplished by such methods
640-7 as loan payments, rentals, sales, and installment sales.
640-8 (c) The authority may contract with all persons in any
640-9 manner authorized by this chapter, Chapters 362 and 383, Health and
640-10 Safety Code, and Chapter 30 with respect to water, waste, pollution
640-11 control, or any other facilities and any services provided by the
640-12 authority. A public agency may also enter into and execute such a
640-13 contract with the authority and may determine, agree, and pledge
640-14 that all or any parts of its payments under the contract are
640-15 payable from the source described in Section 30.030(c), subject
640-16 only to the authorization of the contract, pledge, and payments by
640-17 the governing body of the public agency. A public agency may also
640-18 use and pledge other available revenues or resources for payment of
640-19 amounts due under those contracts, as an additional source or
640-20 sources of payment or as the sole source or sources of payment.
640-21 (d) A public agency may set, charge, and collect fees,
640-22 rates, charges, rentals, and other amounts for services or
640-23 facilities provided by a utility operated by the agency, or
640-24 provided pursuant to or in connection with a contract with the
640-25 authority, from its inhabitants or from users or beneficiaries of
640-26 the utility, services, or facilities, including water charges and
641-1 garbage collection or handling fees and other fees or charges, may
641-2 use and pledge those funds to make payments to the authority
641-3 required under the contract, and may covenant to do so in amounts
641-4 sufficient to make all or part of those payments to the authority
641-5 when due. If the parties agree in the contract, the payments
641-6 constitute an expense of operation of any facilities or utility
641-7 operated by the public agency.
641-8 Sec. 273.030. BIDS AND CONTRACT CONDITIONS. (a) A
641-9 construction, maintenance, operation, or repair contract, a
641-10 contract for the purchase of material, equipment, or supplies, or a
641-11 contract for services, other than technical, scientific, legal,
641-12 fiscal, or other professional services, that will require an
641-13 estimated expenditure of more than $10,000 or is for a term of six
641-14 months or more shall be awarded to the lowest and best bidder. If
641-15 the board finds that an extreme emergency exists, the board may
641-16 award contracts necessary to protect and preserve the public health
641-17 and welfare or the property of the authority without using the
641-18 bidding procedures.
641-19 (b) A notice to bidders shall be published once each week
641-20 for three consecutive weeks before the date set for awarding the
641-21 contract. The notice must be published in a newspaper with general
641-22 circulation in the authority and may also be published in any other
641-23 appropriate publication.
641-24 (c) The notice of bids is sufficient if it states the time
641-25 and place at which the bids will be opened and the general nature
641-26 of the work to be done, the material, equipment, or supplies to be
642-1 purchased, or the nonprofessional services to be rendered and
642-2 states the terms on which copies of the plans, specifications, or
642-3 other pertinent information may be obtained.
642-4 (d) A person who desires to bid on the construction of any
642-5 work or project that is advertised for bids shall, on written
642-6 application to the authority, be provided a copy of the plans and
642-7 specifications or other engineering and architectural documents
642-8 showing the work to be done and all of the details of the work to
642-9 be done. The authority may make a charge to cover the cost of
642-10 making the copy. Bids must be in writing and sealed and delivered
642-11 to the authority and must be accompanied by a certified check on a
642-12 responsible bank in the state, or, at the discretion of the
642-13 authority, a bid bond from a company approved by the authority, for
642-14 at least one percent of the total amount bid. The check or bond is
642-15 forfeited to the authority if the successful bidder fails or
642-16 refuses to enter into a proper contract or fails or refuses to
642-17 furnish bond as required by law. Any or all bids may be rejected
642-18 by the authority, and the authority may waive any irregularity in
642-19 the bids.
642-20 (e) Bids shall be opened at the place specified in the
642-21 published notice and shall be announced by the authority. The
642-22 place where the bids are opened and announced shall be open to the
642-23 public. The award of the contract shall be made by the board.
642-24 (f) The contract price of construction contracts of the
642-25 authority may be paid in partial payment as the work progresses,
642-26 but the payments shall not exceed 90 percent of the amount due at
643-1 the time of the payment as shown by the report of the engineer of
643-2 the authority. During the progress of the work, the executive
643-3 director shall inspect the construction or have the construction
643-4 inspected by the authority's engineer or the engineer's assistants.
643-5 On certification of the executive director and the authority's
643-6 engineer of the completion of the contract in accordance with its
643-7 terms, and in the case of any construction contract for which
643-8 notice to bidders is required by this chapter, on approval of the
643-9 board, the board shall draw a warrant on its depository to pay the
643-10 balance due on the contract.
643-11 (g) The person, firm, or corporation with whom the contract
643-12 is made shall provide the performance and payment bonds required by
643-13 law.
643-14 (h) This section does not prohibit the authority from
643-15 purchasing or acquiring land or interests in land from any person,
643-16 from acquiring, constructing, or improving pollution control or
643-17 waste collection and disposal facilities as provided by Chapter
643-18 383, Health and Safety Code, or Chapter 30 or other applicable
643-19 laws, or from purchasing or acquiring surplus property from a
643-20 governmental entity by negotiated contract and without necessity
643-21 for advertising for bids.
643-22 (i) An officer, agent, or employee of the authority who has
643-23 a financial interest in a contract shall disclose that fact to the
643-24 board before the board votes on the acceptance of the contract.
643-25 Sec. 273.031. AUTHORITY RULES. (a) The authority may adopt
643-26 and enforce rules reasonably required to carry out the purposes of
644-1 this chapter.
644-2 (b) In adopting rules, the board shall comply, as
644-3 appropriate, with the requirements of Chapter 2001, Government
644-4 Code.
644-5 (c) The board shall print its rules and furnish copies to
644-6 any person on written request.
644-7 Sec. 273.032. PENALTIES. (a) A person who violates a rule
644-8 or order of the authority is subject to a civil penalty of not less
644-9 than $50 nor more than $1,000 for each day of violation.
644-10 (b) The authority may sue to recover the penalty in a
644-11 district court in the county in which the violation occurred.
644-12 Penalties shall be paid to the authority.
644-13 (c) The authority may sue for injunctive relief in a
644-14 district court in the county in which the violation of any rule or
644-15 order occurred or is threatened.
644-16 (d) The authority may sue for injunctive relief and
644-17 penalties in the same proceeding.
644-18 Sec. 273.033. COURT REVIEW. (a) A person who is adversely
644-19 affected by a rule or order of the authority may, before the 31st
644-20 day after the day on which the rule or order takes effect, sue the
644-21 authority in a district court to set aside the rule or order.
644-22 (b) Venue for suits under Subsection (a) is in any county
644-23 located wholly or partially in the authority.
644-24 Sec. 273.034. SURVEYS AND ENGINEERING INVESTIGATIONS;
644-25 PLANNING. (a) The authority may make surveys and engineering
644-26 investigations to develop information for the authority's use.
645-1 (b) The board may make and determine plans necessary to
645-2 accomplish the purposes for which the authority is created and may
645-3 carry out the plans.
645-4 Sec. 273.035. ACCESS. (a) To provide for the safety and
645-5 welfare of persons and their property or for the protection and
645-6 security of the property and facilities of the authority, the board
645-7 may adopt rules with respect to the property of the authority and
645-8 any water reservoir or dam, the construction, operation, or
645-9 management of which is participated in by the authority, to control
645-10 and regulate ingress, egress, and use and the operation of land and
645-11 water vehicles.
645-12 (b) All public roads, streets, and state highways traversing
645-13 the areas adjacent to the areas to be covered by any impounded
645-14 water shall remain open as a way of public passing to and from the
645-15 lakes created, unless changed by the authority.
645-16 Sec. 273.036. USE OF BED AND BANKS OF SULPHUR RIVER AND ITS
645-17 TRIBUTARIES. Subject to the approval of the commission, the
645-18 authority may use the beds and banks of the Sulphur River and its
645-19 tributary streams for any purposes necessary to accomplish the
645-20 plans of the authority for storing, controlling, conserving,
645-21 transporting, and distributing storm water, floodwater, and
645-22 appropriated flow waters for useful purposes.
645-23 Sec. 273.037. WORK WITH DEVELOPMENT BOARD. The authority
645-24 has and may exercise all the powers vested in political
645-25 subdivisions under Title 2, including the powers necessary to
645-26 enable the authority to participate in the programs administered by
646-1 the Texas Water Development Board for the acquisition and
646-2 development of facilities, the sale or lease of facilities,
646-3 financial assistance to political subdivisions, and other programs.
646-4 Sec. 273.038. GENERAL PROVISIONS. (a) The board may
646-5 provide for any expenditures it considers essential or useful in
646-6 the maintenance, operation, and administration of the authority.
646-7 (b) The authority may perform any other acts or things
646-8 necessary or convenient to the exercise of the powers, rights,
646-9 privileges, or functions conferred by this chapter or other laws.
646-10 Sec. 273.039. LIMITATIONS ON AUTHORITY AND SUPERVISION BY
646-11 COMMISSION. (a) The powers and duties granted and prescribed by
646-12 this chapter are subject to all legislative declarations of public
646-13 policy in the maximum use of the storm water, floodwater, and
646-14 unappropriated flow water of the basin for the purposes for which
646-15 the authority is created and subject to the continuing right of
646-16 supervision of the state through the commission.
646-17 (b) The commission shall approve or refuse to approve the
646-18 adequacy of any plan or plans for flood control or conservation
646-19 improvement purposes that are devised by the authority for the
646-20 achievement of the plans and purposes intended in the creation of
646-21 the authority and that contemplate improvements supervised by the
646-22 commission under general law.
646-23 Sec. 273.040. DISBURSEMENT OF FUNDS. The authority's funds
646-24 may be disbursed only by check, draft, order, or other instrument
646-25 signed by the person or persons authorized in the board's rules or
646-26 by resolution of the board.
647-1 Sec. 273.041. FEES AND CHARGES. The authority shall
647-2 establish fees and charges that may not be higher than necessary to
647-3 fulfill the obligations imposed by this chapter.
647-4 Sec. 273.042. LOANS AND GRANTS. (a) The authority may
647-5 borrow money and accept grants and donations for its corporate
647-6 purposes from private sources, the United States, the state, local
647-7 governments, or any other person. The authority may enter into any
647-8 agreement in connection with the loan, grant, or donation that is
647-9 not in conflict with the constitution and laws of the state.
647-10 (b) The sources of any funds accepted by the authority are
647-11 public information.
647-12 Sec. 273.043. FUNDS FOR SURVEYS AND DATA COLLECTION. The
647-13 authority may apply to the state, the United States, or any other
647-14 person for funds necessary to secure engineering surveys and the
647-15 compilation and collection of data relating to regional and general
647-16 conditions entering into and influencing the character and the
647-17 extent of the improvements necessary to accomplish the storage,
647-18 control, transportation, treatment, conservation, and equitable
647-19 distribution to the greatest public advantage of the storm water,
647-20 floodwater, and normal flow that is stored and controlled and to
647-21 accomplish or carry out any of the other purposes of this chapter.
647-22 The authority shall request an amount it considers sufficient. The
647-23 authority may make the necessary agreements with the party
647-24 providing the funds and may appropriate the amount of the estimated
647-25 equitable contribution of the costs of developing essential
647-26 engineering data.
648-1 Sec. 273.044. TRUST FUNDS. Funds collected by or donated,
648-2 granted, loaned, or advanced to the authority are declared to be
648-3 trust funds for the purposes provided by this chapter.
648-4 Sec. 273.045. INVESTMENT OF FUNDS. (a) Funds in the
648-5 authority treasury that are not required for current payment of
648-6 obligations of the authority or for sinking funds and that the
648-7 board considers available for investment may be invested or
648-8 reinvested by the authority in:
648-9 (1) direct obligations of or obligations the principal
648-10 and interest of which are guaranteed by the United States;
648-11 (2) direct obligations of or participation
648-12 certificates guaranteed by the Federal Intermediate Credit Banks,
648-13 Federal Land Banks, Federal National Mortgage Association, Federal
648-14 Home Loan Banks, and Banks for Cooperatives;
648-15 (3) certificates of deposit of a bank or trust company
648-16 the deposits of which are fully secured by a pledge of securities
648-17 of any of the institutions specified in this subsection;
648-18 (4) other securities eligible for investment under
648-19 other laws; or
648-20 (5) any combination of the investments listed in this
648-21 subsection.
648-22 (b) The type and maturity of investments made under this
648-23 section shall be determined by the board. In the case of funds
648-24 established in connection with the authorization of bonds or other
648-25 obligations, the board shall include appropriate provisions
648-26 relating to such investments in the resolution relating to the
649-1 issuance of the bonds. Income and profits on such investments
649-2 shall be applied as directed by the board.
649-3 Sec. 273.046. AUDIT. (a) The fiscal year of the authority
649-4 ends on August 31 of each year.
649-5 (b) On or before January 1 following the close of each
649-6 fiscal year, the state auditor shall audit the books and accounts
649-7 of the authority for the preceding fiscal year.
649-8 (c) The audit must state the amount of money received by the
649-9 authority under this chapter during the preceding fiscal year and
649-10 how, to whom, and for what purpose the money was spent.
649-11 (d) A copy of the audit report shall be filed with the
649-12 authority, the governor, the lieutenant governor, the speaker of
649-13 the house of representatives, the attorney general, the commission,
649-14 and the comptroller.
649-15 (e) After completing the audit report, the state auditor
649-16 shall prepare a statement showing the actual cost of the audit and
649-17 shall certify the statement to the governor for his approval.
649-18 After the statement is approved by the governor, it shall be
649-19 delivered to the authority. The authority shall pay for the cost
649-20 of the audit by depositing the money for the audit with the
649-21 comptroller, who shall place the money in the general revenue fund.
649-22 (f) This section does not prohibit the authority from
649-23 employing the professional services of accountants for any
649-24 purposes.
649-25 Sec. 273.047. DEPOSITORY BANKS. (a) The board shall
649-26 designate one or more banks inside or outside the authority to
650-1 serve as depository for the funds of the authority.
650-2 (b) All money of the authority shall be deposited in the
650-3 depository bank or banks, except that bond proceeds or proceeds of
650-4 other obligations, money pledged to pay those obligations, money
650-5 placed in special funds, and money remitted to a bank of payment
650-6 for the payment of the principal of and interest on obligations may
650-7 be handled as provided in a trust indenture or resolution.
650-8 (c) To the extent that funds in the depository banks or a
650-9 trustee bank are not invested or insured by the Federal Deposit
650-10 Insurance Corporation, the funds shall be secured in the manner
650-11 provided by law for the security of county funds.
650-12 (d) Before designating a depository bank or banks, the board
650-13 shall issue a notice stating the time and place at which the board
650-14 will meet to designate the depositories and inviting banks to
650-15 submit applications to be designated depositories. The term of
650-16 service for depositories shall be prescribed by the board. The
650-17 notice must be published one time in a newspaper or newspapers of
650-18 general circulation in the authority and specified by the board, or
650-19 in lieu of publication, a copy of the notice may be mailed to each
650-20 bank inside the boundaries of the authority.
650-21 (e) At the time stated in the notice, the board shall
650-22 consider the applications and the management and conditions of the
650-23 banks filing them and shall designate as depositories the bank or
650-24 banks that offer the most favorable terms and conditions for the
650-25 handling of the funds of the authority and that the board finds
650-26 have proper management and are in condition to warrant handling of
651-1 authority funds. Membership on the board by an officer or director
651-2 of a bank does not disqualify the bank from being designated as
651-3 depository.
651-4 (f) If no applications seeking designation as depository are
651-5 received by the time stated in the notice, the board shall
651-6 designate a bank or banks inside or outside the authority as
651-7 depository on terms and conditions the board considers advantageous
651-8 to the authority.
651-9 Sec. 273.048. BONDS. (a) For the purpose of carrying out
651-10 any power or authority provided by this chapter, including the
651-11 expense of preparing the master plan and the payment of engineering
651-12 and other expenses, the authority may issue bonds or other
651-13 obligations in one general class secured by a pledge of all or part
651-14 of the revenues accruing to the authority, including without
651-15 limitations the revenues received from the sale of water or other
651-16 products, from the rendition of service, from tolls and charges,
651-17 and from all other sources other than ad valorem taxes.
651-18 (b) The bonds must be authorized by resolution of the board,
651-19 issued in the name of the authority, signed by the president or a
651-20 vice president, and attested by the secretary. The bonds must bear
651-21 the seal of the authority. If authorized by the board, the
651-22 signatures of the president or vice president and of the secretary
651-23 or of both may be printed or lithographed on the bonds, and the
651-24 seal of the authority may be impressed on the bonds or may be
651-25 printed or lithographed on the bonds.
651-26 (c) The bonds shall be in the form prescribed by the board,
652-1 shall be in any denomination or denominations, must mature serially
652-2 or otherwise in not to exceed 50 years from their date, shall bear
652-3 interest according to law, and may be sold at a price and under
652-4 terms determined by the board to be the most advantageous
652-5 reasonably obtainable. The board may make the bonds callable
652-6 before maturity at the times and prices prescribed in the bonds,
652-7 and the bonds may be made registrable as to principal or as to both
652-8 principal and interest. The bonds may be further secured by a
652-9 trust indenture with a corporate trustee.
652-10 (d) Bonds may be issued in more than one series, and from
652-11 time to time, as required for carrying out the purposes of this
652-12 chapter. A pledge of revenue may reserve the right, under
652-13 specified conditions, to issue additional obligations that will be
652-14 on a parity with or subordinate to the obligations being issued.
652-15 (e) The authority is an "issuer" for the purpose of Chapter
652-16 1371, Government Code, and that law applies to the authority.
652-17 (f) The resolution authorizing the bonds or the trust
652-18 indenture further securing the bonds may specify additional
652-19 provisions that constitute a contract between the authority and the
652-20 owners of the bonds. The board may provide for additional
652-21 provisions, including a corporate trustee or receiver provided by
652-22 the authority to take possession of facilities of the authority in
652-23 the event of default on the part of the authority in fulfilling the
652-24 covenants.
652-25 Sec. 273.049. REFUNDING BONDS. The authority may issue
652-26 refunding bonds to refund outstanding obligations issued under this
653-1 chapter. Refunding bonds may be issued by the authority as
653-2 provided by Chapter 1207, Government Code. Obligations issued at
653-3 any time by the authority may also be refunded in the manner
653-4 provided by any other applicable law.
653-5 Sec. 273.050. APPROVAL AND REGISTRATION OF BONDS.
653-6 (a) After bonds, including refunding bonds, are authorized by the
653-7 authority, the bonds and the record relating to their issuance
653-8 shall be submitted to the attorney general for examination as to
653-9 the validity of the bonds. If obligations are to be issued to
653-10 finance in whole or in part water-using facilities, before granting
653-11 approval the attorney general shall be furnished a resolution from
653-12 the commission certifying that the authority has the necessary
653-13 water rights authorizing it to impound and appropriate the water to
653-14 be used by the project. If the obligations recite that they are
653-15 secured by a pledge of the proceeds of a contract made between the
653-16 authority and any public agency, a copy of the contract and the
653-17 proceedings of the public agency authorizing the contract shall
653-18 also be submitted to the attorney general.
653-19 (b) If the attorney general finds that the bonds have been
653-20 authorized and the contracts have been made as provided by the
653-21 constitution and laws of the state, the attorney general shall
653-22 approve the bonds and the contracts and the bonds shall then be
653-23 registered by the comptroller.
653-24 (c) After approval and registration, the bonds and contracts
653-25 are valid and binding and are incontestable for any cause.
653-26 Sec. 273.051. BONDS AS INVESTMENTS OR SECURITY FOR DEPOSITS.
654-1 (a) Authority bonds are legal and authorized investments for:
654-2 (1) banks;
654-3 (2) savings banks;
654-4 (3) trust companies;
654-5 (4) savings and loan associations;
654-6 (5) insurance companies;
654-7 (6) fiduciaries;
654-8 (7) trustees;
654-9 (8) guardians; and
654-10 (9) sinking funds of cities, counties, school
654-11 districts, and other political subdivisions of the state and other
654-12 public funds of the state and its agencies, including the permanent
654-13 school fund.
654-14 (b) Authority bonds are eligible to secure deposits of
654-15 public funds of the state and cities, counties, school districts,
654-16 and other political subdivisions of the state. The bonds are
654-17 lawful and sufficient security for deposits to the extent of their
654-18 value.
654-19 Sec. 273.052. LEGISLATIVE FINDINGS. The legislature finds
654-20 and determines that the boundaries of the authority form a closure.
654-21 If a mistake is made in the description of the boundaries in the
654-22 legislative process or a mistake is otherwise made, the mistake
654-23 does not affect the organization, existence, and validity of the
654-24 authority or the right of the authority to issue any types of
654-25 bonds, including refunding bonds, for the purposes for which the
654-26 authority is created or to pay the principal of or interest on the
655-1 obligations or in any other manner affect the legality or operation
655-2 of the authority or its governing body.
655-3 CHAPTER 274. SULPHUR RIVER MUNICIPAL WATER DISTRICT
655-4 Sec. 274.001. CREATION. (a) A conservation and reclamation
655-5 district to be known as the "Sulphur River Municipal Water
655-6 District" is created. The district is a governmental agency and a
655-7 body politic and corporate.
655-8 (b) The district is created under and is essential to
655-9 accomplish the purposes of Section 59, Article XVI, Texas
655-10 Constitution.
655-11 Sec. 274.002. DEFINITIONS. In this chapter:
655-12 (1) "Board" means the board of directors of the
655-13 district.
655-14 (2) "Director" means a member of the board.
655-15 (3) "District" means the Sulphur River Municipal Water
655-16 District.
655-17 Sec. 274.003. TERRITORY. (a) The district comprises all
655-18 the territory that was contained within the cities of Cooper,
655-19 Commerce, and Sulphur Springs on March 1, 1955. A defect in the
655-20 definition of the boundaries of any of those cities or in any past
655-21 or future proceedings for the annexation of territory to any of
655-22 those cities does not affect the validity of the district or any of
655-23 its powers or duties.
655-24 (b) It is found that all the land included in the district
655-25 will benefit from the improvements to be acquired and constructed
655-26 by the district.
656-1 Sec. 274.004. BOARD OF DIRECTORS. (a) All powers of the
656-2 district shall be exercised by a board of directors. The directors
656-3 shall be appointed by a majority vote of the governing body of each
656-4 of the cities contained in the district.
656-5 (b) In May of each year, the governing body of each city
656-6 shall appoint one director for a two-year term beginning on June 1
656-7 of that year.
656-8 (c) Each director serves for a term of office as provided by
656-9 this section and until a successor is appointed and has qualified.
656-10 (d) A director must reside in and own taxable property in
656-11 the city from which the director is appointed. A member of a
656-12 governing body of a city or an employee of a city is not eligible
656-13 to serve as a director.
656-14 (e) A director shall subscribe the constitutional oath of
656-15 office and shall give bond for the faithful performance of the
656-16 director's duties in the amount of $5,000. The cost of the bond
656-17 shall be paid by the district.
656-18 (f) A majority of the members of the board constitutes a
656-19 quorum.
656-20 Sec. 274.005. DIRECTOR FEES. (a) Each director is entitled
656-21 to receive a fee of $20 for attending each meeting of the board;
656-22 provided, however, that not more than $40 shall be paid to any
656-23 director for meetings held in any one calendar month.
656-24 (b) A director is entitled to receive a fee of $20 per day
656-25 for each day devoted to the business of the district and to
656-26 reimbursement for actual expenses incurred in attending to district
657-1 business if such service and expense are expressly approved by the
657-2 board.
657-3 Sec. 274.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
657-4 shall elect from among its members a president and a vice president
657-5 of the district and other officers the board considers necessary.
657-6 (b) The president is the chief executive officer of the
657-7 district and the presiding officer of the board and has the same
657-8 right to vote as any other director.
657-9 (c) The vice president shall perform all duties and exercise
657-10 all powers conferred by this chapter on the president when the
657-11 president is absent or fails or declines to act.
657-12 (d) The board shall appoint a secretary and a treasurer, who
657-13 may or may not be members of the board, and may combine those
657-14 offices. The treasurer shall give bond in an amount required by
657-15 the board, but in no event less than $25,000. The bond shall be
657-16 conditioned on the treasurer's faithfully accounting for all money
657-17 that comes into the treasurer's custody as treasurer of the
657-18 district. Until the district authorizes the issuance of bonds, the
657-19 amount of the official bond of the treasurer may be set by the
657-20 board in any amount not less than $5,000.
657-21 (e) The board shall appoint and employ all necessary
657-22 engineers, attorneys, and other employees.
657-23 (f) The board shall adopt a seal for the district.
657-24 Sec. 274.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
657-25 (a) Other territory in Delta, Hunt, Hopkins, and Franklin counties
657-26 may be annexed to the district as provided in this section.
658-1 (b) A petition for annexation must:
658-2 (1) be signed by 50 or a majority of the qualified
658-3 voters of the territory to be annexed who own taxable property in
658-4 the territory and who have duly rendered the property to the city,
658-5 if situated within a city or town, or county for taxation;
658-6 (2) be filed with the board; and
658-7 (3) describe the territory to be annexed by metes and
658-8 bounds or otherwise unless the territory is the same as that
658-9 contained in a city or town, in which event it shall be sufficient
658-10 to state that the territory to be annexed is that which is
658-11 contained within the city or town.
658-12 (c) If the board finds that the petition complies with and
658-13 is signed by the number of qualified persons required under
658-14 Subsection (b), that the annexation would be in the interest of the
658-15 territory to be annexed and the district, and that the district
658-16 will be able to supply water to the territory to be annexed, the
658-17 board shall adopt a resolution stating the conditions, if any,
658-18 under which the territory may be annexed to the district and
658-19 requesting the commission to annex the territory to the district.
658-20 A certified copy of the resolution and of the petition shall be
658-21 filed with the commission.
658-22 (d) The commission shall adopt a resolution declaring its
658-23 intention to call an election in the territory to be annexed for
658-24 the purpose of submitting the proposition of whether or not the
658-25 territory shall be annexed to the district. The commission shall
658-26 set a time and place for a hearing to be held by the commission on
659-1 the question of whether the territory to be annexed will be
659-2 benefited by the improvements, works, and facilities then owned or
659-3 operated or contemplated to be owned or operated by the district.
659-4 A railroad right-of-way that is not situated within the defined
659-5 limits of an incorporated city or town will not benefit from the
659-6 improvements, works, and facilities that the district is authorized
659-7 to construct. A railroad right-of-way may not be annexed to the
659-8 district unless the right-of-way is contained within the limits of
659-9 an incorporated city or town that has been annexed to the district.
659-10 (e) Notice of the adoption of the resolution stating the
659-11 time and place of the hearing and addressed to the citizens and
659-12 owners of property in the territory to be annexed shall be
659-13 published one time in a newspaper published within or having
659-14 general circulation within the territory, designated by the
659-15 commission, at least 10 days before the date of the hearing. The
659-16 notice must describe the territory to be annexed in the same manner
659-17 as required or permitted by the petition.
659-18 (f) All interested persons may appear at the hearing and
659-19 offer evidence for or against the intended annexation. The hearing
659-20 may proceed in the order and under the rules prescribed by the
659-21 commission, and the hearing may be recessed from time to time. If,
659-22 at the conclusion of the hearing, the commission finds that all of
659-23 the lands in the territory to be annexed will benefit from the
659-24 present or contemplated improvements, works, or facilities of the
659-25 district, the commission shall adopt a resolution calling an
659-26 election in the territory to be annexed stating the date and place
660-1 or places for holding the election and appointing a presiding judge
660-2 for each voting place, who shall appoint the necessary assistant
660-3 judges and clerks to assist in holding the election.
660-4 (g) Notice of the election, stating the date of the
660-5 election, the proposition to be voted on, and the conditions under
660-6 which the territory may be annexed, or making reference to the
660-7 resolution of the board for that purpose, and the place or places
660-8 for holding the election, shall be published one time in a
660-9 newspaper designated by the commission at least 10 days before the
660-10 date set for the election. If the newspaper carrying the notice is
660-11 not published within the territory to be annexed, additional notice
660-12 shall be given for the required period by posting copies of the
660-13 notice of election at three public places in the territory.
660-14 (h) Only qualified electors who reside in the territory to
660-15 be annexed may vote in the election. Returns of the election shall
660-16 be made to the commission.
660-17 (i) The commission shall canvass the returns of the election
660-18 and adopt a resolution declaring the results. If the resolution
660-19 shows that a majority of the votes cast are in favor of annexation,
660-20 the commission shall enter an order annexing the territory to the
660-21 district, and the annexation shall be incontestable except in the
660-22 manner and within the time for contesting elections under the
660-23 Election Code. A certified copy of the order shall be recorded in
660-24 the deed records of the county in which the territory is situated.
660-25 (j) The commission, in calling the election on the
660-26 proposition for annexation of territory, may include a proposition
661-1 for the assumption of the territory's part of the tax-supported
661-2 bonds of the district then outstanding and those voted but not yet
661-3 sold and for the levy of an ad valorem tax on taxable property in
661-4 the territory along with the tax in the remainder of the district
661-5 for the payment of the bonds.
661-6 (k) After territory is added to the district, the board may
661-7 call an election over the entire district for the purpose of
661-8 determining whether the district as enlarged shall assume the
661-9 tax-supported bonds, if any, then outstanding, and those voted but
661-10 not yet sold, and whether an ad valorem tax shall be levied on all
661-11 taxable property within the district as enlarged for the payment of
661-12 the bonds, unless the proposition is voted along with the
661-13 annexation election and becomes lawfully binding on the territory
661-14 annexed. The election shall be called and held in the same manner
661-15 as elections for the issuance of bonds as provided by this chapter.
661-16 (l) If no newspaper is published in the territory to be
661-17 annexed, the notices required by this section shall be posted in
661-18 three public places in the territory.
661-19 Sec. 274.008. APPOINTMENT OF DIRECTORS IN ANNEXED TERRITORY.
661-20 (a) When a city, the territory of which is annexed to the
661-21 district, has a population of 5,000 or more, the governing body of
661-22 the city shall appoint one director for a term ending the following
661-23 May 31 and one director for a term ending one year after the
661-24 following May 31. In May of each year the governing body of the
661-25 city shall appoint one director for a two-year term as provided by
661-26 this chapter for cities originally included in the district.
662-1 (b) When a city, the territory of which is annexed to the
662-2 district has a population of less than 5,000, the governing body of
662-3 the city shall appoint one director for a term ending the following
662-4 May 31. In that May and in May of each second year after that the
662-5 governing body of the city shall appoint one director for a
662-6 two-year term.
662-7 (c) If a city initially subject to Subsection (b) later has
662-8 a population of 5,000 or more, it shall be entitled to two
662-9 directors to be appointed as provided by Subsection (a).
662-10 Sec. 274.009. USE OF CERTAIN WATERS AND FACILITIES.
662-11 (a) The district may acquire:
662-12 (1) all rights to conservation storage and storage
662-13 capacity in the reservoir to be provided by Cooper Dam and
662-14 conservation storage as may result from an increase in the size of
662-15 such structure; and
662-16 (2) the right to take water from the reservoir
662-17 described by Subdivision (1) in which the dam will impound storm
662-18 waters and floodwaters and the unappropriated flow of the South
662-19 Sulphur River and its tributaries by complying with the applicable
662-20 provisions of this code and pursuant to any contracts that the
662-21 district may make with the United States government in reference to
662-22 those rights.
662-23 (b) The district may construct or otherwise acquire all
662-24 works, plants, and other facilities necessary or useful for the
662-25 purpose of diverting and further impounding or storing the water
662-26 described by Subsection (a) and processing and transporting it to
663-1 cities and others for municipal, domestic, and industrial purposes.
663-2 (c) To the extent permissible under any contract or
663-3 contracts with the United States government and its agencies under
663-4 this section, the district may dispose of surplus waters under its
663-5 control for irrigation purposes.
663-6 (d) As an aid to conserving the water in the district, the
663-7 district may construct and operate sewage disposal plants and
663-8 related facilities and may make contracts necessary to financing
663-9 the construction and operation of the plants and facilities with
663-10 any city included within the district.
663-11 (e) Any works for diverting water from the impounding dam
663-12 may not be constructed until the plans for the works are approved
663-13 by the commission.
663-14 (f) None of the powers granted by this section extend
663-15 outside of Delta County, Hunt County, Hopkins County, and Franklin
663-16 County.
663-17 Sec. 274.010. EMINENT DOMAIN. (a) For the purpose of
663-18 carrying out any power or authority conferred by this chapter the
663-19 district may acquire land and easements within and outside the
663-20 district in Delta County, Hunt County, Hopkins County, and Franklin
663-21 County, including land above the probable high-water line around
663-22 any impounding or diversion reservoir, by condemnation in the
663-23 manner provided by Chapter 21, Property Code.
663-24 (b) The district is a municipal corporation within the
663-25 meaning of Section 21.021(c), Property Code.
663-26 (c) Except as provided by Subsection (d), the amount and
664-1 character of interest in land and easements acquired under this
664-2 section shall be determined by the board.
664-3 (d) As against persons, firms, and corporations, or their
664-4 receivers or trustees, who have the power of eminent domain, the
664-5 district may condemn only an easement, and the fee title may not be
664-6 condemned.
664-7 (e) If the district, in the exercise of the power of eminent
664-8 domain or power of relocation or any other power granted under this
664-9 chapter, makes necessary the relocation, raising, rerouting,
664-10 changing the grade, or altering the construction of any highway,
664-11 railroad, electric transmission line, or pipeline, all such
664-12 necessary relocation, raising, rerouting, changing of grade, or
664-13 alteration of construction shall be accomplished at the sole
664-14 expense of the district.
664-15 Sec. 274.011. NOTICE REQUIRED FOR CERTAIN CONTRACTS. (a) A
664-16 construction contract requiring an expenditure of more than $5,000
664-17 may be made only after publication of a notice to bidders once each
664-18 week for two weeks before awarding the contract.
664-19 (b) The notice required by this section is sufficient if it
664-20 states the time and place the bids will be opened and the general
664-21 nature of the work to be done or the material, equipment, or
664-22 supplies to be purchased and states where and the terms on which
664-23 copies of the plans and specifications may be obtained. The
664-24 publication of the notice shall be in a newspaper published in the
664-25 district and designated by the board.
664-26 Sec. 274.012. BONDS. (a) For the purpose of providing a
665-1 source of water supply for cities and other users for municipal,
665-2 domestic, and industrial purposes, as authorized by this chapter,
665-3 or of providing sewage disposal plants and related facilities, or
665-4 for both such purposes, and for the purpose of carrying out any
665-5 other power or authority conferred by this chapter, the district
665-6 may issue negotiable bonds payable from the revenues or taxes, or
665-7 both revenues and taxes, of the district as pledged by resolution
665-8 of the board. Pending the issuance of definitive bonds, the board
665-9 may authorize the delivery of negotiable interim bonds or notes
665-10 that are eligible for exchange or substitution by the definitive
665-11 bonds.
665-12 (b) Bonds must be authorized by resolution of the board and
665-13 shall be issued in the name of the district, signed by the
665-14 president or vice president, attested by the secretary, and have
665-15 the seal of the district impressed on the bonds.
665-16 (c) Bonds must mature serially or otherwise in not to exceed
665-17 40 years and may be sold at a price and under terms determined by
665-18 the board to be the most advantageous reasonably obtainable,
665-19 provided that the interest cost to the district, calculated by use
665-20 of standard bond interest tables currently in use by insurance
665-21 companies and investment houses, does not exceed six percent per
665-22 year. Within the discretion of the board, bonds may be made
665-23 callable prior to maturity at times and prices prescribed in the
665-24 resolution authorizing the bonds and may be made registrable as to
665-25 principal or as to both principal and interest.
665-26 (d) Bonds may be issued in more than one series and from
666-1 time to time as required for carrying out the purposes of this
666-2 chapter.
666-3 (e) Bonds may be secured by a pledge of all or part of the
666-4 net revenues of the district, of the net revenues of one or more
666-5 contracts made before or after the bonds are issued, or of other
666-6 revenues specified by resolution of the board. A pledge may
666-7 reserve the right, under conditions specified in the pledge, to
666-8 issue additional bonds that will be on a parity with or subordinate
666-9 to the bonds being issued. In this subsection, "net revenues"
666-10 means the gross revenues of the district less the amount necessary
666-11 to pay the cost of maintaining and operating the district and its
666-12 properties. Within the sole discretion of the board, the bonds may
666-13 be secured by the combined revenues of the district's water
666-14 properties and sewage disposal facilities or may be secured by
666-15 revenues from either of those sources.
666-16 (f) For the purposes stated in Subsection (a), the district
666-17 may issue bonds payable from ad valorem taxes to be levied on all
666-18 taxable property in the district or may issue bonds secured by and
666-19 payable from both the taxes and the revenues of the district,
666-20 subject to the conditions prescribed in Sections 274.015(a)-(c).
666-21 If bonds are issued that are payable wholly or partially from ad
666-22 valorem taxes, the board shall levy a tax sufficient to pay the
666-23 bonds and the interest on the bonds as the bonds and interest
666-24 become due. The rate of the tax for any year may be set after
666-25 giving consideration to the money received from the pledged
666-26 revenues available for payment of principal and interest to the
667-1 extent and in the manner permitted by the resolution authorizing
667-2 the issuance of the bonds.
667-3 (g) If bonds payable wholly from revenues are issued, the
667-4 board shall set, and from time to time revise, rates of
667-5 compensation for water sold and services rendered by the district
667-6 that will be sufficient to pay the expense of operating and
667-7 maintaining the facilities of the district, to pay the bonds as
667-8 they mature and the interest as it accrues, and to maintain the
667-9 reserve fund and other funds as provided in the resolution
667-10 authorizing the bonds. If bonds payable partially from revenues
667-11 are issued, the board shall set, and from time to time revise,
667-12 rates of compensation for water sold and services rendered by the
667-13 district that will be sufficient to assure compliance with the
667-14 resolution authorizing the bonds.
667-15 (h) From the proceeds from the sale of the bonds, the
667-16 district may set aside an amount for the payment of interest
667-17 expected to accrue during construction and for a reserve interest
667-18 and sinking fund, and such provision may be made in the resolution
667-19 authorizing the bonds. Proceeds from the sale of the bonds may
667-20 also be used for the payment of all expenses necessarily incurred
667-21 in accomplishing the purpose for which the district is created,
667-22 including the expenses of issuing and selling the bonds of creating
667-23 and organizing the district.
667-24 (i) The district may invest all or any part of the proceeds
667-25 of the bonds before and during the period of construction in
667-26 obligations of or in obligations unconditionally guaranteed by the
668-1 United States government.
668-2 (j) In the event of a default or a threatened default in the
668-3 payment of principal of or interest on bonds payable wholly or
668-4 partially from revenues, any court of competent jurisdiction may,
668-5 on petition of the holders of 25 percent of the outstanding bonds
668-6 of the issue in default or threatened with default, appoint a
668-7 receiver with authority to collect and receive all income of the
668-8 district except income from taxes, to employ and discharge agents
668-9 and employees of the district, to take charge of the district's
668-10 funds on hand (except funds received from taxes, unless
668-11 commingled), and to manage the proprietary affairs of the district
668-12 without consent or hindrance by the board. The receiver may also
668-13 be authorized to sell or make contracts for the sale of water or
668-14 renew the contracts with the approval of the court appointing the
668-15 receiver. The court may vest the receiver with other powers and
668-16 duties the court finds necessary for the protection of the holders
668-17 of the bonds.
668-18 Sec. 274.013. REFUNDING BONDS. (a) The district may issue
668-19 refunding bonds for the purpose of refunding any outstanding bonds
668-20 authorized by this chapter and interest on the bonds. The
668-21 refunding bonds may be issued to refund more than one series of
668-22 outstanding bonds and combine the pledges for the outstanding bonds
668-23 for the security of the refunding bonds, and the refunding bonds
668-24 may be secured by other or additional revenues.
668-25 (b) The provisions of this chapter with reference to the
668-26 issuance of other bonds by the district, the approval of the other
669-1 bonds by the attorney general, and the remedies of the holders are
669-2 applicable to refunding bonds. Refunding bonds shall be registered
669-3 by the comptroller on surrender and cancellation of the bonds to be
669-4 refunded, but in lieu of that process, the resolution authorizing
669-5 the issuance of the refunding bonds may provide that the bonds
669-6 shall be sold and the proceeds of the sale deposited in the bank
669-7 where the original bonds are payable, in which case the refunding
669-8 bonds may be issued in an amount sufficient to pay the interest on
669-9 the original bonds to their option date or maturity date, and the
669-10 comptroller shall register the refunding bonds without concurrent
669-11 surrender and cancellation of the original bonds.
669-12 Sec. 274.014. TRUST INDENTURE. Bonds, including refunding
669-13 bonds, authorized by this chapter that are not payable wholly from
669-14 ad valorem taxes may be additionally secured by a trust indenture
669-15 under which the trustee may be a bank with trust powers located
669-16 either within or outside the state. The bonds may, in the
669-17 discretion of the board, be additionally secured by a deed of trust
669-18 lien on physical properties of the district and all franchises,
669-19 easements, water rights and appropriation permits, leases, and
669-20 contracts and all rights appurtenant to the properties, vesting in
669-21 the trustee power to sell the properties for payment of the
669-22 indebtedness, power to operate the properties, and all other powers
669-23 and authority for the further security of the bonds.
669-24 (b) The trust indenture, regardless of the existence of a
669-25 deed of trust lien, may contain any provisions prescribed by the
669-26 board for the security of the bonds and the preservation of the
670-1 trust estate and may make provision for amendment or modification
670-2 of the trust indenture and the issuance of bonds to replace lost or
670-3 mutilated bonds.
670-4 (c) A purchaser under a sale under a deed of trust lien,
670-5 where one is given, shall be the owner of the properties,
670-6 facilities, and rights so purchased and shall have the right to
670-7 maintain and operate the properties, facilities, and rights.
670-8 Sec. 274.015. BOND ELECTIONS. (a) Bonds payable wholly or
670-9 partially from ad valorem taxes, except refunding bonds, may not be
670-10 issued unless authorized by an election at which only the qualified
670-11 voters who reside in the district may participate and a majority of
670-12 the votes cast at the election is in favor of the issuance of the
670-13 bonds.
670-14 (b) Before calling an election for the issuance of bonds
670-15 secured either wholly or partially by a pledge of ad valorem taxes,
670-16 the board shall publish, in the manner prescribed by this section,
670-17 a summary of the improvements to be financed with the proceeds of
670-18 bonds to be issued. If the district has not provided facilities
670-19 for delivering water to any city within the district and the
670-20 summary of improvements does not include provision for delivering
670-21 water to the city, the district shall publish in the city notice of
670-22 its intention, on a date specified in the notice, to call an
670-23 election involving the issuance of bonds, wholly or partly secured
670-24 by a pledge of ad valorem taxes. The notice must contain the
670-25 summary of the proposed improvements. The notice must be published
670-26 at least once in a newspaper published or having general
671-1 circulation in the city. The date of publication must be at least
671-2 14 days before the date on which the district intends to adopt a
671-3 resolution ordering the election. If no newspaper is published in
671-4 the city, notice shall be given by posting a copy of the notice of
671-5 intention at three public places in the city for at least 14 days
671-6 before the election is to be ordered. The district shall also mail
671-7 a copy of the notice to the mayor of the city at least 14 days
671-8 before the date on which the election is to be ordered. Before the
671-9 date of the election, the governing body of the city notified may
671-10 adopt a resolution stating that the district has not provided
671-11 facilities for delivering water to the city and does not propose to
671-12 provide the facilities necessary for that purpose with the proceeds
671-13 from the proposed tax-supported bonds on a reasonable cost basis;
671-14 stating that eliminating the city from the district for all
671-15 purposes is in the best interest for the people of the city; and
671-16 seeking withdrawal from the district. If, before the date
671-17 designated for the election, a certified copy of the resolution is
671-18 delivered to the district and to the commission, the district may
671-19 not proceed with the calling of an election until the commission
671-20 has acted finally on the request for withdrawal from the district.
671-21 (c) On receipt of a certified copy of a resolution from a
671-22 city requesting withdrawal from the district, the commission shall
671-23 set a date for a hearing on the request, giving written notice of
671-24 the hearing to the city and to the district. If at the hearing the
671-25 commission finds that no facilities have been provided to the city
671-26 and that none will be provided from proceeds of the proposed
672-1 tax-supported bond issue for the delivery of water to the city on a
672-2 reasonable cost basis, the commission shall enter an order
672-3 eliminating the city from the district. In lieu of a hearing the
672-4 district may file with the commission a consent to the elimination
672-5 of the territory. However, if the commission finds that the
672-6 facilities are available or will be provided from the proceeds of
672-7 the proposed bonds on a reasonable cost basis, the commission shall
672-8 enter an order denying the request for withdrawal. After the
672-9 commission enters the order, the district may order an election
672-10 with the city either eliminated or retained in the boundaries of
672-11 the district as prescribed in the order.
672-12 (d) An election for the issuance of bonds payable wholly or
672-13 partially from ad valorem taxes may be called by the board without
672-14 a petition. The resolution calling the election shall specify the
672-15 time and location of the election, the purpose for which the bonds
672-16 are to be issued, the maximum amount of the bonds, the maximum
672-17 maturity of the bonds, the form of the ballot, and the presiding
672-18 judge for each voting place. The presiding judge serving at each
672-19 voting place shall appoint one assistant judge and at least two
672-20 clerks to assist in holding the election. Notice of the election
672-21 shall be given by publishing a substantial copy of the resolution
672-22 in one newspaper published in each city contained in the district
672-23 for two consecutive weeks. The first publication must be at least
672-24 21 days prior to the election. If no newspaper is published in a
672-25 city, notice shall be given by posting a copy of the resolution in
672-26 three public places.
673-1 (e) The returns of the election shall be made to and
673-2 canvassed by the board.
673-3 (f) The general laws relating to elections apply to
673-4 elections held under this section except as otherwise provided by
673-5 this chapter.
673-6 (g) Bonds not payable wholly or partially from ad valorem
673-7 taxes may be issued without an election.
673-8 Sec. 274.016. APPROVAL AND REGISTRATION OF BONDS. After any
673-9 bonds, including refunding bonds, are authorized by the district,
673-10 the bonds and the record relating to their issuance shall be
673-11 submitted to the attorney general for examination as to the
673-12 validity of the bonds. If the bonds recite that they are secured
673-13 by a pledge of the proceeds of a contract previously made between
673-14 the district and a city or other governmental agency or district, a
673-15 copy of the contract and the proceedings of the city or other
673-16 governmental agency or district authorizing the contract shall also
673-17 be submitted to the attorney general. If the bonds have been
673-18 authorized and the contracts have been made in accordance with the
673-19 constitution and laws of the state, the attorney general shall
673-20 approve the bonds, and the contracts and the bonds shall then be
673-21 registered by the comptroller. After the approval and
673-22 registration, the bonds and the contracts, if any, are valid and
673-23 binding and are incontestable for any cause.
673-24 Sec. 274.017. WATER SUPPLY CONTRACTS. The district may
673-25 contract with cities and others for the purpose of supplying water
673-26 to them. The district may also contract with a city for the rental
674-1 or leasing of, or for the operation of, the water production, water
674-2 supply, or water filtration or purification and the water supply
674-3 facilities of the city for such consideration as the district and
674-4 the city may agree. The contract may be on the terms and for the
674-5 time as the parties may agree, and the contract may provide that it
674-6 shall continue in effect until bonds specified in the contract and
674-7 refunding bonds issued in lieu of the bonds are paid.
