By: Brown S.B. No. 1335
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 Advisory 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. SURFACE WATER 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) "Surface water authority" means an entity listed
1-16 in Section 9.010(b).
1-17 Sec. 201.002. REVIEW. A surface water authority is subject
1-18 to review by the Texas Water Advisory Council as provided by
1-19 Chapter 9.
1-20 (Chapters 202 to 220 reserved for expansion
1-21 SUBTITLE B. SURFACE WATER AUTHORITIES NOT CREATED BY STATUTE
1-22 CHAPTER 221. BEXAR-MEDINA-ATASCOSA COUNTIES WATER
1-23 IMPROVEMENT DISTRICT NO. 1
1-24 Sec. 221.001. DISTRICT CREATED UNDER LAW. (a) The
1-25 "Bexar-Medina-Atascosa Counties Water Control and Improvement
2-1 District No. 1" is a water control and improvement district. The
2-2 district is a governmental agency and a body politic and corporate.
2-3 (b) The district was created under the laws of this state
2-4 and is essential to accomplish the purposes of Section 59, Article
2-5 XVI, Texas Constitution.
2-6 Sec. 221.002. DEFINITIONS. In this chapter:
2-7 (1) "Board" means the board of directors of the
2-8 district.
2-9 (2) "Director" means a member of the board.
2-10 (3) "District" means the Bexar-Medina-Atascosa
2-11 Counties Water Control and Improvement District No. 1.
2-12 Sec. 221.003. AUTHORITY TO EXCLUDE PROPERTY. (a) The
2-13 district may exclude property from the district if the board finds
2-14 after notice and hearing that exclusion of the property is in the
2-15 best interest of the district and that:
2-16 (1) the property is not irrigable with water purchased
2-17 from the district because:
2-18 (A) the district cannot deliver water by gravity
2-19 flow to a high point on the property to irrigate the property;
2-20 (B) the property is subdivided into tracts of
2-21 less than 10 acres; or
2-22 (C) the property is subdivided into town lots,
2-23 town lots and blocks, or similar small parcels of any size that
2-24 will not be used for agricultural purposes or are suitable for a
2-25 residential, a commercial, or another nonagricultural purpose; or
2-26 (2) the property has not been irrigated with water
3-1 purchased from the district for a period of not less than three
3-2 years before the date the notice for the hearing was mailed.
3-3 (b) The board may by resolution exclude land from the
3-4 district if the land was not included in the district at the time
3-5 the district was created and:
3-6 (1) the land has been subdivided into town lots and
3-7 blocks, with streets or other thoroughfares dedicated to the use of
3-8 the public; and
3-9 (2) a map and the dedication have been filed for
3-10 record with the county clerk of the county in which the land is
3-11 located.
3-12 (c) When a resolution under Subsection (b) is passed, the
3-13 secretary of the board shall enter it in the minutes of the board,
3-14 and from that time, the territory is excluded from the district and
3-15 is no longer entitled to be served with water by the district.
3-16 Sec. 221.004. HEARING ON PROPOSAL TO EXCLUDE PROPERTY;
3-17 NOTICE. (a) If the board has information that property in the
3-18 district is excludable under Section 221.003, the board may call
3-19 and hold a hearing to determine whether to exclude the property.
3-20 (b) The board by certified mail, return receipt requested,
3-21 not earlier than the 21st day or later than the 16th day before the
3-22 date of the hearing shall issue written notice of the hearing to
3-23 each owner of property in the area proposed to be excluded as shown
3-24 on the current tax rolls of the district. The notice must:
3-25 (1) describe the property proposed to be excluded;
3-26 (2) describe the basis for the proposed exclusion;
4-1 (3) state the time, date, and location of the hearing;
4-2 and
4-3 (4) advise that an interested property owner has the
4-4 right to appear at the hearing and to offer evidence to contest the
4-5 exclusion.
4-6 (c) The board shall publish notice of the hearing at least
4-7 once a week for two consecutive weeks in a newspaper of general
4-8 circulation in each county in which the property proposed to be
4-9 excluded is located. The first notice must appear not earlier than
4-10 the 40th day before or later than the 16th day before the date of
4-11 the hearing. The notice must:
4-12 (1) describe the property proposed to be excluded;
4-13 (2) state the time, date, and location of the hearing;
4-14 and
4-15 (3) advise that an interested property owner has the
4-16 right to appear at the hearing and to offer evidence to contest the
4-17 exclusion.
4-18 Sec. 221.005. CONSENT FROM HOLDERS OF INDEBTEDNESS. Before
4-19 a hearing on the exclusion of property, if the district has
4-20 outstanding bonded indebtedness or indebtedness under a loan from a
4-21 governmental agency, a written consent from an authorized
4-22 representative of the holder or holders of the indebtedness
4-23 consenting to the exclusion shall be obtained by and filed with the
4-24 district.
4-25 Sec. 221.006. SUIT TO REVIEW EXCLUSION; APPEAL. An
4-26 interested person may bring suit to review an order of the board
5-1 excluding property under this chapter in the manner provided by
5-2 Section 49.308 and may appeal as provided by that section.
5-3 Sec. 221.007. NOTICE TO COMMISSION. The board shall furnish
5-4 to the commission a copy of the order excluding property not later
5-5 than the 30th day after the date the board issues the order.
5-6 Sec. 221.008. RESULTS OF EXCLUSION ORDER. (a) Property
5-7 that has been excluded from the district under this chapter is not
5-8 entitled to purchase water from or to receive any other service
5-9 from the district.
5-10 (b) Taxes, assessments, or other charges on the excluded
5-11 property that are owed to the district at the time the order of
5-12 exclusion takes effect remain the obligation of the owner of the
5-13 excluded property and continue to be secured by statutory liens on
5-14 the property, if any.
5-15 (c) After property is excluded, the owner of the property
5-16 has no further liability to the district for future taxes,
5-17 assessments, or other charges of the district based on that
5-18 property.
5-19 Sec. 221.009. RECORDATION. After property has been excluded
5-20 from the district, the district shall record, in the real property
5-21 records of the county in which the excluded property is located, a
5-22 copy of the order excluding the property from the district. The
5-23 copy must be certified and acknowledged by the secretary of the
5-24 board.
5-25 Sec. 221.010. DISTRICT FACILITIES AND EASEMENTS ON EXCLUDED
5-26 PROPERTY. An order to exclude property does not affect or
6-1 interfere with any rights that the district has to maintain and
6-2 continue operation of any easements, canals, ditches, pipelines,
6-3 pumps, or other facilities of the district that are located on
6-4 excluded property for the purpose of servicing property remaining
6-5 in the district.
6-6 Sec. 221.011. SUBSTITUTION FOR EXCLUDED PROPERTY. (a) At
6-7 the sole discretion of the board, after an exclusion order is
6-8 issued by the board, property may be added to the district if the
6-9 property is:
6-10 (1) practically irrigable with water purchased from
6-11 the district; and
6-12 (2) in the aggregate, less than or equal to the
6-13 acreage of the property being excluded.
6-14 (b) Property may be added to the district under this chapter
6-15 only if the owner of the property files a petition requesting
6-16 inclusion. If the owner already has acreage within the district,
6-17 all taxes and other assessments owed to the district by the owner
6-18 must be current before the petition may be considered by the board.
6-19 Sec. 221.012. BOARD OF DIRECTORS. (a) The district shall
6-20 be governed by a board of seven directors. A board election shall
6-21 be held on the first Saturday in May of even-numbered years. At
6-22 each election the appropriate number of directors shall be elected
6-23 so that the board consists of one director elected from each of the
6-24 district's five single-member precincts and two directors elected
6-25 from the district at large.
6-26 (b) A committee, subcommittee, or other similar entity
7-1 created by the board is subject to Chapter 551, Government Code, if
7-2 a majority of the members of the committee, subcommittee, or other
7-3 similar entity are directors.
7-4 Sec. 221.013. TERMS OF DIRECTORS. The directors serve
7-5 staggered four-year terms. Three directors' terms expire May 1,
7-6 2002, and every fourth year after that date, and four directors'
7-7 terms expire May 1, 2004, and every fourth year after that date.
7-8 Sec. 221.014. QUALIFICATIONS OF DIRECTORS. A person seeking
7-9 to represent a single-member precinct of the district must own land
7-10 in the precinct to be represented. A person seeking to represent
7-11 the district at large must own land in the district.
7-12 Sec. 221.015. APPLICATION FOR PLACEMENT ON BALLOT. A person
7-13 seeking to be placed on the ballot for a board election must:
7-14 (1) indicate that the person wishes to run for a
7-15 position representing the district at large; or
7-16 (2) identify the single-member precinct from which the
7-17 person wishes to run.
7-18 Sec. 221.016. DIRECTOR AS GENERAL MANAGER PROHIBITED. The
7-19 provisions of Section 49.056(c), Water Code, do not apply to this
7-20 district.
7-21 CHAPTER 222. TARRANT REGIONAL WATER DISTRICT
7-22 Sec. 222.001. DISTRICT CREATED UNDER LAW. (a) The "Tarrant
7-23 Regional Water District" is a water control and improvement
7-24 district. The district is a governmental agency and a body politic
7-25 and corporate.
7-26 (b) The district was created under the laws of this state
8-1 and is essential to accomplish the purposes of Section 59, Article
8-2 XVI, Texas Constitution.
8-3 (c) Unless specifically provided otherwise, the provisions
8-4 of this chapter are intended to supplement and expand rather than
8-5 to limit the powers and authority of the district arising under
8-6 other law, including Chapters 49, 50, and 51.
8-7 Sec. 222.002. DEFINITIONS. In this chapter:
8-8 (1) "Board" means the board of directors of the
8-9 district.
8-10 (2) "Director" means a member of the board.
8-11 (3) "District" means the Tarrant Regional Water
8-12 District.
8-13 Sec. 222.003. ANNEXATION OF TERRITORY. (a) Any territory
8-14 situated within Tarrant or Johnson County, either contiguous to the
8-15 district or not, may be annexed to the district as provided by this
8-16 section.
8-17 (b) A petition for annexation must:
8-18 (1) be signed by 50 or a majority, whichever number is
8-19 less, of the qualified voters of the territory to be annexed;
8-20 (2) be filed with the board; and
8-21 (3) describe the territory to be annexed by metes and
8-22 bounds or otherwise unless the territory is the same as that
8-23 contained in a city or town, in which event it will be sufficient
8-24 to state that the territory to be annexed is that contained within
8-25 the city or town or that portion of the city or town that is not
8-26 then contained in the district.
9-1 (c) If the board finds that the petition complies with and
9-2 is signed by the number of qualified voters required under
9-3 Subsection (b), that the annexation would be in the interest of the
9-4 territory to be annexed and the district, and that the district
9-5 will be able to supply water to the territory to be annexed or
9-6 cause water to be supplied to the territory, the board shall adopt
9-7 a resolution stating the conditions, if any, under which the
9-8 territory may be annexed to the district and requesting the
9-9 commissioners court of Tarrant or Johnson County to annex the
9-10 territory to the district. The resolution shall be conclusive of
9-11 the legal sufficiency of the petition and the qualifications of the
9-12 signers. A certified copy of the resolution and of the petition
9-13 shall be filed with the commissioners court.
9-14 (d) The commissioners court shall adopt a resolution
9-15 declaring its intention to call an election in the territory to be
9-16 annexed for the purpose of submitting the proposition of whether
9-17 the territory shall be annexed to the district. The commissioners
9-18 court shall set a time and place for a hearing to be held by the
9-19 commissioners court on the question of whether the territory to be
9-20 annexed will benefit from the improvements, works, and facilities
9-21 then owned or operated or contemplated to be owned or operated by
9-22 the district or by the other functions of the district. Because
9-23 railroad right-of-way that is not situated within the defined
9-24 limits of an incorporated city or town will not benefit from the
9-25 improvements, works, and facilities that the district is authorized
9-26 to construct, railroad right-of-way may not be annexed to the
10-1 district unless the right-of-way is contained within the limit of
10-2 an incorporated city or town that has been annexed to the district.
10-3 (e) Notice of the adoption of the resolution stating the
10-4 time and place of the hearing, addressed to the citizens and owners
10-5 of property in the territory to be annexed, shall be published one
10-6 time in a newspaper designated by the commissioners court at least
10-7 10 days before the date of the hearing. The notice must describe
10-8 the territory to be annexed in the same manner in which it is
10-9 required or permitted by this chapter to be described in the
10-10 petition.
10-11 (f) All interested persons may appear at the hearing and
10-12 offer evidence for or against the intended annexation. The hearing
10-13 may proceed in the order and under the rules that may be prescribed
10-14 by the commissioners court and may be recessed from time to time.
10-15 If, at the conclusion of the hearing, the commissioners court finds
10-16 that all the lands in the territory to be annexed will benefit from
10-17 the present or contemplated improvements, works, or facilities of
10-18 the district, the commissioners court shall adopt a resolution
10-19 calling an election in the territory to be annexed stating the date
10-20 and place or places for holding the election and appointing a
10-21 presiding judge for each voting place, who shall appoint the
10-22 necessary assistant judges and clerks to assist in holding the
10-23 election.
10-24 (g) Notice of the election, stating the date and places for
10-25 holding the election, the proposition to be voted on, and the
10-26 conditions under which the territory may be annexed, or making
11-1 reference to the resolution of the board for that purpose, shall be
11-2 published one time in a newspaper designated by the commissioners
11-3 court at least 10 days before the date set for the election.
11-4 (h) Only qualified electors who reside in the territory
11-5 sought to be annexed may vote in the election. Returns of the
11-6 election shall be made to the commissioners court.
11-7 (i) The commissioners court shall canvass the returns of the
11-8 election and adopt an order declaring the results. If the
11-9 commissioners court finds from the returns that a majority of the
11-10 votes cast are in favor of annexation, the commissioners court
11-11 shall annex the territory to the district, and the annexation shall
11-12 be incontestable except in the manner and within the time for
11-13 contesting elections under the Election Code. A certified copy of
11-14 the order shall be recorded in the deed records of the county in
11-15 which the territory is situated.
11-16 (j) In calling the election on the proposition for
11-17 annexation of territory, the commissioners court may also submit a
11-18 proposition for the assumption of the territory's part of the
11-19 tax-supported bonds of the district then outstanding and those
11-20 previously voted but not yet sold and for the levy of an ad valorem
11-21 tax on taxable property in the territory to be annexed along with
11-22 the tax in the rest of the district for the payment of the bonds.
11-23 (k) After territory is added to the district, the board may
11-24 call an election over the entire district for the purpose of
11-25 determining whether the entire district as enlarged shall assume
11-26 the tax-supported bonds then outstanding and those voted but not
12-1 yet sold and whether an ad valorem tax shall be levied on all
12-2 taxable property within the district as enlarged for the payment of
12-3 the bonds, unless the proposition had been voted along with the
12-4 annexation election and becomes lawfully binding on the territory
12-5 annexed. The election shall be called and held in the same manner
12-6 as elections for the issuance of bonds as provided by this chapter.
12-7 (l) If the territory of more than one city is proposed to be
12-8 annexed to the district, separate elections shall be held in each
12-9 city, and only the territory of the city or cities in which a
12-10 majority vote favors annexation shall be annexed. If two or more
12-11 areas which are not contiguous to each other are proposed to be
12-12 annexed to the district, separate elections shall be held in each
12-13 area, and only the area or areas in which a majority vote favors
12-14 annexation shall be annexed.
12-15 (m) If the election for the assumption of indebtedness
12-16 fails, the commissioners court shall, on request of the board,
12-17 enter an order detaching the territory from the district.
12-18 (n) All expenses of hearings and elections held under this
12-19 chapter shall be paid by the district.
12-20 (o) All actions and proceedings taken before September 1,
12-21 2001, in annexing territory to the district whether or not the
12-22 territory is contiguous to the district and whether or not the
12-23 territory is contained within an incorporated city wholly or
12-24 partially located within the boundaries of the district, are
12-25 validated and that territory is declared to constitute a part of
12-26 the district. All acts of the board in redefining the boundaries
13-1 of the district and the redefined boundaries are validated.
13-2 (p) The validation provisions of Subsection (o) do not apply
13-3 to any annexation or redefinition of boundaries that on
13-4 September 1, 2001:
13-5 (1) is involved in litigation if the litigation
13-6 ultimately results in the annexation or redefinition being held
13-7 invalid by a final judgment of a court of competent jurisdiction;
13-8 or
13-9 (2) has been held invalid by a final judgment of a
13-10 court of competent jurisdiction.
13-11 Sec. 222.004. BONDS. (a) For the purpose of providing a
13-12 source of water supply for cities and other users for municipal,
13-13 domestic, industrial, and mining purposes and for the purpose of
13-14 carrying out any other power or authority of the district, the
13-15 district may issue negotiable bonds payable from revenues or taxes
13-16 or both revenues and taxes of the district as pledged by resolution
13-17 of the board. Pending the issuance of definitive bonds, the board
13-18 may authorize the delivery of negotiable interim bonds or notes
13-19 eligible for exchange or substitution by use of the definitive
13-20 bonds.
13-21 (b) Bonds of the district must be authorized by resolution
13-22 of the board, issued in the name of the district, signed by the
13-23 president or vice president of the board, and attested by the
13-24 secretary of the board and must bear the seal of the district. The
13-25 facsimile signatures of the president or of the secretary or of
13-26 both may be printed or lithographed on the bonds if authorized by
14-1 the board. The seal of the district may be impressed on the bonds
14-2 or may be printed or lithographed on the bonds.
14-3 (c) Bonds must mature serially or otherwise in not to exceed
14-4 40 years and may be sold at a price and under terms determined by
14-5 the board to be the most advantageous reasonably obtainable,
14-6 provided that the interest cost to the district, including the
14-7 discount, if any, calculated by use of standard bond interest
14-8 tables currently in use by insurance companies and investment
14-9 houses does not exceed six percent per year, which may be evidenced
14-10 by coupons. Within the discretion of the board, the bonds may be
14-11 made callable prior to maturity at such times and prices as may be
14-12 prescribed in the resolution authorizing the bonds and may be made
14-13 registrable as to principal or as to both principal and interest.
14-14 (d) Bonds may be issued in more than one series and from
14-15 time to time as required for carrying out the powers of the
14-16 district.
14-17 (e) Bonds may be secured by a pledge of all or part of the
14-18 net revenues of the district, of the net revenues of one or more
14-19 contracts made before or after the bonds are issued, or of other
14-20 revenues or income specified by resolution of the board in the
14-21 trust indenture. A pledge may reserve the right, under conditions
14-22 specified in the pledge, to issue additional bonds that will be on
14-23 a parity with or subordinate to the bonds being issued.
14-24 (f) The district may issue bonds payable from ad valorem
14-25 taxes to be levied on all taxable property in the district or may
14-26 issue bonds secured by and payable from both those taxes and the
15-1 revenues of the district. If bonds are issued payable wholly or
15-2 partially from ad valorem taxes, the board shall levy a tax
15-3 sufficient to pay the bonds and the interest on the bonds as the
15-4 bonds and interest become due. The rate of the tax for any year
15-5 may be set after giving consideration to the money received from
15-6 the pledged revenues that may be available for payment of the
15-7 principal and interest to the extent and in the manner permitted by
15-8 the resolution authorizing the issuance of the bonds.
15-9 (g) If bonds payable wholly from revenues are issued, the
15-10 board shall set, and may from time to time revise, rates of
15-11 compensation for water sold and services rendered by the district
15-12 that will be sufficient to pay the expense of operating and
15-13 maintaining the facilities of the district and to pay the bonds as
15-14 they mature and the interest on the bonds as it accrues and to
15-15 maintain the reserve and other funds as provided in the resolution
15-16 authorizing the bonds. If bonds payable partially from revenues
15-17 are issued, the board shall set rates of compensation for water
15-18 sold and services rendered by the district that will be sufficient
15-19 to assure compliance with the resolution authorizing the bonds.
15-20 (h) From the proceeds of the sale of bonds, the district may
15-21 set aside an amount for the payment of interest expected to accrue
15-22 during construction and for a reserve interest and sinking fund,
15-23 and this provision may be made in the resolution authorizing the
15-24 bonds. Proceeds from the sale of the bonds may also be used for
15-25 the payment of all expenses necessarily incurred in accomplishing
15-26 the purposes for which the district is created, including the
16-1 expenses of issuing and selling the bonds. The proceeds from the
16-2 sale of the bonds may be temporarily invested in direct obligations
16-3 of the United States government.
16-4 (i) In the event of a default or a threatened default in the
16-5 payment of principal of or interest on bonds payable wholly or
16-6 partially from revenues, any court of competent jurisdiction may,
16-7 on petition of the holders of outstanding bonds, appoint a receiver
16-8 with authority to collect and receive all income of the district
16-9 except taxes, employ and discharge agents and employees of the
16-10 district, take charge of the district's funds on hand except funds
16-11 received from taxes, unless commingled, and manage the proprietary
16-12 affairs of the district without consent or hindrance by the board.
16-13 The receiver may also be authorized to sell or make contracts for
16-14 the sale of water or renew such contracts with the approval of the
16-15 court appointing the receiver. The court may vest the receiver
16-16 with such other powers and duties as the court finds necessary for
16-17 the protection of the holders of the bonds. The resolution
16-18 authorizing the issuance of the bonds or the trust indenture
16-19 securing them may limit or qualify the rights of less than all of
16-20 the outstanding bonds payable from the same source to institute or
16-21 prosecute any litigation affecting the district's property or
16-22 income.
16-23 Sec. 222.005. REFUNDING BONDS. (a) The district may issue
16-24 refunding bonds for the purpose of refunding any outstanding bonds
16-25 and interest on the bonds. Refunding bonds may be issued to refund
16-26 more than one series of outstanding bonds and combine the pledges
17-1 for the outstanding bonds for the security of the refunding bonds
17-2 and may be secured by other or additional revenues and mortgage
17-3 liens.
17-4 (b) The provisions of this chapter with respect to the
17-5 issuance by the district of other bonds, their security, their
17-6 approval by the attorney general, and the remedies of the holders
17-7 shall be applicable to refunding bonds. Refunding bonds shall be
17-8 registered by the comptroller on surrender and cancellation of the
17-9 bonds to be refunded, but in lieu of that procedure, the resolution
17-10 authorizing the issuance of the refunding bonds may provide that
17-11 the refunding bonds shall be sold and the proceeds of the sale
17-12 deposited in the bank where the original bonds are payable, in
17-13 which case the refunding bonds may be issued in an amount
17-14 sufficient to pay the principal of and the interest on the original
17-15 bonds to their option date or maturity date, and the comptroller
17-16 shall register the refunding bonds without concurrent surrender and
17-17 cancellation of the original bonds.
17-18 Sec. 222.006. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE
17-19 LIEN. (a) Bonds, including refunding bonds, authorized by this
17-20 chapter that are not payable wholly from ad valorem taxes may be
17-21 additionally secured by a trust indenture under which the trustee
17-22 may be a bank with trust powers located either within or outside
17-23 the state. The bonds, within the discretion of the board, may be
17-24 additionally secured by a deed of trust or mortgage lien on
17-25 physical properties of the district and all franchises, easements,
17-26 water rights and appropriation permits, leases and contracts, and
18-1 all rights appurtenant to the properties, vesting in the trustee
18-2 power to sell the properties for the payment of the indebtedness,
18-3 power to operate the properties, and all other powers and authority
18-4 for the further security of the bonds.
18-5 (b) The trust indenture, regardless of the existence of a
18-6 deed of trust or mortgage lien on the properties, may contain any
18-7 provisions prescribed by the board for the security of the bonds
18-8 and the preservation of the trust estate, may make provision for
18-9 amendment or modification of the trust indenture and for the
18-10 issuance of bonds to replace lost or mutilated bonds, may condition
18-11 the right to expend district money or sell district property on
18-12 approval by a registered professional engineer selected as provided
18-13 in the trust indenture, and may make provision for the investment
18-14 of funds of the district.
18-15 (c) A purchaser under a sale under a deed of trust lien,
18-16 where one is given, shall be the absolute owner of the properties,
18-17 facilities, and rights purchased and shall have the right to
18-18 maintain and operate the properties, facilities, and rights.
18-19 Sec. 222.007. BOND ELECTIONS. (a) Bonds payable wholly or
18-20 partially from ad valorem taxes, except refunding bonds, may not be
18-21 issued unless authorized by a majority vote at an election. Only
18-22 the qualified voters who reside in the district shall be permitted
18-23 to vote at the election. Bonds not payable wholly or partially
18-24 from ad valorem taxes may be issued without an election.
18-25 (b) An election described by Subsection (a) may be called by
18-26 the board without a petition. The resolution calling the election
19-1 shall specify the time and location of the election, the purpose
19-2 for which the bonds are to be issued, the maximum amount of the
19-3 bonds, the maximum maturity of the bonds, the form of the ballot,
19-4 and the presiding judge for each voting place. The presiding judge
19-5 serving at each voting place shall appoint one assistant judge and
19-6 at least two clerks to assist in holding the election. Notice of
19-7 the election shall be given by publishing a substantial copy of the
19-8 resolution calling the election in a newspaper with general
19-9 circulation in Tarrant County once each week for two consecutive
19-10 weeks. The first publication must be at least 21 days before the
19-11 election.
19-12 (c) The returns of the election shall be made to and
19-13 canvassed by the board.
19-14 (d) The general laws relating to elections are applicable to
19-15 elections held under this section except as otherwise provided by
19-16 this chapter.
19-17 Sec. 222.008. APPROVAL AND REGISTRATION OF BONDS. After
19-18 bonds, including refunding bonds, are authorized by the district,
19-19 the bonds and the record relating to their issuance shall be
19-20 submitted to the attorney general for examination as to their
19-21 validity. If the bonds recite that they are secured by a pledge of
19-22 the proceeds of a contract previously made between the district and
19-23 a city or other governmental agency, authority, or district, a copy
19-24 of the contract and the proceedings of the city or other
19-25 governmental agency, authority, or district authorizing the
19-26 contract shall also be submitted to the attorney general. If the
20-1 bonds have been authorized and if any such contract has been made
20-2 in accordance with the constitution and laws of the state, the
20-3 attorney general shall approve the bonds and the contract, and the
20-4 bonds then shall be registered by the comptroller. After approval
20-5 and registration, the bonds and the contract, if any, are valid and
20-6 binding and are incontestable for any cause.
20-7 Sec. 222.009. CHAPTER AS FULL AUTHORITY. The provisions of
20-8 this chapter with reference to the issuance of bonds are complete,
20-9 and no proceedings or approvals shall be required except those
20-10 required by this chapter.
20-11 Sec. 222.010. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
20-12 DEPOSITS. Bonds of the district are legal and authorized
20-13 investments for banks, savings banks, trust companies, building and
20-14 loan associations, savings and loan associations, insurance
20-15 companies, fiduciaries, trustees, and guardians and for the sinking
20-16 funds of cities, towns, villages, counties, school districts, or
20-17 other political corporations or subdivisions of the state. The
20-18 bonds are eligible to secure the deposits of all public funds of
20-19 the state and all public funds of cities, towns, villages,
20-20 counties, school districts, or other political corporations or
20-21 subdivisions of the state, and the bonds are lawful and sufficient
20-22 security for such deposits to the extent of their value when
20-23 accompanied by all unmatured coupons.
20-24 Sec. 222.011. CONTRACTS WITH CITIES AND OTHERS. The
20-25 district may enter into contracts with cities and others for the
20-26 supply of water. The district may also contract with a city for
21-1 the rental or leasing of or for the operation of the water
21-2 production, water supply, or water filtration or purification and
21-3 water supply facilities of the city for such consideration as the
21-4 district and the city may agree. The contract may be on such terms
21-5 and for such time as the parties may agree and may provide that it
21-6 shall continue in effect until bonds specified in the contract and
21-7 refunding bonds issued in lieu of such bonds are paid.
21-8 Sec. 222.012. EXEMPTION FROM TAXATION. The accomplishment
21-9 of the purposes stated in this chapter is for the benefit of the
21-10 people of this state and for the improvement of their properties
21-11 and industries, and the district, in carrying out the purposes of
21-12 this chapter, will be performing an essential public function under
21-13 Section 59, Article XVI, Texas Constitution. The district shall
21-14 not be required to pay any tax or assessment on its properties or
21-15 any part of its properties, and the bonds issued under this chapter
21-16 and the transfer of and income from the bonds, including profits
21-17 made on the sale of the bonds, shall at all times be free from
21-18 taxation within the state.
21-19 Sec. 222.013. DEPOSITORY. The board may select more than
21-20 one depository.
21-21 Sec. 222.014. PURCHASE OF PROPERTY. The district may
21-22 purchase the properties of any other water district located wholly
21-23 or partially in the district for such consideration as may be
21-24 agreed on by the board and the boards of directors of the other
21-25 districts, which consideration may be or include the assumption by
21-26 the district of the outstanding bonds of the district from which
22-1 the purchase is made. If the district proposes to pay such assumed
22-2 bonds by the levy of a tax, the bonds shall be assumed by an
22-3 election called and held over the entire district in the manner
22-4 provided by this chapter for the authorization of bonds.
22-5 Sec. 222.015. SEWAGE TRANSPORTATION, TREATMENT, AND
22-6 DISPOSAL. (a) The district may purchase, construct, improve, and
22-7 repair works and facilities necessary for the transportation,
22-8 treatment, and disposal of sewage and industrial wastes and
22-9 effluent and may issue negotiable bonds for those purposes. The
22-10 district may make contracts with cities and others under which the
22-11 district will transport, treat, and dispose of sewage from the
22-12 cities. The district may also make contracts with a city for the
22-13 use of certain sewage transportation, treatment, and disposal
22-14 facilities owned by the city or by the district.
22-15 (b) Bonds issued under this section may be payable from the
22-16 revenues under any contract or contracts or other income and, if
22-17 authorized by an election, bonds may be made payable from taxes or
22-18 from taxes and revenues. The provisions of this chapter relating
22-19 to bonds issued by the district shall be applicable to bonds issued
22-20 under this section.
22-21 (c) The district may have its bonds and sewer contracts
22-22 approved by the attorney general with the effect prescribed in this
22-23 chapter or, in the discretion of the board, may have its bonds and
22-24 sewer contracts validated by a suit in the district court as
22-25 provided in Chapter 1205, Government Code, or may have the bonds
22-26 and contracts validated by suit and approved. The interest rate
23-1 and sale price of the bonds need not be set until after the
23-2 termination of the validation proceedings or suit.
23-3 (d) If the proposed bonds recite that they are secured by a
23-4 pledge of the proceeds of a contract or contracts previously made
23-5 between the district and one or more cities, the petition shall so
23-6 allege and the notice of the suit shall mention the allegation and
23-7 the city fund or revenues from which the contract or contracts are
23-8 payable. The suit shall be in the nature of a proceeding in rem.
23-9 The judgment shall be res judicata as to the validity of the
23-10 contract or contracts and the pledge of the revenues of the
23-11 contracts.
23-12 Sec. 222.016. EMINENT DOMAIN. If the district, in the
23-13 exercise of any of the powers granted under this chapter, whether
23-14 it be the power of eminent domain, the power of relocation, or any
23-15 other power, makes necessary the relocation, raising, rerouting,
23-16 changing the grade, or altering the construction of any highway,
23-17 railroad, electric transmission line, telephone or telegraph
23-18 properties and facilities, or pipeline, all such necessary
23-19 relocation, raising, rerouting, changing the grade, or alteration
23-20 of construction shall be accomplished at the sole expense of the
23-21 district. In this section, "sole expense" means the actual cost of
23-22 such relocation, raising, lowering, rerouting, change in grade, or
23-23 alteration of construction in providing comparable replacement
23-24 without enhancement of the facilities, after deducting the net
23-25 salvage value derived from the old facility. The power of eminent
23-26 domain exercised by the district under this chapter shall be
24-1 limited to Tarrant County.
24-2 CHAPTER 223. TITUS COUNTY FRESH WATER SUPPLY DISTRICT NO. 1
24-3 Sec. 223.001. DISTRICT CREATED UNDER LAW. (a) The "Titus
24-4 County Fresh Water Supply District No. 1" is a governmental agency
24-5 and a body politic and corporate.
24-6 (b) The district was created under the laws of this state
24-7 and is essential to accomplish the purposes of Section 59, Article
24-8 XVI, Texas Constitution.
24-9 Sec. 223.002. DEFINITIONS. In this chapter:
24-10 (1) "Board" means the board of supervisors of the
24-11 district.
24-12 (2) "District" means the Titus County Fresh Water
24-13 Supply District No. 1.
24-14 (3) "Supervisor" means a member of the board.
24-15 Sec. 223.003. TERRITORY. The district includes all of the
24-16 territory contained within the boundaries of Titus County.
24-17 Sec. 223.004. PERMITS AND CERTIFICATION FROM COMMISSION.
24-18 (a) The district shall obtain from the commission all permits
24-19 necessary under general law for the acquisition of water rights.
24-20 (b) Before the district issues any bonds to construct a
24-21 reservoir and related facilities for conserving, transporting, and
24-22 distributing freshwater, it shall secure prior certification of
24-23 feasibility from the commission as provided by Section 49.181.
24-24 Sec. 223.005. BOARD OF SUPERVISORS. (a) The district is
24-25 governed by a board of five elected supervisors as provided by the
24-26 laws relating to municipal utility districts.
25-1 (b) Supervisors shall serve for staggered terms of four
25-2 years. Supervisors hold office until their successors are chosen
25-3 and have qualified. An election shall be held on the first
25-4 Saturday of May of each even-numbered year to elect two or three
25-5 supervisors to replace those whose terms are expiring.
25-6 (c) An election for supervisors shall be called by
25-7 resolution of the board, and the results of the election shall be
25-8 canvassed and declared by the board. The board shall designate the
25-9 place or places of holding the election and shall name the election
25-10 officers. The board is responsible for election supplies and
25-11 expenses.
25-12 (d) A vacancy on the board shall be filled for the unexpired
25-13 term by appointment made by the remainder of the board. If the
25-14 number of supervisors is reduced to less than three for any reason,
25-15 the remaining supervisors shall immediately call a special election
25-16 to fill the vacant positions. If the board fails to call an
25-17 election as required by this subsection, a district court may, on
25-18 the application of a voter or taxpayer of the district, issue an
25-19 order requiring that an election be called by the remaining
25-20 supervisors.
25-21 (e) Notice of an election shall be published in a newspaper
25-22 of general circulation in the county one time at least 30 days
25-23 before the date of the election.
25-24 (f) Any person desiring that the person's name be printed on
25-25 the ballot as a candidate for supervisor shall file a petition,
25-26 signed by not less than 25 qualified voters, asking that the
26-1 person's name be printed on the ballot. The petition shall be
26-2 filed with the secretary of the board at least 30 days before the
26-3 date of the election.
26-4 Sec. 223.006. DISTRICT TAXES. (a) In addition to the
26-5 powers set forth in the laws relating to municipal utility
26-6 districts, the district by resolution of the board may authorize
26-7 the assessor and collector of taxes for Titus County to assess and
26-8 collect taxes for the district.
26-9 (b) Not later than July 20 of each year, the board shall
26-10 levy the tax on all taxable property within the district that is
26-11 subject to taxation and shall immediately certify the tax rate to
26-12 the assessor and collector of taxes for Titus County. The tax so
26-13 levied shall be collected on all property subject to taxation by
26-14 the assessor and collector of taxes for Titus County on the county
26-15 tax values and in the same manner and under the same conditions as
26-16 county taxes.
26-17 (c) The assessor and collector of taxes shall charge and
26-18 deduct from payments to the district the fees for assessing and
26-19 collecting the tax at a rate determined by the board; provided,
26-20 however, that the fees may not exceed two percent of the amounts
26-21 collected and may not exceed $5,000 for any one year. The fees
26-22 shall be deposited in the county's general fund and shall be
26-23 reported as fees of office of the assessor and collector of taxes.
26-24 (d) Interest and penalties on taxes paid to the district
26-25 shall be the same as for county taxes.
26-26 (e) The residue of tax collections, after deduction of
27-1 discounts and fees of assessing and collecting the taxes, shall be
27-2 deposited in the district depository.
27-3 Sec. 223.007. GENERAL POWERS AND DUTIES. (a) In addition
27-4 to the powers set forth in the laws relating to municipal utility
27-5 districts and other laws relating specifically to the district, the
27-6 district may enter into agreements with the state or any of its
27-7 agencies, including the Texas Water Development Board, in order
27-8 that the district may effect its purposes of conserving,
27-9 transporting, and distributing freshwater as contemplated by
27-10 Section 59, Article XVI, Texas Constitution, and laws that have
27-11 been enacted pursuant to that section.
27-12 (b) An agreement under Subsection (a) may provide that the
27-13 district may develop, construct, own, and operate facilities
27-14 jointly with the state or its agencies, may develop, construct, and
27-15 operate the facilities on behalf of the state or its agencies, or
27-16 may permit the state or its agencies to develop, construct, or
27-17 operate facilities on behalf of the district.
27-18 Sec. 223.008. ADDITIONAL SPECIFIC POWERS. (a) In addition
27-19 to the powers set forth in the laws relating to freshwater supply
27-20 districts, the district may make contracts with cities, private
27-21 corporations, and others under which the district will sell water
27-22 to the parties. The district may pledge the proceeds from one or
27-23 more contracts for the payment of bonds issued by the district.
27-24 (b) In addition to the authority granted by Section 49.222,
27-25 the district may exercise the power of eminent domain to acquire
27-26 land:
28-1 (1) for roads;
28-2 (2) to prevent pollution; and
28-3 (3) for the construction of water filtration plants
28-4 and distribution lines and sanitary disposal plants and related
28-5 facilities.
28-6 (c) The district may lease any land acquired by eminent
28-7 domain to private persons, firms, or corporations for the
28-8 construction of recreational facilities, boating facilities,
28-9 motels, lodges, homesites, and related facilities.
28-10 (d) The district may construct and operate water filtration
28-11 plants and distribution lines, distribution systems for raw and
28-12 filtered water, and sanitary sewage disposal plants and related
28-13 facilities. Revenue bonds of the district may be issued to pay for
28-14 these plants and facilities.
28-15 (e) If the district, in the exercise of the power of eminent
28-16 domain or power of relocation or any other power granted by this
28-17 chapter, makes necessary the relocation, raising, rerouting,
28-18 changing the grade, or altering the construction of any highway,
28-19 railroad, electric transmission line, telegraph or telephone
28-20 properties and facilities, or pipeline, all such necessary
28-21 relocation, raising, rerouting, changing the grade, or alteration
28-22 of construction shall be accomplished at the sole expense of the
28-23 district. In this subsection, "sole expense" means the actual cost
28-24 of such relocation, raising, lowering, rerouting, change in grade,
28-25 or alteration of construction in providing comparable replacement
28-26 without enhancement of the facilities, after deducting the net
29-1 salvage value derived from the old facility.
29-2 Sec. 223.009. CONFLICTS. Nothing in this chapter shall be
29-3 construed to violate any provision of the federal or state
29-4 constitutions, and all acts done under this chapter shall be done
29-5 in such manner as will conform to those constitutions, whether
29-6 expressly provided or not. If any procedure under this chapter is
29-7 held by any court to be a violation of either of those
29-8 constitutions, the district shall have the power by resolution to
29-9 provide an alternative procedure that conforms to those
29-10 constitutions.
29-11 (Chapters 224 to 250 reserved for expansion
29-12 SUBTITLE C. SURFACE WATER AUTHORITIES CREATED BY STATUTE
29-13 CHAPTER 251. ANGELINA AND NECHES RIVER AUTHORITY
29-14 Sec. 251.001. CREATION. (a) A conservation and reclamation
29-15 district to be known as the "Angelina and Neches River Authority"
29-16 is created. The authority is a governmental agency and a body
29-17 politic and corporate.
29-18 (b) The authority is created under and is essential to
29-19 accomplish the purposes of Section 59, Article XVI, Texas
29-20 Constitution.
29-21 (c) The authority may exercise the powers granted by Section
29-22 59, Article XVI, Texas Constitution, to districts created to
29-23 conserve, store, control, preserve, utilize, and distribute the
29-24 storm waters, floodwaters, and waters of the rivers and streams of
29-25 the state and any powers contemplated and implied by the purposes
29-26 of that section or conferred by general law and the provisions of
30-1 this chapter.
30-2 (d) Nothing in this chapter shall authorize the authority to
30-3 levy any taxes or special assessments or to create any debt payable
30-4 out of taxation.
30-5 (e) The authority may exercise all the rights and powers of
30-6 an independent governmental agency and a body politic and corporate
30-7 to construct, maintain, and operate in the valleys of the Neches
30-8 River and its tributaries, within or outside the boundaries of the
30-9 authority, works considered essential to the operation and
30-10 administration of the authority in the control, storing,
30-11 preservation, and distribution to all useful purposes of the waters
30-12 of the Neches River and its tributary streams, including the storm
30-13 waters and floodwaters of the river and the streams. The authority
30-14 may exercise the authority and power of control and regulation over
30-15 the waters of the Neches River and its tributaries as may be
30-16 exercised by the state, subject to the provisions of the
30-17 constitution and the acts of the legislature.
30-18 (f) The rights, powers, privileges, authority, and functions
30-19 granted to the authority and the authority itself are expressly
30-20 subject to Sections 17.183-17.188, Sections 17.271-17.277, and
30-21 Chapters 11, 12, 26, and 49.
30-22 Sec. 251.002. DEFINITIONS. In this chapter:
30-23 (1) "Authority" means the Angelina and Neches River
30-24 Authority.
30-25 (2) "Board" means the board of directors of the
30-26 authority.
31-1 (3) "Director" means a member of the board.
31-2 Sec. 251.003. COORDINATION WITH OTHER DISTRICTS. A
31-3 drainage, conservation, reclamation, or other district created as
31-4 provided by Section 59, Article XVI, Texas Constitution, may
31-5 coordinate its plans with the authority and may enter into joint
31-6 undertakings for the purposes for which the authority and the
31-7 district are created. Any joint undertakings must be approved by a
31-8 majority of the boards of directors of the authority and the
31-9 districts involved.
31-10 Sec. 251.004. BOUNDARIES. (a) The territory to be included
31-11 within the boundaries of the authority shall be that part of the
31-12 state defined as follows: All that territory lying and being
31-13 situated within the watershed of the Neches River and its
31-14 tributaries, and which includes the following named counties, lying
31-15 wholly or in part within said watershed: Van Zandt, Angelina,
31-16 Nacogdoches, San Augustine, Sabine, Jasper, Newton, Rusk, Shelby,
31-17 Houston, Trinity, Polk, and Orange, and that portion of the
31-18 drainage area of Flat Creek in Henderson County which lies west of
31-19 presently designated Farm-to-Market Road 607 leading from LaRue
31-20 through Leagueville to Brownsboro; provided that there is excepted
31-21 from the area covered by the Angelina and Neches River Authority
31-22 all the area presently covered by the Lower Neches Valley Authority
31-23 and the Upper Neches River Municipal Water Authority.
31-24 (b) It is the intent of the legislature to preserve the area
31-25 and authority of the Lower Neches Valley Authority, the Upper
31-26 Neches River Municipal Water Authority, and the Neches River
32-1 Conservation District existing on August 29, 1977.
32-2 Sec. 251.005. BOARD OF DIRECTORS. (a) The management and
32-3 control of the affairs of the authority are vested in a board of
32-4 directors consisting of nine members, who must be freehold property
32-5 taxpayers and legal voters of the state.
32-6 (b) Directors are appointed by the governor with the advice
32-7 and consent of the senate and serve staggered six-year terms. The
32-8 directors shall hold office after their appointment and
32-9 qualification until their successors are appointed and have
32-10 qualified.
32-11 (c) A vacancy on the board is filled by the governor in the
32-12 manner provided by this section for the unexpired term. As soon as
32-13 possible after appointment, a director shall qualify by taking the
32-14 official oath and filing a good and sufficient bond with the
32-15 secretary of state. The official bond of each director, in the
32-16 amount of $1,000, shall be payable to the authority and conditioned
32-17 on the faithful performance of the director's duties and is subject
32-18 to approval by the secretary of state.
32-19 Sec. 251.006. OFFICERS; VOTING REQUIREMENTS. The board
32-20 shall elect a president, vice president, and secretary-treasurer.
32-21 Five directors constitute a quorum at board meetings, and a
32-22 concurrence of a majority of those present shall be sufficient in
32-23 all matters pertaining to the business of the authority.
32-24 Sec. 251.007. OFFICER AND EMPLOYEE BONDS. The board shall
32-25 require an officer or employee who collects, pays, or handles any
32-26 funds of the authority under board orders to furnish good and
33-1 sufficient bond, with a duly authorized surety company payable to
33-2 the authority, conditioned on the faithful performance of the
33-3 person's duties and accounting for all funds and property of the
33-4 authority coming into the person's hands. Bonds required by this
33-5 section shall be in sufficient amounts to safeguard the authority.
33-6 Sec. 251.008. DUTIES OF OFFICERS; MEETINGS. (a) The
33-7 president is the chief executive officer of the authority and
33-8 presides at board meetings. The vice president acts as president
33-9 in case of the absence or disability of the president.
33-10 (b) The secretary-treasurer acts as the secretary of the
33-11 board and is responsible for keeping a record of all proceedings
33-12 and all orders of the board. The secretary-treasurer shall receive
33-13 and receipt for all funds received by the authority and shall keep
33-14 books and records of all funds received and expended. In case of
33-15 the absence or inability of the secretary-treasurer to act, a
33-16 secretary pro tempore shall be selected by the board.
33-17 (c) The board shall hold its meetings at its office and
33-18 principal place of business, unless it directs otherwise for
33-19 specific occasions when called by order of the president, vice
33-20 president, or a majority of its members. The board shall set, by
33-21 order entered in the minutes of its proceedings, a specified time
33-22 for its regular meetings.
33-23 Sec. 251.009. DIRECTOR FEES. A director is entitled to
33-24 receive a fee not to exceed that provided for a director in Chapter
33-25 49.
33-26 Sec. 251.010. RECORDS; AUTHORITY OFFICE. The authority
34-1 shall keep a true and full account of all board meetings and
34-2 proceedings, and records of the board must be maintained in a
34-3 secure manner. The records are the property of the authority and
34-4 are subject to public inspection. A regular office shall be
34-5 established and maintained for conduct of authority business within
34-6 the authority.
34-7 Sec. 251.011. ACCOUNT RECORDS; AUDIT. (a) The authority
34-8 shall keep a complete book of accounts, and the account books and
34-9 records of the authority and of the depository of the authority
34-10 shall be audited by a certified public accountant annually as soon
34-11 as practicable after the end of the year.
34-12 (b) The audit report covering the preceding calendar year
34-13 shall be submitted at the first regular meeting of the board after
34-14 the end of the year. A copy of the report shall be filed in the
34-15 office of the authority, with the depository of the authority, in
34-16 the office of the auditor, and with the commission, and all such
34-17 copies shall be open to public inspection.
34-18 Sec. 251.012. GENERAL MANAGER. The board may employ a
34-19 general manager for the authority and may delegate to the general
34-20 manager full authority to manage and operate the affairs of the
34-21 authority subject only to the orders of the board. Compensation
34-22 for the general manager shall be set by the board.
34-23 Sec. 251.013. SURETY BONDS. All bonds required to be given
34-24 by managers, officers, and employees of the authority shall be
34-25 executed by a surety company authorized to do business in this
34-26 state. The authority may pay the premiums on the bonds required by
35-1 this section.
35-2 Sec. 251.014. CONFLICT OF INTEREST. The board shall comply
35-3 with Chapter 171, Local Government Code, relating to conflicts of
35-4 interest with a business entity in which a board member has a
35-5 substantial interest.
35-6 Sec. 251.015. POWER AND DUTIES. (a) The authority may
35-7 control and employ the waters of the Neches River and its
35-8 tributaries, including the storm waters and floodwaters of the
35-9 rivers and their tributaries, for the conservation and beneficial
35-10 use of the waters in the manner and for the particular purposes
35-11 provided in this section.
35-12 (b) The authority may provide through practical and legal
35-13 means for the control and coordination of the regulation of the
35-14 waters of the Neches River and its tributaries.
35-15 (c) The authority may provide by adequate organization and
35-16 administration for the preservation of the equitable rights of the
35-17 people of the different sections of the watershed area, in the
35-18 beneficial use of the waters of the Neches River and its
35-19 tributaries.
35-20 (d) The authority may provide for storing, controlling, and
35-21 conserving the waters of the Neches River and its tributaries
35-22 within or outside the authority in order to prevent the escape of
35-23 any of the waters without the maximum of public service, prevent
35-24 the devastation of lands from recurrent overflows, and protect life
35-25 and property in the authority from uncontrolled floodwaters.
35-26 (e) The authority may provide for the conservation of the
36-1 waters of the Neches River and its tributaries essential for the
36-2 domestic uses of the people of the authority, including all
36-3 necessary water supplies for cities and towns.
36-4 (f) The authority may provide for the irrigation of all
36-5 lands in the authority, or lands outside the authority but within
36-6 the watershed area, where irrigation is required for agricultural
36-7 purposes, or where irrigation may be considered helpful to more
36-8 profitable agricultural production, and for the equitable
36-9 distribution of the waters to the regional potential requirements
36-10 for all uses, domestic, manufacturing, and irrigation. All plans
36-11 and all works provided by the authority, and all works which may be
36-12 provided under the control of the authority, shall give primary
36-13 consideration to the necessary and potential needs for water by or
36-14 within the area in the authority constituting the watershed of the
36-15 Neches River and its tributaries.
36-16 (g) The authority may provide for the encouragement and
36-17 development of drainage systems and provisions for drainage of
36-18 lands in the valleys of the Neches River and its tributaries
36-19 needing drainage for profitable agricultural production and for
36-20 drainage of other lands in the watershed area of the authority
36-21 requiring drainage for the most advantageous use.
36-22 (h) The authority may provide for the encouragement of the
36-23 conservation of all soils against destructive erosion to prevent
36-24 the increased risk of flood caused by such erosion.
36-25 (i) The authority may control and make available for
36-26 employment waters of the Neches River and its tributaries in the
37-1 development of commercial and industrial enterprises in all
37-2 sections of the watershed area of the authority.
37-3 (j) The authority may provide for the control, storing, and
37-4 employment of waters of the Neches River and its tributaries in the
37-5 development and distribution of hydroelectric power, where such use
37-6 may be economically coordinated with other and superior uses and
37-7 subordinated to the uses declared by law to be superior, and may
37-8 provide for all other purposes for which floodwaters and storm
37-9 waters when controlled and conserved may be used in the performance
37-10 of a useful service as contemplated and authorized by provisions of
37-11 the constitution and the public policy declared by such powers.
37-12 (k) The authority may purchase or construct all works
37-13 necessary or convenient for the exercise of the powers and to
37-14 accomplish the purposes specified in this chapter and to purchase
37-15 or otherwise acquire all lands or other property necessary or
37-16 convenient for carrying out those purposes.
37-17 Sec. 251.016. EMINENT DOMAIN. The right of eminent domain
37-18 is expressly conferred on the authority to enable it to acquire the
37-19 fee simple title to, or easement or right-of-way over and through,
37-20 lands, water, or lands under water, private or public, within and
37-21 outside the authority, necessary or convenient to carry out any of
37-22 the purposes and powers conferred on the authority by this chapter.
37-23 All condemnation proceedings shall be under the direction of the
37-24 board and in the name of the authority, and the assessment of
37-25 damages and all procedures with reference to condemnation, appeal,
37-26 and payment shall be in conformity with Chapter 21, Property Code.
38-1 Sec. 251.017. FEES AND CHARGES. (a) The board shall
38-2 prescribe fees and charges to be collected for the use of water,
38-3 water connections, or other service. The fees and charges shall be
38-4 reasonable and equitable and fully sufficient to produce revenues
38-5 adequate to pay:
38-6 (1) all expenses necessary for the operation and
38-7 maintenance of the improvements and facilities of the authority,
38-8 including the cost of the acquisition of properties and materials
38-9 necessary to maintain the improvements and facilities in good
38-10 condition and to operate them efficiently, necessary wages and
38-11 salaries of the authority, and other expenses reasonably necessary
38-12 for the efficient operation of the improvements and facilities;
38-13 (2) the annual or semiannual interest on any
38-14 obligation issued under this chapter payable out of the revenues of
38-15 the improvements and facilities; and
38-16 (3) the amount required to be paid annually into the
38-17 sinking fund for the payment of any obligations issued under this
38-18 chapter payable out of the revenues of the improvements and
38-19 facilities.
38-20 (b) No other charge shall be made on the revenues derived
38-21 from the improvements and facilities while any obligations issued
38-22 under this chapter remain outstanding and unpaid as to principal or
38-23 interest; provided, however, that out of revenues that may be
38-24 received in excess of those required for the purposes listed in
38-25 Subsections (a)(1), (2), and (3), the board may pay the cost of
38-26 improvements and replacements not covered by Subsection (a)(1) and
39-1 may establish a reasonable depreciation and emergency fund.
39-2 (c) The fees and charges of the authority may not be in
39-3 excess of what is reasonably necessary to fulfill the obligations
39-4 imposed on the authority by this chapter.
39-5 Sec. 251.018. EMPLOYEES AND COMPENSATION. The authority,
39-6 through its board, may employ managers, engineers, attorneys, and
39-7 all necessary employees to properly construct, operate, and
39-8 maintain the works of the authority and carry out the provisions of
39-9 this chapter and may pay reasonable compensation set by the board
39-10 for such services.
39-11 Sec. 251.019. CONTRACTS. (a) The authority may make and
39-12 enter into contracts, leases, and agreements necessary or
39-13 convenient to carry out the powers granted in this chapter.
39-14 Contracts, leases, and agreements may be entered into with any
39-15 person, real or artificial, any corporation, municipal, public, or
39-16 private, or any government or governmental agency, including the
39-17 United States government and the state.