674-8 Sec. 274.018. DISTRICT DEPOSITORY. (a) The board shall
674-9 designate one or more banks within the district to serve as
674-10 depository or depositories for the funds of the district. All
674-11 funds of the district shall be deposited in the depository bank or
674-12 banks, except that funds pledged to pay bonds may be deposited with
674-13 the trustee bank named in the trust agreement and except that funds
674-14 shall be remitted to the bank of payment for the payment of
674-15 principal of and interest on bonds. To the extent that funds in
674-16 the depository banks and the trustee bank are not insured by the
674-17 Federal Deposit Insurance Corporation, the funds shall be secured
674-18 in the manner provided by law for the security of county funds, or
674-19 the resolution or trust agreement, or both, securing the bonds may
674-20 require that all such funds be secured by obligations of or
674-21 obligations unconditionally guaranteed by the United States
674-22 government.
674-23 (b) Before designating a depository bank or banks, the board
674-24 shall issue a notice stating the time and place the board will meet
674-25 for such purpose and inviting the banks in the district to submit
674-26 applications to be designated depositories. The notice must be
675-1 published one time in a newspaper or newspapers published in the
675-2 district and specified by the board.
675-3 (c) At the time stated in the notice of the meeting, the
675-4 board shall consider the applications and the management and
675-5 condition of the banks filing the applications and shall designate
675-6 as depositories the bank or banks that offer the most favorable
675-7 terms and conditions for the handling of the funds of the district
675-8 and that the board finds have proper management and are in
675-9 condition to warrant handling of district funds. Membership on the
675-10 board of an officer or director of a bank shall not disqualify the
675-11 bank from being designated as depository.
675-12 (d) If no applications are received by the time stated in
675-13 the notice of the meeting, the board shall designate a bank or
675-14 banks within or outside the district on the terms and conditions
675-15 the board determines advantageous to the district.
675-16 (e) The term of service for depositories shall be prescribed
675-17 by the board.
675-18 Sec. 274.019. WATER APPROPRIATION PERMITS; WATER SUPPLY
675-19 CONTRACTS. The district may acquire water appropriation permits
675-20 directly from the commission or from owners of permits. The
675-21 district may also purchase water or a water supply from any person,
675-22 firm, corporation, or public agency or from the United States
675-23 government or any of its agencies. The district may, within the
675-24 discretion of its board, contract with one or more large users of
675-25 water to acquire a water supply on an agreed allocation of storage
675-26 space between the district and the user, or the district may
676-1 contract independently for the district's water supply.
676-2 Sec. 274.020. BONDS ELIGIBLE FOR INVESTMENT AND SECURITY OF
676-3 DEPOSITS. (a) All bonds of the district are legal and authorized
676-4 investments for banks, savings banks, trust companies, building and
676-5 loan associations, savings and loan associations, insurance
676-6 companies, fiduciaries, trustees, and guardians and for the sinking
676-7 funds of cities, towns, villages, counties, school districts, or
676-8 other political corporations or subdivisions of the state.
676-9 (b) District bonds are eligible to secure the deposit of all
676-10 public funds of the state and of cities, towns, villages, counties,
676-11 school districts, or other political corporations or subdivisions
676-12 of the state. The bonds shall be lawful and sufficient security
676-13 for such deposits to the extent of the value of the bonds when
676-14 accompanied by all unmatured coupons.
676-15 Sec. 274.021. EXEMPTION FROM TAXATION. The accomplishment
676-16 of the purposes stated in this chapter are for the benefit of the
676-17 people of this state and for the improvement of the properties and
676-18 industries of the state, and the district in carrying out the
676-19 purposes of this chapter will be performing an essential public
676-20 function under the constitution and shall not be required to pay a
676-21 tax or assessment on a project or any part of a project under this
676-22 chapter. The bonds issued under this chapter and the transfer of
676-23 and income from the bonds, including the profits made on the sale
676-24 of the bonds, are free from taxation within the state.
676-25 Sec. 274.022. ASSESSMENT, EQUALIZATION, LEVYING, AND
676-26 COLLECTION OF TAXES. (a) The tax rolls of the cities situated
677-1 within the district, and within territory later annexed, are
677-2 adopted and shall constitute the tax rolls of the district until
677-3 assessments and tax rolls are made by the district.
677-4 (b) Before the sale and delivery of district bonds that are
677-5 payable wholly or partially from ad valorem taxes, the board shall
677-6 appoint a tax assessor and collector and a board of equalization
677-7 and cause taxes to be assessed, valuations to be equalized, and tax
677-8 rolls to be prepared. General laws applicable to water control and
677-9 improvement districts with reference to tax assessors and
677-10 collectors, boards of equalization, tax rolls, and the levy and
677-11 collection of taxes and delinquent taxes are applicable to the
677-12 district, except that the board of equalization, which is to be
677-13 appointed each year by the board, shall consist of one member
677-14 residing in each city contained in the district.
677-15 Sec. 274.023. DISTRICT RULES AND REGULATIONS. (a) The
677-16 board may adopt and promulgate all reasonable rules and regulations
677-17 to secure, maintain, and preserve the sanitary condition of all
677-18 water in and to flow into any reservoir owned by the district, or
677-19 which the district may control by contract or otherwise, to prevent
677-20 the waste or the unauthorized use of the water, and to regulate
677-21 residence, hunting, fishing, boating, camping, and all recreational
677-22 and business privileges, along or around any reservoir or any body
677-23 of land or easement owned or controlled by the district. The
677-24 district shall have the same power to enforce the rules and
677-25 regulations as is accorded by law to water control and improvement
677-26 districts, except that the rules and regulations shall be enforced
678-1 by duly constituted peace officers.
678-2 Sec. 274.024. DISTRICT MAP. The board shall file a map and
678-3 plat of the district, clearly showing the boundaries and limits,
678-4 with each of the following offices: two copies with the Texas
678-5 Water Development Board, one copy with the secretary of state, and
678-6 one copy with the county clerk of each county in which any portion
678-7 of the district is located.
678-8 CHAPTER 275. TRINITY RIVER AUTHORITY OF TEXAS
678-9 Sec. 275.001. CREATION. (a) A conservation and reclamation
678-10 district to be known as the "Trinity River Authority of Texas" is
678-11 created. The authority is a governmental agency and a body politic
678-12 and corporate.
678-13 (b) The authority is created under and is essential to
678-14 accomplish the purposes of Section 59, Article XVI, Texas
678-15 Constitution.
678-16 Sec. 275.002. DEFINITIONS. In this chapter:
678-17 (1) "Authority" means the Trinity River Authority of
678-18 Texas.
678-19 (2) "Board" means the board of directors of the
678-20 authority.
678-21 (3) "Director" means a member of the board.
678-22 (4) "Person" means:
678-23 (A) an individual, partnership, corporation,
678-24 public utility, or other private entity; and
678-25 (B) a public agency.
678-26 (5) "Public agency" means an authority, district,
679-1 city, town, other political subdivision, joint board, or other
679-2 public agency created and operating under the laws of this state.
679-3 Sec. 275.003. BOUNDARIES. (a) The authority comprises all
679-4 the territory contained within the counties of Dallas, Tarrant,
679-5 Ellis, Navarro, and Chambers, and the following parts of counties:
679-6 ANDERSON COUNTY
679-7 All of that portion of Anderson County located west of the
679-8 following described line:
679-9 BEGINNING at the point of intersection of the west line of
679-10 the J. Huntingdon Survey with the north line of Anderson County;
679-11 THENCE south along the west lines of the J. Huntingdon Survey
679-12 and the Isaac Lindsey Survey to the southwest corner of said Isaac
679-13 Lindsey Survey;
679-14 THENCE east along the south line of the Isaac Lindsey Survey
679-15 to the northwest corner of the Adolphus D. Lattin Survey;
679-16 THENCE south along the west line of the Adolphus D. Lattin
679-17 Survey to the southwest corner of said Survey;
679-18 THENCE east along the south line of the Adolphus D. Lattin
679-19 Survey to the northwest corner of the John Cantrell Survey;
679-20 THENCE south along the west line of the John Cantrell Survey
679-21 to the southwest corner of said Survey;
679-22 THENCE west along the north line of the Elizabeth Grace
679-23 Survey to the northwest corner of said Survey;
679-24 THENCE south along the west line of the Elizabeth Grace
679-25 Survey to the southwest corner of said Survey;
679-26 THENCE east along the north line of the John N. Fitzgerald
680-1 Survey to the northwest corner of said Survey;
680-2 THENCE south along the west line of the Jesse B. McNealy
680-3 Survey to the southwest corner of said Survey;
680-4 THENCE east along the south line of the Jesse B. McNealy
680-5 Survey to the southeast corner of said Survey;
680-6 THENCE south along the west line of the William Elliott
680-7 Survey to the southwest corner of said Survey;
680-8 THENCE east along the south line of the William Elliott
680-9 Survey to the northwest corner of the Joseph Humphries Survey;
680-10 THENCE south along the west line of the Joseph Humphries
680-11 Survey to the southwest corner of said Survey;
680-12 THENCE west along the north line of the Peter Hinds Survey to
680-13 a northwest corner of said Survey;
680-14 THENCE south along the west line of the Peter Hinds Survey to
680-15 a southeast corner of the Daniel Faris Survey;
680-16 THENCE west along the south line of the Daniel Faris Survey
680-17 to a northwest corner of the Peter Hinds Survey;
680-18 THENCE south along the west line of the Peter Hinds Survey to
680-19 the point of intersection with the north line of the William Kimbro
680-20 Survey;
680-21 THENCE east along the north line of the William Kimbro Survey
680-22 to the northeast corner of said Survey;
680-23 THENCE south along the east line of the William Kimbro Survey
680-24 to the northwest corner of the Samuel G. Wells Survey;
680-25 THENCE southeasterly along the east lines of the D. M.
680-26 McKenzie Survey, the Jacob Snively Survey and the John Arthur
681-1 Survey to the southeast corner of said John Arthur Survey;
681-2 THENCE southeasterly across the William S. McDonald Survey to
681-3 the northeast corner of the Stephen Crist Survey;
681-4 THENCE south along the east line of the Stephen Crist Survey
681-5 to the northwest corner of the Alpheus Wickware Survey;
681-6 THENCE east along the north line of the Alpheus Wickware
681-7 Survey to the northeast corner of said Survey;
681-8 THENCE south along the east line of the Alpheus Wickware
681-9 Survey to the southeast corner of said Survey, being also the point
681-10 of intersection with the north line of the Alfred B. Davis Survey;
681-11 THENCE easterly along the north line of the Alfred B. Davis
681-12 Survey to the northeast corner of said Survey;
681-13 THENCE southerly along the east line of the Alfred B. Davis
681-14 Survey and the William Frost Survey to the southwest corner of the
681-15 Geremiah V. Morgan Survey;
681-16 THENCE east along the south line of the Geremiah V. Morgan
681-17 Survey to the southeast corner of said Survey;
681-18 THENCE south along the east lines of the J. H. Gillespie
681-19 Survey and the W. T. Hamilton Survey to a southeast corner of said
681-20 W. T. Hamilton Survey, being also the point of intersection with
681-21 the north line of the Ely Falkenberg Survey;
681-22 THENCE westerly along the north line of the Ely Falkenberg
681-23 Survey to the northwest corner of said Survey;
681-24 THENCE southerly along the west line of the Ely Falkenberg
681-25 Survey to the southwest corner of said Survey;
681-26 THENCE easterly along the south line of the Ely Falkenberg
682-1 Survey to the point of intersection with the east line of the
682-2 William T. Davis Survey, being also the west line of the David
682-3 Stilts Survey;
682-4 THENCE southerly along the east line of the William T. Davis
682-5 Survey to the southwest corner of the David Stilts Survey;
682-6 THENCE easterly along the north line of the William T. Davis
682-7 survey to the northeast corner of said Survey;
682-8 THENCE southerly along the east line of the William T. Davis
682-9 Survey, being also along the west line of the J. C. Rosson Survey,
682-10 to the point of intersection with the northwest line of the Philip
682-11 Mortin Survey;
682-12 THENCE northeasterly along the northwest line of the Philip
682-13 Mortin Survey to the most northerly corner of said Survey;
682-14 THENCE southeasterly along the northeast line of the Philip
682-15 Mortin Survey to the southeast corner of said Survey;
682-16 THENCE southeasterly along the northeast line of the
682-17 Nathaniel Morgan Survey to the southeast corner of said Survey;
682-18 THENCE south along the west line of the William R. Wilson
682-19 Survey to the southwest corner of said Survey;
682-20 THENCE southwesterly along the northwest line of the James
682-21 Hunter Survey to the most westerly corner of said Survey;
682-22 THENCE southeasterly along the southwest lines of the James
682-23 Hunter Survey and the P. M. Lamerson Survey to the southwest corner
682-24 of said P. M. Lamerson Survey;
682-25 THENCE west along the north line of the John Parker Survey to
682-26 the northwest corner of said Survey;
683-1 THENCE south along the west line of the John Parker Survey to
683-2 the southeast corner of the Daniel Kennedy Survey;
683-3 THENCE east along the north line of the Eli Chaffin Survey to
683-4 the northeast corner of said Survey;
683-5 THENCE south along the east line of the Eli Chaffin Survey to
683-6 the point of intersection with the south line of Anderson County.
683-7 FREESTONE COUNTY
683-8 All of that portion of Freestone County located northeast of
683-9 the following described line:
683-10 BEGINNING at the point of intersection of the south line of
683-11 the S. Garrison Survey with the southwest line of Freestone County;
683-12 THENCE east along the south line of the S. Garrison Survey to
683-13 the southeast corner of said Survey;
683-14 THENCE north along the east line of the S. Garrison Survey to
683-15 the southwest corner of the William T. Gamble Survey;
683-16 THENCE east along the north line of the M. R. Alsron Survey
683-17 to the northeast corner of said Survey;
683-18 THENCE south along the east line of the M. R. Alsron Survey
683-19 to the northwest corner of the William Whitley Survey;
683-20 THENCE east along the north line of the William Whitley
683-21 Survey to the northeast corner of said Survey;
683-22 THENCE south along the east line of the William Whitley
683-23 Survey to the southeast corner of said Survey;
683-24 THENCE east across the Maria de Cantun Survey and along the
683-25 north line of the S. W. Lamar Survey to the northeast corner of the
683-26 S. W. Lamar Survey;
684-1 THENCE south along the east line of the S. W. Lamar Survey to
684-2 the northwest corner of the W. Carter Survey;
684-3 THENCE east along the north line of the W. Carter Survey to
684-4 the northeast corner of said Survey;
684-5 THENCE south along the east line of the W. Carter Survey to
684-6 the southwest corner of the J. H. Webb Survey;
684-7 THENCE east along the south line of the J. H. Webb Survey to
684-8 the southeast corner of said Survey;
684-9 THENCE south along the west line of the R. A. Nelson Survey
684-10 to the southwest corner of said Survey;
684-11 THENCE east along the south line of the R. A. Nelson Survey
684-12 to the northwest corner of the T. H. Davis Survey;
684-13 THENCE south along the west line of the T. H. Davis Survey to
684-14 the southwest corner of said Survey;
684-15 THENCE east along the south line of the T. H. Davis Survey to
684-16 the northeast corner of the Caleb Moul Survey;
684-17 THENCE south along the west line of the J. Langston Survey to
684-18 the southwest corner of said Survey;
684-19 THENCE east along the south line of the J. Langston Survey to
684-20 the southeast corner of said Survey;
684-21 THENCE south along the west line of the J. Graham Survey to
684-22 the southwest corner of said Survey;
684-23 THENCE east along the south line of the J. Graham Survey to
684-24 the northeast corner of the Thomas P. Shapard Survey;
684-25 THENCE southeasterly along the northeast line of the Thomas
684-26 P. Shapard Survey and the Francis O'Neal Survey to the point of
685-1 intersection with the northwest line of the James Strickland
685-2 Survey;
685-3 THENCE northeasterly along the northwest line of the James
685-4 Strickland Survey to the most northerly corner of said Survey;
685-5 THENCE southeasterly along the southwest lines of the R.
685-6 Lawson, John Lawrence, William H. Hickman Surveys to the southwest
685-7 corner of the William H. Hickman Survey, being also the southeast
685-8 corner of the James Moffitt Survey;
685-9 THENCE southwesterly along the northwest line of the John R.
685-10 Jennings Survey to the northwest corner of said Survey;
685-11 THENCE southeasterly along the southwest line of the John R.
685-12 Jennings Survey to a southeast corner of the L. J. Parker Survey;
685-13 THENCE southerly across the David Bullock Survey to the most
685-14 southerly corner of said Survey;
685-15 THENCE southeasterly along the northeast lines of the N. Peck
685-16 Survey and the G. Diaz Survey to the southeast corner of the G.
685-17 Diaz Survey, being also the point of intersection with the
685-18 southeast line of Freestone County.
685-19 HENDERSON COUNTY
685-20 All of that portion of Henderson County located West of State
685-21 Highway 19.
685-22 HOUSTON COUNTY
685-23 All of that portion of Houston County located west of the
685-24 following described lines:
685-25 BEGINNING at the point of intersection of the east line of
685-26 the Eli Chaffin Survey with the north line of Houston County;
686-1 THENCE south along the east line of the Eli Chaffin Survey to
686-2 the southwest corner of the John Parker Survey;
686-3 THENCE east along the north line of the J. S. Caskey Survey
686-4 to the northeast corner of said Survey;
686-5 THENCE south along the west line of the Z. W. Dillard Survey
686-6 to the southwest corner of said Survey;
686-7 THENCE west along the north line of the Benjamin Parker
686-8 Survey to the northwest corner of said Survey;
686-9 THENCE south along the west line of the Benjamin Parker
686-10 Survey to the southeast corner of the Simon Matthews Survey;
686-11 THENCE east along the north line of the J. J. Whitesides
686-12 Survey to the northeast corner of said Survey;
686-13 THENCE south along the east lines of the J. J. Whitesides
686-14 Survey and the Caleb Wallace Survey to the southeast corner of said
686-15 Caleb Wallace Survey;
686-16 THENCE west along the south line of the Caleb Wallace Survey
686-17 to the point of intersection with the east line of the James W.
686-18 Parker Survey;
686-19 THENCE south along the east line of the James W. Parker
686-20 Survey to the southeast corner of said Survey;
686-21 THENCE east along the north line of the Christiana Breece
686-22 Survey to the northeast corner of said Survey;
686-23 THENCE south along the east line of the Christiana Breece
686-24 Survey to the point of intersection with the north line of the L.
686-25 Carpenter Survey;
686-26 THENCE east along the north line of the L. Carpenter Survey
687-1 to the northeast corner of said Survey;
687-2 THENCE southeasterly along the east line of the L. Carpenter
687-3 Survey to the southeast corner of said Survey;
687-4 THENCE northeasterly along the north line of the Eli Stedman
687-5 Survey to the northeast corner of said Survey;
687-6 THENCE south along the east lines of the Eli Stedman Survey
687-7 and the J. F. Martin Survey to the southwest corner of the William
687-8 Burke Survey;
687-9 THENCE east along the south line of the William Burke Survey
687-10 to the southeast corner of said Survey;
687-11 THENCE south along the west line of the John Ellison Survey
687-12 to the southwest corner of said Survey;
687-13 THENCE east along the north line of the Fred Hemminger Survey
687-14 to the northeast corner of said Survey;
687-15 THENCE south along the west line of the Jacob Cutler Survey
687-16 to the southwest corner of said Survey;
687-17 THENCE east along the south line of the Jacob Cutler Survey
687-18 to the southeast corner of said Survey;
687-19 THENCE south along the west line of the J. C. Skidmore Survey
687-20 to the southwest corner of said Survey;
687-21 THENCE east along the south lines of the J. C. Skidmore
687-22 Survey and the J. W. Willingham Survey to the northwest corner of
687-23 the R. J. Weisinger Survey;
687-24 THENCE south along the west line of the R. J. Weisinger
687-25 Survey to the southwest corner of said Survey;
687-26 THENCE east along the south line of the R. J. Weisinger
688-1 Survey to the southeast corner of said Survey;
688-2 THENCE south along the west line of the M. N. Bates Survey to
688-3 the southwest corner of said Survey;
688-4 THENCE east along the south line of the M. N. Bates Survey to
688-5 the northwest corner of the Philip R. Hefley Survey;
688-6 THENCE south along the west line of the Philip R. Hefley
688-7 Survey to the southwest corner of said Survey;
688-8 THENCE east along the north line of the Joel Young Survey to
688-9 the northeast corner of said Survey;
688-10 THENCE south along the west line of the H. Durst, Jr. Survey
688-11 to the southwest corner of said Survey;
688-12 THENCE east along the south lines of the H. Durst, Jr.
688-13 Survey, the J. D. Dickey Survey and the W. T. Dickey Survey to the
688-14 southeast corner of said W. T. Dickey Survey;
688-15 THENCE south along the west lines of the George Grounds
688-16 Survey and the John F. Allen Survey to the point of intersection
688-17 with the north line of the John M. Box Survey;
688-18 THENCE east along the north line of the John M. Box Survey to
688-19 the northeast corner of said Survey;
688-20 THENCE south along the east line of the John M. Box Survey to
688-21 the northwest corner of the J. E. Allen Survey;
688-22 THENCE east along the north line of the J. E. Allen Survey to
688-23 the northeast corner of said Survey, being the point of
688-24 intersection with the southwest line of the John McCarty Survey;
688-25 THENCE southeasterly along the southwest line of the John
688-26 McCarty Survey to the most southerly corner of said Survey;
689-1 THENCE northeasterly along the southeast line of the John
689-2 McCarty Survey to the most northerly corner of the Benjamin S. Heam
689-3 Survey;
689-4 THENCE southeasterly along the northeast line of the Benjamin
689-5 S. Heam Survey to the most easterly corner of said Survey;
689-6 THENCE southwesterly along the southeast line of the Benjamin
689-7 S. Heam Survey to the most westerly corner of the William Adams
689-8 Survey;
689-9 THENCE southeasterly along the southwest line of the William
689-10 Adams Survey to the most southerly corner of said Survey;
689-11 THENCE northeasterly along the southeast line of the William
689-12 Adams Survey to the most northerly corner of the E. T. Allen
689-13 Survey, being also the most westerly corner of the S. C. Hiram
689-14 Survey;
689-15 THENCE southeasterly along the northeast line of the E. T.
689-16 Allen Survey to the most easterly corner of said Survey;
689-17 THENCE southwesterly along the northwest line of the Jacob
689-18 Masters, Sr. Survey to the most westerly corner of said Survey;
689-19 THENCE southeasterly along the southwest lines of the Jacob
689-20 Masters, Sr. Survey and the John Gossett Survey to the southwest
689-21 corner of said John Gossett Survey;
689-22 THENCE easterly along the south lines of the John Gossett
689-23 Survey and the Solomon Albright Survey to the northeast corner of
689-24 the William H. Kennedy Survey;
689-25 THENCE south along the east line of the William H. Kennedy
689-26 Survey to the northwest corner of the Luke Bust Survey;
690-1 THENCE east along the north line of the Luke Bust Survey to
690-2 the northeast corner of said Survey;
690-3 THENCE south along the east line of the Luke Bust Survey to
690-4 the southeast corner of said Survey;
690-5 THENCE east along the north line of the James McLane Survey
690-6 to the northeast corner of said Survey;
690-7 THENCE south along the east lines of the James McLane Survey
690-8 and the H. Coulton Survey to the southwest corner of the Garrett
690-9 Allen Survey;
690-10 THENCE east along the north line of the H. Coulton Survey to
690-11 the northeast corner of said Survey;
690-12 THENCE south along the east line of the H. Coulton Survey to
690-13 the southeast corner of said Survey;
690-14 THENCE east along the north line of the J. R. Hancock Survey
690-15 to the northeast corner of said Survey;
690-16 THENCE south along the east line of the J. R. Hancock Survey
690-17 to the southeast corner of said Survey;
690-18 THENCE east along the north line of the Levi Speer Survey to
690-19 the northeast corner of said Survey;
690-20 THENCE south along the east line of the Levi Speer Survey to
690-21 the southeast corner of said Survey;
690-22 THENCE east along the north line of the C. B. Brent Survey to
690-23 the northeast corner of said Survey;
690-24 THENCE south along the east line of the C. B. Brent Survey to
690-25 the southeast corner of said Survey;
690-26 THENCE easterly along the north line of the J. R. Hancock
691-1 Survey to the northeast corner of said Survey;
691-2 THENCE southeasterly along the east line of the J. R. Hancock
691-3 Survey to the southeast corner of said Survey;
691-4 THENCE northeasterly along the northwest line of the C. B.
691-5 Brent Survey to the most northerly corner of said Survey;
691-6 THENCE southeasterly along the northeast line of the C. B.
691-7 Brent Survey to the most easterly corner of said Survey;
691-8 THENCE southwesterly along the southeast line of the C. B.
691-9 Brent Survey to the most southerly corner of said Survey;
691-10 THENCE southeasterly along the northeast line of the J. W.
691-11 Moore Survey to the most easterly corner of said Survey;
691-12 THENCE southwesterly along the southeast line of the J. W.
691-13 Moore Survey to the most southerly corner of said Survey;
691-14 THENCE southeasterly along the southwest line of the Calvin
691-15 C. Robinett Survey to the southwest corner of said Survey, being
691-16 also the southeast corner of the George W. Hallmark Survey.
691-17 THENCE east along the south line of the Calvin C. Robinett
691-18 Survey to the southeast corner of said Survey;
691-19 THENCE north along the east line of the Calvin C. Robinett
691-20 Survey to the southwest corner of the Samuel Harris Survey;
691-21 THENCE east along the south line of the Samuel Harris Survey
691-22 to the northwest corner of the I. & G. N. Railroad Company Survey,
691-23 Abstract No. 583;
691-24 THENCE south along the west line of the I. & G. N. Railroad
691-25 Company Survey, Abstract No. 583, to the southwest corner of said
691-26 Survey;
692-1 THENCE east along the south line of the I. & G. N. Railroad
692-2 Company Survey, Abstract No. 583, to the northwest corner of the I.
692-3 & G. N. Railroad Company Survey, Abstract No. 584;
692-4 THENCE south along the west line of the I. & G. N. Railroad
692-5 Company Survey, Abstract No. 584, to the southwest corner of said
692-6 Survey, being also the point of intersection with the north line of
692-7 the Peter Tumlinson Survey;
692-8 THENCE easterly along the north line of the Peter Tumlinson
692-9 Survey to the northeast corner of said Survey;
692-10 THENCE southerly along the east line of the Peter Tumlinson
692-11 Survey to the southeast corner of said Survey;
692-12 THENCE westerly along the south line of the Peter Tumlinson
692-13 Survey to the northeast corner of the Jacob Perkins Survey;
692-14 THENCE southerly along the west line of the B. B. B. & C.
692-15 Railroad Company Survey to the southwest corner of said Survey;
692-16 THENCE easterly along the south line of the B. B. B. & C.
692-17 Railroad Company Survey to the west corner of the H. Harris Survey,
692-18 being also the northwest corner of the Sam James Survey;
692-19 THENCE southerly along the west lines of the Sam James Survey
692-20 and the William Ashworth Survey to the southwest corner of said
692-21 William Ashworth Survey;
692-22 THENCE easterly along the south line of the William Ashworth
692-23 Survey to the northwest corner of the W. G. Sterling Survey;
692-24 THENCE southerly along the west line of the W. G. Sterling
692-25 Survey to the point of intersection with the north line of the John
692-26 Watts Survey;
693-1 THENCE easterly along the north line of the John Watts Survey
693-2 to the northeast corner of said Survey;
693-3 THENCE southerly along the east line of the John Watts Survey
693-4 to the southeast corner of said Survey;
693-5 THENCE easterly along the south line of the W. G. Sterling
693-6 Survey to the point of intersection with the southeast line of
693-7 Houston County.
693-8 KAUFMAN COUNTY
693-9 All of that portion of Kaufman County located southwest of
693-10 the following described line:
693-11 BEGINNING at the point of intersection of the northwest line
693-12 of the Elisha Turner Survey, Abstract No. 529, with the north line
693-13 of Kaufman County;
693-14 THENCE southwest along the northwest line of the Elisha
693-15 Turner Survey, Abstract No. 529, to the west corner of said Survey;
693-16 THENCE southeast along the southwest line of the Elisha
693-17 Turner Survey, Abstract No. 529, to the south corner of said
693-18 Survey;
693-19 THENCE northeast along the southeast line of the Elisha
693-20 Turner Survey, Abstract No. 529, to the west corner of the Thomas
693-21 Hunt Survey;
693-22 THENCE southeast along the southwest line of the Thomas Hunt
693-23 Survey to the south corner of said Survey;
693-24 THENCE northeast along the southeast lines of the Thomas Hunt
693-25 Survey and the Benjamin Lindsey Survey to the east corner of said
693-26 Benjamin Lindsey Survey;
694-1 THENCE southeast along the northeast lines of the H. H. Greer
694-2 Survey, the George Hiden Survey, the Mrs. Elizabeth Parsons Survey,
694-3 the William Fulcher Survey, and the Juana Escalan Survey to the
694-4 point of intersection with the east line of Kaufman County.
694-5 LEON COUNTY
694-6 All that portion of Leon County located east of the following
694-7 described line:
694-8 BEGINNING at the point of intersection of the northeast line
694-9 of the Gertrudis Diaz Survey with the northwest line of Leon
694-10 County;
694-11 THENCE southeast along the northeast line of the Gertrudis
694-12 Diaz Survey to the most easterly corner of said Survey;
694-13 THENCE southwest along the southeast line of the Gertrudis
694-14 Diaz Survey to the most southerly corner of said Survey;
694-15 THENCE southeast along the northeast line of the William F.
694-16 Gray Survey to the most easterly corner of said Survey;
694-17 THENCE southwest along the northwest line of the H. R.
694-18 Cartmell Survey to the most westerly corner of said Survey;
694-19 THENCE southeast along the southwest line of the H. R.
694-20 Cartmell Survey to the most southerly corner of said Survey;
694-21 THENCE northeast along the northwest line of the James W.
694-22 Dodson Survey to the most northerly corner of said Survey;
694-23 THENCE southeast along the northeast line of the James W.
694-24 Dodson Survey to the most easterly corner of said Survey;
694-25 THENCE southwest along the southeast line of the James W.
694-26 Dodson Survey to the most northerly corner of the C. Haynie Survey;
695-1 THENCE southeast along the northeast line of the C. Haynie
695-2 Survey to the most easterly corner of said Survey;
695-3 THENCE northeast along the northwest line of the John L. Wall
695-4 Survey to the most northerly corner of said Survey;
695-5 THENCE southeast along the southwest lines of the James D.
695-6 McBeath Survey, the H. Porter Survey, the Benjamin Green Survey,
695-7 and the William H. Barritt Survey to the most southerly corner of
695-8 the said William H. Barritt Survey;
695-9 THENCE southeast along the southwest line of the Noah Guinn
695-10 Survey to the most southerly corner of said Survey;
695-11 THENCE southwest along the northwest line of the London
695-12 Webster Survey to the most westerly corner of said Survey;
695-13 THENCE southeast along the southwest line of the London
695-14 Webster Survey to the most northerly corner of the M. Williams
695-15 Survey;
695-16 THENCE southwest along the northwest line of the M. Williams
695-17 Survey to the most westerly corner of said Survey;
695-18 THENCE southeast along the northeast line of the John Fuller
695-19 Survey to the most easterly corner of said Survey;
695-20 THENCE southwest along the southeast line of the John Fuller
695-21 Survey to the most southerly corner of said Survey;
695-22 THENCE southeast along the northeast line of the George E.
695-23 Dwight Survey to the most easterly corner of said Survey;
695-24 THENCE southeast along the southwest line of the George E.
695-25 Dwight Survey to the point of intersection with the southwest line
695-26 of the William Bolton Survey;
696-1 THENCE southeast along the southwest line of the William
696-2 Bolton Survey to the most southerly corner of said Survey;
696-3 THENCE southwest along the northwest line of the Elisha H.
696-4 Whitton Survey to the most westerly corner of said Survey;
696-5 THENCE southeast along the southwest line of the Elisha H.
696-6 Whitton Survey to the most southerly corner of said Survey;
696-7 THENCE southwest along the northwest line of the Samuel
696-8 Philips Survey to the most westerly corner of said Survey;
696-9 THENCE southeast along the southwest line of the Samuel
696-10 Philips Survey to the most southerly corner of said Survey;
696-11 THENCE southwest along the northwest lines of the A. M.
696-12 Halmark Survey, the Charles Jones Survey, and the John W. Hallett
696-13 Survey to the most westerly corner of said John W. Hallett Survey;
696-14 THENCE southeast along the southwest line of the John W.
696-15 Hallett Survey to the point of intersection with the northwest line
696-16 of the C. Ballard Survey;
696-17 THENCE southwest along the northwest line of the C. Ballard
696-18 Survey to the most westerly corner of said Survey;
696-19 THENCE southeast along the southwest line of the C. Ballard
696-20 Survey to the most southerly corner of said Survey;
696-21 THENCE southwest along the northwest line of the Milton
696-22 Fuller Survey to the most westerly corner of said Survey;
696-23 THENCE southeast along the southwest line of the Milton
696-24 Fuller Survey to the point of intersection with the northwest line
696-25 of the William H. Fletcher Survey;
696-26 THENCE southwest along the northwest line of the William H.
697-1 Fletcher Survey to the most westerly corner of said Survey;
697-2 THENCE southeast along the southwest line of the William H.
697-3 Fletcher Survey to the most southerly corner of said Survey;
697-4 THENCE northeast along the southeast line of the William H.
697-5 Fletcher Survey to the point of intersection with the northeast
697-6 line of the James Keeling Survey;
697-7 THENCE southeast along the northeast line of the James
697-8 Keeling Survey to the most easterly corner of said Survey;
697-9 THENCE southwest along the northwest lines of the J. W.
697-10 Waltman Survey and the L. H. Simms Survey to the most westerly
697-11 corner of said L. H. Simms Survey;
697-12 THENCE southeast along the southwest line of the L. H. Simms
697-13 Survey to the most southerly corner of said Survey;
697-14 THENCE southwest along the northwest line of the Warrick
697-15 Martin Survey to the most westerly corner of said Survey;
697-16 THENCE southeast along the southwest lines of the Warrick
697-17 Martin Survey and the Washington Beaty Survey to the most southerly
697-18 corner of said Washington Beaty Survey;
697-19 THENCE southwest along the northwest line of the John
697-20 Schritchfield Survey to the northwest corner of said Survey;
697-21 THENCE southeast along the southwest line of the John
697-22 Schritchfield Survey to a corner, being also the most easterly
697-23 corner of the Jose Maria Viesca XI Leagues;
697-24 THENCE southwest along the northwest line of the John
697-25 Schritchfield Survey to the point of intersection with the
697-26 northeast line of the James M. Robinson Survey;
698-1 THENCE southeast along the southwest line of the John
698-2 Schritchfield Survey to the most southerly corner of said Survey;
698-3 THENCE northeast along the northwest line of the Robert
698-4 Ragers Survey to the most northerly corner of said Survey;
698-5 THENCE southeast along the northeast line of the Robert
698-6 Ragers Survey to the point of intersection with the southeast line
698-7 of Leon County.
698-8 MADISON COUNTY
698-9 All of that portion of Madison County located east of the
698-10 following described line:
698-11 BEGINNING at the point of intersection of the west line of
698-12 the John Woodruff Survey with the northwest line of Madison County;
698-13 THENCE south along the west line of the John Woodruff Survey
698-14 to the southwest corner of said Survey;
698-15 THENCE east along the south line of the John Woodruff Survey
698-16 to the northwest corner of the William Thompson Survey;
698-17 THENCE south along the west line of the William Thompson
698-18 Survey to the southwest corner of said Survey;
698-19 THENCE east along the south line of the William Thompson
698-20 Survey to the southeast corner of said Survey;
698-21 THENCE south along the east lines of the Champion Blythe
698-22 Survey, the Peter Fullenwider Survey, the L. M. H. Washington
698-23 Survey, the John T. Vaughan Survey and the John Payne Survey to the
698-24 point of intersection with the south line of Madison County.
698-25 POLK COUNTY
698-26 All of that portion of Polk County located west of the
699-1 following described line:
699-2 BEGINNING at the point of intersection of the south line of
699-3 the J. V. Bradley Survey, being also the north line of the Houston
699-4 County School Land Survey, with the northwest line of Polk County;
699-5 THENCE east along the north line of the Houston County School
699-6 Land Survey, Abstract No. 272, to the northeast corner of said
699-7 Survey;
699-8 THENCE south along the east line of the Houston County School
699-9 Land Survey to the southwest corner of the Houston County School
699-10 Land Survey, Abstract No. 271, being also the point of intersection
699-11 with the north line of the Trinity County School Land Survey;
699-12 THENCE east along the north lines of the Trinity County
699-13 School Land Survey, the J. F. White Survey, the J. A. Bahr Survey,
699-14 and the J. Poitevent Survey to the northeast corner of said J.
699-15 Poitevent Survey;
699-16 THENCE south along the east line of the J. Poitevent Survey
699-17 to the southwest corner of the Shepherd Brazelton Survey;
699-18 THENCE east along the south lines of the Shepherd Brazelton
699-19 Survey, the Wm. H. Huggins Survey, and the Abraham Vannordstrand
699-20 Survey to the southeast corner of said Abraham Vannordstrand
699-21 Survey;
699-22 THENCE south along the east line of the Chas. Bender Survey
699-23 to the southwest corner of the J. Poitevent Survey;
699-24 THENCE east along the south line of the J. Poitevent Survey
699-25 to the point of intersection with the west line of the Joseph P.
699-26 Follett Survey;
700-1 THENCE south along the west line of the Joseph P. Follett
700-2 Survey to the southwest corner of said Survey;
700-3 THENCE east along the north line of the John Watts Survey to
700-4 the northeast corner of said Survey;
700-5 THENCE north along the west line of the John Dickerson Survey
700-6 to the northwest corner of said Survey;
700-7 THENCE east along the north line of the John Dickerson Survey
700-8 to the northeast corner of said Survey;
700-9 THENCE south along the east line of the John Dickerson Survey
700-10 to the southeast corner of said Survey;
700-11 THENCE west along the south line of the John Dickerson Survey
700-12 to the northwest corner of the Alex Johnson Survey;
700-13 THENCE south along the west line of the Alex Johnson Survey
700-14 to the southwest corner of said Survey;
700-15 THENCE east along the south line of the Alex Johnson Survey
700-16 to the northwest corner of the M. J. Taylor Survey;
700-17 THENCE south along the west lines of the M. J. Taylor Survey,
700-18 the John McSpaden Survey, Abstract No. 881, and the John McSpaden
700-19 Survey, Abstract No. 817, and the H. & T. C. R. R. Co. Survey,
700-20 Abstract No. 315 to the southwest corner of said H. & T. C. R. R.
700-21 Co. Survey;
700-22 THENCE east along the south line of the H. & T. C. R. R. Co.
700-23 Survey, Abstract No. 315, to the point of intersection with the
700-24 west line of the D. B. Harris Survey;
700-25 THENCE south along the east line of the H. & T. C. R. R. Co.
700-26 Survey, Abstract No. 314, to the point of intersection with the
701-1 northeast line of the Wm. P. Sansom Survey;
701-2 THENCE northwest along the northeast line of the Wm. P.
701-3 Sansom Survey to the most northerly corner of said Survey;
701-4 THENCE southwest along the northwest line of the Wm. P.
701-5 Sansom Survey to the point of intersection with the east line of
701-6 the N. D. Labadie Survey;
701-7 THENCE south along the east line of the N. D. Labadie Survey
701-8 to the point of intersection with the northwest line of the Iradel
701-9 D. Thomas Survey;
701-10 THENCE southwest along the northwest line of the Iradel D.
701-11 Thomas Survey to the most westerly corner of said Survey;
701-12 THENCE southeast along the southwest line of the Iradel D.
701-13 Thomas Survey to the most southerly corner of said Survey;
701-14 THENCE southwest along the northwest line of the Morris
701-15 Tanner Survey to the most westerly corner of said Survey;
701-16 THENCE southeast along the southwest line of the Morris
701-17 Tanner Survey to the most southerly corner of said Survey;
701-18 THENCE southwest along the northwest line of the Henry H.
701-19 Cone Survey to the most westerly corner of said Survey;
701-20 THENCE southeast along the southwest line of the Henry H.
701-21 Cone Survey to the point of intersection with the northwest line of
701-22 the Jeremiah Chessen Survey;
701-23 THENCE southwest along the northwest line of the Jeremiah
701-24 Chessen Survey to the most westerly corner of said Survey;
701-25 THENCE southeast along the southwest line of the Jeremiah
701-26 Chessen Survey to the most northerly corner of the A. D. Bateman
702-1 Survey;
702-2 THENCE southwest along the northwest line of the A. D.
702-3 Bateman Survey to the most westerly corner of said Survey;
702-4 THENCE southeast along the southwest line of the A. D.
702-5 Bateman Survey to the most southerly corner of said Survey;
702-6 THENCE southwest along the northwest line of the James G.
702-7 Darden Survey to the point of intersection with the northeast line
702-8 of the Joseph B. Jones Survey;
702-9 THENCE southeast along the southwest line of the James D.
702-10 Darden Survey to the point of intersection with the northwest line
702-11 of the Juan Falcon Survey;
702-12 THENCE southwest along the northwest line of the Juan Falcon
702-13 Survey to the most westerly corner of said Survey;
702-14 THENCE southeast along the southwest line of the Juan Falcon
702-15 Survey to the most southerly corner of said Survey;
702-16 THENCE southwest along the northwest line of the H. E. Watson
702-17 Survey to the most westerly corner of said Survey;
702-18 THENCE southeast along the southwest line of the H. E. Watson
702-19 Survey to the point of intersection with the northwest line of the
702-20 James Morgan Survey;
702-21 THENCE northeast along the northwest line of the James Morgan
702-22 Survey to the most northerly corner of said Survey;
702-23 THENCE southeast along the northeast line of the James Morgan
702-24 Survey to the most easterly corner of said Survey;
702-25 THENCE southwest along the southeast line of the James Morgan
702-26 Survey to the point of intersection with the west line of the Henry
703-1 W. Augustin Survey;
703-2 THENCE south along the west line of the Henry W. Augustin
703-3 Survey to the most southerly corner of said Survey;
703-4 THENCE east along the south line of the Henry W. Augustin
703-5 Survey to the point of intersection with the northeast line of the
703-6 J. G. Loving Survey, said point of intersection being also the most
703-7 westerly corner of the A. B. Wildman Survey;
703-8 THENCE southeast along the northeast line of the J. G. Loving
703-9 Survey to the point of intersection with the west line of the A. B.
703-10 Wildman Survey;
703-11 THENCE south along the east line of the J. G. Loving Survey
703-12 to the southeast corner of said Survey;
703-13 THENCE east along the north line of the John V. Williams
703-14 Survey to the northeast corner of said Survey;
703-15 THENCE south along the west lines of the A. B. Wildman
703-16 Survey, the James H. Finley Survey, and the Joseph H. Knapp Survey
703-17 to the southwest corner of said Joseph H. Knapp Survey;
703-18 THENCE east along the south line of the Joseph H. Knapp
703-19 Survey to the northwest corner of the James Stephenson Survey;
703-20 THENCE south along the west line of the James Stephenson
703-21 Survey to the point of intersection with the south line of Polk
703-22 County.
703-23 SAN JACINTO COUNTY
703-24 All of that portion of San Jacinto County located north and
703-25 east of the following described line:
703-26 BEGINNING at the point of intersection of the west line of
704-1 the S. Kirkham Survey, being also the east line of the A. B.
704-2 Rozzell Survey, with the southeast line of San Jacinto County;
704-3 THENCE north along the west line of the S. Kirkham Survey to
704-4 the northwest corner of said Survey;
704-5 THENCE east along the north line of the S. Kirkham Survey to
704-6 the point of intersection with the west line of the Oliver H.
704-7 Williams Survey;
704-8 THENCE north along the east line of the A. B. Rozzell Survey
704-9 to the northeast corner of said Survey;
704-10 THENCE west along the north line of the A. B. Rozzell Survey
704-11 to the southwest corner of the Daniel Dunaho Survey;
704-12 THENCE north along the west line of the Daniel Dunaho Survey
704-13 to the point of intersection with the south line of the H. & T. C.
704-14 RR Co. Survey;
704-15 THENCE west along the south line of the H. & T. C. RR Co.
704-16 Survey to the southwest corner of said Survey;
704-17 THENCE north along the west line of the H. & T. C. RR Co.
704-18 Survey to the northwest corner of said Survey;
704-19 THENCE west along the south line of the Horatio A. Alsbury
704-20 Survey to the southwest corner of said Survey;
704-21 THENCE north along the west line of the Horatio A. Alsbury
704-22 Survey to the northwest corner of said Survey;
704-23 THENCE west along the south line of the John Faulk Survey to
704-24 the southwest corner of said Survey;
704-25 THENCE north along the west line of the John Faulk Survey to
704-26 the point of intersection with the north line of the James Booth
705-1 Survey;
705-2 THENCE west along the north line of the James Booth Survey to
705-3 the southeast corner of the George Taylor Survey;
705-4 THENCE north along the east line of the George Taylor Survey
705-5 to the northeast corner of said Survey;
705-6 THENCE west along the north line of the George Taylor Survey
705-7 to the point of intersection with the southeast line of the Polk
705-8 County School Land Survey;
705-9 THENCE northeast along the southeast line of the Polk County
705-10 School Land Survey to the most easterly corner of said Survey;
705-11 THENCE northwest along the southwest line of the William M.
705-12 White Survey to the most westerly corner of said Survey;
705-13 THENCE northeast along the northwest line of the William M.
705-14 White Survey to the point of intersection with the southwest line
705-15 of the Robert Rankin Survey;
705-16 THENCE northwest along the southwest line of the Robert
705-17 Rankin Survey to the most westerly corner of said Survey;
705-18 THENCE northeast along the northwest line of the Robert
705-19 Rankin Survey to the point of intersection with the southwest line
705-20 of the Drury McGee Survey;
705-21 THENCE northwest along the southwest line of the Drury McGee
705-22 Survey to the most westerly corner of said Survey;
705-23 THENCE northwest across the Mesina Brown Survey to the most
705-24 southerly corner of the Richard Danzey Survey;
705-25 THENCE northwest along the southwest line of the Richard
705-26 Danzey Survey to the point of intersection with the southeast line
706-1 of the Charles Butler Survey;
706-2 THENCE northeast along the southeast line of the Charles
706-3 Butler Survey to the most easterly corner of said Survey;
706-4 THENCE northwest along the northeast line of the Charles
706-5 Butler Survey to the most northerly corner of said Survey;
706-6 THENCE southwest along the northwest line of the Charles
706-7 Butler Survey to the point of intersection with the east line of
706-8 the Polk County School Land Survey, being also the point of
706-9 intersection with the west line of the I. & G. N. RR Company
706-10 Survey;
706-11 THENCE north along the east line of the Polk County School
706-12 Land Survey to the northeast corner of said Survey;
706-13 THENCE west along the north line of the Polk County School
706-14 Land Survey to the point of intersection with the east line of the
706-15 Richard Danzey Survey;
706-16 THENCE north along the east line of the Richard Danzey Survey
706-17 to the northeast corner of said Survey;
706-18 THENCE west along the north line of the Richard Danzey Survey
706-19 to the southeast corner of the T. J. Golightly Survey;
706-20 THENCE north along the east line of the T. J. Golightly
706-21 Survey to the northeast corner of said Survey;
706-22 THENCE west along the north line of the T. J. Golightly
706-23 Survey to the point of intersection with the northeast line of the
706-24 William M. White Survey;
706-25 THENCE northwest along the northeast line of the William M.