39-18 (b) The authority may convey or cause to be conveyed any of
39-19 its properties, rights, lands, tenements, easements, improvements,
39-20 reservoirs, dams, canals, plants, laterals, works, and facilities
39-21 to the United States government or any of its agencies and may
39-22 enter into a lease with the United States government or any of its
39-23 agencies relative to such property or right. The authority may
39-24 obligate itself to pay rent out of the income and revenues of the
39-25 property or right subject to the lease, with or without the
39-26 privilege of purchase; provided, however, that nothing in this
40-1 section authorizes the assumption by the authority of any
40-2 obligation requiring payment out of taxes.
40-3 (c) Contracts, leases, and agreements authorized by this
40-4 section shall be approved by resolution of the board and shall be
40-5 executed by the president and attested by the secretary.
40-6 Sec. 251.020. RIGHT TO SUE. The authority may sue and be
40-7 sued.
40-8 Sec. 251.021. APPROVAL OF CERTAIN WORKS. Before the
40-9 authority establishes a diversion point or constructs the canals,
40-10 pumping plants, and other works provided for in this chapter, the
40-11 authority must present plans and specifications to the commission
40-12 for approval.
40-13 Sec. 251.022. COMMISSION SUPERVISION. The authority is
40-14 subject to the continuing rights of supervision by the commission
40-15 in the exercise of the powers and duties provided by this chapter.
40-16 The commission may approve or refuse to approve the adequacy of any
40-17 plan or plans for flood control or conservation improvement
40-18 purposes devised by the authority for the achievement of the plans
40-19 and purposes intended in the creation of the authority that
40-20 contemplate improvements supervised by the commission under the
40-21 provisions of general law.
40-22 Sec. 251.023. ADDITIONAL POWERS. (a) The authority has and
40-23 may exercise the functions, powers, authority, rights, and duties
40-24 necessary to accomplish the purposes for which the authority is
40-25 created, including investigating and planning, acquiring,
40-26 constructing, maintaining, and operating all necessary properties,
41-1 lands, rights, tenements, easements, improvements, reservoirs,
41-2 dams, canals, laterals, plants, works, and facilities, including
41-3 the acquisition within or outside the authority of lands,
41-4 rights-of-way, water rights, and all other properties, tenements,
41-5 and easements, and other rights incident to, helpful to, or in aid
41-6 of carrying out the purposes of the authority as provided by this
41-7 chapter.
41-8 (b) This chapter shall be liberally construed to effectuate
41-9 each and all of the purposes provided by this chapter.
41-10 Sec. 251.024. GRANTS AND LOANS. The authority may receive
41-11 grants and borrow money from a department or agency of the United
41-12 States or from any other source and in evidence of such debt
41-13 undertaken may issue the notes, warrants, certificates of
41-14 indebtedness, or other form of obligations of the authority,
41-15 payable solely out of the revenues to be derived from the
41-16 improvements and facilities and the operations and devices of the
41-17 improvements and facilities.
41-18 Sec. 251.025. ISSUANCE OF OBLIGATIONS. (a) Each issue of
41-19 obligations authorized under this chapter constitutes a separate
41-20 series and shall be appropriately designated. The obligations
41-21 shall not constitute an indebtedness or a pledge of the credit of
41-22 the authority and shall never be paid, in whole or in part, out of
41-23 any funds raised, or to be raised, by taxation and must contain a
41-24 recital to that effect. Obligations issued under this chapter
41-25 shall be in registered or coupon form and if in coupon form may be
41-26 registrable as to principal only or as to both principal and
42-1 interest.
42-2 (b) The obligations shall bear interest at a rate not to
42-3 exceed six percent per year, payable annually or semiannually, and
42-4 must be in denominations and must mature serially, or at one time,
42-5 not more than 50 years from their date in the manner provided by
42-6 the board.
42-7 (c) The principal of and interest on the obligations shall
42-8 be made payable within or outside the state at the discretion of
42-9 the board. The obligations may be made redeemable at the option of
42-10 the board prior to maturity at premiums the board determines.
42-11 (d) The obligations shall be signed by the president and
42-12 secretary of the board. The interest coupons attached to the
42-13 obligations may be executed with facsimile signatures of the
42-14 officers.
42-15 (e) The obligations shall be sold in the manner and at the
42-16 time the board determines to be expedient and necessary to the
42-17 interest of the authority, provided that in no event shall
42-18 obligations be sold for a price that will result in an interest
42-19 yield of more than six percent, computed to maturity according to
42-20 standard bond tables in general use by banks and insurance
42-21 companies.
42-22 (f) If an officer whose signature is on the obligations or
42-23 coupons ceases to be an officer before the delivery of the
42-24 obligations to the purchaser, the signature nevertheless shall be
42-25 valid and sufficient for all purposes.
42-26 (g) Obligations issued under the provisions of this chapter
43-1 are negotiable instruments under the laws of this state.
43-2 Sec. 251.026. REVENUE OBLIGATIONS. (a) Obligations issued
43-3 under this chapter may be payable from, and secured by the pledge
43-4 of, all the revenues derived from the operation of the improvements
43-5 and facilities of the authority, exclusive of any revenues derived
43-6 from taxation of assessments; may be payable from, and secured by
43-7 the pledge of, only such revenues as may be derived from the
43-8 operation of the improvements and facilities acquired with the
43-9 proceeds of the sale of such obligations; or may be payable from,
43-10 and secured by the pledge of, a specific part of the revenues
43-11 derived from the operation of the improvements and facilities of
43-12 the authority, all as may be provided in the proceedings
43-13 authorizing the issuance of such obligations.
43-14 (b) If more than one series of obligations is issued under
43-15 the provisions of this chapter payable from and secured by
43-16 identical revenues, priority of lien against the revenues shall
43-17 depend on the time of delivery of the obligations, each series
43-18 enjoying a lien against the revenues prior and superior to that
43-19 enjoyed by any other series of obligations subsequently delivered;
43-20 provided, however, that as to any issue or series of obligations
43-21 that may be authorized as a unit but delivered from time to time in
43-22 blocks, the board may, in proceedings authorizing the issuance of
43-23 the obligations, provide that all the obligations of the series or
43-24 issue shall be coequal as to lien, regardless of the time of
43-25 delivery.
43-26 Sec. 251.027. SINKING FUND. (a) A resolution or order
44-1 authorizing the issuance of obligations under this chapter shall
44-2 provide for the creation of a sinking fund. Revenues pledged to
44-3 the payment of obligations shall be paid into the sinking fund from
44-4 month to month as the revenues are collected in amounts fully
44-5 sufficient to pay principal of and interest on the obligations.
44-6 The money in the sinking fund shall be applied solely to the
44-7 payment of interest on the obligations for whose payment the fund
44-8 is created, and for the retirement of the obligations, at or prior
44-9 to maturity, in the manner provided by this section.
44-10 (b) The board may at the time obligations are authorized
44-11 provide that all money in the sinking fund in excess of the amount
44-12 required for the payment of the interest on and principal of the
44-13 outstanding obligations, for the period the board may determine,
44-14 shall be expended once each year pursuant to board order in the
44-15 purchase of obligations for whose account the sinking fund has been
44-16 accumulated, if any obligations can be purchased at a price that
44-17 seems reasonable to the board, and may provide that if the
44-18 obligations contain an option permitting retirement before
44-19 maturity, such excess amounts shall be paid out as provided for the
44-20 purchase of the obligations. If the board is unable to purchase
44-21 sufficient obligations of the issue to absorb all the surplus, the
44-22 board shall call for redemption of a sufficient amount of the
44-23 obligations to absorb, so far as practicable, the entire surplus
44-24 remaining in the sinking fund.
44-25 (c) The resolution or order may provide that any excess in
44-26 the sinking fund that cannot be applied to the purchase or
45-1 redemption of obligations shall remain in the sinking fund to be
45-2 used for payment of principal or interest when due or for the
45-3 subsequent call of obligations for purchase or redemption in the
45-4 manner provided by this section.
45-5 Sec. 251.028. COVENANTS WITH HOLDERS. A resolution or order
45-6 authorizing the issuance of obligations under this chapter may
45-7 contain covenants with the holders of the obligations as to the
45-8 management and operation of the improvements and facilities,
45-9 collection of fees and charges for the use of the improvements and
45-10 facilities, disposition of the fees and charges, issuance of future
45-11 obligations and creation of future liens, mortgages and
45-12 encumbrances against the improvements and facilities, and the
45-13 revenues of the improvements and facilities, and other pertinent
45-14 matters, that are considered necessary to insure the marketability
45-15 of the obligations, provided that the covenants are not
45-16 inconsistent with the provisions of this chapter.
45-17 Sec. 251.029. DEDICATION OF REVENUES. (a) A resolution or
45-18 order authorizing the issuance of obligations under this chapter
45-19 shall provide that the revenues from which the obligations are to
45-20 be paid and that are pledged to the payment of the obligations
45-21 shall from month to month, as the obligations accrue and are
45-22 received, be set apart and placed in the sinking fund and disbursed
45-23 in the manner provided by this chapter.
45-24 (b) The board, in setting and determining the amount of
45-25 revenues to be set aside as provided in Subsection (a), shall
45-26 provide that the amount to be set aside and paid into the sinking
46-1 fund in any year or years shall be not less than a set amount that
46-2 is at least sufficient to provide for the payment of the interest
46-3 on and principal of all obligations maturing and becoming payable
46-4 in each such year, together with a surplus or margin of 10 percent
46-5 in excess of such amount.
46-6 Sec. 251.030. ACTIONS BY HOLDERS; ADMINISTRATOR OR RECEIVER.
46-7 (a) A holder of obligations issued under this chapter, or of
46-8 coupons originally attached to the obligations, may either at law
46-9 or in equity, by suit, action, mandamus, or other proceeding,
46-10 enforce and compel performance of all duties required by this
46-11 chapter to be performed by the board, including the making and
46-12 collecting of reasonable and sufficient fees or charges for the use
46-13 of the improvements and facilities of the authority, the
46-14 segregation of the income and revenues of the improvements and
46-15 facilities, and the application of the income and revenues under
46-16 the provisions of this chapter.
46-17 (b) In the event of a default in the payment of the
46-18 principal of or interest on any of the obligations of the
46-19 authority, a holder of the obligation shall be entitled to have an
46-20 administrator or a receiver appointed by a court having
46-21 jurisdiction to administer and operate the improvements and
46-22 facilities whose revenues are pledged to the payment of the
46-23 obligations on behalf of the authority and the holders of the
46-24 obligations. The administrator or receiver may be authorized to
46-25 fix and collect fees and charges sufficient to provide for the
46-26 payment of operation and maintenance expenses as defined by this
47-1 chapter, to pay any outstanding obligations or interest coupons
47-2 payable from the revenues of the improvements and facilities, and
47-3 to apply the income and revenues of the improvements and facilities
47-4 in conformity with the provisions of this chapter and the
47-5 proceedings authorizing the issuance of the obligations.
47-6 Sec. 251.031. TRUST INDENTURE. (a) As additional security
47-7 for the payment of obligations issued under this chapter, the board
47-8 may, at its discretion, have executed in favor of the holders of
47-9 the obligations an indenture mortgaging and encumbering the
47-10 improvements, facilities, and properties acquired with the proceeds
47-11 of the sale of the obligations, or all the improvements,
47-12 facilities, and properties of the authority, and may provide in the
47-13 encumbrance for a grant to a purchaser at foreclosure sale under
47-14 the encumbrance of a franchise to operate the improvements,
47-15 facilities, and properties, for a term of not over 50 years from
47-16 the date of the purchase, subject to all applicable laws.
47-17 (b) An indenture under this section may contain terms and
47-18 provisions the board deems proper and shall be enforceable in the
47-19 manner provided by the laws of Texas for the enforcement of other
47-20 mortgages and encumbrances.
47-21 (c) Under a sale ordered under the provisions of the
47-22 mortgage or encumbrance, the purchaser at the sale, and the
47-23 purchaser's successors or assigns, shall be vested with a permit
47-24 and franchise to maintain and operate the improvements, facilities,
47-25 and properties purchased at the sale, with the powers and
47-26 privileges used by the authority in the operation of the
48-1 improvements, facilities, and properties.
48-2 (d) The purchaser of the improvements, facilities, and
48-3 properties at a sale, and the purchaser's successors and assigns,
48-4 may operate the improvements, facilities, and properties as
48-5 provided in Subsection (c) or may at their option remove all or
48-6 part of the improvements, facilities, and properties for diversion
48-7 to other purposes.
48-8 (e) Any statutory provisions pertaining to the granting of
48-9 franchises do not apply to the authorization or execution of any
48-10 mortgage or encumbrance entered into under the provisions of this
48-11 chapter or to the granting of any franchise under this chapter.
48-12 Sec. 251.032. SALE PROCEEDS. (a) The proceeds of the sale
48-13 of any obligations issued under this chapter may be deposited in
48-14 the bank or banks agreed on by the purchaser and the board. The
48-15 proceeds may be deposited and paid out pursuant to the terms and
48-16 conditions agreed on, provided that the general law pertaining to
48-17 the deposit of the authority funds in the depository of the
48-18 authority is not applicable to the deposit of the proceeds of the
48-19 sale.
48-20 (b) Any part of the proceeds of the sale of obligations
48-21 issued under this chapter that remains unexpended after the project
48-22 for which the obligations were authorized has been completed may be
48-23 paid into the sinking fund for the payment of the obligations and
48-24 may be used only for the payment of principal of the obligations or
48-25 for the purposes of acquiring such outstanding obligations by
48-26 purchase in the manner provided by this chapter.
49-1 Sec. 251.033. INSURANCE FOR IMPROVEMENTS AND FACILITIES.
49-2 The board may enter into an agreement with a purchaser of
49-3 obligations issued by the authority to keep all the improvements
49-4 and facilities whose revenues are pledged to the payment of the
49-5 obligations insured with insurers of good standing against loss or
49-6 damage by fire, water, or flood and from any other hazards
49-7 customarily insured against by private companies operating similar
49-8 properties. The authority may also agree to carry with insurers of
49-9 good standing insurance covering the use and occupancy of such
49-10 property that is customarily carried by private companies. The
49-11 cost of insurance shall be budgeted as maintenance and operation
49-12 expense, and the insurance shall be carried for the benefit of the
49-13 holders of the obligations.
49-14 Sec. 251.034. EXEMPTION FROM TAXATION. Obligations issued
49-15 under the provisions of this chapter are exempt from taxation by
49-16 the state or by any municipal corporation, county, or other
49-17 political subdivision or taxing district of the state.
49-18 Sec. 251.035. REFUNDING OBLIGATIONS. After issuing
49-19 obligations under this chapter, the authority may authorize and
49-20 issue its refunding obligations on terms the board deems advisable
49-21 for the purpose of providing for the retirement of any outstanding
49-22 obligations, either due or to become due. The refunding
49-23 obligations may be either exchanged for like par amounts of the
49-24 outstanding obligations or may be sold and the proceeds of the sale
49-25 so applied. Refunding obligations authorized and issued under this
49-26 section are subject to the provisions of this chapter pertaining to
50-1 the issuance of other obligations and shall be secured in all
50-2 respects to the same extent and be payable from the same revenues
50-3 as the obligations being refunded.
50-4 Sec. 251.036. APPROVAL AND REGISTRATION OF OBLIGATIONS.
50-5 Before any obligations are issued, the authority shall submit a
50-6 certified copy of the obligations and of the proceedings for their
50-7 issuance, together with any additional information that may be
50-8 required, to the attorney general for approval. When approved the
50-9 obligations shall be issued after registration with the comptroller
50-10 of public accounts.
50-11 Sec. 251.037. FULL AUTHORITY. This authority set out in
50-12 this chapter for the authorization and issuance of obligations is
50-13 in addition to, and not in lieu of, the authority otherwise
50-14 established under general law and is not to be construed as a
50-15 limitation on, or a modification of, general law providing for
50-16 authorization and issuance of bonds, notes, and other forms of
50-17 obligations. Nothing in this chapter shall be construed as
50-18 affecting any existing contract, bond, note, or other obligation of
50-19 the authority or any indenture, covenant, mortgage, or other
50-20 agreement relating to them.
50-21 Sec. 251.038. EXISTING WATER RIGHTS. Nothing in this
50-22 chapter shall be construed as affecting any rights existing at the
50-23 time of the formation of the authority, or priorities in the
50-24 rights, to water from the source of supply, and neither the
50-25 formation of the authority or a contract for the purchase of water
50-26 with the authority shall ever be held to be an abandonment or
51-1 waiver of those rights or priorities, or an abandonment of the
51-2 original point of diversion from the source of supply, but all such
51-3 rights existing at the time of the formation of the authority shall
51-4 be preserved.
51-5 CHAPTER 252. BRAZOS RIVER AUTHORITY
51-6 Sec. 252.001. CREATION. (a) A conservation and reclamation
51-7 district to be known as the "Brazos River Authority" is created.
51-8 The authority is a river authority, a governmental agency, a
51-9 municipality, and a body politic and corporate.
51-10 (b) The authority is created under and is essential to
51-11 accomplish the purposes of Section 59, Article XVI, Texas
51-12 Constitution.
51-13 (c) The authority may exercise the powers expressly granted
51-14 by Section 59, Article XVI, Texas Constitution, to districts
51-15 created to conserve, control, and utilize to beneficial service the
51-16 storm waters and floodwaters of the rivers and streams of the
51-17 state, as well as such powers as may be contemplated and implied by
51-18 the purposes of that provision of the constitution and as may be
51-19 conferred by general law and the provisions of this chapter. In
51-20 addition, the authority shall have and is recognized to exercise
51-21 such authority to discover, develop, and produce groundwater in the
51-22 Brazos River Basin for the use of its customers.
51-23 (d) The authority may exercise all the rights and powers of
51-24 an independent governmental agency, a municipality, and a body
51-25 politic and corporate to formulate plans deemed essential to its
51-26 operation and for its administration in the control, storing,
52-1 preservation, and distribution to all useful purposes of the storm
52-2 waters and floodwaters of the Brazos River and its tributary
52-3 streams.
52-4 (e) The authority may exercise such authority and power of
52-5 control and regulation over the storm waters and floodwaters of the
52-6 Brazos River and its tributaries as may be exercised by the state,
52-7 subject to the provisions of the constitution and the acts of the
52-8 legislature.
52-9 Sec. 252.002. DEFINITIONS. In this chapter:
52-10 (1) "Authority" means the Brazos River Authority.
52-11 (2) "Board" means the board of directors of the
52-12 authority.
52-13 (3) "Director" means a member of the board.
52-14 Sec. 252.003. TERRITORY. The territory of the authority
52-15 comprises the watershed of the Brazos River, as determined by rule
52-16 of the Texas Water Development Board, except the portions lying
52-17 within Freestone, Leon, and Madison counties.
52-18 Sec. 252.004. POWERS. (a) The authority may exercise, in
52-19 addition to all the general powers vested by the constitution and
52-20 statutes in a governmental agency and body politic and corporate
52-21 for the greatest practicable measure of conservation and beneficial
52-22 utilization of storm waters, floodwaters, and unappropriated flow
52-23 waters, the powers of control and employment of the floodwaters,
52-24 storm waters, unappropriated flow waters, and groundwater of the
52-25 authority in the manner and for the purposes provided by this
52-26 section.
53-1 (b) The authority may provide, through all practical and
53-2 legal means, for the control and the coordination of the regulation
53-3 of the waters of the watershed of the Brazos River and its
53-4 tributary streams as a unit.
53-5 (c) The authority may provide, by adequate organization and
53-6 administration, for the preservation of the equitable rights of the
53-7 people of the different sections of the watershed area in the
53-8 beneficial use of storm waters, floodwaters, and unappropriated
53-9 flow waters of the Brazos River and its tributary streams.
53-10 (d) The authority may provide for storing, controlling, and
53-11 conserving storm waters, floodwaters, and unappropriated flow
53-12 waters of the Brazos River and its tributaries, preventing the
53-13 escape of any of such waters without the maximum of public service,
53-14 preventing the devastation of lands by recurrent overflows, and
53-15 protecting life and property in the watershed area from
53-16 uncontrolled floodwaters.
53-17 (e) The authority may provide for the conservation of waters
53-18 essential for the domestic uses of the people of the watershed of
53-19 the Brazos River and its tributaries, including all necessary water
53-20 supplies for cities and towns.
53-21 (f) The authority may provide for the irrigation of lands in
53-22 the watershed of the Brazos River and its tributary streams where
53-23 irrigation is required for agricultural purposes, or may be
53-24 considered helpful to more profitable agricultural production, and
53-25 provide for the equitable distribution of storm waters,
53-26 floodwaters, and unappropriated flow waters to the regional
54-1 potential requirements for all uses. Plans and works provided by
54-2 the authority, and works provided under the authorization of the
54-3 authority, should give primary consideration to the necessary and
54-4 potential needs for water by or within the areas constituting the
54-5 watershed of the Brazos River and its tributary streams.
54-6 (g) The authority may provide for the better encouragement
54-7 and development of drainage systems and provisions for drainage of
54-8 lands in the valleys of the Brazos River and its tributary streams
54-9 needing drainage for profitable agricultural production and
54-10 drainage for other lands in the watershed area of the authority
54-11 requiring drainage for the most advantageous use.
54-12 (h) The authority may provide for the conservation of all
54-13 soils against destructive erosion and to prevent an increased flood
54-14 danger caused by destructive soil erosion.
54-15 (i) The authority may provide for controlling and making
54-16 available for employment floodwaters, storm waters, and
54-17 unappropriated flow waters in the development of commercial and
54-18 industrial enterprises in all sections of the watershed area of the
54-19 authority.
54-20 (j) The authority may provide for the control, storage, and
54-21 employment of floodwaters, storm waters, and unappropriated flow
54-22 waters in the development and distribution of hydroelectric power,
54-23 where this use may be economically coordinated with other and
54-24 superior uses and subordinated to the uses declared by law to be
54-25 superior.
54-26 (k) The authority may provide for each purpose for which
55-1 floodwaters, storm waters, and unappropriated flow waters, when
55-2 controlled and conserved, may be used in the performance of a
55-3 useful service as contemplated and authorized by the provisions of
55-4 the constitution and the public policy it declares.
55-5 (l) The authority may provide for the development of
55-6 groundwater and may make groundwater available for use for
55-7 domestic, municipal, irrigation, commercial, and industrial
55-8 purposes.
55-9 Sec. 252.005. LIMITATION OF AUTHORITY; STATE SUPERVISION.
55-10 The powers and duties granted to the authority by this chapter are
55-11 subject to all legislative declarations of public policy in the
55-12 maximum utilization of the storm waters, floodwaters, and
55-13 unappropriated flow waters of the Brazos River watershed and
55-14 developed groundwater of the Brazos River Basin for the purposes
55-15 for which the authority is created, as expressed and indicated in
55-16 this chapter, and subject to the continuing rights of supervision
55-17 by the state.
55-18 Sec. 252.006. DAMS AND RESERVOIRS; WATER SUPPLY CONTRACTS.
55-19 (a) The authority may construct, acquire, equip, acquire storage
55-20 rights at, and operate dams and reservoirs that in the opinion of
55-21 the board are useful in carrying out the powers conferred on the
55-22 authority by this chapter, whether any such dam is designed to
55-23 serve a single purpose or multiple purposes.
55-24 (b) The authority may provide water supply lines and water
55-25 purification and pumping facilities.
55-26 (c) The authority may execute contracts with municipalities
56-1 in the state substantially in the manner prescribed by Section
56-2 402.020, Local Government Code, for districts organized or created
56-3 pursuant to Section 59, Article XVI, Texas Constitution, and may
56-4 execute water supply contracts with other users of water.
56-5 Sec. 252.007. PRIORITY OF RIGHTS. Nothing in this chapter
56-6 changes any existing priority of right under the laws of the state
56-7 to the use of waters of the state, including any rights of
56-8 municipalities that maintain and use storage structures in the bed
56-9 of the Brazos River or its tributaries.
56-10 Sec. 252.008. BOND PROVISIONS. (a) Bonds may be:
56-11 (1) sold for cash, at public or private sale, at such
56-12 price or prices as the board determines;
56-13 (2) issued on such terms as the board determines in
56-14 exchange for property of any kind, real, personal, or mixed, or any
56-15 interest in property, that the board determines necessary or
56-16 convenient for any corporate purpose; or
56-17 (3) issued to refund bonds issued at any time under
56-18 authority of this chapter.
56-19 (b) Bonds must be authorized by resolution of the board.
56-20 (c) A resolution authorizing bonds may contain provisions,
56-21 which shall be part of the contract between the authority and the
56-22 purchasers and subsequent holders of the bonds:
56-23 (1) reserving the right to redeem the bonds at the
56-24 time or times, in the amounts, and at the prices as may be
56-25 provided;
56-26 (2) providing for the setting aside of sinking funds
57-1 or reserve funds and the regulation and disposition of those funds;
57-2 (3) pledging, to secure the payment of the principal
57-3 of and interest on the bonds and the sinking fund or reserve fund
57-4 payments agreed to be made with respect to the bonds, all or any
57-5 part of the gross or net revenues subsequently received by the
57-6 authority with respect to the property, real, personal, or mixed,
57-7 to be acquired or constructed with the bonds or with proceeds of
57-8 the bonds, or all or any part of the gross or net revenues
57-9 subsequently received by the authority from any source;
57-10 (4) prescribing the purposes to which the bonds or any
57-11 bonds later issued, or the proceeds of the bonds, may be applied;
57-12 (5) agreeing to set and collect rates and charges
57-13 sufficient to produce revenues that are adequate to pay the items
57-14 specified in any resolution or resolutions authorizing any bonds,
57-15 and prescribing the use and disposition of all revenues;
57-16 (6) prescribing limitations on the issuance of
57-17 additional bonds and on all agreements that may be made with the
57-18 purchasers and successive holders of the bonds;
57-19 (7) relating to the construction, extension,
57-20 improvement, operation, maintenance, depreciation, replacement, and
57-21 repair of the properties of the authority and the carrying of
57-22 insurance on all or any part of the property covering loss or
57-23 damage or loss of use and occupancy resulting from specified risks;
57-24 (8) fixing the procedure, if any, by which, if the
57-25 authority so desires, the terms of any contract with the holders of
57-26 bonds may be amended or abrogated, the amount of bonds the holders
58-1 of which must consent to such amendment or abrogation, and the
58-2 manner in which the consent shall be evidenced;
58-3 (9) providing for the execution and delivery by the
58-4 authority to a bank or trust company authorized by law to accept
58-5 trusts, or to the United States or any office or agency of the
58-6 United States, of indentures or agreements authorized to be made
58-7 with or for the benefit of the holders of the bonds and such other
58-8 provisions as may be contained in the indentures or agreements; and
58-9 (10) making such other provisions, not inconsistent
58-10 with provisions of this chapter, as the board may approve.
58-11 (d) Before any bonds may be sold by the authority, a
58-12 certified copy of the proceedings for the issuance of the bonds,
58-13 including the term of the bonds, together with any other
58-14 information that the attorney general may require, shall be
58-15 submitted to the attorney general, and if the attorney general
58-16 finds that the bonds have been issued in accordance with law, the
58-17 attorney general shall approve the bonds and shall execute a
58-18 certificate to that effect which shall be filed in the office of
58-19 the comptroller and be recorded in a record kept for that purpose.
58-20 The comptroller shall register the bonds if the attorney general
58-21 has filed with the comptroller the certificate approving the bonds
58-22 and the proceedings for the issuance of the bonds as provided in
58-23 this section. Bonds may not be issued until the bonds have been
58-24 registered by the comptroller.
58-25 (e) Bonds approved by the attorney general, registered by
58-26 the comptroller, and issued in accordance with proceedings so
59-1 approved are valid and binding obligations of the authority and are
59-2 incontestable for any cause from and after the time of their
59-3 registration.
59-4 Sec. 252.009. BOARD OF DIRECTORS; BONDS; QUORUM; OFFICERS.
59-5 (a) The board consists of 21 members. Members of the board and
59-6 their successors serve for terms of six years and until their
59-7 successors are designated and have qualified. The terms of seven
59-8 members of the board expire on February 1 of each odd-numbered
59-9 year.
59-10 (b) The governor shall appoint seven persons each biennium
59-11 with the advice and consent of the senate to serve on the board.
59-12 Within 60 days after appointment, each director shall take and
59-13 subscribe an oath of office similar to the oaths administered to
59-14 county commissioners and shall execute bond in the amount of
59-15 $5,000, payable to the authority. The premium on the bond shall be
59-16 paid by the authority. The bond, after being recorded in the
59-17 official bond records of the county in which the authority
59-18 maintains its office, shall be deposited with a depository selected
59-19 and approved for the deposit of the funds of the authority.
59-20 (c) All vacancies occurring on the board shall be filled by
59-21 appointment of the governor with the advice and consent of the
59-22 senate.
59-23 (d) Seven members of the board constitute a quorum to
59-24 transact business.
59-25 (e) The governor may not appoint more than two directors who
59-26 reside in the same county at the time of their appointment.
60-1 (f) The board shall elect from among its members a chairman,
60-2 a vice chairman, and a secretary and shall appoint a treasurer.
60-3 The treasurer shall furnish a bond in an amount equal to 75 percent
60-4 of the amount of money estimated to be on hand during the year, in
60-5 no event to be more than $100,000.
60-6 Sec. 252.010. CREATION OF MASTER DISTRICT; WATER CONTROL AND
60-7 IMPROVEMENT DISTRICT. A master district is created having all the
60-8 powers, duties, and functions, and subject to applicable and
60-9 practicable procedures for such districts, to accomplish the
60-10 purposes of this chapter, as provided by Chapter 49 and the
60-11 provisions of this code applicable to water control and improvement
60-12 districts.
60-13 Sec. 252.011. BOND ELECTION REQUIRED. The authority may not
60-14 issue bonds or incur any form of continuing obligation or
60-15 indebtedness, except indebtedness payable solely from revenues, for
60-16 purposes of effecting improvements comprehended in the plan of
60-17 organization and administration of the authority, or incur any
60-18 indebtedness in the form of a continuing charge on lands or
60-19 properties within the authority, unless such proposition has been
60-20 submitted to the qualified voters of the authority, or in
60-21 appropriate cases the qualified voters of a defined area within the
60-22 authority, and is approved by a majority of the electors voting on
60-23 the proposition.
60-24 Sec. 252.012. ADDITIONAL POWERS AND DUTIES. (a) The
60-25 authority is a district and a river authority as defined in Chapter
60-26 30. All the provisions of Chapter 30 are applicable to the
61-1 authority.
61-2 (b) As used in this section:
61-3 (1) "Person" means any individual, partnership,
61-4 corporation, public utility, or other private entity or any public
61-5 agency.
61-6 (2) "Public agency" means an authority, district,
61-7 city, town, or other political subdivision, joint board, or other
61-8 public agency created pursuant to and operating under the laws of
61-9 the state and any entity created to operate on behalf of a public
61-10 agency.
61-11 (c) The authority and all persons may enter into contracts
61-12 with each other, in any manner and on terms that the parties may
61-13 agree, with respect to any power, function, facility, or service
61-14 that the authority is authorized by law to provide or finance.
61-15 Public agencies may use and pledge any available revenues for and
61-16 in the payment of amounts due under a contract as an additional
61-17 source of payment of the contract and may covenant with respect to
61-18 available revenues to assure the availability of the revenues when
61-19 required. In this subsection, "revenues" does not mean or include
61-20 revenues from ad valorem taxes levied and collected by a public
61-21 agency or the proceeds from the sale or refunding of bonds of a
61-22 public agency that are to be wholly or partially paid from ad
61-23 valorem taxes levied and collected by the public agency unless the
61-24 use or pledge of the tax revenues or bond proceeds is approved by
61-25 the qualified voters of the public agency at an election called for
61-26 the purpose of levying taxes or issuing or refunding bonds, or
62-1 both, for the purpose of using or pledging their revenues or
62-2 proceeds under contracts entered into under this subsection.
62-3 (d) A public agency may set, charge, and collect fees,
62-4 rates, charges, rentals, and other amounts for a service or
62-5 facility provided by a utility operated by the public agency, or
62-6 provided pursuant to or in connection with a contract with the
62-7 authority, from the inhabitants of the authority or from any users
62-8 or beneficiaries of the utility, service, or facility, including:
62-9 (1) water charges;
62-10 (2) sewage charges;
62-11 (3) solid waste disposal system fees and charges,
62-12 including garbage collection or handling fees; and
62-13 (4) other fees or charges.
62-14 (e) A public agency may use and pledge the fees, rates,
62-15 charges, rentals, and other amounts authorized by Subsection (c) to
62-16 make payments to the authority required under a contract with the
62-17 authority and may covenant to do so in amounts sufficient to make
62-18 all or any part of the payments to the authority when due. If the
62-19 parties agree in the contract, the payments shall constitute an
62-20 expense of operation of any facility or utility operated by the
62-21 public agency.
62-22 (f) The authority, acting through the board, may carry out
62-23 any activities and acquire, purchase, construct, own, operate,
62-24 maintain, repair, improve, or extend and may lease or sell, on
62-25 terms and conditions, including rentals or sale prices, on which
62-26 the parties may agree, all works, improvements, facilities, plants,
63-1 buildings, structures, equipment, and appliances, and all real and
63-2 personal property, or any interest in real or personal property,
63-3 related to the works, improvements, facilities, plants, buildings,
63-4 structures, equipment, and appliances, that are incident to or
63-5 necessary in carrying out or performing any power or function of
63-6 the authority under this section.
63-7 (g) The authority may issue bonds with respect to the
63-8 acquisition, purchase, construction, maintenance, repair,
63-9 improvement, and extension of works, improvements, facilities,
63-10 plants, buildings, structures, appliances, and property for the
63-11 purpose of exercising any of its powers and functions under this
63-12 section in the manner provided by this chapter or any other
63-13 applicable law.
63-14 (h) The authority may issue revenue bonds to pay for the
63-15 costs of feasibility studies for proposed projects of the
63-16 authority, including engineering, planning and design, and
63-17 environmental studies. The authority may include in any revenue
63-18 bond issue the funds to operate and maintain, for a period not to
63-19 exceed two years after completion, the facilities acquired or
63-20 constructed through the revenue bond issue.
63-21 (i) If bonds issued by the authority recite that they are
63-22 secured by a pledge of payments under a contract, a copy of the
63-23 contract and the proceedings relating to the contract may be
63-24 submitted to the attorney general along with the bonds. If the
63-25 attorney general finds that the bonds have been authorized and the
63-26 contract has been made and entered into in accordance with law, the
64-1 attorney general shall approve the bonds and the contract, and
64-2 after the approval, the bonds and the contract are incontestable in
64-3 any court or other forum for any reason and are valid and binding
64-4 in accordance with their terms and provisions for all purposes.
64-5 (j) The provisions of Chapters 618, 1201, 1204, 1207, and
64-6 1371, Government Code, are applicable to bonds issued by the
64-7 authority.
64-8 (k) This section is wholly sufficient authority for the
64-9 issuance of bonds, the execution of contracts, and the performance
64-10 of other acts and procedures authorized by this section by the
64-11 authority and all persons, including public agencies, without
64-12 reference to any other provision of law or any restriction or
64-13 limitation contained in those provisions, except as specifically
64-14 provided in this section. To the extent of any conflict or
64-15 inconsistency between any provision of this section and any other
64-16 provision of law, including any home-rule city charter, this
64-17 section shall prevail and control. The authority and all persons,
64-18 including public agencies, may use any provision of law not in
64-19 conflict with the provisions of this section to the extent
64-20 convenient or necessary to carry out any power or authority,
64-21 expressed or implied, granted by this section.
64-22 Sec. 252.013. DISPOSITION OF PROPERTY. (a) Nothing in this
64-23 chapter shall be construed as authorizing the authority, and it
64-24 shall not be authorized, to mortgage or otherwise encumber any of
64-25 its property of any kind, real, personal, or mixed, or any interest
64-26 in property, or to acquire any property or interest subject to a
65-1 mortgage or conditional sale; provided, however, that this section
65-2 shall not be construed as preventing the pledging of the revenues
65-3 of the authority as provided by this chapter.
65-4 (b) Nothing in this chapter shall be construed as
65-5 authorizing the sale, release, or other disposition of property of
65-6 any kind, real, personal, or mixed, or any interest in property, by
65-7 the authority or through any court proceedings or otherwise;
65-8 provided, however, that the authority may sell for cash any
65-9 property or interest if the board by affirmative vote of 11 of its
65-10 members determines that the property or interest is not necessary
65-11 to the business of the authority and approves the terms of the
65-12 sale. Except by sale as expressly authorized in this section, such
65-13 property or interest may not come into the ownership or control,
65-14 directly or indirectly, of any person, firm, or corporation other
65-15 than a public authority created under the laws of the state.
65-16 (c) All property of the authority shall be at all times
65-17 exempted from forced sale, and nothing provided in this chapter
65-18 shall authorize the sale of any of the property of the authority
65-19 under any judgment rendered in any suit, and such sales are
65-20 prohibited and forbidden.
65-21 (d) Notwithstanding any restrictions or provisions in this
65-22 section or in this chapter, the authority, acting by a majority
65-23 vote of the board, may construct or purchase, from any person,
65-24 firm, or corporation (referred to in this section as "customer")
65-25 with which the authority has contracted to sell hydroelectric
65-26 power, transmission lines and other property used or to be used by
66-1 the customer for the transmission of or in connection with power
66-2 purchased or to be purchased from the authority. The authority may
66-3 lease all or any portion of such property to the customer for all
66-4 or a portion of the time during the term of the hydroelectric power
66-5 purchase contract. The lease may contain provisions, which shall
66-6 be valid and enforceable, giving the lessee the right to purchase
66-7 from the authority all or any portion of the property at or within
66-8 the time specified in the lease and for a price and on terms and
66-9 conditions specified in the lease; provided, however, that the
66-10 price shall never be less than the depreciated value, determined in
66-11 the manner prescribed in the lease, plus one percent of the
66-12 original cost of the property.
66-13 Sec. 252.014. ACQUISITION OF PROPERTY; EMINENT DOMAIN.
66-14 (a) The authority may acquire by purchase, lease, or gift or in
66-15 any other manner and may maintain, use, and operate property of any
66-16 kind, real, personal, or mixed, or any interest in property, within
66-17 or outside the boundaries of the authority, necessary or convenient
66-18 to the exercise of the powers, rights, privileges, and functions
66-19 conferred on the authority by this chapter.
66-20 (b) The authority may acquire, by purchase, condemnation, or
66-21 otherwise, such property as the board determines necessary to make
66-22 effectual and practicable the construction and operation of all
66-23 works, improvements, and services which may be planned ultimately
66-24 to be provided by the authority to accomplish any of the purposes
66-25 for which the authority was created. Such acquisition or
66-26 condemnation may be either of the fee simple title or of a lesser
67-1 title or an easement only, within the discretion of the board;
67-2 provided, however, that no person shall be deprived of any defense
67-3 available under the general law of eminent domain; and provided,
67-4 further, that the authority may not acquire or operate a steam
67-5 generating plant for the production and sale of electric energy
67-6 and, except for the purpose of acquiring the necessary area below
67-7 or above the anticipated high-water line of a reservoir, may not
67-8 condemn any property of a rural electrification cooperative or
67-9 other corporations engaged in the generation or sale of electric
67-10 energy to the public.
67-11 (c) The authority shall have the power of eminent domain for
67-12 the purpose of acquiring by condemnation property of any kind,
67-13 real, personal, or mixed, or any interest in property, within or
67-14 outside the boundaries of the authority, other than property or an
67-15 interest in property outside the boundaries of the authority owned
67-16 by any body politic, that is necessary or convenient to the
67-17 exercise of the powers, rights, privileges, and functions conferred
67-18 on the authority by this chapter, in the manner provided by general
67-19 law with respect to condemnation or, at the option of the
67-20 authority, in the manner provided by statutes relative to
67-21 condemnation by districts organized under general law pursuant to
67-22 Section 59, Article XVI, Texas Constitution.
67-23 (d) In condemnation proceedings being prosecuted by the
67-24 authority, the authority shall not be required to give bond for
67-25 appeal or bond for cost.
67-26 (e) The authority may overflow and inundate any public lands
68-1 and public property and may require the relocation of roads and
68-2 highways in the manner and to the extent permitted to districts
68-3 organized under general law pursuant to Section 59, Article XVI,
68-4 Texas Constitution.
68-5 (f) If the authority, in the exercise of the power of
68-6 eminent domain or power of relocation or any other power granted
68-7 under this chapter, makes necessary the relocation, raising,
68-8 rerouting, changing the grade, or altering the construction of any
68-9 highway, railroad, electric transmission line, or pipeline, all
68-10 necessary relocation, raising, rerouting, changing of grade, or
68-11 alteration of construction shall be accomplished at the sole
68-12 expense of the authority.
68-13 Sec. 252.015. CONTRACTS, GRANTS, AND LOANS. (a) The board
68-14 may negotiate and contract with the federal government or with any
68-15 of its agencies for grants, loans, and advancements from the United
68-16 States for the furtherance of any purpose set forth in this
68-17 chapter.
68-18 (b) The authority may receive and accept grants, loans, or
68-19 allotments from the United States and others for furtherance of any
68-20 of the purposes set forth in this chapter.
68-21 (c) An opinion from the attorney general as to whether a
68-22 grant, loan, or allotment has been received by the authority from
68-23 the United States or others shall be authority for the action of
68-24 any person charged with any duty contingent on such grant, loan, or
68-25 allotment.
68-26 Sec. 252.016. RULES AND REGULATIONS. The board may make all
69-1 necessary rules and regulations for the government and control of
69-2 the authority not inconsistent with the constitution and laws of
69-3 the state.
69-4 Sec. 252.017. USE OF BRAZOS RIVER AND TRIBUTARIES. In the
69-5 prosecution of the plans for which the authority has been created
69-6 for the storing, controlling, conserving, and distributing to
69-7 useful purposes of the storm waters, floodwaters, and
69-8 unappropriated flow waters of the Brazos River watershed and
69-9 developed groundwater from the Brazos River Basin for the use of
69-10 its customers, the authority may use the bed and banks of the
69-11 Brazos River and its tributary streams for any and all purposes
69-12 necessary to the accomplishment of the plans of the authority.
69-13 Sec. 252.018. DEFAULT PROCEDURES. (a) A resolution
69-14 authorizing the issuance of bonds and any indenture or agreement
69-15 entered into pursuant to the resolution may include provisions
69-16 regarding a default on the:
69-17 (1) payment of the interest on any bonds as the
69-18 interest becomes due and payable;
69-19 (2) payment of the principal of any bonds as they
69-20 become due and payable, whether at maturity, by call for
69-21 redemption, or otherwise; or
69-22 (3) performance of an agreement made with the
69-23 purchasers or successive holders of any bonds.
69-24 (b) If a default described by Subsection (a) has occurred
69-25 and has continued for a period, if any, prescribed by the
69-26 resolution authorizing the issuance of the bonds, the trustee under
70-1 the indenture or indentures entered into with respect to the bonds
70-2 authorized by the resolution, or, if there is no indenture, a
70-3 trustee appointed in the manner provided in the resolution by the
70-4 holders of 25 percent in aggregate principal amount of the bonds
70-5 authorized by the resolution and then outstanding may, and on the
70-6 written request of the holders of 25 percent in aggregate principal
70-7 amount of the bonds authorized by the resolution and then
70-8 outstanding shall, in the trustee's own name but for the equal and
70-9 proportionate benefit of the holders of all the bonds, and with or
70-10 without having possession of the bonds:
70-11 (1) by mandamus or other suit, action, or proceeding
70-12 at law or in equity, enforce all rights of the holders of the
70-13 bonds;
70-14 (2) bring suit on the bonds or the appurtenant
70-15 coupons;
70-16 (3) by action or suit in equity, require the board to
70-17 account as if it were the trustee of an express trust for the
70-18 bondholders;
70-19 (4) by action or suit in equity, enjoin any acts or
70-20 things which may be unlawful or in violation of the rights of the
70-21 holders of the bonds; or
70-22 (5) after such notice to the board as the resolution
70-23 may provide, declare the principal of all of the bonds due and
70-24 payable, and if all defaults have been made good, then with the
70-25 written consent of the holders of 25 percent in aggregate principal
70-26 amount of the bonds then outstanding, annul the declaration and its
71-1 consequences; provided, however, that the holders of more than a
71-2 majority in principal amount of the bonds authorized by the
71-3 resolution and then outstanding shall, by written instrument
71-4 delivered to the trustee, have the right to direct and control any
71-5 and all actions taken or to be taken by the trustee under this
71-6 section.
71-7 (c) A resolution, indenture, or agreement relating to bonds
71-8 may provide that in a suit, action, or proceeding under this
71-9 section, the trustee, whether or not all of the bonds have been
71-10 declared due and payable and with or without possession of any of
71-11 the bonds, shall be entitled as of right to the appointment of a
71-12 receiver who may enter and take possession of all or part of the
71-13 properties of the authority, operate and maintain the properties,
71-14 and set, collect, and receive rates and charges that will be
71-15 sufficient to provide revenues adequate to pay the items specified
71-16 in any resolution or resolutions authorizing any bonds and the
71-17 costs and disbursements of the suit, action, or proceeding and
71-18 apply such revenue in conformity with the provisions of this
71-19 chapter and the resolution authorizing the bonds.
71-20 (d) In a suit, action, or proceeding by a trustee or
71-21 receivers, if any, under this section, counsel fees and expenses of
71-22 the trustee and of the receiver or receivers, if any, shall
71-23 constitute taxable disbursements, and all costs and disbursements
71-24 allowed by the court shall be a first charge on any revenue pledged
71-25 to secure the payment of the bonds.
71-26 (e) Subject to the provisions of the constitution, the
72-1 courts of McLennan County shall have jurisdiction of any suit,
72-2 action, or proceeding under this section by any trustee on behalf
72-3 of the bondholders and of all proceedings involved in the suit,
72-4 action, or proceeding.
72-5 (f) In addition to the powers specifically provided by this
72-6 section, the trustee shall have and possess all powers necessary or
72-7 appropriate for the exercise of any of the powers specifically
72-8 provided or incident to the general representation of the
72-9 bondholders in the enforcement of their rights.
72-10 Sec. 252.019. LIMITED LIABILITY FOR AQUATIC HERBICIDE
72-11 APPLICATION. (a) In this section, "commercially licensed aquatic
72-12 herbicide applicator" means a person who holds a commercial
72-13 applicator license issued by the Department of Agriculture under
72-14 Chapter 76, Agriculture Code, that authorizes the application of
72-15 aquatic herbicides.
72-16 (b) Except as provided by Chapter 12, Parks and Wildlife
72-17 Code, an authority employee holding a noncommercial aquatic
72-18 herbicide applicator license or a commercially licensed aquatic
72-19 herbicide applicator working under contract with the authority is
72-20 not liable for damages in excess of $2 million for personal injury,
72-21 property damage, or death resulting from the application by the
72-22 applicator of aquatic herbicide in compliance with applicable law
72-23 and the terms of the license or permit.
72-24 CHAPTER 253. CANADIAN RIVER MUNICIPAL WATER AUTHORITY
72-25 Sec. 253.001. CREATION. (a) A conservation and reclamation
72-26 district to be known as the "Canadian River Municipal Water
73-1 Authority" is created. The authority is a governmental agency and
73-2 body politic and corporate.
73-3 (b) The authority is created under and is essential to
73-4 accomplish the purposes of Section 59, Article XVI, Texas
73-5 Constitution.
73-6 (c) The authority may exercise all rights, powers,
73-7 privileges, and functions as provided in this chapter and as may be
73-8 contemplated and implied by Section 59, Article XVI, Texas
73-9 Constitution, as well as those conferred by the general laws of the
73-10 state relating to water control and improvement districts except
73-11 where such laws are in conflict with the provisions of this
73-12 chapter.
73-13 Sec. 253.002. DEFINITIONS. In this chapter:
73-14 (1) "Authority" means the Canadian River Municipal
73-15 Water Authority.
73-16 (2) "Board" means the board of directors of the
73-17 authority.
73-18 (3) "Director" means a member of the board.
73-19 Sec. 253.003. TERRITORY. (a) The area of the authority
73-20 comprises all territory contained, as of May 27, 1953, within the
73-21 limits of the following cities:
73-22 (1) Amarillo, Potter and Randall counties;
73-23 (2) Borger, Hutchinson County;
73-24 (3) Brownfield, Terry County;
73-25 (4) Lamesa, Dawson County;
73-26 (5) Levelland, Hockley County;
74-1 (6) Lubbock, Lubbock County;
74-2 (7) O'Donnell, Lynn and Dawson counties;
74-3 (8) Pampa, Gray County;
74-4 (9) Plainview, Hale County;
74-5 (10) Slaton, Lubbock County; and
74-6 (11) 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) A director is entitled to receive fees of office and
76-26 reimbursements or a per diem for each day the director actually
77-1 spends performing the duties of a director, in accordance with
77-2 Section 49.060.
77-3 (e) The board shall elect from among its members a president
77-4 of the authority. The president is the chief executive officer of
77-5 the authority. The president presides at the meetings of the board
77-6 and performs all other functions incident to the office.
77-7 (f) The board shall elect from among its members a vice
77-8 president. The vice president acts as president in case of the
77-9 inability, absence, or failure of the president to act.
77-10 (g) The board shall elect a secretary, who may or may not be
77-11 chosen from among the members of the board. The secretary shall
77-12 ensure that all books and records of the authority are properly
77-13 kept.
77-14 Sec. 253.007. ADDITIONAL TERRITORY MAY BE ADDED. (a) Other
77-15 territory may be annexed to the authority as provided by this
77-16 section.
77-17 (b) A petition for annexation must:
77-18 (1) be signed by 50 or a majority of the qualified
77-19 voters of the territory to be annexed;
77-20 (2) be filed with the board; and
77-21 (3) describe the territory to be annexed by metes and
77-22 bounds or by other appropriate description, unless the territory is
77-23 the same as that of a city or town, in which event it shall be
77-24 sufficient to state that the territory to be annexed is the same as
77-25 that contained within the city or town.
77-26 (c) If the board finds that the petition is signed by the
78-1 required number of qualified persons and otherwise complies with
78-2 Subsection (b), that the annexation would be in the interest of the
78-3 territory to be annexed and the authority, and that the authority
78-4 will be able to render service to the territory, the board shall,
78-5 provided two-thirds of all the board members vote in favor, adopt a
78-6 resolution stating the conditions, if any, under which the
78-7 territory may be annexed to the authority and declaring the board's
78-8 intention to call an election in the territory for the purpose of
78-9 submitting the proposition of whether the territory shall be
78-10 annexed to the authority. The board shall set a time and place for
78-11 a hearing to be held on the question of whether the territory to be
78-12 annexed will benefit from the improvements, works, and facilities
78-13 then owned and operated by the authority.
78-14 (d) Railroad right-of-way, transmission lines, and other
78-15 property of telephone and telegraph and electric and gas utilities
78-16 that are not situated within the defined limits of an incorporated
78-17 city or town will not benefit from the improvements, works, and
78-18 facilities that the authority is authorized to construct. Railroad
78-19 right-of-way, transmission lines, or other property of electric and
78-20 gas utilities or right-of-way or other property and facilities of
78-21 telephone and telegraph utilities may not be annexed to the
78-22 authority unless the right-of-way, transmission lines, and other
78-23 property of electric and gas utilities are contained within the
78-24 limits of an incorporated city or town annexed to the authority.
78-25 (e) Notice of the adoption of a resolution as provided by
78-26 Subsection (c) stating the time and place of the hearing, addressed
79-1 to the citizens and owners of property in the territory to be
79-2 annexed, shall be published one time in a newspaper designated by
79-3 the board and having general circulation in the territory, at least
79-4 10 days before the date of the hearing. The notice must describe
79-5 the territory in the same manner as required or permitted for the
79-6 petition under Subsection (b). The secretary shall mail notice of
79-7 the hearing addressed to the mayor and governing body of each
79-8 constituent city at least 30 days before the date of the hearing.
79-9 (f) All interested persons who reside in the authority or in
79-10 the territory seeking annexation may appear at the hearing and
79-11 offer evidence for or against the intended annexation. The hearing
79-12 may proceed in the order and under the rules prescribed by the
79-13 board and may be recessed from time to time. If, at the conclusion
79-14 of the hearing, the board finds that all of the lands in the
79-15 territory to be annexed will benefit from the present or
79-16 contemplated improvements, works, or facilities of the authority,
79-17 the board shall adopt a resolution calling an election in the
79-18 territory to be annexed, stating the date and place or places for
79-19 holding the election and appointing a presiding judge for each
79-20 voting place. A presiding judge shall appoint the necessary
79-21 assistant judges and clerks to assist in holding the election.
79-22 (g) Notice of the election, stating the date and places for
79-23 holding the election, the proposition to be voted on, and the
79-24 conditions under which the territory may be annexed, or making
79-25 reference to the resolution of the board for that purpose, shall be
79-26 published one time in a newspaper published in the territory to be
80-1 annexed and designated by the board, at least 10 days before the
80-2 dates set for the election. If no newspaper is published in the
80-3 territory to be annexed, it is sufficient if notices are posted at
80-4 three public places in the territory and the notice is published
80-5 one time, at least 10 days before the date set for the election, in
80-6 a newspaper having general circulation in the territory.
80-7 (h) Only qualified electors who reside in the territory to
80-8 be annexed may vote in the election. Returns of the election shall
80-9 be made to the board.
80-10 (i) The board shall canvass the returns of the election and
80-11 adopt a resolution declaring the results. If the resolution shows
80-12 that a majority of the votes cast are in favor of annexation to the
80-13 authority, the annexation shall be incontestable except in the
80-14 manner and within the time for contesting elections under the
80-15 Election Code. A certified copy of the order shall be recorded in
80-16 the deed records of the county in which the territory is situated.
80-17 (j) In calling an election on the proposition for the
80-18 annexation of territory, the board may include as part of the same
80-19 proposition the assumption of the territory's part of any
80-20 tax-supported obligations of the authority then outstanding and in
80-21 force, and, in the case of bonds, those previously voted but not
80-22 yet sold, and the levy of ad valorem taxes on taxable property in
80-23 the territory on the same basis as taxes are levied in the
80-24 remainder of the authority for the payment of the tax obligations.
80-25 If the proposition carries by a majority vote, the effect shall be
80-26 the same as that resulting from the separate assumption election
81-1 provided for in Subsection (k).
81-2 (k) After territory is added to the authority, the board may
81-3 call an election over the entire authority for the purpose of
81-4 determining whether the entire authority as enlarged shall assume
81-5 the taxes and tax-supported obligations then outstanding and in
81-6 force, and, in the case of bonds, those previously voted but not
81-7 yet sold, and whether ad valorem taxes shall be levied on all
81-8 taxable property within the authority as enlarged for the payment
81-9 of the obligations, unless the proposition is favorably voted along
81-10 with the annexation election and becomes lawfully binding on the
81-11 territory annexed. Notice of the elections provided for in this
81-12 subsection and Subsection (j) shall be given and the election shall
81-13 be held in the same manner as elections for the issuance of bonds
81-14 as provided by this chapter.
81-15 Sec. 253.008. GENERAL MANAGER; EMPLOYEES. (a) The board
81-16 may employ and determine the compensation of a general manager for
81-17 the authority and may delegate to the general manager full power
81-18 and authority to manage and operate the affairs of the authority,
81-19 subject only to the orders of the board. The board may also employ
81-20 and determine the compensation of such other employees as it
81-21 considers appropriate to the proper conduct of the authority's
81-22 affairs, including engineers, technical experts, attorneys, and
81-23 assistants to the authority's officers, including the general
81-24 manager. The board may provide for removal of all employees.
81-25 (b) The general manager is the official treasurer of the
81-26 authority and has charge of its funds. The general manager shall
82-1 see that the funds are safely kept and shall account for the funds
82-2 to the board. The general manager shall give bond in an amount
82-3 required by the board, but in no event may the amount be less than
82-4 $50,000.
82-5 Sec. 253.009. DISBURSEMENT OF FUNDS. The funds of the
82-6 authority shall be disbursed only on checks, drafts, orders, or
82-7 other instruments signed by the persons authorized by the bylaws
82-8 and resolutions of the board.
82-9 Sec. 253.010. CITIES AND TOWNS MAY GIVE FINANCIAL AID TO
82-10 AUTHORITY. In consideration of the fact that the authority may be
82-11 incurring obligations and making expenditures, before funds are
82-12 available to pay the obligations and expenditures, for the purpose
82-13 of providing funds needed to procure necessary engineering surveys
82-14 and the collection and compilation of data relating to general
82-15 conditions influencing the determination of the character and
82-16 extent of the improvements, works, and facilities essential to the
82-17 accomplishment of any purpose of the authority, any city or town
82-18 within the authority may expend funds or use its services for such
82-19 engineering surveys and data. Any city or town within the
82-20 authority may appropriate money from its general funds or such
82-21 other funds as may be legally available for the purpose and may
82-22 donate and contribute the money to the authority, and the authority
82-23 may contract with any such city or town to repay any money advanced
82-24 as a loan to the authority.
82-25 Sec. 253.011. AUTHORITY OFFICE; RECORDS. An office shall be
82-26 established and maintained for the conduct of the authority's
83-1 business at a location determined by the board. The board shall
83-2 keep a true and full account of the proceedings of its meetings and
83-3 shall maintain its records in a secure manner.
83-4 Sec. 253.012. ACCOUNTS; AUDITS. (a) The board shall keep
83-5 complete and accurate accounts conforming to approved methods of
83-6 bookkeeping. The accounts and all contracts, documents, and
83-7 records of the authority shall be kept at the authority's principal
83-8 office and shall be open to public inspection at all reasonable
83-9 times.
83-10 (b) Once each year, the board shall have the books of
83-11 account and financial records of the authority for the preceding
83-12 year audited by an independent certified public accountant or firm
83-13 of certified public accountants. Copies of the written report of
83-14 the audit, certified to by the accountant or accountants, shall be
83-15 placed and kept on file at the office of the authority and shall be
83-16 open to public inspection at all reasonable times.
83-17 Sec. 253.013. AUTHORITY DEPOSITORY. (a) The board shall
83-18 designate one or more banks within the authority to serve as
83-19 depository for the funds of the authority. All funds of the
83-20 authority shall be deposited in the depository bank or banks except
83-21 funds pledged to pay bonds, which shall be deposited with the
83-22 trustee bank or paying agent named in the bond proceedings and to
83-23 the extent provided for in those proceedings. To the extent that
83-24 funds in the depository bank and the trustee bank are not insured
83-25 by the Federal Deposit Insurance Corporation, the funds shall be
83-26 secured in the manner provided by law for the security of county
84-1 funds.
84-2 (b) Before designating a depository bank or banks, the board
84-3 shall issue a notice stating the time and place at which the board
84-4 will meet to designate a depository bank or banks and inviting the
84-5 banks in the authority to submit applications to be designated
84-6 depositories. The notice must be published one time at least 10
84-7 days before the date of the board meeting in a newspaper or
84-8 newspapers published in the authority and specified by the board.
84-9 (c) At the time mentioned in the notice, the board shall
84-10 consider the applications and the management and condition of the
84-11 banks filing them and shall designate as depositories the bank or
84-12 banks that offer the most favorable terms and conditions for the
84-13 handling of the funds of the authority and that the board finds
84-14 have proper management and are in condition to warrant handling the
84-15 funds of the authority. The term of service for depositories shall
84-16 be prescribed by the board.
84-17 (d) If no acceptable applications are received by the time
84-18 stated in the notice, the board shall designate some bank or banks
84-19 within or outside the authority on terms and conditions it finds
84-20 advantageous to the authority.
84-21 Sec. 253.014. AUTHORITY POWERS. (a) In addition to those
84-22 otherwise provided by this chapter, the authority may exercise the
84-23 powers, rights, privileges, and functions provided by this section.
84-24 (b) The authority may store, control, conserve, protect,
84-25 distribute, and utilize, within or outside the authority or within
84-26 or outside the state, the storm waters and floodwaters and
85-1 unappropriated flow waters of the Canadian River and its
85-2 tributaries, and may prevent the escape of such waters without
85-3 first obtaining from them a maximum of public benefit, by the
85-4 construction of a dam or dams across that river and its tributaries
85-5 or otherwise, by complying with Chapter 11 and acting in such
85-6 manner as shall fully recognize and be in harmony with the
85-7 limitations of use of the waters of that river provided in the
85-8 Canadian River Compact in Chapter 43. The authority may also
85-9 provide, by purchase, contract, lease, or gift or in any other
85-10 lawful manner, and develop all facilities within or outside the
85-11 authority or within or outside the state considered necessary or
85-12 useful for the purpose of storing, controlling, conserving,
85-13 protecting, distributing, processing, and utilizing such surface
85-14 water and transporting it to the cities and areas comprising the
85-15 authority for municipal, domestic, industrial, and other useful
85-16 purposes permitted by law.
85-17 (c) The authority may acquire and develop within or outside
85-18 the authority or within or outside the state any other available
85-19 source of surface water, storm water, floodwater, groundwater, or
85-20 other water supply and may construct, acquire, and develop all
85-21 facilities deemed necessary or useful with respect to those
85-22 purposes.
85-23 (d) The authority may acquire, construct, develop, operate,
85-24 and maintain property of any kind, real, personal, or mixed, or any
85-25 interest in property, whether within or outside the authority or
85-26 within or outside the state, and may enter into contracts with any
86-1 person or legal entity and take actions necessary or convenient in
86-2 order to protect and preserve, and to prevent, eliminate, reduce,
86-3 or minimize the pollution, contamination, or deterioration of the
86-4 quality of, the water of the Canadian River or its tributaries or
86-5 the water of any other source of water supply to the authority and
86-6 in order to facilitate the use of the water for any lawful purpose.
86-7 (e) The authority may acquire, construct, develop, operate,
86-8 and maintain any facilities or systems for drilling, pumping,
86-9 capturing, reducing, intercepting, eliminating, impounding,
86-10 controlling, using, injecting, or otherwise capturing and disposing
86-11 of brine, brackish water, saltwater, saline water, or other water
86-12 contaminated by any type of chlorine, sodium, sulfates, or other
86-13 chemical condition or characteristic detrimental to the quality of
86-14 the water, whether the source of contaminated water is groundwater
86-15 or surface water, within or outside the authority or within or
86-16 outside the state and whether the facilities or systems are located
86-17 within or outside the authority or within or outside the state.
86-18 (f) The authority may acquire or utilize surface water or
86-19 groundwater rights and develop surface water or groundwater
86-20 resources in any manner in furtherance of the purposes described in
86-21 Subsections (d) and (e).
86-22 (g) The authority may declare any facilities or system
86-23 acquired or constructed under Subsections (b)-(f) to be a part of
86-24 the authority's water supply system.
86-25 (h) The authority may acquire, by purchase, construction,
86-26 lease, or gift or in any other lawful manner, and maintain, use,
87-1 and operate property of any kind, real, personal, or mixed, or any
87-2 interest in property, within or outside the boundaries of the
87-3 authority or within or outside the state, necessary or convenient
87-4 to the exercise of the powers, rights, privileges, and functions
87-5 granted by the authority under this chapter.
87-6 (i) The authority may acquire by condemnation property of
87-7 any kind, real, personal, or mixed, or any interest in property,
87-8 within or outside the boundaries of the authority, necessary or
87-9 convenient to the exercise of the powers, rights, privileges, and
87-10 functions of the authority, in the manner provided by Chapter 21,
87-11 Property Code. The amount and character of the property to be
87-12 acquired shall be determined by the board; provided, however, that:
87-13 (1) the authority may not condemn property that may be
87-14 owned by any other political subdivision, city, or town;
87-15 (2) as against persons, firms, and corporations (or
87-16 their receivers or trustees) who have the power of eminent domain,
87-17 the fee title may not be condemned and the authority may condemn
87-18 only an easement; and
87-19 (3) the authority may not condemn groundwater rights.
87-20 (j) The authority may sell or otherwise dispose of any
87-21 surplus property of any kind, real, personal, or mixed, or any
87-22 interest in property not necessary to the operation of the
87-23 authority, in accordance with Section 49.226.
87-24 (k) The authority may require the relocation of roads and
87-25 highways in the manner and to the extent permitted to districts
87-26 organized under Section 59, Article XVI, Texas Constitution. The
88-1 cost of relocation of any roads, highways, railroads, or telephone
88-2 or telegraph properties or facilities made necessary by this
88-3 chapter and any reasonable actual damage incurred in changing and
88-4 adjusting the lines and grades of railroads or highways or roads or
88-5 telephone or telegraph properties or facilities shall be paid by
88-6 the authority.
88-7 (l) The authority may make contracts with any person or
88-8 legal entity, including the United States, the state, a political
88-9 subdivision or body politic and corporate of the state, any other
88-10 state, a political subdivision or body politic and corporate within
88-11 any other state, and any interstate compact commission or similar
88-12 organization, necessary or convenient to the exercise of the
88-13 powers, rights, privileges, and functions of the authority and may
88-14 take all actions and execute all instruments necessary or
88-15 convenient to the exercise of the powers, rights, privileges, and
88-16 functions of the authority.
88-17 (m) The authority may make or cause to be made surveys and
88-18 engineering investigations for the information of the authority to
88-19 facilitate the accomplishment of the purposes for which the
88-20 authority is created.
88-21 (n) The authority may borrow money for its corporate
88-22 purposes and may borrow money and accept grants, gratuities, or
88-23 other support from the United States or the state or from any
88-24 corporation or agency created or designated by the United States or
88-25 the state and in connection with any such loan, grant, or other
88-26 support may enter into such arrangement with the United States or
89-1 the state, or such corporation or agency of either, as the
89-2 authority may deem advisable.
89-3 (o) The authority may make and issue negotiable bonds for
89-4 funds borrowed in the manner and to the extent provided in this
89-5 chapter and, with reference to the bonds or otherwise, may contract
89-6 in any manner it sees fit and as may be required by any law
89-7 pertaining to loans, grants, or other support received from the
89-8 United States or the state or from a corporation or agency of the
89-9 United States or the state.
89-10 (p) The authority may make such contracts in the issuance of
89-11 bonds as may be considered necessary or convenient to insure the
89-12 marketability of the bonds.
89-13 (q) The authority may sue or be sued in its corporate name.
89-14 (r) The authority may adopt, use, and alter a corporate
89-15 seal.
89-16 (s) The authority may make bylaws for the management and
89-17 regulation of its affairs.
89-18 (t) The authority may set and collect charges and rates for
89-19 water services furnished by it and may impose penalties for failure
89-20 to pay the charges and rates when due; provided, however, that the
89-21 charges, rates, and penalties shall be set only by unanimous vote
89-22 of the members of the board constituting a quorum and who are
89-23 present at a regular meeting.
89-24 (u) The authority may cooperate and enter into contracts
89-25 with cities, persons, firms, corporations, and public agencies for
89-26 the purpose of supplying and selling them surface water, storm
90-1 water, floodwater, groundwater, and other water for municipal,
90-2 domestic, industrial, and other useful purposes permitted by law;
90-3 provided, however, that cities and areas constituting the authority
90-4 shall be accorded priority in the allocation of the authority's
90-5 available surface water, storm water, floodwater, groundwater, and
90-6 other water, and the board shall prescribe rules to carry out this
90-7 provision. A contract described by this subsection may be on such
90-8 terms and for such time as the parties may agree, and the contract
90-9 may provide that it shall continue in effect until the authority's
90-10 bonds specified in the contract and refunding bonds issued in lieu
90-11 of the bonds are fully paid. The authority of each member or other
90-12 city to enter into a contract with the authority for the sale of
90-13 water or other services or for any other purpose within the powers,
90-14 rights, privileges, and functions of the authority is vested
90-15 exclusively in the governing body of each member or other city
90-16 notwithstanding any provision of a home-rule charter or any local
90-17 ordinance of the member or other city or of any other provision of
90-18 any other law placing any restriction, limitation, or requirement
90-19 on the authority of the governing body of a member or other city to
90-20 enter into any such contract. No provision of the home-rule
90-21 charter or of any other ordinance of a member or other city, and no
90-22 provision of any other law, in conflict with this subsection will
90-23 invalidate or impair, in whole or in part, the enforceability and
90-24 validity of a contract entered into by the authority with a member
90-25 or other city pursuant to the powers, rights, privileges, and
90-26 functions of the authority. If the authority contracts with the
91-1 United States government or any of its agencies for a source of
91-2 water supply or for the furnishing of any facilities necessary or
91-3 useful to the authority in carrying out its purposes, the contract
91-4 entered into under authority of this subsection may provide that it
91-5 shall continue until the authority has fully discharged all
91-6 obligations incurred by it under the terms of its contract with the
91-7 United States government or its agencies. The authority may also
91-8 purchase surface water, storm water, floodwater, groundwater, and
91-9 other water supply from any person, firm, corporation, or public
91-10 agency or from the United States government or any of its agencies.
91-11 (v) The authority may operate and maintain, with the consent
91-12 of the governing body of any city or town located within the
91-13 authority, any works, plants, or facilities of the city considered
91-14 necessary or convenient to the accomplishment of the purposes for
91-15 which the authority is created.
91-16 (w) The authority may levy, assess, and collect ad valorem
91-17 taxes to provide funds necessary to construct or acquire, maintain,
91-18 and operate improvements, works, plants, and facilities considered
91-19 essential and beneficial to the authority on a favorable majority
91-20 vote of the qualified electors voting at an election held for that
91-21 purpose within the authority and may also, when so authorized,
91-22 levy, assess, and collect taxes to provide funds adequate to defray
91-23 the cost of the maintenance, operation, and administration of the
91-24 authority. Elections for the voting of such taxes shall be ordered
91-25 by the board and shall be held and conducted as provided by this
91-26 chapter for elections for the issuance of bonds and the levy of
92-1 taxes in support of the bonds. When so levied such taxes, as well
92-2 as taxes levied in support of bond indebtedness as provided by this
92-3 chapter, constitute a lien on the property against which such taxes
92-4 are levied and assessed, and limitations shall not bar the
92-5 collection of the taxes and enforcement of such liens.
92-6 (x)(1) The authority may:
92-7 (A) develop, generate, transmit, or distribute
92-8 water power and electric energy within the authority's service area
92-9 for its own use;
92-10 (B) purchase electric energy from any available
92-11 source for use at a facility the authority owns, operates, or
92-12 maintains within the authority's service area irrespective of
92-13 whether customer choice as defined by Section 31.002(4), Utilities
92-14 Code, is offered in the area in which the authority's facility is
92-15 located or whether the power region in the area in which the
92-16 authority's facility is located is subject to unbundling under
92-17 Sections 39.051 and 39.403, Utilities Code;
92-18 (C) acquire, install, construct, finance,
92-19 operate, make an addition to, own, or operate an electric energy
92-20 generating, transmission, or distribution facility or enter into an
92-21 agreement to jointly do so with another person; or
92-22 (D) sell or otherwise dispose of any of the
92-23 authority's interest in a jointly owned facility described by
92-24 Paragraph (C).
92-25 (2) This subsection does not affect the applicability
92-26 of Title 2, Utilities Code, to the authority or to actions of the
93-1 authority.
93-2 (y) The authority may do any and all acts and things
93-3 necessary or convenient to the exercise of the powers, rights,
93-4 privileges, or functions conferred on or permitted the authority by
93-5 any other law.
93-6 Sec. 253.015. CONSTRUCTION CONTRACTS; BIDDING. A contract
93-7 requiring an expenditure of more than $25,000 shall not be made
93-8 until after publication of a notice to bidders once each week for
93-9 two weeks before the contract is awarded. The notice shall be
93-10 sufficient if it states the time and place when and where the bids
93-11 will be opened, states the general nature of the work to be done or
93-12 the material, equipment, or supplies to be purchased, and states
93-13 when and on what terms copies of the plans and specifications may
93-14 be obtained. The publication shall be in a newspaper published in
93-15 the authority designated by the board.
93-16 Sec. 253.016. ISSUANCE OF BONDS. (a) For the purpose of
93-17 providing a source or sources of water supply for cities and other
93-18 users for municipal, domestic, industrial, and other useful
93-19 purposes permitted by law, as authorized by this chapter, and for
93-20 the purpose of carrying out any other power or authority conferred
93-21 by this chapter, including the powers conferred by Section 253.014,
93-22 the authority may issue negotiable bonds to be payable from such
93-23 net operating income and revenues or from such taxes, or from both
93-24 such revenues and taxes, of the authority as are pledged by
93-25 resolution of the board. In addition to the authority to issue
93-26 bonds for such purposes, the authority may also contract in any
94-1 other lawful manner and may prescribe the method of payment of any
94-2 such contract either by the use of net revenues, taxes, or both.
94-3 (b) Bonds must be authorized by resolution of the board,
94-4 bear the date or dates, mature at the time or times, and bear
94-5 interest at the rate or rates the board determines. The bonds must
94-6 be signed by the president and attested by the secretary and must
94-7 bear the seal of the authority. All bonds may be sold at a price
94-8 and under terms the board determines to be the most advantageous
94-9 and reasonably obtainable. Within the discretion of the board,
94-10 bonds may be made callable and subject to redemption before their
94-11 maturity at the times and prices prescribed in the authorizing
94-12 resolution. Interest on all bonds shall be payable annually or
94-13 semiannually within the discretion of the board. Bonds may be
94-14 issued in one or more than one series and from time to time as
94-15 required in carrying out the purpose of this chapter. The bonds
94-16 must be in such form, either coupon or registered, carry such
94-17 registration privileges as to principal only or as to both
94-18 principal and interest and as to exchange of coupon bonds for
94-19 registered bonds or vice versa and exchange of bonds of one
94-20 denomination for bonds of other denominations, and be payable at
94-21 such place or places within or outside the state as the board
94-22 determines and prescribes in the resolution or resolutions
94-23 authorizing the bonds.
94-24 (c) Bonds may be secured by a pledge of all or part of the
94-25 net revenues of the authority, of the net revenues of one or more
94-26 contracts made before or after the bonds are issued, or of other
95-1 revenues, in such manner as may be specified by resolution of the
95-2 board. A pledge may reserve the right, under conditions specified
95-3 in the pledge, to issue additional bonds which will be on a parity
95-4 with or subordinate to the bonds being issued. In this chapter,
95-5 "net revenues" means the gross revenues of the authority less the
95-6 amount necessary to pay the cost of maintaining and operating the
95-7 authority and its properties.
95-8 (d) If bonds are issued payable wholly or partially from ad
95-9 valorem taxes, the board shall levy a tax sufficient to pay the
95-10 bonds and the interest on the bonds as the bonds and interest
95-11 become due, but the rate of the tax for any year may be set after
95-12 giving consideration to the money received from the pledged
95-13 revenues that may be available for the payment of principal and
95-14 interest to the extent and in the manner permitted by the
95-15 resolution authorizing the issuance of the bonds.
95-16 (e) If bonds or any other contract payable wholly or
95-17 partially from revenues are issued or entered into, the board shall
95-18 set, by contract with all cities, persons, firms, corporations, or
95-19 public agencies that may contract with it for a water supply or
95-20 water facilities, rates of compensation for water sold and services
95-21 rendered by the authority sufficient to pay the expenses of
95-22 operating and maintaining the authority and its facilities and to
95-23 pay all such obligations incurred by it as they mature, including
95-24 such reserve and other funds as may be provided for the bonds or
95-25 other contracts under their terms and as may be provided in the
95-26 resolution pertaining to the bonds or contracts.
96-1 (f) From the proceeds of the sale of bonds, the authority
96-2 may set aside an amount for the payment of interest expected to
96-3 accrue during construction and for a reserve interest and sinking
96-4 fund, which provisions shall be made in the resolution authorizing
96-5 the bonds. Proceeds from the sale of bonds may also be used for
96-6 the payment of all expenses necessarily incurred in accomplishing
96-7 the purposes for which the authority is created, including the
96-8 expenses of issuing and selling the bonds. Pending the use of bond
96-9 proceeds for the purpose for which the bonds were issued, the
96-10 board, in its discretion, may invest the proceeds as authorized by
96-11 the Public Funds Investment Act, Chapter 2256, Government Code.
96-12 (g) In the event of a default or a threatened default in the
96-13 payment of the principal of or interest on bonds payable wholly or
96-14 partially from revenues, any court of competent jurisdiction may,
96-15 on petition of the holders of 25 percent of the outstanding bonds
96-16 of the issue in default or threatened with default, appoint a
96-17 receiver with authority to collect and receive all income of the
96-18 authority except taxes, employ and discharge agents and employees
96-19 of the authority, take charge of the authority's funds on hand
96-20 (except funds received from taxes, unless commingled), and manage
96-21 the proprietary affairs of the authority without consent or
96-22 hindrance by the board. The receiver may also be authorized to
96-23 sell or make contracts for the sale of water or renew such
96-24 contracts with the approval of the court appointing the receiver.
96-25 (h) Bonds issued by the authority pursuant to the provisions
96-26 of this chapter are negotiable instruments under the laws of this
97-1 state.
97-2 (i) Before bonds are sold by the authority, a certified copy
97-3 of the proceedings for the issuance of the bonds, including the
97-4 form of the bonds, together with any other information the attorney
97-5 general may require, shall be submitted to the attorney general.
97-6 If the attorney general finds that the bonds have been issued in
97-7 accordance with law, the attorney general shall approve the bonds
97-8 and execute a certificate of approval, which shall be filed in the
97-9 office of the comptroller and be recorded in a record kept for that
97-10 purpose. A bond may not be issued until the bond has been
97-11 registered by the comptroller, who shall register the bond if the
97-12 attorney general has filed a certificate approving the bonds and
97-13 the proceedings for the issuance of the bonds with the comptroller
97-14 as provided in this section. If bonds or the proceedings
97-15 pertaining to the bonds recite that they are secured by a pledge of
97-16 the proceeds of a contract previously made between the authority
97-17 and a city, district, or other user, a copy of the contract and the
97-18 proceedings of the contracting parties shall be submitted to the
97-19 attorney general along with the bond record, and if the bonds have
97-20 been duly authorized and the contracts made in compliance with law,
97-21 the attorney general shall approve the bonds and contracts and the
97-22 bonds shall be registered by the comptroller. After approval by
97-23 the attorney general, the bonds and contracts are valid and binding
97-24 and are incontestable for any cause.
97-25 (j) Whenever the authority has issued bonds, including
97-26 interim or temporary bonds, or has contracted with the United
98-1 States or with the state, or a corporation or agency of either, in
98-2 connection with the financing of its works or facilities, the
98-3 authority may validate the bonds or contracts by suit as provided
98-4 by Sections 51.423-51.431.
98-5 (k) Pending the issuance of definitive bonds, the authority
98-6 may issue and deliver interim or temporary bonds. The interim or
98-7 temporary bonds thus issued may be taken up with the proceeds of
98-8 the definitive bonds, or the definitive bonds may be issued and
98-9 delivered in exchange for and in substitution of the interim or
98-10 temporary bonds. After an exchange and substitution, the authority
98-11 shall file proper certificates with the comptroller as to the
98-12 exchange, substitution, and cancellation. The certificates shall
98-13 be recorded by the comptroller.
98-14 (l) The board may issue refunding bonds for the purpose of
98-15 refunding any outstanding bonds authorized by this chapter and
98-16 interest on the bonds without the necessity of an election.
98-17 Refunding bonds may be issued to refund more than one series of
98-18 outstanding bonds, and in the case of bonds secured in whole or in
98-19 part by net revenues, the authority may combine the pledges for the
98-20 outstanding bonds for the security of the refunding bonds and may
98-21 secure the refunding bonds by other or additional revenues. The
98-22 provisions of this chapter with reference to the issuance of other
98-23 bonds and their approval by the attorney general and the rights and
98-24 remedies of the holders shall be applicable to refunding bonds.
98-25 Refunding bonds shall be registered by the comptroller on surrender
98-26 and cancellation of the bonds to be refunded; but in lieu of this
99-1 procedure, the resolution authorizing the issuance of the refunding
99-2 bonds may provide that the refunding bonds shall be sold and the
99-3 proceeds deposited in the bank where the original bonds are
99-4 payable, in which case the refunding bonds may be issued in an
99-5 amount sufficient to pay the interest on the original bonds to
99-6 their option date or maturity date and the comptroller shall
99-7 register the refunding bonds without concurrent surrender and
99-8 cancellation of the original bonds.
99-9 (m) Bonds, including refunding bonds, authorized by this
99-10 chapter that are not payable wholly from ad valorem taxes may be
99-11 additionally secured by a trust indenture under which the trustee
99-12 may be a bank with trust powers that is situated either within or
99-13 outside the state. The trust indenture or mortgage may include
99-14 provisions for a lien on all or part of the physical properties of
99-15 the authority and franchises, easements, water rights and
99-16 appropriation permits, leases and contracts, and all rights
99-17 appurtenant to such properties, vesting in the trustee power to
99-18 sell the properties for payment of the indebtedness thus secured
99-19 and power to operate the properties and all other powers and
99-20 authority for the further security of the bonds. The trust
99-21 indenture, regardless of the existence of a deed of trust lien, may
99-22 contain provisions prescribed by the board for the security of the
99-23 bonds and the preservation of the trust estate, including provision
99-24 for amendment or modification thereof and the issuance of bonds to
99-25 replace lost or mutilated bonds secured by the trust indenture. A
99-26 purchaser under a sale under a deed of trust lien, where one is
100-1 given, shall be the owner of the properties, facilities, and rights
100-2 so purchased and shall have the right to maintain and operate the
100-3 properties, facilities, and rights during the period prescribed by
100-4 the trust indenture.
100-5 (n) Bonds supported in whole or in part by taxes to be
100-6 levied by the authority, except refunding bonds related to the
100-7 bonds, may not be issued unless the bonds are authorized by an
100-8 election at which only the qualified voters who reside in the
100-9 authority may vote and unless a majority of the votes cast at the
100-10 authoritywide election is in favor of the issuance of the bonds.
100-11 (o) A bond election for the issuance of bonds supported in
100-12 whole or in part by taxes may be called by the board without a
100-13 petition. The resolution calling the election shall specify the
100-14 time and location of the election, the purpose for which the bonds
100-15 are to be issued, the maximum amount of the bonds, the maximum
100-16 maturity of the bonds, the maximum interest rate, the form of the
100-17 ballot, and the presiding judge for each voting place. The
100-18 presiding judge serving at each voting place shall appoint the
100-19 necessary assistant judges and clerks for holding the election.
100-20 Notice of the election must be given by publishing a substantial
100-21 copy of the resolution calling the election in a newspaper or
100-22 newspapers of general circulation in each city contained in the
100-23 authority once a week for two consecutive weeks. The first
100-24 publication must be at least 21 days before the date of the
100-25 election. The returns of the election shall be made to and
100-26 canvassed by the board. The Election Code applies to elections
101-1 held under this section, except as otherwise provided in this
101-2 chapter.
101-3 (p) Bonds of the authority supported by revenues or sources
101-4 other than taxes to be levied by the authority may be issued as
101-5 otherwise provided by this chapter without holding an election to
101-6 approve the bonds.
101-7 (q) The authority may issue bond anticipation notes for any
101-8 purpose for which bonds of the authority may be authorized or for
101-9 the purpose of refunding previously issued bond anticipation notes.
101-10 The authority may covenant with the purchasers of the bond
101-11 anticipation notes that the authority will use the proceeds of sale
101-12 of any bonds authorized by the authority for the purpose of
101-13 refunding the bond anticipation notes, in which case the authority
101-14 will be required to use the proceeds received from sale of the
101-15 bonds to pay principal, interest, or redemption price on the bond
101-16 anticipation notes. To the extent applicable, the terms and
101-17 conditions of this chapter relating to bonds of the authority apply
101-18 to the bond anticipation notes.
101-19 (r) In addition to the power to issue bonds as provided by
101-20 this chapter, the authority may issue bonds for any purpose and in
101-21 any manner authorized by general law for water control and
101-22 improvement districts or may issue bonds in any other manner
101-23 authorized by law. Section 49.181 does not apply to the issuance
101-24 of bonds or to the construction projects funded by bonds.
101-25 Sec. 253.017. NO EXCLUSION OF LANDS OR OTHER PROPERTY
101-26 REQUIRED. The provisions of Subchapter J, Chapter 49, or other
102-1 statutes relating to the exclusion of lands or other property shall
102-2 not be applicable to the authority.
102-3 Sec. 253.018. CONTRACTS WITH UNITED STATES OR ITS AGENCIES;
102-4 ELECTIONS. (a) The authority may contract with the United States
102-5 government and any of its agencies or contract under the federal
102-6 reclamation laws for the construction, operation, and maintenance
102-7 of any work or facility by which water may be supplied and
102-8 distributed to the authority under any act of Congress providing or
102-9 permitting such contract, and for the accomplishment of all other
102-10 powers and purposes of the authority including those described in
102-11 Section 253.014, and the authority shall further have all the
102-12 rights, powers, privileges, and authority granted under the general
102-13 laws of the state in that respect.
102-14 (b) A contract entered into pursuant to Subsection (a) may
102-15 provide that on the repayment of all amounts to become due under
102-16 the contract, title to all facilities constructed pursuant to the
102-17 contract, including any dam or reservoir, shall pass to and be
102-18 lodged in the authority, or the contract may provide that the
102-19 authority shall be vested with absolute control over the release
102-20 and use of waters stored in the facilities and belonging to the
102-21 authority as long as the authority remains current in the payment
102-22 of the amounts due the United States government or its agency under
102-23 the contract. In all events, title to its water rights shall
102-24 continue to remain in the authority.
102-25 (c) If a contract is proposed to be made whereby the
102-26 authority will become obligated to make payments wholly or
103-1 partially from ad valorem taxes to be levied by the authority, the
103-2 contract shall not be entered into unless authorized by an election
103-3 at which only the qualified voters who reside in the authority may
103-4 vote and a majority of the votes cast at the election is in favor
103-5 of the execution of the contract. All methods prescribed in
103-6 Sections 253.016 (n) and (o) relating to the voting of bonds are
103-7 applicable to the voting of contracts if an election is required
103-8 under this section.
103-9 (d) If the authority enters into a contract with the United
103-10 States government or any of its agencies as provided in this
103-11 section, no subsequent alteration in the organization of the
103-12 authority shall be effected and no proceedings for the exclusion of
103-13 any area of the authority shall be undertaken under the provisions
103-14 of any law unless such alterations and exclusions have first
103-15 received the approval of the United States government or its
103-16 contracting agency.
103-17 Sec. 253.019. WATER PERMITS. The authority is authorized to
103-18 acquire and own water permits on compliance with the provisions of
103-19 the general law pertaining to such permits as provided by Chapter
103-20 11.
103-21 Sec. 253.020. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
103-22 DEPOSITS. Bonds of the authority are legal and authorized
103-23 investments for banks, savings banks, trust companies, building and
103-24 loan associations, savings and loan associations, insurance
103-25 companies, fiduciaries, trustees, and guardians, for the sinking
103-26 funds of cities, towns, villages, counties, school districts, or
104-1 other political subdivisions of the state, and for all public funds
104-2 of the state or its agencies including the permanent school fund.
104-3 Such bonds are eligible to secure the deposit of all public funds
104-4 of the state and all public funds of cities, towns, villages,
104-5 counties, school districts, or other political corporations or
104-6 subdivisions of the state, and such bonds shall be lawful and
104-7 sufficient security for such deposits to the extent of their value
104-8 when accompanied by all unmatured coupons.
104-9 Sec. 253.021. BONDS EXEMPT FROM TAXATION. The
104-10 accomplishment of the purposes stated in this chapter are for the
104-11 benefit of the people of this state and for the improvement of
104-12 their properties and industry. The authority, in carrying out the
104-13 purposes of this chapter, will be performing an essential public
104-14 function under the constitution and shall not be required to pay
104-15 any tax or assessment on the project or any part of the project,
104-16 and the bonds or other obligations issued under this chapter and
104-17 the transfer of and income from the bonds, including profits on the
104-18 sale of the bonds, shall at all times be free from taxation by the
104-19 state or by any municipal corporation, county, or other political
104-20 subdivision or taxing district of the state.
104-21 Sec. 253.022. TAXATION. Before the issuance of authority
104-22 bonds or the execution of a contract payable wholly or partially
104-23 from ad valorem taxes, the board shall appoint a tax assessor and
104-24 collector and a board of equalization and shall cause taxes to be
104-25 assessed, valuations to be equalized, and tax rolls to be prepared.
104-26 The board may also appoint deputies to assist the tax assessor and
105-1 collector in the manner and for the period it may order. Where
105-2 applicable and not in conflict with this section, the general laws
105-3 relating to water control and improvement districts with reference
105-4 to tax assessors and collectors, boards of equalization, tax rolls,
105-5 and the levy and collection of taxes and delinquent taxes shall be
105-6 applicable to the authority, except that the board of equalization
105-7 to be appointed each year by the board shall consist of one member
105-8 residing in each city then contained in the authority. All taxes
105-9 to be levied, assessed, and collected by the authority shall be on
105-10 an ad valorem basis and all provisions of the general laws
105-11 pertaining to the levy, assessment, and collection of ad valorem
105-12 taxes by water control and improvement districts, including the
105-13 enforcement of such provisions and the processes for the collection
105-14 of delinquent taxes provided in such provisions, shall be
105-15 applicable to the authority.
105-16 Sec. 253.023. ADOPTION OF RULES AND REGULATIONS. The board
105-17 may adopt and promulgate reasonable rules and regulations to
105-18 secure, maintain, and preserve the sanitary condition of all water
105-19 in and to flow into any reservoir owned by the authority or which
105-20 it may control, by contract or otherwise, to prevent the waste or
105-21 unauthorized use of water, and to regulate residence, hunting,
105-22 fishing, boating, and camping, and all recreational and business
105-23 privileges, along, around, or on any such reservoir or any body of
105-24 land or easement owned or controlled by the authority.
105-25 Sec. 253.024. RECREATIONAL FACILITIES. The authority may
105-26 establish or otherwise provide for public parks and recreation
106-1 facilities and may acquire for such purposes land adjacent to any
106-2 reservoir in which the authority owns water storage rights;
106-3 provided, however, that no money received from taxation or bonds
106-4 payable wholly or partially from taxation shall be used for such
106-5 purposes. The authority may also contract for the lease of lands
106-6 acquired by it for recreation or concession purposes under terms as
106-7 the board may determine.
106-8 Sec. 253.025. VOTING PLACES. For the purposes of all
106-9 authority elections to be conducted under the provisions of this
106-10 chapter, the voting places shall conform as nearly as conveniently
106-11 possible with those customarily designated for election purposes in
106-12 the various cities or areas comprising the authority.
106-13 Sec. 253.026. TERRITORY DETACHED FROM ANY OTHER DISTRICT OR
106-14 AUTHORITY. The authority, with its granted powers, shall take
106-15 precedence over and stand in lieu of any other water district
106-16 previously organized over the same territory or organized and
106-17 created in any manner over the same territory under any general or
106-18 special law, and such territory under the provisions of this
106-19 chapter is declared to be detached from all other districts or
106-20 authorities established under Section 59, Article XVI, Texas
106-21 Constitution, including particularly the Panhandle Water
106-22 Conservation Authority, established by Chapter 256, Acts of the
106-23 45th Legislature, Regular Session, 1937. The authority may
106-24 coordinate its plans with any conservation, reclamation, or other
106-25 district previously created, with powers provided in Section 59,
106-26 Article XVI, Texas Constitution, and may enter into joint
107-1 undertaking for the purposes for which the districts are created;
107-2 provided, however, that all such acts must be approved by a
107-3 majority of the board of directors of each district or authority
107-4 involved.
107-5 Sec. 253.027. BONDS OF OFFICERS AND EMPLOYEES. All bonds
107-6 required to be given by officers and employees of the authority
107-7 shall be executed by a surety company authorized to do business in
107-8 the state. The authority may pay the premiums on the bonds.
107-9 Sec. 253.028. CONFLICTS. (a) All powers conferred by the
107-10 general laws of the state pertaining to water control and
107-11 improvement districts shall be applicable to the authority to the
107-12 extent that those laws are not in conflict with the provisions of
107-13 this chapter.
107-14 (b) Nothing in this chapter shall be construed to violate
107-15 any provision of the federal or state constitutions, and all acts
107-16 done under this chapter shall be done in such a manner as will
107-17 conform to the provisions of those constitutions, whether expressly
107-18 provided in this chapter or not. If any procedure under this
107-19 chapter is held by a court to be violative of either constitution,
107-20 the authority shall have the power by resolution to provide an
107-21 alternative procedure conformable with the constitutions.
107-22 Sec. 253.029. COMPLIANCE WITH CANADIAN RIVER COMPACT.
107-23 Nothing in this chapter shall be construed in any manner that might
107-24 preclude full compliance with the provisions of the Canadian River
107-25 Compact, entered into and signed by the states of Texas, New
107-26 Mexico, and Oklahoma and the federal government on December 6,
108-1 1950. All actions and rights existing under the authority of this
108-2 chapter shall be controlled to the extent necessary to afford full
108-3 compliance with the terms of the compact.
108-4 Sec. 253.030. BOND NOT REQUIRED. The authority shall not be
108-5 required to give a cost or supersedeas bond or to pay a cost
108-6 deposit on any appeal from the judgment of any court of this state.
108-7 Sec. 253.031. The provisions of Chapter 572, Government
108-8 Code, relating to personal financial disclosure, standards of
108-9 conduct, and conflicts of interest, shall not apply to the
108-10 authority.
108-11 CHAPTER 254. CENTRAL COLORADO RIVER AUTHORITY
108-12 Sec. 254.001. CREATION. (a) A conservation and reclamation
108-13 district to be known as the "Central Colorado River Authority" is
108-14 created. The authority is a governmental agency and a body politic
108-15 and corporate.
108-16 (b) The authority is created under and is essential to
108-17 accomplish the purposes of Section 59, Article XVI, Texas
108-18 Constitution.
108-19 (c) The authority may exercise the rights, privileges, and
108-20 functions provided by this chapter including, to the extent
108-21 authorized by this chapter, the control, storing, preservation, and
108-22 distribution of the waters of the Central Colorado River and its
108-23 tributaries for domestic, municipal, flood control, irrigation,
108-24 power, and other useful purposes; the reclamation and irrigation of
108-25 arid, semiarid, and other lands needing irrigation; and the
108-26 conservation and development of the forests, water, and
109-1 hydroelectric power of the state.
109-2 (d) Nothing in this chapter or in any other law shall be
109-3 construed as authorizing the authority to levy or collect taxes or
109-4 assessments, or to create any indebtedness payable out of taxes or
109-5 assessments, or in any way to pledge the credit of the state.
109-6 Sec. 254.002. DEFINITIONS. In this chapter:
109-7 (1) "Authority" means the Central Colorado River
109-8 Authority.
109-9 (2) "Board" means the board of directors of the
109-10 authority.
109-11 (3) "Director" means a member of the board.
109-12 Sec. 254.003. TERRITORY. The authority consists of all the
109-13 territory included within the boundaries of Coleman County.
109-14 Sec. 254.004. POWERS AND DUTIES. (a) Except as expressly
109-15 limited by this chapter, the authority may exercise all the powers,
109-16 rights, privileges, and functions conferred by general law on
109-17 districts created under Section 59, Article XVI, Texas
109-18 Constitution, and as provided by this section.
109-19 (b) The authority may control, store, and preserve, within
109-20 the boundaries of the authority, the waters of the Colorado River
109-21 and its tributaries for any useful purpose and may use, distribute,
109-22 and sell those waters within the boundaries of the authority for
109-23 any useful purpose.
109-24 (c) The authority may develop and generate waterpower and
109-25 electric energy within the boundaries of the authority and may
109-26 distribute and sell waterpower and electric energy within or
110-1 outside the boundaries of the authority; but such use shall be
110-2 subordinate and inferior to all requirements for domestic,
110-3 municipal, and irrigation purposes.
110-4 (d) The authority may prevent or aid in the prevention of
110-5 damage to person or property from the waters of the Colorado River
110-6 and its tributaries.
110-7 (e) The authority may forest and reforest and aid in the
110-8 foresting and reforesting of the watershed area of the Colorado
110-9 River and its tributaries and may prevent and aid in the prevention
110-10 of soil erosion and floods within the watershed area.
110-11 (f) The authority may acquire by purchase, lease, or gift or
110-12 in any other manner, other than by condemnation, and may maintain,
110-13 use, and operate property of any kind, real, personal, or mixed, or
110-14 any interest in property, within or outside the boundaries of the
110-15 authority, necessary or convenient to the exercise of the powers,
110-16 rights, privileges, and functions conferred on the authority by
110-17 this chapter.
110-18 (g) The authority may acquire by condemnation property of
110-19 any kind, real, personal, or mixed, or any interest in property,
110-20 within the boundaries of the authority necessary or convenient to
110-21 the exercise of the powers, rights, privileges, and functions
110-22 conferred on the authority by this chapter. The authority may
110-23 condemn property in the manner provided by general law with respect
110-24 to condemnation or, at the option of the authority, in the manner
110-25 provided by the statutes relating to condemnation by districts
110-26 organized under general law pursuant to Section 59, Article XVI,
111-1 Texas Constitution.
111-2 (h) The authority may, subject to the provisions of this
111-3 chapter, sell or otherwise dispose of property of any kind, real,
111-4 personal, or mixed, or any interest in property, that is not
111-5 necessary to carrying on the business of the authority.
111-6 (i) The authority may overflow and inundate any public lands
111-7 and public property and may require the relocation of roads and
111-8 highways in the manner and to the extent permitted to districts
111-9 organized under general law pursuant to Section 59, Article XVI,
111-10 Texas Constitution.
111-11 (j) The authority may construct, extend, improve, maintain,
111-12 and reconstruct, or cause to be constructed, extended, improved,
111-13 maintained, and reconstructed, and may use and operate facilities
111-14 of any kind necessary or convenient to the exercise of its powers,
111-15 rights, privileges, and functions.
111-16 (k) The authority may sue and be sued in its corporate name.
111-17 (l) The authority may make bylaws for the management and
111-18 regulation of its affairs.
111-19 (m) The authority may adopt, use, and alter a corporate
111-20 seal.
111-21 (n) The authority may appoint officers, agents, and
111-22 employees and may prescribe their duties and fix their
111-23 compensation.
111-24 (o) The authority may make contracts and execute instruments
111-25 necessary or convenient to the exercise of the powers, rights,
111-26 privileges, and functions conferred on the authority by this
112-1 chapter.
112-2 (p) The authority may borrow money for its corporate
112-3 purposes and may borrow money and accept grants from the United
112-4 States or a corporation or agency created or designated by the
112-5 United States and, in connection with such loan or grant, may enter
112-6 into such agreements as the United States or such corporation or
112-7 agency may require. The authority may make and issue negotiable
112-8 bonds for funds borrowed in the manner and to the extent provided
112-9 by Section 254.012. Nothing in this chapter shall be construed to
112-10 authorize the issuance of any bonds, notes, or other evidences of
112-11 indebtedness of the authority except as specifically provided by
112-12 this chapter, and no issuance of bonds, notes, or other evidences
112-13 of indebtedness of the authority except as specifically provided by
112-14 this chapter shall ever be authorized except by an act of the
112-15 legislature.
112-16 (q) The authority may do any and all other acts or things
112-17 necessary or convenient to the exercise of the powers, rights,
112-18 privileges, or functions conferred on the authority by this chapter
112-19 or any other act or law.
112-20 Sec. 254.005. LIMITATIONS ON AUTHORITY. (a) The authority
112-21 may not be permitted to use for irrigation purposes any water under
112-22 any law or permits issued or held, owned, or enjoyed by the
112-23 authority or which have been acquired from the Colorado River
112-24 Corporation or any other company or person unless such use is
112-25 expressly authorized by permits granted to the authority by the
112-26 commission under authority of law. In considering applications by
113-1 the authority, the commission shall at all times consider the needs
113-2 of the people living within and on the lands lying within the
113-3 watershed of the Colorado River and its tributaries above the
113-4 authority; provided, however, that nothing in this subsection shall
113-5 prevent the authority from selling, for irrigation purposes within
113-6 the boundaries of the authority, any water impounded by it under
113-7 authority of law.
113-8 (b) Notwithstanding any rights or permits issued by the
113-9 commission or its predecessor agency that are held or acquired by
113-10 the authority, the impounding and use of the floodwaters of the
113-11 Colorado River or its tributaries for the generation of
113-12 hydroelectric power by the authority or anyone who may succeed to
113-13 the rights and privileges conferred on the authority by this
113-14 chapter are subject to the rights of a person, municipal
113-15 corporation, or body politic that is impounding or putting to
113-16 beneficial use such waters for the purposes set forth in Section
113-17 11.024(1)-(3) if the person, municipal corporation, or body
113-18 politic:
113-19 (1) has received a permit for the use from the
113-20 commission; or
113-21 (2) is permitted by law to impound water for the
113-22 purposes described by this subsection.
113-23 (c) Nothing in this chapter shall be construed to subject to
113-24 condemnation by the authority, or by any successors of the
113-25 authority or anyone who may succeed to the rights and privileges
113-26 conferred on the authority by this chapter, any waters:
114-1 (1) impounded or to be impounded within or outside the
114-2 authority under any law authorizing water to be impounded or under
114-3 any permits granted to a municipal corporation or body politic; or
114-4 (2) impounded or permitted to be impounded or used
114-5 outside the authority under permits granted to any person.
114-6 (d) Nothing in this chapter shall be construed as depriving
114-7 any person or municipality of the right to impound the waters of
114-8 the Colorado River or its tributaries for domestic or municipal
114-9 purposes or as repealing any law granting such rights to persons
114-10 and municipalities.
114-11 (e) All rights of the authority to impound, use, and sell
114-12 the waters of the Colorado River and its tributaries for the
114-13 generation of hydroelectric power are subordinate and inferior to
114-14 the rights of:
114-15 (1) cities and towns situated within the watershed of
114-16 the Colorado River and its tributaries to build dams and impound
114-17 floodwaters for municipal purposes; and
114-18 (2) any citizens of Texas, or bodies politic, to build
114-19 dams and impound the floodwaters within the watershed of the
114-20 Colorado River and its tributaries for domestic purposes and for
114-21 the purposes of irrigation.
114-22 (f) The title to any rights, properties, licenses,
114-23 franchises, or permits acquired, or to be acquired, by the
114-24 authority shall be subject to the limitations imposed by Subsection
114-25 (e).
114-26 Sec. 254.006. BOARD OF DIRECTORS. (a) The powers, rights,
115-1 privileges, and functions of the authority shall be exercised by a
115-2 board consisting of nine directors.
115-3 (b) Each director must be a resident and freehold property
115-4 taxpayer of the state and a resident of the authority.
115-5 (c) The directors shall be appointed by the governor with
115-6 the advice and consent of the senate. A person is not eligible for
115-7 appointment if the person has, during the three years immediately
115-8 preceding the person's appointment, been employed by an electric
115-9 power and light company, gas company, telephone company, or any
115-10 other utility company of any kind. Directors are appointed for
115-11 staggered terms of six years, with three directors' terms expiring
115-12 on February 1 of each odd-numbered year. At the expiration of the
115-13 term of a director, a successor shall be appointed by the governor.
115-14 (d) Each director shall hold office until the expiration of
115-15 the term for which the director was appointed and until a successor
115-16 is appointed and has qualified, unless removed sooner as provided
115-17 by this chapter.
115-18 (e) A director may be removed by the governor for
115-19 inefficiency, neglect of duty, or misconduct in office after at
115-20 least 10 days' written notice of the charges against the director
115-21 and an opportunity to be heard in person or by counsel at a public
115-22 hearing. A vacancy resulting from the death, resignation, or
115-23 removal of a director shall be filled by the governor for the
115-24 unexpired term. Each director shall qualify by taking the official
115-25 oath of office prescribed by general statute.
115-26 (f) Each director is entitled to receive a fee of $10 per
116-1 day for each day spent in attending meetings of the board.
116-2 (g) Until the adoption of bylaws setting the time and place
116-3 of regular meetings and the manner in which special meetings may be
116-4 called, meetings of the board shall be held at such times and
116-5 places as five of the directors may designate in writing. Five
116-6 directors constitute a quorum at any meeting.
116-7 (h) Except as otherwise provided in this chapter or in the
116-8 bylaws, all actions may be taken by the affirmative vote of a
116-9 majority of the directors present at any meeting, except that an
116-10 affirmative vote of at least five directors is required to
116-11 authorize or ratify a contract that involves an amount greater than
116-12 $10,000 or that is to run for a period longer than one year, the
116-13 issuance of bonds, notes, or other evidence of indebtedness, or
116-14 amendment of the bylaws.
116-15 Sec. 254.007. OFFICERS; EMPLOYEES. (a) The board shall
116-16 select a secretary, who shall keep true and complete records of all
116-17 proceedings of the board. Until the appointment of a secretary, or
116-18 in the event of the secretary's absence or inability to act, a
116-19 secretary pro tempore shall be selected by the board.
116-20 (b) The board shall select a general manager, who shall be
116-21 the chief executive officer of the authority.
116-22 (c) The board shall select a treasurer, who may also hold
116-23 the office of secretary.
116-24 (d) The officers have the powers and duties, hold office for
116-25 the term, and are subject to removal in the manner provided in the
116-26 bylaws. The board shall set the compensation of the officers.
117-1 (e) The board may appoint officers, agents, and employees,
117-2 may set their compensation and term of office and the method by
117-3 which they may be removed, and may delegate to them the power and
117-4 duties it determines appropriate.
117-5 Sec. 254.008. DISBURSEMENT OF FUNDS; SURETY BONDS. (a) The
117-6 funds of the authority may be disbursed only on checks, drafts,
117-7 orders, or other instruments signed by the persons authorized by
117-8 the bylaws or a resolution concurred in by not less than five
117-9 directors.
117-10 (b) The general manager, the treasurer, and all other
117-11 officers, agents, and employees of the authority charged with the
117-12 collection, custody, or payment of any funds of the authority shall
117-13 give bond conditioned on the faithful performance of their duties
117-14 and an accounting for all funds and property of the authority
117-15 coming under their control.
117-16 (c) The bonds must be in a form and amount and with a surety
117-17 (by a surety company authorized to do business in the state)
117-18 approved by the board.
117-19 (d) The premiums on the bonds shall be paid by the authority
117-20 and charged as an operating expense.
117-21 Sec. 254.009. AUTHORITY OFFICE; RECORDS. (a) The domicile
117-22 of the authority shall be in the city of Coleman, Coleman County,
117-23 where the authority shall maintain its principal office in the
117-24 charge of the general manager.
117-25 (b) The authority shall keep complete and accurate accounts
117-26 conforming to approved methods of bookkeeping.
118-1 (c) The accounts and all contracts, documents, and records
118-2 of the authority shall be kept at the principal office. The
118-3 accounts and contracts shall be open to public inspection at all
118-4 reasonable times.
118-5 (d) The board shall cause to be made and completed, within
118-6 90 days after the end of each calendar year, an audit of the books
118-7 of account and financial records of the authority for that calendar
118-8 year. The audit shall be made by an independent certified public
118-9 accountant or firm of certified public accountants.
118-10 (e) Copies of a written report of the audit, certified to by
118-11 the accountant or accountants, shall be placed and kept on file
118-12 with the commission, with the comptroller, and at the principal
118-13 office of the authority, and the report shall be open to public
118-14 inspection at all reasonable times.
118-15 Sec. 254.010. CONFLICT OF INTEREST; PENALTY. A director,
118-16 officer, agent, or employee of the authority may not have an
118-17 interest, directly or indirectly, in any contract for the purchase
118-18 of any property or construction of any work by or for the
118-19 authority. If a director, officer, agent, or employee of the
118-20 authority is or becomes interested in a contract described by this
118-21 section, the person shall be guilty of a felony and on conviction
118-22 shall be subject to a fine not to exceed $10,000 or confinement in
118-23 the county jail for not less than one year or more than 10 years,
118-24 or both a fine and confinement.