706-26 White Survey to the point of intersection with the south line of
707-1 the Ralph McGee Survey;
707-2 THENCE west along the south line of the Ralph McGee Survey to
707-3 the southwest corner of said Survey;
707-4 THENCE north along the west line of the Ralph McGee Survey to
707-5 the northwest corner of said Survey;
707-6 THENCE east along the north line of the Ralph McGee Survey to
707-7 the point of intersection with the west line of the William Morris
707-8 Survey;
707-9 THENCE north along the west line of the William Morris Survey
707-10 to the point of intersection with the south line of the James C.
707-11 Ward Survey;
707-12 THENCE west along the south lines of the James C. Ward Survey
707-13 and the I. & G. N. RR Company Survey to the most southerly corner
707-14 of the I. & G. N. RR Company Survey;
707-15 THENCE north along the west line of the I. & G. N. RR Company
707-16 Survey to an angle point for corner;
707-17 THENCE northwest along the southwest line of the I. & G. N.
707-18 RR Company Survey to an angle point for corner, said angle point
707-19 being also the most northerly corner of the Francisco Mancha
707-20 Survey;
707-21 THENCE north along the west line of the I. & G. N. RR Company
707-22 Survey to the most southerly corner of the Jonathan Stanley Survey;
707-23 THENCE northwest along the southwest lines of the Jonathan
707-24 Stanley Survey and the A. P. Davis Survey to the point of
707-25 intersection with the southeast line of the Robert T. Rucker
707-26 Survey;
708-1 THENCE southwest along the southeast line of the Robert T.
708-2 Rucker Survey to the most southerly corner of said Survey;
708-3 THENCE northwest along the southwest lines of the Robert T.
708-4 Rucker Survey and the Zelpha Sears Survey to the point of
708-5 intersection with the southeast line of the Robert Kilgore Survey;
708-6 THENCE southwest along the southeast line of the Robert
708-7 Kilgore Survey to the most southerly corner of said Survey;
708-8 THENCE northwest along the southwest line of the Robert
708-9 Kilgore Survey to the most westerly corner of said Survey;
708-10 THENCE northeast along the northwest line of the Robert
708-11 Kilgore Survey to the point of intersection with the southwest line
708-12 of the Albert A. Foster Survey;
708-13 THENCE northwest along the southwest line of the Albert A.
708-14 Foster Survey to the most westerly corner of said Survey;
708-15 THENCE northeast along the northwest line of the Albert A.
708-16 Foster Survey to the point of intersection with the southwest line
708-17 of the Roderick Jenkins Survey;
708-18 THENCE northwest along the southwest line of the Roderick
708-19 Jenkins Survey to the point of intersection with the southeast line
708-20 of the Benson Resinhower Survey;
708-21 THENCE southwest along the southeast line of the Benson
708-22 Resinhower Survey to the point of intersection with the west line
708-23 of San Jacinto County.
708-24 TRINITY COUNTY
708-25 All of that portion of Trinity County located southwest of
708-26 the following described line:
709-1 BEGINNING at the point of intersection of the north line of
709-2 the Jose M. Prado Survey with the northwest line of Trinity County;
709-3 THENCE east along the north line of the Jose M. Prado Survey
709-4 to the northeast corner of said Survey;
709-5 THENCE south along the east line of the Jose M. Prado Survey
709-6 to the northwest corner of the J. M. Walker Survey;
709-7 THENCE east along the north line of the J. M. Walker Survey
709-8 to the northeast corner of said Survey;
709-9 THENCE south along the east line of the J. M. Walker Survey
709-10 to the northwest corner of the James M. Tullous Survey;
709-11 THENCE east along the north line of the James M. Tullous
709-12 Survey to the northeast corner of said Survey;
709-13 THENCE south along the east lines of the James M. Tullous
709-14 Survey and the N. E. Morris Survey to the point of intersection
709-15 with the south line of the M. H. Shull Survey;
709-16 THENCE east along the south line of the M. H. Shull Survey to
709-17 the northeast corner of the Christopher Fox Survey;
709-18 THENCE south along the west lines of the R. F. Stokes Survey
709-19 and the Jerry Davis Survey to the point of intersection with the
709-20 north line of the Arthur E. Westall Survey;
709-21 THENCE east along the north line of the Arthur E. Westall
709-22 Survey to the northeast corner of said Survey;
709-23 THENCE south along the east line of the Arthur E. Westall
709-24 Survey to the southeast corner of said Survey;
709-25 THENCE west along the south line of the Arthur E. Westall
709-26 Survey to the point of intersection with the west line of the
710-1 Richard Miller Survey;
710-2 THENCE south along the west lines of the Richard Miller
710-3 Survey and the C. H. Rushing Survey to the southwest corner of said
710-4 C. H. Rushing Survey;
710-5 THENCE southeast along the southwest line of the C. H.
710-6 Rushing Survey to an angle point for a corner;
710-7 THENCE east along the south line of the C. H. Rushing Survey
710-8 to the southeast corner of said Survey;
710-9 THENCE south along the west line of the John Veatch Survey to
710-10 the southwest corner of said Survey;
710-11 THENCE southeast along the southwest line of the John Veatch
710-12 Survey to the point of intersection with the southeast line of the
710-13 James Hanley Survey;
710-14 THENCE northeast along the southeast line of the John Veatch
710-15 Survey to the point of intersection with the southwest line of the
710-16 Maria G. Castro Survey;
710-17 THENCE southeast along the southwest lines of the Maria G.
710-18 Castro Survey and the Ignacio de los Santos Coy Survey to the south
710-19 corner of said Ignacio de los Santos Coy Survey;
710-20 THENCE southwest along the northwest line of the Trinity
710-21 County Survey, Abstract No. 590, to the southwest corner of said
710-22 Survey;
710-23 THENCE east along the north line of the Ebenezer Fraser
710-24 Survey to the northeast corner of said Survey;
710-25 THENCE south along the east line of the Ebenezer Fraser
710-26 Survey to the point of intersection with the south line of the T. &
711-1 S. T. Company Survey;
711-2 THENCE east along the north line of the Felix W. Goff Survey
711-3 to the northeast corner of said Survey;
711-4 THENCE south along the east line of the Felix W. Goff Survey
711-5 to the point of intersection with the north line of the John J.
711-6 West Survey;
711-7 THENCE east along the north line of the John J. West Survey
711-8 to the northeast corner of said Survey;
711-9 THENCE south along the east line of the John J. West Survey
711-10 to the point of intersection with the north line of the J.
711-11 Poitevent Survey, Abstract No. 501;
711-12 THENCE east along the south line of the John D. Long Survey
711-13 to the southeast corner of said Survey;
711-14 THENCE north along the east line of the John D. Long Survey
711-15 to the point of intersection with the south line of the G. W.
711-16 Granbury Survey;
711-17 THENCE east along the south line of the G. W. Granbury Survey
711-18 to the southeast corner of said Survey;
711-19 THENCE south along the east line of the J. Poitevent Survey,
711-20 Abstract No. 501, being also along the west line of the J.
711-21 Poitevent Survey, Abstract No. 500, to angle point for corner;
711-22 THENCE east along the north line of the J. Poitevent Survey,
711-23 Abstract No. 501, being also along the south line of the J.
711-24 Poitevent Survey, Abstract No. 500, to an angle point for corner;
711-25 THENCE south along the east lines of the J. Poitevent Survey,
711-26 Abstract No. 501, and the F. S. Trueblood Survey to the point of
712-1 intersection with the southeast line of Trinity County.
712-2 WALKER COUNTY
712-3 All of that portion of Walker County located north of the
712-4 following described line:
712-5 BEGINNING at the point of intersection of the south line of
712-6 the William S. Parker Survey, Abstract No. 428, with the west line
712-7 of Walker County;
712-8 THENCE east along the south line of the William S. Parker
712-9 Survey, Abstract No. 428, to the southeast corner of said Survey;
712-10 THENCE south along the west line of the Abraham Peck Survey
712-11 to the southwest corner of said Survey;
712-12 THENCE east along the south line of the Abraham Peck Survey
712-13 to the southeast corner of said Survey;
712-14 THENCE north along the east line of the Abraham Peck Survey
712-15 to the point of intersection with the west line of the Manuel
712-16 Herrera Survey;
712-17 THENCE north along the west line of the Manuel Herrera Survey
712-18 to the northwest corner of said Survey;
712-19 THENCE east along the north lines of the Manuel Herrera
712-20 Survey and the Juan Jose Sanchez Survey to the northeast corner of
712-21 said Juan Jose Sanchez Survey;
712-22 THENCE south along the east lines of the Juan Jose Sanchez
712-23 Survey and the John Heyser Survey, Abstract No. 236, to the point
712-24 of intersection with the northwest line of the J. Heyser Survey,
712-25 Abstract No. 238;
712-26 THENCE northeast along the northwest lines of the J. Heyser
713-1 Survey, Abstract No. 238, and the Allen Roberts Survey to the
713-2 northeast corner of said Allen Roberts Survey;
713-3 THENCE south along the east line of the Allen Roberts Survey
713-4 to the point of intersection with the northwest line of the
713-5 Benjamin W. Robinson Survey;
713-6 THENCE northeast along the northwest line of the Benjamin W.
713-7 Robinson Survey to the point of intersection with the northeast
713-8 line of the John Rutledge Survey, being also the southwest corner
713-9 of the Sydney Cole Survey;
713-10 THENCE southeasterly across the Benjamin W. Robinson Survey
713-11 to the northwest corner of the James C. DeWitt Survey;
713-12 THENCE northeast along the northwest line of the James C.
713-13 DeWitt Survey to the northeast corner of said Survey;
713-14 THENCE south along the west line of the Samuel H. Ewing
713-15 Survey to the southwest corner of said Survey;
713-16 THENCE east along the south lines of the Samuel H. Ewing
713-17 Survey, the John Randolph Survey and the William G. Tumlinson
713-18 Survey to the point of intersection with the west line of the Lewis
713-19 Cox Survey;
713-20 THENCE east along the north lien of the Lewis Cox Survey to
713-21 the northeast corner of said Survey;
713-22 THENCE south along the east line of the Lewis Cox Survey to a
713-23 point for corner;
713-24 THENCE east along the north line of the Lewis Cox Survey to
713-25 the point of intersection with the northwest line of the Peter
713-26 Tomlinson Survey;
714-1 THENCE northeast along the northwest line of the Peter
714-2 Tomlinson Survey to the point of intersection with the west line of
714-3 the John W. Adams Survey;
714-4 THENCE north along the west line of the John W. Adams Survey
714-5 to the northwest corner of said Survey;
714-6 THENCE east along the north lines of the John W. Adams
714-7 Survey, the M. Johnson Survey, the Elihu Davids Survey and the
714-8 Thomas Gibbs Survey to the southeast corner of the Pleasant Gray
714-9 Survey;
714-10 THENCE north along the west line of the Thomas Gibbs Survey
714-11 to the northwest corner of said Survey;
714-12 THENCE east along the north line of the Thomas Gibbs Survey
714-13 to the northeast corner of said Survey;
714-14 THENCE north along the west line of the Harvey Gray Survey to
714-15 the northwest corner of said Survey;
714-16 THENCE east along the north line of the Harvey Gray Survey to
714-17 the northeast corner of said Survey;
714-18 THENCE south along the east line of the Harvey Gray Survey to
714-19 the northwest corner of the Albert G. Gholson Survey;
714-20 THENCE east along the north line of the Albert G. Gholson
714-21 Survey to the point of intersection with the west line of the
714-22 Benson Resinhoover Survey;
714-23 THENCE south along the west line of the Benson Resinhoover
714-24 Survey to the southwest corner of said Survey;
714-25 THENCE east along the south line of the Benson Resinhoover
714-26 Survey to the southeast corner of said Survey;
715-1 THENCE north along the east line of the Benson Resinhoover
715-2 Survey to the southwest corner of the Samuel H. Ewing Survey;
715-3 THENCE east along the south line of the Samuel H. Ewing
715-4 Survey to the southeast corner of said Survey;
715-5 THENCE north along the east line of the Samuel H. Ewing
715-6 Survey to the southwest corner of the Sidney H. Millard Survey;
715-7 THENCE east along the south line of the Sidney H. Millard
715-8 Survey to the southeast corner of said Survey;
715-9 THENCE south along the west line of the John Caruthers Survey
715-10 to the southwest corner of said Survey;
715-11 THENCE east along the south line of the John Caruthers Survey
715-12 to the southeast corner of said Survey;
715-13 THENCE north along the east line of the John Caruthers Survey
715-14 to the northeast corner of said Survey;
715-15 THENCE east along the south line of the Lewis Duel Survey to
715-16 the southeast corner of said Survey;
715-17 THENCE north along the east line of the Lewis Duel Survey to
715-18 the southwest corner of the John Stubblefield Survey;
715-19 THENCE east along the south line of the John Stubblefield
715-20 Survey to the southeast corner of said Survey;
715-21 THENCE north along the west line of the Pierre Blanchet
715-22 Survey to the northwest corner of said Survey;
715-23 THENCE southeast along the northeast lines of the Pierre
715-24 Blanchet Survey and the Edmund Logre Survey to the point of
715-25 intersection with the east line of Walker County.
716-1 LIBERTY COUNTY
716-2 All of that portion of Liberty County described as follows:
716-3 BEGINNING at the point of intersection of the west line of
716-4 the Spencer Kirkham Survey with the northwest line of Liberty
716-5 County;
716-6 THENCE south along the west line of the Spencer Kirkham
716-7 Survey to the point of intersection with the north line of the
716-8 Daniel Donaho Survey;
716-9 THENCE east along the north lines of the Daniel Donaho Survey
716-10 and the Moses Donaho Survey to the northeast corner of said Moses
716-11 Donaho Survey;
716-12 THENCE south along the west lines of the F. J. C. Smiley
716-13 Survey and the Elias K. Davis Survey to the southwest corner of
716-14 said Elias K. Davis Survey;
716-15 THENCE east along the south line of the Elias K. Davis Survey
716-16 to the northwest corner of the Thomas Newman Survey;
716-17 THENCE south along the east line of the Barton Tarkington
716-18 Survey to the southeast corner of said Survey;
716-19 THENCE east along the north line of the F. H. Votaw Survey to
716-20 the northeast corner of said Survey;
716-21 THENCE south along the east line of the F. H. Votaw Survey to
716-22 the point of intersection with the north line of the Jno. Havard
716-23 Survey;
716-24 THENCE west along the north line of the Jno. Havard Survey to
716-25 the point of intersection with the east line of the Jordan West
716-26 Survey;
717-1 THENCE south along the east lines of the Jordan West Survey
717-2 and the Maurice Smith Survey to the southeast corner of said
717-3 Maurice Smith Survey;
717-4 THENCE east along the north line of the John R. Faulk Survey
717-5 to the northeast corner of said Survey;
717-6 THENCE south along the east lines of the John R. Faulk
717-7 Survey, the Hugh Means Survey, the Thos. B. Garrett Survey, and the
717-8 A. H. Booth Survey to the point of intersection with the north line
717-9 of the G. T. Tabb Survey;
717-10 THENCE east along the north line of the G. T. Tabb Survey to
717-11 the northeast corner of said Survey;
717-12 THENCE south along the west lines of the I. & G. N. R. R. Co.
717-13 Survey and the Richard Green Survey to the southwest corner of said
717-14 Richard Green Survey;
717-15 THENCE east along the south line of the Richard Green Survey
717-16 to the northwest corner of the Reason Green Survey;
717-17 THENCE south along the east line of the Wm. F. Fisher Survey
717-18 to the northwest corner of the I. & G. N. R. R. Co. Survey, Patent
717-19 No. S-713;
717-20 THENCE east along the north line of the I. & G. N. R. R. Co.
717-21 Survey, Patent No. S-713, to the northeast corner of said Survey;
717-22 THENCE south along the east lines of the I. & G. N. R. R. Co.
717-23 Surveys, Patent Nos. S-713 and S-684, to the southwest corner of
717-24 the Beasley Prewitt Survey;
717-25 THENCE east along the south line of the Beasley Prewitt
717-26 Survey to the Northwest corner of the Town of Liberty North League;
718-1 THENCE south along the west line of the Town of Liberty North
718-2 League to the southwest corner of said League;
718-3 THENCE west along the north line of the Town of Liberty South
718-4 League to the northwest corner of said League;
718-5 THENCE south along the west line of the Town of Liberty South
718-6 League to the point of intersection of said west line with the
718-7 northwest right-of-way line of the T. & N. O. R. R.;
718-8 THENCE southwesterly along said northwest right-of-way line
718-9 to its intersection with the Cedar Bayou, which is also the east
718-10 line of Harris County;
718-11 THENCE in a southerly direction along the west line of
718-12 Liberty County, which is also the east line of Harris County, to
718-13 its intersection with the north boundary line of Chambers County;
718-14 THENCE east along the north boundary line of Chambers County,
718-15 which is also the south boundary line of Liberty County, to its
718-16 intersection with the west line of Jefferson County, which is also
718-17 the east boundary line of Liberty County;
718-18 THENCE north along said east line of Liberty County to its
718-19 intersection with the south right-of-way line of the T. & N. O. R.
718-20 R.;
718-21 THENCE in a westerly direction along said south right-of-way
718-22 line to its intersection with the east line of the W. G. R. R. Co.
718-23 Survey, Patent No. S-40;
718-24 THENCE north along the east line of the said W. G. R. R. Co.
718-25 Survey, Patent No. S-40, continuing north along the west line of
718-26 the H. & T. C. R. R. Co. Survey, Patent No. S-496 to the northwest
719-1 corner of said survey;
719-2 THENCE east along the north line of said H. & T. C. R. R. Co.
719-3 Survey, turning northeasterly to follow the northwest line of said
719-4 H. & T. C. R. R. Co. Survey to the point of intersection of said
719-5 northwestern line with the southwest line of the Reason W. Boyce
719-6 Survey;
719-7 THENCE northwesterly along the southwest line of said Boyce
719-8 Survey to the point of intersection with the Robert N. Hanney
719-9 Survey;
719-10 THENCE along the northwest line of said Boyce Survey to the
719-11 east corner of said Hanney Survey, being the point where the
719-12 northeast line of said Hanney Survey intersects the northwest line
719-13 of said Boyce Survey;
719-14 THENCE northwesterly along the northeast line of said Hanney
719-15 Survey, continuing along the northeast line of the John Barron
719-16 Survey to the point of intersection of the northeast line of said
719-17 Barron Survey with the south line of the Jessie Devore Survey;
719-18 THENCE west along the south line of said Devore Survey to the
719-19 southwestern corner of said Devore Survey;
719-20 THENCE in a northerly direction along the west line of said
719-21 Devore Survey to the northeast corner of the Philip P. Dever
719-22 Survey;
719-23 THENCE west along the north line of the Philip P. Dever
719-24 Survey to the southwest corner of the Day Canter Survey;
719-25 THENCE north along the west line of the Day Canter Survey to
719-26 the point of intersection with the south line of the W. S. Swilley
720-1 Survey, Patent No. 36,610;
720-2 THENCE east along the south line of the W. S. Swilley Survey
720-3 to the southeast corner of said survey;
720-4 THENCE north along the east lines of the W. S. Swilley Survey
720-5 and the H. & T. C. R. R. Co. Survey to the point of intersection
720-6 with the south line of the William Smith Survey;
720-7 THENCE east along the south line of the William Smith Survey
720-8 to the southeast corner of said Survey;
720-9 THENCE north along the east line of the William Smith Survey
720-10 to the northeast corner of said Survey;
720-11 THENCE west along the north line of the William Smith Survey
720-12 to the southeast corner of the Francisco Millom Survey;
720-13 THENCE north along the east line of the Francisco Millom
720-14 Survey to the northeast corner of said Survey;
720-15 THENCE west along the north line of the Francisco Millom
720-16 Survey to the point of intersection with the east line of the
720-17 Joseph Young Survey;
720-18 THENCE north along the east line of the Joseph Young Survey
720-19 to the northeast corner of said Survey;
720-20 THENCE west along the north line of the Joseph Young Survey
720-21 to the southwest corner of the Thomas Murphy Survey;
720-22 THENCE north along the west line of the Thomas Murphy Survey
720-23 to the northeast corner of the D. J. Harrison Survey;
720-24 THENCE west along the north lines of the D. J. Harrison
720-25 Survey and the Daniel Cleveland Survey to the southeast corner of
720-26 the J. Young Survey;
721-1 THENCE north along the east line of the J. Young Survey to
721-2 the northeast corner of said Survey;
721-3 THENCE east along the north line of the Thomas Murphy Survey
721-4 to the northeast corner of said Survey;
721-5 THENCE north along the west lines of the L. D. Nixon Survey,
721-6 the Lefori Gedruf Survey, and the Mathew S. Miller Survey to the
721-7 northwest corner of said Mathew S. Miller Survey;
721-8 THENCE west along the south line of the I. & G. N. R. R. Co.
721-9 Survey to the southwest corner of said Survey;
721-10 THENCE north along the east line of the Wm. Phelps Survey to
721-11 the northeast corner of said Survey;
721-12 THENCE west along the north line of the Wm. Phelps Survey to
721-13 the point of intersection with the east line of the Augustin M. de
721-14 Lejarza Survey;
721-15 THENCE north along the east line of the Augustin M. de
721-16 Lejarza Survey to the northeast corner of said Survey;
721-17 THENCE east along the south line of the Philip Miller Survey
721-18 to the southeast corner of said Survey;
721-19 THENCE north along the east line of the Philip Miller Survey
721-20 to the point of intersection with the south line of the Manuel de
721-21 los Santos Coy Survey;
721-22 THENCE east along the north line of the John E. Mayfield
721-23 Survey to an angle point for corner, said angle point being also
721-24 the southeast corner of the Manuel de los Santos Coy Survey;
721-25 THENCE north along the east line of the Manuel de los Santos
721-26 Coy Survey to the northeast corner of said Survey;
722-1 THENCE west along the north line of the Manuel de los Santos
722-2 Coy Survey to the point of intersection with the east line of the
722-3 John Hartgraves Survey;
722-4 THENCE north along the east line of the John Hartgraves
722-5 Survey to the northeast corner of said Survey;
722-6 THENCE east along the south line of the Jose Dolores Martinez
722-7 Survey to the southeast corner of said Survey;
722-8 THENCE north along the east line of the Jose Dolores Martinez
722-9 Survey to the northeast corner of said Survey;
722-10 THENCE west along the north line of the Jose Dolores Martinez
722-11 Survey to the southeast corner of the Isaiah Fields Survey;
722-12 THENCE north along the east line of the Isaiah Fields Survey
722-13 to the northeast corner of said Survey;
722-14 THENCE west along the north line of the Isaiah Fields Survey
722-15 to the southeast corner of the Augustin M. de Lejarza Survey;
722-16 THENCE north along the east line of the Augustin M. de
722-17 Lejarza Survey to the southwest corner of the Joel W. Robison
722-18 Survey;
722-19 THENCE east along the south line of the Joel W. Robison
722-20 Survey to the southeast corner of said Survey;
722-21 THENCE north along the east line of the Joel W. Robison
722-22 Survey to the point of intersection with the northeast line of
722-23 Liberty County;
722-24 THENCE northwest along the northeast line of Liberty County
722-25 to the point of intersection with the north line of Liberty County;
722-26 THENCE west along the north line of Liberty County to the
723-1 point of intersection with the northwest line of Liberty County;
723-2 THENCE southwest along the northwest line of Liberty County
723-3 to the point of beginning.
723-4 (b) The area of the authority shall also include the Maria
723-5 G. Castro League in Trinity County, which includes the area of the
723-6 city of Groveton, and it is found and determined that all the land
723-7 in the league will benefit from the exercise of the power conferred
723-8 in this chapter.
723-9 (c) It is found and determined that all the land included in
723-10 the authority will benefit from the exercise of the powers
723-11 conferred by this chapter. No provision of this chapter is
723-12 intended to or shall be applicable outside the area specifically
723-13 included in this section, notwithstanding anything in this chapter
723-14 to the contrary.
723-15 Sec. 275.004. BOARD OF DIRECTORS. (a) All powers of the
723-16 authority shall be exercised by a board of directors.
723-17 (b) The board shall consist of 24 directors to be appointed
723-18 by the governor with the advice and consent of the senate. When
723-19 the legislature is in session, an appointment shall not become
723-20 effective until it is approved by the senate.
723-21 (c) For the purposes of the appointment of directors the
723-22 authority is divided into 18 areas, numbered 1 to 18, both
723-23 inclusive, respectively containing the county as follows:
723-24 Area 1. Tarrant
723-25 Area 2. Dallas
723-26 Area 3. Kaufman
724-1 Area 4. Henderson
724-2 Area 5. Ellis
724-3 Area 6. Navarro
724-4 Area 7. Anderson
724-5 Area 8. Freestone
724-6 Area 9. Leon
724-7 Area 10. Houston
724-8 Area 11. Trinity
724-9 Area 12. Madison
724-10 Area 13. Walker
724-11 Area 14. San Jacinto
724-12 Area 15. Polk
724-13 Area 16. Liberty
724-14 Area 17. Chambers
724-15 Area 18. All the territory contained within the above named
724-16 17 areas and 17 counties, which shall be known as "the
724-17 area-at-large."
724-18 (d) The board shall include three directors from Tarrant
724-19 County, four directors from Dallas County, and two directors from
724-20 the area-at-large. One director shall be appointed from each of
724-21 the other areas named in Subsection (c).
724-22 (e) Each director serves for a term of six years and until a
724-23 successor is appointed and has qualified. The terms of the
724-24 directors expire on the 15th day of March of the year in which
724-25 their respective terms terminate under the provisions of this
724-26 chapter.
725-1 (f) The board may appoint an executive committee to perform
725-2 the functions of the board between meetings, except as its powers
725-3 may be restricted in the action setting up the committee.
725-4 (g) A director must reside and own taxable property within
725-5 the area from which the director is appointed. An officer or
725-6 employee of a county or city shall not be eligible to serve as a
725-7 director.
725-8 (h) Each director shall subscribe the constitutional oath
725-9 and shall give bond in the amount of $5,000, the cost of which
725-10 shall be paid by the authority.
725-11 (i) If a director moves out of the area from which the
725-12 director is appointed, the governor shall promptly appoint a
725-13 successor to the director's position.
725-14 Sec. 275.005. DIRECTOR FEES. A director is entitled to
725-15 receive fees of office and reimbursement expenses as provided by
725-16 Section 49.060.
725-17 Sec. 275.006. OFFICERS. (a) The board shall elect from
725-18 among its members a president and a vice president of the authority
725-19 and other officers that the board considers necessary.
725-20 (b) The president is the presiding officer of the board and
725-21 the chief officer of the authority and has the same right to vote
725-22 as any other director.
725-23 (c) The vice president shall perform all duties and exercise
725-24 all powers conferred by this chapter on the president when the
725-25 president is absent or fails, is unable, or declines to act.
725-26 (d) The board shall appoint a secretary and a treasurer who
726-1 shall not be members of the board. Within the discretion of the
726-2 board the offices of secretary and treasurer may be held by one
726-3 person, whose title shall be secretary-treasurer. The treasurer
726-4 shall give bond in an amount prescribed by the board.
726-5 (e) The board may appoint a general manager and all
726-6 necessary engineers, attorneys, and other employees.
726-7 Sec. 275.007. GENERAL POWERS AND DUTIES. (a) The authority
726-8 shall have all the powers of the state under Section 59, Article
726-9 XVI, Texas Constitution, to effectuate flood control and the
726-10 conservation and use, for all beneficial purposes, of storm waters
726-11 and floodwaters and unappropriated flow waters in the Trinity River
726-12 watershed, subject only to:
726-13 (1) declarations of policy by the legislature as to
726-14 use of water;
726-15 (2) continuing supervision and control by the
726-16 commission;
726-17 (3) the provisions of Section 11.024, prescribing the
726-18 priorities of uses for water; and
726-19 (4) the water rights legally acquired at any time by
726-20 municipalities and other users.
726-21 (b) The authority shall have all the powers of the state
726-22 under Section 59, Article XVI, Texas Constitution, to encourage,
726-23 promote, and provide for the navigation of inland and coastal
726-24 waters within the Trinity River watershed, including the power to
726-25 cooperate with the Chambers-Liberty Counties Navigation District in
726-26 the development and construction of navigation canals and
727-1 facilities or harbor and terminal facilities within the boundaries
727-2 of the Chambers-Liberty Counties Navigation District.
727-3 (c) The authority shall exercise the powers described by
727-4 this section, to the greatest practicable extent, for the
727-5 conservation and beneficial use of storm waters, floodwaters, and
727-6 unappropriated flow waters of the Trinity River Watershed in the
727-7 manner and for the particular purposes specified in this section
727-8 and in this chapter, including the power:
727-9 (1) to store and conserve such waters in order to
727-10 prevent the escape of any water without the maximum beneficial use
727-11 either within or outside the authority;
727-12 (2) to provide for the conservation of water for uses
727-13 within and outside the watershed, including providing a water
727-14 supply for cities and towns, and the right to sell water and
727-15 standby service to any person, firm, or corporation, including
727-16 cities and towns and other public agencies, within and outside the
727-17 watershed; provided, however, that the purchasers of conservation
727-18 storage water for domestic, industrial, or irrigation uses shall
727-19 not be required to pay any part of the cost of benefits accruing
727-20 for flood control purposes;
727-21 (3) to provide for the conservation of soils and other
727-22 surface resources against destructive erosion and prevent the
727-23 increased flood dangers caused by destructive erosion;
727-24 (4) to provide for the prevention of sedimentation and
727-25 siltation of lands, channels, reservoirs, and coastal waters,
727-26 including aiding and supplementing the work of upstream soil and
728-1 water conservation and flood prevention projects authorized by
728-2 state or federal agencies in conjunction with soil conservation
728-3 districts, in furtherance of the master plan as described in
728-4 Section 275.028;
728-5 (5) to provide water for the irrigation of lands
728-6 within and outside the watershed;
728-7 (6) to provide water for the development of commercial
728-8 and industrial enterprises, within and outside the watershed;
728-9 (7) to execute contracts with municipalities and
728-10 others involving the construction of reservoirs, dams, water supply
728-11 lines, water purification and pumping facilities, and the
728-12 furnishing of water supply service substantially in the manner
728-13 prescribed by Section 402.020, Local Government Code, for districts
728-14 organized and created pursuant to Section 59, Article XVI, Texas
728-15 Constitution, extended to permit such contracts with individuals,
728-16 partnerships, and all classes of corporations and to permit the
728-17 inclusion in the authorized contracts of provisions for operation
728-18 and ownership of such properties;
728-19 (8) to bring water into the boundaries of the
728-20 authority for beneficial uses when the authority considers it
728-21 necessary for the interest of conservation, and subject to the
728-22 approval of the commission;
728-23 (9) to provide for the encouragement and development
728-24 of recreational facilities and the preservation of fish and
728-25 wildlife;
728-26 (10) to acquire, purchase, take over, construct,
729-1 maintain, operate, develop, and regulate canals, locks, wharves,
729-2 docks, warehouses, grain elevators, bunkering facilities, belt
729-3 railroads, floating plants, lighterage, lands, towing facilities,
729-4 and all other facilities or aids incident to or necessary to the
729-5 operation or development of ports or waterways within the Trinity
729-6 River watershed and extending to the Gulf of Mexico;
729-7 (11) to adopt through action of the board any powers
729-8 permitted under this code;
729-9 (12) to construct, own, and operate sewage-gathering,
729-10 transmission, and disposal services, charge for the services, and
729-11 enter into contracts for the services with municipalities and
729-12 others as necessary to aid in the conservation, control,
729-13 preservation, and distribution of water for beneficial use; and
729-14 (13) to adopt all reasonable rules and regulations
729-15 designed to facilitate the exercise of the rights and the
729-16 performance of the duties of the authority and adopt and amend the
729-17 bylaws of the authority.
729-18 (d) For the purposes of operating or developing ports or
729-19 waterways under Subsection (c)(10), the authority may issue bonds
729-20 as provided by this chapter. The authority may borrow funds for
729-21 current expenses and evidence the same by negotiable notes or
729-22 warrants payable not later than the close of any calendar year for
729-23 which the loans are made.
729-24 (e) Any actions under Subsection (c)(10) within the
729-25 boundaries of the Chambers-Liberty Counties Navigation District may
729-26 be conducted in cooperation with that district.
730-1 Sec. 275.008. POWERS RELATING TO RECREATIONAL FACILITIES.
730-2 (a) The board shall acquire sufficient additional land adjoining
730-3 any lakes constructed on the Trinity River for the purpose of
730-4 developing recreational facilities under Section 275.007(c)(9) and
730-5 for acquiring roads for ingress and egress of the public to the
730-6 lakes.
730-7 (b) The board shall use its discretion in determining the
730-8 amount of the additional land required for suitable recreational
730-9 parks but shall secure approximately 20 percent of the adjoining
730-10 lakefront, such 20 percent being intended merely as a guide and not
730-11 as a maximum or minimum limitation.
730-12 (c) The board may charge and collect entrance or gate fees
730-13 to all the authority's developed park sites and recreational areas
730-14 and may charge and collect fees for the use of facilities and for
730-15 services rendered at or on the developed park sites and
730-16 recreational areas.
730-17 (d) The authority shall arrange for the public to have
730-18 adequate free access to each lake owned by the authority.
730-19 (e) The authority may negotiate contracts with any county,
730-20 municipality, municipal corporation, person, firm, corporation,
730-21 nonprofit organization, or state or federal agency for the
730-22 acquisition, establishment, operation, or maintenance of a park
730-23 site or recreational area.
730-24 Sec. 275.009. POWERS RELATING TO DEVERS CANAL SYSTEM.
730-25 (a) In addition to all other powers expressly or impliedly granted
730-26 by other sections of this chapter, the authority may acquire,
731-1 operate, maintain, and improve the canal system and properties
731-2 generally known as "Devers Canal System".
731-3 (b) The authority may enlarge and extend the Devers Canal
731-4 System within the scope of the permits granted by the commission to
731-5 Devers Canal Company, or to its predecessor, and to the authority
731-6 in Chambers and Liberty counties and that portion of Jefferson
731-7 County, described as follows:
731-8 All that portion of Jefferson County located South and West
731-9 of the following described line:
731-10 BEGINNING at the point where the Chambers and Jefferson
731-11 County line intersects the North line of Section 180 (J. H.
731-12 Dunshire Survey, A-677).
731-13 THENCE East along the North line of said Section 180 to its
731-14 Northeast corner.
731-15 THENCE South along the East line of said Section 180 to its
731-16 Southeast corner, same being the Northwest corner of Section 186
731-17 (D. L. Broussard Survey, A-470).
731-18 THENCE East along the North line of said Section 186 to its
731-19 Northeast corner.
731-20 THENCE South along the East line of said Section 186 to its
731-21 Southeast corner, same being the Northwest corner of Section 190
731-22 (H. W. Smith Survey, A-537).
731-23 THENCE East approximately 4,000 feet along the North line of
731-24 said Section 190 to the Northeast corner of the Hebert Trust 480
731-25 acre tract located on the West right of way of a 150 foot wide
731-26 drainage canal.
732-1 THENCE South along the East line of said Hebert Trust 480
732-2 acre tract located in said Section 190 and the East line of the
732-3 Hebert Trust 480 acre tract located in Section 250 (H. W. Smith
732-4 Survey, A-538) and being the West right of way line of said 150
732-5 foot wide drainage canal to the South line of said Section 250,
732-6 same being in the North line of Section 255, A-354.
732-7 THENCE East along the North line of Sections 255, A-354; 256
732-8 (W. H. Smith, A-541); 257, A-335; 258 (W. S. Benson, A-672); 259,
732-9 A-356; 260 (W. S. Benson, A-671); and Section 261, A-357, to the
732-10 Northeast corner of said Section 261. This line is also the South
732-11 right of way line of the aforementioned 150 foot wide drainage
732-12 canal.
732-13 THENCE South along the East line of Sections 261, A-357 and
732-14 264 (T. & N. O. R. R.) and the West right of way line of said 150
732-15 foot wide drainage canal to its intersection with the Northwesterly
732-16 right of way line of the Intracoastal Canal.
732-17 THENCE in a Southwesterly direction along the North right of
732-18 way line of said Intercoastal Canal to a point where the North
732-19 right of way line of said Intercoastal Canal intersects the West
732-20 line of a 1205.27 acre tract of land owned by the McFadden Trust
732-21 Company.
732-22 THENCE due South approximately 3-3/5 miles to the Gulf of
732-23 Mexico.
732-24 (c) For any of the purposes described by this section, the
732-25 authority may issue bonds as provided by this chapter for cash or
732-26 in exchange for the property or capital stock of the Devers Canal
733-1 Company.
733-2 (d) For the purposes of this section, the authority shall
733-3 have the power of eminent domain in the portion of Jefferson County
733-4 described in Subsection (b) to be exercised as provided by this
733-5 chapter.
733-6 (e) The authority may appropriate and divert the waters of
733-7 the Trinity River under the permits and contracts previously owned
733-8 by and acquired from the Devers Canal Company and may distribute,
733-9 sell, and use such waters for any lawful purpose approved by the
733-10 commission within Chambers County, Liberty County, and that portion
733-11 of Jefferson County described in Subsection (b).
733-12 (f) The authority may not assess, levy, or collect a tax of
733-13 any nature for the purposes of this section. The authority may not
733-14 sell water for use in Jefferson County, except in that portion
733-15 described in Subsection (b) or for irrigation use in Chambers
733-16 County within areas authorized to be served by the Chambers-Liberty
733-17 Counties Navigation District under certified filings and permits
733-18 held by the district and issued by the commission or its
733-19 predecessors, without the approval of the district.
733-20 Sec. 275.010. FLOOD CONTROL. (a) In addition to all other
733-21 powers explicitly or impliedly granted by this chapter, the
733-22 authority may:
733-23 (1) cooperate with the commission and the United
733-24 States Army Corps of Engineers to carry out the purposes of this
733-25 chapter and Subchapter Q, Chapter 51;
733-26 (2) develop and implement procedures to exercise
734-1 emergency prerelease programs on Lake Livingston when flooding is
734-2 imminent; and
734-3 (3) establish programs for reservoirs in the Trinity
734-4 River basin that do not have flood control structures, with the
734-5 approval of the commission and after notice and public hearing.
734-6 (b) The authority and other reservoir owners shall be immune
734-7 from any liability for damages resulting from the implementation of
734-8 a prerelease program if the decision to exercise prerelease
734-9 procedures or not to exercise prerelease procedures was reasonable,
734-10 considering water levels, meteorologic conditions and the
734-11 unpredictable nature of those conditions, and historical data.
734-12 (c) The commission shall review and approve the prerelease
734-13 procedures to determine the reasonableness of the procedures.
734-14 Sec. 275.011. REGULATIONS. (a) The board may adopt and
734-15 promulgate all reasonable regulations to regulate residence,
734-16 hunting, fishing, boating, camping, and all recreational and
734-17 business privileges on all lands and easements owned by the
734-18 authority and to protect the property of the authority.
734-19 (b) The regulations shall not include any provisions for the
734-20 collection of fees or the requirement of permits or licenses for
734-21 boat inspections, noncommercial fishing, the use of boats operated
734-22 for noncommercial purposes on lakes owned by the authority, and
734-23 hunting, except for the use of duck blinds constructed, operated,
734-24 and maintained by the authority.
734-25 Sec. 275.012. CONTRACTS FOR CONSTRUCTION AND OPERATION OF
734-26 FACILITIES. (a) The board may enter into contracts with
735-1 responsible persons for the construction and operation of a
735-2 facility on the authority's property, setting reasonable
735-3 compensation for service by the facility, and requiring adequate
735-4 bond from the contracting person, association, or corporation,
735-5 payable to the authority and of such amount and condition as the
735-6 board in its discretion considers appropriate.
735-7 (b) A contract under this section may provide for forfeiture
735-8 of the particular franchise in case of a failure of the licensee to
735-9 render adequate public service.
735-10 Sec. 275.013. PENALTIES FOR VIOLATION OF RULES OR
735-11 REGULATIONS. (a) For the breach of any authority rule or
735-12 regulation, the authority may prescribe reasonable penalties that
735-13 shall not exceed fines of more than $200 or imprisonment for more
735-14 than 30 days, or both fine and imprisonment.
735-15 (b) The penalties authorized by this section shall be in
735-16 addition to any other penalties provided by the laws of this state
735-17 and may be enforced by complaints filed in the appropriate court of
735-18 jurisdiction in the county in which the violation occurred.
735-19 Sec. 275.014. NOTICE OF RULES AND REGULATIONS. (a) Before
735-20 a rule or regulation providing for a penalty may take effect, a
735-21 substantive statement of the rule or regulation and the penalty
735-22 must be published once a week for two consecutive weeks in the
735-23 authority.
735-24 (b) The statement must be as condensed as possible so that
735-25 the act forbidden by the rule or regulation can be easily
735-26 understood.
736-1 (c) Any number of rules or regulations may be included in
736-2 one notice.
736-3 (d) The notice must advise that violation of a rule or
736-4 regulation will subject the violator to a penalty and that the full
736-5 text of the rule or regulation sought to be enforced is on file in
736-6 the principal office of the authority, where it may be read by any
736-7 interested person.
736-8 (e) Five days after the second publication of the notice,
736-9 the published rule or regulation shall be in effect and ignorance
736-10 of the rule or regulation shall not constitute a defense to a
736-11 prosecution for the enforcement of the penalty.
736-12 Sec. 275.015. EFFECT OF RULES AND REGULATIONS. After the
736-13 required publication, rules and regulations adopted by the
736-14 authority shall be recognized by the courts as if they were penal
736-15 ordinances of a city.
736-16 Sec. 275.016. POLICE POWERS. (a) The authority may employ
736-17 and constitute its own law enforcement officers.
736-18 (b) A law enforcement officer of the authority or of any
736-19 other governmental entity may make arrests when necessary to
736-20 prevent or abate the commission of an offense against the
736-21 regulations of the authority, and against the laws of this state,
736-22 when the offense or threatened offense occurs on any land, water,
736-23 or easement owned or controlled by the authority.
736-24 Sec. 275.017. ADDITIONAL POWERS AND DUTIES. (a) The
736-25 authority is a district and a river authority as defined in Chapter
736-26 30. All the provisions of Chapter 30 are applicable to the
737-1 authority, except to the extent of any conflict with this chapter,
737-2 in which case this chapter prevails.
737-3 (b) The authority and all persons may enter into contracts
737-4 with each other in any manner and on terms that the parties may
737-5 agree with respect to any power, function, facility, or service of
737-6 the authority. All public agencies are authorized to use and
737-7 pledge any available revenues for and in the payment of amounts due
737-8 under the contracts as an additional or the sole source of payment
737-9 of the contracts and may covenant with respect to available
737-10 revenues to assure the availability of the revenues when required.
737-11 The term "revenues" as used in this subsection does not mean or
737-12 include revenues from ad valorem taxes levied and collected by a
737-13 public agency or the proceeds from the sale or refunding of bonds
737-14 of a public agency that are to be wholly or partially paid from ad
737-15 valorem taxes levied and collected by the public agency unless the
737-16 use or pledge of the tax revenues or bond proceeds is approved by
737-17 the qualified voters of the public agency at an election called for
737-18 the purpose of levying taxes or issuing or refunding bonds or both
737-19 for the purpose of using or pledging their revenues or proceeds
737-20 under contracts entered into under this section.
737-21 (c) A public agency may set, charge, and collect fees,
737-22 rates, charges, rentals, and other amounts for any service or
737-23 facility provided by a utility operated by the agency or provided
737-24 pursuant to or in connection with a contract with the authority
737-25 from its inhabitants or from any users or beneficiaries of the
737-26 utility, service, or facility including:
738-1 (1) water charges;
738-2 (2) sewage charges;
738-3 (3) solid waste disposal system fees and charges,
738-4 including garbage collection or handling fees; and
738-5 (4) other fees or charges.
738-6 (d) A public agency may use and pledge the fees, rates,
738-7 charges, rentals, and other amounts authorized by Subsection (c) to
738-8 make payments to the authority required under a contract with the
738-9 authority and may covenant to do so in amounts sufficient to make
738-10 all or any part of the payments to the authority when due. If the
738-11 parties agree in the contract, the payments shall constitute an
738-12 expense of operation of any facility or utility operated by the
738-13 public agency.
738-14 (e) The authority, acting through the board, may undertake
738-15 and carry out any activities and may acquire, purchase, construct,
738-16 own, operate, maintain, repair, improve, or extend and may lease or
738-17 sell on terms and conditions, including rentals or sale prices, on
738-18 which the parties may agree all works, improvements, facilities,
738-19 plants, buildings, structures, equipment, and appliances and all
738-20 real and personal property, or any interest in related real or
738-21 personal property, that are incident to or necessary in carrying
738-22 out or performing any power or function of the authority under this
738-23 section.
738-24 (f) The authority may issue bonds with respect to the
738-25 acquisition, purchase, construction, maintenance, repair,
738-26 improvement, and extension of works, improvements, facilities,
739-1 plants, buildings, structures, appliances, and property for the
739-2 purpose of exercising any of its powers and functions under this
739-3 section in the manner provided in Section 275.022.
739-4 (g) The authority may issue revenue bonds to pay for the
739-5 costs of feasibility studies for proposed projects of the
739-6 authority, including engineering, planning and design, and
739-7 environmental studies. The authority may include in any revenue
739-8 bond issue the funds to operate and maintain, for a period not to
739-9 exceed two years after completion, the facilities acquired or
739-10 constructed through the revenue bond issue.
739-11 (h) If bonds issued by the authority recite that they are
739-12 secured by a pledge of payments under a contract, a copy of the
739-13 contract and the proceedings relating to the contract shall be
739-14 submitted to the attorney general along with the bonds, which must
739-15 be submitted under Section 275.022(l). If the attorney general
739-16 finds that the bonds have been authorized and the contract has been
739-17 made and entered into in accordance with law, the attorney general
739-18 shall approve the bonds and the contract, which are then
739-19 incontestable in any court or other forum for any reason and are
739-20 valid and binding in accordance with their terms and provisions for
739-21 all purposes.
739-22 (i) The provisions of Chapter 1204, Government Code, and
739-23 Chapter 618, Government Code, as added by Chapter 227, Acts of the
739-24 76th Legislature, Regular Session, 1999, are applicable to bonds
739-25 issued by the authority.
739-26 (j) This section is wholly sufficient authority for the
740-1 issuance of bonds, the execution of contracts, and the performance
740-2 of the other acts and procedures authorized by this section by the
740-3 authority and all persons, including public agencies, without
740-4 reference to any other provisions of law or any restriction or
740-5 limitation contained in any other law, except as provided by this
740-6 section. To the extent of any conflict or inconsistency between a
740-7 provision of this subsection and any other provision of law,
740-8 including a home-rule city charter, this subsection prevails and
740-9 controls. The authority and all persons, including public
740-10 agencies, may use any provision of law not in conflict with this
740-11 section to the extent convenient or necessary to carry out any
740-12 power or authority, express or implied, granted by this section.
740-13 (k) This section does not affect:
740-14 (1) the taxing power of the authority;
740-15 (2) the election process pertaining to the authority's
740-16 taxing power; or
740-17 (3) any provision of Section 275.020.
740-18 Sec. 275.018. HYDROELECTRIC POWER. The authority may
740-19 produce and sell hydroelectric energy or power on a wholesale basis
740-20 to any public utility on terms and conditions as the parties may
740-21 agree.