118-25 Sec. 254.011. RATES AND CHARGES. (a) The board shall
118-26 establish and collect rates and other charges for the sale or use
119-1 of water, water connections, power, electric energy, or other
119-2 services sold, furnished, or supplied by the authority. The fees
119-3 and charges must be reasonable and nondiscriminatory and sufficient
119-4 to produce revenues adequate to:
119-5 (1) pay all expenses necessary to the operation and
119-6 maintenance of the properties and facilities of the authority;
119-7 (2) pay the interest on and principal of all bonds
119-8 issued under this chapter as the interest and principal become due
119-9 and payable;
119-10 (3) pay all sinking fund and reserve fund payments
119-11 agreed to be made with respect to bonds and payable out of
119-12 revenues, as the payments become due and payable; and
119-13 (4) fulfill the terms of any agreements made with the
119-14 holders of bonds or with any person in their behalf.
119-15 (b) Out of the revenues that may be received in excess of
119-16 those required for the purposes specified in Subsection (a), the
119-17 board may, in its discretion:
119-18 (1) establish a reasonable depreciation and emergency
119-19 fund;
119-20 (2) retire, by purchase and cancellation or
119-21 redemption, bonds issued under this chapter; or
119-22 (3) apply the excess revenues to any corporate
119-23 purpose.
119-24 (c) The rates and charges of the authority may not be in
119-25 excess of what may be necessary to fulfill the obligations imposed
119-26 on the authority by this chapter. Nothing in this section shall be
120-1 construed as depriving the state of its power to regulate and
120-2 control fees or charges to be collected for the use of water, water
120-3 connections, power, electric energy, or other service; provided,
120-4 however, that the state pledges to and agrees with the purchasers
120-5 and successive holders of the bonds issued under this chapter that
120-6 the state will not limit or alter the power vested in the authority
120-7 by this chapter to establish and collect such fees and charges as
120-8 will produce revenues sufficient to pay the items specified in
120-9 Subsection (a) or in any way impair the rights or remedies of the
120-10 holders of the bonds, or of any person in their behalf, until the
120-11 bonds, together with the interest on the bonds, and the interest on
120-12 unpaid installments of interest and all costs and expenses in
120-13 connection with any action or proceedings by or on behalf of the
120-14 bondholders and all other obligations of the authority in
120-15 connection with the bonds are fully met and discharged.
120-16 Sec. 254.012. PAYMENT OF DEBTS. Each indebtedness,
120-17 liability, or obligation of the authority for the payment of money,
120-18 however entered into or incurred and whether arising from contract,
120-19 implied contract, or otherwise, shall be payable solely:
120-20 (1) out of the revenues received by the authority with
120-21 respect to its properties, subject to any prior lien on the
120-22 revenues conferred by any resolution previously adopted authorizing
120-23 the issuance of bonds as provided in this chapter; or
120-24 (2) if the board so determines, out of the proceeds of
120-25 the sale by the authority of bonds payable solely from revenues.
120-26 Sec. 254.013. ISSUANCE OF BONDS. (a) The authority may
121-1 issue bonds as provided by this section for any corporate purpose,
121-2 not to exceed $500,000 in aggregate principal amount. Any
121-3 additional amount of bonds must be authorized by an act of the
121-4 legislature.
121-5 (b) Bonds may be:
121-6 (1) sold for cash, at public or private sale, at such
121-7 price or prices as the board determines, provided that the interest
121-8 cost of the money received for the bonds, computed to maturity in
121-9 accordance with standard bond tables in general use by banks and
121-10 insurance companies, does not exceed six percent per year; or
121-11 (2) issued on such terms as the board determines in
121-12 exchange for property of any kind, real, personal, or mixed, or any
121-13 interest in property, that the board determines necessary or
121-14 convenient for any corporate purpose; or
121-15 (3) issued in exchange for like principal amounts of
121-16 other obligations of the authority, matured or unmatured.
121-17 (c) The proceeds of the sale of bonds shall be deposited in
121-18 a bank or banks or trust company or trust companies and shall be
121-19 paid out pursuant to the terms and conditions agreed on between the
121-20 authority and the purchasers of the bonds.
121-21 (d) Bonds must be authorized by a resolution of the board
121-22 that is concurred in by at least five members. Bonds must bear
121-23 such date or dates; mature at such time or times; bear interest at
121-24 such rate or rates, not exceeding six percent per year, payable
121-25 annually or semiannually; be in such denominations; be in such
121-26 form, either coupon or registered; carry such registration
122-1 privileges as to principal only or as to both principal and
122-2 interest and as to exchange of coupon bonds for registered bonds,
122-3 or vice versa, and exchange of bonds of one denomination for bonds
122-4 of other denominations; be executed in such manner; and be payable
122-5 at such place or places within or outside the state, as the
122-6 resolution provides.
122-7 (e) A resolution authorizing bonds may contain provisions,
122-8 which shall be part of the contract between the authority and the
122-9 purchasers and successive holders of the bonds:
122-10 (1) reserving the right to redeem the bonds at such
122-11 time or times, in such amounts, and at such prices, not exceeding
122-12 105 percent of the principal amount of the bonds plus accrued
122-13 interest, as may be provided in the resolution;
122-14 (2) providing for the setting aside of sinking funds
122-15 or reserve funds and the regulation and disposition of the funds;
122-16 (3) pledging, to secure the payment of the principal
122-17 of and interest on the bonds and of the sinking fund or reserve
122-18 fund payments agreed to be made with respect to the bonds, all or
122-19 any part of the gross or net revenues received by the authority
122-20 with respect to the property, real, personal, or mixed, to be
122-21 acquired or constructed with the bonds or the proceeds of the
122-22 bonds, or all or part of the gross or net revenues received by the
122-23 authority from any source;
122-24 (4) prescribing the purposes to which the bonds or any
122-25 bonds later issued, or the proceeds of the bonds, may be applied;
122-26 (5) agreeing to set and collect rates and charges
123-1 sufficient to produce revenues adequate to pay the items specified
123-2 in Section 254.011(a) and prescribing the use and disposition of
123-3 all revenues;
123-4 (6) prescribing limitations on the issuance of
123-5 additional bonds and on the agreements that may be made with the
123-6 purchasers and successive holders of such bonds;
123-7 (7) relating to the construction, extension,
123-8 improvement, reconstruction, operation, maintenance, and repair of
123-9 the properties of the authority and the carrying of insurance on
123-10 all or any part of the properties covering loss or damage or loss
123-11 of use and occupancy resulting from specified risks;
123-12 (8) fixing the procedure, if any, by which, if the
123-13 authority so desires, the terms of any contract with the holders of
123-14 the bonds may be amended or abrogated, the amount of the bonds
123-15 whose holders must consent to the amendment or abrogation, and the
123-16 manner in which such consent may be given;
123-17 (9) providing for the execution and delivery by the
123-18 authority to a bank or trust company authorized by law to accept
123-19 trusts, or to the United States or any officer or agency of the
123-20 United States, of indentures and agreements for the benefit of the
123-21 holders of the bonds setting forth all of the agreements authorized
123-22 by this chapter to be made with or for the benefit of the holders
123-23 of the bonds and such other provisions as may be customary in such
123-24 indentures or agreements; and
123-25 (10) making such other provisions not inconsistent
123-26 with the provisions of this chapter as the board may approve.
124-1 Sec. 254.014. DEFAULT PROCEDURES. (a) A resolution
124-2 authorizing the issuance of bonds and any indenture or agreement
124-3 entered into pursuant to the resolution may include provisions
124-4 regarding a default on the:
124-5 (1) payment of the interest on any bonds as the
124-6 interest becomes due and payable;
124-7 (2) payment of the principal of any bonds as they
124-8 become due and payable, whether at maturity, by call for
124-9 redemption, or otherwise; or
124-10 (3) performance of an agreement made with the
124-11 purchasers or successive holders of any bonds.
124-12 (b) If a default described by Subsection (a) has occurred
124-13 and has continued for a period, if any, prescribed by the
124-14 resolution authorizing the issuance of the bonds, the trustee under
124-15 the indenture or indentures entered into with respect to the bonds
124-16 authorized by the resolution, or, if there is no indenture, a
124-17 trustee appointed in the manner provided in the resolution by the
124-18 holders of 25 percent in aggregate principal amount of the bonds
124-19 authorized by the resolution and then outstanding, may, and on the
124-20 written request of the holders of 25 percent in aggregate principal
124-21 amount of the bonds authorized by the resolution and then
124-22 outstanding shall, in the trustee's own name but for the equal and
124-23 proportionate benefit of the holders of all of the bonds, and with
124-24 or without having possession of the bonds:
124-25 (1) by mandamus or other suit, action, or proceeding
124-26 at law or in equity, enforce all rights of the holders of the
125-1 bonds;
125-2 (2) bring suit on the bonds or the appurtenant
125-3 coupons;
125-4 (3) by action or suit in equity, require the authority
125-5 to account as if it were the trustee of an express trust for the
125-6 bondholders;
125-7 (4) by action or suit in equity, enjoin any acts or
125-8 things which may be unlawful or in violation of the rights of the
125-9 holders of the bonds; or
125-10 (5) after such notice to the authority as the
125-11 resolution may provide, declare the principal of all the bonds due
125-12 and payable, and if all defaults have been made good, then with the
125-13 written consent of the holders of 25 percent in aggregate principal
125-14 amount of the bonds then outstanding, annul the declaration and its
125-15 consequences; provided, however, that the holders of more than a
125-16 majority in principal amount of the bonds authorized by the
125-17 resolution and then outstanding shall, by written instrument
125-18 delivered to the trustee, have the right to direct and control any
125-19 and all action taken or to be taken by the trustee under this
125-20 section.
125-21 (c) A resolution, indenture, or agreement relating to bonds
125-22 may provide that in a suit, action, or proceeding under this
125-23 section the trustee, whether or not all of the bonds have been
125-24 declared due and payable and with or without possession of any of
125-25 the bonds, shall be entitled as of right to the appointment of a
125-26 receiver who may enter and take possession of all or part of the
126-1 properties of the authority and operate and maintain the properties
126-2 and set, collect, and receive rates and charges sufficient to
126-3 provide revenues adequate to pay the items set forth in Section
126-4 254.011(a) and the costs and disbursements of the suit, action, or
126-5 proceeding and may apply such revenues in conformity with the
126-6 provisions of this chapter and the resolution authorizing the
126-7 bonds.
126-8 (d) In a suit, action, or proceeding by a trustee under this
126-9 section, the reasonable fees, counsel fees, and expenses of the
126-10 trustee and of the receiver or receivers, if any, shall constitute
126-11 taxable disbursements, and all costs and disbursements allowed by
126-12 the court shall be a first charge on any revenues pledged to secure
126-13 the payment of the bonds.
126-14 (e) Subject to the provisions of the constitution, the
126-15 courts of Coleman County shall have jurisdiction of any suit,
126-16 action, or proceeding under this section by a trustee on behalf of
126-17 the bondholders and of all property involved in the suit, action,
126-18 or proceeding.
126-19 (f) In addition to the powers specifically provided by this
126-20 section, the trustee shall have all powers necessary or appropriate
126-21 for the exercise of the powers specifically provided or incident to
126-22 the general representation of the bondholders in the enforcement of
126-23 their rights.
126-24 Sec. 254.015. BOND APPROVAL AND REGISTRATION. (a) Before
126-25 any bonds may be sold by the authority, a certified copy of the
126-26 proceedings for the issuance of the bonds, including the form of
127-1 the bonds, together with any other information that the attorney
127-2 general may require, shall be submitted to the attorney general,
127-3 and if the attorney general finds that the bonds have been issued
127-4 in accordance with law, the attorney general shall approve the
127-5 bonds and execute a certificate to that effect, which shall be
127-6 filed in the office of the comptroller and be recorded in a record
127-7 kept for that purpose. The comptroller shall register the bonds if
127-8 the attorney general has filed with the comptroller the certificate
127-9 approving the bonds and the proceedings for the issuance of the
127-10 bonds as provided in this section. No bonds shall be issued until
127-11 the bonds have been registered by the comptroller.
127-12 (b) Bonds approved by the attorney general, registered by
127-13 the comptroller, and issued in accordance with the proceedings so
127-14 approved are valid and binding obligations of the authority and are
127-15 incontestable for any cause from and after the time of
127-16 registration.
127-17 Sec. 254.016. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued
127-18 by the authority under the provisions of this chapter are
127-19 negotiable instruments within the meaning of the laws of this
127-20 state.
127-21 Sec. 254.017. ADDITIONAL POWERS RELATING TO CONTRACTS,
127-22 RULES, AND REGULATIONS. The authority may, but without intending
127-23 by this provision to limit any powers of the authority as granted
127-24 to it by this chapter, enter into and carry out contracts or
127-25 establish or comply with rules and regulations concerning labor and
127-26 materials and other related matters, in connection with any
128-1 project, as the authority deems desirable or as requested by the
128-2 United States, or any corporation or agency created, designated, or
128-3 established by the United States that may assist in the financing
128-4 of the project.
128-5 Sec. 254.018. CONTRACTS FOR WATER OR SOIL CONSERVATION
128-6 PROJECTS. (a) The authority may enter into contracts with
128-7 individuals, firms, associations, or corporations for the
128-8 construction of water or soil conservation projects on property
128-9 owned or controlled by such individuals, firms, associations, or
128-10 corporations and may use machinery, equipment, or facilities owned
128-11 or controlled by the authority for that purpose. The individual,
128-12 association, firm, or corporation shall pay a reasonable charge to
128-13 the authority for construction carried out under this subsection.
128-14 The authority is not liable for damages to any person or property
128-15 because of projects contracted for and constructed under this
128-16 subsection and is not liable for the maintenance or upkeep of such
128-17 projects.
128-18 (b) The authority may enter into contracts with the
128-19 governing boards of duly constituted governmental agencies within
128-20 or outside the boundaries of the authority for the purpose of
128-21 supervising the construction of water or soil conservation projects
128-22 on property located within the control or within the limits of the
128-23 other governmental agencies. The other governmental agencies shall
128-24 pay to the authority a reasonable charge for construction carried
128-25 out under this subsection. The authority is not liable for damages
128-26 to any person or property because of projects contracted for and
129-1 constructed under this subsection and is not liable for the
129-2 maintenance or upkeep of such projects.
129-3 Sec. 254.019. REDEMPTION OF BONDS. The authority may out of
129-4 any funds available for the purpose purchase bonds issued by it at
129-5 a price not exceeding the redemption price applicable at the time
129-6 of the purchase or, if the bonds are not redeemable, at a price not
129-7 exceeding the principal amount of the bonds plus accrued interest.
129-8 All bonds so purchased shall be canceled and no bonds shall ever be
129-9 issued in lieu of the canceled bonds.
129-10 Sec. 254.020. DISPOSITION OF PROPERTY. (a) Nothing in this
129-11 chapter shall be construed as authorizing the authority, and the
129-12 authority is not authorized, to mortgage or otherwise encumber any
129-13 of its property of any kind, real, personal, or mixed, or any
129-14 interest in property, or to acquire any property or interest
129-15 subject to a mortgage or conditional sale, provided that this
129-16 section shall not be construed as preventing the pledging of the
129-17 revenues of the authority as authorized by this chapter.
129-18 (b) Nothing in this chapter shall be construed as
129-19 authorizing the sale, lease, or other disposition of any property
129-20 or interest by the authority or by any receiver of any of its
129-21 properties or through any court proceeding or otherwise; provided,
129-22 however, that the authority may sell for cash any property or
129-23 interest with an aggregate value not exceeding $50,000 in any one
129-24 year if the board, by the affirmative vote of six of its members,
129-25 has determined that the property or interest is not necessary or
129-26 convenient to the business of the authority and has approved the
130-1 terms of the sale. Except by sale as expressly authorized in this
130-2 section, no such property or interest, except personal property,
130-3 shall ever come into the ownership or control, directly or
130-4 indirectly, of any person, firm, or corporation other than a public
130-5 authority created under the laws of the state.
130-6 (c) All property of the authority except personal property
130-7 shall be at all times exempted from forced sale, and nothing in
130-8 this chapter shall be construed to authorize the sale of any of the
130-9 property of the authority, except personal property, under any
130-10 judgment rendered in any suit, and such sales are prohibited.
130-11 Sec. 254.021. PUBLIC ACCESS. (a) The authority may not
130-12 prohibit the free public use of its lands for recreation purposes
130-13 and for hunting and fishing except as, in the opinion of the board,
130-14 such use would interfere with the proper conduct and maintenance of
130-15 the authority's property.
130-16 (b) All public rights-of-way traversing the areas adjacent
130-17 to the areas to be flooded by the impounded waters shall remain
130-18 open as a way of free public passage to and from the lakes created.
130-19 A charge may be made to the public for the right to engage in
130-20 hunting, fishing, or boating on the lakes.
130-21 (c) If any citizen of the state notifies the attorney
130-22 general that this section has not been complied with, the attorney
130-23 general shall institute the proper legal proceedings to require the
130-24 authority or its successor to comply with the provisions of this
130-25 section.
130-26 (d) If any of the land owned by the authority bordering the
131-1 lakes to be created under the authority of this chapter is sold by
131-2 the authority, the authority shall retain in each tract a strip 20
131-3 feet wide abutting the high-water line of the lake for the purpose
131-4 of passage and use by the public for public sports and amusements;
131-5 provided, however, that this subsection does not apply to any sales
131-6 of land by the authority to any state or federal agency to be used
131-7 for game or fish sanctuaries or preserves or for propagation
131-8 purposes.
131-9 Sec. 254.022. BONDS EXEMPT FROM TAXATION. Bonds and the
131-10 interest on bonds issued under the provisions of this chapter are
131-11 exempt from taxation, except inheritance taxes, by the state or by
131-12 any municipal corporation, county, or other political subdivision
131-13 or taxing district of the state.
131-14 Sec. 254.023. SOURCE OF AUTHORITY. This chapter, without
131-15 reference to other statutory provisions of the state, constitutes
131-16 full authority for the authorization and issuance of bonds under
131-17 this chapter, and no other act or law with regard to the
131-18 authorization or issuance of obligations or the deposit of the
131-19 proceeds of such obligations or in any way impeding or restricting
131-20 the carrying out of the acts authorized by this chapter to be done
131-21 shall be construed as applying to any proceedings taken or acts
131-22 done under this chapter.
131-23 Sec. 254.024. CONSTRUCTION. This chapter and all of its
131-24 terms and provisions shall be liberally construed to effectuate the
131-25 purposes set forth in this chapter.
132-1 CHAPTER 255. COLORADO RIVER MUNICIPAL WATER DISTRICT
132-2 Sec. 255.001. CREATION. A district known as the "Colorado
132-3 River Municipal Water District" was created by Chapter 340, Acts of
132-4 the 51st Legislature, Regular Session, 1949. The district is a
132-5 governmental agency and a body politic and corporate.
132-6 (b) The district was created under and is essential to
132-7 accomplish the purposes of Section 59, Article XVI, Texas
132-8 Constitution.
132-9 (c) The district is declared to be a water control and
132-10 improvement district within the meaning of Chapter 51, authorizing
132-11 water supply contracts between cities and water control and
132-12 improvement districts, and, in addition to the powers conferred by
132-13 this chapter, the district has all of the powers conferred by
132-14 Chapters 49, 50, and 51. It is provided, however, that should any
132-15 provision of Chapter 49, 50, or 51 conflict with a provision of
132-16 this chapter, the provision of this chapter shall prevail.
132-17 Sec. 255.002. DEFINITIONS. In this chapter:
132-18 (1) "Board" means the board of directors of the
132-19 district.
132-20 (2) "Director" means a member of the board.
132-21 (3) "District" means the Colorado River Municipal
132-22 Water District.
132-23 Sec. 255.003. TERRITORY. (a) The district includes all of
132-24 the territory contained within the boundaries of the cities of Big
132-25 Spring, in Howard County, Odessa, in Ector County, and Snyder, in
132-26 Scurry County, on January 1, 1981; provided, however, that no
133-1 defect in the definition of the boundaries of any of those cities
133-2 shall affect the validity of the district or any of its powers or
133-3 duties. All territory within the boundaries of the district will
133-4 benefit from the present and contemplated improvements, works, and
133-5 facilities of the district.
133-6 (b) Territory annexed after January 1, 1981, to any city
133-7 described in Subsection (a) or to any city annexed to the district
133-8 under Section 255.006 may be annexed to the district in the manner
133-9 provided in Subsections (c)-(f).
133-10 (c) At any time after final passage of an ordinance or
133-11 resolution annexing territory to the city, the board may issue a
133-12 notice of hearing on the question of annexing that territory to the
133-13 district. The notice shall be sufficient if it states the date and
133-14 place of the hearing and a description of the area proposed to be
133-15 annexed, but in lieu of that description, the notice may make
133-16 reference to the annexation ordinance or resolution of the city.
133-17 (d) The notice shall be published three times in a newspaper
133-18 with general circulation in the city not less than 30 days before
133-19 the date set for the hearing.
133-20 (e) If, pursuant to the hearing, the board finds that the
133-21 territory proposed to be annexed will benefit from the present or
133-22 contemplated improvements, works, or facilities of the district,
133-23 the board shall adopt a resolution annexing the territory to the
133-24 district.
133-25 (f) After the territory is added to the district, the board
133-26 may call an election for the entire district as enlarged for the
134-1 purpose of determining whether the entire district as enlarged will
134-2 assume any tax-supported bonds of the district then outstanding and
134-3 previously voted but not yet sold and whether an ad valorem tax
134-4 will be levied on all taxable property within the district as
134-5 enlarged for the payment of the bonds. The election shall be
134-6 called and held and notice given in the same manner as elections
134-7 for the issuance of tax-supported bonds under this chapter.
134-8 Sec. 255.004. BOARD OF DIRECTORS. (a) All powers of the
134-9 district shall be exercised by a board of directors. Except as
134-10 provided in this chapter with reference to cities with a population
134-11 of less than 5,000, four of the directors shall be appointed by a
134-12 majority vote of the governing body of each of the cities described
134-13 in Section 255.003 and any city annexed to the district under
134-14 Section 255.006. In May of each year the governing body of each of
134-15 the cities in Section 255.003 shall appoint two directors for the
134-16 two-year term beginning on June 1 of that year. Each director
134-17 serves for the term of office as provided in this section and until
134-18 a successor is appointed and qualified. A person may not be
134-19 appointed a director unless the person resides in and owns taxable
134-20 property in the city from which the person is appointed. A member
134-21 of the governing body or an employee of a city may not be appointed
134-22 a director. Directors shall subscribe the constitutional oath of
134-23 office, and each director shall give bond for the faithful
134-24 performance of the director's duties in the amount of $5,000, the
134-25 cost of which shall be paid by the district. A majority
134-26 constitutes a quorum.
135-1 (b) Each director is entitled to receive a fee of $50 for
135-2 attending each meeting of the board, provided that not more than
135-3 $100 is paid to any director for meetings held in any one calendar
135-4 month. Each director is also entitled to receive $50 per day
135-5 devoted to the business of the district and to reimbursement for
135-6 actual expenses incurred in attending to district business provided
135-7 that the service and expense are expressly approved by the board.
135-8 Sec. 255.005. OFFICERS; EMPLOYEES; SEAL. The board shall
135-9 elect from among its members a president and a vice president of
135-10 the district and such other officers as in the judgment of the
135-11 board are necessary. The president is the chief executive officer
135-12 of the district and the presiding officer of the board and has the
135-13 same right to vote as any other director. The vice president shall
135-14 perform all duties and exercise all powers conferred by this
135-15 chapter on the president when the president is absent or fails or
135-16 declines to act. The board shall also appoint a secretary and a
135-17 treasurer, who may or may not be members of the board, and it may
135-18 combine those offices. The treasurer shall give bond in an amount
135-19 required by the board, but in no event less than $100,000. The
135-20 bond must be conditioned on the treasurer faithfully accounting for
135-21 all money that comes into that officer's custody as treasurer of
135-22 the district. The board shall appoint all necessary engineers,
135-23 attorneys, and other employees. The board shall adopt a seal for
135-24 the district.
135-25 Sec. 255.006. ANNEXATION OF TERRITORY. (a) Other territory
135-26 may be annexed to the district in the manner provided by this
136-1 section.
136-2 (b) A petition seeking annexation must be filed with the
136-3 board. The petition must be signed by 50 or a majority of the
136-4 qualified voters of the territory to be annexed who own taxable
136-5 property in the territory to be annexed and who have duly rendered
136-6 the property to the city or county for taxation. The petition must
136-7 describe the territory to be annexed by metes and bounds or
136-8 otherwise unless the territory is the same as that contained in a
136-9 city or town, in which case it is sufficient to state that the
136-10 territory to be annexed is that contained within the city or town.
136-11 (c) If the board finds that the petition complies with and
136-12 is signed by the number of qualified persons required by Subsection
136-13 (b), that the annexation would be in the interest of the territory
136-14 to be annexed and the district, and that the district will be able
136-15 to supply water to the territory to be annexed, the board shall
136-16 adopt a resolution stating the conditions, if any, under which the
136-17 territory may be annexed and requesting the commission to annex the
136-18 territory to the district. A certified copy of the resolution and
136-19 of the petition must be filed with the commission.
136-20 (d) The commission shall adopt a resolution declaring its
136-21 intention to call an election in the territory to be annexed for
136-22 the purpose of submitting the proposition of whether the territory
136-23 shall be annexed to the district and shall set a time and place
136-24 when and where a hearing will be held by the commission on the
136-25 question of whether the territory to be annexed will benefit from
136-26 the improvements, works, and facilities then owned or operated or
137-1 contemplated to be owned or operated by the district. Railroad
137-2 right-of-way that is not situated within the defined limits of an
137-3 incorporated city or town will not benefit from improvements,
137-4 works, and facilities that the district is authorized to construct.
137-5 No railroad right-of-way may be annexed to the district except a
137-6 right-of-way that is contained within the limits of an incorporated
137-7 city or town annexed to the district.
137-8 (e) Notice of the adoption of the resolution stating the
137-9 time and place of the hearing, addressed to the citizens and owners
137-10 of property in the territory to be annexed, shall be published one
137-11 time in a newspaper designated by the commission at least 10 days
137-12 before the date of the hearing. The notice must describe the
137-13 territory to be annexed in the same manner as required or permitted
137-14 for the petition.
137-15 (f) All interested persons may appear at the hearing and
137-16 offer evidence for or against the intended annexation. The hearing
137-17 may proceed in the order and under rules prescribed by the
137-18 commission and may be recessed from time to time. If, at the
137-19 conclusion of the hearing, the commission finds that all the land
137-20 in the territory to be annexed will benefit from the present or
137-21 contemplated improvements, works, or facilities of the district,
137-22 the commission shall adopt a resolution calling an election in the
137-23 territory to be annexed stating the date of and the place or places
137-24 of holding the election and appointing a presiding judge for each
137-25 voting place, who shall appoint the necessary assistant judges and
137-26 clerks to assist in holding the election.
138-1 (g) Notice of the election, stating the date and places for
138-2 holding the election, the proposition to be voted on, and the
138-3 conditions under which the territory may be annexed, or making
138-4 reference to the resolution of the board for that purpose, shall be
138-5 published one time in a newspaper designated by the commission at
138-6 least 10 days before the day set for the election.
138-7 (h) Only qualified electors who reside in the territory to
138-8 be annexed may vote in the election. Returns of the election shall
138-9 be made to the commission.
138-10 (i) The commission shall canvass the returns of the election
138-11 and adopt a resolution declaring the results. If the resolution
138-12 shows that a majority of the votes cast are in favor of annexation,
138-13 the commission shall enter an order annexing the territory to the
138-14 district, and the annexation shall thereafter be incontestable
138-15 except in the manner and within the time for contesting elections
138-16 under the Election Code. A certified copy of the order shall be
138-17 recorded in the deed records of the county in which the territory
138-18 is situated.
138-19 (j) In calling the election on the proposition for
138-20 annexation of territory, the commission may include as a part of
138-21 the same proposition a proposition for the:
138-22 (1) assumption of that territory's part of the
138-23 tax-supported bonds of the district then outstanding and those
138-24 voted but not yet sold; and
138-25 (2) levy of an ad valorem tax on taxable property in
138-26 the territory to be annexed along with the tax in the rest of the
139-1 district for the payment of the bonds.
139-2 (k) After territory is added to the district, the board may
139-3 call an election over the entire district for the purpose of
139-4 determining whether the entire district as enlarged shall assume
139-5 the tax-supported bonds then outstanding and those voted but not
139-6 yet sold and whether an ad valorem tax shall be levied on all
139-7 taxable property within the district as enlarged for the payment of
139-8 the bonds, unless such proposition is voted along with the
139-9 annexation election and becomes lawfully binding on the territory
139-10 annexed. The election shall be called and held in the same manner
139-11 as elections for the issuance of bonds as provided in this
139-12 chapter.
139-13 (l) If no newspaper is published in the territory to be
139-14 annexed, the notices shall be posted in three public places in that
139-15 territory.
139-16 Sec. 255.007. APPOINTMENT OF DIRECTORS BY CITIES IN ANNEXED
139-17 TERRITORY. (a) If the territory of a city with a population of
139-18 more than 5,000 is annexed to the district, the governing body of
139-19 the city shall appoint two directors for the term ending the
139-20 following May 31 and two directors for the term ending one year
139-21 after the following May 31 and in May of each year shall appoint
139-22 two directors for a two-year term as provided in this chapter for
139-23 cities included in the district at the time of the creation of the
139-24 district.
139-25 (b) If the territory of a city with a population of 5,000 or
139-26 less is annexed to the district, the governing body of the city
140-1 shall appoint one director whose term expires one year after the
140-2 following May 31, one director for the term ending one year after
140-3 the following May 31, and in May of each year shall appoint one
140-4 director for a two-year term.
140-5 (c) If the population of a city that was subject to
140-6 Subsection (b) at the time of its annexation later has a population
140-7 that exceeds 5,000, the city shall be entitled to four directors to
140-8 be appointed as provided in Subsection (a).
140-9 Sec. 255.008. AUTHORITY TO IMPOUND AND TRANSPORT WATER; PLAN
140-10 APPROVAL BY COMMISSION. The district may impound the storm waters
140-11 and floodwaters and the unappropriated flow of the Colorado River
140-12 and its tributaries by the construction of a dam or dams across the
140-13 river and tributaries or otherwise by complying with the applicable
140-14 provisions of this code and may develop or otherwise acquire
140-15 underground sources of water. The district may construct or
140-16 otherwise acquire all works, plants, and other facilities necessary
140-17 or useful for the purpose of processing such water and transporting
140-18 it to cities and others for all beneficial purposes of use. No dam
140-19 or other works for the impounding of water from the river may be
140-20 constructed until the plan for that purpose is approved by the
140-21 commission.
140-22 Sec. 255.009. ADDITIONAL POWERS. (a) The district may
140-23 construct, finance, or otherwise provide any kind or type of water
140-24 pollution control facilities, wastewater treatment and reuse
140-25 facilities, waste disposal facilities, or air pollution control
140-26 facilities at any place or places within the area of the watershed
141-1 (river basin) of the Colorado River that lies west of the east
141-2 boundary line of Coleman County and at any place or places in
141-3 Reeves, Loving, Culberson, Ector, Ward, and Winkler counties.
141-4 Within that area, the district also may exercise all powers granted
141-5 to a district or a river authority operating under Section 59,
141-6 Article XVI, Texas Constitution, Chapter 383, Health and Safety
141-7 Code, Chapter 30, and any other general law relating to those
141-8 specific powers and facilities. If the district creates a
141-9 nonprofit corporation to act on its behalf under the Development
141-10 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
141-11 Statutes), the corporation may exercise any of its powers with
141-12 respect to projects within the area described in this subsection.
141-13 (b) As used in this section, "person" means any individual,
141-14 partnership, corporation, or other private entity and any public
141-15 agency, including an authority, district, city, town, or other
141-16 political subdivision, joint board, or other public agency created
141-17 and operating under the laws of this state and any entity defined
141-18 as a person under Section 311.005, Government Code. The district
141-19 and all persons may contract, on terms and conditions on which the
141-20 parties may agree, with respect to any power, function, or duty of
141-21 the district, including those additionally granted in this section,
141-22 and the district and all persons may execute appropriate documents
141-23 and instruments in connection with the contracts. The district may
141-24 issue bonds, in the manner provided in Section 255.013, with
141-25 respect to any of its powers, including the powers granted in this
141-26 section, and for the purpose of providing funds to enable the
142-1 district to pay for the costs of engineering design and studies,
142-2 surveying, title research, appraisals, options on real or personal
142-3 property, and other related activities in connection with planning
142-4 and implementing proposed projects or improvements and also for the
142-5 purpose of providing funds to operate and maintain any facilities.
142-6 The district may invest any of its funds, including bond proceeds,
142-7 in any manner or securities as determined by the board.
142-8 (c) Notwithstanding any other provisions of this chapter,
142-9 and in addition to all other powers granted by this chapter or by
142-10 any other provision of law, the district may:
142-11 (1) enter into loan agreements, leases, or installment
142-12 sales agreements; and
142-13 (2) acquire, purchase, construct, own, operate,
142-14 maintain, repair, improve, or extend, and loan, lease, sell, or
142-15 otherwise dispose of, on terms and conditions, including loan
142-16 payments, rentals, sale price, or installment sale payments, as the
142-17 parties may agree, at any place or location within the area
142-18 described in Subsection (a), or at any other place or location
142-19 outside the area with respect to facilities that are designed
142-20 primarily to serve inhabitants within that area, all works,
142-21 improvements, facilities, plants, buildings, structures, equipment,
142-22 and appliances, real and personal property or any interest in real
142-23 or personal property, and all money or bond proceeds that are
142-24 incident, helpful, or necessary:
142-25 (A) to provide for the control, storage,
142-26 preservation, transmission, treatment, distribution, and use of
143-1 storm water, floodwater, and the water of rivers and streams for
143-2 municipal, domestic, electric energy or power, industrial,
143-3 irrigation, oil flooding, mining, recreation, agricultural,
143-4 commercial, and all other beneficial uses and purposes;
143-5 (B) to collect, transport, process, treat,
143-6 dispose of, and control waste, including municipal, domestic,
143-7 industrial, agricultural, recreational, and other waste, whether in
143-8 fluid, solid, or composite state and to control, abate, or reduce
143-9 all types of pollution, including air pollution and water
143-10 pollution;
143-11 (C) to reclaim and provide drainage and drainage
143-12 systems for land;
143-13 (D) to establish or otherwise provide for public
143-14 parks and recreation facilities; or
143-15 (E) to facilitate the carrying out of any power,
143-16 duty, or function of the district.
143-17 (d) The purposes stated in Subsection (c) are determined by
143-18 the legislature to be for the conservation and development of the
143-19 natural resources of the state within the meaning of Section 59,
143-20 Article XVI, Texas Constitution.
143-21 (e) The district is considered a district and constitutes a
143-22 river authority under Chapter 383, Health and Safety Code, and
143-23 Chapter 30, and those chapters are applicable to the district,
143-24 except to the extent of any conflict with this chapter, in which
143-25 case this chapter prevails over the provisions of Chapter 383,
143-26 Health and Safety Code, and Chapter 30.
144-1 (f) Any person may contract with the district in any manner
144-2 authorized by this chapter, Chapter 383, Health and Safety Code, or
144-3 Chapter 30 with respect to water, waste, pollution control, or any
144-4 other facilities or services provided by the district. A public
144-5 agency additionally may enter into and execute a contract with the
144-6 district and may determine, agree, and pledge that all or any part
144-7 of its payments under the contract shall be payable from the source
144-8 described in Section 30.030(c), subject only to the authorization
144-9 of the contract, pledge, and payments by a two-thirds vote of the
144-10 governing body of the public agency. Public agencies may use and
144-11 pledge any other available revenues or resources for the payment of
144-12 amounts due under the contracts, as an additional source or sources
144-13 of payment or as the sole source or sources of payment, and may
144-14 covenant with respect to those revenues to assure the availability
144-15 of the revenues when required. If bonds issued by the district
144-16 recite that they are secured by a pledge of revenues from any
144-17 contract, a copy of the contract and the proceedings relating to
144-18 the contract shall be submitted to the attorney general along with
144-19 the bonds that must be submitted under Section 255.013. If the
144-20 attorney general finds that the bonds are authorized and the
144-21 contract has been made and entered into in accordance with law, the
144-22 attorney general shall approve the bonds and the contract. After
144-23 approval, the bonds and the contract are incontestable in any court
144-24 or other forum for any reason and are valid and binding in
144-25 accordance with their terms and provisions for all purposes.
144-26 (g) Each public agency:
145-1 (1) may set, charge, and collect fees, rates, charges,
145-2 rentals, and other amounts for services or facilities provided by a
145-3 utility operated by the agency, or provided under or in connection
145-4 with a contract with the district, from its inhabitants or from
145-5 users or beneficiaries of the utility, services, or facilities,
145-6 including specifically water charges, sewage charges, waste
145-7 disposal system fees and charges, including garbage collection or
145-8 handling fees, and other fees or charges;
145-9 (2) may use and pledge those amounts to make payments
145-10 to the district that are required under the contract;
145-11 (3) may covenant to do so in amounts sufficient to
145-12 make all or any part of those payments to the district when due;
145-13 and
145-14 (4) if the parties agree in the contract, shall have
145-15 the payments constitute an expense of operation of any facilities
145-16 or utility operated by the public agency provided that an agreement
145-17 may not be made that would violate the United States Constitution
145-18 or the Texas Constitution.
145-19 (h) This section is wholly sufficient authority for the
145-20 exercise of the powers, the issuance of bonds, the execution of
145-21 contracts, and the performance of the other acts and procedures
145-22 authorized in this section, by the district and all persons,
145-23 including specifically public agencies, without reference to any
145-24 other law, or restrictions or limitations contained in any other
145-25 law, except as specifically provided in this section. To the
145-26 extent of any conflict or inconsistency between this section and
146-1 any other law, including a home-rule city charter, this section
146-2 shall prevail and control; provided, however, that the district and
146-3 all persons, including public agencies, may use any other law not
146-4 in conflict with this section to the extent convenient or necessary
146-5 to carry out any power or authority, express or implied, granted by
146-6 this section.
146-7 (i) This section does not compel any person, including any
146-8 public agency, to secure water, sewer service, or any other service
146-9 from the district, except under contracts voluntarily executed.
146-10 Sec. 255.010. CONTROL OF POLLUTION AND SALTWATER. The
146-11 district may:
146-12 (1) provide for the study, correction, prevention, and
146-13 control of both artificial and natural pollution of the Colorado
146-14 River and its tributaries, upstream from the north boundary line of
146-15 Coke County, Texas, and adopt and promulgate all reasonable
146-16 regulations with regard to such pollution, both artificial and
146-17 natural, to secure, maintain, and preserve the purity, usefulness,
146-18 and sanitary condition of the water in and to flow into the
146-19 Colorado River and its tributaries;
146-20 (2) eliminate oil field brine pollution of the
146-21 Colorado River and its tributaries, upstream from the north
146-22 boundary line of Coke County, Texas, by capping and plugging
146-23 abandoned oil wells, covering saltwater pits with earth,
146-24 constructing channel dams to collect polluted low flows of the
146-25 Colorado River and its tributaries, developing saltwater disposal
146-26 wells, and by other practical means of eliminating oil field brine
147-1 pollution of the Colorado River and its tributaries; and
147-2 (3) develop, drill for, or otherwise acquire sources
147-3 of underground and surface saltwater and sell salt well water,
147-4 saltwater collected by channel dams, fresh water from the
147-5 district's reservoirs and wells, and commingled saltwater and fresh
147-6 water for mining, oil field flooding and repressuring, industrial,
147-7 manufacturing, or other purposes.
147-8 Sec. 255.011. EMINENT DOMAIN. For the purpose of carrying
147-9 out any power or authority conferred by this chapter the district
147-10 may acquire property, including water, water rights, land, and
147-11 easements, within and outside the district, by condemnation in the
147-12 manner provided by Chapter 21, Property Code. The amount of and
147-13 character of interest in land and easements thus to be acquired
147-14 shall be determined by the board.
147-15 Sec. 255.012. CONTRACTS; BIDDING. A construction contract
147-16 for the purchase of material, equipment, or supplies requiring an
147-17 expenditure of more than $25,000 may be made only after publication
147-18 of a notice to bidders once each week for two weeks before the
147-19 contract is awarded. The notice is sufficient if it states the
147-20 time and place when and where the bids will be opened and the
147-21 general nature of the work to be done or the material, equipment,
147-22 or supplies to be purchased and states where and the terms on which
147-23 copies of the plans and specifications may be obtained. The
147-24 publication shall be in a newspaper published in the district and
147-25 designated by the board.
147-26 Sec. 255.013. ISSUANCE OF BONDS. (a) For the purpose of
148-1 providing a source of water supply for cities and other users for
148-2 municipal, domestic, and industrial purposes as authorized by this
148-3 chapter and for the purpose of carrying out any other power or
148-4 authority conferred by this chapter, the district may issue
148-5 negotiable bonds to be payable from such revenues of the district
148-6 as are pledged by resolution of the board.
148-7 (b) Bonds must be authorized by resolution of the board and
148-8 must be issued in the name of the district, signed by the president
148-9 or vice president, and attested by the secretary and must have the
148-10 seal of the district impressed on them. The bonds must mature
148-11 serially or otherwise in not to exceed 40 years and may be sold at
148-12 a price and under terms determined by the board to be the most
148-13 advantageous reasonably obtainable, provided that the interest cost
148-14 to the district, calculated by use of standard bond interest tables
148-15 currently in use by insurance companies and investment houses, does
148-16 not exceed six percent per year. Within the discretion of the
148-17 board, bonds may be made callable prior to maturity at such times
148-18 and prices as may be prescribed in the resolution authorizing the
148-19 bonds and may be made registrable as to principal or as to both
148-20 principal and interest.
148-21 (c) Bonds may be issued in more than one series and from
148-22 time to time as required for carrying out the purposes of this
148-23 chapter.
148-24 (d) Bonds may be secured by a pledge of all or part of the
148-25 net revenues of the district, of the net revenues of any one or
148-26 more contracts made before or after the bonds are issued, or of
149-1 other revenues specified by resolution of the board. Any such
149-2 pledge may reserve the right, under conditions specified in the
149-3 pledge resolution, to issue additional bonds which will be on a
149-4 parity with or subordinate to the bonds being issued. The term
149-5 "net revenues" means the gross revenues of the district after
149-6 deduction of the amount necessary to pay the cost of maintaining
149-7 and operating the district and its properties.
149-8 (e) For the purposes stated in Subsection (a), the district
149-9 may issue bonds payable from ad valorem taxes to be levied on all
149-10 taxable property in the district or issue bonds secured both by and
149-11 payable from such taxes and the revenues of the district. If bonds
149-12 are issued payable wholly or partially from ad valorem taxes, the
149-13 board shall levy a tax sufficient to pay the bonds and the interest
149-14 on the bonds as the bonds and interest become due, but the rate of
149-15 the tax for any year may be set after giving consideration to the
149-16 money received from the pledged revenues that may be available for
149-17 payment of principal and interest to the extent and in the manner
149-18 permitted by the resolution authorizing the issuance of the bonds.
149-19 (f) If bonds payable wholly from revenues are issued, the
149-20 board shall set, and from time to time revise, rates of
149-21 compensation for water sold and services rendered by the district
149-22 that will be sufficient to pay the expense of operating and
149-23 maintaining the facilities of the district and to pay bonds as they
149-24 mature and the interest as it accrues and to maintain the reserve
149-25 and other funds as provided in the resolution authorizing the
149-26 bonds. If bonds payable partially from revenues are issued, the
150-1 board shall set, and from time to time revise, rates of
150-2 compensation for water sold and services rendered by the district
150-3 that will be sufficient to assure compliance with the resolution
150-4 authorizing the bonds.
150-5 (g) The district may set aside from the proceeds from the
150-6 sale of the bonds an amount for the payment of interest expected to
150-7 accrue during construction and for a reserve interest and sinking
150-8 fund, and such provision may be made in the resolution authorizing
150-9 the bonds. Proceeds from the sale of the bonds may also be used
150-10 for the payment of all expenses necessarily incurred in
150-11 accomplishing the purposes for which the district is created.
150-12 (h) In the event of a default or a threatened default in the
150-13 payment of principal of or interest on bonds payable wholly or
150-14 partially from revenues of the district, any court of competent
150-15 jurisdiction may, on petition of the holders of 25 percent of the
150-16 outstanding bonds of the issue in default or threatened with
150-17 default, appoint a receiver with authority to collect and receive
150-18 all income of the district except taxes, employ and discharge
150-19 agents and employees of the district, take charge of the district's
150-20 funds on hand except funds received from taxes, unless commingled,
150-21 and manage the proprietary affairs of the district without consent
150-22 or hindrance by the directors. The receiver may also be authorized
150-23 to sell or make contracts for the sale of water or renew such
150-24 contracts with the approval of the court appointing the receiver.
150-25 The court may vest the receiver with other powers and duties the
150-26 court finds necessary for the protection of the holders of the
151-1 bonds.
151-2 Sec. 255.014. REFUNDING BONDS. (a) The district may issue
151-3 refunding bonds for the purpose of refunding any outstanding bonds
151-4 authorized by this chapter and interest on the bonds. Refunding
151-5 bonds may be issued to refund more than one series of outstanding
151-6 bonds and may combine the pledges for the outstanding bonds for the
151-7 security of the refunding bonds, and refunding bonds may be secured
151-8 by other or additional revenues.
151-9 (b) The provisions of this chapter with reference to the
151-10 issuance of other bonds, their approval by the attorney general,
151-11 and the remedies of the holders shall be applicable to refunding
151-12 bonds. Refunding bonds shall be registered by the comptroller on
151-13 surrender and cancellation of the bonds to be refunded, but in lieu
151-14 thereof, the resolution authorizing the issuance of the refunding
151-15 bonds may provide that the refunding bonds shall be sold and the
151-16 proceeds of the sale deposited in the bank where the original bonds
151-17 are payable, in which case the refunding bonds may be issued in an
151-18 amount sufficient to pay the interest on the original bonds to
151-19 their option date or maturity date, and the comptroller shall
151-20 register the refunding bonds without concurrent surrender and
151-21 cancellation of the original bonds.
151-22 Sec. 255.015. DEED OF TRUST LIEN. Any bonds, including
151-23 refunding bonds, authorized by this chapter that are not payable
151-24 wholly from ad valorem taxes may be additionally secured by a deed
151-25 of trust lien upon physical properties of the district and all
151-26 franchises, easements, water rights and appropriation permits,
152-1 leases, and contracts, and all rights appurtenant to such
152-2 properties, vesting in the trustee power to sell the properties for
152-3 payment of the indebtedness, power to operate the properties, and
152-4 all other powers and authority for the further security of the
152-5 bonds. The deed of trust may contain any provisions prescribed by
152-6 the board for the security of the bonds and the preservation of the
152-7 trust estate and may make provision for amendment or modification
152-8 thereof and the issuance of bonds to replace lost or mutilated
152-9 bonds. A purchaser under a sale under a deed of trust shall be the
152-10 owner of the dam or dams and the other properties and facilities
152-11 purchased and shall have the right to maintain and operate such
152-12 dams, properties, or facilities.
152-13 Sec. 255.016. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION.
152-14 (a) No bonds payable wholly or partially from ad valorem taxes,
152-15 except refunding bonds, may be issued unless the issuance is
152-16 authorized by an election at which only the qualified voters who
152-17 reside in the district may vote and a majority of the votes cast in
152-18 each city contained in the district is in favor of the issuance of
152-19 the bonds. Bonds not payable wholly or partially from ad valorem
152-20 taxes may be issued without an election.
152-21 (b) An election for the authorization of bonds may be called
152-22 by the board without a petition. The resolution calling the
152-23 election must specify the time and places of holding the election,
152-24 the purpose for which the bonds are to be issued, the maximum
152-25 amount of the bonds, the maximum maturity of the bonds, the form of
152-26 the ballot, and the presiding judge for each voting place. The
153-1 presiding judge serving at each voting place shall appoint one
153-2 assistant judge and at least two clerks to assist in holding the
153-3 election. Notice of the election shall be given by publishing a
153-4 substantial copy of the notice in one newspaper published in each
153-5 city contained in the district for two consecutive weeks. The
153-6 first publication must be at least 21 days prior to the date of the
153-7 election. In any city in which no newspaper is published, notice
153-8 must be given by posting a copy of the resolution in three public
153-9 places.
153-10 (c) The returns of the election shall be made to and
153-11 canvassed by the board.
153-12 (d) Elections held under this section are governed by the
153-13 Election Code except as otherwise provided in this chapter.
153-14 Sec. 255.017. EXAMINATION BY ATTORNEY GENERAL. After bonds
153-15 are authorized by the district, the bonds and the record relating
153-16 to their issuance shall be submitted to the attorney general for
153-17 examination as to the validity of the bonds. If the bonds recite
153-18 that they are secured by a pledge of the proceeds of a contract
153-19 previously made between the district and a city or other
153-20 governmental agency or district, a copy of the contract and the
153-21 proceedings of the city or other governmental agency or district
153-22 authorizing the contract shall be submitted to the attorney
153-23 general. If the bonds have been authorized and if any such
153-24 contract has been made in accordance with the constitution and laws
153-25 of the state, the attorney general shall approve the bonds and such
153-26 contracts and the bonds then shall be registered by the
154-1 comptroller. After approval and registration, the bonds and the
154-2 contracts, if any, are valid and binding and are incontestable for
154-3 any cause.
154-4 Sec. 255.018. CONTRACTS WITH CITIES AND OTHERS. The
154-5 district may enter into contracts with cities and others for
154-6 supplying water and wastewater treatment service to them. The
154-7 district may contract with a city for the rental or leasing of, or
154-8 for the operation of, the water production, water supply, water
154-9 supply facilities, and wastewater treatment facilities of the city
154-10 for such consideration as the district and the city may agree. The
154-11 contract may be on such terms and for such time as the parties
154-12 agree and may provide that the contract shall continue in effect
154-13 until bonds specified in the contract and refunding bonds issued in
154-14 lieu of such bonds are paid.
154-15 Sec. 255.019. DISTRICT DEPOSITORY. (a) The board shall
154-16 designate one or more banks within the district to serve as
154-17 depository for the funds of the district. All funds of the
154-18 district shall be deposited in the depository bank or banks, except
154-19 that funds pledged to pay bonds may be deposited with the trustee
154-20 bank named in the trust agreement and except that funds shall be
154-21 remitted to the bank of payment for the payment of principal of and
154-22 interest on bonds. To the extent that funds in the depository
154-23 banks and the trustee bank are not insured by the Federal Deposit
154-24 Insurance Corporation, the funds shall be secured in the manner
154-25 provided by law for the security of county funds.
154-26 (b) Before designating a depository bank or banks, the board
155-1 shall issue a notice stating the time and place when and where the
155-2 board will meet for such purpose and inviting the banks in the
155-3 district to submit applications to be designated depositories. The
155-4 notice must be published one time in a newspaper published in the
155-5 district and specified by the board. The term of service for
155-6 depositories shall be prescribed by the board.
155-7 (c) At the time specified in the notice, the board shall
155-8 consider the applications and the management and condition of the
155-9 banks filing them and shall designate as depositories the bank or
155-10 banks that offer the most favorable terms and conditions for the
155-11 handling of the funds of the district and that the board finds have
155-12 proper management and are in condition to warrant handling of
155-13 district funds. Membership on the board of an officer or director
155-14 of a bank does not disqualify that bank from being designated as
155-15 depository.
155-16 (d) If no applications are received by the time stated in
155-17 the notice, the board shall designate a bank or banks within or
155-18 outside the district on terms and conditions it determines
155-19 advantageous to the district.
155-20 Sec. 255.020. WATER APPROPRIATION PERMITS; PURCHASE OF
155-21 WATER. The district may acquire water appropriation permits
155-22 directly from the commission or from owners of permits. The
155-23 district may purchase water or a water supply from any person,
155-24 firm, corporation, or public agency of Texas or another state.
155-25 Sec. 255.021. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
155-26 DEPOSITS. All bonds of the district are legal and authorized
156-1 investments for banks, savings banks, trust companies, building and
156-2 loan associations, savings and loan associations, insurance
156-3 companies, fiduciaries, trustees, and guardians and for the sinking
156-4 funds of cities, towns, villages, counties, school districts, or
156-5 other political corporations or subdivisions of the state. Such
156-6 bonds are eligible to secure the deposit of all public funds of the
156-7 state and all public funds of cities, towns, villages, counties,
156-8 school districts, or other political corporations or subdivisions
156-9 of the state; and the bonds are lawful and sufficient security for
156-10 the deposits to the extent of their value when the bonds are
156-11 accompanied by all unmatured coupons.
156-12 Sec. 255.022. BONDS EXEMPT FROM TAXATION. The
156-13 accomplishment of the purposes stated in this chapter is for the
156-14 benefit of the people of this state and for the improvement of
156-15 their properties and industries, and the district in carrying out
156-16 the purposes of this chapter will be performing an essential public
156-17 function under Section 59, Article XVI, Texas Constitution, and
156-18 shall not be required to pay any tax or assessment on the project
156-19 or any part of the project, and the bonds issued under this chapter
156-20 and the transfer of and income from the bonds, including the
156-21 profits made on the sale of the bonds, shall at all times be free
156-22 from taxation within this state.
156-23 Sec. 255.023. TAX ROLLS. (a) The tax rolls of the cities
156-24 in the district as created and in annexed territory shall
156-25 constitute the tax rolls of the district until assessments and tax
156-26 rolls are made by the district.
157-1 (b) Before the sale and delivery of district bonds that are
157-2 payable wholly or partially from ad valorem taxes, the board shall
157-3 appoint a tax assessor and collector and a board of equalization
157-4 and shall cause taxes to be assessed, valuations to be equalized,
157-5 and tax rolls to be prepared. General laws applicable to water
157-6 control and improvement districts with reference to tax assessors
157-7 and collectors, boards of equalization, tax rolls, and the levy and
157-8 collection of taxes and delinquent taxes shall be applicable to the
157-9 district, except that the board of equalization, to be appointed
157-10 each year by the board, shall consist of one member residing in
157-11 each city in the district.
157-12 Sec. 255.024. ADOPTION OF RULES AND REGULATIONS. (a) The
157-13 board may adopt and promulgate all reasonable rules and regulations
157-14 to secure, maintain, and preserve the sanitary condition of all
157-15 water in and to flow into any reservoir owned by the district, to
157-16 prevent the waste or the unauthorized use of water, and to regulate
157-17 residence, hunting, fishing, boating, and camping, and all
157-18 recreational and business privileges, along or around any such
157-19 reservoir and the Colorado River and its tributaries or any body of
157-20 land or easement owned or controlled by the district. The board
157-21 may make contracts with responsible persons for the construction
157-22 and operation of toll bridges over the district's water or for
157-23 ferry service on or over the district's water, for periods not to
157-24 exceed 20 years in the case of a bridge and not to exceed 10 years
157-25 in the case of a ferry, setting the compensation to be charged for
157-26 service by any such facility so that the charges are reasonable and
158-1 requiring adequate bond or bonds from the contracting person,
158-2 association, or corporation, payable to the district, of such
158-3 amount and conditioned as the board determines appropriate. The
158-4 contracts may provide for forfeiture of the particular franchise in
158-5 case of a failure of the licensee to render adequate public
158-6 service.
158-7 (b) The district may prescribe reasonable penalties for the
158-8 breach of a rule or regulation of the district, which penalties
158-9 shall not exceed a fine of more than $200 or imprisonment for not
158-10 more than 30 days, or both a fine and imprisonment. The penalties
158-11 are in addition to any other penalties provided by the laws of the
158-12 state and may be enforced by complaints filed in the appropriate
158-13 court of jurisdiction. A rule or regulation that provides a
158-14 penalty for the violation of a rule or regulation is not effective
158-15 or enforceable unless the district has published a substantive
158-16 statement of the particular rule or regulation and the penalty for
158-17 its violation once a week for two consecutive weeks in the
158-18 territory of the district. The substantive statement must be as
158-19 condensed as possible to afford sufficient notice of the act
158-20 forbidden by the rule or regulation. A single notice may embrace a
158-21 number of regulations. The notice must state that breach of the
158-22 regulation or regulations will subject the violator to a penalty
158-23 and that the full text of the rule or regulation is on file in the
158-24 principal office of the district, where it may be read by an
158-25 interested person. Five days after the second publication of the
158-26 required notice, the rule or regulation shall be in effect, and
159-1 ignorance of the rule or regulation does not constitute a defense
159-2 to a prosecution for the enforcement of a penalty. The court shall
159-3 take judicial notice of rules and regulations authorized by this
159-4 subsection, and the rules and regulations shall be considered
159-5 similar in nature to a valid penal ordinance of a city.
159-6 (c) The district may employ and constitute its own peace
159-7 officers, and any such officer or any county peace officer may make
159-8 arrests when necessary to prevent or stop the commission of any
159-9 offense against the regulations of the district, or against the
159-10 laws of the state, when the offense, or threatened offense, occurs
159-11 on any land, water, or easement owned or controlled by the district
159-12 or may make an arrest at any place if an offense involves injury or
159-13 detriment to any property owned or controlled by the district.
159-14 Sec. 255.025. PARKS AND RECREATION. The district may
159-15 establish or otherwise provide for public parks and recreation
159-16 facilities and may acquire land adjacent to any of its reservoirs
159-17 for such purposes; provided, however, that no money received from
159-18 taxation or from bonds payable wholly or partially from taxation
159-19 may be used for such purpose.
159-20 CHAPTER 256. DALLAS COUNTY UTILITY AND RECLAMATION DISTRICT
159-21 Sec. 256.001. CREATION. (a) A conservation, utility, and
159-22 reclamation district to be known as the "Dallas County Utility and
159-23 Reclamation District" is created. The district is a governmental
159-24 agency and a body politic and corporate.
159-25 (b) The district is created under and is essential to
159-26 accomplish the purposes of Section 59, Article XVI, Texas
160-1 Constitution.
160-2 Sec. 256.002. DEFINITIONS. In this chapter:
160-3 (1) "Board" means the board of directors of the
160-4 district.
160-5 (2) "Director" means a member of the board.
160-6 (3) "District" means the Dallas County Utility and
160-7 Reclamation District.
160-8 Sec. 256.003. TERRITORY. (a) The district includes all
160-9 property situated within the boundaries of the district as
160-10 redefined, described, and filed of record in Volume 72226, page
160-11 0508, of the Deed Records of Dallas County and includes areas
160-12 annexed to the district, regardless of the date of such annexation,
160-13 and filed of record in such deed records. It is found and
160-14 determined that the boundaries and field notes of the district form
160-15 a closure. If a mistake is made in copying the field notes on file
160-16 in such records or in field notes filed pursuant to annexation, the
160-17 mistake does not affect the organization, existence, and validity
160-18 of the district or the right to issue bonds voted in the district
160-19 or the right to assess, levy, and collect taxes or its operations,
160-20 projects, or activities.
160-21 (b) The legislature finds and determines that all property
160-22 situated within the boundaries of the district has been, is, and
160-23 will be benefited by the district, by the provisions of this
160-24 chapter, and by the projects and properties permitted by this
160-25 chapter and by prior applicable law.
160-26 (c) All bonds, contracts, and other obligations issued,
161-1 executed, or incurred by the district before February 1, 1984, to
161-2 the extent not satisfied or paid, constitute lawful obligations of
161-3 the district in accordance with their respective terms.
161-4 Sec. 256.004. POWERS AND DUTIES. (a) The district may
161-5 exercise all of the rights, powers, privileges, authorities, and
161-6 functions conferred and imposed by the general laws of this state
161-7 applicable to districts created under the authority of Section 59,
161-8 Article XVI, Texas Constitution, including without limitation those
161-9 conferred by Chapters 49 and 54; provided, however, that the
161-10 district shall obtain specific written approval in the form of a
161-11 resolution of the city council of the City of Irving as a condition
161-12 precedent to the issuance of bonds for fire-fighting purposes or to
161-13 engage in fire-fighting activities. All general laws not in
161-14 conflict with or inconsistent with the provisions of this chapter
161-15 are adopted and incorporated in this chapter by reference with the
161-16 same effect as if copied in full in this chapter. If any provision
161-17 of general law conflicts with or is inconsistent with the
161-18 provisions of this chapter, the provisions of this chapter prevail.
161-19 (b) Subject to the provisions of Subsection (c), the powers
161-20 of the district include the power to purchase, construct, acquire,
161-21 own, operate, maintain, repair, and improve within its boundaries
161-22 any works, improvements, facilities, plants, equipment, appliances,
161-23 vehicles, and other equipment incident, helpful, or necessary to
161-24 provide a land-based transportation system within the district, but
161-25 not within the city of Irving streets and roadway system, capable
161-26 of transporting people and personal property across and along the
162-1 lakes, waterways, watercourses, and lands within and to the
162-2 boundaries of the district. The legislature finds and determines
162-3 that the exercise of this power and the development and furnishing
162-4 of transportation projects under this subsection are necessary,
162-5 appropriate, and desirable in the conservation and development of
162-6 the state's natural resources, including the waters, lands, and
162-7 projects within the district, in order to fully develop those
162-8 purposes.
162-9 (c) The powers granted in Subsection (b) are subject to the
162-10 provisions of this subsection. The district may not issue any
162-11 bonds that are payable in whole or in part from ad valorem taxes
162-12 and that are issued for the purposes authorized in Subsection (b)
162-13 unless the district has obtained a final judgment of a court having
162-14 jurisdiction under Chapter 1205, Government Code, or under other
162-15 appropriate and applicable rules or statutes, and the judgment
162-16 holds in substance, in the opinion of the attorney general, that
162-17 the issuance of tax bonds for the purposes described in Subsection
162-18 (b) will be for purposes authorized by Section 59, Article XVI,
162-19 Texas Constitution. The provisions of this subsection do not apply
162-20 to revenue bonds that are not payable in any part from ad valorem
162-21 taxes levied within the district. The district has the authority,
162-22 without reference to the requirements of this subsection, to issue
162-23 bonds payable solely from contracts or other revenues entered into
162-24 or collected for the purposes described in Subsection (b) and to
162-25 pay the costs of operation of a land-based transportation system
162-26 from funds other than ad valorem taxes.
163-1 (d) The district may sell potable water to retail or
163-2 wholesale customers if the governing body of the City of Irving
163-3 gives its written consent.
163-4 Sec. 256.005. ROADS AND TURNPIKES. (a) The district may
163-5 provide for the construction, maintenance, and operation of
163-6 macadamized, graveled, or paved roads and turnpikes, or works,
163-7 facilities, or improvements in aid of such roads or turnpikes,
163-8 within or outside the boundaries of the district, to the fullest
163-9 extent authorized and contemplated by the provisions of Section 52,
163-10 Article III, Texas Constitution, and, subject to the provisions of
163-11 this chapter, may issue, sell, and deliver bonds, notes, or other
163-12 obligations of the district for such purposes; provided, however,
163-13 that without the consent and approval of the City of Irving, the
163-14 district shall not undertake to construct, maintain, operate,
163-15 repair, reconstruct, cross, intersect, or connect with any public
163-16 streets or roads of the City of Irving;
163-17 (b) The board may expend funds, borrow money, issue bonds,
163-18 issue bond anticipation notes and tax anticipation notes, levy and
163-19 collect maintenance taxes, and carry out all acts and have all
163-20 power and authority authorized by Section 52, Article III, Texas
163-21 Constitution; provided, however, that bonds may not be issued by
163-22 the district for the purposes described in this section unless
163-23 authorized by an election at which a two-thirds majority of the
163-24 resident, qualified electors of the district vote in favor of the
163-25 issuance of the bonds; and provided further, that bonds, notes, or
163-26 other obligations of the district issued or incurred for the
164-1 purposes described in this chapter may not exceed one-fourth of the
164-2 assessed valuation of the real property of the district.
164-3 Sec. 256.006. TAX ABATEMENT AGREEMENTS. (a) The district
164-4 may enter into tax abatement agreements and may designate areas as
164-5 reinvestment zones pursuant to Section 1-g, Article VIII, Texas
164-6 Constitution, this chapter, and Chapter 312, Tax Code. Chapter
164-7 312, Tax Code, applies to the district except as otherwise provided
164-8 by this chapter. In the case of any conflict between this chapter
164-9 and Chapter 312, Tax Code, the provisions of this chapter prevail.
164-10 (b) Notwithstanding any amendment or repeal of this chapter,
164-11 the applicable provisions of this chapter under which a tax
164-12 abatement agreement is entered into shall apply to the agreement
164-13 during the effective date of the agreement and those provisions
164-14 shall remain in effect for that purpose.
164-15 (c) The board may designate as a reinvestment zone for a
164-16 period of 50 years or until the termination of all outstanding tax
164-17 abatement agreements, whichever occurs last, an area within its
164-18 boundaries that satisfies the requirements of Section 312.202, Tax
164-19 Code.
164-20 (d) The district and the board have all of a municipality's
164-21 rights, powers, and authorization contained in Chapter 312, Tax
164-22 Code.
164-23 (e) The district shall enter into tax abatement agreements
164-24 for single-family residential property, as defined by the district,
164-25 for periods of 50 years and for property other than single-family
164-26 residential property for periods not to exceed:
165-1 (1) 25 years if the notice for the project is
165-2 submitted in 1999;
165-3 (2) 24 years if the notice for the project is
165-4 submitted in 2000;
165-5 (3) 23 years if the notice for the project is
165-6 submitted in 2001;
165-7 (4) 22 years if the notice for the project is
165-8 submitted in 2002;
165-9 (5) 21 years if the notice for the project is
165-10 submitted in 2003; and
165-11 (6) 20 years if the notice for the project is
165-12 submitted in 2004 or later.
165-13 (f) A tax abatement agreement is subject to the rights of
165-14 credit providers of the district, including holders of
165-15 tax-supported bonds of the district, regardless of when the bonds
165-16 were issued.
165-17 (g) Except as provided by Subsection (h), a tax abatement
165-18 agreement shall provide that the portion of the taxable value of
165-19 the property subject to the agreement that exceeds the taxable
165-20 value of the property for the year in which notice for the project
165-21 to which the agreement pertains is submitted is:
165-22 (1) subject to an effective tax rate of:
165-23 (A) 60 cents for each $100 of taxable value of
165-24 property if the property is residential real property other than
165-25 single-family residential property; and
165-26 (B) 50 cents for each $100 of taxable value of
166-1 property if the property is nonresidential real property; and
166-2 (2) exempt from taxation if the property is
166-3 single-family residential property.
166-4 (h) The applicable effective tax rate under Subsection (g)
166-5 is increased by the amount that the district's debt rate at the
166-6 time the notice for the project to which the tax abatement
166-7 agreement pertains is submitted exceeds 90 cents for each $100 of
166-8 taxable value of property but may not exceed 75 cents for each $100
166-9 of taxable value of property. This subsection applies only to a
166-10 tax abatement agreement pertaining to a project for which notice is
166-11 submitted in 2001 or later and does not apply to single-family
166-12 residential property.
166-13 (i) The district may enter into tax abatement agreements
166-14 with owners of real and personal property within the district for
166-15 proposed projects.
166-16 (j) The district shall adopt guidelines and criteria
166-17 governing tax abatement agreements by the district. The guidelines
166-18 and criteria must specify the criteria for an eligible project.
166-19 The guidelines and criteria are effective until the termination of
166-20 all outstanding tax abatement agreements. The district may amend
166-21 the guidelines and criteria by a vote of a majority of the
166-22 directors.
166-23 (k) The district shall adopt a form of tax abatement
166-24 agreement to be used by the district.
166-25 (l) A tax abatement agreement entered into by the district:
166-26 (1) must be consistent with:
167-1 (A) the guidelines and criteria adopted by the
167-2 district;
167-3 (B) the form of tax abatement agreement adopted
167-4 by the district; and
167-5 (C) the requirements of deed restrictions, or
167-6 other equivalent restrictions, enforced by the Las Colinas
167-7 Association or by the district; and
167-8 (2) may:
167-9 (A) include phased projects;
167-10 (B) incorporate the district's infrastructure
167-11 requirements; and
167-12 (C) generally describe the kind, number, and
167-13 location of all proposed improvements, subject to any change
167-14 provided by a notice of intent to construct the project, specifying
167-15 the details of the project, submitted by the owner to the district.
167-16 (m) Tax abatement agreements entered into by the district
167-17 are not required to contain identical terms as other tax abatement
167-18 agreements, if any, covering:
167-19 (1) the same property that are entered into by other
167-20 taxing units; or
167-21 (2) different property that are entered into by the
167-22 district.
167-23 (n) The district may enter into tax abatement agreements for
167-24 facilities and structures that commenced or were modified on or
167-25 after January 1, 1995, but before April 24, 1995.
167-26 (o) The district may tax at a reduced rate as provided by
168-1 Subsection (g) personal property located on property described in
168-2 Subsection (n) in each year covered by the agreement except for
168-3 personal property located on the property at any time before the
168-4 period covered by the agreement began.
168-5 Sec. 256.007. BOARD OF DIRECTORS. (a) All powers of the
168-6 district shall be exercised by a board of five directors. Each
168-7 director serves for a term of office as provided by this section
168-8 and until a successor is appointed and has qualified. If a
168-9 director ceases to possess the qualifications prescribed by this
168-10 section, the director's office shall be declared vacant by the
168-11 board and a successor shall be appointed by the city council of the
168-12 City of Irving.
168-13 (b) Each director must be at least 18 years of age and
168-14 possess one of the following qualifications:
168-15 (1) own land within the district subject to taxation;
168-16 (2) be a qualified voter residing within the district
168-17 at the time of qualification as a director;
168-18 (3) be an agent, employee, officer, or director of any
168-19 individual, corporation, trust, or partnership that owns or leases
168-20 real property within the district; or
168-21 (4) be a resident of the city of Irving.
168-22 (c) At least three of the five directors must qualify as
168-23 directors under Section 49.052(a), without consideration of any
168-24 exceptions from that subsection provided by other provisions of
168-25 Section 49.052. Section 49.052 applies only for purposes of this
168-26 section.
169-1 (d) Each director shall qualify by subscribing the
169-2 constitutional oath of office and by giving bond in the amount of
169-3 $5,000 for the faithful performance of the director's duties. The
169-4 directors' bonds must be approved by the district's board and
169-5 recorded in the official bond records of the county clerk of Dallas
169-6 County.
169-7 (e) Directors serve for staggered terms of four years, with
169-8 the terms of two or three directors expiring October 1 of each
169-9 odd-numbered year. Each director serves for a term of office as
169-10 provided by this subsection and until a successor is appointed and
169-11 takes office.
169-12 (f) Directors are appointed by the city council of the City
169-13 of Irving. All vacancies on the board shall be filled by
169-14 appointment to the unexpired term by the city council of the City
169-15 of Irving. The city council of the City of Irving may remove and
169-16 replace any director it appoints at any time without cause.
169-17 (g) Except for an action to dissolve the district under
169-18 state law or any other specific action taken by the city that must
169-19 be evidenced in writing, the city by its appointment and removal of
169-20 directors or any other action taken directly relating to any bond,
169-21 note, financial obligation, or contractual obligation of the
169-22 district, does not assume, agree to pay, or guarantee the payment
169-23 of any bond, note, or other financial obligation or undertaking of
169-24 the district, whether in the form of securities or in other
169-25 contractual forms, including the district's bonds.
169-26 (h) The directors shall establish in the district's bylaws
170-1 what shall constitute a quorum for any meeting, and a concurrence
170-2 of a majority of the quorum shall be necessary in all district
170-3 matters. The board shall prescribe the method of execution of all
170-4 contracts, the signing of checks, and the handling of any other
170-5 matters approved by the board as shown in the official minutes of
170-6 the district.
170-7 (i) Annually in the month of October, the board shall
170-8 reorganize and elect new officers as soon as practicable. The
170-9 board may designate one or more assistant secretaries and an
170-10 assistant treasurer, who may but need not be a member of the board.
170-11 The secretary or one of the assistant secretaries of the board
170-12 shall be responsible for keeping the minutes of the meetings and
170-13 official records of the board and may certify to any action taken
170-14 by the board.
170-15 (j) Each director is entitled to receive a per diem payment
170-16 of $50 for each regular or special board or committee meeting and
170-17 shall be reimbursed for actual expenses approved by the board. The
170-18 board shall hold regular and special meetings, at such times and on
170-19 such dates as the board shall determine, on giving notice as
170-20 required by the district's bylaws. The board shall designate a
170-21 meeting place or places. A meeting place of the district is a
170-22 public place for matters pertaining to the district's business.
170-23 (k) The board shall appoint a person to the office of tax
170-24 assessor-collector and may appoint deputies as the board considers
170-25 necessary. Each tax assessor-collector and deputy shall qualify by
170-26 executing a bond for $10,000 payable to the district and approved
171-1 by the board conditioned on the faithful performance of the
171-2 person's duties. The compensation of the tax assessor-collector
171-3 and deputies shall be fixed by the board. One of the directors
171-4 shall serve as treasurer of the district and shall see that all
171-5 funds of the district are deposited in the depository bank or banks
171-6 designated by the board as the official depository bank of the
171-7 district. To the extent that funds in the depository bank or banks
171-8 are not insured by the Federal Deposit Insurance Corporation, such
171-9 funds shall be secured in the manner provided by law for the
171-10 security of funds of counties of this state. Funds of the district
171-11 may be invested and reinvested at the direction of the board, its
171-12 treasurer, or other qualified representative in direct or indirect
171-13 obligations of the United States, the state, or any county, city,
171-14 or school district or other political subdivision of the state or
171-15 may be placed in certificates of deposit of state or national banks
171-16 within the state, provided that the same are secured in the manner
171-17 provided for the security of funds of counties of this state.
171-18 Sec. 256.008. ELECTIONS. Elections required to be held by
171-19 the district shall be called by the board. The results of the
171-20 elections shall be canvassed by the board. Elections shall be held
171-21 in accordance with the Election Code, except as otherwise provided
171-22 by this chapter. Notice of all district elections shall be given
171-23 by publication in a newspaper of general circulation in Dallas
171-24 County once a week for two consecutive weeks, with the first
171-25 publication at least 14 days before the election. Any elections
171-26 held by the district for any purpose may be held separately or may
172-1 be held at the same time as an election to be held for other
172-2 purposes, including a maintenance tax election, which may be held
172-3 on the same day as a bond election or any other election.
172-4 Elections held at the same time may be called by the board in a
172-5 single election order, and the results of the elections may be
172-6 canvassed in a single order.
172-7 Sec. 256.009. EXCLUSION AND ANNEXATION OF PROPERTY.
172-8 (a) The board may exclude land from the district and add land to
172-9 the district as provided by this section.
172-10 (b) The board may, solely on its own motion, call a hearing
172-11 on the question of exclusion of land from the district if the board
172-12 finds that the exclusion is practicable, just, or desirable and
172-13 that the holders of all outstanding bonds, notes, securities, and
172-14 other obligations of the district are or will be protected as a
172-15 result of the district's providing a substantial equivalent as
172-16 security in lieu of the excluded land for the bonds, notes,
172-17 securities, and other obligations.
172-18 (c) If the board determines that a hearing should be held on
172-19 the exclusion of land, the board shall give notice of a time and
172-20 place for the hearing by publishing the notice once a week for two
172-21 consecutive weeks in one or more newspapers of general circulation
172-22 in the district. The first publication shall appear at least 14
172-23 days before the hearing date.
172-24 (d) After considering all matters presented during the
172-25 hearing by the district's staff, property owners, taxpayers, and
172-26 others, on the board's finding and concluding that the exclusion of
173-1 land from the district is practicable, just, or desirable, and that
173-2 the holders of all outstanding bonds, notes, securities, and other
173-3 obligations of the district are or will be protected as a result of
173-4 the district's providing a substantial equivalent as security for
173-5 payment of the bonds, notes, securities, and other obligations in
173-6 the form of newly annexed property or other lawful and adequate
173-7 security, the board may, solely at its own discretion, enter an
173-8 order excluding the land and property from the district and shall
173-9 redefine in the order the boundaries of the district to embrace all
173-10 land not excluded. A copy of the order excluding the land and
173-11 redefining the boundaries of the district shall be filed in the
173-12 deed records of Dallas County.
173-13 (e) The district may annex property to the district in the
173-14 manner provided by Subchapter J, Chapter 49.
173-15 (f) The district must obtain the approval of the City of
173-16 Irving in the form of a city council resolution as a condition
173-17 precedent to the annexation of any additional land and the approval
173-18 of the district's annual operation and maintenance budget.
173-19 Sec. 256.010. ADDITIONAL SPECIFIC POWERS AND DUTIES.
173-20 (a) The board may expend funds, borrow money, and issue bond
173-21 anticipation notes, tax anticipation notes, and bonds or notes
173-22 payable from revenue derived from the ownership of all or any
173-23 designated part of the district's works, plant, improvements,
173-24 facilities, or equipment, including the revenue derived from the
173-25 district's raw water supply system and the use and lease of the
173-26 district's land and facilities after deduction of the reasonable
174-1 cost of maintaining and operating these facilities, and may levy
174-2 and collect maintenance taxes and carry out all acts and have all
174-3 power and authority in accordance with the provisions of Subchapter
174-4 E, Chapter 49, and Sections 49.057(f) and 49.107.
174-5 (b) The board may issue bonds pursuant to and in accordance
174-6 with Sections 49.106, 49.184, 49.215, 54.501, 54.507, 54.5161, and
174-7 54.521. Sections 49.181 and 49.182 shall not be applicable to the
174-8 district.
174-9 (c) The board may enter into and execute a credit agreement,
174-10 including a letter of credit, line of credit, convertible line of
174-11 credit, loan agreement, revolving credit agreement, reimbursement
174-12 agreement, insurance contract, commitment to purchase obligations,
174-13 or sale agreement, or may authorize and approve a commitment or
174-14 other contract or agreement in connection with the operation,
174-15 maintenance, financial management, and financing of the district.
174-16 The board by order or resolution shall fix the terms, conditions,
174-17 and covenants of any credit agreement. A credit agreement
174-18 authorized under this section is payable from and secured by the
174-19 sources and resources of the district as determined by the board,
174-20 including ad valorem taxes levied and collected by the district and
174-21 other lawfully available revenues of the district. The proceeds
174-22 received from a credit agreement may be used in furtherance of the
174-23 purposes of the district as provided by Section 59, Article XVI,
174-24 Texas Constitution, and this chapter, including the maintenance of
174-25 the district and its assets through the stabilization of the
174-26 district tax rate, improvements to district property, and the
175-1 ongoing maintenance of those improvements. The district may not
175-2 enter into a credit agreement payable from ad valorem taxes unless
175-3 that action has been approved by a majority of the qualified voters
175-4 of the district.
175-5 (d) The board may issue tax-supported bonds and notes and
175-6 revenue bonds and notes and make all expenditures of funds and
175-7 issue all bonds, notes, and credit agreements authorized under
175-8 Subsections (a), (b), and (c) as a political subdivision authorized
175-9 as an aggregator or an owner or joint owner of generation
175-10 facilities, lessor or lessee, and be authorized to take any and all
175-11 actions authorized for any political subdivisions pursuant to and
175-12 in accordance with Chapter 39, Title 2, the Public Utility
175-13 Regulatory Act, Utilities Code.
175-14 Sec. 256.011. WRITTEN NOTICE TO REAL PROPERTY PURCHASERS NOT
175-15 REQUIRED. Sections 49.452 and 49.453 do not apply to the district.
175-16 Sec. 256.012. USE OF MAINTENANCE TAX PROCEEDS. The board
175-17 may use the money received from maintenance taxes:
175-18 (1) to maintain, repair, and make additions,
175-19 extensions, and improvements to the district's properties, works,
175-20 projects, facilities, and improvements;
175-21 (2) to pay the principal of or interest on any tax
175-22 anticipation notes or bond anticipation notes or to pay other
175-23 contracts or obligations of the district; and
175-24 (3) for any other lawful purpose other than the
175-25 payment of the principal of or interest on bonds, for the payment
175-26 of which separate taxes shall be levied and collected to the extent
176-1 the bonds are required to be paid from taxes; provided, however,
176-2 that maintenance taxes may not be used for the purposes permitted
176-3 by Section 256.004(b) unless the district has complied with the
176-4 provisions of Section 256.004(c).
176-5 Sec. 256.013. LEVY, ASSESSMENT, AND COLLECTION OF TAXES.
176-6 The ad valorem plan of taxation shall be used by the district, and
176-7 the provisions of Subchapter G, Chapter 54, and the applicable
176-8 provisions of Title 1, Tax Code, shall be applicable to all matters
176-9 relating to the levy, assessment, and collection of both current
176-10 and delinquent taxes by the district.
176-11 Sec. 256.014. CONTRACTS. The district may enter into
176-12 contracts with the United States or any of its agencies, with the
176-13 City of Irving and any other public bodies, with individuals or
176-14 corporations, or with any other entity for the operation and
176-15 maintenance of or construction of any facility or improvement
176-16 authorized by this chapter. Any contract obligating the district
176-17 to make payments in whole or in part from ad valorem taxes, other
176-18 than maintenance taxes, shall be subject to approval at an election
176-19 held under the same procedures as those required for the issuance
176-20 of bonds payable from ad valorem taxes. All contracts, agreements,
176-21 and obligations previously incurred or entered into between the
176-22 City of Irving and the district shall remain in full force and
176-23 effect until the year 2023 or until the effective date of a
176-24 dissolution of the district by the exercise of a lawful right by
176-25 the city, whichever comes first, and those contracts, agreements,
176-26 and obligations are ratified and affirmed.
177-1 Sec. 256.015. RISK MANAGEMENT PROGRAM. The board may
177-2 implement a funded risk management program to self-insure the
177-3 district against such risks, liabilities, and casualties as the
177-4 board may determine. The board may:
177-5 (1) create or provide for a risk management fund and
177-6 pay or discharge from the fund such claims, losses, risks,
177-7 liabilities, and casualties as may be defined and specified by the
177-8 board, along with the expenses and costs of administering the fund;
177-9 (2) issue, guarantee, or otherwise pledge the
177-10 district's assets, properties, or credit to secure any and all such
177-11 bonds, notes, contracts, or other obligations as may be appropriate
177-12 for the creation of the risk management funds;
177-13 (3) notwithstanding any limitations in Section
177-14 256.014, levy, assess, collect, and pledge ad valorem taxes for the
177-15 payment of bonds, notes, contracts, and other obligations
177-16 authorized pursuant to Subsection (b), and, notwithstanding any
177-17 limitations contained in Section 256.012, pledge the district's
177-18 maintenance taxes for the payment of the bonds, notes, contracts,
177-19 and other obligations;
177-20 (4) organize a nonprofit corporation as a risk
177-21 management authority for the purpose of administering the risk
177-22 management fund and the risk management program in a manner
177-23 consistent with the provisions of this section and may contract
177-24 with that corporation and guarantee and secure its obligations and
177-25 indebtedness for that purpose;
177-26 (5) execute and deliver such other notes, bonds,
178-1 contracts, agreements, documents, certificates, or instruments and
178-2 perform such other acts and things as the board determines
178-3 necessary, advisable, or appropriate to implement and administer a
178-4 risk management program in a manner consistent with this section.
178-5 Sec. 256.016. EMINENT DOMAIN. The district shall have and
178-6 may exercise all rights of eminent domain provided in Chapter 49;
178-7 provided, however, that the district shall not exercise any right
178-8 of eminent domain for the purpose of acquiring any land or
178-9 improvements owned by the City of Irving.
178-10 Sec. 256.017. ABOLITION AND DISSOLUTION OF DISTRICT BY CITY
178-11 OF IRVING. The City of Irving shall have the right to abolish and
178-12 dissolve the district and to assume all bonded indebtedness and
178-13 other district obligations under Section 43.074, Local Government
178-14 Code.
178-15 Sec. 256.018. REGULATORY AND POLICE POWER. (a) The
178-16 district shall have all regulatory and police power under Chapters
178-17 49 and 54 except as provided by this section.
178-18 (b) All rules and regulations containing penal provisions to
178-19 be enforced by a peace officer shall be approved by the City of
178-20 Irving as a condition precedent to their enactment except as to
178-21 rules and regulations regulating privileges on the lakes, and on
178-22 walkways contiguous to the lakes, constructed or to be constructed
178-23 and owned or controlled by the district. The rules shall be
178-24 submitted to the City of Irving for review at least 30 days in
178-25 advance of approval of the rules by the district.
178-26 (c) The district may not make penal rules or regulations
179-1 that conflict with any City of Irving ordinances, including the
179-2 Irving Building Code, Fire Code, Traffic Ordinances, Electrical
179-3 Code, and Mechanical Code.
179-4 (d) The district may not promulgate rules or regulations
179-5 relating to the City of Irving's streets or roads, and the
179-6 district's peace officers may not enforce any rules or regulations
179-7 on the city's streets or roads.
179-8 (e) Peace officers employed by the district shall have the
179-9 power authorized in Chapter 49 except that such officers shall not
179-10 have the power to enforce city ordinances or state law but shall
179-11 have the authority to make arrests when necessary to prevent or
179-12 stop the commission of any offense against the rules and
179-13 regulations of the district, as provided in Section 49.216.
179-14 CHAPTER 257. FRANKLIN COUNTY WATER DISTRICT
179-15 Sec. 257.001. CREATION. (a) A conservation and reclamation
179-16 district to be known as the "Franklin County Water District" is
179-17 created. The district is a governmental agency, a body politic and
179-18 corporate, and a political subdivision of this state.
179-19 (b) The district is created under and is essential to
179-20 accomplish the purposes of Section 59, Article XVI, Texas
179-21 Constitution.
179-22 Sec. 257.002. DEFINITIONS. In this chapter:
179-23 (1) "Board" means the board of directors of the
179-24 district.
179-25 (2) "Director" means a member of the board.
179-26 (3) "District" means the Franklin County Water
180-1 District.
180-2 Sec. 257.003. TERRITORY. The area of the district consists
180-3 of all of Franklin County, and the boundaries of the district shall
180-4 be identical with the boundaries of that county.
180-5 Sec. 257.004. NO CONFIRMATION ELECTION, HEARING ON EXCLUSION
180-6 OF LAND OR PLAN OF TAXATION REQUIRED. It being found and
180-7 determined that all of the land included within the boundaries of
180-8 the district will benefit and that the district is created to serve
180-9 a public use and benefit, the board is not required to call a
180-10 confirmation election or to hold a hearing on the exclusion of
180-11 lands or a hearing on the adoption of a plan of taxation. The ad
180-12 valorem plan of taxation shall be used by the district.
180-13 Sec. 257.005. BOARD OF DIRECTORS. (a) All powers of the
180-14 district shall be exercised by a board of five directors. Each
180-15 director serves for a term of office as provided by this section
180-16 and until a successor is elected or appointed and has qualified. A
180-17 person may not serve as a director unless the person is at least 21
180-18 years of age and resides and owns land in the territorial limits of
180-19 the district. Each director shall subscribe the constitutional
180-20 oath of office and shall give bond in the amount of $5,000 for the
180-21 faithful performance of the person's duties as director. The cost
180-22 of the bond shall be paid by the district.
180-23 (b) Directors serve for four-year terms. A directors
180-24 election shall be held on the first Saturday in May of each
180-25 odd-numbered year to elect the appropriate number of directors.
180-26 Except as provided by this chapter, a directors election is held as
181-1 provided by Chapter 49 and the Election Code. Notice of the
181-2 election shall be published in accordance with the general law
181-3 applicable to water control and improvement districts. The
181-4 election order must state the time, places, and purpose of the
181-5 election. The board shall appoint presiding judges as necessary.
181-6 Each presiding judge shall appoint one assistant judge and at least
181-7 two clerks to assist in holding the election. As determined by the
181-8 board, the board may contract with the county clerk of Franklin
181-9 County to conduct its elections.
181-10 (c) One director represents the district as a whole and is
181-11 elected at large. A candidate for the at-large directorship must
181-12 be a qualified voter who resides in the district. One director
181-13 represents each of the county commissioners precincts in Franklin
181-14 County. The director for a precinct is elected by qualified voters
181-15 residing in the precinct. A candidate for a precinct's
181-16 directorship must be a qualified voter who resides in the precinct.
181-17 (d) Only qualified voters residing in the district are
181-18 entitled to vote at the election. Returns of the election shall be
181-19 made to and canvassed by the board, which shall enter its order
181-20 declaring the results of the election.
181-21 (e) Any candidate for director desiring to have the
181-22 candidate's name printed on the ballot may do so by a petition
181-23 signed by not less than 10 residents of the district who are
181-24 qualified to vote at the election. The petition must be presented
181-25 to the secretary of the board in accordance with Section
181-26 144.005(a), Election Code. A declaration of write-in candidacy
182-1 must be filed in accordance with Section 49.101.
182-2 (f) If a vacancy occurs in the membership of the board, the
182-3 remaining members of the board shall appoint a person from the
182-4 precinct where the vacancy occurs, or from the county in the case
182-5 of an at-large position, to fill the vacancy for the unexpired
182-6 term.
182-7 (g) A director is entitled to receive fees of office in
182-8 accordance with Section 49.060.
182-9 (h) The board shall elect from among its members a president
182-10 and a vice president and such other officers as in the judgment of
182-11 the board are necessary. The president is the chief executive
182-12 officer and the presiding officer of the board and has the same
182-13 right to vote as any other director. When the president is absent
182-14 or fails to or declines to act, the vice president shall perform
182-15 all duties and exercise all power conferred by this chapter on the
182-16 president. The board shall also appoint a secretary, who may or
182-17 may not be a member of the board.
182-18 (i) Three members of the board constitute a quorum for the
182-19 transaction of all business, and a favorable vote of a majority of
182-20 a quorum present is sufficient for the enactment of all measures.
182-21 The board shall hold regular meetings at least once a month at the
182-22 time and place designated by resolution or bylaws of the board.
182-23 The president or any two members may call special meetings as
182-24 necessary in the administration of the district's business provided
182-25 that, at least five days before the meeting date, the secretary
182-26 mails notice to each director, unless the director has waived
183-1 notice of special meetings in writing.
183-2 (j) The board shall keep and preserve a true and full
183-3 account of all its meetings and proceedings and shall preserve the
183-4 board's minutes, contracts, notices, accounts, receipts, and
183-5 records of all kinds. Those documents are the property of the
183-6 district and are subject to public inspection. A regular office
183-7 shall be established and maintained within the district for the
183-8 conduct of its business.
183-9 (k) All records and accounts must conform to approved
183-10 methods of bookkeeping. The board shall have an audit made and
183-11 completed annually, as soon as practicable after the expiration of
183-12 each calendar year, of the books of account and financial records
183-13 of the district for that calendar year. The audit must be made by
183-14 an individual public accountant or firm of public accountants. The
183-15 report on the audit shall be submitted at the first regular meeting
183-16 of the board after the report is completed. One copy of the report
183-17 shall be filed with the office of the district, one with the
183-18 depository of the district, and one in the office of the auditor,
183-19 all of which shall be open to public inspection. Additional copies
183-20 of the report shall be filed with any state or governmental
183-21 agencies as may be required by law.
183-22 Sec. 257.006. DISTRICT POWERS. (a) The district has all
183-23 the rights, powers, and privileges conferred by the general laws of
183-24 the state applicable to water control and improvement districts
183-25 created under the authority of Section 59, Article XVI, Texas
183-26 Constitution. To the extent that general laws applicable to water
184-1 control and improvement districts may be inconsistent or in
184-2 conflict with this chapter, the provisions of this chapter prevail.
184-3 (b) It is the intention of the legislature that the district
184-4 have all the power and authority necessary to fully qualify and
184-5 gain the benefits of all laws that are helpful in carrying out the
184-6 purposes for which the district is created, and the provisions of
184-7 all such laws of which the district may lawfully avail itself are
184-8 adopted by this reference and made applicable to the district.
184-9 (c) The district shall exercise the powers, privileges, and
184-10 functions provided by this section, including the power to:
184-11 (1) control, store, preserve, and distribute its
184-12 waters and floodwaters and the waters of its rivers and streams for
184-13 all useful purposes and to accomplish these ends by all practicable
184-14 means, including the construction, maintenance, and operation of
184-15 all appropriate improvements, plants, works, and facilities and the
184-16 acquisition of water rights and all other properties, lands,
184-17 tenements, easements, and rights necessary to the purpose of the
184-18 organization of the district;
184-19 (2) process, store, and distribute water for
184-20 municipal, domestic, irrigation, and industrial purposes, subject
184-21 to the requirements of Chapter 11;
184-22 (3) dispose of property or rights in property when the
184-23 property or rights are no longer needed for the purposes for which
184-24 the district is created and to lease property or rights in property
184-25 for purposes that will not interfere with the use of the property
184-26 of the district;
185-1 (4) cooperate with and contract with the state or the
185-2 United States or any of their departments or agencies to carry out
185-3 any of the powers or to further any of the purposes of the district
185-4 and, for such purposes, to receive grants, loans, or advancements
185-5 from the state or United States or their departments or agencies;
185-6 and
185-7 (5) make or cause to be made surveys and engineering
185-8 investigations for the information of the district to facilitate
185-9 the accomplishment of its purposes, to employ a general manager,
185-10 attorneys, accountants, engineers, financial experts, or other
185-11 technical or nontechnical employees or assistants and set the
185-12 amount and manner of their compensation, and to provide for the
185-13 payment of all expenditures considered essential to the proper
185-14 operation and maintenance of the district and its affairs.
185-15 (d) The district may exercise all functions to permit the
185-16 accomplishment of its purposes including the acquisition, within or
185-17 outside the district, of land, easements, and rights-of-way and any
185-18 other character of property incident to or necessary in carrying
185-19 out the purposes and work of the district by way of gift, device,
185-20 purchase, leasehold, or condemnation. The right of eminent domain
185-21 is expressly conferred on the district, and the procedure with
185-22 reference to condemnation, the assessment of and estimating of
185-23 damages, payment, appeal, the entering upon the property pending
185-24 appeal, and other procedures prescribed in Chapter 21, Property
185-25 Code, apply to the district.
185-26 (e) If the district, in the exercise of the power of eminent
186-1 domain or power of relocation or any other power granted under this
186-2 chapter, makes necessary the taking of any property or the
186-3 relocation, raising, rerouting, changing the grade, or altering the
186-4 construction of any highway, railroad, electric transmission line,
186-5 telephone or telegraph properties and facilities, or pipeline, all
186-6 such necessary taking, relocation, raising, rerouting, changing of
186-7 grade, or alteration of construction shall be accomplished at the
186-8 expense of the district. It is provided, however, that the expense
186-9 of the district shall be strictly confined to that amount which is
186-10 equal to the actual cost of the property taken or work required
186-11 without enhancement of the property and after deducting the net
186-12 salvage value which may be derived from any property taken.
186-13 (f) The district may do any and all other acts or things
186-14 necessary or proper to carry into effect the purpose for which the
186-15 district is created and organized.
186-16 Sec. 257.007. AWARDING CONTRACTS. The district shall comply
186-17 with the requirements of Section 49.273 when awarding a contract.
186-18 Sec. 257.008. ISSUANCE OF BONDS. (a) For the purpose of
186-19 providing funds for purchasing or otherwise providing works,
186-20 plants, facilities, or appliances necessary to the accomplishment
186-21 of the purposes authorized by this chapter, and for the purpose of
186-22 carrying out any other power or authority conferred by this
186-23 chapter, the district may borrow money and issue negotiable bonds
186-24 payable from such ad valorem taxes or revenues or from both taxes
186-25 and revenues of the district as are pledged by resolution of the
186-26 board. Pending the issuance of definitive bonds, the board may
187-1 authorize the delivery of negotiable interim bonds or notes
187-2 eligible for exchange or substitution by use of definitive bonds.
187-3 (b) Bonds must be issued in the name of the district, signed
187-4 by the president, and attested by the secretary and must bear the
187-5 seal of the district. The signature of the president or secretary,
187-6 or of both, may be printed or lithographed on the bonds authorized
187-7 by the board. The seal of the district may be impressed on the
187-8 bonds or may be printed or lithographed on the bonds, if so
187-9 authorized.
187-10 (c) Bonds must mature, serially or otherwise, in not to
187-11 exceed 40 years and may be sold at a price and under terms
187-12 determined by the board to be the most advantageous reasonably
187-13 obtainable, provided that the interest cost to the district,
187-14 calculated by the use of standard bond interest tables currently in
187-15 use by insurance companies and investment houses, does not exceed
187-16 six percent per year. Within the discretion of the board, bonds
187-17 may be made callable before maturity at such times and prices as
187-18 may be prescribed in the resolution authorizing the bonds and may
187-19 be made registrable as to principal or as to both principal and
187-20 interest.
187-21 (d) Bonds may be issued in one or more than one series and
187-22 from time to time as required for carrying out the purposes of this
187-23 chapter.
187-24 (e) Bonds may be secured by a pledge of all or part of the
187-25 net revenues of the district, of the net revenues of one or more
187-26 contracts made before or after the bonds are issued, or of other
188-1 revenues and income specified by the resolution of the board or in
188-2 the trust indenture. A pledge may reserve the right, under
188-3 conditions specified in the pledge, to issue additional bonds that
188-4 would be on a parity with or subordinate to the bonds being issued.
188-5 In this subsection, "net revenues" means the gross revenues of the
188-6 district less the amount necessary to pay the reasonable cost of
188-7 maintaining and operating the district and its properties.
188-8 (f) If bonds are issued that are payable wholly or partially
188-9 from ad valorem taxes, the board shall levy, assess, and cause to
188-10 be collected a tax sufficient to pay the bonds and the interest on
188-11 the bonds as the bonds and interest become due. In levying the
188-12 tax, the board shall take into consideration reasonable
188-13 delinquencies and costs of collection. In the case of bonds
188-14 payable partially from ad valorem taxes, the rate of the tax for
188-15 any year may be set after giving consideration to the money
188-16 reasonably expected to be received from the pledged revenues
188-17 available for payment of principal and interest and to the extent
188-18 and in the manner permitted by the resolution authorizing the
188-19 issuance of the bonds.
188-20 (g) If bonds payable wholly from revenues are issued, the
188-21 board shall set, establish, and from time to time as necessary
188-22 revise the rates of compensation for the sale of water and other
188-23 services furnished, supplied, and rendered by the district and
188-24 collect the rates in amounts sufficient to pay the expenses of
188-25 operating and maintaining the facilities of the district, to pay
188-26 the bonds as they mature and the interest as it accrues, and to
189-1 maintain the reserve and other funds as provided in the resolution
189-2 authorizing the bonds. If bonds payable partially from revenues
189-3 are issued, the board shall set, establish, and from time to time
189-4 as necessary revise the rates of compensation for the sale of water
189-5 and other services furnished, supplied, and rendered by the
189-6 district and shall collect the rates in amounts sufficient to
189-7 assure compliance with the resolution authorizing the bonds.
189-8 (h) From the proceeds of the sale of bonds, the district may
189-9 set aside an amount for the payment of interest expected to accrue
189-10 during construction and for a reserve interest and sinking fund,
189-11 and this provision may be made in the resolution authorizing the
189-12 bonds. Proceeds from the sale of bonds may also be used for the
189-13 payment of all expenses necessarily incurred in accomplishing the
189-14 purposes for which the district is created, including expenses of
189-15 its organization, of engineering investigations, and of the
189-16 issuance and sale of the bonds. The proceeds from the sale of the
189-17 bonds may be placed on time deposit with the district's depository
189-18 bank or may be temporarily invested in direct obligations of the
189-19 United States government maturing in not more than one year from
189-20 the date of investment.
189-21 (i) In the event of a default or a threatened default in the
189-22 payment of principal of or interest on bonds payable wholly or
189-23 partially from revenues, any court of competent jurisdiction may,
189-24 on petition of the holders of the outstanding bonds, appoint a
189-25 receiver with authority to collect and receive all income of the
189-26 district except taxes, employ and discharge agents and employees of
190-1 the district, take charge of the district's funds on hand, except
190-2 funds received from taxes, unless commingled, and manage the
190-3 proprietary affairs of the district without consent or hindrance by
190-4 the board. The receiver may also be authorized to sell or make
190-5 contracts for the sale of water or other services furnished by the
190-6 district or renew the contracts with the approval of the court
190-7 appointing the receiver. The court may vest the receiver with
190-8 other powers and duties the court finds necessary for the
190-9 protection of the holders of the bonds. The resolution authorizing
190-10 the issuance of the bonds or the trust indenture securing them may
190-11 limit or qualify the rights of less than all of the outstanding
190-12 bonds payable from the same source to institute or prosecute any
190-13 litigation affecting the district's property or income.
190-14 (j) The provisions of Section 49.181 relating to commission
190-15 approval of plans and specifications for projects to be financed by
190-16 the sale of bonds apply to the sale of bonds under this chapter.
190-17 Sec. 257.009. REFUNDING BONDS. (a) The district may issue
190-18 refunding bonds for the purpose of refunding any outstanding bonds
190-19 authorized by this chapter and the interest on the bonds.
190-20 Refunding bonds may be issued to refund more than one series of
190-21 outstanding bonds and may combine the pledges of the outstanding
190-22 bonds for the security of the refunding bonds, and the refunding
190-23 bonds may be secured by other or additional revenues and mortgage
190-24 liens.
190-25 (b) The provisions of this chapter with respect to the
190-26 issuance by the district of other bonds, their security, their
191-1 approval by the attorney general, and the remedies of the holders
191-2 are applicable to refunding bonds. Refunding bonds shall be
191-3 registered by the comptroller on surrender and cancellation of the
191-4 bonds to be refunded, but in lieu of that procedure, the resolution
191-5 authorizing the issuance of the refunding bonds may provide that
191-6 the refunding bonds shall be sold and the proceeds of the sale
191-7 deposited in the bank where the original bonds were payable, in
191-8 which case the refunding bonds may be issued in an amount
191-9 sufficient to pay the principal of and interest on the original
191-10 bonds to their effective option date or maturity date, and the
191-11 comptroller shall register the refunding bonds without concurrent
191-12 surrender and cancellation of the original bonds.
191-13 Sec. 257.010. TRUST INDENTURE. (a) Bonds, including
191-14 revenue bonds, authorized by this chapter that are not payable
191-15 wholly from ad valorem taxes may be additionally secured by a trust
191-16 indenture under which the trustee may be a bank with trust powers
191-17 located either within or outside the state. The bonds may, within
191-18 the discretion of the board, be additionally secured by a deed of
191-19 trust or mortgage lien on physical properties of the district and
191-20 all franchises, easements, water rights and appropriation permits,
191-21 leases and contracts, and all rights appurtenant to the properties,
191-22 vesting in the trustee power to sell the properties for payment of
191-23 the indebtedness, power to operate the properties, and all other
191-24 powers and authority for the further security of the bonds.
191-25 (b) The trust indenture, regardless of the existence of a
191-26 deed of trust or mortgage lien on the properties, may contain any
192-1 provisions prescribed by the board for the security of the bonds
192-2 and the preservation of the trust estate, may make provision for
192-3 amendment or modification of the trust indenture and for the
192-4 issuance of bonds to replace lost or mutilated bonds, may condition
192-5 the right to expend district money or sell district property on
192-6 approval by a registered professional engineer selected as provided
192-7 in the trust indenture, and may make provision for the investment
192-8 of funds of the district.
192-9 (c) A purchaser under a sale under a deed of trust lien,
192-10 where one is given, is the absolute owner of the properties,
192-11 facilities, and rights purchased and has the right to maintain and
192-12 operate the properties, facilities, and rights.
192-13 Sec. 257.011. BOND ELECTIONS. (a) Bonds payable wholly or
192-14 partially from ad valorem taxes, except refunding bonds, may not be
192-15 issued unless authorized at an election at which only the qualified
192-16 voters who reside in the district may vote and a majority of the
192-17 votes cast is in favor of the issuance of the bonds. Bonds not
192-18 payable wholly or partially from ad valorem taxes may be issued
192-19 without an election.
192-20 (b) A bond election described by Subsection (a) may be
192-21 called by the board without a petition. The resolution calling the
192-22 election must specify the time and place or places of holding the
192-23 election, the purpose for which the bonds are to be issued, the
192-24 maximum amount of the bonds, the maximum interest rate, the maximum
192-25 maturity of the bonds, the form of the ballot, and the presiding
192-26 judge for each voting place. The presiding judge serving at each
193-1 voting place shall appoint one assistant judge and at least two
193-2 clerks to assist in holding the election. Notice of the election
193-3 for the issuance of bonds shall be given by publication of a
193-4 substantial copy of the resolution calling the election in a
193-5 newspaper with general circulation in the district once each week
193-6 for at least four consecutive weeks. The first publication must
193-7 appear not less than 28 days before the election.
193-8 (c) The returns of the election shall be made to and
193-9 canvassed by the board.
193-10 (d) Except as otherwise provided in this chapter, the
193-11 Election Code applies to bond elections. If a bond issue election
193-12 fails, another bond election may not be called for a period of six
193-13 months.
193-14 Sec. 257.012. APPROVAL AND REGISTRATION OF BONDS. After
193-15 bonds, including refunding bonds, are authorized by the district,
193-16 the bonds and the record relating to their issuance shall be
193-17 submitted to the attorney general for examination as to their
193-18 validity. If the bonds recite that they are secured by a pledge of
193-19 the proceeds of a contract previously made between the district and
193-20 a city or other governmental agency, authority, or district, a copy
193-21 of the contract and the proceedings of the city or other
193-22 governmental agency, authority, or district authorizing the
193-23 contract shall also be submitted to the attorney general. If the
193-24 bonds have been authorized and the contract has been made in
193-25 accordance with the constitution and laws of the state, the
193-26 attorney general shall approve the bonds and the contract and the
194-1 bonds shall then be registered by the comptroller. After the
194-2 approval and registration, the bonds and the contract, if any, are
194-3 valid and binding and are incontestable for any cause.
194-4 Sec. 257.013. TAXES AUTHORIZED. (a) On a favorable
194-5 majority vote of the qualified voters of the district voting at an
194-6 election held for the purpose within the boundaries of the
194-7 district, the board may levy, assess, and collect annual taxes to
194-8 provide funds necessary to construct or acquire, maintain, and
194-9 operate works, plants, and facilities considered essential or
194-10 beneficial to the district and its purposes and, when so
194-11 authorized, may also levy, assess, and collect annual taxes to
194-12 provide funds adequate to defray the cost of the maintenance,
194-13 operation, and administration of the district.
194-14 (b) Elections for the levy of such taxes shall be ordered by
194-15 the board and notice of the election shall be given and the
194-16 election shall be held and conducted and the results of the
194-17 election determined in the manner provided in this chapter with
194-18 relation to elections for the authorization of bonds. In calling
194-19 an election for taxes under this section, the board shall specify
194-20 the maximum rate of tax that is sought to be levied, and no tax in
194-21 excess of that amount may be levied without submitting the question
194-22 of the increased rate of taxation at an election as provided in
194-23 this section.
194-24 (c) Taxes levied by the district for any purpose constitute
194-25 a lien on the property levied against, and limitation shall not bar
194-26 the enforcement or collection of the taxes.
195-1 Sec. 257.014. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
195-2 DEPOSITS. Bonds of the district are legal and authorized
195-3 investments for banks, savings banks, trust companies, building and
195-4 loan associations, savings and loan associations, insurance
195-5 companies, fiduciaries, and trustees, for sinking funds of cities,
195-6 towns and villages, counties, school districts, or other political
195-7 subdivisions of the state, and for all public funds of the state or
195-8 its agencies, including the state permanent school fund. The bonds
195-9 are eligible to secure deposits of all public funds of the state
195-10 and all public funds of cities, towns, villages, counties, school
195-11 districts, or other political subdivisions or corporations of the
195-12 state, and the bonds are lawful and sufficient security for the
195-13 deposits to the extent of their value when accompanied by all
195-14 unmatured coupons.