740-22 Sec. 275.019. AD VALOREM TAXES; ELECTION. (a) Subject to
740-23 the limitation prescribed in this section, the authority may levy
740-24 and collect the ad valorem taxes that are voted at an election
740-25 called by the board for the purpose and conducted throughout the
740-26 territory of the authority.
741-1 (b) The maximum rate of tax that may be levied and collected
741-2 for any year is 15 cents on the $100 of taxable property based on
741-3 the assessed valuation.
741-4 (c) Only qualified electors may vote in a tax election.
741-5 (d) An elector otherwise qualified must vote in the county
741-6 and precinct where the elector resides.
741-7 (e) The resolution calling for a tax election must state the
741-8 maximum rate or rates of taxes that are to be authorized.
741-9 (f) The authority shall publish notice of a tax election and
741-10 the proposed tax rates at least once in each of four weeks on the
741-11 same day of each week in a newspaper published in, or having
741-12 general circulation in, each county within the authority. The date
741-13 of the first publication must be at least 30 days before the date
741-14 of the election.
741-15 (g) The resolution calling for an election must specify the
741-16 voting places in each of the several counties. The notice of an
741-17 election will be sufficient as to any county within the authority
741-18 if it states that the election is to be held throughout the
741-19 territory comprising the authority and specifies the voting places
741-20 in such county. It shall not be necessary to publish such details
741-21 except in the county to which the details are applicable.
741-22 (h) Returns of the election shall be made to the board.
741-23 (i) If a majority of the qualified electors voting in a
741-24 majority of the counties that are wholly or partially within the
741-25 authority and a majority of the qualified electors voting in the
741-26 entire authority vote in favor of the levy of the tax, the board
742-1 may levy the tax at the maximum rate approved by the electors.
742-2 (j) The rate of tax shall be uniform throughout the
742-3 territory comprising the authority and shall be certified by the
742-4 president and secretary of the authority to the tax assessor and
742-5 the tax collector of each included county.
742-6 (k) The board may use funds from a tax that was approved by
742-7 the electors under this section for any purpose authorized by the
742-8 powers conferred on the authority by this chapter.
742-9 Sec. 275.020. CERTAIN LANDS AND PROPERTY EXCLUDED. (a) It
742-10 is found that none of the lands and property owned or controlled by
742-11 a railroad company or motor carrier regulated by the Railroad
742-12 Commission of Texas within the authority benefit from the exercise
742-13 of any powers conferred by this chapter, and such lands and
742-14 property are expressly excluded from the authority. None of the
742-15 lands or property of such railroad companies or motor carriers
742-16 regulated by the Railroad Commission of Texas may be subjected to
742-17 any of the specific or general provisions in the chapter. The
742-18 finding under this subsection supersedes the provisions of Section
742-19 275.003 and any other sections of this chapter.
742-20 (b) The taxing power and authority provided by this chapter
742-21 shall not extend to nor apply to the lands and property of a
742-22 railroad company or motor carrier regulated by the Railroad
742-23 Commission of Texas required by law to pay a tax on intangible
742-24 assets, and no tax assessor, collector, or any other public
742-25 official shall have any powers relating to taxation or otherwise
742-26 over such properties.
743-1 (c) If a tax assessor or collector of any county wholly or
743-2 partly within the authority undertaking an official act for the
743-3 authority exercises or attempts to exercise any act that could be
743-4 construed by a railroad company or motor carrier regulated by the
743-5 Railroad Commission of Texas as extending a taxing power or
743-6 authority over the lands and property of the railroad company or
743-7 motor carrier, the railroad company or motor carrier may withhold
743-8 payment to the county for which the tax assessor or collector
743-9 normally performs official duties for the reasons that:
743-10 (1) the lands and properties of the companies do not
743-11 benefit from the exercise of any powers contained in this chapter;
743-12 and
743-13 (2) the companies are not required to pay any taxes to
743-14 the authority because they are required by law to pay a tax on
743-15 intangible assets.
743-16 (d) Any court of competent jurisdiction within this state
743-17 shall enforce the provisions of this section through injunction,
743-18 mandatory injunction, writ of prohibition, or any other process
743-19 entered or promulgated to effectuate the sense and purposes of this
743-20 section.
743-21 (e) At an election called by the authority or an authorized
743-22 public official for the purpose of levying a tax provided by this
743-23 chapter, the ballot and the notice of the election shall confine
743-24 the property subject to taxation to property that benefits by
743-25 submitting to the voters the proposition substantially as follows:
743-26 "Shall Trinity River Authority of Texas be
744-1 authorized to levy a tax on all taxable
744-2 property in the authority at a rate not to
744-3 exceed 15 cents on the $100 of assessed
744-4 valuation?"
744-5 Sec. 275.021. TAX ASSESSMENT AND COLLECTION. (a) The
744-6 rendition and assessment of property for taxation and the
744-7 collection of taxes for the benefit of the authority shall be in
744-8 accordance with the law applicable to counties, in so far as such
744-9 law is applicable.
744-10 (b) Renditions shall be to the county tax assessor of the
744-11 county in which the property is taxable for state and county
744-12 purposes.
744-13 (c) The assessor and collector in each county shall place on
744-14 the county tax rolls any additional columns that are needed to show
744-15 the tax levied by the authority and the amount of the tax, based on
744-16 the value of the property as approved finally for state and county
744-17 purposes by the board of equalization of the county.
744-18 (d) The fee for assessing and collecting taxes shall be
744-19 one-half of one percent of the taxes collected. The fee shall be
744-20 paid over and disbursed in each county as are other fees of office.
744-21 (e) Laws for the enforcement of state and county taxes shall
744-22 be available to the authority. The authority may require the
744-23 officers of each county to enforce the taxes due to the authority
744-24 in that county, as provided in the law for the enforcement of state
744-25 and county taxes.
744-26 (f) Taxes assessed and levied for the benefit of the
745-1 authority shall be payable and shall become delinquent at the same
745-2 time, in the same manner, and subject to the same discount for
745-3 advance payment as taxes levied by and for the benefit of the
745-4 county in which the property is taxable.
745-5 Sec. 275.022. BONDS. (a) For the purpose of carrying out
745-6 any powers of the authority, the authority may issue negotiable
745-7 bonds of three general classes:
745-8 (1) bonds secured by ad valorem taxes, when voted,
745-9 provided that the maximum rate of tax in any one year to be levied
745-10 by the authority for bonds and all other purposes shall not exceed
745-11 15 cents on the $100 of taxable property;
745-12 (2) bonds secured solely by a pledge of all or part of
745-13 the revenues accruing to the authority, including revenues received
745-14 from the sale of water, the rendition of services, tolls, charges,
745-15 and all sources other than ad valorem taxes; and
745-16 (3) bonds secured by a combination pledge of revenues
745-17 and taxes, provided that taxes will be collected for the purpose
745-18 only to the extent that the revenues are insufficient to provide
745-19 the amount of money necessary to pay operating and maintenance
745-20 expenses and to service the bonds as prescribed in the resolution
745-21 authorizing, or the indenture securing, the bonds.
745-22 (b) The authority may issue bonds prescribed in Subsection
745-23 (a)(2) by action of the board and without an election. Bonds
745-24 issued under Subsections (a)(1) and (3) may be issued only after
745-25 authorization at an election held throughout the territory
745-26 comprising the authority. The elections shall be conducted
746-1 substantially in accordance with the procedure prescribed in
746-2 Section 275.019 for elections authorizing ad valorem taxes. The
746-3 qualifications of voters at bond elections shall be the same as
746-4 those prescribed in Section 275.019 for elections authorizing ad
746-5 valorem taxes.
746-6 (c) Bonds of the authority must be authorized by resolution
746-7 adopted by the board and shall be signed by the president or vice
746-8 president, attested by the secretary, and impressed with the seal
746-9 of the authority. At the discretion of the board, as evidenced by
746-10 the resolution, bonds may be issued bearing the facsimile signature
746-11 of the president or vice president and the seal of the authority
746-12 may be printed on the bonds, but the signature of the secretary
746-13 must be manually affixed. Bonds must mature serially or otherwise
746-14 within the period and at the times prescribed in the resolution,
746-15 not to exceed 50 years. The bonds may be sold at a price and under
746-16 terms determined by the board to be the most advantageous
746-17 reasonably obtainable, provided that the interest cost to the
746-18 authority calculated by the use of standard bond interest tables
746-19 currently in use by insurance companies and investment houses does
746-20 not exceed six percent per year, except that bonds payable wholly
746-21 or partially from taxes shall bear interest costs not to exceed
746-22 four and one-half percent per year. The bonds, at the discretion
746-23 of the board, may be made callable prior to maturity at the times
746-24 and prices prescribed in the resolution authorizing the bonds. The
746-25 bonds may be registrable as to principal or as to both principal
746-26 and interest. Appropriate provisions may be inserted in the
747-1 resolution authorizing the execution and delivery of bonds for the
747-2 conversion of registered bonds into bearer bonds and vice versa.
747-3 Provisions may be made in the bond resolution or trust indenture
747-4 for the substitution of new bonds for those lost or mutilated. If
747-5 bonds are approved by the attorney general and registered by the
747-6 comptroller as prescribed in Subsection (l), it shall not be
747-7 necessary to obtain the approval of the attorney general or
747-8 registration by the comptroller of the converted or substituted
747-9 bonds.
747-10 (d) Bonds secured wholly or in part by a pledge of the
747-11 revenues of the authority may be secured by all or part of the
747-12 revenues specified in the resolution authorizing the bonds or in
747-13 the indenture securing the bonds. At the discretion of the board,
747-14 bonds may be secured further by a lien on all or any part of the
747-15 physical property of the authority. In making the pledge of the
747-16 revenues the right, under the conditions specified in the pledge,
747-17 to issue additional bonds to be on a parity with, senior to, or
747-18 subordinate to the bonds then being issued may be expressly
747-19 reserved.
747-20 (e) If bonds are issued payable wholly from ad valorem
747-21 taxes, the board shall, at the time of the authorization of the
747-22 bonds, levy a tax sufficient to pay the principal of and interest
747-23 on the bonds as the interest and principal become due and shall
747-24 provide the reserve funds if prescribed in the resolution
747-25 authorizing or the trust indenture securing the bonds, with regard
747-26 to the maximum rate of tax permitted under this chapter.
748-1 (f) If bonds are issued payable both from ad valorem taxes
748-2 and from revenues of the authority, an ad valorem tax shall be
748-3 levied at the time of the authorization of the bonds sufficient to
748-4 pay the principal of and interest on the bonds and create and
748-5 maintain reserve funds, but the rate of tax to be collected for any
748-6 year shall be set to take into consideration the money that has
748-7 been in the interest and sinking fund from the pledged revenues and
748-8 that will be available for payment of the principal and interest
748-9 and for the creation of the reserve funds, to the extent and in the
748-10 manner permitted by the resolution authorizing or the trust
748-11 indenture securing the bonds.
748-12 (g) If bonds are issued payable wholly from revenues, the
748-13 board shall set and from time to time revise the rates, tolls, and
748-14 charges for the sales and services rendered by the authority. The
748-15 revenues from the rates, tolls, and charges are pledged so that the
748-16 rates, tolls, and charges will yield sufficient money to pay the
748-17 designated expenses of the authority and the principal of and
748-18 interest on the bonds as the principal and interest mature and to
748-19 create and maintain funds as prescribed in the resolution
748-20 authorizing or the trust indenture securing the bonds. If the
748-21 bonds are issued payable both from ad valorem taxes and from
748-22 revenues, the board shall set and from time to time revise the rate
748-23 of compensation for water sold, services rendered, and tolls and
748-24 charges levied by the authority, to the extent the revenues are
748-25 pledged and to the extent sufficient to assure compliance with the
748-26 resolution authorizing the bonds or the trust indenture securing
749-1 the bonds.
749-2 (h) From the proceeds of the sale of any issue of bonds the
749-3 authority may set aside an amount for the payment of interest
749-4 anticipated to accrue for the period specified, or for the
749-5 construction period and two additional years, and to provide for a
749-6 deposit into reserves for the interest and sinking fund to the
749-7 extent prescribed in the resolution authorizing or the trust
749-8 indenture securing the bonds. Proceeds from the sale of the bonds
749-9 shall be used for the purposes for which the bonds were authorized
749-10 and may be used for the payment of all expenses necessarily
749-11 incurred in accomplishing the purposes for which the authority is
749-12 created, including the expense of issuing and selling the bonds.
749-13 However, no expenditure of the proceeds shall be made in violation
749-14 of the provisions in the resolution authorizing or the trust
749-15 indenture securing the bonds.
749-16 (i) In the event of a default or a threatened default in the
749-17 payment of the principal of or interest on bonds payable wholly or
749-18 partially from revenues, any court of competent jurisdiction may,
749-19 on petition of the holders of outstanding bonds, appoint a receiver
749-20 with authority to collect and receive all income of the authority
749-21 except taxes, employ and discharge agents and employees of the
749-22 authority, take charge of funds on hand, except funds received from
749-23 taxes unless commingled, and manage the proprietary affairs of the
749-24 authority without consent or hindrance by the directors. The
749-25 receiver may also be authorized to sell or make contracts for the
749-26 sale of water or renew such contracts with the approval of the
750-1 court appointing the receiver. The court may vest the receiver
750-2 with other powers and duties the court may find necessary for the
750-3 protection of the holders of the bonds. The resolution authorizing
750-4 the issuance of the bonds or the trust indenture securing the bonds
750-5 may limit or qualify the rights of the holders of less than all of
750-6 the outstanding bonds payable from the same source to institute or
750-7 prosecute any litigation affecting the authority's property or
750-8 income.
750-9 (j) Pending the issuance of definitive bonds the board may
750-10 authorize the delivery of negotiable interim bonds or notes,
750-11 eligible for exchange or substitution, by use of definitive bonds.
750-12 (k) The authority is authorized to issue refunding bonds for
750-13 the purpose of refunding any outstanding bonds and interest on the
750-14 bonds authorized by this chapter or any other indebtedness which
750-15 the authority may lawfully assume. The refunding bonds may be
750-16 issued to refund more than one series of outstanding bonds and may
750-17 for the benefit of the refunding bonds combine the pledges securing
750-18 the outstanding bonds and may inject additional security for the
750-19 refunding issue. Refunding bonds shall be registrable by the
750-20 comptroller on surrender and cancellation of the bonds to be
750-21 refunded, but in lieu of that procedure the resolution authorizing
750-22 the issuance of the refunding bonds may provide that the bonds
750-23 shall be sold and the proceeds deposited in the bank, or in one or
750-24 more of the banks where the original bonds are payable. If the
750-25 bonds are sold and the proceeds deposited in the bank, the
750-26 refunding bonds may be issued in an amount sufficient to pay the
751-1 interest on the original bonds to their maturity date, or to the
751-2 date on which the bonds are to be redeemed, and the amount of the
751-3 call premium, if any, for bonds called for redemption prior to
751-4 maturity; in that event the comptroller shall register the
751-5 refunding bonds without the concurrent surrender and cancellation
751-6 of the original bonds. No election shall be necessary in
751-7 connection with the authorization and issuance of refunding bonds.
751-8 (l) Bonds shall not be issued by the authority until the
751-9 bonds have been approved by the attorney general. After the bonds
751-10 have been approved by the attorney general and registered by the
751-11 comptroller the bonds are negotiable and incontestable. If the
751-12 bonds of an issue have been properly approved and registered, the
751-13 replacement bonds delivered by the authority in lieu of the
751-14 approved and registered bonds under Subsection (c), in connection
751-15 with the exchange of registered for unregistered bonds or
751-16 unregistered bonds for registered bonds, or in lieu of lost or
751-17 mutilated bonds, need not be reapproved by the attorney general or
751-18 reregistered by the comptroller. The replacement bonds are
751-19 incontestable except that the limitations resulting from
751-20 registration are negotiable.
751-21 (m) Bonds, including refunding bonds, authorized by this
751-22 chapter and not payable wholly from ad valorem taxes may be
751-23 additionally secured by a trust indenture under which the trustee
751-24 may be a bank having trust powers situated either within or outside
751-25 the state. The trust indenture may contain provisions prescribed
751-26 by the board for the security of the bonds and the preservation of
752-1 the properties, contracts, and rights of the authority. The trust
752-2 indenture may contain a provision for the amendment or modification
752-3 of the indenture in the manner prescribed in the indenture.
752-4 Without limiting the generality of the provisions contained in the
752-5 indenture, the indenture may provide that the authority shall
752-6 comply with the requirements of designated consulting engineers for
752-7 the proper maintenance and operation of the authority's properties
752-8 and for the setting of adequate tolls, charges, and rates to assure
752-9 proper maintenance and operation and to provide proper debt service
752-10 for the outstanding bonds in the manner prescribed in the
752-11 resolution authorizing the issuance of the bonds or in the trust
752-12 indenture securing the bonds.
752-13 (n) The proceeds from the sale of any issue of bonds may,
752-14 within the discretion of the board, be invested during the period
752-15 of construction, or before the use of the proceeds for construction
752-16 purposes, in bonds or other direct obligations of the United States
752-17 government, and the securities may be sold pursuant to the
752-18 directions of the board as and when needed for construction
752-19 purposes.
752-20 Sec. 275.023. BOND VALIDATION BY DISTRICT COURT. (a) The
752-21 authority, in lieu of having its bonds and water supply or sewer
752-22 contracts approved by the attorney general, and at the discretion
752-23 of the board, may have the bonds and contracts validated by a suit
752-24 in the district court in the manner and with the effect provided in
752-25 Sections 55.504-55.510, relating to water improvement districts.
752-26 However, the publication of the general notice of the suit shall be
753-1 in a newspaper designated by the judge of the court in which the
753-2 suit is filed, and the interest rate and sale price of the bonds
753-3 need not be set until after the termination of the suit.
753-4 (b) If the proposed bonds recite that the bonds are secured
753-5 by a pledge of the proceeds of a contract or contracts previously
753-6 made between the authority and one or more cities, the petition
753-7 shall so allege and the general notice of the suit must specify the
753-8 allegation and the city fund or revenues from which the contract or
753-9 contracts are payable. The judgment shall be res judicata as to
753-10 the validity of the contract or contracts and the pledge of the
753-11 revenues of the contract or contracts.
753-12 Sec. 275.024. INVESTMENT AND DEPOSIT OF FUNDS. The
753-13 authority may invest any of its funds, including proceeds from the
753-14 sale of bonds, in direct obligations of, or obligations whose
753-15 principal and interest are guaranteed by, the United States and may
753-16 invest the funds in direct obligations of the Federal Intermediate
753-17 Credit Bank, the Federal Home Loan Bank, the Federal Land Bank, or
753-18 banks for cooperatives and may place the funds of the authority on
753-19 interest bearing time deposits with banks if the deposits are
753-20 secured with a pledge of securities of the kind specified in this
753-21 section, to the extent not otherwise provided in the resolution or
753-22 the trust indenture under which the bonds are issued. Income and
753-23 profits on the investments shall be applied as provided in the
753-24 resolution or trust indenture.
753-25 Sec. 275.025. BOND ISSUANCE. The authority is authorized to
753-26 issue bonds for cash or in exchange for property of any kind, real,
754-1 personal, or mixed, or any interest in property that the board
754-2 considers necessary or convenient for any corporate purpose.
754-3 Sec. 275.026. EXEMPTION FROM TAXATION. The accomplishment
754-4 of the purposes stated in this chapter being for the benefit of the
754-5 people of the state and for the protection and improvement of their
754-6 properties and industries, the authority, in carrying out the
754-7 purposes of this chapter, will be performing an essential public
754-8 function under the constitution and is not required to pay any tax
754-9 or assessments on its properties. The bonds issued as provided by
754-10 this chapter and the transfer and the income from the bonds,
754-11 including the profits made on the sale of the bonds, are at all
754-12 times free from taxation within this state.
754-13 Sec. 275.027. BONDS AS INVESTMENTS AND SECURITY FOR
754-14 DEPOSITS. (a) All bonds of the authority are legal and authorized
754-15 investments for banks, savings banks, trust companies, building and
754-16 loan associations, savings and loan associations, and insurance
754-17 companies.
754-18 (b) Authority bonds are eligible to secure the deposit of
754-19 all public funds of the state and all public funds of cities,
754-20 towns, villages, counties, school districts, or other political
754-21 corporations or subdivisions of the state. The bonds are lawful
754-22 and sufficient security for the deposits to the extent of the
754-23 principal amount of the bonds or the value of the bonds on the
754-24 market, whichever is less, when accompanied by all unmatured
754-25 coupons.
754-26 Sec. 275.028. MASTER PLAN. (a) The authority shall prepare
755-1 a master plan for the maximum development of the soil and water
755-2 resources of the entire Trinity River watershed, including plans
755-3 for the complete utilization, for all economically beneficial
755-4 purposes, of the water resources of the watershed. The portion of
755-5 the master plan and any amendments to the plan relating to soil
755-6 conservation and upstream flood prevention structures shall be
755-7 prepared by the soil conservation districts on the Trinity River
755-8 watershed, subject to approval by the State Soil and Water
755-9 Conservation Board. The master plan shall be filed with and
755-10 approved by the commission. Notwithstanding any provision of this
755-11 chapter, the portion of the master plan pertaining to the
755-12 designation of major reservoir sites on Chambers Creek shall not be
755-13 effective unless approved by Ellis County Drainage District No. 1
755-14 and any designation of major reservoir sites on Waxahachie Creek
755-15 other than the Bardwell site shall not be effective unless approved
755-16 by Ellis County Water Improvement District No. 1. The master plan
755-17 may be amended or supplemented from time to time by the authority,
755-18 provided that a copy of the amendment or supplement to the master
755-19 plan is filed with and approved by the commission.
755-20 (b) After the master plan has been filed with the
755-21 commission, the plan of a water development proposed within the
755-22 Trinity River watershed not exempted by law from the requirements
755-23 for procuring a permit shall be submitted to the commission. A
755-24 copy of the proposed water development plan shall be furnished to
755-25 the board, which shall make recommendations in reference to the
755-26 proposed development to the commission within 60 days after receipt
756-1 of the copy of the proposed water development plan. The commission
756-2 shall hold a hearing at which the proponents of the proposed
756-3 development and the authority shall have an opportunity to present
756-4 evidence and recommendations to the commission. The commission
756-5 shall approve or disapprove the proposed water development
756-6 notwithstanding any provision of the master plan in accordance with
756-7 the provisions of Section 16.020.
756-8 Sec. 275.029. PURCHASE OR CONSTRUCTION CONTRACT. A
756-9 construction contract or contract for the purchase of material,
756-10 equipment, or supplies is subject to the requirements of general
756-11 law.
756-12 Sec. 275.030. CONSERVATION DISTRICTS. (a) This chapter
756-13 shall not prevent the organization of conservation districts or
756-14 prevent boundary changes of conservation districts within the
756-15 boundaries of the authority as authorized in Section 59, Article
756-16 XVI, Texas Constitution, or as prescribed in Section 52, Article
756-17 III, Texas Constitution. After the master plan of the authority
756-18 has been prepared and after it has been filed with and approved by
756-19 the commission as prescribed in Section 275.028, the procedure
756-20 prescribed in Section 275.028 shall be followed. Until the master
756-21 plan has been filed with and approved by the commission, it shall
756-22 be the duty of the sponsors of a conservation district to file with
756-23 the board information as to proposed plans of the district. It
756-24 shall also be the duty of an existing district within the Trinity
756-25 River watershed to file with the board information regarding the
756-26 district's planned improvements so that the authority may make
757-1 recommendations to the commission within 60 days from the date the
757-2 district files the information.
757-3 (b) To the extent that the creation of a conservation
757-4 district or the prosecution of the planned improvements of a
757-5 conservation district is in harmony with the objectives of the
757-6 authority, it shall be the duty of the authority to cooperate in
757-7 every practical manner with the sponsors of the proposed or
757-8 existing conservation district in the prosecution of the proposed
757-9 improvements. It shall be the duty of the authority to encourage
757-10 the improvements in local areas where the expense of the project is
757-11 to be borne principally by the local property owners. To the
757-12 extent that the authority is financially capable of cooperating and
757-13 to the extent that the local agency will be performing a service
757-14 that is the duty of the authority, the authority shall, within the
757-15 discretion of the board, cooperate financially in the improvements
757-16 of the conservation district.
757-17 (c) The authority, within its ability, is authorized to
757-18 cooperate with a conservation district, or with any other municipal
757-19 or public agency in the Trinity River watershed, in providing a
757-20 water supply, to the extent that such project is feasible, in such
757-21 a manner that the needs of the district, municipality, or public
757-22 agency are fully met, but with provision that water not needed for
757-23 such purposes will continue to be available for the uses and
757-24 purposes of the authority. The board is authorized to issue the
757-25 authority's bonds for the purpose of cooperating in water supply
757-26 projects.
758-1 Sec. 275.031. SOIL CONSERVATION. (a) Notwithstanding any
758-2 other provisions of this chapter, the authority shall have no
758-3 control over soil conservation districts created in any county or
758-4 counties of its territory but may:
758-5 (1) assist in the accomplishment and coordination of
758-6 storm waters, floodwaters, and unappropriated flow waters
758-7 throughout the Trinity River watershed consistent with the
758-8 objectives of the soil conservation districts in the watershed
758-9 area;
758-10 (2) assist in the conservation of soil and other
758-11 surface resources against destructive erosion to prevent the
758-12 increase of flood danger incident to erosion and to prevent
758-13 sedimentation and siltation of lands, channels, reservoirs, and
758-14 coastal waters, including aiding and assisting in the work of upper
758-15 stream soil and water conservation and flood prevention projects by
758-16 the State Soil and Water Conservation Board;
758-17 (3) assist in upstream watershed projects of a soil
758-18 conservation district, particularly those projects above the
758-19 Navarro Mills, Italy, and Bardwell reservoir sites and the major
758-20 reservoir program on Richland and Chambers creeks; or
758-21 (4) encourage and, when requested, aid financially in
758-22 the construction of any upstream project or program planned or
758-23 promoted by a soil conservation district on the Trinity River
758-24 watershed below the watersheds of Upper Keechi Creek and Elkhart
758-25 Creek and in the completion of upstream programs planned by the
758-26 soil conservation districts in the Trinity River watershed above
759-1 and including the watersheds of Upper Keechi Creek and Elkhart
759-2 Creek.
759-3 (b) The authority shall have no power to control or direct
759-4 and shall have no supervisory responsibility to determine the
759-5 feasibility of, and may not negotiate, deal, or contract with
759-6 federal government agencies with regard to, federal projects under
759-7 the Watershed Protection and Flood Prevention Act (16 U.S.C.
759-8 Section 1001 et seq.), as amended, or any other federal law, in
759-9 which the federal projects' problems relating to water are merely
759-10 incidental to soil conservation projects and which federal projects
759-11 the State Soil and Water Conservation Board promotes and supervises
759-12 and with regard to which projects the board has the responsibility
759-13 and authority to deal with the federal governmental agencies on
759-14 behalf of the state.
759-15 Sec. 275.032. CREATION OF WATER CONTROL AND IMPROVEMENT
759-16 DISTRICT. If the electors of a defined area or areas acting
759-17 jointly within the authority desire, the area or areas may become a
759-18 water control and improvement district for the purpose of
759-19 independently providing, operating, and maintaining improvements
759-20 designed peculiarly to serve the defined area. The defined area
759-21 contained in the authority may constitute a water control and
759-22 improvement district under the applicable provision of Chapter 51.
759-23 Similarly, any other political subdivision of the state contained
759-24 in whole or in part in the authority may independently provide,
759-25 maintain, and operate works peculiarly designed to benefit the
759-26 political subdivision. The works and the operation of the works
760-1 shall be constructed and operated in a manner that will conform to
760-2 the authority's master plan to the greatest practicable degree.
760-3 Sec. 275.033. RIGHTS OF MUNICIPALITIES AND OTHERS. Nothing
760-4 in this chapter shall be construed to diminish, or in any other
760-5 manner affect, the right of a municipality or other political
760-6 subdivision, person, firm, or corporation to operate a water supply
760-7 system or to drill or operate wells using groundwater.
760-8 Sec. 275.034. COOPERATION WITH AGENCIES. The authority is
760-9 authorized specifically to cooperate with any agency situated
760-10 within the boundaries of the authority to the extent of paying the
760-11 costs of local improvements that will have the effect of relieving
760-12 the authority of any duty the authority might have for providing
760-13 the improvements, to the extent that the authority has money or
760-14 revenues available for the improvements and when in the opinion of
760-15 the board cooperation or contribution is justified.
760-16 Sec. 275.035. ADDITIONAL PROVISIONS REGARDING CONTRACTS AND
760-17 FUNDING. (a) The authority may make contracts with the United
760-18 States and its agencies, the state and its agencies, all municipal
760-19 corporations, political subdivisions, and districts, and private
760-20 persons. The authority may obtain loans from and accept grants
760-21 from the United States and its agencies and from the state and its
760-22 agencies and may participate in and be the beneficiary of any plan
760-23 that is evolved by the state or federal government for guaranteeing
760-24 or otherwise subsidizing the obligations of the authority;
760-25 provided, however, that a contract may not be entered into between
760-26 the authority and the federal government for navigation purposes to
761-1 any point on the Trinity River north of Ellis County, unless the
761-2 contract provides for construction and operation of the navigation
761-3 facilities to a point in Tarrant County.
761-4 (b) Without limitation as to the exercise of the general
761-5 powers of the authority as provided by Subsection (a), the
761-6 authority has the right to acquire from the United States
761-7 government through the secretary of the army, or from any other
761-8 official of the United States government authorized to make such
761-9 contracts, unsold conservation storage at the several multipurpose
761-10 dams constructed by the army within or available to the Trinity
761-11 River watershed. The authority may acquire additional conservation
761-12 storage that may be provided at any such dam.
761-13 (c) The authority may use any contract authorized by this
761-14 section as the sole basis or as a supplement to the basis for
761-15 securing the bonds of the authority.
761-16 Sec. 275.036. WATER CONSERVATION, STORAGE, PROCUREMENT,
761-17 DISTRIBUTION, AND SUPPLY. In addition to all other powers, the
761-18 authority may construct, acquire, equip, acquire storage rights at,
761-19 and operate dams and reservoirs that in the opinion of the board
761-20 are useful in carrying out the powers conferred on the authority,
761-21 whether a dam is designed to serve a single purpose or several
761-22 purposes permitted under this chapter. The authority is authorized
761-23 to provide water supply lines, water purification, and pumping
761-24 facilities. The authority may execute contracts with
761-25 municipalities in the state substantially in the manner prescribed
761-26 by Section 402.020, Local Government Code, for districts organized
762-1 or created pursuant to Section 59, Article XVI, Texas Constitution,
762-2 and may execute water supply contracts with other users of water.
762-3 Standby service, as well as the actual delivery of water, is
762-4 included in the services for which the authority may contract, and
762-5 for which it may make charges. If a dam is constructed that will
762-6 result in the impairment of gravity drainage of water from lands
762-7 protected by a levee in existence at the time this chapter becomes
762-8 effective, the authority shall, at its cost, make provision for the
762-9 installation, maintenance, and operation of pumping facilities or
762-10 provide a gravity system for the drainage of the land.
762-11 Sec. 275.037. PROTECTION OF RIGHTS. (a) The authority, in
762-12 carrying out the powers and duties secured to it under this chapter
762-13 and in the operation of any water development or conservation
762-14 projects under this chapter, shall act in a manner not to impair
762-15 the flow of the Trinity River to the detriment of the vested water
762-16 rights of users downstream. The authority shall not store storm
762-17 waters, floodwaters, and flow waters that are then needed by any
762-18 downstream appropriators to satisfy the amount of water authorized
762-19 to be appropriated by presently existing and valid water permits
762-20 and certified filings. If the authority stores waters in violation
762-21 of this subsection, the downstream appropriators may require by any
762-22 lawful means the release by the authority of the storm waters,
762-23 floodwaters, and flow waters so stored.
762-24 (b) Nothing in this chapter shall have the effect of
762-25 altering, changing, or impairing any rights or privileges existing
762-26 on September 6, 1955, to appropriate and use water from the Trinity
763-1 River. Nothing in this chapter shall have the effect of altering,
763-2 changing, or impairing any rights or privileges existing on
763-3 September 6, 1955, to apply to the commission for, and if approved
763-4 by the commission to retain or obtain, permits to appropriate and
763-5 use water from the Trinity River.
763-6 (c) The authority shall have the responsibility, both
763-7 financial and otherwise, for the construction of a saltwater
763-8 barrier with barge lock in the Trinity River at a location and of a
763-9 design approved by the Chambers-Liberty Counties Navigation
763-10 District that will protect the users of fresh water for irrigation
763-11 purposes.
763-12 Sec. 275.038. AUTHORITY DEPOSITORY. (a) The board shall
763-13 designate one or more banks within the authority to serve as
763-14 depository for the funds of the authority. All funds of the
763-15 authority shall be deposited in the depository bank or banks except
763-16 that funds pledged to pay bonds may be deposited with the trustee
763-17 bank named in the trust agreement, and except that funds shall be
763-18 remitted to the bank of payment for the payment of the principal of
763-19 and interest on bonds. To the extent that funds in the depository
763-20 banks and the trustee bank are not insured by the Federal Deposit
763-21 Insurance Corporation, the funds shall be secured in the manner
763-22 provided by law for the security of county funds.
763-23 (b) Before designating a depository bank or banks, the board
763-24 shall issue a notice stating the time and place when and where the
763-25 board will meet for that purpose and inviting the banks in the
763-26 authority to submit applications to be designated depositories.
764-1 The term of service for depositories shall be prescribed by the
764-2 board. The notice must be published one time in a newspaper or
764-3 newspapers published in the authority and specified by the board.
764-4 (c) At the time mentioned in the notice of the meeting, the
764-5 board shall consider the applications and the management and
764-6 condition of the banks filing the applications and shall designate
764-7 as depositories the bank or banks that offer the most favorable
764-8 terms and conditions for the handling of the funds of the authority
764-9 and that the board finds have proper management and are in
764-10 condition to warrant handling of authority funds. Membership on
764-11 the board of an officer or director of a bank shall not disqualify
764-12 the bank from being designated as depository.
764-13 (d) If no applications are received by the time stated in
764-14 the notice of the meeting, the board shall designate a bank or
764-15 banks within or outside the authority based on terms and conditions
764-16 the board finds advantageous to the authority.
764-17 Sec. 275.039. PROTECTION OF PROPERTIES AND WATER SUPPLY.
764-18 The authority shall have the same power to make provision for the
764-19 protection of the properties and water supply of the authority as
764-20 is provided by general law for water control and improvement
764-21 districts.
764-22 Sec. 275.040. EMPLOYEES. The board shall have full power to
764-23 employ agents, attorneys, engineers, and other employees that the
764-24 board considers necessary. Without limitation of the generality of
764-25 the employment power the board may employ fiscal agents or advisers
764-26 in connection with the authority financing program and in
765-1 connection with the issuance of authority bonds.
765-2 Sec. 275.041. ACQUISITION, SALE, OR EXCHANGE OF PROPERTY.
765-3 (a) The authority may acquire within or outside the boundaries of
765-4 the authority property, real and personal, including easements,
765-5 through purchase, gift, or exchange, that the board considers
765-6 necessary to accomplish the objectives of the authority and may
765-7 purchase the properties and facilities of any other district within
765-8 the authority created under Section 52, Article III, or Section 59,
765-9 Article XVI, Texas Constitution, and assume the indebtedness of
765-10 such properties and facilities.
765-11 (b) The board shall have the right to sell or exchange
765-12 property if within its discretion the sale or exchange is in the
765-13 best interests of the authority.
765-14 Sec. 275.042. ACQUISITION OF WATER. (a) The authority
765-15 shall acquire water appropriation permits directly from the
765-16 commission and may purchase permits from owners of permits. The
765-17 authority may purchase water, or a water supply, from any person,
765-18 firm, corporation, or public agency or from the United States or
765-19 its agencies.
765-20 (b) Nothing in this chapter shall impair the authority
765-21 granted the commission under the general laws of the state to
765-22 prescribe rates governing the sale of surface water by or to the
765-23 authority.
765-24 Sec. 275.043. EMINENT DOMAIN. (a) For the purpose of
765-25 carrying out any power or authority conferred by this chapter the
765-26 authority may acquire land, property, and easements within the
766-1 authority, including land above the probable high-water line around
766-2 any reservoir, by condemnation in the manner provided by Chapter
766-3 21, Property Code. The authority is declared to be a municipal
766-4 corporation within the meaning of Section 21.021(c), Property Code.
766-5 The amount of and character of interest in land and easements thus
766-6 to be acquired shall be determined by the board; provided, however,
766-7 that the authority shall only acquire the land, property, and
766-8 easements reasonably necessary.
766-9 (b) If the authority, in the exercise of the power of
766-10 eminent domain or power of relocation or any other power granted
766-11 under this chapter, makes necessary the relocation, raising,
766-12 rerouting, changing of grade, or alteration of construction of any
766-13 highway, railroad, electric transmission line, telephone or
766-14 telegraph properties and facilities, or pipeline, the relocation,
766-15 raising, rerouting, changing of grade, or alteration of
766-16 construction shall be accomplished at the sole expense of the
766-17 authority.
766-18 Sec. 275.044. SCOPE OF AUTHORITY POWERS. No provision of
766-19 this chapter is intended to or shall in any manner impair or change
766-20 any of the powers, rights, or privileges existing on September 6,
766-21 1955, or conferred before that time on the North Texas Municipal
766-22 Water District, Tarrant County Water Control & Improvement District
766-23 No. 1, the Chambers-Liberty Counties Navigation District, or the
766-24 municipalities within the authority area, but each of the districts
766-25 and municipalities shall have, keep, and retain all the powers
766-26 conferred by law and otherwise rightfully acquired on and by the
767-1 district or municipality, notwithstanding anything in this chapter
767-2 to the contrary.
767-3 Sec. 275.045. LIMITATIONS ON AUTHORITY. (a) The powers,
767-4 authority, and duties granted to the authority in this chapter
767-5 shall be applicable only in the counties expressly named in Section
767-6 275.003, and in no other county or counties of this state,
767-7 notwithstanding anything in this chapter to the contrary.
767-8 (b) The authority or jurisdiction of the authority shall be
767-9 confined to counties enumerated in Sections 275.003 and 275.004(c).
767-10 Counties or parts of counties within the Trinity River watershed
767-11 that are not mentioned in those sections are outside the
767-12 jurisdiction and authority of the authority and are not affected by
767-13 the provisions of this chapter.
767-14 Sec. 275.046. RIPARIAN RIGHTS. No provision of this chapter
767-15 shall be construed to affect, alter, or impair riparian rights.
767-16 CHAPTER 276. UPPER COLORADO RIVER AUTHORITY
767-17 Sec. 276.001. CREATION. (a) A conservation and reclamation
767-18 district to be known as the "Upper Colorado River Authority" is
767-19 created. The authority is a governmental agency and a body politic
767-20 and corporate.
767-21 (b) The authority is created under and is essential to
767-22 accomplish the purposes of Section 59(a), Article XVI, Texas
767-23 Constitution, including, to the extent authorized by this chapter,
767-24 the control, storing, preservation, and distribution of the waters
767-25 of the Upper Colorado River and its tributaries for irrigation,
767-26 power, and other useful purposes, the reclamation and irrigation of
768-1 arid, semiarid, and other lands needing irrigation, and the
768-2 conservation and development of the forests, water and
768-3 hydroelectric power of the state. Nothing in this chapter or in
768-4 any other law shall be construed as authorizing the authority to
768-5 levy or collect taxes or assessments or to create any indebtedness
768-6 payable out of taxes or assessments or in any way to pledge the
768-7 credit of the state.
768-8 Sec. 276.002. DEFINITIONS. In this chapter:
768-9 (1) "Authority" means the Upper Colorado River
768-10 Authority.
768-11 (2) "Board" means the board of directors of the
768-12 authority.
768-13 (3) "Director" means a member of the board.
768-14 Sec. 276.003. TERRITORY. The authority includes all the
768-15 territory within the boundaries of Coke and Tom Green counties.
768-16 Sec. 276.004. POWERS AND DUTIES. (a) Except as expressly
768-17 limited by this chapter, the authority has all the powers, rights,
768-18 privileges, and functions conferred by general law on any district
768-19 or districts created pursuant to Section 59, Article XVI, Texas
768-20 Constitution, and as provided by this section.
768-21 (b) The authority may control, store, and preserve, within
768-22 the boundaries of the authority, the waters of the Colorado River
768-23 and its tributaries for any useful purpose and may use, distribute,
768-24 and sell those waters within the boundaries of the authority for
768-25 any such purposes.
768-26 (c) The authority may sell and distribute water outside the
769-1 boundaries of the authority to any municipality for domestic,
769-2 municipal, and irrigation purposes and to any person, firm, or
769-3 corporation for municipal purposes or irrigation and may construct
769-4 flumes, irrigation ditches, pipelines, and storage reservoirs
769-5 outside the authority for such purposes.
769-6 (d) The authority may develop and generate waterpower and
769-7 electric energy within the boundaries of the authority and may
769-8 distribute and sell waterpower and electric energy within or
769-9 outside the boundaries of the authority, but such use shall be
769-10 subordinate and inferior to all requirements for irrigation.
769-11 (e) The authority may prevent or aid in the prevention of
769-12 damage to persons or property from the waters of the Colorado River
769-13 and its tributaries.
769-14 (f) The authority may forest and reforest and aid in the
769-15 foresting and reforesting of the watershed area of the Colorado
769-16 River and its tributaries and may prevent and aid in the prevention
769-17 of soil erosion and floods within the watershed area.
769-18 (g) The authority may acquire by purchase, lease, or gift or
769-19 in any other manner, other than by condemnation, and may maintain,
769-20 use, and operate property of any kind, real, personal, or mixed, or
769-21 any interest in property, within or outside the boundaries of the
769-22 authority, necessary or convenient to the exercise of the powers,
769-23 rights, privileges, and functions conferred on the authority by
769-24 this chapter.
769-25 (h) The authority may acquire by condemnation property of
769-26 any kind, real, personal, or mixed, or any interest in property,
770-1 within or outside the boundaries of the authority, necessary or
770-2 convenient to the exercise of the powers, rights, privileges, and
770-3 functions conferred on the authority by this chapter. The
770-4 authority may condemn property in the manner provided by general
770-5 law with respect to condemnation or, at the option of the
770-6 authority, in the manner provided by the statutes relating to
770-7 condemnation by districts organized under general law pursuant to
770-8 Section 59, Article XVI, Texas Constitution.
770-9 (i) The authority may, subject to the provisions of this
770-10 chapter, sell or otherwise dispose of property of any kind, real,
770-11 personal, or mixed, or any interest in property, that is not
770-12 necessary to carrying on the business of the authority.
770-13 (j) The authority may overflow and inundate any public lands
770-14 and public property and may require the relocation of roads and
770-15 highways in the manner and to the extent permitted to districts
770-16 organized under general law pursuant to Section 59, Article XVI,
770-17 Texas Constitution.
770-18 (k) The authority may construct, extend, improve, maintain,
770-19 and reconstruct, or cause to be constructed, extended, improved,
770-20 maintained, and reconstructed, and may use and operate facilities
770-21 of any kind necessary or convenient to the exercise of its powers,
770-22 rights, privileges, and functions.
770-23 (l) The authority may sue and be sued in its corporate name.
770-24 (m) The authority may make bylaws for the management and
770-25 regulation of its affairs.
770-26 (n) The authority may adopt, use, and alter a corporate
771-1 seal.
771-2 (o) The authority may appoint officers, agents, and
771-3 employees and may prescribe their duties and fix their
771-4 compensation.
771-5 (p) The authority may make contracts and execute instruments
771-6 necessary or convenient to the exercise of the powers, rights,
771-7 privileges, and functions conferred on the authority by this
771-8 chapter.
771-9 (q) The authority may borrow money for its corporate
771-10 purposes and may borrow money and accept grants from the United
771-11 States and, in connection with such loan or grant, may enter into
771-12 such agreements as the United States or such corporation or agency
771-13 may require. The authority may make and issue negotiable bonds for
771-14 funds borrowed in the manner and to the extent provided by Section
771-15 276.014. Nothing in this chapter shall be construed to authorize
771-16 the issuance of any bonds, notes, or other evidences of
771-17 indebtedness of the authority except as specifically provided by
771-18 this chapter, and no issuance of bonds, notes, or other evidences
771-19 of indebtedness of the authority, except as specifically provided
771-20 by this chapter, shall ever be authorized except by an act of the
771-21 legislature.
771-22 (r) The authority may do any other acts or things necessary
771-23 or convenient to the exercise of the powers, rights, privileges, or
771-24 functions conferred on the authority by this chapter or any other
771-25 act or law.
771-26 Sec. 276.005. REVENUE BONDS. The authority and the Brazos
772-1 River Authority, originally created by Chapter 13, Special Laws,
772-2 Acts of the 41st Legislature, 2nd Called Session, 1929, may issue
772-3 negotiable revenue bonds secured only by pledge of the amounts
772-4 granted or donated by the state or out of any other current
772-5 revenues of the authority in such amount as may be authorized by
772-6 the board of such authority, which amounts shall be paid to the
772-7 legal holders of such bonds.
772-8 Sec. 276.006. LIMITATIONS OF AUTHORITY. (a)
772-9 Notwithstanding any rights or permits issued by the commission or
772-10 its predecessor agency that are held or acquired by the authority,
772-11 the impounding and use of the floodwaters of the Colorado River or
772-12 its tributaries for the generation of hydroelectric power by the
772-13 authority or anyone who may succeed to the rights and privileges
772-14 conferred on the authority by this chapter are subject to the
772-15 rights of a person, municipal corporation, or body politic that is
772-16 impounding or putting to beneficial use the waters for the purposes
772-17 set forth in Section 11.024(1)-(3) if the person, municipal
772-18 corporation, or body politic:
772-19 (1) has received a permit for the use from the
772-20 commission; or
772-21 (2) is permitted to impound water for the purposes
772-22 described by this subsection.
772-23 (b) Nothing in this chapter shall be construed to subject to
772-24 condemnation by the authority or any successors, or by anyone who
772-25 may succeed to the rights and privileges conferred on the authority
772-26 by this chapter, any waters:
773-1 (1) impounded or to be impounded within or outside the
773-2 authority under any law authorizing water to be impounded or under
773-3 any permits granted to a municipal corporation or body politic; or
773-4 (2) impounded or permitted to be impounded or used
773-5 outside the authority under permits granted to any person.
773-6 (c) Nothing in this chapter shall be construed as depriving
773-7 any person or municipality of the right to impound the waters of
773-8 the Colorado River or its tributaries for domestic or municipal
773-9 purposes or as repealing any law granting such rights to persons
773-10 and municipalities.
773-11 (d) The rights of the authority to impound, use, and sell
773-12 the waters of the Colorado River and its tributaries for the
773-13 generation of hydroelectric power are subordinate and inferior to
773-14 the rights of:
773-15 (1) cities and towns situated within the watershed of
773-16 the Colorado River and its tributaries to build dams and impound
773-17 floodwaters for municipal purposes; and
773-18 (2) any citizen of Texas, or bodies politic, to build
773-19 dams and impound the floodwaters within the watershed of the
773-20 Colorado River and its tributaries for domestic purposes and for
773-21 the purposes of irrigation.
773-22 (e) The title to any rights, properties, licenses,
773-23 franchises, or permits acquired, or to be acquired, by the
773-24 authority shall be subject to the limitations imposed by Subsection
773-25 (d).