195-15 Sec. 257.015. DISTRICT DEPOSITORY. The board shall
195-16 designate one or more banks within the district to serve as
195-17 depository for the funds of the district. All funds of the
195-18 district shall be deposited in the depository bank or banks except
195-19 that sufficient funds shall be remitted to the bank or banks for
195-20 payment of the principal of and interest on the outstanding bonds
195-21 of the district and in time that the funds may be received by the
195-22 bank or banks on or before the date of the maturity of the
195-23 principal and interest to be paid. To the extent that funds in the
195-24 depository bank or banks are not insured by the Federal Deposit
195-25 Insurance Corporation, the funds shall be secured in the manner
195-26 provided by law for the security of county funds. Membership on
196-1 the board of an officer or director of a bank shall not disqualify
196-2 that bank from being designated as depository.
196-3 Sec. 257.016. DISTRICT AND BONDS EXEMPT FROM TAXATION. The
196-4 accomplishment of the purposes stated in this chapter will benefit
196-5 the people of this state and improve their properties and
196-6 industries, and the district in carrying out the purposes of this
196-7 chapter will be performing an essential public function under
196-8 Section 59, Article XVI, Texas Constitution, and may not be
196-9 required to pay any tax or assessment on a project or any part of
196-10 the project, and the bonds issued under this chapter and the
196-11 transfer of and income from the bonds, including the profits made
196-12 on the sale of the bonds, shall at all times be free from taxation
196-13 within the state.
196-14 Sec. 257.017. WATER SUPPLY CONTRACTS. The district may
196-15 enter into contracts with cities and others for supplying water
196-16 services to them. The district may also contract with any city for
196-17 the rental or leasing of, or for the operation of, the city's water
196-18 production, water supply, or water filtration or purification and
196-19 water supply facilities. The contract may be on such terms, for
196-20 such consideration, and for such time as the parties may agree, and
196-21 the contract may provide that it shall continue in effect until
196-22 bonds specified in the contract and any refunding bonds issued in
196-23 lieu of such bonds are paid.
196-24 Sec. 257.018. ACQUISITION OF WATER AND STORAGE CAPACITY IN
196-25 RESERVOIRS. The district may lease or acquire rights in and to
196-26 storage and storage capacity in any reservoir constructed or to be
197-1 constructed by any person, firm, corporation, or public agency or
197-2 from the United States government or any of its agencies. The
197-3 district may also purchase or make contracts for the purchase of
197-4 water or a water supply from any person or firm, corporation, or
197-5 public agency or from the United States government or any of its
197-6 agencies.
197-7 CHAPTER 258. GUADALUPE-BLANCO RIVER AUTHORITY
197-8 Sec. 258.001. CREATION. (a) A conservation and reclamation
197-9 district to be known as the "Guadalupe-Blanco River Authority" is
197-10 created. The authority is a governmental agency and body politic
197-11 and corporate.
197-12 (b) The authority is created under and is essential to
197-13 accomplish the purposes of Section 59, Article XVI, Texas
197-14 Constitution.
197-15 (c) The authority may exercise the rights, privileges, and
197-16 functions provided by Section 59, Article XVI, Texas Constitution,
197-17 and this chapter including, to the extent authorized by this
197-18 chapter, the control, storage, preservation, and distribution of
197-19 storm waters, floodwaters, and the waters of rivers and streams,
197-20 including the Guadalupe and Blanco rivers and their tributaries,
197-21 for irrigation, power, and all other useful purposes; the
197-22 reclamation and irrigation of arid, semiarid, and other lands
197-23 needing irrigation; the reclamation and drainage of overflowed
197-24 lands and other lands needing drainage, but not the reclamation or
197-25 drainage of coastal wetlands or inland marshes; the conservation
197-26 and development of the forests, water, and hydroelectric power of
198-1 the state; the navigation of inland waters; and the preservation
198-2 and conservation of all such natural resources of the state.
198-3 (d) Nothing in this chapter or in any other law shall be
198-4 construed as authorizing the authority to levy or collect taxes or
198-5 assessments or to create any indebtedness payable out of taxes or
198-6 assessments or in any way to pledge the credit of the state.
198-7 Sec. 258.002. DEFINITIONS. In this chapter:
198-8 (1) "Authority" means the Guadalupe-Blanco River
198-9 Authority.
198-10 (2) "Board" means the board of directors of the
198-11 authority.
198-12 (3) "Director" means a member of the board.
198-13 Sec. 258.003. TERRITORY. The authority consists of all the
198-14 territory within the boundaries of Hays, Comal, Guadalupe,
198-15 Caldwell, Gonzales, DeWitt, Victoria, Kendall, Refugio, and Calhoun
198-16 counties.
198-17 Sec. 258.004. POWERS OF THE AUTHORITY. (a) Except as
198-18 expressly limited by this chapter, the authority may exercise all
198-19 powers, rights, privileges, and functions conferred by general law
198-20 on any district or districts, excluding groundwater conservation
198-21 districts, created under Section 59, Article XVI, Texas
198-22 Constitution, including the power:
198-23 (1) to control, store, and preserve, within or
198-24 adjoining the boundaries of the authority, the waters of any rivers
198-25 and streams, including the waters of the Guadalupe and Blanco
198-26 rivers and their tributaries, for all useful purposes and to use,
199-1 distribute, and sell such waters, within the boundaries of the
199-2 authority, for any such purposes;
199-3 (2) to conserve, preserve, and develop groundwater
199-4 resources within the boundaries of the authority, subject to any
199-5 applicable regulation by the state or any political subdivision,
199-6 for all useful purposes and to use, distribute, and sell
199-7 groundwater, within the boundaries of the authority, for any such
199-8 purposes;
199-9 (3) to acquire water, water supply facilities, and
199-10 conservation storage capacity within or outside the authority from
199-11 any person, including the state or any of its agencies and
199-12 subdivisions and the United States and any of its agencies and
199-13 subdivisions;
199-14 (4) to use, distribute, and sell, outside the
199-15 boundaries of the authority, any waters that may be controlled,
199-16 stored, preserved, conserved, developed, or acquired by the
199-17 authority, if the board determines that adequate provision can be
199-18 made to continue to serve the water requirements within the
199-19 boundaries of the authority; provided, however, that the authority
199-20 may not enter into any agreement that contemplates or results in
199-21 the removal from the watershed of the Guadalupe and Blanco rivers
199-22 and their tributaries of any surface water of the authority
199-23 necessary to supply the reasonably foreseeable future water
199-24 requirements for municipal uses within such watershed during the
199-25 next ensuing 50-year period, except on a temporary, interim basis;
199-26 (5) to develop and generate water power and electric
200-1 energy within the boundaries of the authority and to distribute and
200-2 sell water power and electric energy, within or outside the
200-3 boundaries of the authority;
200-4 (6) to prevent or aid in the prevention of damage to
200-5 person or property from the waters of the Guadalupe and Blanco
200-6 rivers and their tributaries;
200-7 (7) to forest and reforest and to aid in the foresting
200-8 and reforesting of the watershed area of the Guadalupe and Blanco
200-9 rivers and their tributaries and to prevent and to aid in the
200-10 prevention of soil erosion and floods within the watershed area;
200-11 (8) to develop the navigation of inland waters within
200-12 the boundaries of the authority and any facilities in aid of that
200-13 purpose;
200-14 (9) to develop the reclamation and drainage of
200-15 overflowed lands and other lands needing drainage within the
200-16 boundaries of the authority and any facilities in aid of those
200-17 purposes but not the power to reclaim or drain coastal wetlands or
200-18 inland marshes;
200-19 (10) to develop the collection, transportation,
200-20 treatment, disposal, and handling of any waste, as that term is
200-21 defined by general law, and any facilities in aid of those
200-22 purposes, but if sanitary sewer facilities for the collection,
200-23 treatment, and disposal of sewage are to be constructed or acquired
200-24 within a city's corporate limits, only with the consent of the
200-25 affected city;
200-26 (11) to conserve and develop waters and lands for
201-1 recreation purposes and any facilities in aid of those purposes;
201-2 (12) to acquire by purchase, lease, or gift or in any
201-3 other manner, other than by condemnation, and to maintain, use, and
201-4 operate property of any kind, real, personal, or mixed, or any
201-5 interest in property, within or outside the boundaries of the
201-6 authority, necessary or convenient to the exercise of the powers,
201-7 rights, privileges, and functions conferred on the authority by
201-8 this chapter;
201-9 (13) to acquire by condemnation property of any kind,
201-10 real, personal, or mixed, or any interest in the property, within
201-11 or outside the boundaries of the authority, other than property or
201-12 any interest in property outside the boundaries of the authority
201-13 owned by any body politic, that is necessary or convenient to the
201-14 exercise of the powers, rights, privileges, and functions conferred
201-15 on the authority by this chapter, in the manner provided by general
201-16 law with respect to condemnation or, at the option of the
201-17 authority, in the manner provided by the statutes relating to
201-18 condemnation by districts organized under general law pursuant to
201-19 Section 59, Article XVI, Texas Constitution;
201-20 (14) subject to the provisions of this chapter, to
201-21 sell, lease, or otherwise dispose of property of any kind, real,
201-22 personal, or mixed, or any interest in the property, that the board
201-23 determines is not necessary to accomplish the purposes of the
201-24 authority or whose sale, lease, or disposition, in the judgment of
201-25 the board, is necessary or convenient to the exercise of the
201-26 powers, rights, privileges, and functions conferred on the
202-1 authority by this chapter or by general law;
202-2 (15) to overflow and inundate any public lands and
202-3 public property and to require the relocation of roads, pipelines,
202-4 transmission lines, railroads, cemeteries, and highways in the
202-5 manner and to the extent permitted to districts organized under
202-6 general law pursuant to Section 59, Article XVI, Texas
202-7 Constitution; provided that if the authority requires the
202-8 relocation, raising, lowering, rerouting, change in grade, or
202-9 alteration of the construction of any railroad, transmission lines,
202-10 conduits, poles, properties, facilities, or pipelines in the
202-11 exercise of the power of eminent domain or any other power, all of
202-12 the relocation, raising, lowering, rerouting, changes in grade, or
202-13 alteration of construction shall be at the sole expense of the
202-14 authority, whereby the term "sole expense" means the actual cost of
202-15 relocation, raising, lowering, rerouting, change in grade, or
202-16 alteration of construction to provide comparable replacement
202-17 without enhancement of facilities, after deducting the net salvage
202-18 value derived from the old facility;
202-19 (16) to construct, extend, improve, maintain, and
202-20 reconstruct, to cause to be constructed, extended, improved,
202-21 maintained, and reconstructed, and to use and operate facilities of
202-22 any kind necessary or convenient to the exercise of the powers,
202-23 rights, privileges, and functions conferred on the authority by
202-24 this chapter or by general law;
202-25 (17) to sue and to be sued in the authority's
202-26 corporate name;
203-1 (18) to adopt, use, and alter a corporate seal;
203-2 (19) to invest and reinvest the funds of the
203-3 authority;
203-4 (20) to make bylaws for the management and regulation
203-5 of the authority's affairs;
203-6 (21) to appoint officers, agents, and employees, to
203-7 prescribe their duties and to set their compensation;
203-8 (22) to make contracts and execute instruments
203-9 necessary or convenient to the exercise of the powers, rights,
203-10 privileges, and functions conferred on the authority by this
203-11 chapter or general law for such term and with such provisions as
203-12 the board determines to be in the best interests of the authority
203-13 (including contracts with the state and the United States, and any
203-14 corporation or agency of either the state or the United States, and
203-15 districts, cities, towns, persons, organizations, associations,
203-16 firms, corporations, entities, or others, as the board determines
203-17 necessary or proper for or in connection with any corporate
203-18 purpose) to provide for the construction, acquisition, ownership,
203-19 financing, operation, maintenance, sale, leasing to or from, or
203-20 other use or disposition of any facilities authorized to be
203-21 developed, preserved, conserved, acquired, or constructed under
203-22 this chapter or general law, including any improvements,
203-23 structures, facilities, and equipment and all other property of any
203-24 kind in connection with such improvements, structures, facilities,
203-25 and equipment and any lands, leaseholds, and easements and any
203-26 interests in any of the property described by this subdivision;
204-1 (23) to authorize and allow any of the persons
204-2 described by Subdivision (22), including the state and the United
204-3 States, and any corporation or agency of either the state or the
204-4 United States, and districts, agencies, cities, towns, persons,
204-5 organizations, associations, firms, corporations, entities, or
204-6 others, to participate with the authority in the joint
204-7 construction, acquisition, ownership, financing, operation, and
204-8 maintenance of the improvements, structures, facilities, and
204-9 equipment described by Subdivision (22) and any other property in
204-10 connection with the improvements, structures, facilities, and
204-11 equipment and such lands, leaseholds, easements, and interests in
204-12 the improvements, structures, facilities, and equipment and the
204-13 other property as the board determines necessary or proper for or
204-14 in connection with any corporate purpose, and to allow such persons
204-15 to receive such portion of the revenues derived from projects or
204-16 property described by this subdivision as the board determines
204-17 just, equitable, and proper; and
204-18 (24) to borrow money for its corporate purposes,
204-19 including the power to borrow money and accept grants from persons,
204-20 including the state and the United States or any corporation or
204-21 agency created or designated by the state or the United States,
204-22 and, in connection with any such loan or grant, to enter into such
204-23 agreements as the state or the United States or the corporations or
204-24 agency may require; and to make and issue negotiable bonds or notes
204-25 for funds borrowed, in the manner and to the extent provided in
204-26 this chapter, and to refund or refinance any outstanding bonds or
205-1 notes and to make and issue negotiable bonds or notes for that
205-2 purpose in the manner and to the extent provided in this chapter.
205-3 (b) Nothing in this chapter shall be construed to authorize
205-4 the issuance of any bonds, notes, or other evidences of
205-5 indebtedness of the authority except as specifically provided in
205-6 this chapter, and no issuance of bonds, notes, or other evidences
205-7 of indebtedness of the authority shall ever be authorized except by
205-8 this chapter or general law.
205-9 (c) Nothing in this chapter shall be construed as conferring
205-10 any water rights on the authority or as setting any priority of
205-11 rights. The authority shall obtain its water rights by application
205-12 to and permit from the commission as provided by general law, and
205-13 nothing in this chapter shall be construed as authorizing the
205-14 authority to make any regulation of the withdrawal of groundwater.
205-15 (d) To the extent the provisions of general law that are
205-16 adopted by reference in this chapter may be in conflict with the
205-17 express provisions of this chapter, the provisions of this chapter
205-18 shall prevail unless the general law is made cumulative. The
205-19 rights, powers, privileges, authority, and functions granted to the
205-20 authority under this chapter, and the authority itself, are subject
205-21 to Chapters 11, 12, 17, and 26.
205-22 Sec. 258.005. CONTINUING OVERSIGHT. The powers and duties
205-23 of the authority as provided by this chapter are subject to the
205-24 continuing rights of oversight by the state. The oversight shall
205-25 be exercised through the commission. The commission shall be
205-26 charged with the authority and duty to approve, or to refuse to
206-1 approve, the adequacy of any plan or plans for flood control or
206-2 conservation improvement purposes devised by the authority for the
206-3 achievement of the plans and purposes intended in the creation of
206-4 the authority and which plans contemplate improvements supervised
206-5 by the state authorities under the provisions of general law,
206-6 excluding federal projects. Nothing in this section affects the
206-7 commission's permitting authority.
206-8 Sec. 258.006. BOARD OF DIRECTORS; COMPENSATION; VOTING
206-9 REQUIREMENTS. (a) The powers, rights, privileges, and functions
206-10 of the authority shall be exercised by a board, which shall consist
206-11 of nine directors. The board is a state board of a state agency as
206-12 contemplated by Section 30a, Article XVI, Texas Constitution.
206-13 (b) Each member of the board must be a freehold property
206-14 taxpayer of the state and must reside in one of the counties
206-15 included within the boundaries of the authority, but only one
206-16 director shall be appointed from any county.
206-17 (c) The directors are appointed by the governor. The
206-18 appointments are subject to confirmation by the senate.
206-19 (d) Directors serve for staggered terms of six years with
206-20 the terms of one-third of the directors expiring February 1 of each
206-21 odd-numbered year. Each director shall hold office until the
206-22 expiration of the term for which the director was appointed and
206-23 until a successor is appointed and has qualified, unless removed
206-24 sooner as provided by this chapter.
206-25 (e) A director may be removed by the governor for
206-26 inefficiency, neglect of duty, or misconduct in office, after at
207-1 least 10 days' written notice of the charges and an opportunity to
207-2 be heard in person or by counsel at a public hearing. A vacancy
207-3 resulting from the death, resignation or removal of a director is
207-4 filled for the unexpired term by the governor.
207-5 (f) Each director shall qualify by taking the official oath
207-6 of office prescribed by general statute.
207-7 (g) Each director is entitled to receive $100 per day, or
207-8 such amount as may be prescribed by general law, for each day spent
207-9 in attending meetings of the board and any other business of the
207-10 authority that the board determines necessary, plus actual
207-11 traveling and other expenses.
207-12 (h) Until the adoption of bylaws setting the time and place
207-13 of regular meetings and the manner in which special meetings may be
207-14 called, meetings of the board shall be held at such times and
207-15 places as five of the directors may designate in writing.
207-16 (i) Five directors constitute a quorum at any meeting and,
207-17 except as otherwise provided in this chapter or in the bylaws, all
207-18 action may be taken by the affirmative vote of a majority of the
207-19 directors present at any such meeting, except that no contract that
207-20 involves an amount greater than $25,000 or that is to run for a
207-21 period longer than a year, and no bonds, notes, or other evidence
207-22 of indebtedness, and no amendment of the bylaws shall be valid
207-23 unless authorized or ratified by the affirmative vote of at least
207-24 five directors.
207-25 Sec. 258.007. OFFICERS, AGENTS, AND EMPLOYEES. (a) The
207-26 board shall select a secretary, who shall keep true and complete
208-1 records of all proceedings of the board. Until the appointment of
208-2 a secretary, or in the event of the secretary's absence or
208-3 inability to act, a secretary pro tempore shall be selected by the
208-4 board.
208-5 (b) The board shall select a general manager, who shall be
208-6 the chief executive officer of the authority, and a treasurer.
208-7 (c) The officers shall have such powers and duties, shall
208-8 hold office for such term, and shall be subject to removal in such
208-9 manner as may be provided in the bylaws of the authority. The
208-10 board shall set the compensation of the officers.
208-11 (d) The board may appoint such officers, agents, and
208-12 employees, may set their compensation and term of office and the
208-13 method by which they may be removed, and may delegate to them the
208-14 power and duties the board considers appropriate.
208-15 Sec. 258.008. AUTHORITY FUNDS; SURETY BONDS. (a) The funds
208-16 of the authority may be disbursed only on checks, drafts, orders,
208-17 or other instruments signed by the persons authorized to sign those
208-18 instruments by the bylaws or by a resolution concurred in by not
208-19 less than five directors.
208-20 (b) The general manager, the treasurer, and all other
208-21 officers, agents, and employees of the authority charged with the
208-22 collection, custody, or payment of any funds of the authority shall
208-23 give bond conditioned on the faithful performance of the person's
208-24 duties and an accounting of all funds and property of the authority
208-25 coming into the person's hands. The bonds shall be in a form and
208-26 an amount and with a surety company authorized to do business in
209-1 the state approved by the board. The premiums on the bonds shall
209-2 be paid by the authority and charged as an operating expense.
209-3 Sec. 258.009. AUTHORITY OFFICE; ACCOUNTS; RECORDS; AUDIT.
209-4 (a) The domicile of the authority shall be in the City of New
209-5 Braunfels, Comal County, where the authority shall maintain an
209-6 office, in charge of its general manager.
209-7 (b) The authority shall keep complete and accurate accounts
209-8 conforming to approved methods of accounting principles.
209-9 (c) The accounts and all contracts, documents, and records
209-10 of the authority shall be kept at an official office of the
209-11 authority. The accounts and contracts shall be open to public
209-12 inspection at all reasonable times.
209-13 (d) The board shall have an audit made of the books of
209-14 account and financial records of the authority for each fiscal
209-15 year.
209-16 (e) The audit required under Subsection (d) must be:
209-17 (1) completed not later than the 90th day after the
209-18 last day of each fiscal year; and
209-19 (2) conducted by the state auditor, an independent
209-20 certified public accountant, or a firm of certified public
209-21 accountants.
209-22 (f) Copies of a written report of the audit required under
209-23 Subsection (d), certified to by the accountant or accountants,
209-24 shall be placed and kept on file with the commission, with the
209-25 comptroller, and at the official office and shall be open to public
209-26 inspection at all reasonable times.
210-1 Sec. 258.010. CONFLICT OF INTEREST. The provisions of
210-2 Chapter 171, Local Government Code, apply to conflicts of interest
210-3 in the award of authority contracts.
210-4 Sec. 258.011. RATES AND CHARGES. (a) The board shall
210-5 establish and collect rates and other charges for the sale or use
210-6 of water, water connections, power, electric energy, and all other
210-7 services sold, furnished, or supplied by the authority. The fees
210-8 and charges shall be reasonable and nondiscriminatory and
210-9 sufficient to produce revenues adequate to:
210-10 (1) pay all expenses necessary to the operation and
210-11 maintenance and replacements and additions to the properties and
210-12 facilities of the authority;
210-13 (2) pay the interest on, the principal of, and the
210-14 premium, if any, on all bonds issued under this chapter when and as
210-15 the interest, principal, and premium become due and payable;
210-16 (3) pay all sinking fund and reserve fund payments
210-17 agreed to be made with respect to bonds and payable out of the
210-18 revenues, when and as the payments become due and payable;
210-19 (4) fulfill the terms of agreements made with the
210-20 holders of bonds or with a person in their behalf; and
210-21 (5) discharge all other lawful obligations of the
210-22 authority as the obligations become due.
210-23 (b) From the revenues received in excess of those required
210-24 for the purposes provided in Subsections (a)(1)-(3) and (5), the
210-25 board may establish a reasonable depreciation and emergency fund,
210-26 may retire, by purchase and cancellation or redemption, bonds
211-1 issued under this chapter, or may apply the excess revenues to any
211-2 corporate purpose.
211-3 (c) The rates and charges of the authority shall not be in
211-4 excess of what is necessary to fulfill the obligations imposed on
211-5 the authority by this chapter. Nothing in this chapter shall be
211-6 construed as depriving the state of its power to regulate and
211-7 control fees or charges to be collected for the use of water, water
211-8 connections, power, electric energy, or other service, provided
211-9 that the state pledges to and agrees with the purchasers and
211-10 successive holders of bonds issued under this chapter that the
211-11 state will not limit or alter the power vested in the authority by
211-12 this chapter to establish and collect such fees and charges as will
211-13 produce revenues sufficient to pay the items specified in
211-14 Subsection (a) or in any way impair the rights or remedies of the
211-15 holders of the bonds, or of any person in their behalf, until the
211-16 bonds, together with the interest on the bonds and any premium,
211-17 along with interest on unpaid installments of interest and all
211-18 costs and expenses in connection with an action or proceeding by or
211-19 on behalf of the bondholders and all other obligations of the
211-20 authority in connection with the bonds, are fully met and
211-21 discharged.
211-22 (d) If the authority enters into agreements to lease, sell,
211-23 or otherwise dispose of any property or facilities to any person,
211-24 the person shall be subject to such regulations and control of fees
211-25 and charges by the state as may be provided by agreement or general
211-26 law, but the board shall set payments under the leases or other
212-1 contracts and agreements for the use or sale of any property in
212-2 order that the payments, together with any other pledged revenues,
212-3 will be sufficient to pay the interest on, the principal of, and
212-4 any premium on all bonds to which the payments are pledged when and
212-5 as the interest, principal, and premium become due and payable; to
212-6 pay all sinking fund and reserve fund payments agreed to be made
212-7 with respect to the bonds and payable out of such payments, when
212-8 and as the payments become due and payable; and to fulfill the
212-9 terms of any agreement made with the holders of the bonds or any
212-10 person in their behalf and to discharge all other obligations of
212-11 the authority in connection with the bonds as and when the
212-12 obligations become due.
212-13 Sec. 258.012. PAYMENT OF DEBTS. Each indebtedness,
212-14 liability, or obligation of the authority for the payment of money,
212-15 however entered into or incurred and whether arising from contract,
212-16 implied contract, or otherwise, shall be payable:
212-17 (1) out of the revenues received by the authority with
212-18 respect to its properties, subject to any prior lien on the
212-19 revenues conferred by resolution authorizing the issuance of bonds
212-20 adopted as provided by this chapter; or
212-21 (2) if the board so determines, out of the proceeds of
212-22 sale by the authority of bonds payable solely from revenues.
212-23 Sec. 258.013. ISSUANCE OF BONDS. (a) The authority may
212-24 issue bonds or notes as provided in this section for any corporate
212-25 purpose. Bonds or notes, hereinafter called "bonds," may be:
212-26 (1) sold for cash, at public or private sale, at a
213-1 price the board determines, provided that the interest cost of the
213-2 money received for the bonds, computed to maturity, does not exceed
213-3 the maximum per annum rate authorized by Chapter 1204, Government
213-4 Code;
213-5 (2) issued on terms the board determines in exchange
213-6 for property of any kind, real, personal, or mixed, or an interest
213-7 in property that the board determines necessary or convenient for
213-8 any corporate purpose; or
213-9 (3) issued in exchange for like principal amounts of
213-10 other obligations of the authority, matured or unmatured.
213-11 (b) The proceeds from the sale of bonds shall be deposited
213-12 in a bank or banks or a trust company or trust companies, and shall
213-13 be paid out pursuant to terms and conditions agreed between the
213-14 authority and the purchasers of the bonds. Bonds shall be
213-15 authorized by a resolution or resolutions of the board concurred in
213-16 by at least five members. Bonds shall bear such date or dates;
213-17 mature at such time or times; bear interest at such rate or rates,
213-18 which may be fixed, variable, floating, or otherwise, not exceeding
213-19 the maximum rate authorized by Chapter 1204, Government Code,
213-20 payable annually, semiannually, or otherwise; be in such
213-21 denominations; be in such form, either coupon or registered; carry
213-22 such registration privileges as to principal only or as to both
213-23 principal and interest and as to exchange of coupon bonds for
213-24 registered bonds or vice versa and exchange of bonds of one
213-25 denomination for bonds of other denominations; be executed in such
213-26 manner; and be payable at such place or places within or outside
214-1 the state, as such resolution or resolutions may provide.
214-2 (c) A resolution or resolutions authorizing bonds may
214-3 contain provisions, which shall be part of the contract between the
214-4 authority and the initial and successive holders of the bonds:
214-5 (1) reserving the right to redeem the bonds or
214-6 requiring the redemption of the bonds, at such time or times, in
214-7 such amounts, and at such prices, not exceeding 105 percent of the
214-8 principal amount of the bonds plus accrued interest, as may be
214-9 provided in the resolution;
214-10 (2) providing for the setting aside of sinking funds
214-11 or reserve funds and the regulation and disposition of those funds;
214-12 (3) pledging, to secure the payment of the principal
214-13 of and interest on the bonds and of the sinking fund or reserve
214-14 fund payments agreed to be made with respect to the bonds, all or
214-15 any part of the gross or net revenues received by the authority
214-16 with respect to the property, real, personal, or mixed, to be
214-17 acquired or constructed with the bonds or the proceeds of the
214-18 bonds, or all or part of the gross or net revenues received by the
214-19 authority from any source;
214-20 (4) prescribing the purposes to which the bonds or
214-21 bonds later issued, or the proceeds of the bonds, may be applied;
214-22 (5) agreeing to set and collect rates and charges
214-23 sufficient to produce revenues adequate to pay the items specified
214-24 in Section 258.011(a) and prescribing the use and disposition of
214-25 all revenues;
214-26 (6) prescribing limitations on the issuance of
215-1 additional bonds and subordinate lien bonds and on the agreements
215-2 that may be made with the purchasers and successive holders of the
215-3 bonds;
215-4 (7) relating to the construction, extension,
215-5 improvement, reconstruction, operation, maintenance, and repair of
215-6 the properties of the authority and the carrying of insurance on
215-7 all or part of the properties covering loss or damage or loss of
215-8 use and occupancy resulting from specified risks;
215-9 (8) setting the procedure, if any, by which, if the
215-10 authority so desires, the terms of a contract with the holders of
215-11 the bonds may be amended or abrogated, the amount of bonds whose
215-12 holders must consent to the amendment or abrogation, and the manner
215-13 in which the consent may be given;
215-14 (9) providing for the execution and delivery by the
215-15 authority to a bank or trust company authorized by law to accept
215-16 trusts, or to the United States or any officer or agency of the
215-17 United States, of indentures and agreements for the benefit of the
215-18 holders of the bonds setting forth any or all of the agreements
215-19 authorized by this section to be made with or for the benefit of
215-20 the holders of such bonds, and any other provisions that may be
215-21 customary in such indentures or agreements; and
215-22 (10) making other provisions, not inconsistent with
215-23 the provisions of this chapter, as the board may approve.
215-24 Sec. 258.014. DEFAULT PROCEDURES. (a) A resolution
215-25 authorizing the issuance of bonds and any indenture or agreement
215-26 entered into pursuant to the resolution may include provisions
216-1 regarding a default on:
216-2 (1) the payment of the interest on any bonds as the
216-3 interest becomes due and payable;
216-4 (2) the payment of the principal of any bonds as they
216-5 become due and payable, whether at maturity, by call for
216-6 redemption, or otherwise; or
216-7 (3) the performance of an agreement made with the
216-8 purchasers or successive holders of any bonds.
216-9 (b) If a default described by Subsection (a) has occurred
216-10 and has continued for the period, if any, prescribed by the
216-11 resolution authorizing the issuance of the bonds, the trustee under
216-12 the indenture or indentures entered into with respect to the bonds
216-13 authorized by the resolution or resolutions, or, if there is no
216-14 indenture, a trustee appointed in the manner provided in the
216-15 resolution or resolutions by the holders of 25 percent in aggregate
216-16 principal amount of the bonds authorized by the resolution or
216-17 resolutions and then outstanding, and on the written request of
216-18 those bondholders, shall, in the trustee's own name but for the
216-19 equal and proportionate benefit of the holders of all the bonds,
216-20 and with or without having possession of the bonds:
216-21 (1) by mandamus or other suit, action, or proceeding
216-22 at law or in equity, enforce all rights of the holders of the
216-23 bonds;
216-24 (2) bring suit on the bonds or the appurtenant
216-25 coupons;
216-26 (3) by action or suit in equity, require the authority
217-1 to account as if it were the trustee of an express trust for the
217-2 bondholders;
217-3 (4) by action or suit in equity, enjoin any acts or
217-4 things which may be unlawful or in violation of the rights of the
217-5 holders of the bonds; or
217-6 (5) after such notice to the authority as the
217-7 resolution may provide, declare the principal of all of the bonds
217-8 due and payable, and if all defaults have been made good, then with
217-9 the written consent of the holders of 25 percent in aggregate
217-10 principal amount of the bonds then outstanding, annul the
217-11 declaration and its consequences; provided, however, that the
217-12 holders of more than a majority in principal amount of the bonds
217-13 authorized by the resolution and then outstanding shall, by written
217-14 instrument delivered to the trustee, have the right to direct and
217-15 control all action taken or to be taken by the trustee under this
217-16 section.
217-17 (c) A resolution, indenture, or agreement relating to bonds
217-18 may provide that in a suit, action, or proceeding under this
217-19 section, the trustee, whether or not all of the bonds have been
217-20 declared due and payable and with or without possession of any of
217-21 the bonds, shall be entitled as of right to the appointment of a
217-22 receiver who may enter and take possession of all or any part of
217-23 the properties of the authority and operate and maintain the
217-24 properties and set, collect, and receive rates and charges
217-25 sufficient to provide revenues adequate to pay the items set forth
217-26 in Section 258.011(a) and the costs and disbursements of the suit,
218-1 action, or proceeding and apply such revenues in conformity with
218-2 the provisions of this chapter and the resolution or resolutions
218-3 authorizing the bonds.
218-4 (d) In a suit, action, or proceeding by a trustee under this
218-5 section, the reasonable fees, counsel fees, and expenses of the
218-6 trustee and of the receiver or receivers, if any, constitute
218-7 taxable disbursements, and all costs and disbursements allowed by
218-8 the court shall be a first charge on any revenues pledged to secure
218-9 the payment of the bonds.
218-10 (e) Subject to the provisions of the constitution, the
218-11 courts of Comal County shall have jurisdiction of any suit, action,
218-12 or proceeding under this section by a trustee on behalf of the
218-13 bondholders and of all property involved in the suit, action, or
218-14 proceeding.
218-15 (f) In addition to the powers specifically provided by this
218-16 section, the trustee shall have and possess all powers necessary or
218-17 appropriate for the exercise of the powers specifically provided or
218-18 incident to the general representation of the bondholders in the
218-19 enforcement of their rights.
218-20 Sec. 258.015. INTERIM BONDS. Pending the issuance of
218-21 definitive bonds, the authority is authorized to make and issue
218-22 interim bonds. The interim bonds will be taken up with the
218-23 proceeds of the definitive bonds, or the definitive bonds may be
218-24 issued and delivered in exchange for and in substitution of the
218-25 interim bonds. After exchange and substitution the authority shall
218-26 file proper certificates with the comptroller as to the exchange,
219-1 substitution, and cancellation, and the certificates shall be
219-2 recorded by the comptroller in the same manner as the record of
219-3 proceedings authorizing the issuance of the bonds. The authority
219-4 may also make and issue temporary bonds for the purpose of interim
219-5 financing and may make agreements or other provision to refinance
219-6 the temporary bonds with bonds to provide permanent financing at
219-7 the time, in the manner, and on the conditions determined by the
219-8 board.
219-9 Sec. 258.016. APPROVAL BY ATTORNEY GENERAL. (a) Before any
219-10 bonds may be sold by the authority, a certified copy of the
219-11 proceedings for the issuance of the bonds, including the form of
219-12 the bonds, together with any other information which the attorney
219-13 general may require, shall be submitted to the attorney general.
219-14 If the attorney general finds that the bonds have been issued in
219-15 accordance with law, the attorney general shall approve the bonds
219-16 and execute a certificate to that effect, which shall be filed in
219-17 the office of the comptroller and be recorded in a record kept for
219-18 that purpose. The comptroller shall register the bonds if the
219-19 attorney general has filed with the comptroller his certificate
219-20 approving the bonds and the proceedings for the issuance of the
219-21 bonds as provided in this section. No bonds shall be issued until
219-22 the bonds have been registered by the comptroller.
219-23 (b) Bonds approved by the attorney general and registered by
219-24 the comptroller are valid and binding obligations of the authority
219-25 and are incontestable for any cause after their registration.
219-26 (c) If bonds recite that they are secured by a pledge of the
220-1 proceeds of a contract, lease, sale, or other agreement, herein
220-2 called "contract," a copy of the contract and the proceedings of
220-3 the contracting parties shall also be submitted to the attorney
220-4 general. If the bonds have been authorized and the contracts made
220-5 in compliance with law, the attorney general shall approve the
220-6 bonds and contracts, and the bonds shall then be registered by the
220-7 comptroller. When so approved, the bonds and the contracts are
220-8 valid and binding and are incontestable for any cause after their
220-9 registration.
220-10 Sec. 258.017. REFUNDING BONDS. (a) The authority may issue
220-11 bonds or notes, herein called "refunding bonds," for the purpose of
220-12 refunding or refinancing any outstanding bonds or notes, herein
220-13 called "bonds," authorized and issued by the authority pursuant to
220-14 this chapter or other law and the interest and premium, if any, on
220-15 the bonds to maturity or on any earlier redemption date specified
220-16 in the resolution authorizing the issuance of the refunding bonds.
220-17 Refunding bonds may be issued to refund more than one series of
220-18 outstanding bonds, may combine the pledges of the outstanding bonds
220-19 for the security of the refunding bonds, or may be secured by other
220-20 or additional revenues.
220-21 (b) Provisions of this chapter with reference to the
220-22 issuance of bonds, the terms and provisions of the bonds, their
220-23 approval by the attorney general, and the remedies of the
220-24 bondholders shall be applicable to refunding bonds. Refunding
220-25 bonds shall be registered by the comptroller on surrender and
220-26 cancellation of the bonds to be refunded, but in lieu of that
221-1 procedure, the resolution authorizing the issuance of refunding
221-2 bonds may provide that they shall be sold and the proceeds of the
221-3 sale deposited at the places at which the original bonds are
221-4 payable, in which case the refunding bonds may be issued in an
221-5 amount sufficient to pay the interest and premium, if any, on the
221-6 original bonds to their maturity date or specified earlier
221-7 redemption date, and the comptroller shall register the refunding
221-8 bonds without concurrent surrender and cancellation of the original
221-9 bonds. The authority may also refund any outstanding bonds in the
221-10 manner provided by any applicable general law.
221-11 Sec. 258.018. OTHER BONDS. If the authority issues bonds
221-12 payable in whole or in part from utility system revenues the
221-13 authority receives under a contract with a municipality, district,
221-14 river authority, or other political subdivision of the state, the
221-15 payments made under the contract are the paying party's operating
221-16 expenses for the utility system or systems from which the payments
221-17 are to be made to the authority if the contract so provides.
221-18 Sec. 258.019. PURCHASE OF BONDS BY AUTHORITY. The authority
221-19 may, out of funds available for the purpose, purchase bonds issued
221-20 by the authority at a price not exceeding the redemption price
221-21 applicable at the time of the purchase, or if the bonds are not
221-22 redeemable, at a price not exceeding the principal amount of the
221-23 bonds plus accrued interest. Bonds so purchased shall be canceled,
221-24 and no bonds shall ever be issued in lieu of the canceled bonds.
221-25 Sec. 258.020. BONDS EXEMPT FROM TAXATION. Bonds and the
221-26 interest on the bonds issued under the provisions of this chapter
222-1 are exempt from taxation, except for inheritance taxes, by the
222-2 state or any municipal corporation, county, or other political
222-3 subdivision or taxing district of the state.
222-4 Sec. 258.021. BONDS ELIGIBLE FOR INVESTMENTS AND DEPOSITS.
222-5 Bonds of the authority are legal, eligible, and authorized
222-6 investments for banks, savings and loan associations, insurance
222-7 companies, fiduciaries, trustees, and guardians and for the sinking
222-8 funds of cities, towns, villages, counties, school districts, or
222-9 other political corporations or subdivisions of the state. The
222-10 bonds are eligible to secure the deposit of all public funds of the
222-11 state and of cities, towns, villages, counties, school districts,
222-12 or other political corporations or subdivisions of the state, and
222-13 the bonds are lawful and sufficient security for such deposits to
222-14 the extent of their face value when accompanied by all unmatured
222-15 coupons.
222-16 Sec. 258.022. CHAPTER AS FULL AUTHORITY. This chapter,
222-17 without reference to other statutes of the state, constitutes full
222-18 authority for the authorization and issuance of bonds under this
222-19 chapter. No other act or law with regard to the authorization or
222-20 issuance of obligations or the deposit of the proceeds of the
222-21 obligations, or in any way impeding or restricting the carrying out
222-22 of the acts authorized by this chapter, shall be construed as
222-23 applying to any proceedings or acts under this chapter.
222-24 Sec. 258.023. ADDITIONAL SPECIFIC POWERS. The authority may
222-25 enter into and carry out contracts or establish or comply with
222-26 rules and regulations concerning labor and materials and other
223-1 related matters in connection with any project or projects as the
223-2 authority deems desirable or as requested by the state, the United
223-3 States, or any corporation or agency created, designated, or
223-4 established by the state or the United States that may assist in
223-5 the financing of the project or projects.
223-6 Sec. 258.024. PUBLIC USE OF SURPLUS LANDS OF THE AUTHORITY.
223-7 The authority shall not prevent free public use of its surplus
223-8 lands for recreation purposes and for hunting and fishing except at
223-9 such point where, in the opinion of the board, the use would
223-10 interfere with the proper conduct of business.
223-11 Sec. 258.025. LIBERAL CONSTRUCTION. This chapter and all of
223-12 its terms and provisions shall be liberally construed to effectuate
223-13 the purposes set forth in this chapter.
223-14 Sec. 258.026. ACT CREATING OTHER DISTRICT NOT REPEALED.
223-15 This chapter shall not be construed as repealing Chapter 75, Acts
223-16 of the 43rd Legislature, 1st Called Session, 1933, which created a
223-17 conservation and reclamation district, and the entity created under
223-18 that chapter may, by resolution of its board of directors, merge
223-19 with the authority.
223-20 Sec. 258.027. LIMITED LIABILITY FOR AQUATIC HERBICIDE
223-21 APPLICATION. (a) In this section, "commercially licensed aquatic
223-22 herbicide applicator" means a person who holds a commercial
223-23 applicator license issued by the Department of Agriculture under
223-24 Chapter 76, Agriculture Code, that authorizes the application of
223-25 aquatic herbicides.
223-26 (b) Except as provided by Chapter 12, Parks and Wildlife
224-1 Code, an authority employee holding a noncommercial aquatic
224-2 herbicide applicator license or a commercially licensed aquatic
224-3 herbicide applicator working under contract with the authority is
224-4 not liable for damages in excess of $2 million for personal injury,
224-5 property damage, or death resulting from the application by the
224-6 applicator of aquatic herbicide in compliance with applicable law
224-7 and the terms of the license or permit.
224-8 CHAPTER 259. GULF COAST WATER AUTHORITY
224-9 Sec. 259.001. CREATION. (a) A conservation and reclamation
224-10 district to be known as the "Gulf Coast Water Authority" is
224-11 created. The authority is a governmental agency and body politic
224-12 and corporate and a municipal corporation.
224-13 (b) The authority is created under and is essential to
224-14 accomplish the purposes of Section 59, Article XVI, Texas
224-15 Constitution.
224-16 Sec. 259.002. DEFINITIONS. In this chapter:
224-17 (1) "Authority" means the Gulf Coast Water Authority.
224-18 (2) "Board" means the board of directors of the
224-19 authority.
224-20 (3) "Director" means a member of the board.
224-21 Sec. 259.003. TERRITORY. The authority comprises all the
224-22 territory contained within Galveston County, and the boundaries of
224-23 the authority are the same as and coextensive with the boundaries
224-24 of Galveston County.
224-25 Sec. 259.004. POWERS AND DUTIES. (a) Except as expressly
224-26 limited by this chapter, the authority may exercise all rights,
225-1 powers, privileges, and authority conferred by the general laws of
225-2 this state applicable to municipal utility districts created under
225-3 authority of Section 59, Article XVI, Texas Constitution, including
225-4 those conferred by Chapters 49 and 54, but to the extent that the
225-5 provisions of such general laws may be in conflict with or
225-6 inconsistent with the provisions of this chapter, the provisions of
225-7 this chapter prevail. All such general laws are adopted and
225-8 incorporated by reference with the same effect as if incorporated
225-9 in full in this chapter.
225-10 (b) The authority may make, construct, or otherwise acquire
225-11 improvements, either within or outside the boundaries of the
225-12 authority, necessary to carry out the powers and authority granted
225-13 by this chapter and general law and may exercise the power of
225-14 eminent domain for such purposes; provided, however, that the
225-15 authority shall not have the power of eminent domain as to all or
225-16 any part of the water supply, property, works, or facilities of any
225-17 private person or persons or of any private or public corporation
225-18 or association engaged in the business of supplying water in
225-19 Galveston County to any class of consumers for any use on June 18,
225-20 1965. This subsection does not restrict the power of the authority
225-21 to acquire necessary crossing easements and rights-of-way.
225-22 (c) The authority may conserve, store, transport, treat and
225-23 purify, distribute, sell, and deliver water, both surface water and
225-24 groundwater, to persons, corporations, both public and private,
225-25 political subdivisions of the state, and others and may purchase,
225-26 construct, or lease all property, works, and facilities, both
226-1 within and outside the authority, necessary or useful for such
226-2 purposes.
226-3 (d) The authority may acquire water supplies from sources
226-4 within or outside the boundaries of the authority, may sell,
226-5 transport, and deliver water to customers within or outside the
226-6 authority, and may acquire all properties and facilities necessary
226-7 or useful for such purposes. For any or all of such purposes the
226-8 authority may enter into contracts with persons, corporations, both
226-9 public and private, and political subdivisions of the state for
226-10 such periods and on such terms and conditions as the board may
226-11 consider appropriate.
226-12 (e) Subject to the provisions of this chapter, the authority
226-13 may sell, lease, or exchange property of any kind, or any interest
226-14 in property, that is not necessary to the carrying on of the
226-15 business of the authority or whose sale, lease, or exchange, in the
226-16 judgment of the board, is necessary for the exercise of the powers,
226-17 rights, privileges, and functions conferred on the authority by
226-18 this chapter or by Chapters 49 and 54.
226-19 (f) Subject to the provisions of this chapter, the authority
226-20 may acquire by purchase, lease, gift, or otherwise and may
226-21 maintain, use, and operate any property of any kind, or any
226-22 interest in property, within or outside the boundaries of the
226-23 authority, necessary to the exercise of the powers, rights,
226-24 privileges, and functions conferred on the authority by this
226-25 chapter or by Chapters 49 and 54.
226-26 (g) The authority may construct, extend, improve, maintain,
227-1 and reconstruct, cause to be constructed, extended, improved,
227-2 maintained, and reconstructed, and use and operate facilities of
227-3 any kind necessary to the exercise of its powers, rights,
227-4 privileges, and functions.
227-5 (h) The authority may sue and be sued in its corporate name.
227-6 (i) The authority may adopt, use, and alter a corporate
227-7 seal.
227-8 (j) The authority may invest and reinvest its funds.
227-9 (k) The authority may make bylaws for management and
227-10 regulation of its affairs.
227-11 (l) The authority may appoint officers, agents, and
227-12 employees and may prescribe their duties and fix their
227-13 compensation.
227-14 (m) The authority may make contracts and execute instruments
227-15 necessary to the exercise of the powers, rights, privileges, and
227-16 functions conferred by this chapter or Chapters 49 and 54 for such
227-17 term and with such provisions as the board may determine to be in
227-18 the best interests of the authority, including contracts with
227-19 persons including the state, the United States, and any corporation
227-20 or agency of the state or the United States and districts, cities,
227-21 towns, persons, organizations, firms, corporations, or other
227-22 entities as the board considers necessary or proper for or in
227-23 connection with any of its corporate purposes.
227-24 (n) The authority may borrow money for its corporate
227-25 purposes and may borrow money and accept grants from persons,
227-26 including the state, the United States, or any corporation, agency,
228-1 or entity created or designated by the state or the United States,
228-2 and in connection with any such loan or grant may enter into such
228-3 agreements as the state, the United States, or any such
228-4 corporation, agency, or entity may require. The authority may
228-5 issue negotiable bonds or notes for money borrowed, in the manner
228-6 and to the extent provided in this chapter, and may refund or
228-7 refinance any outstanding bonds or notes and make and issue
228-8 negotiable bonds or notes for that purpose in the manner provided
228-9 by this chapter.
228-10 Sec. 259.005. LIMITATIONS ON AUTHORITY. (a) The authority
228-11 may not levy and collect taxes on any property, real, personal, or
228-12 mixed, within the boundaries of the authority and may not issue
228-13 bonds or create indebtedness that would in any way be payable from
228-14 ad valorem taxes levied by the authority on property within the
228-15 authority.
228-16 (b) The authority shall have none of the powers conferred by
228-17 general law for the purposes of the collection, transportation,
228-18 processing, disposal, and control of domestic, industrial, or
228-19 communal wastes and the gathering, conducting, directing, and
228-20 controlling of local storm waters or other local harmful excesses
228-21 of water.
228-22 (c) Nothing in this chapter shall be construed as impairing
228-23 or affecting the powers, authority, rights, or duties of any
228-24 municipal corporation or conservation and reclamation district
228-25 previously or subsequently created within, or partially within, the
228-26 boundaries of the authority or as requiring any such corporation or
229-1 district to contract with the authority for its water supply.
229-2 (d) If the authority in the exercise of the power of eminent
229-3 domain or power of relocation or any other power granted under this
229-4 chapter makes necessary the relocation, raising, rerouting,
229-5 changing the grade, or altering the construction of any highway,
229-6 railroad, electric transmission line, telephone or telegraph
229-7 properties and facilities, or pipeline, all such necessary
229-8 relocation, raising, rerouting, changing the grade, or alteration
229-9 of construction shall be accomplished at the sole expense of the
229-10 authority. In this subsection "sole expense" means the actual cost
229-11 of relocation, raising, rerouting, changing the grade, or
229-12 alteration of construction in providing comparable replacement
229-13 without enhancement of the facilities after deducting the net
229-14 salvage value derived from the old facility.
229-15 (e) Nothing in this chapter shall be construed as conferring
229-16 any water rights on the authority or as setting any priority of
229-17 rights.
229-18 (f) Nothing in this chapter shall be construed as
229-19 authorizing the authority to make any regulation of the withdrawal
229-20 of groundwater.
229-21 (g) The powers, rights, privileges, and functions conferred
229-22 on the authority shall be subject to the continuing rights of
229-23 supervision by the state, which shall be exercised by the
229-24 commission. Notwithstanding any provision in Chapter 49 to the
229-25 contrary, the authority shall not be required to submit its
229-26 projects or bonds for approval or supervision by the commission.
230-1 Sec. 259.006. BOARD OF DIRECTORS. (a) The management and
230-2 control of the authority is vested in a board of seven directors.
230-3 The membership of the board must represent the geographic and
230-4 ethnic diversity of the county. Three of the members appointed by
230-5 the commissioners court must be registered professional engineers
230-6 under the laws of Texas. Vacancies on the board, whether by death,
230-7 resignation, or termination of the term of office, are filled by
230-8 appointment by the commissioners court of Galveston County. All
230-9 terms of office are for a period of two years. Terms are
230-10 staggered, with the terms of three directors expiring one year and
230-11 the terms of four directors expiring the next year.
230-12 (b) One director shall be appointed by the commissioners
230-13 court of Galveston County on the recommendation of the city council
230-14 of the City of Galveston. The remaining six directors shall be
230-15 appointed by the commissioners court of Galveston County, with two
230-16 of the directors appointed at large and the remaining four
230-17 directors appointed on the written recommendation of advisory
230-18 committees appointed by the board. Two directors shall be
230-19 recommended by the Mainland Municipal Advisory Committee and two
230-20 directors by the Industrial Advisory Committee. The commissioners
230-21 court of Galveston County is entitled to accept or reject the
230-22 recommendations made to the court by the advisory committees. If a
230-23 recommendation made by an advisory committee is rejected, the
230-24 advisory committee shall submit additional recommendations to the
230-25 court.
230-26 (c) The Industrial Advisory Committee is composed of one
231-1 representative of each industrial customer of the authority. The
231-2 Mainland Municipal Advisory Committee is composed of one
231-3 representative of each municipal or water district customer of the
231-4 authority that uses at least 2 million gallons of water per day.
231-5 The names of the representatives of each of the committees shall be
231-6 submitted to the board by the respective industrial and municipal
231-7 or water district customers. The board shall submit the names of
231-8 the advisory committee members to the commissioners court of
231-9 Galveston County, which shall record the names in the minutes of
231-10 the court.
231-11 Sec. 259.007. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
231-12 DEPOSITS. The bonds of the authority are legal and authorized
231-13 investments for banks, savings banks, trust companies, building and
231-14 loan associations, savings and loan associations, insurance
231-15 companies, fiduciaries, and trustees and for the sinking funds of
231-16 cities, towns, villages, counties, school districts, or other
231-17 political corporations or subdivisions of the state. The bonds are
231-18 eligible to secure the deposit of all public funds of the state and
231-19 all public funds of cities, towns, villages, counties, school
231-20 districts, or other political corporations or subdivisions of the
231-21 state, and the bonds shall be lawful and sufficient security for
231-22 such deposits to the extent of their value when accompanied by all
231-23 unmatured coupons.
231-24 Sec. 259.008. ISSUANCE OF BONDS. (a) The authority may
231-25 issue, from time to time, bonds as authorized by this chapter for
231-26 any corporate purpose. The bonds may be:
232-1 (1) sold for cash, at public or private sale, at such
232-2 price or prices as the board determines, provided that the net
232-3 effective interest rate, calculated in accordance with Chapter
232-4 1204, Government Code, does not exceed 10 percent;
232-5 (2) issued on such terms as the board determines in
232-6 exchange for property of any kind, real, personal, or mixed, or any
232-7 interest in property, that the board determines necessary for any
232-8 corporate purpose; or
232-9 (3) issued in exchange for like principal amounts of
232-10 other obligations of the authority, matured or unmatured.
232-11 (b) The proceeds of the sale of bonds shall be deposited in
232-12 such bank or banks or trust company or trust companies, and shall
232-13 be paid out pursuant to such terms and conditions, as may be agreed
232-14 between the authority and the purchasers of the bonds.
232-15 (c) Bonds of the authority must be authorized by resolution
232-16 of the board and shall bear such date or dates, mature at such time
232-17 or times, bear interest payable annually, semiannually, or
232-18 otherwise, be in such denominations, be in such form, either coupon
232-19 or registered, carry such registration privileges as to principal
232-20 only or as to both principal and interest and as to exchange of
232-21 coupon bonds for registered bonds, or vice versa, and exchange of
232-22 bonds of one denomination for bonds of other denominations, be
232-23 executed in such manner and be payable at such place or places,
232-24 within or outside the state, as the resolution may provide.