773-26 Sec. 276.007. BOARD OF DIRECTORS; QUORUM; VOTING
774-1 REQUIREMENTS. (a) The powers, rights, privileges, and functions
774-2 of the authority shall be exercised by a board of nine directors.
774-3 (b) Each director must be a resident and freehold property
774-4 taxpayer of the state. Three of the directors must be resident
774-5 citizens of Tom Green County, three must be resident citizens of
774-6 Coke County, and three must be resident citizens of counties
774-7 contiguous to the authority or in any county any part of which may
774-8 be within 25 miles of the authority.
774-9 (c) All of the directors shall be appointed by the governor
774-10 with the advice and consent of the senate. Directors are appointed
774-11 for staggered terms of six years, with three directors' terms
774-12 expiring on February 1 of each odd-numbered year. At the
774-13 expiration of the term of a director, a successor shall be
774-14 appointed by the governor.
774-15 (d) Each director shall hold office until the expiration of
774-16 the term for which the director was appointed and until a successor
774-17 is appointed and has qualified, unless removed sooner as provided
774-18 by this chapter. A director may be removed by the governor for
774-19 inefficiency, neglect of duty, or misconduct in office, after at
774-20 least 10 days' written notice of the charges against the director
774-21 and an opportunity to be heard in person or by counsel at a public
774-22 hearing. A vacancy resulting from the death, resignation, or
774-23 removal of a director shall be filled by the governor for the
774-24 unexpired term.
774-25 (e) Each director shall qualify by taking the official oath
774-26 of office prescribed by general statute.
775-1 (f) Until the adoption of bylaws fixing the time and place
775-2 of regular meetings and the manner in which special meetings may be
775-3 called, meetings of the board shall be held at such times and
775-4 places as five of the directors may designate in writing. Five
775-5 directors constitute a quorum at any meeting.
775-6 (g) Except as otherwise provided in this chapter or in the
775-7 bylaws, all actions may be taken by the affirmative vote of a
775-8 majority of the directors present at any meeting, except that an
775-9 affirmative vote of at least five directors is required to
775-10 authorize or ratify a contract that involves an amount greater than
775-11 $10,000 or that is to run for a period longer than one year, the
775-12 issuance of bonds, notes, or other evidence of indebtedness, or
775-13 amendment of the bylaws.
775-14 Sec. 276.008. OFFICERS; EMPLOYEES. (a) The board shall
775-15 select a secretary, who shall keep true and complete records of all
775-16 proceedings of the board. Until the appointment of a secretary, or
775-17 in the event of the secretary's absence or inability to act, a
775-18 secretary pro tempore shall be selected by the board.
775-19 (b) The board shall select a chair. The chair is the chief
775-20 executive officer of the authority.
775-21 (c) The board shall select a treasurer, who may also hold
775-22 the office of secretary.
775-23 (d) The officers have the powers and duties, hold office for
775-24 the term, and are subject to removal in the manner provided in the
775-25 bylaws. The board shall set the compensation of the officers.
775-26 (e) The board may appoint officers, agents, and employees,
776-1 may set their compensation and term of office and the method by
776-2 which they may be removed, and may delegate to them the power and
776-3 duties it determines appropriate.
776-4 Sec. 276.009. DISBURSEMENT OF FUNDS; SURETY BONDS. (a) The
776-5 funds of the authority may be disbursed only on checks, drafts,
776-6 orders, or other instruments signed by the persons authorized by
776-7 the bylaws or a resolution concurred in by not less than five
776-8 directors.
776-9 (b) The chair, the treasurer, and all other officers,
776-10 agents, and employees of the authority charged with the collection,
776-11 custody, or payment of any funds of the authority shall give bond
776-12 conditioned on the faithful performance of their duties and an
776-13 accounting for all funds and property of the authority coming under
776-14 their control.
776-15 (c) The bonds shall be in a form and amount and with a
776-16 surety (by a surety company authorized to do business in the state)
776-17 approved by the board.
776-18 (d) The premiums on the bonds shall be paid by the authority
776-19 and charged as an operating expense. The bonds shall be payable to
776-20 the board for the use and benefit of the authority.
776-21 Sec. 276.010. AUTHORITY OFFICE; RECORDS. (a) The general
776-22 offices of the authority shall be located by vote of a majority of
776-23 the board. The county in which the general offices are located
776-24 shall constitute the domicile of the authority. The general
776-25 offices shall be in the charge of the chair.
776-26 (b) The authority shall keep complete and accurate accounts
777-1 conforming to approved methods of bookkeeping.
777-2 (c) The accounts and all contracts, documents, and records
777-3 of the authority shall be kept at the principal office. The
777-4 accounts and contracts shall be open to public inspection at all
777-5 reasonable times.
777-6 (d) The board shall cause to be made and completed, within
777-7 90 days after the end of each calendar year, an audit of the books
777-8 of account and financial records of the authority for that calendar
777-9 year. The audit shall be made by an independent certified public
777-10 accountant or firm of certified public accountants.
777-11 (e) Copies of a written report of the audit, certified to by
777-12 the accountant or accountants, shall be placed and kept on file
777-13 with the comptroller, with the commission, and at the principal
777-14 office of the authority and shall be open to public inspection at
777-15 all reasonable times.
777-16 Sec. 276.011. CONFLICT OF INTEREST; PENALTY. A director,
777-17 officer, agent, or employee of the authority may not have an
777-18 interest, directly or indirectly, in any contract for the purchase
777-19 of any property or construction of any work by or for the
777-20 authority. If a director, officer, agent, or employee of the
777-21 authority is or becomes interested in a contract described by this
777-22 section, the person shall be guilty of a felony and on conviction
777-23 shall be subject to a fine in an amount not to exceed $10,000 or to
777-24 confinement in the state penitentiary for not less than one year or
777-25 more than 10 years, or both a fine and confinement.
777-26 Sec. 276.012. RATES AND CHARGES. (a) The board shall
778-1 establish and collect rates and other charges for the sale or use
778-2 of water, water connections, power, electric energy, or other
778-3 services sold, furnished, or supplied by the authority. The fees
778-4 and charges must be reasonable and nondiscriminatory and sufficient
778-5 to produce revenues adequate, in addition to funds received from
778-6 tax diversion, to:
778-7 (1) pay all expenses necessary to the operation and
778-8 maintenance of the properties and facilities of the authority;
778-9 (2) pay the interest on and principal of all bonds
778-10 issued under this chapter as the interest and principal become due
778-11 and payable;
778-12 (3) pay all sinking fund and reserve fund payments
778-13 agreed to be made with respect to bonds and payable out of
778-14 revenues, as the payments become due and payable; and
778-15 (4) fulfill the terms of any agreements made with the
778-16 holders of bonds or with any person in their behalf.
778-17 (b) Out of the revenues that may be received in excess of
778-18 those required for the purposes specified in Subsection (a), the
778-19 board may, in its discretion:
778-20 (1) establish a reasonable depreciation and emergency
778-21 fund;
778-22 (2) retire, by purchase and cancellation or
778-23 redemption, bonds issued under this chapter; or
778-24 (3) apply the excess revenues to any corporate
778-25 purpose.
778-26 (c) The rates and charges of the authority may not be in
779-1 excess of what may be necessary to fulfill the obligations imposed
779-2 on the authority by this chapter. Nothing in this section shall be
779-3 construed as depriving the state of its power to regulate and
779-4 control fees or charges to be collected for the use of water, water
779-5 connections, power, electric energy, or other service; provided,
779-6 however, that the state pledges to and agrees with the purchasers
779-7 and successive holders of the bonds issued under this chapter that
779-8 the state will not limit or alter the power vested in the authority
779-9 by this chapter to establish and collect the fees and charges as
779-10 will produce revenues sufficient to pay the items specified in
779-11 Subsection (a) or in any way impair the rights or remedies of the
779-12 holders of the bonds, or of any person in their behalf, until the
779-13 bonds, together with the interest on the bonds and on unpaid
779-14 installments of interest and all costs and expenses in connection
779-15 with any action or proceedings by or on behalf of the bondholders
779-16 and all other obligations of the authority in connection with the
779-17 bonds are fully met and discharged.
779-18 Sec. 276.013. PAYMENT OF DEBTS. Each indebtedness,
779-19 liability, or obligation of the authority for the payment of money,
779-20 however entered into or incurred and whether arising from contract,
779-21 implied contract, or otherwise, shall be payable solely:
779-22 (1) out of the revenues received by the authority with
779-23 respect to its properties, including funds received by reason of
779-24 diversion of taxes, subject to any prior lien on the revenues
779-25 conferred by any resolution previously adopted authorizing the
779-26 issuance of bonds as provided in this chapter; or
780-1 (2) if the board so determines, out of the proceeds of
780-2 sale by the authority of bonds payable solely from revenues.
780-3 Sec. 276.014. ISSUANCE OF BONDS. (a) The authority may
780-4 issue bonds as provided by this section for any corporate purpose,
780-5 not to exceed $6 million in aggregate principal amount. Any
780-6 additional amount of bonds must be authorized by an act of the
780-7 legislature.
780-8 (b) Bonds may be:
780-9 (1) sold for cash at public or private sale, at such
780-10 price or prices as the board determines, provided that the interest
780-11 cost of the money received for the bonds, computed to maturity in
780-12 accordance with standard bond tables in general use by banks and
780-13 insurance companies, shall not exceed six percent per year; or
780-14 (2) issued on such terms as the board determines in
780-15 exchange for property of any kind, real, personal or mixed, or any
780-16 interest in property, that the board determines necessary or
780-17 convenient for any corporate purpose; or
780-18 (3) issued in exchange for like principal amounts of
780-19 other obligations of the authority, matured or unmatured.
780-20 (c) The proceeds of sale of bonds shall be deposited in a
780-21 bank or banks or trust company or trust companies and shall be paid
780-22 out pursuant to such terms and conditions as may be agreed on
780-23 between the authority and the purchasers of the bonds.
780-24 (d) Bonds must be authorized by a resolution of the board
780-25 concurred in by at least five members. Bonds must bear such date
780-26 or dates; mature at such time or times; bear interest at such rate
781-1 or rates, not exceeding six percent per year, payable annually or
781-2 semiannually; be in such denominations; be in such form, either
781-3 coupon or registered; carry such registration privileges as to
781-4 principal only or as to both principal and interest and as to
781-5 exchange of coupon bonds for registered bonds, or vice versa, and
781-6 exchange of bonds of one denomination for bonds of other
781-7 denominations; be executed in such manner; and be payable at such
781-8 place or places within or outside the state, as the resolution
781-9 provides.
781-10 (e) A resolution authorizing bonds may contain provisions,
781-11 which shall be part of the contract between the authority and the
781-12 purchasers and successive holders of the bonds:
781-13 (1) reserving the right to redeem the bonds at the
781-14 time or times, in the amount and at the prices, not exceeding 105
781-15 percent of the principal amount of the bonds plus accrued interest,
781-16 as may be provided in the resolution;
781-17 (2) providing for the setting aside of sinking funds
781-18 or reserve funds and the regulation and disposition of the funds;
781-19 (3) pledging, to secure the payment of the principal
781-20 of and interest on the bonds and of the sinking fund or reserve
781-21 fund payments agreed to be made with respect to the bonds, all or
781-22 any part of the gross or net revenues received by the authority
781-23 with respect to the property, real, personal or mixed, to be
781-24 acquired or constructed with the bonds or the proceeds of the
781-25 bonds, or all or part of the gross or net revenues received by the
781-26 authority from any source;
782-1 (4) prescribing the purposes to which the bonds or any
782-2 bonds later issued, or the proceeds of the bonds, may be applied;
782-3 (5) agreeing to set and collect rates and charges
782-4 sufficient to produce revenues adequate to pay the items specified
782-5 in Section 276.012 (a) and prescribing the use and disposition of
782-6 all revenues;
782-7 (6) prescribing limitations on the issuance of
782-8 additional bonds and on the agreements that may be made with the
782-9 purchasers and successive holders of such bonds;
782-10 (7) relating to the construction, extension,
782-11 improvement, reconstruction, operation, maintenance, and repair of
782-12 the properties of the authority and the carrying of insurance, on
782-13 all or any part of the properties, covering loss or damage or loss
782-14 of use and occupancy resulting from specified risks;
782-15 (8) setting the procedure, if any, by which, if the
782-16 authority so desires, the terms of any contract with the holders of
782-17 the bonds may be amended or abrogated, the amount of bonds the
782-18 holders of which must consent to the amendment or abrogation, and
782-19 the manner in which such consent may be given;
782-20 (9) providing for the execution and delivery by the
782-21 authority to a bank or trust company authorized by law to accept
782-22 trusts, or to the United States or any officer or agency of the
782-23 United States, of indentures and agreements for the benefit of the
782-24 holders of the bonds setting forth all of the agreements authorized
782-25 by this chapter to be made with or for the benefit of the holders
782-26 of the bonds and other provisions as may be customary in indentures
783-1 or agreements; and
783-2 (10) making other provisions, not inconsistent with
783-3 the provisions of this chapter, as the board may approve.
783-4 Sec. 276.015. DEFAULT PROCEDURES. (a) A resolution
783-5 authorizing the issuance of bonds and any indenture or agreement
783-6 entered into pursuant to the resolution may include provisions
783-7 regarding a default on the:
783-8 (1) payment of the interest on any bonds as the
783-9 interest becomes due and payable;
783-10 (2) payment of the principal of any bonds as they
783-11 become due and payable, whether at maturity, by call for
783-12 redemption, or otherwise; or
783-13 (3) performance of an agreement made with the
783-14 purchasers or successive holders of any bonds.
783-15 (b) If a default described by Subsection (a) has occurred
783-16 and has continued for a period, if any, prescribed by the
783-17 resolution authorizing the issuance of the bonds, the trustee under
783-18 the indenture or indentures entered into with respect to the bonds
783-19 authorized by the resolution, or, if there is no indenture, a
783-20 trustee appointed in the manner provided in the resolution by the
783-21 holders of 25 percent in aggregate principal amount of the bonds
783-22 authorized by the resolution and then outstanding may, and on the
783-23 written request of the holders of 25 percent in aggregate principal
783-24 amount of the bonds authorized by the resolution and then
783-25 outstanding shall, in the trustee's own name but for the equal and
783-26 proportionate benefit of the holders of all the bonds, and with or
784-1 without having possession of the bonds:
784-2 (1) by mandamus or other suit, action, or proceeding
784-3 at law or in equity, enforce all rights of the holders of the
784-4 bonds;
784-5 (2) bring suit on the bonds or the appurtenant
784-6 coupons;
784-7 (3) by action or suit in equity, require the authority
784-8 to account as if it were the trustee of an express trust for the
784-9 bondholders;
784-10 (4) by action or suit in equity, enjoin any acts or
784-11 things which may be unlawful or in violation of the rights of the
784-12 holders of the bonds; or
784-13 (5) after such notice to the authority as the
784-14 resolution may provide, declare the principal of all of the bonds
784-15 due and payable, and if all defaults have been made good, then with
784-16 the written consent of the holders of 25 percent in aggregate
784-17 principal amount of the bonds then outstanding, annul the
784-18 declaration and its consequences; provided, however, that the
784-19 holders of more than a majority in principal amount of the bonds
784-20 authorized by the resolution and then outstanding shall, by written
784-21 instrument delivered to the trustee, have the right to direct and
784-22 control any and all action taken or to be taken by the trustee
784-23 under this section.
784-24 (c) A resolution, indenture, or agreement relating to bonds
784-25 may provide that in a suit, action, or proceeding under this
784-26 section, the trustee, whether or not all of the bonds have been
785-1 declared due and payable and with or without possession of any of
785-2 the bonds, shall be entitled as of right to the appointment of a
785-3 receiver who may enter and take possession of all or part of the
785-4 properties of the authority, operate and maintain the properties,
785-5 and set, collect, and receive rates and charges sufficient to
785-6 provide revenues adequate to pay the items set forth in Section
785-7 276.012(a) and the costs and disbursements of the suit, action, or
785-8 proceeding and apply such revenues in conformity with the
785-9 provisions of this chapter and the resolution authorizing the
785-10 bonds.
785-11 (d) In a suit, action, or proceeding by a trustee under this
785-12 section, the reasonable fees, counsel fees, and expenses of the
785-13 trustee and of the receiver or receivers, if any, shall constitute
785-14 taxable disbursements, and all costs and disbursements allowed by
785-15 the court shall be a first charge on any revenues pledged to secure
785-16 the payment of the bonds.
785-17 (e) Subject to the provisions of the constitution, the
785-18 courts of the county of domicile of the authority shall have
785-19 jurisdiction of a suit, action, or proceeding under this section by
785-20 a trustee on behalf of the bondholders and of all property involved
785-21 in the suit, action, or proceeding.
785-22 (f) In addition to the powers specifically provided by this
785-23 section, the trustee shall have all powers necessary or appropriate
785-24 for the exercise of the powers specific or incident to the general
785-25 representation of the bondholders in the enforcement of their
785-26 rights.
786-1 Sec. 276.016. BOND APPROVAL AND REGISTRATION. (a) Before
786-2 any bonds may be sold by the authority, a certified copy of the
786-3 proceedings for the issuance of the bonds, including the form of
786-4 the bonds, together with any other information that the attorney
786-5 general may require, shall be submitted to the attorney general,
786-6 and if the attorney general finds that the bonds have been issued
786-7 in accordance with law, the attorney general shall approve the
786-8 bonds and execute a certificate to that effect, which shall be
786-9 filed in the office of the comptroller and recorded in a record
786-10 kept for that purpose. The comptroller shall register the bonds if
786-11 the attorney general has filed with the comptroller the certificate
786-12 approving the bonds and the proceedings for the issuance of the
786-13 bonds as provided in this section. Bonds may not be issued until
786-14 the bonds have been registered by the comptroller.
786-15 (b) Bonds approved by the attorney general, registered by
786-16 the comptroller, and issued in accordance with the proceedings so
786-17 approved are valid and binding obligations of the authority and are
786-18 incontestable for any cause from and after the time of
786-19 registration.
786-20 Sec. 276.017. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued
786-21 by the authority under the provisions of this chapter are
786-22 negotiable instruments within the meaning of the laws of the state.
786-23 Sec. 276.018. ADDITIONAL POWERS RELATING TO CONTRACTS,
786-24 RULES, AND REGULATIONS. The authority may, without intending by
786-25 this provision to limit any powers granted to the authority by this
786-26 chapter, enter into and carry out contracts or establish or comply
787-1 with rules and regulations concerning labor and materials and other
787-2 related matters, in connection with any project, as the authority
787-3 considers desirable or as requested by the United States or any
787-4 corporation or agency created, designated, or established by the
787-5 United States that may assist in the financing of the project.
787-6 Sec. 276.019. REDEMPTION OF BONDS. The authority may, out
787-7 of funds available for the purpose, purchase bonds issued by it at
787-8 a price not exceeding the redemption price applicable at the time
787-9 of the purchase, or if the bonds are not redeemable, at a price not
787-10 exceeding the principal amount of the bonds plus accrued interest.
787-11 All bonds so purchased shall be canceled and no bonds shall ever be
787-12 issued in lieu of the canceled bonds.
787-13 Sec. 276.020. DISPOSITION OF PROPERTY. (a) Nothing in this
787-14 chapter shall be construed as authorizing the authority, and the
787-15 authority may not be authorized, to mortgage or otherwise encumber
787-16 any of its property of any kind, real, personal, or mixed, or any
787-17 interest in property, or to acquire any property or interest
787-18 subject to a mortgage or conditional sale, provided that this
787-19 section shall not be construed as preventing the pledging of the
787-20 revenues of the authority as authorized by this chapter.
787-21 (b) Nothing in this chapter shall be construed as
787-22 authorizing the sale, lease, or other disposition of any property
787-23 or interest by the authority or by any receiver of any of its
787-24 properties or through any court proceeding or otherwise; provided,
787-25 however, that the authority may sell for cash any property or
787-26 interest with an aggregate value not exceeding $50,000 in any one
788-1 year if the board, by the affirmative vote of six of its members,
788-2 has determined that the property or interest is not necessary or
788-3 convenient to the business of the authority and has approved the
788-4 terms of the sale. Except by sale as expressly authorized in this
788-5 section, no such property or interest shall ever come into the
788-6 ownership or control, directly or indirectly, of any person, firm,
788-7 or corporation other than a public authority created under the laws
788-8 of the state.
788-9 (c) All property of the authority shall be at all times
788-10 exempted from forced sale, and nothing in this chapter shall be
788-11 construed to authorize the sale of any of the property of the
788-12 authority under any judgment rendered in any suit, and such sales
788-13 are prohibited.
788-14 Sec. 276.021. PUBLIC ACCESS. (a) The authority may not
788-15 prevent the free public use of its lands for recreation purposes
788-16 and for hunting and fishing except:
788-17 (1) at points where, in the opinion of the board, the
788-18 use would interfere with the proper conduct of the business of the
788-19 authority; or
788-20 (2) in connection with the enforcement of sanitary
788-21 regulations or the protection of the public's health.
788-22 (b) Public rights-of-way traversing the areas adjacent to
788-23 the areas to be flooded by the impounded waters shall remain open
788-24 as a way of free public passage to and from the lakes created, and
788-25 no charge shall ever be made to the public for the right to engage
788-26 in hunting, fishing, boating, or swimming on the lakes.
789-1 (c) If any citizen of the state notifies the attorney
789-2 general that this section has not been complied with, the attorney
789-3 general shall institute the proper legal proceedings to require the
789-4 authority or its successor to comply with the provisions of this
789-5 section.
789-6 (d) If any of the land owned by the authority bordering the
789-7 lakes to be created under the authority of this chapter is sold by
789-8 the authority, the authority shall retain in each tract a strip 80
789-9 feet wide abutting the high-water line of the lake for the purpose
789-10 of passage and use by the public for public sports and amusements;
789-11 provided, however, that this subsection shall not apply to any
789-12 sales of land by the authority to any state or federal agency to be
789-13 used for game or fish sanctuaries or preserves or for propagation
789-14 purposes.
789-15 Sec. 276.022. BONDS EXEMPT FROM TAXATION. Bonds and
789-16 interest on bonds issued under the provisions of this chapter are
789-17 exempt from taxation, except inheritance taxes, by the state or by
789-18 any municipal corporation, county, or other political subdivision
789-19 or taxing district of the state.
789-20 Sec. 276.023. SOURCE OF AUTHORITY. This chapter, without
789-21 reference to other statutory provisions of the state, constitutes
789-22 full authority for the authorization and issuance of bonds under
789-23 this chapter, and no other act or law with regard to the
789-24 authorization or issuance of obligations or the deposit of the
789-25 proceeds of such obligations or in any way impeding or restricting
789-26 the carrying out of the acts authorized by this chapter to be done
790-1 shall be construed as applying to any proceedings taken or acts
790-2 done under this chapter.
790-3 Sec. 276.024. CONSTRUCTION. This chapter and all of its
790-4 terms and provisions shall be liberally construed to effectuate the
790-5 purposes set forth in this chapter.
790-6 CHAPTER 277. UPPER GUADALUPE RIVER AUTHORITY
790-7 Sec. 277.001. CREATION. (a) A conservation and reclamation
790-8 district to be known as the "Upper Guadalupe River Authority" is
790-9 created. The authority is a governmental agency and a body politic
790-10 and corporate.
790-11 (b) The authority is created under and is essential to
790-12 accomplish the purposes of Section 59, Article XVI, Texas
790-13 Constitution.
790-14 Sec. 277.002. DEFINITIONS. In this chapter:
790-15 (1) "Authority" means the Upper Guadalupe River
790-16 Authority.
790-17 (2) "Board" means the board of directors of the
790-18 authority.
790-19 (3) "Director" means a member of the board.
790-20 Sec. 277.003. TERRITORY. The authority comprises all of the
790-21 territory contained within and has the same boundaries as Kerr
790-22 County.
790-23 Sec. 277.004. FINDING OF BENEFIT. The legislature finds and
790-24 determines that all of the land and other property included within
790-25 the area and boundaries of the authority will benefit from the
790-26 works and projects that are to be accomplished by the authority
791-1 pursuant to the powers conferred by the provisions of Section 59,
791-2 Article XVI, Texas Constitution, and that the authority is created
791-3 to serve a public use and benefit.
791-4 Sec. 277.005. GRANTS AND CONTRACTS. The authority may
791-5 accept grants from or contract with the United States government or
791-6 the state, any agency, arm, branch, department, or political
791-7 subdivision of the United States or the state, any municipality,
791-8 city, or town, or any public or private corporation, firm, or
791-9 person in connection with the exercise of or in aid of any right,
791-10 power, privilege, function, or authority of the authority.
791-11 Sec. 277.006. POWERS APPLICABLE TO WATER CONTROL AND
791-12 IMPROVEMENT DISTRICTS. The authority shall exercise all of the
791-13 rights, powers, privileges, authority, and duties conferred and
791-14 imposed by the general laws of the state applicable to water
791-15 control and improvement districts created under authority of
791-16 Section 59, Article XVI, Texas Constitution. To the extent that
791-17 general laws applicable to water control and improvement districts
791-18 may be in conflict or inconsistent with the provisions of this
791-19 chapter, the provisions of this chapter prevail. All general laws
791-20 of the state applicable to water control and improvement districts
791-21 created under authority of Section 59, Article XVI, Texas
791-22 Constitution, are adopted and incorporated by reference with the
791-23 same effect as if incorporated in full in this chapter.
791-24 Sec. 277.007. NO HEARING ON EXCLUSION OF LAND OR PLAN OF
791-25 TAXATION REQUIRED. (a) The board is not required to call or hold
791-26 a hearing on the exclusions of land or other property from the
792-1 authority.
792-2 (b) The board is not required to call or hold a hearing on
792-3 the adoption of a plan of taxation. The ad valorem plan of
792-4 taxation shall be used by the authority.
792-5 Sec. 277.008. BOARD OF DIRECTORS. (a) All powers of the
792-6 authority shall be exercised by a board of nine directors. Each
792-7 director serves for a term of office as provided by this section
792-8 and until a successor is appointed and has qualified. A person may
792-9 not be appointed a director unless the person is 21 years of age or
792-10 older and is a resident of Kerr County and owns land in the county.
792-11 Each director shall subscribe the oath of office and shall give
792-12 bond in the amount of $5,000 for the faithful performance of the
792-13 person's duties as director. The cost of the bond shall be borne
792-14 by the authority. A majority of directors constitutes a quorum.
792-15 (b) The directors are appointed by the governor. The
792-16 directors are appointed for staggered six-year terms, with three
792-17 directors' terms expiring on February 1 of each odd-numbered year.
792-18 The governor shall fill a vacancy on the board by appointment for
792-19 the unexpired term.
792-20 (c) The board shall elect from among its members a
792-21 president, a vice president, and a secretary and other officers the
792-22 board considers necessary. The president is the chief executive
792-23 officer of the authority and the presiding officer of the board and
792-24 has the same right to vote as any other director. The vice
792-25 president shall perform all duties and exercise all power conferred
792-26 by this chapter or general law on the president when the president
793-1 is absent or fails or declines to act. The secretary shall keep
793-2 and sign the minutes of the meetings of the board. In the absence
793-3 of the secretary from any board meeting, a secretary pro tempore
793-4 shall be named for that meeting, who may exercise all the duties
793-5 and powers of the secretary for the meeting, sign the minutes of
793-6 the meeting, and attest all orders passed or other action taken at
793-7 the meeting. The secretary is the custodian of all minutes and
793-8 records of the authority.
793-9 (d) The board shall appoint all necessary engineers,
793-10 attorneys, auditors, and other employees.
793-11 (e) The board shall adopt a seal for the authority.
793-12 Sec. 277.009. CONSTRUCTION BONDS. Before issuing any
793-13 construction bonds, the authority shall submit plans and
793-14 specifications for the project to the commission for approval in
793-15 the manner required by Section 49.181, and the authority's project
793-16 and improvements during the course of construction shall be subject
793-17 to inspection in the manner provided by Section 49.182.
793-18 Sec. 277.010. AD VALOREM TAX; ELECTION. (a) The authority
793-19 may levy an ad valorem tax not to exceed 50 cents per $100
793-20 valuation if:
793-21 (1) a petition signed by five percent of the resident
793-22 qualified property taxpaying voters in the county is presented to
793-23 the board requesting that an election be called to determine
793-24 whether:
793-25 (A) a specified rate of tax may be levied by the
793-26 authority; or
794-1 (B) a tax not to exceed a specified rate may be
794-2 levied by the authority;
794-3 (2) the board calls an election to submit the question
794-4 to the resident qualified voters; and
794-5 (3) a majority of the qualified voters participating
794-6 in the election vote in favor of the tax.
794-7 (b) The election shall be called, conducted, and held, the
794-8 returns of the election shall be made, and all notices of the
794-9 election shall be given in the same mode and manner as required by
794-10 general law for bond elections in water control and improvement
794-11 districts.
794-12 (c) If a majority of the qualified voters participating in
794-13 the election vote in favor of the tax, the board may levy the
794-14 amount, or an amount not to exceed the amount, of tax specified in
794-15 the petition and order calling the election, provided the amount of
794-16 the tax does not exceed 50 cents per $100 valuation. The tax
794-17 authorized to be levied may be used to accomplish the purposes for
794-18 which the authority is created or may be pledged, without the
794-19 necessity of another election, to the payment of tax bonds for such
794-20 purposes in accordance with the general law governing water control
794-21 and improvement districts. The tax bonds must mature within 40
794-22 years of their date. Other limitations of this chapter do not
794-23 apply to the amount of bonds to be issued by the authority provided
794-24 the bonds and the interest on the bonds may be paid within the
794-25 limits of the tax authorized. The bonds shall be issued in
794-26 conformity with the law governing water control and improvement
795-1 districts except as modified by the provisions of this chapter.
795-2 (d) If taxes are levied, the values of the property in the
795-3 authority shall be the same values that are shown on the county tax
795-4 rolls, and the provisions of the general law with reference to
795-5 water control and improvement districts shall govern the
795-6 appointment, qualification, and duties of the authority's tax
795-7 assessor.
795-8 Sec. 277.011. BOND ELECTIONS. (a) If the constitution or
795-9 this chapter requires a bond proposition to be approved by a
795-10 majority of the qualified voters voting at an election called for
795-11 that purpose before bonds or other obligations may be issued or
795-12 taxes levied, the election must be called and held and notice must
795-13 be given as required by this section.
795-14 (b) An election to authorize the issuance of bonds is not
795-15 required if:
795-16 (1) the bonds to be issued are payable from revenues
795-17 of a system or facilities of the authority and the board finds and
795-18 determines that the proceeds of the bonds proposed to be issued
795-19 will provide less than $2 million for the purpose of acquiring land
795-20 or acquiring or constructing the facilities, excluding the cost of
795-21 issuance, interest during construction, and any initial deposit
795-22 from those proceeds to a reserve fund; and
795-23 (2) the proceeds of the bonds will be used to:
795-24 (A) acquire land or an interest in land and to
795-25 construct or acquire new facilities in the nature of a new project
795-26 or undertaking for the authority, subject to the limitation that
796-1 with respect to a new project or undertaking for the authority only
796-2 one series of bonds may be issued to provide for the project unless
796-3 additional bonds are approved at an election by a majority of the
796-4 participating qualified voters;
796-5 (B) provide funds for repairs, expansion, and
796-6 improvement of the existing facilities of the authority; or
796-7 (C) provide for the completion of construction
796-8 of a project for which the authority has previously issued bonds
796-9 approved at an election.
796-10 (c) Except as provided by Subsection (b), bonds may not be
796-11 issued by the authority unless an election is held in the authority
796-12 to approve issuance of the bonds and the issuance of the bonds is
796-13 approved by a majority of the qualified voters voting at the
796-14 election. The board must issue the order calling the election not
796-15 less than 15 or more than 90 days before the date the election is
796-16 to be held.
796-17 (d) Notice of an election under Subsection (c) must be given
796-18 by posting a copy of the notice of election in at least three
796-19 public places within the authority at least 14 days before the date
796-20 of the election and by publishing the notice at least once a week
796-21 for two consecutive weeks in a newspaper with general circulation
796-22 in the authority, the date of the first publication to be at least
796-23 14 days before the election.
796-24 Sec. 277.012. APPLICABILITY OF OTHER LAW. (a) The
796-25 authority is a conservation and reclamation district under Section
796-26 59, Article XVI, Texas Constitution, and shall conserve and develop
797-1 the natural resources of this state within the authority. The
797-2 authority may exercise the powers necessary to accomplish each of
797-3 the rights and duties specified in Section 59, Article XVI, Texas
797-4 Constitution, as provided by Chapters 49 and 54. The authority may
797-5 construct or acquire those projects that the board determines are
797-6 needed and incident to or related to the performance of those
797-7 rights and duties.
797-8 (b) The authority is a district under Chapter 30, and that
797-9 chapter applies to the authority except to the extent that Chapter
797-10 30 conflicts with this chapter, in which case this chapter
797-11 prevails. All cities, public agencies, and other political
797-12 subdivisions are authorized to contract with the authority in any
797-13 manner authorized by Chapter 30, provided that any city may
797-14 contract with the authority in the manner authorized by Section
797-15 30.030(c). The authority and all cities, public agencies, and
797-16 other political subdivisions contracting with the authority have
797-17 all of the rights and authority relating to the control, storage,
797-18 preservation, transmission, treatment, and disposition of storm
797-19 water, floodwater, water of rivers and streams, and groundwater
797-20 that are granted, permitted, and authorized by Chapter 30.
797-21 Sec. 277.013. POWER TO BORROW MONEY. (a) The authority may
797-22 borrow money for any corporate purpose or combination of corporate
797-23 purposes pursuant to the methods and procedures specifically
797-24 provided by this chapter or by general law.
797-25 (b) The board, without the necessity of an election, may
797-26 borrow money on negotiable notes of the authority to be paid solely
798-1 from the revenues of the authority derived from the ownership of
798-2 all or a designated part of the authority's works, plant,
798-3 improvements, facilities, equipment, or water rights, after
798-4 deduction of the reasonable cost of maintaining and operating the
798-5 facilities.
798-6 (c) A note issued under this section may not exceed $55
798-7 million in the aggregate.
798-8 (d) The notes may mature over a term of not more than 40
798-9 years and bear interest at a rate of not more than 10 percent.
798-10 (e) The notes may be first or subordinate lien notes within
798-11 the discretion of the board, but no obligation may be a charge on
798-12 the property of the authority or on the taxes levied or collected
798-13 by the authority, but shall be a charge on the revenues pledged for
798-14 the payment of the obligation. No part of the obligation may be
798-15 paid from the taxes levied or collected by the authority.
798-16 (f) Section 49.153 does not apply to any revenue note issued
798-17 by the authority.
798-18 Sec. 277.014. VALIDITY OF BONDS. If bonds or refunding
798-19 bonds have been approved by the attorney general, registered by the
798-20 comptroller, and issued by the authority, the bonds or refunding
798-21 bonds are negotiable, legal, valid, and binding obligations of the
798-22 authority and are incontestable for any cause.
798-23 Sec. 277.015. EMINENT DOMAIN. If the authority, in the
798-24 exercise of the power of eminent domain or police power or any
798-25 other power, requires the relocation, raising, lowering, rerouting,
798-26 change in grade, or alteration in construction of any railroad,
799-1 electric transmission, telegraph, or telephone lines, conduits,
799-2 poles, properties, or facilities, or pipelines, all such
799-3 relocation, raising, lowering, rerouting, changes in grade, or
799-4 alteration of construction shall be accomplished at the sole
799-5 expense of the authority. In this section, "sole expense" means
799-6 the actual cost of relocation, raising, lowering, rerouting, change
799-7 in grade, or alteration of construction in providing comparable
799-8 replacement without enhancement of the facilities, after deducting
799-9 the net salvage value derived from the old facility.
799-10 Sec. 277.016. CERTAIN MUNICIPAL ANNEXATION PROVISIONS NOT
799-11 APPLICABLE. The authority is created notwithstanding any
799-12 conflicting provisions of Section 212.003, Local Government Code,
799-13 and Chapters 42 and 43, Local Government Code, and those provisions
799-14 have no application to the authority.
799-15 Sec. 277.017. AUTHORITY DEPOSITORY. The board shall select
799-16 a bank or trust company in the state to act as depository of the
799-17 proceeds of the bonds or revenues derived from the operation of the
799-18 facilities of the authority. The depository shall furnish
799-19 indemnity bonds or pledge securities or meet other requirements as
799-20 determined by the board. The authority may select one or more
799-21 depositories.
799-22 Sec. 277.018. ADDITIONAL SPECIFIC POWERS. (a) The
799-23 authority has the right, power, privilege, function, and authority
799-24 to control, develop, store, and preserve the waters and floodwaters
799-25 of the Upper Guadalupe River and its tributaries within or outside
799-26 the boundaries of the authority for any beneficial or useful
800-1 purpose; to purchase, acquire, build, construct, improve, extend,
800-2 reconstruct, repair, and maintain all dams, structures, waterworks
800-3 systems, sanitary or storm sewer or drainage or irrigation systems,
800-4 buildings, waterways, pipelines, distribution systems, ditches,
800-5 lakes, ponds, reservoirs, plants, and recreational facilities for
800-6 public use and any other facilities or equipment in aid of such
800-7 purposes; to purchase or acquire the necessary sites, easements,
800-8 rights-of-way, land, or other properties necessary for those
800-9 purposes; and to do anything, by any practical means, that may be
800-10 necessary to the exercise of all of the rights, powers, privileges,
800-11 functions, and authority of the authority. The authority may sell
800-12 water and other services.
800-13 (b) As a necessary aid to the conservation, control,
800-14 preservation, and distribution of the waters and floodwaters of the
800-15 Upper Guadalupe River and its tributaries for beneficial use, the
800-16 authority may construct, own, and operate sewage gathering,
800-17 transmission, and disposal services, may charge for those services,
800-18 and may make contracts with municipalities and others in reference
800-19 to those services.
800-20 Sec. 277.019. ISSUANCE OF BONDS. (a) In addition to the
800-21 powers and purposes authorized by other statutory provisions
800-22 pertaining to water control and improvement districts created under
800-23 Section 59, Article XVI, Texas Constitution, the authority may
800-24 issue any kind of bonds or refunding bonds for any purposes
800-25 provided by this chapter and may provide and make payment for the
800-26 bonds and for necessary expenses in connection with the bonds.
801-1 (b) Bonds or refunding bonds may be sold at a price and
801-2 under terms determined by the board. Bonds and refunding bonds may
801-3 be sold at a private or public sale but may not be sold for less
801-4 than 95 percent of their face value. The authority may exchange
801-5 bonds or refunding bonds for property or facilities acquired by
801-6 purchase or in payment of the contract price of work done or
801-7 materials furnished or services furnished for the use and benefit
801-8 of the authority, but such exchange or payment may not be on a
801-9 basis of less than 95 percent of the face value of the bonds or
801-10 refunding bonds exchanged or used for payment as provided by this
801-11 subsection.
801-12 Sec. 277.020. DISSOLUTION OF AUTHORITY NOT REQUIRED. The
801-13 provisions of Sections 51.781-51.783 or any other statutory
801-14 provisions pertaining to the calling of a hearing for the
801-15 determination of the dissolution of a district where a bond
801-16 election has failed shall not apply to the authority, and the
801-17 authority shall continue to exist and have full power to function
801-18 and operate regardless of the outcome of a bond election. On the
801-19 failure of a bond election, a subsequent bond election may be
801-20 called after the expiration of 30 days from the date of the bond
801-21 election that failed.
801-22 Sec. 277.021. NOTICE OF ELECTIONS. Notice of all elections
801-23 may be signed by either the president or the secretary of the
801-24 authority.
801-25 Sec. 277.022. ELECTION RETURNS. The returns of all
801-26 elections may be canvassed by the board at any time within seven
802-1 days after an election or as soon thereafter as reasonably
802-2 practicable.
802-3 Sec. 277.023. EXEMPTION FROM TAXATION. The accomplishment
802-4 of the purposes of this chapter will benefit the people of this
802-5 state and improve their properties and industries, and the
802-6 authority in carrying out the purposes of this chapter will be
802-7 performing an essential public function under Section 59, Article
802-8 XVI, Texas Constitution, and shall not be required to pay any tax
802-9 or assessment on a project or any part of a project under this
802-10 chapter or on any purchases made by the authority, and the bonds
802-11 issued under this chapter and the transfer of and income from the
802-12 bonds, including the profits made on the sale of the bonds, shall
802-13 at all times be free from taxation within the state.
802-14 Sec. 277.024. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
802-15 DEPOSITS. Bonds and refunding bonds of the authority are legal,
802-16 eligible, and authorized investments for banks, savings and loan
802-17 associations, insurance companies, fiduciaries, trustees, and
802-18 guardians and for the sinking funds of cities, towns, villages,
802-19 counties, school districts, or other political corporations or
802-20 subdivisions of the state. The bonds and refunding bonds are
802-21 eligible to secure deposits of all public funds of cities, towns,
802-22 villages, counties, school districts, or other political
802-23 corporations or subdivisions of the state, and the bonds are lawful
802-24 and sufficient security for such deposits to the extent of their
802-25 face value when accompanied by all unmatured coupons.
803-1 CHAPTER 278. UPPER NECHES RIVER MUNICIPAL WATER AUTHORITY
803-2 Sec. 278.001. CREATION. (a) A conservation and reclamation
803-3 district to be known as the "Upper Neches River Municipal Water
803-4 Authority" is created. The authority is a governmental agency and
803-5 body politic and corporate.
803-6 (b) The authority is created under and is essential to
803-7 accomplish the purposes of Section 59, Article XVI, Texas
803-8 Constitution.
803-9 (c) The authority may exercise all rights, powers,
803-10 privileges, and functions as provided in this chapter and as may be
803-11 contemplated and implied by Section 59, Article XVI, Texas
803-12 Constitution, as well as those conferred by the general laws of the
803-13 state relating to water control and improvement districts except
803-14 where such laws are in conflict with the provisions of this
803-15 chapter.
803-16 Sec. 278.002. DEFINITIONS. In this chapter:
803-17 (1) "Authority" means the Upper Neches River Municipal
803-18 Water Authority.
803-19 (2) "Board" means the board of directors of the
803-20 authority.
803-21 (3) "Director" means a member of the board.
803-22 Sec. 278.003. TERRITORY. The area of the authority
803-23 comprises all territory contained within the corporate limits of
803-24 the city of Palestine, Anderson County, and no defect or
803-25 irregularity in the boundaries of that city or in any of the
803-26 proceedings relating to the annexation of territory to that city
804-1 shall ever affect the authority or any of its rights, powers,
804-2 privileges, or functions, it being affirmatively found and
804-3 determined by the legislature that all of the territory within the
804-4 limits of the city of Palestine, Anderson County, as well as all
804-5 other territory which later may be brought into the authority as
804-6 provided by Sections 278.007 and 278.008 shall comprise the
804-7 authority and that all of such territory will benefit from the
804-8 improvements and facilities to be constructed, acquired, or
804-9 otherwise furnished under this chapter.
804-10 Sec. 278.004. BOARD OF DIRECTORS. (a) The powers of the
804-11 authority shall be exercised by a board of directors. The
804-12 directors shall be appointed by the governor with the advice and
804-13 consent of the senate.
804-14 (b) Directors are appointed for staggered terms of six
804-15 years, with one-third of the directors' terms expiring on February
804-16 1 of each odd-numbered year. Directors serve until their
804-17 successors are appointed and have qualified. Any vacancy on the
804-18 board is filled by the governor as provided by this section.
804-19 (c) Three directors shall be appointed to the board from the
804-20 city of Palestine, Anderson County.
804-21 (d) If the city of Tyler, Smith County, becomes a part of
804-22 the authority by annexation as provided by Sections 278.007 or
804-23 278.008, a number of directors shall be appointed to the board from
804-24 that city equal to the combined number of directors appointed from
804-25 all other cities then members of the authority, and if the
804-26 membership of the board is increased after the entry of the city of
805-1 Tyler by the addition of directors from any other area, the number
805-2 of directors from the city of Tyler shall be increased so that the
805-3 number shall always equal one-half of the entire membership of the
805-4 board.
805-5 (e) If the city of Athens, Henderson County, becomes a part
805-6 of the authority by annexation as provided by Sections 278.007 or
805-7 278.008, three directors shall be appointed to the board from that
805-8 city.
805-9 (f) The additional directors to which the city of Tyler and
805-10 the city of Athens are entitled shall be appointed by the governor
805-11 with the advice and consent of the senate, with their respective
805-12 initial terms staggered and of such duration as will permit the
805-13 appointment of their successors at the same time as successors of
805-14 the other members then comprising the board, with one-third of the
805-15 number of directors to which each city is entitled to be appointed
805-16 from that city for each term. The governor, with the advice and
805-17 consent of the senate, shall appoint all successors to the
805-18 directors.
805-19 Sec. 278.005. QUALIFICATIONS OF BOARD MEMBERS. (a) To be
805-20 qualified for appointment to the board, a person must be a
805-21 qualified voter and property-owning taxpayer in the city from which
805-22 the person is appointed.
805-23 (b) A member of the governing body or an employee of a city
805-24 from which the person is appointed is not eligible to serve on the
805-25 board.
805-26 (c) Each director shall subscribe the constitutional oath of
806-1 office and give bond for the faithful performance of the director's
806-2 duties in the amount of $5,000.
806-3 Sec. 278.006. BOARD: ACTION; DUTIES; QUORUM; COMPENSATION;
806-4 EXPENSES. (a) The board shall perform official actions by
806-5 resolution. Two-thirds of the members of the board constitutes a
806-6 quorum for the transaction of any and all business of the
806-7 authority. A majority vote of those present shall be sufficient in
806-8 all official actions including final passage and enactment of all
806-9 resolutions.
806-10 (b) The board shall hold regular meetings at least once
806-11 every three months. The date of the meeting is to be established
806-12 in the authority's bylaws or by resolution of the board.
806-13 (c) The president or any two members of the board may call
806-14 special meetings as may be necessary in the administration of the
806-15 business of the authority; provided, however, that at least five
806-16 days before the date of the meeting, the secretary shall mail
806-17 notice of the meeting to the address that each director has on file
806-18 with the secretary. Notice of special meetings may be waived in
806-19 writing by any director.
806-20 (d) Each director is entitled to receive fees of office and
806-21 reimbursement of expenses as provided by Chapter 49.
806-22 (e) The board shall elect from among its members a president
806-23 of the authority. The president is the chief executive officer of
806-24 the authority and shall preside at the meetings of the board and
806-25 perform all other functions incident to the office.
806-26 (f) The board shall elect from among its members a vice
807-1 president. The vice president shall act as president in case of
807-2 the inability, absence, or failure of the president to act.
807-3 (g) The board shall elect a secretary, who may or may not be
807-4 chosen from among the members of the board. The secretary shall be
807-5 charged with the duty of seeing that all books and records of the
807-6 authority are properly kept.
807-7 Sec. 278.007. ADDITIONAL TERRITORY MAY BE ADDED. (a) Other
807-8 territory may be annexed to the authority as provided in this
807-9 section and Section 278.008.
807-10 (b) A petition for annexation must:
807-11 (1) be signed by 50 or a majority of the qualified
807-12 voters of the territory to be annexed who own taxable property in
807-13 the territory to be annexed and have duly rendered the property for
807-14 taxation to the city or county;
807-15 (2) be filed with the board; and
807-16 (3) describe the territory to be annexed by metes and
807-17 bounds or by other appropriate description, unless the territory is
807-18 the same as that of a city or town, in which event it shall be
807-19 sufficient to state that the territory to be annexed is the same as
807-20 that contained within the city or town.