232-25 (d) A resolution authorizing bonds may contain provisions,
232-26 which shall be part of the contract between the authority and the
233-1 purchasers or successive holders of the bonds:
233-2 (1) reserving the right to redeem the bonds or
233-3 requiring the redemption of the bonds, at such time or times, in
233-4 such amounts, and at such prices, not exceeding 105 percent of the
233-5 principal amount of the bonds, plus accrued interest, as may be
233-6 provided;
233-7 (2) providing for the setting aside of sinking funds
233-8 or reserve funds and the regulation and disposition of those funds;
233-9 (3) pledging, to secure the payment of the principal
233-10 of and interest on the bonds and of the sinking fund or reserve
233-11 fund payments agreed to be made with respect to the bonds, all or
233-12 any part of the gross or net revenues received by the authority
233-13 with respect to the property, real, personal, or mixed, to be
233-14 acquired or constructed with the bonds or the proceeds of the
233-15 bonds, or all or part of the gross or net revenues received by the
233-16 authority from whatever source derived;
233-17 (4) prescribing the purposes to which the bonds or any
233-18 bonds to be issued later, or the proceeds of bonds, may be applied;
233-19 (5) agreeing to set and collect rates and charges
233-20 sufficient to produce revenues adequate to pay (A) all expenses
233-21 necessary to the operation and maintenance and replacements and
233-22 additions to the properties and facilities of the authority; (B)
233-23 the principal of and the interest and premium, if any, on bonds
233-24 issued under this chapter as the bonds, interest, and premiums
233-25 become due and payable; (C) all sinking fund and reserve fund
233-26 payments agreed to be made with respect to the bonds out of such
234-1 revenues as the payments become due and payable, and agreeing to
234-2 fulfill the terms of any agreements made with the holders of the
234-3 bonds or with any person on their behalf and to discharge all other
234-4 lawful obligations of the authority as and when they become due;
234-5 (6) prescribing limitations on the issuance of
234-6 additional bonds and subordinate lien bonds and on the agreements
234-7 that may be made with the purchasers and successive holders of such
234-8 bonds;
234-9 (7) relating to the construction, extension,
234-10 improvement, reconstruction, operation, maintenance, and repair of
234-11 the properties of the authority and carrying insurance on all or
234-12 any part of the properties covering loss or damage or loss of use
234-13 and occupancy resulting from specified risks;
234-14 (8) setting the procedure, if any, by which, if the
234-15 authority so desires, the terms of a contract with the holders of
234-16 the bonds may be amended or abrogated, the amount of the bonds
234-17 whose holders must consent to the amendment or abrogation, and the
234-18 manner in which such consent may be given;
234-19 (9) providing for the execution and delivery by the
234-20 authority to a bank or trust company authorized by law to accept
234-21 trusts, or to the United States or any officer or agency of the
234-22 United States, of indentures and agreements for the benefit of the
234-23 holders of the bonds and such other provisions as may be customary
234-24 in such indentures or agreements; and
234-25 (10) making such other provisions, not inconsistent
234-26 with the provisions of this chapter, as the board may approve.
235-1 (e) The board may declare an emergency in the matter of
235-2 funds not being available to pay the principal of and interest on
235-3 bonds of the authority or to meet any other needs of the authority.
235-4 (f) Bond anticipation notes may bear interest at any rate or
235-5 rates not to exceed 10 percent and must mature within one year of
235-6 their date. The bond anticipation notes so issued will be taken up
235-7 with the proceeds of bonds, or the bonds may be issued and
235-8 delivered in exchange for and in substitution of such notes.
235-9 (g) Before any bonds may be sold or exchanged or substituted
235-10 by the authority, a certified copy of the proceedings of the
235-11 issuance of the bonds, including the form of the bonds, together
235-12 with any other information that the attorney general may require,
235-13 shall be submitted to the attorney general for examination, and if
235-14 the attorney general finds that the bonds have been issued in
235-15 accordance with law, the attorney general shall approve the bonds
235-16 and shall execute a certificate to that effect which shall be filed
235-17 in the office of the comptroller and be recorded in a record kept
235-18 for that purpose. Bonds may not be issued until they have been
235-19 registered by the comptroller, who shall register the bonds if the
235-20 attorney general has filed with the comptroller the certificate
235-21 approving the bonds and the proceedings for the issuance of the
235-22 bonds as provided in this subsection.
235-23 (h) Bonds approved by the attorney general and registered by
235-24 the comptroller and issued in accordance with the proceedings so
235-25 approved are valid and binding obligations of the authority and are
235-26 incontestable for any cause from and after the time of their
236-1 registration.
236-2 (i) If bonds recite that they are secured by a pledge of the
236-3 proceeds of a contract, lease, sale, or other agreement, a copy of
236-4 the contract and the proceedings of the contracting parties will
236-5 also be submitted to the attorney general for examination. If the
236-6 bonds have been authorized and the contract made in compliance with
236-7 law, the attorney general shall approve the bonds and contract, and
236-8 the bonds shall then be registered by the comptroller. When so
236-9 approved, the bonds and the contract are valid and binding and are
236-10 incontestable for any cause from and after the time of their
236-11 registration.
236-12 (j) The authority may issue refunding bonds for the purpose
236-13 of refunding or refinancing any outstanding bonds or notes
236-14 authorized and issued by the authority as provided by this chapter
236-15 or other law and the interest and premium, if any, on the bonds to
236-16 maturity or on any earlier redemption date specified in the
236-17 resolution authorizing the issuance of the refunding bonds.
236-18 Refunding bonds may be issued to refund more than one series of
236-19 outstanding bonds, may combine the pledges of the outstanding bonds
236-20 for the security of the refunding bonds, or may be secured by other
236-21 or additional revenues. All provisions of this chapter with
236-22 reference to the issuance of bonds, the terms and provisions of the
236-23 bonds, their approval by the attorney general, and the remedies of
236-24 the bondholders are applicable to refunding bonds. Refunding bonds
236-25 shall be registered by the comptroller on surrender and
236-26 cancellation of the bonds to be refunded, but in lieu of that
237-1 procedure, the resolution authorizing the issuance of refunding
237-2 bonds may provide that the refunding bonds shall be sold and the
237-3 proceeds of the sale deposited at the places at which the original
237-4 bonds are payable, in which case the refunding bonds may be issued
237-5 in an amount sufficient to pay the interest and premium, if any, on
237-6 the original bonds to their maturity date or specified earlier
237-7 redemption date, and the comptroller shall register the refunding
237-8 bonds without concurrent surrender and cancellation of the original
237-9 bonds. The authority may also refund any outstanding bonds in the
237-10 manner provided by any applicable general law.
237-11 (k) All bonds issued by the authority pursuant to the
237-12 provisions of this chapter are investment securities within the
237-13 meaning of Chapter 8, Business & Commerce Code.
237-14 (l) This chapter, without reference to other statutory
237-15 provisions, constitutes full authority for the authorization and
237-16 issuance of bonds under this chapter, and no other Act or law with
237-17 regard to the authorization or issuance of obligations or the
237-18 deposit of the proceeds of the obligations, or in any way impeding
237-19 or restricting the carrying out of the acts authorized by this
237-20 chapter, may be construed as applying to any proceedings taken
237-21 under this chapter or acts done pursuant to this chapter.
237-22 Sec. 259.009. CHARGES, FEES, AND TOLLS. If revenues are
237-23 pledged to the payment of bonds issued by the authority, the board
237-24 shall set, maintain, and enforce charges, fees, or tolls for
237-25 services rendered by properties and facilities, whose revenues have
237-26 been pledged, at rates and amounts at least sufficient to comply
238-1 with and carry out the covenants and provisions contained in the
238-2 resolution authorizing the issuance of the bonds. The authority
238-3 may impose a penalty for failure to pay a charge, fee, or toll when
238-4 due.
238-5 Sec. 259.010. AUTHORITY DEPOSITORY. The board shall from
238-6 time to time by resolution designate one or more banks to serve as
238-7 the authority's depository, and all funds of the authority shall be
238-8 secured in the manner provided for the security of county funds.
238-9 CHAPTER 260. LAVACA-NAVIDAD RIVER AUTHORITY
238-10 Sec. 260.001. CREATION. (a) A conservation and reclamation
238-11 district to be known as the "Lavaca-Navidad River Authority" is
238-12 created. The authority is a governmental agency and body politic
238-13 and corporate.
238-14 (b) The authority is created under and is essential to
238-15 accomplish the purposes of Section 59, Article XVI, Texas
238-16 Constitution.
238-17 (c) The authority may exercise the rights, privileges, and
238-18 functions provided by Section 59, Article XVI, Texas Constitution,
238-19 and this chapter, including the control, storage, preservation, and
238-20 distribution of the storm waters, floodwaters, and the waters of
238-21 the rivers and streams of Jackson County and their tributaries for
238-22 domestic, municipal, flood control, irrigation, and other useful
238-23 purposes, the reclamation and drainage of the overflow land of
238-24 Jackson County, and the conservation of forests, and the authority
238-25 may aid in the protection and promotion of navigation on the
238-26 navigable waters by regulating the floodwaters and storm waters
239-1 that flow into the navigable streams.
239-2 Sec. 260.002. DEFINITIONS. In this chapter:
239-3 (1) "Authority" means the Lavaca-Navidad River
239-4 Authority.
239-5 (2) "Board" means the board of directors of the
239-6 authority.
239-7 (3) "Director" means a member of the board.
239-8 Sec. 260.003. BOUNDARIES. The boundaries of the authority
239-9 are coextensive with the boundaries of Jackson County and the
239-10 authority includes all of the lands and other property, both real
239-11 and personal, within the boundaries of Jackson County.
239-12 Sec. 260.004. BOARD OF DIRECTORS; DIRECTOR BONDS. (a) The
239-13 management and control of the authority shall be vested in a board
239-14 consisting of nine directors.
239-15 (b) A director must reside within the authority and must be
239-16 a freehold property taxpayer and a legal voter of the state.
239-17 (c) The governor shall appoint the directors with the advice
239-18 and consent of the senate.
239-19 (d) Directors serve for staggered terms of six years, with
239-20 the terms of one-third of the directors expiring on May 1 of each
239-21 odd-numbered year, and hold office until their successors are
239-22 appointed and have qualified.
239-23 (e) The governor shall appoint three directors during the
239-24 month of April of each odd-numbered year to succeed the directors
239-25 whose terms of office are to expire on the following May 1. If a
239-26 vacancy on the board occurs because of the resignation or death of
240-1 a director or otherwise, the governor shall fill the vacancy for
240-2 the unexpired term by the appointment of a successor.
240-3 (f) A director shall qualify by taking the official oath and
240-4 filing a good and sufficient bond with the secretary of state in an
240-5 amount set by resolution of the board, payable to the authority,
240-6 and conditioned on the faithful performance of the person's
240-7 official duties as director.
240-8 Sec. 260.005. BOARD MEETINGS; OFFICERS; VOTING REQUIREMENTS.
240-9 (a) The board shall meet at such times and places as it shall
240-10 designate and shall hold regular and special meetings as it
240-11 determines appropriate.
240-12 (b) The board shall elect from among its members a
240-13 president, a vice president, a secretary, and a treasurer. The
240-14 offices of secretary and treasurer may be combined into one office
240-15 of secretary-treasurer on a majority vote of the board.
240-16 (c) Except for the original board, the officers serve for a
240-17 term of one year, and the board shall elect the officers annually
240-18 during the month of May.
240-19 (d) Special meetings of the board may be called by the
240-20 president or by any three members.
240-21 (e) A majority of the members of the board constitutes a
240-22 quorum to transact any and all business. A majority vote of the
240-23 members present at any regular or special meeting is sufficient for
240-24 the adoption of any proceedings or for the taking of any official
240-25 action.
240-26 Sec. 260.006. RECORDS; ACCOUNTS; AUTHORITY OFFICE. (a) The
241-1 board shall keep complete and accurate records and accounts
241-2 conforming to approved methods of bookkeeping and shall preserve
241-3 its minutes, contracts, records, notices, accounts, receipts, and
241-4 records of all kinds in a fireproof vault or safe.
241-5 (b) The authority shall establish and maintain an office for
241-6 the conduct of authority business within the authority.
241-7 Sec. 260.007. DIRECTOR FEES. Each director is entitled to
241-8 receive fees of office of not more than $100 per day, or the amount
241-9 permitted under Section 49.060, for each day served plus actual
241-10 traveling expenses, provided that the compensation and expenses are
241-11 approved by a vote of the board, and provided further that no
241-12 director receives more than $6,000 per year or the amount permitted
241-13 under Section 49.060. Each director shall file with the secretary
241-14 a statement showing the amount due the director each month or as
241-15 soon after each month as practicable, before a check is issued for
241-16 the services and expenses.
241-17 Sec. 260.008. CONFLICT OF INTEREST; PENALTY. A director,
241-18 engineer, officer, or employee of the authority may not either for
241-19 the person's own self or as an agent for anyone else, benefit
241-20 directly or indirectly by reason of any sale, purchase, or contract
241-21 entered into by the board. If a director, engineer, officer, or
241-22 employee of the authority directly or indirectly becomes interested
241-23 in a sale, purchase, or contract, the person is guilty of a
241-24 misdemeanor and on conviction entered into by the board shall be
241-25 punished by a fine not to exceed $1,000 or by confinement in the
241-26 county jail for not less than six months or more than one year, or
242-1 by both a fine and imprisonment.
242-2 Sec. 260.009. SURETY BONDS. All bonds required to be given
242-3 by officers and employees of the authority shall be executed by a
242-4 surety company authorized to do business in the state. The
242-5 authority may pay the premium on the bonds.
242-6 Sec. 260.010. REFERENCES TO FORMER NAME OF AUTHORITY. In
242-7 all laws a reference to Jackson County Flood Control District shall
242-8 mean and be interpreted to mean Lavaca-Navidad River Authority.
242-9 Lavaca-Navidad River Authority has all rights, powers, and duties
242-10 conferred or imposed by law on the Jackson County Flood Control
242-11 District and all rights, powers, and duties conferred by or assumed
242-12 in all contracts to which the Jackson County Flood Control District
242-13 is a party.
242-14 Sec. 260.011. POWERS OF THE AUTHORITY. (a) Except as
242-15 expressly limited by this chapter, the authority may exercise all
242-16 powers, rights, privileges, and functions provided by this chapter
242-17 or conferred by general or special law on any flood control
242-18 district or districts created pursuant to, or operating under,
242-19 Section 59, Article XVI, Texas Constitution, including the power:
242-20 (1) to acquire by gift, devise, purchase,
242-21 condemnation, or otherwise lands and rights and interests in lands
242-22 and rights and any other character of property necessary or useful
242-23 for any of the purposes provided in Section 260.001;
242-24 (2) to lease, sell, trade, or otherwise dispose of
242-25 land or other property or rights in land or property when the land
242-26 or property or rights in land or property are no longer needed for
243-1 the purposes provided in Section 260.001;
243-2 (3) to appoint a manager and other officers, agents,
243-3 and employees, including an engineer or engineers and counsel, and
243-4 to prescribe their duties and set their compensation;
243-5 (4) to authorize the authority's officers, employees,
243-6 or agents to go on any lands lying within the authority for the
243-7 purpose of making surveys and examining the lands in connection
243-8 with any authority plans or projects and for any other lawful
243-9 purpose within the scope of its authority;
243-10 (5) to devise plans and construct works to lessen and
243-11 control floods or to reclaim lands in the authority; to prevent the
243-12 deposit of silt in navigable streams; to remove obstructions,
243-13 natural or artificial, from streams and watercourses; to regulate
243-14 the flow of surface waters and floodwaters; to provide drainage;
243-15 and to accomplish any other purpose within the scope of its
243-16 authority;
243-17 (6) to borrow money for any of the purposes,
243-18 consistent with the constitution, provided by this chapter or by
243-19 general law; to borrow money and accept grants from the United
243-20 States, or from any corporation or agency created or designated by
243-21 the United States, and in connection with any such loan or grant to
243-22 enter into such agreements as the United States or the corporations
243-23 or agencies may require; and to make and issue negotiable bonds,
243-24 including bonds to finance capital projects, which may be tax
243-25 bonds, revenue bonds, or combination tax-revenue bonds, for such
243-26 borrowed money in the manner and to the extent provided in this
244-1 chapter;
244-2 (7) to cooperate or contract with any agency or
244-3 political subdivision of the state or any city or town within the
244-4 boundaries of the authority with regard to surveys, the acquisition
244-5 of land or rights-of-way, the construction or maintenance of
244-6 projects or parts of projects, or the financing of such surveys,
244-7 acquisitions, or construction or maintenance in connection with any
244-8 matter within the scope of this chapter;
244-9 (8) to sue and be sued in its corporate name;
244-10 (9) to adopt, use, and alter a corporate seal;
244-11 (10) to make bylaws, rules, and regulations for the
244-12 management and regulation of the authority's affairs;
244-13 (11) to make contracts and execute instruments
244-14 necessary or convenient to the exercise of the powers, rights,
244-15 privileges, and functions conferred on the authority by this
244-16 chapter; and
244-17 (12) to do anything necessary or proper to carry into
244-18 effect any of the foregoing powers.
244-19 (b) The authority may own, operate, and construct
244-20 facilities, including facilities for water supply and treatment,
244-21 wastewater treatment and distribution, solid waste, power
244-22 generation, flood monitoring, flood warning and control, water
244-23 quality protection, including non-point source pollution control
244-24 measures, and may monitor and collect data to support these
244-25 functions.
244-26 (c) The authority may construct projects outside of its area
245-1 of jurisdiction.
245-2 (d) The authority may develop and provide groundwater.
245-3 (e) The authority may provide for emergency communication
245-4 support to other political subdivisions, peace officer functions
245-5 around lakes, aquatic weed control and development, and the
245-6 operation and maintenance of parks and recreational facilities.
245-7 Sec. 260.012. EMINENT DOMAIN. (a) If the authority, in the
245-8 exercise of the power of eminent domain or power of relocation, or
245-9 any other power granted under this chapter, makes necessary the
245-10 relocation, raising, rerouting, changing the grade, or altering the
245-11 construction of any highway, railroad, electric transmission line,
245-12 telephone or telegraph properties and facilities, or pipeline, all
245-13 such necessary relocation, raising, rerouting, changing the grade,
245-14 or alteration of construction shall be accomplished at the sole
245-15 expense of the authority.
245-16 (b) The authority may not exercise the power of eminent
245-17 domain beyond the limits of Jackson County.
245-18 Sec. 260.013. AUTHORITY DEPOSITORY. The board shall select
245-19 a depository or depositories of the authority under the general
245-20 provisions provided by law for the selection of depositories for
245-21 counties in this state. All checks or vouchers of the authority
245-22 shall be signed by two directors, by one director and an officer or
245-23 employee of the authority, or by two of the authority's employees
245-24 designated by the board, as may be provided in an order or
245-25 resolution adopted by the board.
245-26 Sec. 260.014. AD VALOREM TAX. The authority may levy and
246-1 cause to be assessed and collected for the maintenance, operation,
246-2 and upkeep of the authority and the facilities, properties, and
246-3 improvements constructed or acquired by the authority an annual ad
246-4 valorem tax not to exceed 15 cents on each $100 valuation of
246-5 taxable property within the authority, whether real, personal,
246-6 mixed, or otherwise, if the levying of the tax is first submitted
246-7 to the qualified voters of the authority at an election called and
246-8 held as provided by this chapter and the proposition is adopted by
246-9 a majority vote of those voting at the election. Subsequent
246-10 elections may be ordered and held for the purpose of increasing,
246-11 reducing, or abating the tax; provided, however, that the tax shall
246-12 never exceed the maximum prescribed by this section.
246-13 Sec. 260.015. ISSUANCE OF BONDS. (a) For the purpose of
246-14 providing funds for any of the purposes provided by this chapter or
246-15 any other laws relating to flood control districts, the board may
246-16 issue negotiable bonds for and on behalf of the authority secured
246-17 by:
246-18 (1) a pledge of and payable from the net revenues
246-19 derived from the operation of all or a designated part of the
246-20 improvements and facilities of the authority then in existence or
246-21 to be constructed or acquired, with the duty on the board to charge
246-22 and collect fees, tolls, and charges, while the bonds are
246-23 outstanding, sufficient to pay all maintenance and operation
246-24 expenses of the improvements and facilities, the income of which is
246-25 pledged, the interest on the bonds as it accrues, and the principal
246-26 of the bonds as it matures and to make any and all other payments
247-1 as may be prescribed in the bond order or resolution;
247-2 (2) a pledge of and payable from an ad valorem tax on
247-3 all taxable property within the authority under Section 59, Article
247-4 XVI, Texas Constitution, with the duty on the board, each year
247-5 while the bonds or any part of them are outstanding, to levy and
247-6 cause to be assessed and collected a tax sufficient to pay the
247-7 interest on the bonds as it accrues and the principal of the bonds
247-8 as it matures; or
247-9 (3) a combination of the methods prescribed under
247-10 Subdivisions (1) and (2), whereby the bonds are supported and
247-11 secured by an ad valorem tax, with the duty on the board while the
247-12 bonds are outstanding, to charge and collect fees, tolls, and
247-13 charges, so that, in the manner prescribed in the bond order or
247-14 resolution, the amount of tax to be collected from time to time may
247-15 be reduced or abated to the extent that the revenues from the
247-16 operation of the improvements and facilities, whose income is
247-17 pledged, are sufficient to meet the requirements for maintenance
247-18 and operation of the improvements and facilities and to provide
247-19 funds for the bonds as prescribed in the bond order or resolution.
247-20 (b) In this section, "net revenues" means the gross revenues
247-21 derived from the operation of the improvements and facilities of
247-22 the authority, whose income is pledged to the payment of the bonds,
247-23 less the reasonable expense of maintaining and operating the
247-24 improvements and facilities. The maintenance and operation
247-25 expenses include necessary repair, upkeep, and insurance of the
247-26 improvements and facilities.
248-1 (c) In the resolution or order adopted by the board
248-2 authorizing the issuance of bonds payable in whole or in part from
248-3 net revenues, the board may provide for the flow of funds, the
248-4 establishment and maintenance of an interest and sinking fund, a
248-5 reserve fund, and other funds and may make additional covenants
248-6 with respect to the bonds and the pledged revenues and the
248-7 operation, maintenance, and upkeep of the improvements and
248-8 facilities whose income is pledged, including provision for the
248-9 leasing of all or a part of those improvements and facilities and
248-10 the use or pledge of funds derived from leases of those
248-11 improvements and facilities, as the board determines appropriate.
248-12 The resolution or order may also prohibit the further issuance of
248-13 bonds or other obligations payable from the pledged net revenues or
248-14 may reserve the right to issue additional bonds to be secured by a
248-15 pledge of and payable from the net revenues on a parity with, or
248-16 subordinate to, the lien and pledge in support of the bonds being
248-17 issued, subject to the conditions set forth in the resolution or
248-18 order. The resolution or order may contain, within the discretion
248-19 of the board, other provisions and covenants not prohibited by the
248-20 constitution or by this chapter, and the board may adopt and cause
248-21 to be executed any other proceedings or instruments necessary or
248-22 convenient in the issuance of the bonds.
248-23 (d) Bonds payable solely from net revenues may be issued by
248-24 resolution or order of the board without an election. Bonds wholly
248-25 or partially supported by taxes, except refunding bonds, may not be
248-26 issued unless the bonds have been authorized at an election called
249-1 by the board at which a majority of the duly qualified resident
249-2 electors of the authority voting at the election have voted in
249-3 favor of the issuance of the bonds. An election must be held not
249-4 less than 14 days after the date of adoption of the order or
249-5 resolution calling the election, and notice of the election must be
249-6 given by publication in a newspaper of general circulation within
249-7 the authority, on the same day in each of two successive weeks, of
249-8 a substantial copy of the order or resolution calling the election,
249-9 the first publication to be not less than 14 days prior to the date
249-10 of the election. No other notice of election is required. If the
249-11 bonds are to be payable solely from taxes, the proposition to
249-12 appear on the ballot shall be: "For the bonds and the levy of
249-13 taxes in payment thereof; and the contrary thereof." If the bonds
249-14 are to be payable both from net revenues and taxes, the proposition
249-15 to appear on the ballot shall be: "For the bonds, the pledge of
249-16 net revenues, and the levy of taxes adequate to provide for the
249-17 payment thereof; and the contrary thereof."
249-18 (e) Bonds must be authorized by resolution or order of the
249-19 board, be issued in the name of the authority, be signed by the
249-20 president and attested by the secretary, and have the seal of the
249-21 authority impressed on them; provided, however, that the resolution
249-22 or order authorizing the bonds may provide for the bonds to be
249-23 signed by the facsimile signatures of the president and secretary,
249-24 either or both, and for the seal of the authority on the bonds to
249-25 be a printed facsimile seal of the seal of the authority; and
249-26 provided further, that the interest coupons attached to the bonds
250-1 may also be executed by the facsimile signatures of the officers.
250-2 Bonds must mature, serially or otherwise, in not to exceed 40 years
250-3 from their date or dates, and may be sold at a price and under
250-4 terms determined by the board to be the most advantageous
250-5 reasonably obtainable, provided that the interest cost to the
250-6 authority, calculated by the use of standard bond interest tables
250-7 currently in use by insurance companies and investment houses, does
250-8 not exceed six percent per year. Within the discretion of the
250-9 board, bonds may be callable prior to maturity at the times and at
250-10 the prices prescribed in the resolution or order authorizing the
250-11 bonds. Bonds may be made registrable as to principal or as to both
250-12 principal and interest.
250-13 (f) After bonds have been authorized by the authority, the
250-14 bonds and the record relating to their issuance shall be submitted
250-15 to the attorney general for examination as to the validity of the
250-16 bonds and the record. If the attorney general approves the bonds,
250-17 the bonds shall be registered by the comptroller. After the bonds
250-18 have been approved by the attorney general, registered by the
250-19 comptroller, and delivered to the purchasers, the bonds are
250-20 incontestable except for forgery or fraud. If bonds payable in
250-21 whole or in part from net revenues recite that they are secured
250-22 partially or otherwise by a pledge of the proceeds of a contract or
250-23 contracts made between the authority and another party or parties,
250-24 public agency or otherwise, a copy of the contract or contracts and
250-25 the proceedings authorizing the contract or contracts shall be
250-26 submitted to the attorney general along with the bond record.
251-1 Approval by the attorney general of the bonds constitutes an
251-2 approval of the contract or contracts, and after the approval the
251-3 contract or contracts are incontestable except for forgery or
251-4 fraud.
251-5 (g) From the proceeds of sale of bonds, the board may
251-6 appropriate or set aside an amount for the payment of interest
251-7 expected to accrue during the period of construction of the
251-8 improvements or facilities, an amount or amounts to establish a
251-9 reserve fund or funds as provided in the bond order or resolution,
251-10 and an amount necessary to pay all expenses incurred and to be
251-11 incurred in issuance, sale, and delivery of the bonds.
251-12 Sec. 260.016. REFUNDING BONDS. (a) The board may issue
251-13 refunding bonds for the purpose of refunding any outstanding bonds
251-14 of the authority and accrued interest on the bonds. Refunding
251-15 bonds may be issued to refund more than one series or issue of
251-16 outstanding bonds payable wholly from taxes. Refunding bonds may
251-17 be issued to refund more than one series or issue of outstanding
251-18 bonds payable in whole or in part from net revenues and to combine
251-19 pledges for the outstanding bonds for the security of the refunding
251-20 bonds, and the refunding bonds may be secured by other and
251-21 additional revenues; provided, however, that bonds payable solely
251-22 from net revenues may not be refunded into bonds secured by taxes
251-23 unless authorized by a majority vote of the qualified voters voting
251-24 at an election called and held in the same manner as bond
251-25 elections; and provided further, that such refunding may not impair
251-26 the contract rights of the holders of any of the outstanding bonds
252-1 that are not being refunded.
252-2 (b) Refunding bonds must be authorized by resolution or
252-3 order of the board and must be executed and mature as is provided
252-4 in this chapter for original bonds. Refunding bonds bear interest
252-5 at the same or a lower rate than that of the bonds refunded unless
252-6 it is shown mathematically that a saving will result in the total
252-7 amount of interest to be paid.
252-8 (c) Refunding bonds shall be approved by the attorney
252-9 general as in the case of original bonds and shall be registered by
252-10 the comptroller on surrender and cancellation of the bonds to be
252-11 refunded, but in lieu of this procedure, the resolution or order
252-12 authorizing the issuance of the refunding bonds may provide that
252-13 the refunding bonds shall be sold and the proceeds of the sale
252-14 deposited in the place or places where the original bonds are
252-15 payable, in which case the refunding bonds may be issued in an
252-16 amount sufficient to pay the interest on the original bonds to
252-17 their option or maturity date and the comptroller shall register
252-18 the refunding bonds without the surrender and cancellation of the
252-19 original bonds. Refunding bonds, after they have been approved by
252-20 the attorney general and registered by the comptroller, are
252-21 incontestable except for forgery or fraud.
252-22 Sec. 260.017. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
252-23 DEPOSITS. (a) Bonds issued under this chapter are negotiable
252-24 instruments under the laws of the state, and the bonds are legal
252-25 and authorized investments for banks, savings banks, trust
252-26 companies, building and loan associations, insurance companies,
253-1 fiduciaries, trustees, and guardians and for the sinking funds of
253-2 cities, towns, villages, counties, school districts, or other
253-3 political corporations or subdivisions of the state.
253-4 (b) The bonds are eligible to secure the deposit of public
253-5 funds of the state and public funds of cities, towns, villages,
253-6 counties, school districts, or other political corporations or
253-7 subdivisions of the state; and the bonds are lawful and sufficient
253-8 security for such deposits to the extent of their face value when
253-9 accompanied by all unmatured coupons.
253-10 Sec. 260.018. MAINTENANCE TAX ELECTIONS. (a) All
253-11 maintenance tax elections shall be called and held as provided in
253-12 Section 260.015(d) of this chapter relating to elections for bonds
253-13 payable in whole or in part from taxes, and the following language
253-14 shall appear on the ballot in maintenance tax elections: "For
253-15 maintenance tax; and the contrary thereof."
253-16 (b) The regular voting or election precincts established by
253-17 the commissioners court of Jackson County for countywide elections
253-18 shall be the voting or election precincts for all elections called
253-19 and held under the provisions of this chapter. Except as modified
253-20 in this chapter, the Election Code shall apply to and govern all
253-21 elections called and held under the provisions of this section.
253-22 Sec. 260.019. TAXATION. (a) The board shall levy all taxes
253-23 of the authority, whether maintenance taxes or taxes to support
253-24 bonds, and the tax rolls of Jackson County shall be the tax rolls
253-25 of the authority.
253-26 (b) The authority shall furnish the officer responsible for
254-1 assessing and collecting taxes for the authority a certified copy
254-2 of each resolution or order adopted by the board in which taxes are
254-3 levied, and that officer shall assess and collect the taxes at the
254-4 same time as county taxes are assessed and collected and shall turn
254-5 the proceeds of such taxes, when collected, over to the authority
254-6 or its depository.
254-7 (c) All laws of the state relating to the assessing and
254-8 collecting of state and county taxes shall be applied to the
254-9 assessment and collection of current and delinquent taxes of the
254-10 authority, to the extent that such laws are applicable.
254-11 (d) The board may contract as provided by Chapter 791,
254-12 Government Code, with the board of directors of the Jackson County
254-13 Appraisal District for the performance of duties relating to
254-14 assessment or collection of taxes on behalf of the authority. The
254-15 board may contract with any other political subdivision of the
254-16 state having authority to assess or collect taxes in Jackson County
254-17 for the assessment or collection of taxes on behalf of the
254-18 authority.
254-19 Sec. 260.020. POWERS OF WATER CONTROL AND IMPROVEMENT
254-20 DISTRICTS. (a) Except as limited by this chapter, the authority
254-21 and the board shall have, with respect to the powers and privileges
254-22 granted under this chapter, all the powers and privileges granted
254-23 to water control and improvement districts and the board of
254-24 directors of such districts by Chapters 49 and 51.
254-25 (b) In addition to all other vested powers, the authority
254-26 may exercise all powers, rights, privileges, and functions that are
255-1 conferred by general or special law on water improvement districts
255-2 and water control and improvement districts created pursuant to
255-3 Section 59, Article XVI, Texas Constitution.
255-4 Sec. 260.021. CONSTRUCTION. The terms and provisions of
255-5 this chapter shall be liberally construed to effectuate the
255-6 purposes set forth in this chapter.
255-7 Sec. 260.022. FINDING OF BENEFIT. All property, both real
255-8 and personal, within the authority and within the state will
255-9 benefit from the authority and from the improvements and facilities
255-10 acquired or constructed and to be acquired or constructed under the
255-11 provisions of this chapter.
255-12 Sec. 260.023. LIMITED LIABILITY FOR AQUATIC HERBICIDE
255-13 APPLICATION. (a) In this section, "commercially licensed aquatic
255-14 herbicide applicator" means a person who holds a commercial
255-15 applicator license issued by the Department of Agriculture under
255-16 Chapter 76, Agriculture Code, that authorizes the application of
255-17 aquatic herbicides.
255-18 (b) Except as provided by Chapter 12, Parks and Wildlife
255-19 Code, an authority employee holding a noncommercial aquatic
255-20 herbicide applicator license or a commercially licensed aquatic
255-21 herbicide applicator working under contract with the authority is
255-22 not liable for damages in excess of $2 million for personal injury,
255-23 property damage, or death resulting from the application by the
255-24 applicator of aquatic herbicide in compliance with applicable law
255-25 and the terms of the license or permit.
256-1 CHAPTER 261. LOWER COLORADO RIVER AUTHORITY
256-2 Sec. 261.001. CREATION. (a) A conservation and reclamation
256-3 district to be known as the "Lower Colorado River Authority" is
256-4 created. The authority is a governmental agency and a body politic
256-5 and corporate.
256-6 (b) The authority is created under and is essential to
256-7 accomplish the purposes of Section 59, Article XVI, Texas
256-8 Constitution, including the control, storing, preservation, and
256-9 distribution of the waters of the Colorado River and its
256-10 tributaries within the boundaries of the authority for irrigation,
256-11 generation of electric energy and power, and other useful purposes;
256-12 the reclamation and irrigation of arid, semiarid, and other lands
256-13 needing irrigation; the development of parks on lands owned or
256-14 hereafter acquired by the authority; and the conservation and
256-15 development of the forests, water, and electric power in the state.
256-16 (c) Nothing in this chapter or in any other law shall be
256-17 construed as authorizing the authority to levy or collect taxes or
256-18 to create any indebtedness payable out of taxes or in any way to
256-19 pledge the credit of the state.
256-20 Sec. 261.002. DEFINITIONS. In this chapter:
256-21 (1) "Authority" means the Lower Colorado River
256-22 Authority.
256-23 (2) "Board" means the board of directors of the
256-24 authority.
256-25 (3) "Director" means a member of the board.
256-26 Sec. 261.003. TERRITORY. The authority consists of the
257-1 territory included within the boundaries of the counties of Blanco,
257-2 Burnet, Llano, Travis, Bastrop, Fayette, Colorado, Wharton, San
257-3 Saba, and Matagorda.
257-4 Sec. 261.004. POWERS AND DUTIES. (a) Except as expressly
257-5 limited by this chapter, the authority has all the powers, rights,
257-6 privileges, and functions conferred by general law on any district
257-7 or districts created under Section 59, Article XVI, Texas
257-8 Constitution, and as provided by this section.
257-9 (b) The authority may control, store, and preserve, within
257-10 the boundaries of the authority, the waters of the Colorado River
257-11 and its tributaries and the lands of the authority for any useful
257-12 purpose and may use, distribute, and sell those waters, within the
257-13 boundaries of the authority or within the boundaries of the
257-14 watershed that contributes inflow to the Colorado River below the
257-15 intersection of Coleman, Brown, and McCulloch counties, for any
257-16 such purpose.
257-17 (c) The authority may develop and generate water power and
257-18 electric energy within the boundaries of the authority and may
257-19 distribute and sell water power and electric energy, within or
257-20 outside the boundaries of the authority.
257-21 (d) The authority may prevent or aid, within the boundaries
257-22 of the authority, in the prevention of damage to person or property
257-23 from the waters of the Colorado River and its tributaries.
257-24 (e) The authority may forest and reforest and aid in the
257-25 foresting and reforesting of the watershed area of the Colorado
257-26 River and its tributaries, within the boundaries of the authority,
258-1 and may prevent and aid in the prevention of soil erosion and
258-2 floods within the watershed area.
258-3 (f) The authority may acquire by purchase, lease, or gift or
258-4 in any other manner provided by law and may maintain, use, and
258-5 operate any property of any kind, real, personal, or mixed, or any
258-6 interest in property, within or outside the boundaries of the
258-7 authority that is necessary or convenient to the exercise of the
258-8 powers, rights, privileges, and functions conferred on the
258-9 authority by this chapter.
258-10 (g) The authority may acquire by condemnation property of
258-11 any kind, real, personal, or mixed, or any interest in property,
258-12 within or outside the boundaries of the authority, other than
258-13 property or any interest in property outside the boundaries of the
258-14 authority owned by any body politic, that is necessary or
258-15 convenient to the exercise of the powers, rights, privileges, and
258-16 functions conferred on the authority by this chapter. The
258-17 authority shall exercise the condemnation power in the manner
258-18 provided by general law with respect to condemnation or, at the
258-19 option of the authority, in the manner provided by state law
258-20 relating to condemnation by districts organized under general law
258-21 pursuant to Section 59, Article XVI, Texas Constitution.
258-22 (h) Subject to the provisions of this chapter, the authority
258-23 may sell or otherwise dispose of property of any kind, real,
258-24 personal, or mixed, or any interest in the property, that is not
258-25 necessary to the carrying on of the business of the authority.
258-26 (i) The authority may overflow and inundate within the
259-1 boundaries of the authority any public lands and public property
259-2 and may require the relocation of roads, pipelines, transmission
259-3 lines, railroads, cemeteries, and highways in the manner and to the
259-4 extent permitted to districts organized under general law pursuant
259-5 to Section 59, Article XVI, Texas Constitution.
259-6 (j) The authority may construct, extend, improve, maintain,
259-7 and reconstruct, cause to be constructed, extended, improved,
259-8 maintained, and reconstructed, and use and operate facilities of
259-9 any kind necessary or convenient to the exercise of its powers,
259-10 rights, privileges, and functions.
259-11 (k) The authority may sue and be sued in its corporate name.
259-12 (l) The authority may adopt and use a corporate seal.
259-13 (m) The authority may make bylaws for the management and
259-14 regulation of its affairs.
259-15 (n) The authority may appoint officers, agents, and
259-16 employees, prescribe their duties, and set their compensation.
259-17 (o) The authority may make contracts and execute instruments
259-18 necessary or convenient to the exercise of the powers, rights,
259-19 privileges, and functions conferred on the authority by this
259-20 chapter or permitted by general law.
259-21 (p) The authority may borrow money for its corporate
259-22 purposes on notes or other written evidence of indebtedness for a
259-23 period not to exceed five years as may be authorized from time to
259-24 time by an affirmative vote of 12 members of the board, which loans
259-25 or indebtedness shall be repaid from the proceeds of bonds of the
259-26 authority at the next bond offering. The authority may borrow
260-1 money and accept grants from the United States, the state, or any
260-2 corporation or agency created or designated by the United States or
260-3 the state and, in connection with any such loans or grants, may
260-4 enter into such agreements as the United States, the state, or the
260-5 corporation or agency may require. The authority may make and
260-6 issue negotiable bonds for money borrowed in the manner provided by
260-7 Sections 261.013, 261.014, and 261.015 or other general law.
260-8 Nothing in this chapter shall authorize the issuance of any bonds,
260-9 notes, or other evidences of indebtedness of the authority except
260-10 as specifically provided by this chapter or other general law.
260-11 (q) The authority may provide for the study, correcting, and
260-12 control of both artificial and natural pollution, including
260-13 organic, inorganic, and thermal, of all ground or surface water of
260-14 the Colorado River and its tributaries within the boundaries of the
260-15 authority. The authority may promulgate by ordinance rules and
260-16 regulations with regard to the pollution, both artificial and
260-17 natural, and possesses police power to enforce its rules and
260-18 regulations. The authority may provide a reasonable penalty for
260-19 the violation of any rule or regulation, which shall be cumulative
260-20 of any penalties fixed by the general law of this state. A penalty
260-21 under this subsection may not exceed the limit for penalties
260-22 provided by Section 49.004. An ordinance enacted under this
260-23 section may not be promulgated in any county or counties outside
260-24 the existing boundaries of the authority.
260-25 (r) As a necessary aid to the conservation, control,
260-26 preservation, purification, and distribution of surface waters and
261-1 groundwater of the Colorado River and its tributaries within the
261-2 boundaries of the authority, the authority may have the power to
261-3 construct, own, operate, maintain, or otherwise provide sewage
261-4 gathering, treatment, and disposal services, including waste
261-5 disposal services, and may make contracts regarding those services
261-6 with the United States, the state, counties, municipalities, and
261-7 others. The authority shall charge the actual cost of those
261-8 services.
261-9 (s) The authority may develop and manage parks, recreational
261-10 facilities, and natural science laboratories and may promote the
261-11 preservation of fish and wildlife within the boundaries of the
261-12 authority. The authority may negotiate contracts with any county,
261-13 municipality, municipal corporation, person, firm, corporation,
261-14 nonprofit organization, or state or federal agency for the
261-15 operation and maintenance of any such park, recreational facility,
261-16 or natural science laboratory. The preservation of fish and
261-17 wildlife shall be in accordance with the rules and regulations of
261-18 the Parks and Wildlife Commission. Notwithstanding any other
261-19 provisions of this chapter, the board may charge and collect
261-20 reasonable entrance, gate, or use fees for the development,
261-21 management, and use of parks and recreational facilities developed
261-22 in whole or in part by the authority.
261-23 (t) The authority may enter into agreements authorized by
261-24 Chapter 163, Utilities Code, to acquire, install, construct,
261-25 operate, enlarge and make additions to, and own and operate
261-26 electric power and energy generating facilities as provided by that
262-1 chapter, in joint ownership with others, either as cotenants or
262-2 under such other arrangements as may be approved by a three-fourths
262-3 vote of the statutory membership of the board. In accordance with
262-4 and subject to the terms of the agreements, if any, the authority
262-5 may sell or otherwise dispose of any or all of its interest in the
262-6 jointly owned electric power and generating facilities. This
262-7 subsection does not apply to generating facilities or other
262-8 property wholly owned by the authority.
262-9 (u) The authority may do any and all other acts or things
262-10 necessary or convenient, including controlling the use of the
262-11 surface of any lake or island located in such lake developed by the
262-12 authority and levying a charge for the commercial use of the lake
262-13 or island, to the exercise of all powers, rights, privileges,
262-14 authority, or functions conferred on the authority by the
262-15 constitution, this chapter, or any law.
262-16 (v) The authority may enter into contracts with the state
262-17 through the General Services Commission providing for direct sale
262-18 by the authority of electrical power to the state for use in
262-19 buildings or other facilities owned, leased, or rented by the state
262-20 in Travis County.
262-21 Sec. 261.005. LIMITATIONS OF AUTHORITY. (a) The authority
262-22 may not use for irrigation purposes any water under any permit or
262-23 permits acquired from any other company or person unless such use
262-24 is expressly authorized by, and granted to the authority by, the
262-25 commission or its predecessor agency under authority of law. In
262-26 considering subsequent applications by the authority, the
263-1 commission shall at all times consider the needs of the people
263-2 living within and on lands lying within the watershed of the
263-3 Colorado River and its tributaries above the authority.
263-4 (b) Notwithstanding any rights or permits issued by the
263-5 commission or its predecessor agency that are held or acquired by
263-6 the authority, the impounding and use of the floodwaters of the
263-7 Colorado River or its tributaries for the generation of
263-8 hydroelectric power by the authority or anyone who may succeed to
263-9 the rights and privileges conferred on the authority by this
263-10 chapter are subject to the rights of a person, municipal
263-11 corporation, or body politic that, under legal grant of authority,
263-12 is impounding and putting to beneficial use the waters if the
263-13 person, municipal corporation, or body politic:
263-14 (1) has received a permit for the use from the
263-15 commission, or its predecessor agency; or
263-16 (2) is permitted by law to impound water for the
263-17 purposes described by this subsection.
263-18 (c) Nothing in this chapter shall be construed to require a
263-19 municipal corporation or body politic to surrender to the authority
263-20 any rights described by this section to which it may be legally
263-21 entitled.
263-22 (d) This chapter shall not be construed to subject to
263-23 condemnation by the authority or any successor, or by anyone who
263-24 may succeed to the rights and privileges conferred on the authority
263-25 by this chapter, any waters:
263-26 (1) impounded or to be impounded within or outside the
264-1 authority under any law authorizing water to be impounded or under
264-2 any permits granted to a municipal corporation or body politic; or
264-3 (2) impounded or permitted to be impounded or used
264-4 outside the authority under permits legally granted to any person.
264-5 (e) Nothing in this chapter shall be construed as depriving
264-6 any person or municipality of the right, legally granted, to
264-7 impound the waters of the Colorado River or its tributaries for
264-8 authorized beneficial uses or as repealing any law granting such
264-9 rights to persons and municipalities.
264-10 (f) The rights of the authority to impound or use or sell
264-11 the waters of the Colorado River and its tributaries for the
264-12 generation of hydroelectric power are subordinate and inferior to
264-13 the rights of:
264-14 (1) cities and towns situated within the boundaries of
264-15 the authority to build dams and impound floodwaters solely for
264-16 municipal purposes;
264-17 (2) cities and towns and bodies politic within the
264-18 watershed of the Colorado River outside the authority to build dams
264-19 or impound floodwaters for municipal purposes; and
264-20 (3) bodies politic within the watershed of the
264-21 Colorado River to build dams and impound the floodwaters within the
264-22 watershed of the Colorado River and its tributaries for domestic
264-23 purposes inside and outside the boundaries of the authority.
264-24 (g) The title to any rights, properties, licenses,
264-25 franchises, or permits acquired by the authority shall be subject
264-26 to the limitations imposed by Subsection (f).
265-1 Sec. 261.006. BOARD OF DIRECTORS. (a) The powers, rights,
265-2 privileges, and functions of the authority shall be exercised by
265-3 the board. The board shall consist of 15 directors and shall
265-4 include at least one director from each of the counties named in
265-5 Section 261.003 except Travis County, which shall have two
265-6 directors. Three directors shall be appointed at large by the
265-7 governor with the advice and consent of the senate from the
265-8 counties served with electric power, other than the counties
265-9 included in Section 261.003.
265-10 (b) A director appointed at large may not serve for a period
265-11 of more than six consecutive years. A county other than a county
265-12 included in Section 261.003 may not be represented on the board for
265-13 more than six consecutive years. A county other than Travis County
265-14 may not have two directors for a period greater than six
265-15 consecutive years.
265-16 (c) All directors shall be appointed by the governor with
265-17 the advice and consent of the senate for staggered terms of six
265-18 years, with five members' terms expiring on February 1 of each
265-19 odd-numbered year.
265-20 (d) Each director must be a resident and freehold property
265-21 taxpayer of the county from which the director is appointed and
265-22 must have been a resident and taxpayer of that county for not less
265-23 than two years immediately preceding the director's appointment.
265-24 Not more than two directors may be residents of the same county.
265-25 (e) A person is not eligible for appointment as a director
265-26 if the person has, during the three years immediately preceding the
266-1 person's appointment, been employed by an electric power and light
266-2 company, a telephone company, or any other utility company.
266-3 (f) At the expiration of the term of a director, a successor
266-4 shall be appointed by the governor with the advice and consent of
266-5 the senate. Each director shall hold office until the expiration
266-6 of the term for which the director was appointed and until a
266-7 successor has been appointed and has qualified, unless removed
266-8 sooner as provided by this section.
266-9 (g) A director may be removed by the governor for
266-10 inefficiency, neglect of duty, or misconduct in office after at
266-11 least 30 days written notice of the charges against the director
266-12 and an opportunity to be heard in person or by counsel at a public
266-13 hearing.
266-14 (h) A vacancy resulting from the death, resignation, or
266-15 removal of a director is filled by the governor for the unexpired
266-16 term.
266-17 (i) Each director shall qualify by taking the official oath
266-18 of office prescribed by the constitution or general laws of the
266-19 state.
266-20 (j) Each director is entitled to receive fees of office of
266-21 not more than $100 per day and reimbursement of actual expenses
266-22 incurred in accordance with Chapter 49; provided, however, that no
266-23 director is paid per diem in excess of 150 days in any one calendar
266-24 year.
266-25 (k) Eight directors constitute a quorum at any meeting and,
266-26 except as otherwise provided by this chapter or in the bylaws, all
267-1 action may be taken by the affirmative vote of a majority of the
267-2 directors present at any meeting, except that no bonds, notes, or
267-3 other evidence of indebtedness and no amendment of the bylaws shall
267-4 be valid unless authorized or ratified by the affirmative vote of
267-5 at least eight directors, unless otherwise specifically provided by
267-6 this chapter.
267-7 (l) The board is a state board as contemplated by Section
267-8 30a, Article XVI, Texas Constitution.
267-9 Sec. 261.007. OFFICERS; GENERAL MANAGER; EMPLOYEES.
267-10 (a) The board shall select a secretary, who shall keep true and
267-11 complete records of all proceedings of the board. Until the
267-12 appointment of a secretary or in the event of the secretary's
267-13 absence or inability to act, the board shall select a secretary pro
267-14 tempore.
267-15 (b) The board shall select a general manager. The general
267-16 manager is the chief executive officer of the authority.
267-17 (c) The board shall select a treasurer, who may also hold
267-18 the office of secretary.
267-19 (d) The officers described in Subsections (a)-(c) have the
267-20 powers and duties, hold office for the term, and are subject to
267-21 removal in the manner as may be provided in the bylaws.
267-22 (e) The board shall set the compensation of the officers.
267-23 The board may appoint the officers described in Subsections
267-24 (a)-(c), agents, and employees, may set their compensation and term
267-25 of office and the method by which they may be removed, and may
267-26 delegate to them the power and duties it determines proper.
268-1 Sec. 261.008. DISBURSEMENT OF FUNDS; SURETY BONDS. (a) The
268-2 money of the authority may be disbursed only on checks, drafts,
268-3 orders, or other instruments signed by the persons authorized by
268-4 the bylaws or a resolution concurred in by no fewer than eight
268-5 directors.
268-6 (b) The general manager, the treasurer, and all other
268-7 officers, agents, and employees of the authority charged with the
268-8 collection, custody, or payment of any funds of the authority must
268-9 give bond conditioned on the faithful performance of their duties
268-10 and an accounting for all funds and property of the authority
268-11 coming into their hands.
268-12 (c) The bonds must be in a form, amount, and with a surety
268-13 company authorized to do business in the state, approved by the
268-14 board.
268-15 (d) The premiums on the bonds shall be paid by the authority
268-16 and charged as an operating expense.
268-17 Sec. 261.009. OFFICE; RECORDS. (a) The domicile of the
268-18 authority is in the City of Austin, Travis County, where the
268-19 authority shall maintain its principal office in the charge of the
268-20 general manager.
268-21 (b) The authority shall keep complete and accurate accounts
268-22 conforming to approved methods of bookkeeping.
268-23 (c) The accounts and all contracts, documents, and records
268-24 of the authority shall be kept at the principal office. The
268-25 accounts and contracts shall be open to public inspection at all
268-26 reasonable times.
269-1 (d) The board shall cause to be made and completed, within
269-2 90 days after the end of each fiscal year, an audit of the books of
269-3 account and financial records of the authority for that fiscal
269-4 year. The audit shall be made by an independent certified public
269-5 accountant or firm of certified public accountants.
269-6 (e) Copies of a written report of the audit certified to by
269-7 the accountant or accountants must be placed and kept on file with
269-8 the commission, with the comptroller, and at the principal office
269-9 of the authority, and be open to public inspection at all
269-10 reasonable times.
269-11 Sec. 261.010. CONFLICT OF INTEREST. The provisions of
269-12 Chapter 171, Local Government Code, apply to conflicts of interest
269-13 in the award of authority contracts.
269-14 Sec. 261.011. RATES AND CHARGES. (a) The board shall
269-15 establish and collect rates and other charges for the sale or use
269-16 of water, water connections, power, electric energy, or other
269-17 services sold, furnished, or supplied by the authority. The fees
269-18 and charges must be reasonable and nondiscriminatory and sufficient
269-19 to produce revenues adequate to:
269-20 (1) pay all expenses necessary to the operation and
269-21 maintenance of the properties and facilities of the authority;
269-22 (2) pay the interest on and principal of all bonds
269-23 issued under this chapter as the interest and principal become due
269-24 and payable;
269-25 (3) pay the principal and interest on any legal debt
269-26 created by the authority;
270-1 (4) pay all sinking fund and reserve fund payments
270-2 agreed to be made with respect to bonds and payable out of such
270-3 revenues, as the payments become due and payable; and
270-4 (5) fulfill the terms of any agreements made with the
270-5 holders of bonds or with any person in their behalf.
270-6 (b) Out of the revenues that may be received in excess of
270-7 those required for the purposes specified in Subsection (a), the
270-8 board may:
270-9 (1) establish a reasonable depreciation and emergency
270-10 fund;
270-11 (2) retire, by purchase and cancellation or
270-12 redemption, bonds issued under this chapter; or
270-13 (3) apply the excess revenues to any corporate
270-14 purpose.
270-15 (c) The rates and charges of the authority may not be in
270-16 excess of what is necessary to fulfill the obligations imposed on
270-17 the authority by this chapter or other law. Nothing in this
270-18 chapter shall be construed as depriving the state of its power to
270-19 regulate and control fees or charges to be collected for the use of
270-20 water, water connections, power, electric energy, or other service;
270-21 provided, however, that the state pledges to and agrees with the
270-22 purchasers and successive holders of the bonds and other written
270-23 evidence of indebtedness issued under this chapter that the state
270-24 will not limit or alter the power vested in the authority to
270-25 establish and collect such fees and charges as will produce
270-26 revenues sufficient to pay the items specified in Subsection (a),
271-1 or in any way impair the rights or remedies of creditors or holders
271-2 of the bonds, or of any person in their behalf, until the bonds and
271-3 other written evidence of indebtedness, together with the interest
271-4 on the bonds or indebtedness and the interest on unpaid
271-5 installments of interest and all costs and expenses in connection
271-6 with any action or proceedings by or on behalf of the bondholders
271-7 and all other obligations of the authority in connection with the
271-8 bonds are fully met and discharged.
271-9 Sec. 261.012. PAYMENT OF DEBTS. Any indebtedness,
271-10 liability, or obligation of the authority for the payment of money,
271-11 however entered into or incurred and whether arising from contract,
271-12 implied contract, or otherwise, shall be payable solely:
271-13 (1) out of revenues received by the authority with
271-14 respect to its properties, subject to any prior lien on the
271-15 revenues conferred by any resolution or resolutions adopted as
271-16 provided by this chapter authorizing the issuance of bonds; or
271-17 (2) if the board so determines, out of the proceeds of
271-18 sale by the authority of bonds payable solely from such revenues.