807-21 (c) If the board finds that the petition is signed by the
807-22 required number of qualified persons and otherwise complies with
807-23 Subsection (b), that the annexation would be to the interest of the
807-24 territory to be annexed and the authority, and that the authority
807-25 will be able to render service to the territory to be annexed, the
807-26 board shall call an election in the territory to be annexed for the
808-1 purpose of submitting the proposition of whether the territory
808-2 shall be annexed to the authority; provided, however, that if
808-3 either the city of Tyler, Smith County, or the city of Athens,
808-4 Henderson County, files a petition for annexation to the authority
808-5 in the manner provided in this section, the petition shall be
808-6 granted and the city filing the petition shall be entitled to
808-7 annexation, subject to the other provisions of this section.
808-8 (d) Because railroad right-of-way, transmission lines, and
808-9 other property of electric, telephone, telegraph, and gas utilities
808-10 that are not situated within the defined limits of an incorporated
808-11 city or town will not benefit from the improvements, works, and
808-12 facilities that the authority is authorized to construct, railroad
808-13 right-of-way, transmission lines, or other property of electric,
808-14 telephone, telegraph, or gas utilities may not be annexed to the
808-15 authority unless the right-of-way, transmission lines, or other
808-16 property of electric, telephone, telegraph, and gas utilities is
808-17 contained within the limits of an incorporated city or town annexed
808-18 to the authority.
808-19 (e) Notice of the election, stating the date and places for
808-20 holding the election, the proposition to be voted on, and the
808-21 conditions under which the territory may be annexed, or making
808-22 reference to the resolution of the board for that purpose, must be
808-23 published once a week for two consecutive weeks in a newspaper
808-24 published in the territory to be annexed and designated by the
808-25 board. The first publication must appear at least 14 days before
808-26 the date of the election. If no newspaper is published in the
809-1 territory to be annexed, it shall be sufficient if notices are
809-2 posted at three public places in the territory to be annexed and
809-3 published at the times provided by this subsection in a newspaper
809-4 having general circulation in the territory.
809-5 (f) Only qualified electors who reside in the territory to
809-6 be annexed shall be qualified to vote in the election on the
809-7 proposition for annexation. As in the case of other elections to
809-8 be held under this chapter, the returns of the annexation election
809-9 shall be made to the board.
809-10 (g) The board shall canvass the returns of the election and
809-11 adopt a resolution declaring the results. If the resolution shows
809-12 that a majority of the votes cast are in favor of annexation, the
809-13 board shall enter an order annexing the territory to the authority,
809-14 and the annexation shall be incontestable except in the manner and
809-15 within the time for contesting elections under the Election Code.
809-16 A certified copy of the order shall be recorded in the deed records
809-17 of the county in which the annexed territory is situated.
809-18 Sec. 278.008. ANNEXATION OF TERRITORY AFTER BONDS OR TAXES
809-19 APPROVED. (a) If, before calling an election for the annexation
809-20 of territory, the authority to levy ad valorem taxes has been voted
809-21 in the authority, if bonds or other obligations supported wholly or
809-22 in part by ad valorem taxes have been issued and are outstanding,
809-23 or if bonds or other obligations so supported have been voted but
809-24 remain unsold, the procedure for annexation and the results of the
809-25 procedure shall be as provided by this section.
809-26 (b) On receipt of the petition for annexation as provided by
810-1 Sections 278.007(b) and (c), the board shall by appropriate
810-2 resolution or order call an election to be held in the territory to
810-3 be annexed and shall issue and publish notices as provided by
810-4 Section 278.007(e).
810-5 (c) The persons eligible to vote at the election shall be
810-6 qualified electors who reside in the territory to be annexed.
810-7 (d) In calling the election in the territory to be annexed,
810-8 the board shall submit as one joint proposition to be voted on in
810-9 the territory the question of whether the territory shall be
810-10 annexed and whether it shall assume its pro rata share of any ad
810-11 valorem taxes previously voted, of any bonds or other obligations
810-12 of the authority supported in whole or in part by ad valorem taxes
810-13 then outstanding and unpaid, and of any bonds or other obligations
810-14 so supported that have been voted but that remain unissued and
810-15 unsold.
810-16 (e) If the joint proposition submitted under Subsection (d)
810-17 receives a majority of the votes cast in the territory to be
810-18 annexed, the board shall enter an order or resolution annexing the
810-19 territory and declaring the assumption by the territory annexed of
810-20 ad valorem taxes and tax-supported bonds issued or authorized, and
810-21 the annexation and assumption shall be incontestable except in the
810-22 manner and within the time for contesting elections under the
810-23 Election Code.
810-24 Sec. 278.009. ASSUMPTION OF DEBT; TAXES. (a) After
810-25 territory is added to the authority, the board may call an election
810-26 over the entire authority for the purpose of determining whether
811-1 the entire authority as enlarged shall assume the taxes and
811-2 tax-supported obligations then outstanding and in force, and, in
811-3 the case of bonds, those voted but not yet sold, and whether ad
811-4 valorem taxes shall be levied on all taxable property within the
811-5 authority as enlarged for the payment of the obligations and bonds,
811-6 unless that proposition was favorably voted along with the
811-7 annexation election and becomes lawfully binding on the territory
811-8 annexed.
811-9 (b) Notice of the elections provided for in this section
811-10 must be given and the elections must be held in the same manner as
811-11 elections for the issuance of bonds as provided by this chapter.
811-12 Sec. 278.010. GENERAL MANAGER; EMPLOYEES. (a) The board
811-13 may employ and determine the compensation of a general manager for
811-14 the authority and may delegate to the general manager full power
811-15 and authority to manage and operate the affairs of the authority,
811-16 subject only to orders of the board. The board may also employ and
811-17 determine the compensation of such other employees as it considers
811-18 appropriate to the proper conduct of the authority's affairs,
811-19 including engineers, technical experts, attorneys, and assistants
811-20 to the authority's officers including the general manager. The
811-21 board may remove any employee.
811-22 (b) The general manager is the official treasurer of the
811-23 authority and has charge of its funds. The general manager shall
811-24 see that the funds are safely kept and shall account for the funds
811-25 to the board. The general manager shall give bond in an amount
811-26 required by the board, but in no event shall the amount be less
812-1 than $50,000.
812-2 Sec. 278.011. DISBURSEMENT OF FUNDS. The funds of the
812-3 authority shall be disbursed only on checks, drafts, orders, or
812-4 other instruments signed by the persons authorized by the bylaws
812-5 and resolutions of the board.
812-6 Sec. 278.012. CITIES AND TOWNS MAY GIVE FINANCIAL AID TO
812-7 AUTHORITY. In consideration of the fact that the authority may be
812-8 incurring obligations and making expenditures, before funds are
812-9 available to pay such obligations and expenditures, for the purpose
812-10 of providing funds needed to procure necessary engineering surveys
812-11 and the collection and compilation of data relating to general
812-12 conditions influencing the determination of the character and
812-13 extent of the improvements, works, and facilities essential to the
812-14 accomplishment of the purposes of the authority, any city or town
812-15 situated within the authority may expend funds or use its services
812-16 for such engineering surveys and data. Any city or town situated
812-17 within the authority may appropriate money from its general funds
812-18 or such other funds as may be legally available for the purpose and
812-19 donate and contribute money to the authority, and the authority may
812-20 contract with any such city or town to repay money advanced as a
812-21 loan to the authority.
812-22 Sec. 278.013. AUTHORITY OFFICE; RECORDS. A regular office
812-23 shall be established and maintained for the conduct of the
812-24 authority's business at a location to be determined by the board.
812-25 The board shall keep a true and full account of the proceedings of
812-26 its meetings and shall maintain its records in a secure manner.
813-1 Sec. 278.014. ACCOUNT RECORDS; AUDITS. (a) The board shall
813-2 keep complete and accurate accounts conforming to approved methods
813-3 of bookkeeping. The accounts and all contracts, documents, and
813-4 records of the authority shall be kept at the authority's principal
813-5 office and shall be open to public inspection at all reasonable
813-6 times.
813-7 (b) Within 90 days after the end of each calendar year, the
813-8 books of account and financial records of the authority for the
813-9 preceding calendar year shall be audited by an independent
813-10 certified public accountant. Copies of the written report of the
813-11 audit, certified to by the accountant, shall be placed and kept on
813-12 file at the office of the authority and shall be open to public
813-13 inspection at all reasonable times.
813-14 Sec. 278.015. AUTHORITY DEPOSITORY; METHOD OF SELECTION.
813-15 (a) The board shall designate one or more banks within the
813-16 authority to serve as depository for the funds of the authority.
813-17 All funds of the authority shall be deposited in the depository
813-18 bank or banks except funds pledged to pay bonds, which shall be
813-19 deposited with the trustee bank or paying agent named in the bond
813-20 proceedings and to the extent provided for in those proceedings.
813-21 To the extent that funds in the depository bank and the trustee
813-22 bank are not insured by the Federal Deposit Insurance Corporation
813-23 the funds shall be secured in the manner provided by law for the
813-24 security of county funds.
813-25 (b) Before designating a depository bank or banks, the board
813-26 shall issue a notice stating the time and place the board will meet
814-1 to designate a depository bank or banks and inviting the banks in
814-2 the authority to submit applications to be designated depositories.
814-3 The notice must be published one time in a newspaper or newspapers
814-4 published in the authority as specified by the board at least 10
814-5 days before the date of the board meeting.
814-6 (c) At the time mentioned in the notice, the board shall
814-7 consider the applications and the management and condition of the
814-8 banks filing them and shall designate as depositories the bank or
814-9 banks which offer the most favorable terms and conditions for the
814-10 handling of the funds of the authority and which the board finds
814-11 have proper management and are in condition to warrant handling the
814-12 funds of the authority.
814-13 (d) If no acceptable applications are received by the time
814-14 stated in the notice, the board shall designate some bank or banks
814-15 within or outside the authority on such terms and conditions as it
814-16 finds advantageous to the authority.
814-17 (e) The term of service for depositories shall be prescribed
814-18 by the board.
814-19 Sec. 278.016. POWERS AND DUTIES. (a) In addition to the
814-20 powers granted water control and improvement districts by general
814-21 law and in addition to the powers otherwise provided by this
814-22 chapter, the authority may exercise the powers, rights, privileges,
814-23 and functions provided by this section.
814-24 (b) The authority may store, control, conserve, protect,
814-25 distribute, and utilize storm waters and floodwaters and
814-26 unappropriated flow waters of the Neches River and such portions of
815-1 its tributaries as are located within Smith, Cherokee, Anderson,
815-2 and Henderson counties, except that portion of the drainage area of
815-3 Flat Creek in Henderson County which lies west of presently
815-4 designated Farm-to-Market Road 607 leading from LaRue through
815-5 Leagueville to Brownsboro, by construction of a dam or dams across
815-6 that river and its tributaries within the counties or as otherwise
815-7 provided by the applicable provisions of this code in order that
815-8 the escape of any such waters, without first obtaining from them
815-9 the maximum of public benefit, may be prevented in so far as it is
815-10 feasible and practicable within the means of the authority, except
815-11 that the authority may not build a dam or dams outside the
815-12 boundaries of Smith, Cherokee, Anderson, and Henderson counties.
815-13 (c) The authority may acquire and develop underground
815-14 sources of water in such instances and to such extent as the board
815-15 may consider necessary and feasible in the conduct of its business
815-16 and affairs, but only within Smith, Cherokee, Anderson, and
815-17 Henderson counties. The authority may acquire by purchase,
815-18 contract, lease, gift, or any other lawful manner and may develop
815-19 all facilities within Smith, Cherokee, Anderson, and Henderson
815-20 counties considered necessary or useful for the purpose of
815-21 diverting, storing, controlling, conserving, protecting,
815-22 distributing, processing, and utilizing surface water or
815-23 groundwater and the transportation of such water for municipal,
815-24 domestic, industrial, and other useful purposes permitted by law.
815-25 The authority may not acquire any water rights in or exercise any
815-26 control over the water in that portion of the drainage area of Flat
816-1 Creek in Henderson County that lies west of Farm-to-Market Road 607
816-2 leading from LaRue through Leagueville to Brownsboro.
816-3 (d) The authority may acquire by purchase, construction,
816-4 lease, or gift or in any other lawful manner and may maintain, use,
816-5 and operate property of any kind, real, personal, or mixed, or any
816-6 interest in property, within and outside the boundaries of the
816-7 authority necessary to the exercise of the powers, rights,
816-8 privileges, and functions possessed by the authority under this
816-9 chapter.
816-10 (e) The authority may acquire by condemnation to the extent
816-11 and in the manner set forth and permitted by general law, including
816-12 Chapter 21, Property Code, any property or right in property
816-13 necessary to be acquired by the authority with respect to any
816-14 project that it is lawfully empowered to provide and that has been
816-15 approved by the commission or a predecessor agency under the
816-16 provisions of general law including the provisions of Sections
816-17 49.181 and 49.182; provided, however, that the authority may not
816-18 condemn any property or right in property that is owned by any
816-19 other political subdivision, city, or town of this state; and
816-20 provided further, that the authority may not condemn any property
816-21 lying outside of Smith, Cherokee, Anderson, and Henderson counties
816-22 except for the purpose of constructing necessary transportation
816-23 facilities to a purchaser of water from the authority.
816-24 (f) The authority may sell or otherwise dispose of excess
816-25 property of any kind, real, personal, or mixed, or any interest in
816-26 property not necessary to the operation of the authority; provided,
817-1 however, that in those cases in which the board considers the value
817-2 of such property to be in excess of $1,000, the property shall be
817-3 sold only after advertisement and competitive bidding.
817-4 (g) The authority may require the relocation of roads and
817-5 highways in the manner and to the extent permitted by general law
817-6 to districts organized under Section 59, Article XVI, Texas
817-7 Constitution. The actual cost of relocation of any roads,
817-8 highways, or railroads or electrical highlines, pipelines,
817-9 telephone and telegraph lines, or other utility lines in
817-10 furtherance of the purposes of this chapter and any damage incurred
817-11 in changing and adjusting the lines and grades of railroads or
817-12 highways or roads shall be paid by the authority.
817-13 (h) The authority may make contracts and execute all
817-14 instruments necessary or convenient to the exercise of the powers,
817-15 rights, privileges, and functions of the authority.
817-16 (i) The authority may make or cause to be made surveys and
817-17 engineering investigations for the information of the authority to
817-18 facilitate the accomplishment of the purposes for which it is
817-19 created.
817-20 (j) The authority may borrow money for its corporate
817-21 purposes and may borrow money and accept grants, gratuities, or
817-22 other support from the United States or the state or from any
817-23 corporation or agency created or designated by the United States or
817-24 the state and, in connection with any such loan, grant, or other
817-25 support, may enter into such arrangement with the United States or
817-26 the state, or such corporation or agency of either, as the
818-1 authority may consider advisable.
818-2 (k) The authority may make and issue negotiable bonds for
818-3 funds borrowed in the manner and to the extent provided by this
818-4 chapter and may contract in any manner required by law with regard
818-5 to loans, grants, or other support received from the United States
818-6 or the state or from any corporation or agency of either.
818-7 (l) The authority may make such contracts in the issuance of
818-8 bonds as are considered necessary to ensure the marketability of
818-9 the bonds.
818-10 (m) The authority may sue or be sued in its corporate
818-11 name.
818-12 (n) The authority may adopt, use, and alter a corporate
818-13 seal.
818-14 (o) The authority may make bylaws for the management and
818-15 regulation of its affairs.
818-16 (p) The authority may set and collect charges and rates for
818-17 water services furnished by it and may impose penalties for failure
818-18 to pay such charges and rates when due.
818-19 (q) The authority may cooperate with and enter into
818-20 contracts with cities, persons, firms, corporations, and public
818-21 agencies for the purpose of supplying and selling them water for
818-22 municipal, domestic, industrial, and other useful purposes
818-23 permitted by law; provided, however, that cities and areas
818-24 constituting the authority shall be accorded priority in the
818-25 allocation of the authority's available water, and the board shall
818-26 prescribe rules to effectuate this provision. A contract described
819-1 by this section may be on such terms and for such time as the
819-2 parties may agree, and it may provide that it shall continue in
819-3 effect until the authority's bonds specified in the contract and
819-4 refunding bonds issued in lieu of the bonds are fully paid. If the
819-5 authority pledges the proceeds of water contracts with its
819-6 constituent cities to the payment of any bonds supported in whole
819-7 or in part by revenues and issued by the authority to finance the
819-8 construction of a water supply or transportation facility for such
819-9 cities, the authority shall not be obligated to construct or
819-10 otherwise provide the facility to any constituent city that, for
819-11 any reason, fails to enter into such contract. If the authority
819-12 enters into a contract with the United States government or any of
819-13 its agencies for a source of water supply or for the furnishing of
819-14 any facilities necessary or useful to the authority in carrying out
819-15 its purposes, the contract entered into under authority of this
819-16 subsection may provide that the contract shall continue until the
819-17 authority has fully discharged all obligations incurred by it under
819-18 the terms of its contract with the United States government or its
819-19 agencies.
819-20 (r) The authority may contract with any city, district, or
819-21 governmental agency, including the United States government or any
819-22 of its agencies, for the rental or leasing of or for the operation
819-23 of their water production, water supply, and water filtration or
819-24 purification and water supply facilities for such consideration as
819-25 may be mutually agreeable.
819-26 (s) The authority may purchase water or a water supply from
820-1 any person, firm, corporation, or public agency or from the United
820-2 States government or any of its agencies.
820-3 (t) The authority may operate and maintain, with the consent
820-4 of the governing body of any city or town located within the
820-5 authority, any works, plants, or facilities of the city or town
820-6 deemed necessary to the accomplishment of the purposes for which
820-7 the authority is created.
820-8 (u) The authority may levy, assess, and collect ad valorem
820-9 taxes to provide funds necessary to construct or acquire, maintain,
820-10 and operate improvements, works, plants, and facilities deemed
820-11 essential and beneficial to the authority on a favorable majority
820-12 vote of the qualified electors voting at an election held for that
820-13 purpose within the authority and may also, when so authorized,
820-14 levy, assess, and collect taxes to provide funds adequate to defray
820-15 the cost of the maintenance, operation, and administration of the
820-16 authority. Elections for the voting of such taxes shall be ordered
820-17 by the board and shall be held and conducted as provided by this
820-18 chapter for elections for the issuance of bonds and the levy of
820-19 taxes in support of the bonds. When so levied such taxes, as well
820-20 as taxes authorized by this chapter to be levied in support of bond
820-21 indebtedness, constitute a lien on the property against which such
820-22 taxes are levied and assessed, and limitations shall not bar the
820-23 collection and enforcement thereof.
820-24 (v) The authority may do any and all acts or things
820-25 necessary to the exercise of the powers, rights, privileges, or
820-26 functions conferred on the authority or permitted by any other law.
821-1 Sec. 278.017. CONSTRUCTION OR PURCHASE CONTRACTS. A
821-2 contract requiring an expenditure of more than $25,000 shall not be
821-3 made until after publication of a notice to bidders once each week
821-4 for two weeks before the awarding of the contract. The notice is
821-5 sufficient if it states the time and place when and where the bids
821-6 will be opened and the general nature of the work to be done or the
821-7 material, equipment, or supplies to be purchased and states when
821-8 and on what terms copies of the plans and specifications may be
821-9 obtained. The publication shall be in a newspaper published in the
821-10 authority as designated by the board.
821-11 Sec. 278.018. BOND ISSUANCE. (a) For the purpose of
821-12 providing a source or sources of water supply for its cities or
821-13 towns and other users of water for municipal, domestic, and other
821-14 useful purposes permitted by law and for the purpose of carrying
821-15 out any other power or authority conferred by this chapter, the
821-16 authority may issue and sell negotiable bonds to be payable from
821-17 the net operating income and revenues of the authority received
821-18 from any or all of its properties, as the board may determine, or
821-19 from ad valorem taxes, or from both such revenues and taxes as are
821-20 pledged by the board; provided, however, that without limiting in
821-21 any way the amount of revenue-supported bonds that may be
821-22 authorized, issued, and sold by the authority for any authorized
821-23 purpose, the amount of bonds that the authority may issue and sell
821-24 supported in whole or in part by ad valorem taxes shall never
821-25 exceed the total principal amount of $6.5 million. All or any
821-26 portion of the limited amount may be issued and sold by the
822-1 authority for the purpose of providing funds with which to acquire
822-2 and construct the authority's Blackburn Crossing Project; to wit, a
822-3 dam and reservoir at or near the point on the Neches River commonly
822-4 known and referred to in the area as "Blackburn Crossing." On
822-5 completion of the ultimate acquisition and construction of the
822-6 Blackburn Crossing Project in accordance with plans and
822-7 specifications of the authority's engineers approved by the board,
822-8 including provisions for all property of every kind and character,
822-9 real, personal, or mixed, or any interest in property, necessary or
822-10 convenient for the full development of that project and including
822-11 any additions or modifications approved by the board and the
822-12 commission, no further bonds supported in whole or in part by ad
822-13 valorem taxes shall be issued or sold for any purpose. The
822-14 authority is empowered to acquire and construct the Blackburn
822-15 Crossing Project in phases or stages and all decisions in this
822-16 respect rest with the board. Within the limitations provided by
822-17 this section, the board is authorized to submit to elections and to
822-18 issue and sell all or any part of the bonds required to accomplish
822-19 the ultimate acquisition and construction of the Blackburn Crossing
822-20 Project at any stage of construction or development.
822-21 (b) Bonds must be authorized by resolution of the board,
822-22 bear the date or dates, mature at the time or times, and bear
822-23 interest at the rate or rates as the board determines. The bonds
822-24 shall be signed by the president and attested by the secretary and
822-25 shall have the seal of the authority impressed on the bonds. Bonds
822-26 may be sold at prices and under terms determined by the board to be
823-1 the most advantageous and reasonably obtainable; provided, however,
823-2 that the interest cost to the authority, calculated by use of
823-3 standard bond interest tables currently in use by insurance
823-4 companies and investment houses, may not exceed six percent per
823-5 year. Within the discretion of the board, bonds may be made
823-6 callable and subject to redemption prior to their maturity at the
823-7 times and prices as may be prescribed in the authorizing
823-8 resolution. Interest on all bonds shall be payable annually or
823-9 semiannually within the discretion of the board. Bonds may be
823-10 issued in one or more than one series and from time to time as
823-11 required in carrying out the purposes of this chapter. The bonds
823-12 must be in the form, either coupon or registered, must carry the
823-13 registration privileges as to principal only or as to both
823-14 principal and interest and as to exchange of coupon bonds for
823-15 registered bonds, or vice versa, and exchange of bonds of one
823-16 denomination for bonds of other denominations, and must be payable
823-17 at the place or places within or outside of this state as the board
823-18 determines and prescribes in the resolution authorizing the bonds.
823-19 (c) Bonds may be secured by a pledge of all or part of the
823-20 net revenues of the authority, of the net revenues of one or more
823-21 contracts made before or after the bonds are issued, or of other
823-22 revenues in the manner specified by resolution of the board. A
823-23 pledge may reserve the right, under conditions specified in the
823-24 pledge, to issue additional bonds that will be on a parity with or
823-25 subordinate to the bonds being issued. In this section, "net
823-26 revenues" means the gross revenues of the authority less the amount
824-1 necessary to pay the cost of maintaining and operating the
824-2 authority and its properties.
824-3 (d) If bonds are issued payable wholly or partially from ad
824-4 valorem taxes, the board shall levy a tax sufficient to pay the
824-5 bonds and the interest on the bonds as the bonds and interest
824-6 become due, but the rate of the tax for any year may be set after
824-7 giving consideration to the money received from the pledged
824-8 revenues available for the payment of principal and interest to the
824-9 extent and in the manner permitted by the resolution authorizing
824-10 the issuance of the bonds.
824-11 (e) If bonds or any other contract payable from revenues are
824-12 issued or entered into, the board shall set by contract, with all
824-13 cities, persons, firms, corporations, or public agencies that
824-14 contract with the board for a water supply or water facilities,
824-15 rates or compensation for water sold and services furnished by the
824-16 authority sufficient to pay the expenses of operating and
824-17 maintaining the authority and its facilities and to pay all such
824-18 obligations incurred by the authority as they mature, including
824-19 reserve and other funds as may be provided for the bonds or other
824-20 contracts under the terms of the bonds or contracts and as may be
824-21 provided in the resolution of the board pertaining to the bonds or
824-22 contracts.
824-23 (f) From the proceeds of the sale of bonds, the authority
824-24 may set aside an amount for the payment of interest expected to
824-25 accrue during construction and a reserve interest and sinking fund,
824-26 which provisions shall be made in the resolution authorizing the
825-1 bonds. Proceeds from the sale of bonds may also be used for the
825-2 payment of all expenses necessarily incurred in accomplishing the
825-3 purposes for which the authority is created, including expenses of
825-4 issuing and selling the bonds. Pending the use of bond proceeds
825-5 for the purpose for which the bonds were issued, the board may
825-6 invest the proceeds in obligations of the United States government.
825-7 (g) In the event of a default in the payment of principal of
825-8 or interest on bonds payable wholly or partially from revenues of
825-9 the authority, any court of competent jurisdiction in this state
825-10 may, on petition of the holders of 25 percent of the outstanding
825-11 bonds of the issue in default, appoint a receiver with authority to
825-12 collect and receive all income of the authority except taxes, to
825-13 employ and discharge agents and employees of the authority, to take
825-14 charge of the authority's funds on hand (except funds received from
825-15 taxes, unless commingled), and to manage the proprietary affairs of
825-16 the authority without consent or hindrance by the board. The
825-17 receiver may also be authorized to sell or make contracts for the
825-18 sale of water or to renew the contracts with the approval of the
825-19 court appointing the receiver.
825-20 (h) Bonds issued by the authority under this chapter are
825-21 negotiable instruments under the laws of this state.
825-22 (i) Before bonds are sold by the authority, a certified copy
825-23 of the proceedings for the issuance of the bonds, including the
825-24 form of the bonds, together with any other information that the
825-25 attorney general may require, shall be submitted to the attorney
825-26 general, and if the attorney general finds that the bonds have been
826-1 issued in accordance with the law, the attorney general shall
826-2 approve the bonds and execute a certificate of approval, which
826-3 shall be filed in the office of the comptroller and be recorded in
826-4 a record kept for that purpose. No bonds shall be issued until the
826-5 bonds have been registered by the comptroller, who shall register
826-6 the bonds if the attorney general has filed with the comptroller
826-7 the certificate approving the bonds and the proceedings for the
826-8 issuance of the bonds as provided in this section. If the bonds or
826-9 the proceedings pertaining to the bonds recite that the bonds are
826-10 secured by a pledge of the proceeds of a contract previously made
826-11 between the authority and a city, district, or other user, a copy
826-12 of the contract and proceedings of the contracting parties shall be
826-13 submitted to the attorney general with the bond record, and if the
826-14 bonds have been duly authorized and the contract has been made in
826-15 compliance with law, the attorney general shall approve the bonds
826-16 and contract, and the bonds shall then be registered by the
826-17 comptroller. When approved as provided by this subsection, the
826-18 bonds and the contract are valid and binding and are incontestable
826-19 for any cause. If the authority has issued bonds, including
826-20 interim or temporary bonds, or has contracted with the United
826-21 States government or with the state, or with any corporation or
826-22 agency of either, in connection with the financing of its works or
826-23 facilities, the authority may validate the bonds or contract by
826-24 suit in the manner and with the same effect as provided by Sections
826-25 51.423-51.431.
826-26 (j) Pending the issuance of definitive bonds, the authority
827-1 may issue and deliver interim or temporary bonds. The interim or
827-2 temporary bonds issued may be redeemed with the proceeds of the
827-3 definitive bonds, or the definitive bonds may be issued and
827-4 delivered in exchange for and in substitution of the interim or
827-5 temporary bonds. After the exchange and substitution, the
827-6 authority shall file proper certificates with the comptroller as to
827-7 the exchange, substitution, and cancellation. The certificates
827-8 shall be recorded by the comptroller.
827-9 Sec. 278.019. REFUNDING BONDS. (a) The board may issue
827-10 refunding bonds for the purpose of refunding any outstanding bonds
827-11 authorized by this chapter and interest on the bonds without the
827-12 necessity of an election. Refunding bonds may be issued to refund
827-13 more than one series of outstanding bonds, and in the case of bonds
827-14 secured in whole or in part by net revenues, the authority may
827-15 combine the pledges for the outstanding bonds for the security of
827-16 the refunding bonds and may secure the refunding bonds by other or
827-17 additional revenues.
827-18 (b) The provisions of this chapter with reference to the
827-19 issuance of other bonds and their approval by the attorney general
827-20 and the rights and remedies of the holders shall be applicable to
827-21 refunding bonds. Refunding bonds shall be registered by the
827-22 comptroller on surrender and cancellation of the bonds to be
827-23 refunded, but in lieu of that procedure, the resolution authorizing
827-24 the issuance of the refunding bonds may provide that the bonds
827-25 shall be sold and the proceeds of the sale deposited in the bank
827-26 where the original bonds are payable, in which case the refunding
828-1 bonds may be issued in an amount sufficient to pay the interest on
828-2 the original bonds to their option date or maturity date, and the
828-3 comptroller shall register the refunding bonds without concurrent
828-4 surrender and cancellation of the original bonds.
828-5 Sec. 278.020. TRUST INDENTURE FOR BONDS. (a) Bonds,
828-6 including refunding bonds, authorized by this chapter that are not
828-7 payable wholly from ad valorem taxes may be additionally secured by
828-8 a trust indenture under which the trustee may be a bank with trust
828-9 powers located either within or outside the state. The trust
828-10 indenture or mortgage may include provisions for a lien on all or
828-11 any part of the physical properties of the authority, and
828-12 franchises, easements, water rights and appropriation permits,
828-13 leases, contracts, and all rights appurtenant to the properties,
828-14 vesting in the trustee power to sell the properties for payment of
828-15 the indebtedness, power to operate the properties, and all other
828-16 powers and authority for the further security of the bonds.
828-17 (b) The trust indenture, regardless of the existence of a
828-18 deed of trust lien, may contain any provisions prescribed by the
828-19 board for the security of the bonds and the preservation of the
828-20 trust estate, including provision for amendment or modification of
828-21 the indenture and the issuance of bonds to replace lost or
828-22 mutilated bonds secured by the indenture.
828-23 (c) A purchaser under a sale under a deed of trust lien,
828-24 where one is given, shall be the owner of the properties,
828-25 facilities, and rights purchased and shall have the right to
828-26 maintain and operate the properties, facilities, and rights during
829-1 the period prescribed by the trust indenture.
829-2 (d) The authority may not issue bonds secured by a deed of
829-3 trust or mortgage on any properties previously acquired unless the
829-4 proposition for the issuance of the bonds is authorized by election
829-5 in the manner provided in this chapter for the authorization of
829-6 bonds secured in whole or in part by ad valorem taxes.
829-7 Sec. 278.021. BOND ELECTIONS. (a) Bonds payable wholly
829-8 from the authority's net revenues or from the proceeds of any water
829-9 contract or by any means other than ad valorem taxes may be issued
829-10 pursuant to a resolution of the board without the necessity of a
829-11 hearing or election.
829-12 (b) Bonds payable wholly or partially from ad valorem taxes,
829-13 except refunding bonds, shall not be issued unless authorized by an
829-14 election at which only the qualified voters who reside in the
829-15 authority shall be qualified to vote and a majority of the votes
829-16 cast at the election is in favor of the issuance of the bonds.
829-17 (c) Bond elections may be called by the board without a
829-18 petition. The resolution calling the election shall specify the
829-19 time and places of holding the election, the purpose for which the
829-20 bonds are to be issued, the maximum amount, maximum maturity, and
829-21 maximum interest rate of the bonds, the form of the ballot, and the
829-22 presiding judge for each voting place. The presiding judge serving
829-23 at each voting place shall appoint the necessary assistant judges
829-24 and clerks for holding the election. Notice of the election must
829-25 be given by publishing a substantial copy of the resolution calling
829-26 the election in a newspaper or newspapers of general circulation in
830-1 each city contained in the authority once each week for three
830-2 consecutive weeks. The first publication must be at least 21 days
830-3 before the date of the election.
830-4 (d) The returns of the bond election must be made to and
830-5 canvassed by the board.
830-6 (e) The Election Code applies to bond elections held under
830-7 this section except as otherwise provided by this chapter.
830-8 Sec. 278.022. EXCLUSION OF LAND OR OTHER PROPERTY NOT
830-9 REQUIRED. The provisions of Subchapter J, Chapter 49, or other
830-10 general laws relating to the exclusion of lands or other property
830-11 from a water control and improvement district shall not be
830-12 applicable to the authority.
830-13 Sec. 278.023. CONTRACTS WITH UNITED STATES OR ITS AGENCIES;
830-14 ELECTIONS. (a) The authority may contract with the United States
830-15 government or any of its agencies under the federal reclamation
830-16 laws for the construction, operation, and maintenance of any work
830-17 or facility by which water may be supplied and distributed to the
830-18 authority or under any act of congress providing or permitting the
830-19 contract and shall have all the rights, powers, privileges, and
830-20 authority granted water improvement districts and water control and
830-21 improvement districts under the general laws of the state with
830-22 regard to such contracts. Any contract entered into shall reserve
830-23 to the authority all water rights that it may obtain under permits
830-24 granted by the commission and shall provide that title to all
830-25 facilities constructed under the terms of the contract shall pass
830-26 to the authority or its designee or designees on payment to the
831-1 United States government of all obligations incurred in connection
831-2 with the project.
831-3 (b) If a proposed contract between the authority and the
831-4 United States government or any of its agencies would obligate the
831-5 authority to make payments wholly or partially from ad valorem
831-6 taxes, the contract may not be entered into unless authorized by an
831-7 election at which only the qualified voters who reside in the
831-8 authority shall be qualified to vote and a majority of the votes
831-9 cast at the election is in favor of the execution of the contract.
831-10 All procedures prescribed in Section 278.021 relating to the voting
831-11 of bonds supported in whole or in part by ad valorem taxes apply to
831-12 the voting of contracts under this section.
831-13 (c) If the authority enters into a contract with the United
831-14 States government or any of its agencies as provided by this
831-15 section, no subsequent alteration in the organization of the
831-16 authority shall be effected and no proceedings for the exclusion of
831-17 any area of the authority shall be undertaken under the provisions
831-18 of any law until the alteration or exclusion has received the
831-19 approval of the United States government or its contracting agency.
831-20 Sec. 278.024. AUTHORITY TO ACQUIRE AND OWN WATER PERMITS.
831-21 The authority may acquire and own water appropriation permits
831-22 directly from the commission. On application filed in compliance
831-23 with the provisions of Chapter 11 relating to acquisition of water
831-24 appropriation permits the commission may grant to the authority
831-25 permits to take unappropriated water of the Neches River in Texas
831-26 and its tributaries.
832-1 Sec. 278.025. BONDS AS INVESTMENTS AND SECURITY FOR
832-2 DEPOSITS. (a) All bonds of the authority are legal and authorized
832-3 investments for banks, savings banks, trust companies, building and
832-4 loan associations, savings and loan associations, insurance
832-5 companies, fiduciaries, trustees, and guardians, for the sinking
832-6 funds of cities, towns, villages, counties, school districts, or
832-7 other political subdivisions of the state, and for public funds of
832-8 the state or its agencies including the state permanent school
832-9 fund.
832-10 (b) Authority bonds are eligible to secure the deposit of
832-11 public funds of the state and of public funds of cities, towns,
832-12 villages, counties, school districts, or other political
832-13 subdivisions or corporations of the state. The bonds are lawful
832-14 and sufficient security for the deposits to the extent of the value
832-15 of the bonds if the bonds are accompanied by all unmatured coupons.
832-16 Sec. 278.026. BONDS EXEMPT FROM TAXATION. The
832-17 accomplishment of the purposes of this chapter is for the benefit
832-18 of the people of this state and for the improvement of their
832-19 properties and industry, and the authority, in carrying out the
832-20 purposes of this chapter, will be performing an essential public
832-21 function under the constitution and shall not be required to pay
832-22 any tax or assessment on a project or any part of a project under
832-23 this chapter. The bonds or other obligations issued under this
832-24 chapter and the transfer of and income from the bonds, including
832-25 the profits on the sale of the bonds, shall at all times be free
832-26 from taxation by the state or by any municipal corporation, county,
833-1 or other political subdivision or taxing district of the state.
833-2 Sec. 278.027. TAXATION. Before the issuance of bonds or the
833-3 execution of a contract payable wholly or partially from ad valorem
833-4 taxes, the board shall appoint a tax assessor and collector and a
833-5 board of equalization and shall cause taxes to be assessed,
833-6 valuations to be equalized, and tax rolls to be prepared. The
833-7 board may also appoint deputies to assist the tax assessor and
833-8 collector in such manner and for such period as the board may
833-9 order. Where applicable and not in conflict with this section, the
833-10 general laws relating to water control and improvement districts
833-11 with reference to tax assessors and collectors, boards of
833-12 equalization, tax rolls, and the levy and collection of taxes and
833-13 delinquent taxes shall be applicable to the authority, except that
833-14 the board of equalization, to be appointed each year by the board,
833-15 shall consist of one member residing in each city contained in the
833-16 authority. All taxes to be levied, assessed, and collected by the
833-17 authority shall be on an ad valorem basis, and all provisions of
833-18 the general laws pertaining to the levy, assessment, and collection
833-19 of ad valorem taxes by water control and improvement districts,
833-20 including the enforcement of those provisions and the processes for
833-21 the collection of delinquent taxes provided in the provisions,
833-22 shall be applicable to the authority.
833-23 Sec. 278.028. ADOPTION OF RULES AND REGULATIONS. The board
833-24 may adopt and promulgate all reasonable rules and regulations to
833-25 secure, maintain, and preserve the sanitary condition of all water
833-26 in and to flow into any reservoir owned by the authority, or which
834-1 it may control by contract or otherwise, to prevent the waste or
834-2 the unauthorized use of water, and to regulate residence, hunting,
834-3 fishing, boating, and camping, and all recreational and business
834-4 privileges, along or around any reservoir or any body of land or
834-5 easement owned or controlled by the authority.
834-6 Sec. 278.029. RECREATIONAL FACILITIES. The authority may
834-7 establish or otherwise provide for public parks and recreation
834-8 facilities and may acquire land adjacent to any reservoir in which
834-9 the authority owns water storage rights to provide for the parks or
834-10 facilities; provided, however, that no money received from taxation
834-11 or from bonds payable wholly or partially from taxation shall be
834-12 used to provide the parks or facilities. The authority may
834-13 contract for the lease of lands acquired by the authority for
834-14 recreation or concession purposes under terms determined by the
834-15 board.
834-16 Sec. 278.030. VOTING PLACES. For all elections conducted
834-17 under the provisions of this chapter, the voting places shall be
834-18 determined by the board for each election; provided, however, that
834-19 one or more voting places shall be designated for each constituent
834-20 city or town and for each separate area not located within a city
834-21 or town comprising a part of the authority.
834-22 Sec. 278.031. TERRITORY DETACHED FROM OTHER DISTRICT OR
834-23 AUTHORITY. The authority created by this chapter shall be in
834-24 addition to all districts or authorities into which the state has
834-25 been previously divided, and the territory of the authority
834-26 existing at any time under the provisions of this chapter is
835-1 declared to be detached from all other districts or authorities
835-2 established under Section 59, Article XVI, Texas Constitution. The
835-3 authority has the power and right to coordinate its plans with any
835-4 other conservation, reclamation, or other district previously
835-5 created with powers provided by Section 59, Article XVI, Texas
835-6 Constitution, and shall have full authority, power, and right to
835-7 enter into joint undertakings for the purposes for which the
835-8 districts are created; provided, however, that all such acts must
835-9 be approved by a majority of the board of directors of each
835-10 district or authority involved.
835-11 Sec. 278.032. BONDS OF OFFICERS AND EMPLOYEES. All bonds
835-12 required to be given by officers and employees of the authority
835-13 shall be executed by a surety company authorized to do business in
835-14 the state. The authority may pay the premiums on the bonds.
835-15 Sec. 278.033. GENERAL LAWS APPLICABLE WHERE NOT IN CONFLICT.
835-16 (a) All powers conferred by the general laws of this state
835-17 pertaining to water control and improvement districts shall be
835-18 applicable to the authority to the extent that those powers are not
835-19 in conflict with the provisions of this chapter.
835-20 (b) Nothing in this chapter shall be construed to violate
835-21 any provision of the federal or state constitutions, and all acts
835-22 done under this chapter shall be done in conformity with those
835-23 constitutions, whether or not expressly provided in this chapter.
835-24 If any procedure under this chapter is held by any court to violate
835-25 either constitution, the authority may by resolution provide an
835-26 alternative procedure conforming to the constitutions.
836-1 Sec. 278.034. BOND NOT REQUIRED. The authority shall not be
836-2 required to give a cost or supersedeas bond or to pay a cost
836-3 deposit on any appeal from the judgment of any court of this state.
836-4 Sec. 278.035. AUTHORITY DECLARED ESSENTIAL. The legislature
836-5 declares that the enactment of this chapter is in fulfillment of a
836-6 duty conferred on the legislature by Section 59, Article XVI, Texas
836-7 Constitution, which provides that the legislature is empowered to
836-8 pass laws appropriate in the preservation and conservation of the
836-9 natural resources of the state; that the authority created in this
836-10 chapter is essential to the accomplishment of the purposes of
836-11 Section 59, Article XVI, Texas Constitution; and that this chapter
836-12 concerns and addresses a subject in which the state at large is
836-13 interested. The terms and provisions of this chapter are to be
836-14 liberally construed in order to carry out the purposes set forth in
836-15 this chapter.
836-16 Sec. 278.036. SCOPE OF AUTHORITY. The exercise of all
836-17 powers granted to the authority under this chapter pertaining to
836-18 the construction and operation of its facilities, including the
836-19 authority's right of eminent domain, shall be limited only as
836-20 provided by Section 278.016(e).
836-21 CHAPTER 279. WEST CENTRAL TEXAS MUNICIPAL WATER DISTRICT
836-22 Sec. 279.001. CREATION. (a) A conservation and reclamation
836-23 district to be known as the "West Central Texas Municipal Water
836-24 District" is created. The district is a governmental agency and a
836-25 body politic and corporate.
836-26 (b) The district is created under and is essential to
837-1 accomplish the purposes of Section 59, Article XVI, Texas
837-2 Constitution.
837-3 Sec. 279.002. DEFINITIONS. In this chapter:
837-4 (1) "Board" means the board of directors of the
837-5 district.
837-6 (2) "Director" means a member of the board.
837-7 (3) "District" means the West Central Texas Municipal
837-8 Water District.
837-9 Sec. 279.003. BOUNDARIES. (a) The boundaries of the
837-10 district include all the territory within the boundaries of the
837-11 cities of Abilene, Albany, Anson, and Breckenridge on January 1,
837-12 1985. A defect in the definition of the boundaries of any of those
837-13 cities does not affect the validity of the district or any of its
837-14 powers or duties.
837-15 (b) The legislature finds that all territory within the
837-16 boundaries of the district does and will benefit from the present
837-17 and contemplated improvements, works, and facilities of the
837-18 district.
837-19 (c) The district may only annex territories as provided by
837-20 Sections 279.007 and 279.008.
837-21 Sec. 279.004. BOARD OF DIRECTORS. (a) All powers of the
837-22 district shall be exercised by a board of directors. Each director
837-23 is appointed by majority vote of the governing body of the city in
837-24 which the director resides.
837-25 (b) The number of directors to be appointed from each city
837-26 in the district shall be governed by the population of the city,
838-1 with:
838-2 (1) each city having a population of 10,000 or less
838-3 appointing two directors; and
838-4 (2) each city having a population of more than 10,000
838-5 appointing two directors plus one director for each 10,000
838-6 population or part of 10,000 population over 10,000, provided,
838-7 however, that no city shall appoint more than one-half of the
838-8 members of the board.
838-9 (c) In May of each year the governing body of each city that
838-10 is entitled to appoint more than one director shall appoint not
838-11 less than one director for a two-year term beginning June 1 of that
838-12 year. The first director from any city annexed to the district
838-13 that is entitled to only one director may be appointed for a term
838-14 ending on a May 31 not more than two years from the date of
838-15 appointment.
838-16 (d) Each director serves for a term of office as provided by
838-17 this section and until a successor is appointed and has qualified.
838-18 (e) A director must reside in and own taxable property in
838-19 the city from which the director is appointed. A member of a
838-20 governing body of a city or an employee of a city is not eligible
838-21 to serve as a director.
838-22 (f) A director shall subscribe the constitutional oath of
838-23 office and shall give bond for the faithful performance of the
838-24 director's duties in the amount of $5,000, the cost of which shall
838-25 be paid by the district.
838-26 (g) A majority of the members of the board constitutes a
839-1 quorum.
839-2 (h) If a director moves from the city from which the
839-3 director is appointed, the governing body of the city shall appoint
839-4 a successor for the unexpired term.
839-5 Sec. 279.005. FEES. (a) Each director is entitled to
839-6 receive a fee not to exceed $20 for attending each meeting of the
839-7 board; provided, however, that no more than $40 may be paid to a
839-8 director for meetings held in any one calendar month.
839-9 (b) Each director is entitled to receive a fee not to exceed
839-10 $20 per day for each day devoted to the business of the district
839-11 and reimbursement for actual expenses incurred in attending to
839-12 district business provided that such service and expense are
839-13 expressly approved by the board.
839-14 Sec. 279.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
839-15 shall elect from among its members a president and a vice president
839-16 of the district and other officers as in the judgment of the board
839-17 are necessary.
839-18 (b) The president is the chief executive officer of the
839-19 district and the presiding officer of the board and has the same
839-20 right to vote as any other director.
839-21 (c) The vice president shall perform all duties and exercise
839-22 all powers conferred by this chapter on the president when the
839-23 president is absent or fails or declines to act except the
839-24 president's right to vote.
839-25 (d) The board shall appoint a secretary and a treasurer who
839-26 may or may not be members of the board and may combine those
840-1 offices. The treasurer must give bond in such amount as may be
840-2 required by the board. The bond must be conditioned on the
840-3 treasurer accounting for all money that comes into the treasurer's
840-4 custody as treasurer of the district.
840-5 (e) The board shall appoint necessary engineers, attorneys,
840-6 and other employees and employ a general manager. The general
840-7 manager may employ and discharge employees.
840-8 (f) The board shall adopt a seal for the district.
840-9 Sec. 279.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
840-10 (a) Other territory situated within the counties of Taylor, Jones,
840-11 Shackelford, and Stephens may be annexed to the district as
840-12 provided by this section.
840-13 (b) A petition for annexation must:
840-14 (1) be signed by 50 or a majority, whichever number is
840-15 less, of the qualified voters of the territory to be annexed who
840-16 own taxable property in the territory being annexed and who have
840-17 duly rendered the property to the city, if situated within a city
840-18 or town, or county for taxation;
840-19 (2) be filed with the board; and
840-20 (3) describe the territory to be annexed by metes and
840-21 bounds or otherwise unless the territory is the same as that
840-22 contained in a city or town, in which event it shall be sufficient
840-23 to state that the territory to be annexed is that which is
840-24 contained within the city or town.
840-25 (c) If the board finds that the petition complies with and
840-26 is signed by the number of qualified persons required under
841-1 Subsection (b), that the annexation would be to the interest of the
841-2 territory to be annexed and the district, and that the district
841-3 will be able to supply water to the territory to be annexed, or
841-4 cause water to be supplied to the territory to be annexed, the
841-5 board shall adopt a resolution stating the conditions, if any,
841-6 under which territory may be annexed to the district and requesting
841-7 the commission to annex the territory to the district. The
841-8 resolution shall be conclusive of the legal sufficiency of the
841-9 petition and the qualifications of the signers of the petition. A
841-10 certified copy of the resolution and of the petition shall be filed
841-11 with the commission.
841-12 (d) The commission shall adopt a resolution declaring its
841-13 intention to call an election in the territory to be annexed for
841-14 the purpose of submitting the proposition of whether the territory
841-15 shall be annexed to the district. The commission shall set a time
841-16 and place for a hearing to be held by the commission on the
841-17 question of whether the territory to be annexed will benefit from
841-18 the improvements, works, and facilities then owned or operated or
841-19 contemplated to be owned or operated by the district or by the
841-20 other functions of the district. A railroad right-of-way that is
841-21 not situated within the defined limits of an incorporated city or
841-22 town will not benefit from the improvements, works, and facilities
841-23 that the district is authorized to construct. A railroad
841-24 right-of-way may not be annexed to the district unless the
841-25 right-of-way is contained within the limits of an incorporated city
841-26 or town that has been annexed to the district.
842-1 (e) Notice of the adoption of the resolution stating the
842-2 time and place of the hearing and addressed to the citizens and
842-3 owners of property in the territory to be annexed must be published
842-4 one time in a newspaper designated by the commission at least 10
842-5 days before the date of the hearing. The notice must describe the
842-6 territory to be annexed in the same manner in which it is required
842-7 or permitted by this chapter to be described in the petition.
842-8 (f) All interested persons may appear at the hearing and
842-9 offer evidence for or against the intended annexation. The hearing
842-10 may proceed in the order and under the rules prescribed by the
842-11 commission and may be recessed from time to time. If, at the
842-12 conclusion of the hearing, the commission finds that all the lands
842-13 in the territory to be annexed will benefit from the present or
842-14 contemplated improvements, works, or facilities of the district,
842-15 the commission shall adopt a resolution calling an election in the
842-16 territory to be annexed stating the date and place or places for
842-17 holding the election and appointing a presiding judge for each
842-18 voting place who shall appoint the necessary assistant judges and
842-19 clerks to assist in holding the election.
842-20 (g) Notice of the election, stating the date of the
842-21 election, the proposition to be voted on and the conditions under
842-22 which the territory may be annexed, or making reference to the
842-23 resolution of the board for that purpose, and the place or places
842-24 for holding the election, shall be published one time in a
842-25 newspaper designated by the commission at least 10 days before the
842-26 date set for the election.
843-1 (h) Only qualified electors who reside in the territory to
843-2 be annexed may vote in the election. Returns of the election shall
843-3 be made to the commission.
843-4 (i) The board shall canvass the returns of the election and
843-5 certify the returns to the commission, which shall then adopt a
843-6 resolution declaring the results of the election. If the
843-7 resolution shows that a majority of the votes cast are in favor of
843-8 annexation the commission shall enter an order annexing the
843-9 territory to the district, and the annexation shall be
843-10 incontestable except in the manner and within the time for
843-11 contesting elections under the Election Code. A certified copy of
843-12 the order shall be recorded in the deed records of the county in
843-13 which the annexed territory is situated.
843-14 (j) The commission, in calling the election on the
843-15 proposition for annexation of territory, may include as a part of
843-16 the same proposition a proposition for the assumption of its part
843-17 of the tax-supported bonds of the district then outstanding and
843-18 those voted but not yet sold and for the levy of an ad valorem tax
843-19 on taxable property in the annexed territory along with the tax in
843-20 the rest of the district for the payment of the bonds.
843-21 (k) After territory is added to the district, the board may
843-22 call an election over the entire district for the purpose of
843-23 determining whether the entire district as enlarged shall assume
843-24 the tax-supported bonds then outstanding and those voted but not
843-25 yet sold and whether an ad valorem tax shall be levied on all
843-26 taxable property within the district as enlarged for the payment of
844-1 the bonds, unless the proposition is voted along with the
844-2 annexation election and becomes lawfully binding on the territory
844-3 annexed. The election shall be called and held in the same manner
844-4 as elections for the issuance of bonds as provided by this chapter.
844-5 (l) If no newspaper is published in the territory to be
844-6 annexed, the notices shall be posted at three public places in the
844-7 territory.
844-8 Sec. 279.008. ANNEXATION OF TERRITORY IN CERTAIN CITIES.
844-9 (a) Territory annexed to any city contained in the district may be
844-10 annexed to the district as provided by this section.
844-11 (b) At any time after final passage of an ordinance or
844-12 resolution annexing territory to a city contained in the district,
844-13 the board may issue a notice of a hearing on the question of
844-14 annexing the territory or any part of the territory. The notice is
844-15 sufficient if it states the date and place of the hearing and:
844-16 (1) describes the area proposed to be annexed; or
844-17 (2) makes reference to the annexation ordinance of the
844-18 city.
844-19 (c) The notice must be published one time in a newspaper
844-20 having general circulation in the city that made the annexation.
844-21 The notice must be published at least 10 days before the date set
844-22 for the hearing.
844-23 (d) If, at the hearing, the board finds that the territory
844-24 proposed to be annexed will benefit from the water supply afforded
844-25 or to be afforded by the district, the board shall adopt a
844-26 resolution annexing the territory to the district.
845-1 Sec. 279.009. APPOINTMENT OF DIRECTORS IN ANNEXED
845-2 TERRITORIES. (a) If the territory of a city is annexed to the
845-3 district, the governing body of the city shall appoint the number
845-4 of directors to which it is entitled under Section 279.004 and the
845-5 terms of the appointees shall expire on May 31.
845-6 (b) A city with a population of less than 2,000 annexed by
845-7 the district may not appoint a director as long as the city has a
845-8 population of less than 2,000.
845-9 Sec. 279.010. WATER APPROPRIATION PERMITS. The district may
845-10 obtain appropriation permits from the commission through
845-11 appropriate hearings as provided by Chapter 11.
845-12 Sec. 279.011. DAMS AND OTHER FACILITIES FOR IMPOUNDING,
845-13 PROCESSING, OR TRANSPORTING WATER. (a) The district may acquire
845-14 or construct, within or outside the boundaries of the district,
845-15 dams and all works, plants, and other facilities necessary or
845-16 useful for the purpose of impounding, processing, and transporting
845-17 water to cities and others for municipal, domestic, industrial, and
845-18 mining purposes.
845-19 (b) The size of a dam and reservoir shall be determined by
845-20 the board, taking into consideration probable future increases in
845-21 water requirements.
845-22 (c) The size of a dam shall not be limited by the amount of
845-23 water initially authorized by the commission or a predecessor
845-24 agency of the commission to be impounded in the dam.
845-25 (d) A dam or other facility for impounding water may not be
845-26 constructed until the plan for the facility is approved by the
846-1 commission.
846-2 Sec. 279.012. POWERS AND DUTIES. (a) In this section,
846-3 "person" means:
846-4 (1) an individual, partnership, corporation, or other
846-5 private entity; and
846-6 (2) a public agency, including an authority, district,
846-7 city, town, or other political subdivision, joint board, or other
846-8 public agency created and operating under the laws of this state.
846-9 (b) The district has the additional specific powers provided
846-10 by this section.
846-11 (c) The district may acquire, construct, finance, or
846-12 otherwise provide any kind or type of water facilities, water
846-13 pollution control facilities, waste disposal facilities, and air
846-14 pollution control facilities in any area:
846-15 (1) within the Clear Fork of the Brazos River
846-16 Watershed and its tributaries;
846-17 (2) within Jones, Shackelford, Stephens, and Taylor
846-18 counties; and
846-19 (3) inside or outside the boundaries of the areas
846-20 described in Subdivisions (1) and (2) with respect to water
846-21 facilities designed primarily to serve inhabitants within those
846-22 areas except as otherwise limited by this section.
846-23 (d) The district may exercise all powers granted to a
846-24 district or a river authority created and operating under Section
846-25 59, Article XVI, Texas Constitution, by Chapter 383, Health and
846-26 Safety Code, Chapter 1371, Government Code, Chapter 30, and any
847-1 other general law relating to the powers and facilities provided by
847-2 this subsection and Subsection (c).
847-3 (e) If the district creates a nonprofit corporation to act
847-4 on its behalf under the Development Corporation Act of 1979
847-5 (Article 5190.6, Vernon's Texas Civil Statutes), the corporation
847-6 may exercise its powers with respect to projects within the area
847-7 described by Subsection (c).
847-8 (f) The district and any persons may contract, on terms and
847-9 conditions to which the parties may agree, with respect to any
847-10 power, function, or duty of the district, including those granted
847-11 in this section. The district and those persons who are parties to
847-12 the contract may execute appropriate documents and instruments in
847-13 connection with the contract.
847-14 (g) The district may issue bonds with respect to any of its
847-15 powers including those powers granted by this section in the manner
847-16 provided by Section 279.017. The district may issue bonds to
847-17 provide funds to enable the district to pay for costs of
847-18 engineering design and studies, surveying, title research,
847-19 appraisals, options on real or personal property, and other related
847-20 activities in connection with planning and implementing various
847-21 proposed projects or improvements and to provide funds to operate
847-22 and maintain any facilities.
847-23 (h) The district may invest its funds, including bond
847-24 proceeds, in any manner or in any securities determined by the
847-25 board.
847-26 (i) In addition to all other powers granted by this chapter
848-1 or by any other law, the district may undertake and carry out
848-2 activities, enter into contracts, loan agreements, leases, or
848-3 installment sales agreements, acquire, purchase, construct, own,
848-4 operate, maintain, repair, improve, or extend, and loan, lease,
848-5 sell, or otherwise dispose of qualifying works, improvements,
848-6 facilities, plants, buildings, structures, equipment, appliances,
848-7 real and personal property or any interest in that property, and
848-8 money or bond proceeds, at any location within the area described
848-9 in Subsection (c), or at any location outside that area with
848-10 respect to facilities that are designed primarily to serve
848-11 inhabitants within that area on the terms and conditions, including
848-12 loan payments, rentals, sale price, or installment sale payments,
848-13 to which the parties may agree. To qualify under this subsection,
848-14 works, improvements, facilities, plants, buildings, structures,
848-15 equipment, appliances, real and personal property or any interest
848-16 in that property, or money or bond proceeds must be incident,
848-17 helpful, or necessary to:
848-18 (1) provide for the development, drilling, control,
848-19 storage, preservation, transmission, treatment, distribution, and
848-20 use of groundwater, storm water, floodwater, and the water of
848-21 rivers and streams for municipal, domestic, electric energy or
848-22 power, industrial, irrigation, oil flooding, mining, agricultural,
848-23 commercial, flood control, and all other beneficial purposes;
848-24 (2) supply water for municipal, domestic, electric
848-25 energy or power, industrial, irrigation, oil flooding, mining,
848-26 agricultural, commercial, and all other beneficial uses and
849-1 purposes;
849-2 (3) collect, transport, process, treat, dispose of,
849-3 and control all waste, including all municipal, domestic,
849-4 industrial, agricultural, recreational, and other waste, whether in
849-5 fluid, solid, or composite state;
849-6 (4) control, abate, or reduce all types of pollution,
849-7 including air pollution and water pollution;
849-8 (5) reclaim and provide drainage and drainage systems
849-9 for land;
849-10 (6) establish or otherwise provide for public parks
849-11 and recreation facilities; and
849-12 (7) facilitate the carrying out of any power, duty, or
849-13 function of the district.
849-14 (j) The legislature finds that the purposes listed in
849-15 Subsection (i) are for the conservation and development of the
849-16 natural resources of the state within the meaning of Section 59,
849-17 Article XVI, Texas Constitution.
849-18 (k) The district is considered to be a district and a river
849-19 authority for the purposes of Chapters 362 and 383, Health and
849-20 Safety Code, and Chapter 30, except that if there is a conflict
849-21 between a provision of one of those chapters and this chapter, this
849-22 chapter prevails.
849-23 (l) Chapter 1371, Government Code, applies to the district.
849-24 (m) Any person may contract with the district in any manner
849-25 authorized by this chapter, Chapters 362 and 383, Health and Safety
849-26 Code, and Chapter 30 with respect to water, waste, pollution
850-1 control, or any other facilities and services provided by the
850-2 district.
850-3 (n) A public agency may contract with the district and may
850-4 determine, agree, and pledge that all or any part of its payments
850-5 under the contract are payable from the source described in Section
850-6 30.030(c), subject only to the authorization of the contract,
850-7 pledge, and payments by a majority vote of the governing body of
850-8 the public agency. A public agency may use and pledge any other
850-9 available revenues or resources for and to the payment of amounts
850-10 due under a contract, as an additional or the sole source of
850-11 payment, and may covenant in that respect to assure the
850-12 availability of the revenues and resources when required.
850-13 (o) If bonds issued by the district recite that they are
850-14 secured by a pledge of revenues from a contract, a copy of the
850-15 contract and the proceedings relating to the contract shall be
850-16 submitted to the attorney general along with the bonds under
850-17 Section 279.021. If the attorney general finds that the bonds have
850-18 been authorized and the contract has been entered into in
850-19 accordance with law, the attorney general shall approve the bonds
850-20 and the contract. After the bonds and the contract are approved by
850-21 the attorney general, they are incontestable in any court or other
850-22 forum for any reason and are valid and binding in accordance with
850-23 their terms and provisions for all purposes.
850-24 (p) A public agency may set, charge, and collect fees,
850-25 rates, charges, rentals, and other amounts for any service or
850-26 facility provided by a utility operated by it, or provided pursuant
851-1 to or in connection with a contract with the district, from its
851-2 inhabitants or from users or beneficiaries of the utility, service,
851-3 or facility, including:
851-4 (1) water charges;
851-5 (2) sewage charges;
851-6 (3) waste disposal system fees and charges, including
851-7 garbage collection or handling fees; and
851-8 (4) other fees or charges.
851-9 (q) A public agency may use and pledge the fees authorized
851-10 by Subsection (p) to make payments to the district required under a
851-11 contract with the district and may covenant to do so in amounts
851-12 sufficient to make all or any part of the payments to the district
851-13 when due. If the parties agree in the contract, these payments
851-14 constitute an expense of operation of any facility or utility
851-15 operated by the public agency, provided, however, that no agreement
851-16 may be made that would violate the United States or Texas
851-17 constitutions.
851-18 (r) This section is wholly sufficient authority within
851-19 itself for the exercise of the powers, the issuance of the bonds,
851-20 the execution of contracts, and the performance of the other acts
851-21 and procedures authorized by this section by the district and all
851-22 persons, including public agencies, without reference to any other
851-23 law or any restrictions or limitations contained in any other law,
851-24 except as specifically provided. To the extent of any conflict or
851-25 inconsistency between this section and any other law, including any
851-26 home-rule city charter, this section prevails and controls. The
852-1 district and all persons, including public agencies, are entitled
852-2 to use any other law that is not in conflict with this section to
852-3 the extent convenient or necessary to carry out any power or
852-4 authority, express or implied, granted by this section.
852-5 (s) This section does not compel any person, including any
852-6 public agency, to secure water, sewer service, or any other service
852-7 from the district except under a voluntarily executed contract.
852-8 (t) Special facility projects to acquire and construct
852-9 separate projects on behalf of a contracting party that are
852-10 self-liquidating and do not constitute a part of the district's
852-11 system may be undertaken only after board approval. None of the
852-12 district's assets may be encumbered for the special facility
852-13 projects described by this subsection other than the facilities
852-14 that are a part of the special facility project. None of a member
852-15 city's assets may be encumbered for the special facility projects
852-16 described by this subsection unless the encumbrance is approved by
852-17 the governing body of the city.
852-18 Sec. 279.013. ACQUISITION OF PROPERTY; CONSTRUCTION OF
852-19 FACILITIES. The district may acquire land and construct, lease, or
852-20 otherwise acquire all works, plants, and other facilities necessary
852-21 or useful for the purpose of exercising the powers and purposes of
852-22 the district including diverting, further impounding or storing
852-23 water, developing underground sources of water, and processing and
852-24 transporting the water to cities and others for municipal,
852-25 domestic, industrial, and mining purposes inside or outside the
852-26 boundaries of the district. Subject to the terms of any deed of
853-1 trust issued by the district, the district may sell, trade, or
853-2 otherwise dispose of any real or personal property considered by
853-3 the board not to be needed for district purposes.
853-4 Sec. 279.014. EMINENT DOMAIN. For the purpose of carrying
853-5 out a power or authority conferred by this chapter the district may
853-6 acquire land and other property and easements inside or outside the
853-7 boundaries of the district, including land needed for the reservoir
853-8 and dam and flood easements above the probable high-water line
853-9 around the reservoirs, by condemnation in the manner provided by
853-10 Chapter 21, Property Code. The district is a municipal corporation
853-11 within the meaning of Section 21.021(c), Property Code. The amount
853-12 and character of interest in land, other property, or easements to
853-13 be acquired shall be determined by the board.
853-14 Sec. 279.015. RELOCATION OF FACILITIES. If the district, in
853-15 the exercise of the power of eminent domain, the power of
853-16 relocation, or any other power granted under this chapter, makes
853-17 necessary the relocation, raising, rerouting, changing of grade, or
853-18 altering the construction of any highway, railroad, electric
853-19 transmission line, telephone or telegraph properties and
853-20 facilities, or pipeline, all such necessary relocation, raising,
853-21 rerouting, changing of grade, or alteration of construction shall
853-22 be accomplished at the sole expense of the district.
853-23 Sec. 279.016. AWARD OF CONSTRUCTION CONTRACT. A
853-24 construction contract requiring an expenditure of more than $25,000
853-25 may be made after publication of a notice to bidders once each week
853-26 for two weeks before awarding the contract. The notice is
854-1 sufficient if it states the time and place when and where the bids
854-2 will be opened, the general nature of the work to be done, or the
854-3 material, equipment, or supplies to be purchased and states where
854-4 and the terms on which copies of the plans and specifications may
854-5 be obtained. The publication must be in a newspaper published in
854-6 the district and designated or approved by the board.
854-7 Sec. 279.017. BONDS. (a) For the purpose of providing a
854-8 source of water supply for cities and other users for municipal,
854-9 domestic, industrial, and mining purposes, as authorized by this
854-10 chapter, and for the purpose of carrying out any other power or
854-11 authority conferred by this chapter, the district may issue
854-12 negotiable bonds payable from revenues or taxes or both revenues
854-13 and taxes of the district as pledged by resolution of the board.
854-14 Pending the issuance of definitive bonds, the board may authorize
854-15 the delivery of negotiable interim bonds or notes, eligible for
854-16 exchange or substitution by use of the definitive bonds.
854-17 (b) Bonds must be authorized by resolution of the board,
854-18 issued in the name of the district, signed by the president or vice
854-19 president, and attested by the secretary and shall bear the seal of
854-20 the district. The signature of the president or the secretary may
854-21 be printed or lithographed on the bonds with the approval of the
854-22 president or secretary. The seal of the district may be impressed
854-23 on the bonds or may be printed or lithographed on the bonds.
854-24 (c) Bonds must mature serially or otherwise in not to exceed
854-25 40 years and may be sold at a price and under terms determined by
854-26 the board to be the most advantageous reasonably obtainable,
855-1 provided that the interest cost to the district, calculated by use
855-2 of standard bond interest tables currently in use by insurance
855-3 companies and investment houses, does not exceed six percent per
855-4 year. Within the discretion of the board, the bonds may be made
855-5 callable prior to maturity at such times and prices as may be
855-6 prescribed in the resolution authorizing the bonds and may be made
855-7 registrable as to principal or as to both principal and interest.
855-8 (d) Bonds may be issued in more than one series and from
855-9 time to time as required for carrying out the purposes of this
855-10 chapter.
855-11 (e) Bonds may be secured by a pledge of all or part of the
855-12 net revenues of the district, of the net revenues of any one or
855-13 more contracts made before or after the bonds are issued, or of
855-14 other revenues or income specified by resolution of the board or in
855-15 the trust indenture. A pledge may reserve the right, under
855-16 conditions specified in the pledge, to issue additional bonds to be
855-17 on a parity with or subordinate to the bonds being issued. In this
855-18 subsection, the term "net revenues" means the gross revenues of the
855-19 district less the amount necessary to pay the cost of maintaining
855-20 and operating the district and its properties.
855-21 (f) The district may issue bonds payable from ad valorem
855-22 taxes to be levied on all taxable property in the district or may
855-23 issue bonds secured by and payable from both those taxes and the
855-24 revenues of the district. If bonds are issued payable wholly or
855-25 partially from ad valorem taxes, the board shall levy a tax
855-26 sufficient to pay bonds and the interest on the bonds as the bonds
856-1 and interest become due. The rate of the tax for any year may be
856-2 set after giving consideration to the money received from the
856-3 pledged revenues available for payment of principal and interest to
856-4 the extent and in the manner permitted by the resolution
856-5 authorizing the issuance of the bonds.
856-6 (g) If bonds payable wholly from revenues are issued, the
856-7 board shall set, and from time to time revise the rates of
856-8 compensation for water sold and services rendered by the district
856-9 sufficient to pay the expense of operating and maintaining the
856-10 facilities of the district and to pay bonds as they mature and the
856-11 interest as it accrues and to maintain the reserve and other funds
856-12 as provided in the resolution authorizing the bonds. If bonds
856-13 payable partially from revenues are issued, the board shall set,
856-14 and from time to time revise, the rate of compensation for water
856-15 sold and services rendered by the district sufficient to assure
856-16 compliance with the resolution authorizing the bonds.
856-17 (h) From the proceeds of the sale of the bonds, the district
856-18 may set aside an amount for the payment of interest expected to
856-19 accrue during construction and for a reserve interest and sinking
856-20 fund, and this provision may be made in the resolution authorizing
856-21 the bonds. Proceeds from the sale of the bonds may also be used
856-22 for the payment of all expenses necessarily incurred in
856-23 accomplishing the purpose for which the district is created,
856-24 including expenses of issuing and selling the bonds. The proceeds
856-25 from the sale of the bonds may be temporarily invested in direct
856-26 obligations of, or obligations whose principal and interest are
857-1 unconditionally guaranteed by, the United States government,
857-2 Federal Intermediate Credit Banks, Federal Land Banks, the Federal
857-3 National Mortgage Association, Federal Home Loan Banks, or Banks
857-4 for Cooperatives.
857-5 (i) In the event of a default or a threatened default in the
857-6 payment of the principal of or interest on bonds payable wholly or
857-7 partially from revenues, any court of competent jurisdiction may,
857-8 on petition of the holders of outstanding bonds, appoint a receiver
857-9 with authority to collect and receive all income of the district
857-10 except taxes, employ and discharge agents and employees of the
857-11 district, take charge of the district's funds on hand, except funds
857-12 received from taxes unless commingled, and manage the proprietary
857-13 affairs of the district without consent or hindrance by the
857-14 directors. The receiver may also be authorized to sell or make
857-15 contracts for the sale of water or renew the contracts with the
857-16 approval of the court appointing the receiver. The court may vest
857-17 the receiver with other powers and duties the court finds necessary
857-18 for the protection of the holders of the bonds. The resolution
857-19 authorizing the issuance of the bonds or the trust indenture
857-20 securing them may limit or qualify the rights of less than all of
857-21 the outstanding bonds payable from the same source to institute or
857-22 prosecute any litigation affecting the district's property or
857-23 income.
857-24 Sec. 279.018. REFUNDING BONDS. (a) The district may issue
857-25 refunding bonds for the purpose of refunding any outstanding bonds
857-26 authorized by this chapter and any interest on the bonds. The
858-1 refunding bonds may be issued to refund more than one series of
858-2 outstanding bonds and may combine the pledges for the outstanding
858-3 bonds for the security of the refunding bonds, and the refunding
858-4 bonds may be secured by other or additional revenues and mortgage
858-5 liens.
858-6 (b) The provisions of this chapter regarding the issuance by
858-7 the district of other bonds, the security for the bonds, the
858-8 approval of the bonds by the attorney general, and the remedies of
858-9 the holders shall be applicable to refunding bonds. Refunding
858-10 bonds shall be registered by the comptroller on surrender and
858-11 cancellation of the bonds to be refunded, but in lieu of that
858-12 process, the resolution authorizing the issuance of the refunding
858-13 bonds may provide that the refunding bonds shall be sold and the
858-14 proceeds of the sale deposited in the bank where the original bonds
858-15 are payable, in which case the refunding bonds may be issued in an
858-16 amount sufficient to pay the principal of and the interest on the
858-17 original bonds to their option date or maturity date, and the
858-18 comptroller shall register the refunding bonds without concurrent
858-19 surrender and cancellation of the original bonds.
858-20 Sec. 279.019. TRUST INDENTURE FOR BONDS. (a) Bonds,
858-21 including refunding bonds, authorized by this chapter, not payable
858-22 wholly from ad valorem taxes, may be additionally secured by a
858-23 trust indenture under which the trustee may be a bank having trust
858-24 powers situated either within or outside the state. The bonds,
858-25 within the discretion of the board, may be additionally secured by
858-26 a deed of trust or mortgage lien on physical properties of the
859-1 district and all franchises, easements, water rights, appropriation
859-2 permits, leases, contracts, and all rights appurtenant to the
859-3 properties, vesting in the trustee power to sell the properties for
859-4 payment of the indebtedness, power to operate the properties, and
859-5 all other powers and authority for the further security of the
859-6 bonds.
859-7 (b) The trust indenture, regardless of the existence of the
859-8 deed of trust or mortgage lien on the properties, may:
859-9 (1) contain any provisions prescribed by the board for
859-10 the security of the bonds and the preservation of the trust estate;
859-11 (2) make provision for amendment or modification of
859-12 the trust indenture and the issuance of bonds to replace lost or
859-13 mutilated bonds;
859-14 (3) condition the right to expend district money or
859-15 sell district property on approval of a registered professional
859-16 engineer selected as provided in the trust indenture; and
859-17 (4) make provision for the investment of funds of the
859-18 district.
859-19 (c) A purchaser under a sale under a deed of trust lien,
859-20 where one is given, shall be the absolute owner of the properties,
859-21 facilities, and rights so purchased and shall have the right to
859-22 maintain and operate the properties, facilities, and rights.
859-23 Sec. 279.020. BOND ELECTIONS. (a) Bonds payable wholly or
859-24 partially from ad valorem taxes, except refunding bonds, shall not
859-25 be issued unless authorized by an election at which only the
859-26 qualified voters who reside in the district are eligible to vote
860-1 and unless a majority of the votes cast in each city contained in
860-2 the district are in favor of the issuance of the bonds. If a
860-3 majority of the votes cast in a city contained in the district are
860-4 against the issuance of the bonds, the board may adopt a resolution
860-5 detaching the territory of the city from the district if the board
860-6 finds that it is in the best interest of the district to issue the
860-7 bonds payable wholly or partially from taxes, but no territory may
860-8 be detached from the district after the issuance of bonds that are
860-9 payable from revenues or taxes or both. Bonds not payable wholly
860-10 or partially from ad valorem taxes may be issued without an
860-11 election.
860-12 (b) An election for the issuance of bonds payable wholly or
860-13 partly from ad valorem taxes may be called by the board without a
860-14 petition. The resolution calling the election shall specify the
860-15 time and location of the election, the purpose for which the bonds
860-16 are to be issued, the maximum amount of the bonds, the maximum
860-17 maturity of the bonds, the form of the ballot, and the presiding
860-18 judge for each voting place. The presiding judge serving at each
860-19 voting place shall appoint one assistant judge and at least two
860-20 clerks to assist in holding the election. Notice of the election
860-21 shall be given by publishing a substantial copy of the resolution
860-22 in one newspaper published in each city contained in the district
860-23 for two consecutive weeks. The first publication must be at least
860-24 21 days before the date of the election. In a city in which no
860-25 newspaper is published, notice shall be given by posting a copy of
860-26 the resolution in three public places.
861-1 (c) The returns of the election shall be made to and
861-2 canvassed by the board.
861-3 (d) The Election Code shall be applicable to elections held
861-4 under this section of this law except as otherwise provided by this
861-5 chapter.
861-6 Sec. 279.021. APPROVAL AND REGISTRATION OF BONDS. After any
861-7 bonds, including refunding bonds, are authorized by the district,
861-8 the bonds and the record relating to their issuance shall be
861-9 submitted to the attorney general for examination as to the
861-10 validity of the bonds and the record. If the bonds recite that
861-11 they are secured by a pledge of the proceeds of a contract
861-12 previously made between the district and a city or other
861-13 governmental agency, authority, or district, a copy of the contract
861-14 and the proceedings of the city or other governmental agency,
861-15 authority, or district authorizing the contract shall also be
861-16 submitted to the attorney general. If the bonds have been
861-17 authorized and if the contract has been made in accordance with the
861-18 constitution and laws of the state, the attorney general shall
861-19 approve the bonds and the contract and the bonds shall then be
861-20 registered by the comptroller. After the approval and
861-21 registration, the bonds and the contracts, if any, are valid and
861-22 binding and are incontestable for any cause.
861-23 Sec. 279.022. WATER SUPPLY CONTRACTS. The district may
861-24 contract with cities and others for the purpose of supplying water
861-25 to them. The district may also contract with a city for the rental
861-26 or leasing of or for the operation of the water production, water
862-1 supply, water filtration or purification, and water supply
862-2 facilities of the city on the consideration the district and the
862-3 city may agree. The contract may be on the terms and for the time
862-4 the parties may agree, and the contract may provide that it shall
862-5 continue in effect until bonds specified in the contract and
862-6 refunding bonds issued in lieu of those bonds are paid.
862-7 Sec. 279.023. DISTRICT DEPOSITORY. (a) The board shall
862-8 designate one or more banks within the district to serve as
862-9 depository for the funds of the district. All funds of the
862-10 district shall be deposited in the depository bank or banks, except
862-11 that funds pledged to pay bonds may be deposited with the trustee
862-12 bank named in the trust agreement and funds shall be remitted to
862-13 the bank of payment for the payment of the principal of and
862-14 interest on bonds. To the extent that funds in the depository
862-15 banks and the trustee bank are not insured by the Federal
862-16 Depository Insurance Corporation, the funds shall be secured in the
862-17 manner provided by law for the security of county funds.
862-18 (b) Before designating a depository bank or banks, the board
862-19 shall issue a notice stating the time and place when and where the
862-20 board will meet to designate the depository or depositories and
862-21 inviting the banks in the district to submit applications to be
862-22 designated depositories. The term of service for depositories
862-23 shall be prescribed by the board. The notice of the meeting must
862-24 be published one time in a newspaper or newspapers published in the
862-25 district and specified by the board.
862-26 (c) At the time mentioned in the notice of the meeting, the
863-1 board shall consider the applications and the management and
863-2 condition of the banks filing the applications and shall designate
863-3 as depositories the bank or banks that offer the most favorable
863-4 terms and conditions for the handling of the funds of the district
863-5 and that the board finds have proper management and are in
863-6 condition to warrant handling of district funds. Membership on the
863-7 board of an officer or director of a bank shall not disqualify the
863-8 bank from being designated as depository.
863-9 (d) If no applications are received by the time stated in
863-10 the notice of the meeting, the board shall designate a bank or
863-11 banks within or outside the district on terms and conditions the
863-12 board finds advantageous to the district.
863-13 Sec. 279.024. POWERS RELATING TO WATER ACQUISITION. The
863-14 district may acquire water appropriation permits from owners of
863-15 permits. The district may lease or acquire rights in and to
863-16 storage and storage capacity in any reservoir constructed or to be
863-17 constructed by any person, firm, corporation, or public agency or
863-18 from the United States government or any of its agencies. The
863-19 district may purchase or make contracts for the purchase of water
863-20 or a water supply from any person, firm, corporation, or public
863-21 agency or from the United States government or any of its agencies.
863-22 Sec. 279.025. BONDS AS INVESTMENTS AND SECURITY FOR
863-23 DEPOSITS. (a) All bonds of the district are legal and authorized
863-24 investments for banks, savings banks, trust companies, building and
863-25 loan associations, savings and loan associations, insurance
863-26 companies, fiduciaries, trustees, and guardians and for the sinking
864-1 fund of cities, towns, villages, counties, school districts, or
864-2 other political corporations or subdivisions of the state.
864-3 (b) District bonds are eligible to secure the deposit of
864-4 public funds of the state and cities, towns, villages, counties,
864-5 school districts, or other political corporations or subdivisions
864-6 of the state. The bonds are lawful and sufficient security for the
864-7 deposits to the extent of the value of the bonds when accompanied
864-8 by all unmatured coupons appurtenant to the bonds.
864-9 Sec. 279.026. TAX EXEMPTION. The accomplishment of the
864-10 purposes stated in this chapter is for the benefit of the people of
864-11 the state and for the improvement of properties and industries of
864-12 the people of the state, and the district, in carrying out the
864-13 purposes of this chapter, will be performing an essential public
864-14 function under the constitution and shall not be required to pay
864-15 any tax or assessment on a project or any part of a project under
864-16 this chapter. The bonds issued as provided by this chapter and the
864-17 transfer of and income from the bonds, including the profits made
864-18 on the sale of the bonds, shall at all times be free from taxation
864-19 within the state.
864-20 Sec. 279.027. LEVYING, ASSESSMENT, EQUALIZATION, RENDITION,
864-21 AND COLLECTION OF TAXES. (a) Taxes throughout the district shall
864-22 be equitably distributed as required by Section 59, Article XVI,
864-23 Texas Constitution, and to that end, the board shall appoint an
864-24 assessor and collector of taxes and shall annually appoint a board
864-25 of equalization. Members of the board of equalization shall be
864-26 persons whom the board finds to be specially qualified to pass on
865-1 valuation of taxable property. The board of equalization shall
865-2 consist of four members with not more than one member being a
865-3 resident in any one city in the district, unless the board finds
865-4 that it cannot appoint from one or more of the cities a qualified
865-5 member who will serve on the board of equalization. A majority of
865-6 the board of equalization constitutes a quorum. General laws
865-7 applicable to water control and improvement districts with
865-8 reference to tax assessors and collectors and boards of
865-9 equalization apply to the district except as otherwise provided in
865-10 this chapter.
865-11 (b) The board may enter into a contract with a city within
865-12 the district under which the city will assess the property in the
865-13 city for taxes, equalize the assessed valuations of the property,
865-14 and prepare the tax rolls covering the property, provided that the
865-15 city assesses its valuations on the same ratio of actual value as
865-16 the district. If such a contract is made, the board shall,
865-17 nevertheless, appoint the board of equalization as provided in
865-18 Subsection (a) and the board of equalization shall examine the
865-19 rolls prepared under the contract, make further investigation and
865-20 provide for hearings, and make the revisions in assessed valuations
865-21 as the board considers necessary so that the taxable property in
865-22 all cities contained in the district is valued uniformly.
865-23 (c) The board may also contract with a city in the district
865-24 for the collection of district taxes levied on taxable property in
865-25 and adjacent to the city and within the district or may contract
865-26 with a county for collection of taxes in the part of the district
866-1 within the county.
866-2 (d) All taxes levied by the board are due and payable on the
866-3 first day of October of the year in which the taxes are levied and
866-4 shall be paid on or before January 31 of the following year.
866-5 (e) All taxes that have not been paid by the last day of
866-6 January shall become delinquent on the first day of February of
866-7 each year, and the delinquent taxes shall constitute a lien on the
866-8 property as provided by Section 59, Article XVI, Texas
866-9 Constitution, although the owner is unknown or the property is
866-10 listed in the name of a person who is not the actual owner, or
866-11 although the ownership is changed.
866-12 (f) Each year that taxes are delinquent a penalty equal to
866-13 six percent of the amount of the taxes shall be added to the total
866-14 amount due.
866-15 (g) The board may adopt a split tax payment plan to conform
866-16 to the plan in effect in a city with which the district makes a tax
866-17 equalization and collection contract, and the board shall make the
866-18 split tax payment plan effective in any other city contained in the
866-19 district on request of the governing body of the city.
866-20 (h) General laws applicable to water control and improvement
866-21 districts with reference to levy, assessment, and collection of ad
866-22 valorem taxes and to the enforced collection of delinquent taxes
866-23 apply to the district.
866-24 Sec. 279.028. ADDITIONAL POWERS. (a) The board may provide
866-25 for the study, correcting, and control of both artificial and
866-26 natural pollution of all water in and to flow into a reservoir
867-1 owned by the district, may adopt and promulgate all reasonable
867-2 regulations to secure, maintain, and preserve the sanitary
867-3 condition of all water in and to flow into a reservoir owned by the
867-4 district, to prevent the waste or the unauthorized use of the
867-5 water, and to protect the reservoir from the inflow of salt and
867-6 other chemicals, and may regulate residence, hunting, fishing,
867-7 boating, and camping, and all recreational and business privileges,
867-8 along or around the reservoir or a stream contributing water to its
867-9 reservoir or a body of land or easement owned by the district.
867-10 (b) The district may prescribe reasonable penalties for the
867-11 breach of a rule or regulation of the district, which penalties
867-12 shall not exceed a fine of more than $200, imprisonment for not
867-13 more than 30 days, or both a fine and imprisonment. The penalties
867-14 are in addition to any other penalties provided by the laws of the
867-15 state and may be enforced by complaints filed in the appropriate
867-16 court of jurisdiction. A rule or regulation that provides a
867-17 penalty for the violation of a rule or a regulation is not
867-18 effective or enforceable unless the district has published a
867-19 substantive statement of the particular rule or regulation and the
867-20 penalty for its violation once a week for two consecutive weeks in
867-21 the county in which the reservoir is situated or in any county in
867-22 which it is partly situated. The substantive statement must be as
867-23 condensed as possible to afford sufficient notice of the act
867-24 forbidden by the rule or regulation. A single notice may embrace a
867-25 number of rules or regulations. The notice must state that breach
867-26 of the rule or regulation will subject the violator to a penalty
868-1 and that the full text of the rule or regulation is on file in the
868-2 principal office of the district, where it may be read by any
868-3 interested person. Five days after the second publication of the
868-4 required notice, the rule or regulation shall be in effect, and
868-5 ignorance of the rule or regulation does not constitute a defense
868-6 to a prosecution for the enforcement of a penalty. The courts
868-7 shall take judicial notice of rules and regulations authorized by
868-8 this subsection, and the rules and regulations shall be considered
868-9 similar in nature to a valid penal ordinance of a city.
868-10 (c) The district may employ and constitute its own peace
868-11 officers. An officer of the district or another duly constituted
868-12 peace officer may make arrests when necessary to prevent or abate
868-13 the commission of an offense against the rules or regulations of
868-14 the district or state laws if the offense or threatened offense
868-15 occurs on land, water, or easement owned or controlled by the
868-16 district. An authorized officer may make an arrest at any place
868-17 where an offense is being committed involving injury or detriment
868-18 to any property owned or controlled by the district.
868-19 (d) Except as otherwise provided in this chapter, the
868-20 district is vested with all the rights, powers, and privileges
868-21 conferred by the general laws of the state applicable to water
868-22 control and improvement districts created under authority of
868-23 Section 59, Article XVI, Texas Constitution.
868-24 Sec. 279.029. RECREATIONAL FACILITIES. The district may
868-25 establish or otherwise provide for public parks and recreation
868-26 facilities and may acquire land for those purposes. No money
869-1 received from taxation or from bonds payable wholly or partially
869-2 from taxation shall be used to provide for the parks or facilities
869-3 nor shall the right of eminent domain be extended for such
869-4 purposes.
869-5 Sec. 279.030. CONFLICTS. Nothing in this chapter shall be
869-6 interpreted as repealing or modifying:
869-7 (1) the law creating the Brazos River Authority,
869-8 amendments to the law, or supplemental laws, including the master
869-9 plan previously adopted by the Brazos River Authority; or
869-10 (2) Section 11.024, which provides for priorities of
869-11 the use of water.
869-12 CHAPTER 280. WHITE RIVER MUNICIPAL WATER DISTRICT
869-13 Sec. 280.001. CREATION. (a) A conservation and reclamation
869-14 district to be known as the "White River Municipal Water District"
869-15 is created. The district is a governmental agency and a body
869-16 politic and corporate.
869-17 (b) The district is created under and is essential to
869-18 accomplish the purposes of Section 59, Article XVI, Texas
869-19 Constitution.
869-20 Sec. 280.002. DEFINITIONS. In this chapter:
869-21 (1) "Board" means the board of directors of the
869-22 district.
869-23 (2) "Director" means a member of the board.
869-24 (3) "District" means the White River Municipal Water
869-25 District.
869-26 Sec. 280.003. TERRITORY. The district contains all of the
870-1 territory contained in the boundaries of the city of Spur in
870-2 Dickens County, the cities of Crosbyton and Ralls in Crosby County,
870-3 and the city of Post in Garza County, as the boundaries of each
870-4 city are set forth in ordinances passed before May 15, 1957;
870-5 provided, however, that no invalidity of any of those ordinances or
870-6 the fixing of the boundaries as set out in those ordinances shall
870-7 affect the boundaries of the territory contained in the district;
870-8 the legislature finds and determines that all of the territory and
870-9 taxable property contained within the boundaries set forth in the
870-10 ordinances will benefit from the works and improvements of the
870-11 district and that the territory described in the ordinances shall
870-12 be contained within the district whether lawfully contained within
870-13 any of the cities or not.
870-14 Sec. 280.004. BOARD OF DIRECTORS. (a) All powers of the
870-15 district shall be exercised by a board of directors. Each director
870-16 serves for a term of two years.
870-17 (b) In December of each year the governing body of each city
870-18 contained in the district shall appoint a director or directors to
870-19 succeed the director or directors from the city whose term or terms
870-20 are about to expire. Any vacancy shall be filled for the unexpired
870-21 term by the governing body of the appropriate city. Three
870-22 directors shall be appointed by the governing body of each city
870-23 contained in the district, and each director shall reside in the
870-24 city from which the director is appointed.
870-25 (c) Each director serves for a term of office as provided by
870-26 this section and until a successor is appointed and has qualified.
871-1 (d) A director must reside in and own taxable property in
871-2 the city from which the director is appointed. A member of a
871-3 governing body of a city or an employee of a city is not eligible
871-4 to serve as a director.
871-5 (e) A director shall subscribe the constitutional oath of
871-6 office and shall give bond for the faithful performance of the
871-7 director's duties in the amount of $5,000, the cost of which shall
871-8 be paid by the district.
871-9 (f) A majority of the members of the board constitutes a
871-10 quorum.
871-11 (g) If a director moves from the city from which the
871-12 director is appointed or otherwise ceases to be a director, the
871-13 governing body of the city shall appoint a successor director for
871-14 the unexpired term.
871-15 Sec. 280.005. DIRECTOR FEES. (a) Each director is entitled
871-16 to receive a fee not to exceed $20 for attending each meeting of
871-17 the board; provided, however, that no more than $40 is paid to a
871-18 director for meetings held in any one calendar month.
871-19 (b) Each director is entitled to receive a fee not to exceed
871-20 $20 per day for each day devoted to the business of the district
871-21 and reimbursement for actual expenses incurred in attending to
871-22 district business if such service and expense are expressly
871-23 approved by the board.
871-24 Sec. 280.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
871-25 shall elect from among its members a president and a vice president
871-26 of the district, and other officers the board considers necessary.
872-1 (b) The president is the chief executive officer of the
872-2 district and the presiding officer of the board and has the same
872-3 right to vote as any other director.
872-4 (c) The vice president shall perform all duties and exercise
872-5 all powers conferred by this chapter on the president when the
872-6 president is absent or fails or declines to act, except the
872-7 president's right to vote.
872-8 (d) The board shall appoint a secretary and a treasurer who
872-9 may or may not be members of the board, and it may combine those
872-10 offices. The treasurer shall give bond in an amount required by
872-11 the board. The bond shall be conditioned on the treasurer's
872-12 faithfully accounting for all funds that come into the person's
872-13 custody as treasurer of the district.
872-14 (e) The board shall appoint necessary engineers, attorneys,
872-15 and other employees and shall employ a general manager. The power
872-16 to employ and discharge employees may be conferred on the general
872-17 manager.
872-18 (f) The board shall adopt a seal for the district.
872-19 Sec. 280.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
872-20 (a) Other territory situated within the counties of Dickens,
872-21 Crosby, and Garza may be annexed to the district as provided by
872-22 this section.
872-23 (b) A petition for annexation must:
872-24 (1) be signed by 50 or a majority, whichever number is
872-25 less, of the qualified voters of the territory to be annexed who
872-26 own taxable property and who have duly rendered the same to the
873-1 city, if situated within a city or town, or county for taxation;
873-2 (2) be filed with the board; and
873-3 (3) describe the territory to be annexed by metes and
873-4 bounds or otherwise unless the territory is the same as that
873-5 contained in a city or town, in which event it shall be sufficient
873-6 to state that the territory to be annexed is that contained within
873-7 the city or town.
873-8 (c) If the board finds that the petition complies with and
873-9 is signed by the number of qualified persons required under
873-10 Subsection (b), that the annexation would be in the interest of the
873-11 territory to be annexed and the district, and that the district
873-12 will be able to supply water to the territory to be annexed or
873-13 cause water to be supplied to the territory to be annexed, the
873-14 board shall adopt a resolution stating the conditions, if any,
873-15 under which the territory may be annexed to the district and
873-16 requesting the commission to annex the territory to the district.
873-17 The resolution shall be conclusive of the legal sufficiency of the
873-18 petition and the qualifications of the signers. A certified copy
873-19 of the resolution and the petition shall be filed with the
873-20 commission.
873-21 (d) The commission shall adopt a resolution declaring its
873-22 intention to call an election in the territory to be annexed for
873-23 the purpose of submitting the proposition of whether the territory
873-24 shall be annexed to the district. The commission shall set a time
873-25 and place for a hearing to be held by the commission on the
873-26 question of whether the territory to be annexed will benefit from
874-1 the improvements, works, and facilities then owned or operated or
874-2 contemplated to be owned or operated by the district or will
874-3 benefit from the other functions of the district. Railroad
874-4 right-of-way that is not situated within the defined limits of an
874-5 incorporated city or town will not benefit from the improvements,
874-6 works, and facilities that the district is authorized to construct.
874-7 Railroad right-of-way may not be annexed to the district unless the
874-8 right-of-way is contained within the limits of an incorporated city
874-9 or town that has been annexed to the district.
874-10 (e) Notice of the adoption of the resolution stating the
874-11 time and place of the hearing addressed to the citizens and owners
874-12 of property in the territory to be annexed shall be published one
874-13 time in a newspaper designated by the commission at least 10 days
874-14 before the date of the hearing. The notice must describe the
874-15 territory to be annexed in the same manner in which it is required
874-16 or permitted by this chapter to be described in the petition.
874-17 (f) All interested persons may appear at the hearing and
874-18 offer evidence for or against the intended annexation. The hearing
874-19 may proceed in the order and under the rules as may be prescribed
874-20 by the commission and may be recessed from time to time. If, at
874-21 the conclusion of the hearing, the commission finds that lands in
874-22 the territory to be annexed will benefit from the present or
874-23 contemplated improvements, works, or facilities of the district,
874-24 the commission shall adopt a resolution calling an election in the
874-25 territory to be annexed stating the date of and the place or places
874-26 for holding the election and appointing a presiding judge for each
875-1 voting place, who shall appoint the necessary assistant judges and
875-2 clerks to assist in holding the election.
875-3 (g) Notice of the election, stating the date of the
875-4 election, the proposition to be voted on, and the conditions under
875-5 which the territory may be annexed, or making reference to the
875-6 resolution of the board for that purpose, and the place or places
875-7 for holding the election, shall be published one time in a
875-8 newspaper designated by the commission at least 10 days before the
875-9 date set for the election.
875-10 (h) Only qualified electors who reside in the territory to
875-11 be annexed may vote in the election. Returns of the election shall
875-12 be made to the commission.
875-13 (i) The commission shall canvass the returns of the election
875-14 and adopt an order declaring the results. If the order shows that
875-15 a majority of the votes cast are in favor of annexation, the
875-16 commission shall annex the territory to the district, and the
875-17 annexation is incontestable except in the manner and within the
875-18 time for contesting elections under the Election Code. A certified
875-19 copy of the order shall be recorded in the deed records of the
875-20 county in which the annexed territory is situated.
875-21 (j) In calling the election on the proposition for the
875-22 annexation of territory, the commission may include as a part of
875-23 the same proposition a proposition for:
875-24 (1) the assumption of the territory's part of the
875-25 tax-supported bonds of the district then outstanding and those
875-26 previously voted but not yet sold; and
876-1 (2) the levy of an ad valorem tax on taxable property
876-2 in the territory to be annexed along with the tax in the rest of
876-3 the district for the payment of the bonds.
876-4 (k) After territory is added to the district, the board may
876-5 call an election over the entire district for the purpose of
876-6 determining whether the entire district as enlarged shall assume
876-7 the tax-supported bonds then outstanding and those voted but not
876-8 yet sold and whether an ad valorem tax shall be levied on all
876-9 taxable property within the district as enlarged for the payment of
876-10 the bonds, unless the proposition has been voted along with the
876-11 annexation election and becomes lawfully binding on the territory
876-12 annexed. The election shall be called and held in the same manner
876-13 as elections for the issuance of bonds as provided by this chapter.
876-14 (l) If no newspaper is published in the territory to be
876-15 annexed, the notices required by this section shall be posted at
876-16 three public places in the territory.
876-17 Sec. 280.008. ANNEXATION OF CERTAIN MUNICIPAL TERRITORY.
876-18 (a) Territory annexed to a city contained in the district may be
876-19 annexed to the district as provided by this section.
876-20 (b) At any time after final passage of an ordinance or
876-21 resolution annexing territory to a city contained in the district,
876-22 the board may issue a notice of a hearing on the question of
876-23 annexing the territory or any part of the territory. The notice is
876-24 sufficient if it states the date and place of the hearing and:
876-25 (1) describes the area proposed to be annexed; or
876-26 (2) makes reference to the annexation ordinance of the
877-1 city.
877-2 (c) The notice must be published one time in a newspaper
877-3 having general circulation in the city that made the annexation.
877-4 The publication must be at least 10 days before the date set for
877-5 the hearing.
877-6 (d) If, at the hearing, the board finds that the territory
877-7 to be annexed will benefit from the water supply afforded or to be
877-8 afforded by the district, the board shall adopt a resolution
877-9 annexing the territory to the district.
877-10 Sec. 280.009. APPOINTMENT OF DIRECTORS IN ANNEXED TERRITORY.
877-11 If the territory of a city is annexed to the district, the
877-12 governing body of the city shall appoint three directors. The term
877-13 of one appointee shall expire on the following May 31 and the term
877-14 of the other two appointees shall expire on May 31 a year later.
877-15 Thereafter the directors shall be appointed as provided in Section
877-16 280.004.
877-17 Sec. 280.010. WATER APPROPRIATION PERMITS. The district may
877-18 obtain appropriation permits from the commission through
877-19 appropriate hearings as provided by Chapter 11. Thereafter the
877-20 permit, either on application of the district or on the initiative
877-21 of the commission, may be modified by the commission, after an
877-22 appropriate hearing, to increase or decrease the amount of water
877-23 that may be appropriated, and after considering the amount of water
877-24 that may be stored by the district to meet fluctuating demands,
877-25 either on application by the district or by its own action, the
877-26 commission shall redetermine the maximum amount of water that the
878-1 district may store in its reservoir. In making this determination,
878-2 the commission shall consider the needs of the cities and others
878-3 that purchase water from the district.
878-4 Sec. 280.011. AUTHORITY TO IMPOUND AND TRANSPORT WATER;
878-5 COMMISSION APPROVAL. (a) The district may acquire or construct,
878-6 within or outside the boundaries of the district but not outside
878-7 any county in which the district is located, dams and all works,
878-8 plants, and other facilities necessary or useful for the purpose of
878-9 impounding, processing, and transporting water to cities and others
878-10 for municipal, domestic, industrial, and mining purposes.
878-11 (b) The size of a dam and reservoir shall be determined by
878-12 the board, taking into consideration probable future increases in
878-13 water requirements.
878-14 (c) The size of a dam shall not be limited by the amount of
878-15 water initially authorized by the commission or a predecessor
878-16 agency of the commission to be impounded in the reservoir.
878-17 (d) A dam or other facility for impounding water may not be
878-18 constructed until the plan for the project is approved by the
878-19 commission.
878-20 Sec. 280.012. ACQUISITION AND DISPOSITION OF PROPERTY.
878-21 (a) The district may acquire land, within or outside the
878-22 boundaries of the district but not outside any county in which the
878-23 district is located, and may construct, lease, or otherwise acquire
878-24 all works, plants, and other facilities necessary or useful for the
878-25 purpose of diverting, further impounding or storing, processing,
878-26 and transporting water to cities and others for municipal,
879-1 domestic, industrial, and mining purposes.
879-2 (b) Subject to the terms of any deed of trust issued by the
879-3 district, the district may sell, trade, or otherwise dispose of any
879-4 real or personal property determined by the board not to be needed
879-5 for district purposes.
879-6 (c) The district may not develop or otherwise acquire
879-7 underground sources of water.
879-8 Sec. 280.013. EMINENT DOMAIN. (a) For the purpose of
879-9 carrying out any power or authority conferred by this chapter, the
879-10 district may acquire by condemnation in the manner provided by
879-11 Chapter 21, Property Code, the fee simple title to land and other
879-12 property and easements, including land needed for the reservoir and
879-13 dam and flood easements above the probable high-water line around
879-14 the reservoir, within or outside the boundaries of the district but
879-15 not outside any county in which the district is located.
879-16 (b) The district is a municipal corporation within the
879-17 meaning of Section 21.021(c), Property Code, except that the
879-18 district may not condemn any property owned by any other political
879-19 subdivision, city, or town.
879-20 (c) As against persons, firms, and corporations, or their
879-21 receivers or trustees, who have the power of eminent domain, the
879-22 fee title may not be condemned, and the district may condemn only
879-23 an easement.
879-24 (d) In accordance with the provisions of this section, the
879-25 amount and character of interest in land, other property, and
879-26 easements to be acquired shall be determined by the board.
880-1 (e) The district has the power conferred by Section 49.221
880-2 with reference to making surveys and attending to other business of
880-3 the district.
880-4 (f) If the district, in the exercise of the power of eminent
880-5 domain or power of relocation or any other power granted under this
880-6 chapter, makes necessary the relocation, raising, rerouting,
880-7 changing the grade, or altering the construction of any highway,
880-8 railroad, electric transmission line, telephone or telegraph
880-9 properties and facilities, or pipelines, all such necessary
880-10 relocation, raising, rerouting, changing of grade, or alteration of
880-11 construction shall be accomplished at the sole expense of the
880-12 district.
880-13 Sec. 280.014. CONTRACTS; BIDS. A construction contract
880-14 requiring an expenditure of more than $25,000 may only be made
880-15 after publication of a notice to bidders once each week for two
880-16 weeks before the contract is awarded. The notice is sufficient if
880-17 it states the time and location the bids will be opened, states the
880-18 general nature of the work to be done or the material, equipment,
880-19 or supplies to be purchased, and states where and on what terms
880-20 copies of the plans and specifications may be obtained. The
880-21 publication shall be in a newspaper published in the district and
880-22 designated or approved by the board.
880-23 Sec. 280.015. ISSUANCE OF BONDS. (a) For the purpose of
880-24 providing a source of water supply for cities and other users for
880-25 municipal, domestic, industrial, mining, and oil flooding purposes
880-26 as authorized by this chapter and for the purpose of carrying out
881-1 any other power or authority conferred by this chapter, the
881-2 district may issue negotiable bonds to be payable from such
881-3 revenues or taxes, or both revenues and taxes, of the district as
881-4 are pledged by resolution of the board. Pending the issuance of
881-5 definitive bonds, the board may authorize the delivery of
881-6 negotiable interim bonds or notes that are eligible for exchange or
881-7 substitution by the definitive bonds.
881-8 (b) Bonds must be authorized by resolution of the board.
881-9 The bonds shall be issued in the name of the district, signed by
881-10 the president or vice president, and attested by the secretary and
881-11 shall bear the seal of the district. The signatures of the
881-12 president or of the secretary or of both may be printed or
881-13 lithographed on the bonds if authorized by the board, and the seal
881-14 of the district may be impressed on the bonds or may be printed or
881-15 lithographed on the bonds.
881-16 (c) Bonds must mature, serially or otherwise, in not to
881-17 exceed 40 years and may be sold at a price and under terms
881-18 determined by the board to be the most advantageous reasonably
881-19 obtainable, provided that the interest cost to the district,
881-20 including the discount, if any, calculated by use of standard bond
881-21 interest tables currently in use by insurance companies and
881-22 investment houses does not exceed six percent per year. Within the
881-23 discretion of the board, bonds may be made callable prior to
881-24 maturity at such times and prices as may be prescribed in the
881-25 resolution authorizing the bonds and may be made registrable as to
881-26 principal or as to both principal and interest.
882-1 (d) Bonds may be issued in more than one series and from
882-2 time to time as required for carrying out the purposes of this
882-3 chapter.
882-4 (e) Bonds may be secured by a pledge of all or part of the
882-5 net revenues of the district, of the net revenues of one or more
882-6 contracts made before or after the bonds are issued, or of other
882-7 revenues or income specified by resolution of the board or in the
882-8 trust indenture. A pledge may reserve the right, under conditions
882-9 specified in the pledge, to issue additional bonds that will be on
882-10 a parity with or subordinate to the bonds being issued. In this
882-11 section, "net revenues" means the gross revenues and income of the
882-12 district from all sources less the amount necessary to pay the cost
882-13 of maintaining and operating the district and its properties.
882-14 (f) The district may issue bonds payable from ad valorem
882-15 taxes to be levied on all taxable property in the district and may
882-16 issue bonds secured by and payable from both such taxes and the
882-17 revenues of the district. If bonds are issued payable wholly or
882-18 partially from ad valorem taxes, the board shall levy a tax
882-19 sufficient to pay the bonds and the interest on the bonds as the
882-20 bonds and interest become due. The rate of the tax for any year
882-21 may be set after giving consideration to the money received from
882-22 the pledged revenues available for payment of principal and
882-23 interest to the extent and in the manner permitted by the
882-24 resolution authorizing the issuance of the bonds.
882-25 (g) If bonds payable wholly from revenues are issued, the
882-26 board shall set, and from time to time revise, rates of
883-1 compensation for water sold and services rendered by the district
883-2 sufficient to pay the expense of operating and maintaining the
883-3 facilities of the district and to pay the bonds as they mature and
883-4 the interest as it accrues and to maintain the reserve and other
883-5 funds as provided in the resolution authorizing the bonds. If
883-6 bonds payable partially from revenues are issued, the board shall
883-7 set, and from time to time revise, rates of compensation for water
883-8 sold and services rendered by the district sufficient to assure
883-9 compliance with the resolution authorizing the bonds.
883-10 (h) From the proceeds of the sale of the bonds, the district
883-11 may set aside an amount for the payment of interest expected to
883-12 accrue during construction and for a reserve interest and sinking
883-13 fund, and such provision may be made in the resolution authorizing
883-14 the bonds. Proceeds from the sale of the bonds may also be used
883-15 for the payment of all expenses necessarily incurred in
883-16 accomplishing the purposes for which the district is created,
883-17 including the expenses of issuing and selling the bonds. The
883-18 proceeds from the sale of the bonds may be temporarily invested in
883-19 direct obligations of the United States government maturing in not
883-20 more than one year from the date of investment.
883-21 (i) In the event of a default or a threatened default in the
883-22 payment of principal or interest on bonds payable wholly or
883-23 partially from revenues, any court of competent jurisdiction may,
883-24 on petition of the holders of outstanding bonds, appoint a receiver
883-25 with authority to collect and receive all income of the district
883-26 except taxes, employ and discharge agents and employees of the
884-1 district, take charge of the district's funds on hand (except funds
884-2 received from taxes, unless commingled), and manage the proprietary
884-3 affairs of the district without consent or hindrance by the board.
884-4 The receiver may also be authorized to sell or make contracts for
884-5 the sale of water or renew the contracts with the approval of the
884-6 court appointing the receiver. The court may vest the receiver
884-7 with other powers and duties the court finds necessary for the
884-8 protection of the holders of the bonds. The resolution authorizing
884-9 the issuance of the bonds or the trust indenture securing them may
884-10 limit or qualify the rights of less than all of the outstanding
884-11 bonds payable from the same source to institute or prosecute any
884-12 litigation affecting the district's property or income.
884-13 Sec. 280.016. REFUNDING BONDS. (a) The district may issue
884-14 refunding bonds for the purpose of refunding outstanding bonds
884-15 authorized by this chapter and interest on the bonds. Refunding
884-16 bonds may be issued to refund more than one series of outstanding
884-17 bonds and combine the pledges for the outstanding bonds for the
884-18 security of the refunding bonds, and refunding bonds may be secured
884-19 by other or additional revenues and mortgage liens.
884-20 (b) The provisions of this chapter regarding the issuance by
884-21 the district of other bonds, their security, their approval by the
884-22 attorney general, and the remedies of the holders shall be
884-23 applicable to refunding bonds. Refunding bonds shall be registered
884-24 by the comptroller on surrender and cancellation of the bonds to be
884-25 refunded, but in lieu of that procedure, the resolution authorizing
884-26 the issuance of the refunding bonds may provide that the refunding
885-1 bonds shall be sold and the proceeds of the sale deposited in the
885-2 bank where the original bonds are payable, in which case the
885-3 refunding bonds may be issued in an amount sufficient to pay the
885-4 principal of and the interest on the original bonds to their option
885-5 date or maturity date, and the comptroller shall register the
885-6 refunding bonds without concurrent surrender and cancellation of
885-7 the original bonds.
885-8 Sec. 280.017. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE
885-9 LIEN. (a) Bonds, including refunding bonds, authorized by this
885-10 chapter that are not payable wholly from ad valorem taxes may be
885-11 additionally secured by a trust indenture under which the trustee
885-12 may be a bank with trust powers located either within or outside
885-13 the state. The bonds may, within the discretion of the board, be
885-14 additionally secured by a deed of trust or mortgage lien on
885-15 physical properties of the district and all franchises, easements,
885-16 water rights and appropriation permits, leases and contracts, and
885-17 rights appurtenant to the properties, vesting in the trustee power
885-18 to sell the properties for the payment of the indebtedness, power
885-19 to operate the properties, and all other powers and authority for
885-20 the further security of the bonds.
885-21 (b) The trust indenture, regardless of the existence of a
885-22 deed of trust or mortgage lien on the properties, may:
885-23 (1) contain any provisions prescribed by the board for
885-24 the security of the bonds and the preservation of the trust estate;
885-25 (2) make provision for amendment or modification of
885-26 the trust indenture and the issuance of bonds to replace lost or
886-1 mutilated bonds;
886-2 (3) condition the right to expend district money or
886-3 sell district property upon approval of a registered professional
886-4 engineer selected as provided in the trust indenture; and
886-5 (4) make provision for the investment of funds of the
886-6 district.
886-7 (c) A purchaser under a sale under a deed of trust lien,
886-8 where one is given, is the absolute owner of the properties,
886-9 facilities, and rights purchased and has the right to maintain and
886-10 operate the properties, facilities, and rights.
886-11 Sec. 280.018. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION.
886-12 (a) Bonds payable wholly or partially from ad valorem taxes,
886-13 except refunding bonds, may not be issued unless authorized by an
886-14 election at which only the qualified voters who reside in the
886-15 district are allowed to vote and a majority of the votes cast in
886-16 each city contained in the district are in favor of the issuance of
886-17 the bonds. If a majority of the votes cast in any city contained
886-18 in the district are against the issuance of the bonds, the board
886-19 may adopt a resolution detaching the territory of the city from the
886-20 district if the board finds that it is in the best interest of the
886-21 district to issue bonds payable wholly or partially from taxes, but
886-22 no territory shall be detached from the district after the issuance
886-23 of bonds that are payable from revenues or taxes or both. Bonds
886-24 not payable wholly or partially from ad valorem taxes may be issued
886-25 without an election.
886-26 (b) An election for the authorization of bonds may be called
887-1 by the board without a petition. The resolution calling the
887-2 election must specify the time and places of holding the election,
887-3 the purpose for which the bonds are to be issued, the maximum
887-4 amount of the bonds, the maximum maturity of the bonds, the form of
887-5 the ballot, and the presiding judge for each voting place. The
887-6 presiding judge serving at each voting place shall appoint one
887-7 assistant judge and at least two clerks to assist in holding the
887-8 election. Notice of the election shall be given by publishing a
887-9 substantial copy of the notice in a newspaper published in each
887-10 city contained in the district for two consecutive weeks. The
887-11 first publication must be at least 21 days before the date of the
887-12 election. In a city in which no newspaper is published, notice
887-13 shall be given by posting a copy of the resolution in three public
887-14 places.
887-15 (c) The returns of the election shall be made to and
887-16 canvassed by the board.
887-17 (d) Elections held under this section shall be governed by
887-18 the Election Code except as otherwise provided by this chapter.
887-19 Sec. 280.019. BOND APPROVAL AND REGISTRATION. After bonds,
887-20 including refunding bonds, are authorized by the district, the
887-21 bonds and the record relating to their issuance shall be submitted
887-22 to the attorney general for examination as to the validity of the
887-23 bonds. If the bonds recite that they are secured by a pledge of
887-24 the proceeds of a contract previously made between the district and
887-25 a city or other governmental agency, authority, or district, a copy
887-26 of the contract and the proceedings of the city or other
888-1 governmental agency, authority, or district authorizing the
888-2 contract shall also be submitted to the attorney general. If the
888-3 bonds have been authorized and any contracts have been made in
888-4 accordance with the constitution and laws of the state, the
888-5 attorney general shall approve the bonds and the contracts and the
888-6 bonds then shall be registered by the comptroller. After their
888-7 approval, the bonds and the contracts, if any, are valid and
888-8 binding and are incontestable for any cause.
888-9 Sec. 280.020. CONTRACTS WITH CITIES AND OTHERS. The
888-10 district may enter into contracts with cities and others for
888-11 supplying water to them. The district may also contract with a
888-12 city for the rental or leasing of, or for the operation of, the
888-13 water production, water supply, and water filtration or
888-14 purification and water supply facilities of the city for the
888-15 consideration the district and the city agree on. The contract may
888-16 be on the terms and for the time as the parties may agree, and the
888-17 contract may provide that it shall continue in effect until bonds
888-18 specified in the contract and refunding bonds issued in lieu of
888-19 those bonds are paid.
888-20 Sec. 280.021. DISTRICT DEPOSITORY. (a) The board shall
888-21 designate one or more banks within the district to serve as
888-22 depository for the funds of the district. All funds of the
888-23 district shall be deposited in the depository bank or banks, except
888-24 that funds pledged to pay bonds may be deposited with the trustee
888-25 bank named in the trust agreement and except that funds shall be
888-26 remitted to the bank of payment for the payment of principal of and
889-1 interest on bonds. To the extent that funds in the depository
889-2 banks and the trustee bank are not insured by the Federal Deposit
889-3 Insurance Corporation, the funds shall be secured in the manner
889-4 provided by law for the security of county funds.
889-5 (b) Before designating a depository bank or banks, the board
889-6 shall issue a notice stating the time and place the board will meet
889-7 to designate the depository or depositories and inviting the banks
889-8 in the district to submit applications to be designated
889-9 depositories. The notice must be published one time in a newspaper
889-10 or newspapers published in the district and specified by the board.
889-11 (c) At the time stated in the notice, the board shall
889-12 consider the applications and the management and condition of the
889-13 banks filing them and shall designate as depositories the bank or
889-14 banks that offer the most favorable terms and conditions for the
889-15 handling of the funds of the district and that the board finds have
889-16 proper management and are in condition to warrant the handling of
889-17 district funds. Membership on the board of an officer or director
889-18 of a bank does not disqualify that bank from being designated as a
889-19 depository.
889-20 (d) If no applications are received by the time stated in
889-21 the notice, the board shall designate a bank or banks within or
889-22 outside the district on terms and conditions the board determines
889-23 are advantageous to the district.
889-24 (e) The term of service for depositories shall be prescribed
889-25 by the board.
889-26 Sec. 280.022. WATER APPROPRIATION PERMITS; ACQUISITION OF
890-1 STORAGE CAPACITY AND WATER. The district may acquire water
890-2 appropriation permits from owners of permits. The district may
890-3 lease or acquire rights in and to storage and storage capacity in
890-4 any reservoir constructed or to be constructed by any person, firm,
890-5 corporation, or public agency or from the United States government
890-6 or any of its agencies.
890-7 Sec. 280.023. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
890-8 DEPOSITS. (a) Bonds of the district are legal and authorized
890-9 investments for banks, savings banks, trust companies, building and
890-10 loan associations, savings and loan associations, insurance
890-11 companies, fiduciaries, trustees, and guardians and for the sinking
890-12 funds of cities, towns, villages, counties, school districts, or
890-13 other political corporations or subdivisions of the state.
890-14 (b) The bonds are eligible to secure the deposit of all
890-15 public funds of the state and all public funds of cities, towns,
890-16 villages, counties, school districts, or other political
890-17 corporations or subdivisions of the state. Bonds are lawful and
890-18 sufficient security for the deposits to the extent of their value
890-19 when accompanied by all unmatured coupons.
890-20 Sec. 280.024. BONDS EXEMPT FROM TAXATION. The
890-21 accomplishment of the purposes stated in this chapter is for the
890-22 benefit of the people of the state and for the improvement of their
890-23 properties and industries, and the district, in carrying out the
890-24 purposes of this chapter will be performing an essential public
890-25 function under Section 59, Article XVI, Texas Constitution. The
890-26 district may not be required to pay any tax or assessment on the
891-1 project or any part of the project, and the bonds issued under this
891-2 chapter and the transfer of and income from the bonds, including
891-3 profits made on the sale of the bonds, shall at all times be free
891-4 from taxation within the state.
891-5 Sec. 280.025. TAX ROLLS. (a) The tax rolls of the cities
891-6 situated within the district as created and within annexed
891-7 territory shall constitute the tax rolls of the district until
891-8 assessments and tax rolls are made by the district.
891-9 (b) Before the sale and delivery of district bonds that are
891-10 payable wholly or partially from ad valorem taxes, the board shall
891-11 appoint a tax assessor and collector and a board of equalization
891-12 and shall cause taxes to be assessed, valuations to be equalized,
891-13 and tax rolls to be prepared. General laws applicable to water
891-14 control and improvement districts with reference to tax assessors
891-15 and collectors, boards of equalization, tax rolls, and the levy and
891-16 collection of taxes and delinquent taxes shall be applicable to the
891-17 district, except that the board of equalization, to be appointed
891-18 each year by the board, shall consist of one member residing in
891-19 each city contained in the district.
891-20 Sec. 280.026. ADOPTION OF REGULATIONS; PENALTIES;
891-21 ENFORCEMENT. (a) The board may adopt and promulgate all
891-22 reasonable regulations to secure, maintain, and preserve the
891-23 sanitary condition of all water in and to flow into any reservoir
891-24 owned by the district to prevent the waste or unauthorized use of
891-25 water and to regulate residence, hunting, fishing, boating, and
891-26 camping and all recreational and business privileges along or
892-1 around any reservoir or any body of land or easement owned by the
892-2 district.
892-3 (b) The district may prescribe a reasonable penalty for the
892-4 breach of a regulation of the district, not to exceed a fine of
892-5 $200 or imprisonment for 30 days, or both the fine and
892-6 imprisonment. The penalty shall be in addition to any other
892-7 penalties provided by the laws of the state and may be enforced by
892-8 complaints filed in the appropriate court of jurisdiction;
892-9 provided, however, that no rule or regulation that provides a
892-10 penalty for a violation of the rule or regulation shall be in
892-11 effect, as to enforcement of the penalty, until five days after the
892-12 district has caused a substantive statement of the rule or
892-13 regulation and the penalty for the violation to be published once a
892-14 week for two consecutive weeks in the county in which the reservoir
892-15 is situated or in any county in which it is partly situated. The
892-16 substantive statement to be published must be as condensed as is
892-17 possible to afford sufficient notice as to the act forbidden by the
892-18 rule or regulation. A single notice may embrace any number of
892-19 regulations. The notice must provide the information that breach
892-20 of the regulation or regulations will subject the violator to the
892-21 imposition of a penalty. The notice must also state that the full
892-22 text of the regulations is on file in the principal office of the
892-23 district and may be read by any interested person. Five days after
892-24 the second publication of the notice required by this section, the
892-25 advertised regulation shall be in effect, and ignorance of the
892-26 regulation is not a defense to prosecution for the enforcement of a
893-1 penalty. After the required publication, the rules and regulations
893-2 authorized by this section shall judicially be known to the courts
893-3 and shall be considered similar in nature to a valid penal
893-4 ordinance of a city.
893-5 (c) A duly constituted peace officer may make arrests when
893-6 necessary to prevent or stop the commission of any offense against
893-7 the regulations of the district or against the laws of the state,
893-8 when the offense or threatened offense occurs on any land, water,
893-9 or easement owned or controlled by the district, or may make an
893-10 arrest at any place in the case of an offense involving injury or
893-11 detriment to any property owned or controlled by the district.
893-12 Sec. 280.027. PARKS AND RECREATION FACILITIES. The district
893-13 may establish or otherwise provide for public parks and recreation
893-14 facilities and may acquire land for such purposes within or outside
893-15 the district but not outside any county in which the district is
893-16 located; provided, however, that no money received from taxation or
893-17 from bonds payable wholly or partially from taxation may be used
893-18 for such purposes, and the right of eminent domain may not be
893-19 extended for such purposes.
893-20 Sec. 280.028. EFFECT ON PRIORITY OF WATER USE. Nothing in
893-21 this Act shall be interpreted as amending or repealing Section
893-22 11.024, which provides for priorities of the use of water.
893-23 SECTION 2. Subtitle A, Title 2, Water Code, is amended by
893-24 adding Chapter 9 to read as follows:
893-25 CHAPTER 9. TEXAS WATER POLICY COUNCIL
893-26 Sec. 9.001. DEFINITION. In this chapter:
894-1 (1) "Authority" means an entity listed in Section
894-2 9.010(b).
894-3 (2) "Board" means the governing body of an authority.
894-4 (3) "Commission" means the Texas Natural Resource
894-5 Conservation Commission.
894-6 (4) "Council" means the Texas Water Policy Council.
894-7 Sec. 9.002. CREATION AND MEMBERSHIP. (a) The council is
894-8 composed of seven members as follows:
894-9 (1) the chairman, or a board member designated by the
894-10 chairman, of the Texas Water Development Board;
894-11 (2) the chairman, or a commissioner designated by the
894-12 chairman, of the commission;
894-13 (3) the chairman, or a commissioner designated by the
894-14 chairman, of the Parks and Wildlife Commission;
894-15 (4) the commissioner of agriculture; and
894-16 (5) three members of the general public, appointed by
894-17 the governor.
894-18 (b) Council members may not delegate council participation
894-19 or council duties to staff.
894-20 Sec. 9.003. TERMS. (a) Except for the commissioner of
894-21 agriculture, council members who are officials of state agencies
894-22 serve terms as determined by the chairman of each agency.
894-23 (b) Council members who are members of the general public
894-24 serve staggered six-year terms with the term of one member expiring
894-25 August 31 of each odd-numbered year.
894-26 (c) Council members may be reappointed to serve additional
895-1 terms.
895-2 (d) A vacancy on the council shall be filled by appointment
895-3 by the original appointing authority for the unexpired term.
895-4 Sec. 9.004. OFFICERS OF THE COUNCIL. (a) The governor
895-5 shall appoint a council member as the chair of the council for a
895-6 two-year term expiring May 31 of each even-numbered year.
895-7 (b) The council shall have a secretary of the council who,
895-8 by virtue of the position, shall be a full-time employee of the
895-9 commission but shall serve at the pleasure of the council and be
895-10 accountable only to the council.
895-11 Sec. 9.005. COUNCIL STAFF. On request by the council, the
895-12 commission and the Texas Water Development Board shall provide any
895-13 staff other than the secretary of the council necessary to assist
895-14 the council in the performance of its duties.
895-15 Sec. 9.006. MEETINGS. (a) The council shall meet at least
895-16 once in each calendar quarter. Four members shall constitute a
895-17 quorum sufficient to conduct meetings and the business of the
895-18 council.
895-19 (b) The council is subject to Chapters 551 and 2001,
895-20 Government Code.
895-21 Sec. 9.007. COMPENSATION OF MEMBERS. (a) Members of the
895-22 council shall serve without compensation but may be reimbursed by
895-23 legislative appropriation for actual and necessary expenses related
895-24 to the performance of council duties.
895-25 (b) Reimbursements under Subsection (a) shall be subject to
895-26 the approval of the chair.
896-1 Sec. 9.008. POWERS AND DUTIES OF COUNCIL. (a) The council
896-2 shall:
896-3 (1) provide guidance on state surface water and
896-4 groundwater policy initiatives, including:
896-5 (A) clarifying groundwater management;
896-6 (B) providing flexibility and incentives for
896-7 water desalination, brush control, regionalization, weather
896-8 modification projects, and public-private partnerships relating to
896-9 water projects;
896-10 (C) financing of surface water and groundwater
896-11 projects;
896-12 (D) development of water conservation and
896-13 drought management projects;
896-14 (E) implementation of approved regional and
896-15 state water plans;
896-16 (F) conjunctive use and management of surface
896-17 water and groundwater;
896-18 (G) protection of environmental needs, including
896-19 instream flows, freshwater inflows, and fish and wildlife habitats;
896-20 (H) ensuring commonality of technical data and
896-21 information such as joint agency studies, freshwater inflow
896-22 recommendations, surface water and groundwater availability models,
896-23 and instream flow recommendations developed by the Parks and
896-24 Wildlife Department, the commission, and the Texas Water
896-25 Development Board; and
896-26 (I) encouraging the use of supplemental
897-1 environmental projects for water infrastructure needs and enhancing
897-2 the aquatic environment and habitat in enforcement proceedings at a
897-3 state agency or political subdivision;
897-4 (2) act as a policy liaison regarding the roles of,
897-5 the relationships among, and the ongoing duties of local, regional,
897-6 state, federal, and international water management entities,
897-7 including groundwater districts, river authorities and compacts,
897-8 regional water planning groups, and member agencies of the council;
897-9 (3) coordinate a unified state position on federal and
897-10 international water issues;
897-11 (4) act as an advocate for, and assist in the
897-12 prioritizing of, projects recommended by regional water planning
897-13 groups; and
897-14 (5) create a process for developing future groundwater
897-15 management standards for each aquifer.
897-16 (b) The council may not:
897-17 (1) regulate water use, water quality, or any other
897-18 aspect of water resource management;
897-19 (2) plan or construct water resource projects, or have
897-20 such projects planned or constructed; or
897-21 (3) grant or loan any funds for the construction of
897-22 water resource projects.
897-23 (c) The council shall evaluate the need for and, if
897-24 appropriate, develop a strategy for reorganizing or improving the
897-25 efficiency of local, regional, and state water management entities
897-26 and agencies.
898-1 Sec. 9.009. REPORT. Not later than December 1 of each
898-2 even-numbered year, the council shall submit a report to the
898-3 governor, lieutenant governor, and speaker of the house of
898-4 representatives and to the senate and house standing committees
898-5 with primary responsibility over water resource management and
898-6 financing. The report shall include findings of the council made
898-7 in the periodic reviews of authorities during the preceding
898-8 two-year period and any other findings and recommendations the
898-9 council considers necessary.
898-10 Sec. 9.010. REVIEW OF AUTHORITIES. (a) On a five-year
898-11 cycle, the council shall review authorities based on the
898-12 administrative policies provided by Section 9.012 and performance
898-13 standards described in Section 9.011. The reviews shall be
898-14 conducted of groups described in Subsection (b), with group 1 being
898-15 reviewed at the council's first quarterly meeting of the five-year
898-16 period and group 2 being reviewed at the council's third quarterly
898-17 meeting of the period. The council shall continue in numerical
898-18 order to review one group at every other quarterly meeting until
898-19 all ten groups have been reviewed and then shall recommence the
898-20 cycle.
898-21 (b) Authorities shall be reviewed under Subsection (a) in
898-22 the following groups:
898-23 (1) in group 1, Northeast Texas Municipal Water
898-24 District, Titus County Fresh Water Supply District No. 1, and
898-25 Franklin County Water District;
898-26 (2) in group 2, Angelina and Neches River Authority,
899-1 Lower Neches Valley Authority, Sabine River Authority, and Upper
899-2 Neches River Municipal Water Authority;
899-3 (3) in group 3, Red River Authority of Texas, Sulphur
899-4 River Municipal Water District, and Sulphur River Basin Authority;
899-5 (4) in group 4, San Jacinto River Authority, Gulf
899-6 Coast Water Authority, and North Harris County Regional Water
899-7 Authority;
899-8 (5) in group 5, North Texas Municipal Water District,
899-9 Tarrant Regional Water District, Trinity River Authority of Texas,
899-10 and Dallas County Utility and Reclamation District;
899-11 (6) in group 6, Brazos River Authority, West Central
899-12 Texas Municipal Water District, and North Central Texas Municipal
899-13 Water Authority;
899-14 (7) in group 7, Guadalupe-Blanco River Authority,
899-15 Lavaca-Navidad River Authority, Lower Colorado River Authority, and
899-16 Upper Guadalupe River Authority;
899-17 (8) in group 8, Nueces River Authority, San Antonio
899-18 River Authority, and Bexar-Medina-Atascosa Counties Water Control
899-19 and Improvement District No. 1;
899-20 (9) in group 9, Colorado River Municipal Water
899-21 District, Central Colorado River Authority, and Upper Colorado
899-22 River Authority; and
899-23 (10) in group 10, Canadian River Municipal Water
899-24 Authority, Mackenzie Municipal Water Authority, and White River
899-25 Municipal Water District.
899-26 Sec. 9.011. PERFORMANCE STANDARDS. (a) The council shall
900-1 review and assess an authority described by Section 9.010 according
900-2 to whether the authority:
900-3 (1) has complied with Section 9.012;
900-4 (2) is performing its mission, key functions, and
900-5 duties and is appropriately exercising its powers;
900-6 (3) has defined goals for its mission and has measures
900-7 for meeting those goals;
900-8 (4) works with local government effectively;
900-9 (5) has current and future funding resources to
900-10 achieve its mission, goals, objectives, and performance targets and
900-11 is appropriately using the funding resources;
900-12 (6) has an internal auditor;
900-13 (7) administers and manages the various funds in the
900-14 authority's budget properly;
900-15 (8) ensures that its functions do not duplicate those
900-16 of other entities and describes how it avoids such duplication; and
900-17 (9) has an adequate self-evaluation process.
900-18 (b) In addition to the review and assessment considerations
900-19 under Subsection (a), the council shall consider whether:
900-20 (1) the governing structure that guides board
900-21 activities is set out in a document that is efficient and workable
900-22 for achieving the mission and key functions of the authority;
900-23 (2) the authority's planning functions, including
900-24 strategic planning, business plans, the policy-making body's
900-25 planning functions, and the authority's role in regional water
900-26 planning groups, are efficient and workable for achieving the
901-1 mission and key functions of the authority;
901-2 (3) the primary role and responsibilities of the
901-3 policy-making body are clearly set out and the members of the body
901-4 are qualified to perform their duties;
901-5 (4) the policy-making body uses subcommittees or
901-6 advisory committees to carry out its duties and, if so, whether:
901-7 (A) the members are qualified to accomplish
901-8 their duties; and
901-9 (B) the committees are used appropriately;
901-10 (5) the policy-making body and any subcommittees or
901-11 advisory committees obtain input from the public regarding issues
901-12 under the authority's jurisdiction and whether this information is
901-13 incorporated into the operations of the authority;
901-14 (6) the authority's permitted water resources are
901-15 operated in a manner that achieves conservation of that resource
901-16 and protects environmental needs in accordance with environmental
901-17 requirements of permits, including instream flow and freshwater
901-18 inflow needs;
901-19 (7) if the authority charges for water or electricity,
901-20 the authority establishes an appropriate rate structure; and
901-21 (8) if the authority operates water or wastewater
901-22 treatment plants, the plants are regional in nature.
901-23 (c) Prior to its five-year review under Section 9.010, an
901-24 authority shall assess its compliance with the standards described
901-25 by this section and shall report the results to the council for use
901-26 during the review.
902-1 Sec. 9.012. ADMINISTRATIVE POLICIES FOR AUTHORITIES.
902-2 (a) Each authority subject to this chapter shall submit to the
902-3 council a copy of its administrative policies and any subsequent
902-4 amendments adopted by its board.
902-5 (b) The council shall file copies of the administrative
902-6 policies and shall make them available for public inspection.
902-7 (c) The council may request additional documents from an
902-8 authority or inspect records at the office of the authority to
902-9 determine compliance with the adopted administrative policies.
902-10 (d) The following provisions shall be incorporated into the
902-11 administrative policies adopted by the authorities subject to these
902-12 rules:
902-13 (1) Code of ethics. The administrative policies shall
902-14 mandate compliance with the following standards:
902-15 (A) Chapter 171, Local Government Code, relating
902-16 to conflicts of interest with a business entity in which a local
902-17 public official has a substantial interest;
902-18 (B) Chapter 573, Government Code, relating to
902-19 nepotism;
902-20 (C) Chapter 572, Government Code, relating to
902-21 standards of conduct, personal financial disclosure, and conflict
902-22 of interest; and
902-23 (D) Section 52, Article III, Texas Constitution,
902-24 relating to the prohibition on granting public money or a thing of
902-25 value to any individual, association, or corporation.
902-26 (2) Travel expenses. The administrative policies
903-1 shall provide for reimbursing authority officials for necessary and
903-2 reasonable travel expenses incurred while conducting business or
903-3 performing official duties or assignments. A board may adopt
903-4 additional policies which further define the criteria for necessary
903-5 and reasonable travel expenses and which provide procedures for the
903-6 reimbursement of expenses.
903-7 (3) Investments. The administrative policies shall
903-8 provide compliance with:
903-9 (A) Chapters 2256 and 2257, Government Code; and
903-10 (B) any other statute applicable to the
903-11 investment of an authority's funds.
903-12 (4) Professional services policy. The administrative
903-13 policies shall provide for compliance with Subchapter A, Chapter
903-14 2254, Government Code, which prohibits the selection of
903-15 professional services based on competitive bids, and shall further
903-16 provide that:
903-17 (A) a list be maintained of at least three
903-18 qualified persons or firms for each area of professional service
903-19 used by the authority; and
903-20 (B) the prequalified persons or firms be sent a
903-21 request for proposal for any contract award for a new project that
903-22 is expected to exceed $25,000.
903-23 (5) Industrial development bonds and pollution control
903-24 bonds. The administrative policies shall reference any industrial
903-25 development corporation associated with an authority and shall
903-26 provide for compliance with the memorandum issued by the state
904-1 auditor on October 7, 1988, relating to the disclosure of
904-2 industrial development and pollution control bonds.
904-3 (6) Management policies. The administrative policies
904-4 shall provide for:
904-5 (A) an independent management audit to be
904-6 conducted every five years and submitted to the executive director
904-7 of the commission and the council or to an internal audit office to
904-8 be established and to report to the authority's board of directors;
904-9 and
904-10 (B) compliance with the provisions of Chapter
904-11 2161, Government Code, relating to contracting with historically
904-12 underutilized businesses and providing equal employment
904-13 opportunities.
904-14 Sec. 9.013. GIFTS AND GRANTS. The council may accept gifts
904-15 and grants from any source to carry out the purposes of this
904-16 chapter. The use of gifts and grants other than legislative
904-17 appropriations is subject only to limitations contained in the gift
904-18 or grant.
904-19 Sec. 9014. FUNDING. (a) The interagency water policy
904-20 account is a special account in the general revenue fund.
904-21 (b) The interagency water policy account consists of
904-22 legislative appropriations, gifts and grants received under Section
904-23 9.013, and other money required by law to be deposited in the
904-24 account.
904-25 (c) Funds in the interagency water policy account may be
904-26 used only as provided by this chapter.
905-1 Sec. 9.015. CONTINUING RIGHT OF SUPERVISION. Nothing in
905-2 this chapter shall affect the continuing right of supervision over
905-3 authorities by the commission as provided by Section 12.081.
905-4 SECTION 3. The following laws are repealed:
905-5 (1) Chapter 97, Acts of the 44th Legislature, Regular
905-6 Session, 1935 (Angelina and Neches River Authority);
905-7 (2) Chapter 13, Special Laws, Acts of the 41st
905-8 Legislature, 2nd Called Session, 1929 (Brazos River Authority);
905-9 (3) Chapter 243, Acts of the 53rd Legislature, Regular
905-10 Session, 1953 (Canadian River Municipal Water Authority);
905-11 (4) Chapter 338, General Laws, Acts of the 44th
905-12 Legislature, Regular Session, 1935 (Central Colorado River
905-13 Authority);
905-14 (5) Chapter 340, Acts of the 51st Legislature, Regular
905-15 Session, 1949 (Colorado River Municipal Water District);
905-16 (6) Chapter 628, Acts of the 68th Legislature, Regular
905-17 Session, 1983 (Dallas County Utility and Reclamation District);
905-18 (7) Chapter 719, Acts of the 59th Legislature, Regular
905-19 Session, 1965 (Franklin County Water District);
905-20 (8) Chapter 75, Acts of the 43rd Legislature, 1st
905-21 Called Session, 1933 (Guadalupe-Blanco River Authority);
905-22 (9) Chapter 712, Acts of the 59th Legislature, Regular
905-23 Session, 1965 (Gulf Coast Water Authority);
905-24 (10) Chapter 186, Acts of the 50th Legislature,
905-25 Regular Session, 1947 (Lavaca-Navidad River Authority);
905-26 (11) Chapter 7, Acts of the 43rd Legislature, 4th
906-1 Called Session, 1934 (Lower Colorado River Authority);
906-2 (12) Chapter 63, Acts of the 43rd Legislature, 1st
906-3 Called Session, 1933 (Lower Neches Valley Authority);
906-4 (13) Chapter 277, Acts of the 59th Legislature,
906-5 Regular Session, 1965 (Mackenzie Municipal Water Authority);
906-6 (14) Chapter 86, Acts of the 55th Legislature, Regular
906-7 Session, 1957 (North Central Texas Municipal Water Authority);
906-8 (15) Chapter 1029, Acts of the 76th Legislature,
906-9 Regular Session, 1999 (North Harris County Regional Water
906-10 Authority);
906-11 (16) Chapter 62, Acts of the 52nd Legislature, Regular
906-12 Session, 1951 (North Texas Municipal Water District);
906-13 (17) Chapter 78, Acts of the 53rd Legislature, Regular
906-14 Session, 1953 (Northeast Texas Municipal Water District);
906-15 (18) Chapter 427, Acts of the 44th Legislature, 1st
906-16 Called Session, 1935 (Nueces River Authority);
906-17 (19) Chapter 279, Acts of the 56th Legislature,
906-18 Regular Session, 1959 (Red River Authority of Texas);
906-19 (20) Chapter 110, Acts of the 51st Legislature,
906-20 Regular Session, 1949 (Sabine River Authority);
906-21 (21) Chapter 9, page 1083, Special Laws, Acts of the
906-22 46th Legislature, Regular Session, 1939 (San Antonio River
906-23 Authority);
906-24 (22) Chapter 426, Acts of the 45th Legislature,
906-25 Regular Session, 1937 (San Jacinto River Authority);
906-26 (23) Chapter 3, Acts of the 69th Legislature, 1st
907-1 Called Session, 1985 (Sulphur River Basin Authority);
907-2 (24) Chapter 212, Acts of the 54th Legislature,
907-3 Regular Session, 1955 (Sulphur River Municipal Water District);
907-4 (25) Chapter 518, Acts of the 54th Legislature,
907-5 Regular Session, 1955 (Trinity River Authority of Texas);
907-6 (26) Chapter 126, Acts of the 44th Legislature,
907-7 Regular Session, 1935 (Upper Colorado River Authority);
907-8 (27) Chapter 5, page 1062, Special Laws, Acts of the
907-9 46th Legislature, Regular Session, 1939 (Upper Guadalupe River
907-10 Authority);
907-11 (28) Chapter 412, Acts of the 53rd Legislature,
907-12 Regular Session, 1953 (Upper Neches River Municipal Water
907-13 Authority);
907-14 (29) Chapter 66, Acts of the 54th Legislature, Regular
907-15 Session, 1955 (West Central Texas Municipal Water District);
907-16 (30) Chapter 221, Acts of the 55th Legislature,
907-17 Regular Session, 1957 (White River Municipal Water District).
907-18 SECTION 4. (a) Not later than January 1, 2002, the Texas
907-19 Water Policy Council, as created by this Act, shall adopt rules
907-20 necessary to implement the provisions of Chapter 9, Water Code, as
907-21 added by this Act.
907-22 (b) The Texas Water Policy Council shall review the first
907-23 group described under Section 9.010, Water Code, as added by this
907-24 Act, at the third quarterly meeting held by the council.
907-25 SECTION 5. (a) The change in law made by Section 1 of this
907-26 Act shall not affect the application of the provisions of Subtitle
908-1 A, Title 9, Government Code, to any district or authority created
908-2 under Section 59, Article XVI, or Section 52, Article III, Texas
908-3 Constitution, and subject to Title 6, Water Code, as added by this
908-4 Act, or to the bonds of any such district or authority if the
908-5 provisions applied to the district or authority or to the bonds
908-6 immediately before the effective date of this Act.
908-7 (b) The change in law made by Section 1 of this Act shall
908-8 not affect the terms, requirements, or procedures applicable to any
908-9 bonds issued before the effective date of this Act of any district
908-10 or authority created under Section 59, Article XVI, or Section 52,
908-11 Article III, Texas Constitution, and subject to Title 6, Water
908-12 Code, as added by this Act. Such bonds are governed by the law in
908-13 effect immediately before the effective date of this Act, and that
908-14 law continues in effect as to those bonds for that purpose.
908-15 SECTION 6. Nothing in this Act affects the term of office of
908-16 a member of a board of directors subject to Title 6, Water Code, as
908-17 added by this Act, who is serving on the board of directors on the
908-18 effective date of this Act.
908-19 SECTION 7. (a) A transition or saving provision of a law
908-20 codified by this Act applies to the codified law to the same extent
908-21 as it applied to the original law.
908-22 (b) The repeal of a transition or saving provision by this
908-23 Act does not affect the application of the provision to the
908-24 codified law.
908-25 (c) In this section, "transition provision" includes any
908-26 temporary provision providing for a special situation in the
909-1 transition period between the existing law and the establishment or
909-2 implementation of the new law.
909-3 SECTION 8. This Act takes effect September 1, 2001.