271-19 Sec. 261.013. ISSUANCE OF BONDS. (a) The authority may
271-20 issue bonds from time to time and for any purpose authorized by
271-21 this chapter or other general law. If bonds of the authority are
271-22 issued, in addition to complying with other general law the bonds:
271-23 (1) when sold, shall be sold for cash at public sale
271-24 to the highest and best bidder, as determined by the board, and the
271-25 interest cost of the money received for the bonds, computed to
271-26 maturity in accordance with the method prescribed by the board in
272-1 connection with the sale of the bonds;
272-2 (2) may be issued, on such terms as the board
272-3 determines, in exchange for property of any kind, real, personal,
272-4 or mixed, or any interest in such property that the board
272-5 determines necessary or convenient for any corporate purposes,
272-6 provided that any property acquired through the exchange of bonds
272-7 is certified in writing before the exchange as being of a value
272-8 equal to or in excess of the par value of the bonds by an
272-9 independent appraisal that is to be kept on file by the authority
272-10 as a public record, with a copy filed with the state auditor;
272-11 (3) may be issued in exchange for like principal
272-12 amounts of other obligations of the authority, matured or
272-13 unmatured; or
272-14 (4) may be sold to the state or any agency of the
272-15 state, the United States, or any agency or corporation created or
272-16 designated by the state or the United States in exchange for cash
272-17 equal in amount to the principal amount of the bonds sold and the
272-18 interest cost of the money received for the bonds, computed to
272-19 maturity in accordance with standard bond tables in general use by
272-20 banks and insurance companies, as determined by the board.
272-21 (b) The proceeds from the sale of the bonds shall be
272-22 deposited in a bank or banks or a trust company or trust companies
272-23 and shall be paid out pursuant to such terms and conditions not in
272-24 conflict with the provisions of this chapter or other general law
272-25 as may be agreed on between the authority and the purchasers of the
272-26 bonds.
273-1 (c) The proceeds of the bonds and any net operating revenues
273-2 derived from the sale of electric power or water which may be
273-3 available after paying the interest on outstanding bonds and the
273-4 principal amount of such bonds and after setting aside sufficient
273-5 funds for working capital, including a reasonable amount for
273-6 contingencies, and setting aside funds for reserves to secure
273-7 payment of principal of and interest on outstanding bonds, shall be
273-8 used, in addition to any provision of general law:
273-9 (1) to build and construct dams or other structures
273-10 within the authority, on the Colorado River and its tributaries,
273-11 for the impounding and storage of floodwater and surface water;
273-12 (2) to purchase and install in the dams on the
273-13 Colorado River hydroelectric generators and other related
273-14 facilities for the generation of hydroelectric power;
273-15 (3) for the construction of additional lines and the
273-16 purchase and installation of additional equipment the board
273-17 considers necessary or expedient to enable the authority to
273-18 continue to meet the demand for electric power in the areas within
273-19 the authority directly served by its transmission lines and
273-20 distribution systems on January 1, 1975, and other areas within the
273-21 service area served by the authority on January 1, 1975, that
273-22 cannot receive comparable service from any other power source and
273-23 to provide electric power to the state as provided by Section
273-24 261.004; provided, however, that no steam generating capacity shall
273-25 be installed by the authority, except that the authority may
273-26 acquire, install, construct, enlarge and make additions to, and
274-1 operate one or more steam generating plants, the sum of whose
274-2 aggregate capacity shall not be more than 5,000 megawatts, to be
274-3 located within the boundaries of either one or more of Colorado,
274-4 Fayette, Bastrop, Travis, Blanco, Burnet, Llano, or San Saba
274-5 counties and to be utilized for the purpose of serving the area
274-6 directly served by the authority's transmission lines and
274-7 distribution systems on January 1, 1975, and to provide electric
274-8 power to the state as provided by Section 261.004;
274-9 (4) to own or acquire an interest in one or more steam
274-10 generating plants at any location within or outside the authority,
274-11 if any such plant or plants are owned in conjunction with one or
274-12 more other utilities, public, private, or municipal, provided that
274-13 any such interest owned or acquired by the authority shall be
274-14 utilized for the sole purpose of serving electric power and energy
274-15 only in the areas within the authority directly served by its
274-16 transmission lines and distribution systems as they existed on
274-17 January 1, 1975;
274-18 (5) for the purpose of building dams, levees, or such
274-19 other flood control structures between the City of Austin and the
274-20 mouth of the Colorado River as may be considered necessary and
274-21 desirable by the board and for acquiring or installing such
274-22 facilities necessary to supply water for irrigation and other
274-23 useful purposes within the counties composing the authority; and
274-24 (6) in aid of any soil conservation or soil
274-25 reclamation projects within the authority that the board determines
274-26 to be in the public interest.
275-1 (d) Nothing in this section shall be construed as
275-2 establishing priorities as to uses of water that are contrary to
275-3 the general laws of this state with reference to the water uses.
275-4 (e) Except as otherwise provided by general law, proceeds of
275-5 bonds sold by the authority, and any net operating revenues that
275-6 the board determines are not needed to carry out the projects set
275-7 out in Subsections (c)(1), (2), and (3), to the extent not required
275-8 by an outstanding trust indenture to be used to redeem outstanding
275-9 bonds, shall be placed in a general revenue fund of the authority.
275-10 Dams built on the tributaries of the Colorado River or on the
275-11 Colorado River shall be used for the purpose of impounding and
275-12 storing floodwaters and surface waters.
275-13 (f) Bonds shall be authorized by resolution of the board
275-14 concurred in by at least 12 of the members.
275-15 (g) Bonds shall bear such date or dates, mature at such time
275-16 or times, bear interest at such rates, payable annually or
275-17 semiannually, be in such denominations, be in such form, either
275-18 coupon or registered, carry such registration privileges as to
275-19 principal only or as to both principal and interest and as to
275-20 exchange of coupon bonds for registered bonds or vice versa and
275-21 exchange of bonds of one denomination for bonds of other
275-22 denominations, be executed in such manner, and be payable at such
275-23 place or places within or outside the state as the resolution or
275-24 resolutions may provide.
275-25 (h) A resolution or resolutions authorizing bonds may
275-26 contain provisions, which shall be part of the contract between the
276-1 authority and the holder of the bonds from time to time:
276-2 (1) reserving the right to redeem the bonds at the
276-3 time or times, in the amounts, and at the prices, not exceeding 105
276-4 percent of the principal amount of the bonds, plus accrued
276-5 interest, as may be provided;
276-6 (2) providing for the setting aside of interest and
276-7 sinking funds or reserve funds and the regulation and disposition
276-8 of those funds;
276-9 (3) pledging, to secure the payment of the principal
276-10 of and interest on the bonds and of the sinking fund or reserve
276-11 fund payments agreed to be made with respect to the bonds, all or
276-12 any part of the gross or net revenues received by the authority
276-13 with respect to the property, real, personal, or mixed, acquired or
276-14 constructed or to be acquired or constructed with the bonds or the
276-15 proceeds of the bonds, or all or any part of the gross or net
276-16 revenues previously or thereafter received by the authority from
276-17 any source;
276-18 (4) prescribing the purposes to which the bonds or any
276-19 bonds issued later are to be applied;
276-20 (5) agreeing to set and collect rates and charges
276-21 sufficient to produce revenues adequate to pay the items specified
276-22 in Section 261.011(a) and prescribing the use and disposition of
276-23 all revenues;
276-24 (6) prescribing limitations on the issuance of
276-25 additional bonds and on the agreements that may be made with the
276-26 purchasers and successive holders of the bonds;
277-1 (7) relating to the construction, extension,
277-2 improvement, reconstruction, operation, maintenance, and repair of
277-3 the properties of the authority and the carrying of insurance on
277-4 all or any part of the properties covering loss or damage or loss
277-5 of use and occupancy resulting from specified risks;
277-6 (8) setting the procedure, if any, by which, if the
277-7 authority so desires, the terms of any contract with the holders of
277-8 the bonds may be amended or abrogated, the amount of bonds whose
277-9 holders must consent to such amendment or abrogation and the manner
277-10 in which the consent may be given;
277-11 (9) providing for the execution and delivery by the
277-12 authority, to a bank or trust company authorized by law to accept
277-13 trusts, of indentures and agreements for the benefit of the holders
277-14 of the bonds setting forth all of the agreements authorized by this
277-15 chapter to be made with or for the benefit of the holders of the
277-16 bonds and other provisions as may be customary in such indentures
277-17 or agreements; and
277-18 (10) making other provisions, not inconsistent with
277-19 the provisions of this chapter or other general law, as the board
277-20 may approve, provided that no agreement, contract, or commitment
277-21 shall ever be made which, under any contingency, could or would
277-22 result in the United States government or any of its agencies or
277-23 bureaus claiming the right or privilege of controlling or managing
277-24 the properties and facilities of the authority or the control or
277-25 disposition of the water of the Colorado River or its tributaries;
277-26 provided, however, that nothing in this chapter shall be construed
278-1 as limiting or restricting the rights or powers as set out in
278-2 Section 261.014 in the event of any default on the part of the
278-3 authority; and provided further that nothing in this chapter is
278-4 intended to prohibit compliance with existing federal regulations,
278-5 if compliance with those regulations is done on the advice and
278-6 approval of the attorney general.
278-7 Sec. 261.014. DEFAULT PROCEDURES. (a) A resolution
278-8 authorizing the issuance of bonds and any indenture or agreement
278-9 entered into pursuant to the resolution may include provisions
278-10 regarding a default on:
278-11 (1) the payment of the interest on any bonds as the
278-12 interest becomes due and payable;
278-13 (2) the payment of the principal of any bonds as they
278-14 become due and payable, whether at maturity, by call for
278-15 redemption, or otherwise; or
278-16 (3) the performance of an agreement made with the
278-17 purchasers or successive holders of any bonds.
278-18 (b) If a default described by Subsection (a) has occurred
278-19 and has continued for a period, if any, prescribed by the
278-20 resolution authorizing the issuance of the bonds, the trustee under
278-21 the indenture or indentures entered into with respect to the bonds
278-22 authorized by the resolution, or, if there is no indenture, a
278-23 trustee appointed in the manner provided in the resolution by the
278-24 holders of 25 percent in aggregate principal amount of the bonds
278-25 authorized by the resolution or resolutions and then outstanding,
278-26 shall, in the trustee's own name but for the equal and
279-1 proportionate benefit of the holders of all the bonds, and with or
279-2 without having possession of the bonds:
279-3 (1) by mandamus or other suit, action, or proceeding
279-4 at law or in equity, enforce all rights of the holders of the
279-5 bonds, including the requirements of Section 261.011;
279-6 (2) bring suit on the bonds or the appurtenant
279-7 coupons;
279-8 (3) by action or suit in equity, require the authority
279-9 to account as if it were the trustee of an express trust for the
279-10 bondholders;
279-11 (4) by action or suit in equity, enjoin any acts or
279-12 things which may be unlawful or in violation of the rights of the
279-13 holders of the bonds; or
279-14 (5) after such notice to the authority as the
279-15 resolution may provide, declare the principal of all of the bonds
279-16 due and payable, and if all defaults have been made good, then with
279-17 the written consent of the holders of 25 percent in aggregate
279-18 principal amount of the bonds then outstanding, annul the
279-19 declaration and its consequences; provided, however, that the
279-20 holders of more than a majority in principal amount of the bonds
279-21 authorized by the resolution and then outstanding shall, by written
279-22 instrument delivered to the trustee, have the right to direct and
279-23 control any and all action taken or to be taken by the trustee
279-24 under this section.
279-25 (c) A resolution, indenture, or agreement relating to bonds
279-26 may provide that in such suit, action, or proceeding under this
280-1 section, the trustee, whether or not all of the bonds have been
280-2 declared due and payable and with or without possession of any of
280-3 the bonds, shall be entitled as of right to the appointment of a
280-4 receiver who may enter and take possession of all or any part of
280-5 the properties of the authority and operate and maintain the
280-6 properties and set, collect, and receive rates and charges
280-7 sufficient to provide revenues adequate to pay the items set forth
280-8 in Section 261.011(a) and the costs and disbursements of the suit,
280-9 action, or proceeding and apply such revenues in conformity with
280-10 the provisions of this chapter and the resolution or resolutions
280-11 authorizing the bonds.
280-12 (d) In any suit, action, or proceeding by a trustee under
280-13 this section, the reasonable fees, counsel fees, and expenses of
280-14 the trustee or the receiver or receivers, if any, constitute
280-15 taxable disbursements, and all costs and disbursements allowed by
280-16 the court shall be a first charge on any revenues pledged to secure
280-17 the payment of the bonds.
280-18 (e) Subject to the provisions of the constitution, the
280-19 courts of Travis County shall have jurisdiction of any suit,
280-20 action, or proceeding under this section by a trustee on behalf of
280-21 the bondholders and of all property involved in the suit, action,
280-22 or proceeding.
280-23 (f) In addition to the powers specifically provided by this
280-24 section, the trustee shall have and possess all powers necessary or
280-25 appropriate for the exercise of the powers specifically provided or
280-26 incident to the general representation of the bondholders in the
281-1 enforcement of their rights.
281-2 Sec. 261.015. BOND APPROVAL AND REGISTRATION. (a) Before
281-3 any bonds may be sold by the authority, a certified copy of the
281-4 proceedings for the issuance of the bonds, including the form of
281-5 the bonds, together with any other information the attorney general
281-6 may require, shall be submitted to the attorney general, and if the
281-7 attorney general finds that the bonds have been issued in
281-8 accordance with law, the attorney general shall approve the bonds
281-9 and shall execute a certificate to that effect which shall be filed
281-10 in the office of the comptroller and be recorded in a record kept
281-11 for that purpose. Bonds may not be issued until they have been
281-12 registered by the comptroller, who shall register the bonds if the
281-13 attorney general has filed with the comptroller the certificate
281-14 approving the bonds and the proceedings for the issuance of the
281-15 bonds as provided in this subsection.
281-16 (b) Bonds approved by the attorney general and registered by
281-17 the comptroller and issued in accordance with the proceedings so
281-18 approved are valid and binding obligations on the revenues of the
281-19 authority and are incontestable for any cause after their
281-20 registration.
281-21 Sec. 261.016. AUDIT. The authority shall be subject to the
281-22 audit provisions of Subchapter G, Chapter 49.
281-23 Sec. 261.017. AUTHORITY AS CONSERVATION AND RECLAMATION
281-24 DISTRICT. (a) The authority shall manage and use its facilities,
281-25 the water impounded by its dams on the Colorado River or its
281-26 tributaries, and the net operating revenues which may be available
282-1 to accomplish, to the extent possible, the purposes included in
282-2 Section 59(a), Article XVI, Texas Constitution, that are enumerated
282-3 in the provisions of this chapter or other general law, and the
282-4 authority shall market such electric power that in the opinion of
282-5 the board will not be immediately needed by the authority, under
282-6 contracts and on conditions that will best enable the authority to
282-7 pay its operating expenses, meet its outstanding financial
282-8 obligations as they mature, supply the increasing demand for
282-9 electric power in the area dependent on its systems for electric
282-10 service on April 28, 1975, and assure, to the extent possible, an
282-11 adequate supply of water for irrigation and other useful purposes,
282-12 as it is needed in the various counties comprising the authority.
282-13 (b) When bonds are to be issued to finance in whole or in
282-14 part water-impounding facilities, before approving the bonds the
282-15 attorney general shall be furnished a resolution from the
282-16 commission or its successor agency certifying that the authority
282-17 possesses the necessary water right authorizing it to impound or
282-18 otherwise appropriate the waters to be utilized by the project.
282-19 Sec. 261.018. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued
282-20 by the authority pursuant to the provisions of this chapter or
282-21 other general law are negotiable instruments under the laws of this
282-22 state.
282-23 Sec. 261.019. ADDITIONAL POWERS RELATING TO CONTRACTS,
282-24 RULES, AND REGULATIONS. The authority may, but without intending
282-25 by this provision to limit any powers of the authority as granted
282-26 to it by this chapter or other general law, enter into and carry
283-1 out contracts or establish or comply with rules and regulations
283-2 concerning labor and materials and other related matters in
283-3 connection with any project or projects as the authority considers
283-4 desirable or as requested by the United States, the state, or any
283-5 corporation or agency created, designated, or established by the
283-6 United States or the state that may assist in the financing of the
283-7 project or projects.
283-8 Sec. 261.020. PURCHASE OF BONDS. The authority may, out of
283-9 any funds available for the purpose, purchase any bonds issued by
283-10 it at a price not exceeding the redemption price applicable at the
283-11 time of the purchase, or if the bonds are not redeemable, at a
283-12 price not exceeding the principal amount of the bonds plus accrued
283-13 interest. All bonds so purchased shall be canceled.
283-14 Sec. 261.021. DISPOSITION OF PROPERTY. (a) Nothing in this
283-15 chapter shall be construed as authorizing the authority, and the
283-16 authority is not authorized, to mortgage or otherwise encumber any
283-17 of its property of any kind, real, personal, or mixed, or any
283-18 interest in such property, or to acquire any property or interest
283-19 subject to a mortgage or conditional sale, provided that this
283-20 section shall not be construed as preventing the pledging of the
283-21 revenues of the authority as authorized by this chapter.
283-22 (b) Nothing in this chapter shall be construed as
283-23 authorizing the sale of any property or interest by the authority
283-24 or by any receiver of any of its properties or through any court
283-25 proceeding or otherwise, unless, by the affirmative vote of
283-26 three-fourths of its statutory membership, the board has determined
284-1 that the property or interest is not necessary or convenient or of
284-2 beneficial use to the business of the authority and has approved
284-3 the terms of the sale. Except by sale as expressly authorized in
284-4 this section, no such property or interest shall ever come into the
284-5 ownership or control, directly or indirectly, of any person, firm,
284-6 or corporation other than a public authority created under the laws
284-7 of the state or a nonprofit corporation created by the authority
284-8 under Chapter 152.
284-9 (c) The limitations on the sale of properties of the
284-10 authority in this section shall not and are not intended to
284-11 preclude the authority from selling any interest owned or held by
284-12 the authority in any jointly owned electric power and generating
284-13 facilities constructed, or to be constructed, pursuant to the
284-14 provisions of Section 261.004(t), provided that any such sale of an
284-15 ownership interest in a joint project is provided for and in
284-16 conformance with any contract with other owners regarding such
284-17 electric power and energy generating facilities.
284-18 (d) All property of the authority shall be at all times
284-19 exempted from forced sale, and nothing in this chapter shall be
284-20 construed to authorize the sale of any of the property of the
284-21 authority under any judgment rendered in any suit, and such sales
284-22 are prohibited.
284-23 Sec. 261.022. PROPERTY AGREEMENTS WITH CITY OF AUSTIN.
284-24 Nothing in this chapter prohibits the authority from owning
284-25 property in conjunction with, acquiring property from, or selling
284-26 property to the City of Austin, on terms and conditions as the
285-1 authority and the city may agree. The authority may acquire
285-2 property from the City of Austin subject to repurchase agreements,
285-3 or other terms and conditions as may be agreed on between the
285-4 authority and the city, and may enter into such contractual
285-5 relations with the city respecting property as the parties may
285-6 agree on.
285-7 Sec. 261.023. PROPERTY USEFUL IN THE PRODUCTION OR
285-8 UTILIZATION OF ELECTRIC ENERGY. Nothing in this chapter shall
285-9 prohibit or restrict the sale, lease, or other disposition, to any
285-10 electric cooperative, municipality, nonprofit corporation created
285-11 by the authority under Chapter 152, or other governmental agency or
285-12 body politic and corporate of the state, of any property acquired
285-13 or constructed by the authority and incidental to or used or useful
285-14 in the generation, production, transmission, distribution, or sale
285-15 of electric energy. The authority is authorized to pledge the
285-16 proceeds of any such sale or sales to the same extent and in the
285-17 same manner in which it is authorized to pledge its revenues.
285-18 Sec. 261.024. PUBLIC ACCESS. (a) The authority may not
285-19 prevent the public use of its lands for recreation purposes and
285-20 fishing except at such points where, in the opinion of the board,
285-21 the use would interfere with the proper conduct of the business of
285-22 the authority or would interfere with the lawful use of the
285-23 property. A lease of authority lands, except one expressly
285-24 permitted by Section 261.023, is not lawful unless it provides for
285-25 free public use of the lands for recreational purposes and fishing.
285-26 (b) All public rights-of-way traversing the areas adjacent
286-1 to the areas flooded or to be flooded by the impounded waters shall
286-2 remain open as a way of free public passage to and from the lakes
286-3 created, and no charge shall ever be made to the public for the
286-4 right to engage in fishing, boating, or swimming on such lakes.
286-5 (c) If any citizen of the state or of the United States
286-6 advises the attorney general that this section has not been
286-7 complied with, the attorney general is authorized after
286-8 investigation of the complaint and notice to the authority to
286-9 institute the proper legal proceedings, if any are required, to
286-10 require the authority or its successor to comply with this section.
286-11 (d) If any of the land owned by the authority bordering the
286-12 lakes to be created under the authority of this chapter is sold by
286-13 the authority, the authority shall retain in each tract a strip 20
286-14 feet wide abutting the high-water line of the lake for the purpose
286-15 of passage and use by the public for public sports and amusements;
286-16 provided, however, that this subsection shall not apply to any
286-17 sales of land by the authority to any state or federal agency to be
286-18 used for game or fish sanctuaries, preserves, or for propagation
286-19 purposes.
286-20 Sec. 261.025. BONDS EXEMPT FROM TAXATION. All bonds and
286-21 interest on the bonds issued under the provisions of this chapter
286-22 are exempt from taxation, except inheritance taxes, by the state or
286-23 by any municipal corporation, county, or other political
286-24 subdivision or taxing district of the state.
286-25 Sec. 261.026. SOURCE OF AUTHORITY. (a) This chapter,
286-26 without reference to other statutory provisions, constitutes full
287-1 authority for the authorization and issuance of bonds under this
287-2 chapter, and no other act or law with regard to the authorization
287-3 or issuance of obligations or the deposit of the proceeds of
287-4 obligations, or in any way impeding or restricting the carrying out
287-5 of the acts authorized by this chapter shall be construed as
287-6 applying a limitation to any proceedings taken under or acts done
287-7 pursuant to this chapter.
287-8 (b) Nothing in this chapter shall prevent the authority from
287-9 issuing bonds under any applicable general law of the state,
287-10 provided, however, that no bonds are issued that would be in
287-11 conflict with Section 261.025.
287-12 Sec. 261.027. BONDS AS INVESTMENTS AND SECURITY FOR
287-13 DEPOSITS. (a) All bonds of the authority are legal and authorized
287-14 investments for individuals, partnerships, profit and nonprofit
287-15 corporations, banks, savings banks, trust companies, building and
287-16 loan associations, savings and loan associations, insurance
287-17 companies, fiduciaries, trustees, and guardians and for the sinking
287-18 funds of cities, towns, villages, counties, school districts, or
287-19 other political corporations or subdivisions of the state.
287-20 (b) The bonds are eligible to secure the deposit of all
287-21 public funds of the state and any public funds of cities, towns,
287-22 villages, counties, school districts, or other political
287-23 corporations or subdivisions of the state and are lawful and
287-24 sufficient security for such deposits to the extent of their par
287-25 value when accompanied by all unmatured coupons.
287-26 Sec. 261.028. CONSTRUCTION. (a) This chapter and all of
288-1 its terms and provisions shall be liberally construed to carry out
288-2 the purposes set forth in this chapter.
288-3 (b) Nothing in this chapter shall affect the meaning of
288-4 Section 261.011, formerly Section 9, Chapter 74, Acts of the 64th
288-5 Legislature, Regular Session, 1975, as it existed prior to the
288-6 adoption of this chapter, except where specifically amended.
288-7 Sec. 261.029. AUTHORITY POWERS IN LAMPASAS COUNTY.
288-8 Notwithstanding any other provision of this chapter, the authority
288-9 may exercise all powers within Lampasas County that it may
288-10 otherwise exercise within the 10 counties specified in Section
288-11 261.003, except that the authority may not provide water or
288-12 wastewater services in the portion of Lampasas County outside the
288-13 Colorado River watershed without the consent of the Brazos River
288-14 Authority.
288-15 Sec. 261.030. ADDITIONAL SPECIFIC POWERS. (a)
288-16 Notwithstanding any other provision of this chapter, the authority:
288-17 (1) may purchase, construct, acquire, own, operate,
288-18 repair, improve, or extend any facility necessary or convenient to
288-19 provide water services in Williamson County in cooperation with
288-20 another special district, a municipality, or another governmental
288-21 entity;
288-22 (2) may not provide water services in the watershed of
288-23 the Brazos River unless the authority obtains in writing the
288-24 consent of the Brazos River Authority before the services are
288-25 provided; and
288-26 (3) may transfer surface water from the authority to a
289-1 place in Williamson County that is outside the watershed of the
289-2 Colorado River only if the transfer is made to:
289-3 (A) a municipality that was a water customer of
289-4 the authority on May 20, 1997, and located in the watersheds of
289-5 both the Colorado River and the Brazos River; or
289-6 (B) a person or entity that pays for the surface
289-7 water in an amount sufficient to pay both the authority's
289-8 applicable water rate and an additional charge to pay the costs of
289-9 mitigating any adverse effects of the transfer of surface water to
289-10 Williamson County from the Colorado River watershed, and provided
289-11 the transfer results in no net loss of water to the Colorado River
289-12 watershed as determined by the board.
289-13 (b) Notwithstanding the amounts of surface water transferred
289-14 by the authority to municipalities in accordance with Subsection
289-15 (a)(3)(A), the volume of surface water authorized for transfer by
289-16 the authority in accordance with Subsection (a)(3)(B) shall not
289-17 exceed 25,000 acre-feet per year, it being the intent of the
289-18 legislature that the authority shall not be the sole provider of
289-19 surface water to Williamson County.
289-20 (c) The authority shall determine the amount of the
289-21 additional charge under Subsection (a)(3)(B). The additional
289-22 charge may not be less than 10 percent of the authority's
289-23 applicable rate for surface water to be transferred. The authority
289-24 shall deposit any money the authority receives from the additional
289-25 charge, and may deposit any other money as the board determines,
289-26 into a separate fund designated as the agricultural water
290-1 conservation fund. The authority may use money from the
290-2 agricultural water conservation fund only for the development of
290-3 water resources or other water use strategies to replace or offset
290-4 the amount of surface water to be transferred to Williamson County,
290-5 including the development and implementation of methods, programs,
290-6 and strategies relating to groundwater resources, reuse,
290-7 conservation, and other opportunities to reduce the reliance on
290-8 surface water for agricultural irrigation, provided that the
290-9 methods, programs, and strategies take into consideration the
290-10 surface water and groundwater needs of the affected Colorado River
290-11 Basin users.
290-12 (d) Before its determination of the use of money from the
290-13 agricultural water conservation fund, the authority shall consult
290-14 with an advisory committee representing agricultural irrigation
290-15 interests that is appointed by the county judges of Matagorda,
290-16 Wharton, and Colorado counties. The board's determination of the
290-17 additional charge is not subject to review or modification by any
290-18 regulatory agency or independent reviewing authority. Water
290-19 resources developed or conserved through the additional charge may
290-20 be acquired from any source inside or outside the boundaries of the
290-21 authority and shall be used to benefit the water service areas of
290-22 the authority's irrigation operations.
290-23 CHAPTER 262. LOWER NECHES VALLEY AUTHORITY
290-24 Sec. 262.001. CREATION. (a) A conservation and reclamation
290-25 district to be known as the "Lower Neches Valley Authority" is
290-26 created. The authority is a governmental agency and a body politic
291-1 and corporate.
291-2 (b) The authority is created under and is essential to
291-3 accomplish the purposes of Section 59, Article XVI, Texas
291-4 Constitution.
291-5 (c) The authority may exercise the powers granted by Section
291-6 59, Article XVI, Texas Constitution, to districts created to
291-7 conserve, store, control, preserve, utilize, and distribute the
291-8 storm waters, floodwaters, and waters of the rivers and streams of
291-9 the state, as well as such powers as may be contemplated and
291-10 implied by the purposes of that provision of the constitution and
291-11 as may be conferred by general law and by the provisions of this
291-12 chapter, except that nothing in this chapter shall be construed to
291-13 authorize the authority to levy any taxes or special assessments.
291-14 (d) The authority may construct, maintain, and operate, in
291-15 the Neches River basin, within or outside the boundaries of the
291-16 authority, any and all works deemed essential to the operation of
291-17 the authority and for its administration in the control, storing,
291-18 preservation, and distribution for all useful purposes of the
291-19 waters of the Neches River and its tributaries, including the storm
291-20 waters and floodwaters.
291-21 (e) The authority may exercise such authority and power of
291-22 control and regulations over such waters of the Neches River and
291-23 its tributaries as may be exercised by a district under general law
291-24 not in conflict with this chapter, subject to the provisions of the
291-25 constitution and the acts of the legislature.
291-26 Sec. 262.002. DEFINITIONS. In this chapter:
292-1 (1) "Authority" means the Lower Neches Valley
292-2 Authority.
292-3 (2) "Board" means the board of directors of the
292-4 authority.
292-5 (3) "Director" means a member of the board.
292-6 (4) "Neches River basin" means the area within the
292-7 Neches River basin as defined by the Texas Water Development Board
292-8 and any area within the boundaries of the authority.
292-9 (5) "Neches River and its tributaries" means the
292-10 waters of the rivers, streams, and watercourses within the Neches
292-11 River basin.
292-12 Sec. 262.003. TERRITORY. The territory of the authority is
292-13 as follows: All of Jefferson, Hardin and Tyler Counties, a strip
292-14 of land ten (10) miles in width off the Eastern end of Liberty
292-15 County (the West line of said strip being parallel to and ten (10)
292-16 miles West of the extreme Eastern boundary line of Liberty County,
292-17 and a strip of land fifteen (15) miles in width off the East side
292-18 of Chambers County. (the West line of such strip being parallel to
292-19 and fifteen (15) miles West of the Eastern boundary line of
292-20 Chambers County).
292-21 Sec. 262.004. BOARD OF DIRECTORS. (a) The management and
292-22 control of all the affairs of the authority shall be vested in a
292-23 board consisting of nine directors.
292-24 (b) A director must be a freehold property taxpayer and a
292-25 legal voter of the state.
292-26 (c) The governor shall appoint the directors with the advice
293-1 and consent of the senate. The board shall include five residents
293-2 of Jefferson County, two of Hardin County, and two of Tyler County.
293-3 (d) Directors serve for staggered terms of six years.
293-4 Directors hold office after their appointment and qualification
293-5 until their successors are appointed and have qualified, unless
293-6 sooner removed by the governor.
293-7 (e) If a vacancy occurs on the board, the vacancy is filled
293-8 for the unexpired term in the manner provided in appointments for a
293-9 full term.
293-10 (f) As soon as practical after a director is appointed, that
293-11 director shall qualify by making the sworn statement prescribed by
293-12 law for public office, taking the official oath prescribed by the
293-13 constitution for public office and filing with the secretary of
293-14 state a bond payable to the authority, all in accordance with
293-15 Section 49.055.
293-16 Sec. 262.005. ADMINISTRATIVE PROVISIONS. The authority
293-17 shall operate pursuant to the applicable provisions of Subchapter
293-18 C, Chapter 49.
293-19 Sec. 262.006. ACCOUNT RECORDS; AUDIT. The authority shall
293-20 keep a complete book of accounts and prepare an annual audit,
293-21 subject to the applicable provisions of Subchapter G, Chapter 49.
293-22 Sec. 262.007. CONTROL AND EMPLOYMENT OF WATERS; POWERS AND
293-23 DUTIES. (a) The authority may exercise, in addition to all the
293-24 powers otherwise provided by this chapter for the conservation and
293-25 beneficial utilization of waters, the power of control and
293-26 employment of the waters of the Neches River basin, including the
294-1 storm waters and floodwaters, in the manner and for the following
294-2 purposes:
294-3 (1) to provide through practical and legal means for
294-4 the control and coordination of the regulation of the waters of the
294-5 Neches River basin;
294-6 (2) to provide by adequate organization and
294-7 administration for the preservation of the equitable rights of the
294-8 people of the different sections of the watershed area in the
294-9 beneficial use of the waters of the Neches River basin;
294-10 (3) to provide for storage, control, and conservation
294-11 of the waters of the Neches River basin within or outside the
294-12 authority in order to prevent the escape of any of the waters
294-13 without the maximum of public service and to provide for the
294-14 prevention of the devastation of lands from recurrent overflows and
294-15 the protection of life and property in the authority from
294-16 uncontrolled floodwaters;
294-17 (4) to provide for the conservation of the waters of
294-18 the Neches River basin essential for domestic and municipal uses;
294-19 (5) to provide for the irrigation of all lands in the
294-20 authority, lands outside the authority but within the Neches River
294-21 basin, where irrigation is required for agricultural purposes, or
294-22 may be deemed helpful to more profitable agricultural production,
294-23 to provide for the treatment of water and wastewater and solid
294-24 waste, and to provide for the equitable distribution of water to
294-25 the regional potential requirements for all uses, domestic,
294-26 industrial, and irrigation;
295-1 (6) to provide for encouragement and development of
295-2 drainage systems and provisions for drainage of lands in the Neches
295-3 River basin needing drainage for profitable agricultural production
295-4 and for drainage of other lands in the Neches River basin requiring
295-5 drainage for the most advantageous use;
295-6 (7) to provide for the conservation of all soils
295-7 against destructive erosion and to prevent the increased flood
295-8 dangers caused by destructive soil erosion;
295-9 (8) to control and make storm waters and floodwaters
295-10 available for employment in the development of industrial uses in
295-11 all sections of the Neches River basin;
295-12 (9) to provide for the control, storage, and
295-13 employment of storm waters and floodwaters in the development and
295-14 distribution of hydroelectric power, where this use may be
295-15 economically coordinated with other and superior uses and
295-16 subordinated to the uses declared by law to be superior;
295-17 (10) to provide for all purposes for which floodwaters
295-18 and storm waters, when controlled and conserved, may be used in the
295-19 performance of a useful service as contemplated and authorized by
295-20 the provisions of the Texas Constitution and the public policy it
295-21 declares; and
295-22 (11) to provide water for beneficial uses pursuant to
295-23 an interlocal agreement for economic development programs.
295-24 (b) The authority may purchase or construct all works
295-25 necessary or convenient for the exercise of the powers and to
295-26 accomplish the purposes specified in this chapter and to purchase
296-1 or otherwise acquire all lands or other property necessary or
296-2 convenient for carrying out those purposes.
296-3 (c) Plans and works provided by the authority and works
296-4 provided under authorization of the authority must give primary
296-5 consideration to the necessary and potential needs for water by or
296-6 within the Neches River basin.
296-7 (d) The authority may exercise any applicable power or duty
296-8 provided by Subchapter H, Chapter 49, or any other applicable
296-9 general law of the state.
296-10 Sec. 262.008. FEES AND CHARGES. (a) The board shall
296-11 prescribe fees and charges to be collected for the use of water,
296-12 water connections, or other service. The fees and charges must be
296-13 reasonable and equitable and fully sufficient to produce revenues
296-14 adequate to pay, and from which the board shall pay:
296-15 (1) all expenses necessary to the operation and
296-16 maintenance of the improvements and facilities of the authority,
296-17 including the cost of the acquisition of properties and materials
296-18 necessary to maintain the improvements and facilities in good
296-19 condition and to operate them efficiently, necessary wages and
296-20 salaries of the authority, and such other expenses as may be
296-21 reasonably necessary to the efficient operation of the improvements
296-22 and facilities;
296-23 (2) the annual or semiannual interest on any
296-24 obligations issued under this chapter that are payable out of the
296-25 revenues of the improvements and facilities; and
296-26 (3) the amount required to be paid annually into the
297-1 sinking fund for the payment of any obligations issued under this
297-2 chapter that are payable out of the revenues of the improvements
297-3 and facilities.
297-4 (b) No charges other than those authorized by Subsection (a)
297-5 may be made on the revenues derived from the improvements and
297-6 facilities of the authority if any obligations issued under this
297-7 chapter remain outstanding and unpaid as to principal or interest;
297-8 provided, however, that out of revenues that may be received in
297-9 excess of those required for the purposes listed in Subsection (a)
297-10 the board may pay the cost of improvements and replacements not
297-11 covered by Subsection (a)(1) and may establish a reasonable
297-12 depreciation and emergency fund.
297-13 (c) The fees and charges of the authority may not be in
297-14 excess of what may be reasonably necessary to fulfill the
297-15 obligations imposed on the authority by this chapter.
297-16 Sec. 262.009. CONTRACTS, LEASES, AND AGREEMENTS. (a) The
297-17 authority, in addition to the powers otherwise provided by this
297-18 chapter, may enter into all contracts, leases, and agreements
297-19 necessary or convenient to carry out any of the powers granted by
297-20 this chapter. The contracts, leases, and agreements may be entered
297-21 into with any person, real or artificial, any corporation,
297-22 municipal, public, or private, or any government or governmental
297-23 agency, including the United States government and the state.
297-24 (b) The authority may convey or cause to be conveyed any of
297-25 its properties, rights, lands, tenements, easements, improvements,
297-26 reservoirs, dams, canals, plants, laterals, works, and facilities
298-1 to the United States government or any agency of the United States
298-2 and may enter into a lease with the United States government or any
298-3 agency of the United States relative to such properties and
298-4 obligate itself to pay rent for such properties out of the income
298-5 and revenues of the properties, with or without the privilege of
298-6 purchase.
298-7 (c) Nothing in this section shall be construed to authorize
298-8 the assumption by the authority of any obligation requiring payment
298-9 out of taxes.
298-10 (d) Contracts, leases, and agreements authorized by this
298-11 section shall be approved by resolution of the board and shall be
298-12 executed by the president and attested by the secretary.
298-13 Sec. 262.010. RIGHT TO SUE. The authority may sue and be
298-14 sued.
298-15 Sec. 262.011. APPROVAL OF PLANS AND SPECIFICATIONS. Before
298-16 the authority may establish a diversion point or construct a canal,
298-17 a pumping plant, or other works provided for in this chapter, the
298-18 authority shall present to the commission plans and specifications
298-19 of the canal, plant, or other works and obtain the approval of the
298-20 commission.
298-21 Sec. 262.012. ACQUISITION OF LAND FOR PUBLIC PARKS.
298-22 (a) The authority may acquire and own lands within the authority
298-23 by purchase for the purpose of operating and maintaining public
298-24 parks for public recreation and may construct and operate
298-25 improvements and facilities on such lands to accomplish that
298-26 purpose.
299-1 (b) Funds derived from taxation may not be expended in
299-2 purchasing lands or constructing and maintaining improvements and
299-3 facilities under this section.
299-4 Sec. 262.013. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
299-5 authority may sponsor and participate in an economic development
299-6 program within the areas served by the authority to strengthen the
299-7 economic base and further the economic development of the state.
299-8 The program may not be outside the areas served by the authority
299-9 unless the authority has entered into an interlocal agreement with
299-10 an entity under Subsection (c).
299-11 (b) Each program must be established by formal action of the
299-12 board. The board shall:
299-13 (1) establish the goals of the program;
299-14 (2) impose requirements on persons participating in
299-15 and receiving the benefits of the program; and
299-16 (3) provide restrictions, procedures, and budget
299-17 limits that the board determines are necessary to ensure that the
299-18 governmental purposes of this section and the program are achieved.
299-19 (c) A program under this section may involve grants or loans
299-20 of money, services, or equipment to a person engaged in an economic
299-21 development activity, including a public fire-fighting
299-22 organization, governmental body, nonprofit corporation, local or
299-23 regional development council, or other nonprofit or noncommercial
299-24 organization. The authority may provide assistance to a for-profit
299-25 entity if the assistance is necessary or appropriate to carry out
299-26 an economic development program consistent with the purposes of
300-1 this section.
300-2 (d) The authority may employ staff and expend its resources
300-3 to further an economic development program under this section,
300-4 except that the authority may not use money received from an ad
300-5 valorem tax or a general appropriation to further a program. The
300-6 authority may apply for and receive money, grants, or other
300-7 assistance from any source to carry out an economic development
300-8 program under this section.
300-9 (e) The authority and any other public or private person may
300-10 enter into an agreement with respect to an economic development
300-11 program.
300-12 (f) If the authority provides scholarships, grants, loans,
300-13 or financial assistance to a public fire-fighting organization, the
300-14 authority shall adopt guidelines to determine:
300-15 (1) eligibility for the assistance;
300-16 (2) the amount of loans, grants, or other assistance
300-17 the authority may make available to a fire-fighting organization;
300-18 and
300-19 (3) the type of equipment, education, or training for
300-20 which the assistance may be used.
300-21 (g) A determination by the board that a program is intended
300-22 and expected to carry out the program's stated purposes is
300-23 conclusive with respect to whether the purposes of this section are
300-24 satisfied.
300-25 (h) In this section, an economic development program
300-26 includes a community assistance program, privatization program, or
301-1 any other program designed to:
301-2 (1) encourage economic diversification;
301-3 (2) maintain or expand employment;
301-4 (3) train persons;
301-5 (4) eliminate conditions detrimental to the public
301-6 health, safety, or welfare;
301-7 (5) improve the quality or quantity of services
301-8 essential for the development of viable communities and economic
301-9 growth, including services related to:
301-10 (A) education;
301-11 (B) transportation;
301-12 (C) public safety;
301-13 (D) recreation;
301-14 (E) health care;
301-15 (F) water and wastewater treatment; or
301-16 (G) rural water and sewer development; or
301-17 (6) contribute to the health and development of a
301-18 community to improve the attractiveness of the community to public
301-19 and private enterprises.
301-20 Sec. 262.014. COMMISSION SUPERVISION. In the exercise of
301-21 the powers and duties provided by this chapter, the authority is
301-22 subject to the continuing rights of supervision of the commission.
301-23 The commission may approve or refuse to approve the adequacy of any
301-24 plan or plans for flood control or conservation improvement
301-25 purposes devised by the authority for the achievement of the plans
301-26 and purposes intended in the creation of the authority which
302-1 contemplate improvements supervised by the commission under the
302-2 provisions of general law.
302-3 Sec. 262.015. ADDITIONAL POWERS. (a) The authority has and
302-4 may exercise the functions, powers, authority, rights, and duties
302-5 necessary to accomplish the purposes for which the authority is
302-6 created, including investigating and planning, acquiring,
302-7 constructing, maintaining, and operating all necessary properties,
302-8 lands, rights, tenements, easements, improvements, reservoirs,
302-9 dams, canals, laterals, plants, works, and facilities, including
302-10 the acquisition within or outside the authority of lands,
302-11 rights-of-way, water rights, and all other properties, tenements,
302-12 and easements and other rights incident to, helpful to, or in aid
302-13 of carrying out the purposes of the authority as provided by this
302-14 chapter.
302-15 (b) This chapter shall be liberally construed to effectuate
302-16 the purposes provided by this chapter.
302-17 Sec. 262.016. LOANS. The authority may borrow money for any
302-18 corporate purpose from any department or agency of the United
302-19 States or from any other source, and in evidence of any such debt
302-20 may issue notes, warrants, bonds, certificates of indebtedness, or
302-21 other forms of obligations of the authority, payable solely out of
302-22 the revenues to be derived from the improvements and facilities and
302-23 the operations and services of the improvements and facilities.
302-24 Sec. 262.017. EXISTING WATER RIGHTS. Nothing in this
302-25 chapter affects any rights existing at the time of the formation of
302-26 the authority or existing priorities in the rights to water from
303-1 the source of supply, and neither the formation of the authority or
303-2 a contract for the purchase of water with the authority may ever be
303-3 held to be an abandonment or waiver of those rights or priorities
303-4 or an abandonment of the original point of diversion from the
303-5 source of supply, and all such rights existing at the time of
303-6 formation of the authority shall be preserved.
303-7 Sec. 262.018. EMINENT DOMAIN. (a) The right of eminent
303-8 domain is expressly conferred on the authority to enable it to
303-9 acquire the fee simple title to, or easement or right-of-way over
303-10 and through, all lands, water, or lands under water, private or
303-11 public, within or outside the Neches River basin, necessary or
303-12 convenient to carry out any of the purposes and powers conferred on
303-13 the authority by this chapter.
303-14 (b) Condemnation proceedings shall be under the direction of
303-15 the board and in the name of the authority. The assessment of
303-16 damages and all procedures with regard to condemnation, appeal, and
303-17 payment shall be in conformity with Chapter 21, Property Code.
303-18 CHAPTER 263. MACKENZIE MUNICIPAL WATER AUTHORITY
303-19 Sec. 263.001. CREATION. (a) A conservation and reclamation
303-20 district to be known as the "Mackenzie Municipal Water Authority"
303-21 is created. The authority is a governmental agency and a body
303-22 politic and corporate.
303-23 (b) The authority is created under and is essential to
303-24 accomplish the purposes of Section 59, Article XVI, Texas
303-25 Constitution.
303-26 Sec. 263.002. DEFINITIONS. In this chapter:
304-1 (1) "Authority" means the Mackenzie Municipal Water
304-2 Authority.
304-3 (2) "Board" means the board of directors of the
304-4 authority.
304-5 (3) "Director" means a member of the board.
304-6 Sec. 263.003. TERRITORY. The authority contains all of the
304-7 territory within the boundaries of the city of Tulia in Swisher
304-8 County, the city of Silverton in Briscoe County, and the cities of
304-9 Lockney and Floydada in Floyd County, as the boundaries of each
304-10 city existed on February 1, 1965. An invalidity in the fixing of
304-11 the boundaries of those cities does not affect the boundaries of
304-12 the territory contained in the authority. It is found and
304-13 determined that all of the territory and taxable property contained
304-14 within the boundaries of those cities will benefit from the works
304-15 and improvements of the authority.
304-16 Sec. 263.004. BOARD OF DIRECTORS. (a) All powers of the
304-17 authority shall be exercised by a board of directors. The
304-18 directors serve staggered two-year terms. The governing body of
304-19 each city contained in the authority shall appoint two directors,
304-20 with the term of one director expiring on April 30 of each
304-21 even-numbered year and the term of one director expiring on April
304-22 30 of each odd-numbered year.
304-23 (b) In April of each year the governing body of each city
304-24 contained in the authority shall appoint a director to succeed the
304-25 director from that city whose term is about to expire. A vacancy
304-26 shall be filled for the unexpired term by the governing body of the
305-1 appropriate city.
305-2 (c) Each director serves for a term of office as provided by
305-3 this section and until a successor is appointed and has qualified.
305-4 (d) A director must reside in and own taxable property in
305-5 the city from which the director is appointed. A member of a
305-6 governing body or an employee of a city is not eligible to serve as
305-7 a director.
305-8 (e) Each director shall subscribe the constitutional oath of
305-9 office and shall give bond for the faithful performance of the
305-10 person's duties as director in the amount of $5,000. The cost of
305-11 the bond shall be paid by the authority.
305-12 (f) A majority of the members of the board constitutes a
305-13 quorum.
305-14 (g) If a director moves from the city from which the
305-15 director is appointed or otherwise ceases to be a director, the
305-16 governing body of the city shall appoint a successor for the
305-17 unexpired term.
305-18 Sec. 263.005. DIRECTOR FEES. (a) Each director may receive
305-19 a fee determined by the board, not to exceed $20, for attending
305-20 each meeting of the board, provided that no more than $40 shall be
305-21 paid to any director for meetings held in any one calendar month.
305-22 (b) Each director is entitled to receive a fee not to exceed
305-23 $20 per day for each day devoted to the business of the authority
305-24 and to reimbursement for actual expenses incurred in attending to
305-25 authority business provided that the service and expense have
305-26 received prior approval by the board.
306-1 Sec. 263.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
306-2 shall elect from among its members a president and a vice president
306-3 of the authority and other officers as the board determines
306-4 necessary.
306-5 (b) The president is the chief executive officer of the
306-6 authority and the presiding officer of the board and has the same
306-7 right to vote as any other director.
306-8 (c) The vice president shall perform all duties and exercise
306-9 all powers conferred by this chapter on the president when the
306-10 president is absent or fails or declines to act, except the
306-11 president's right to vote.
306-12 (d) The board shall appoint a secretary and a treasurer, who
306-13 may or may not be members of the board, and it may combine those
306-14 offices. The treasurer shall give bond in an amount determined by
306-15 the board. The bond shall be conditioned on the treasurer
306-16 faithfully accounting for all money that comes into the treasurer's
306-17 custody as treasurer of the authority.
306-18 (e) The board shall appoint necessary engineers, attorneys,
306-19 and other employees and employ a general manager. The power to
306-20 employ and discharge employees may be conferred on the general
306-21 manager.
306-22 (f) The board shall adopt a seal for the authority.
306-23 Sec. 263.007. GENERAL PROCEDURE FOR ANNEXATION OF TERRITORY.
306-24 (a) Other territory, whether incorporated or unincorporated, may
306-25 be annexed to the authority as provided by this section.
306-26 (b) A petition praying for annexation must:
307-1 (1) be signed by 50 or a majority, whichever number is
307-2 less, of the qualified voters residing in the territory to be
307-3 annexed who own taxable property in the territory;
307-4 (2) be filed with the board; and
307-5 (3) describe the territory to be annexed by metes and
307-6 bounds, or otherwise, unless the territory is the same as that
307-7 contained in a city or town, in which event it will be sufficient
307-8 to state that the territory to be annexed is that contained within
307-9 the boundaries of the city or town.
307-10 (c) If the board finds that the petition complies with, and
307-11 is signed by the number of qualified persons required by,
307-12 Subsection (b), that the annexation would be to the best interest
307-13 of the territory to be annexed and the authority, and that the
307-14 authority will be able to supply water or cause water to be
307-15 supplied to the territory or render sewer service or cause sewer
307-16 service to be rendered to the territory, the board shall adopt a
307-17 resolution stating the conditions, if any, under which the
307-18 territory may be annexed to the authority and shall set a time and
307-19 place for a hearing to be held by the board on the question of
307-20 whether the territory to be annexed will benefit from the
307-21 improvements, works, and facilities then owned or operated or
307-22 contemplated to be owned or operated by the authority or by the
307-23 other functions of the authority. Railroad right-of-way that is
307-24 not situated within the defined limits of an incorporated city or
307-25 town will not benefit from the improvements, works, and facilities
307-26 that the authority is authorized to construct. Railroad
308-1 right-of-way may not be annexed to the authority unless the
308-2 right-of-way is contained within the limit of an incorporated city
308-3 or town that has been annexed to the authority.
308-4 (d) Notice of the adoption of the resolution stating the
308-5 time and place of the hearing shall be published one time in a
308-6 newspaper designated by the board at least 10 days before the date
308-7 of the hearing. The notice must describe the territory to be
308-8 annexed in the same manner in which it is required or permitted by
308-9 this chapter to be described in the petition.
308-10 (e) All interested persons may appear at the hearing and
308-11 offer evidence for or against the proposed annexation. The hearing
308-12 may proceed in the order and under the rules as may be prescribed
308-13 by the board and may be recessed from time to time. If, at the
308-14 conclusion of the hearing, the board finds that lands in the
308-15 territory to be annexed will benefit from present or contemplated
308-16 improvements, works, or facilities of the authority, the board
308-17 shall adopt a resolution making a finding of such benefit, calling
308-18 an election in the territory to be annexed stating the date and the
308-19 place or places for holding the election and the proposition to be
308-20 voted on, and appointing a presiding judge for each voting place,
308-21 who shall appoint the necessary assistant judges and clerks to
308-22 assist in holding the election.
308-23 (f) Notice of the election shall be given by publishing a
308-24 substantial copy of the resolution calling the election one time in
308-25 a newspaper of general circulation in the territory to be annexed
308-26 to the authority at least 10 days before the date set for the
309-1 election.
309-2 (g) Only constitutionally qualified electors who reside in
309-3 the territory to be annexed shall be qualified to vote in the
309-4 election. Returns of the result of the election shall be made to
309-5 the board.
309-6 (h) The board shall canvass the returns of the election and
309-7 adopt an order declaring the results. If the order shows that a
309-8 majority of the votes cast are in favor of annexation, the board
309-9 shall by resolution annex the territory to the authority, and the
309-10 annexation shall be incontestable except in the manner and within
309-11 the time for contesting elections under the Election Code.
309-12 (i) In calling an election on the proposition of the
309-13 annexation of territory, the board may include as a part of the
309-14 same proposition, or as a separate proposition, the question of the
309-15 assumption of that territory's part of the tax-supported bonds of
309-16 the authority then outstanding and those voted but not yet sold and
309-17 the levy of an ad valorem tax on taxable property in the territory
309-18 along with the tax in the rest of the authority for the payment of
309-19 the bonds. The voting on the proposition or propositions shall be
309-20 restricted to constitutionally qualified electors. The territory
309-21 may be annexed only if both propositions receive a majority vote.
309-22 Sec. 263.008. ANNEXATION OF CERTAIN MUNICIPAL TERRITORY.
309-23 (a) Territory annexed to a city that is initially contained in the
309-24 authority or that is added to the authority may be annexed to the
309-25 authority as provided by this section.
309-26 (b) At any time after final passage of an ordinance or
310-1 resolution annexing territory to a city, the board may issue a
310-2 notice of a hearing on the question of annexing the territory or
310-3 any part of the territory. The notice is sufficient if it states
310-4 the date and place of the hearing and:
310-5 (1) describes the area proposed to be annexed; or
310-6 (2) makes reference to the annexation ordinance or
310-7 resolution of the city.
310-8 (c) The notice must be published one time in a newspaper
310-9 having general circulation in the city that made the annexation.
310-10 The publication must be at least 10 days before the date set for
310-11 the hearing.
310-12 (d) If, at the hearing, the board finds that the territory
310-13 proposed to be annexed will benefit from present or contemplated
310-14 improvements, works, or facilities of the authority, the board
310-15 shall adopt a resolution annexing the territory to the authority.
310-16 Sec. 263.009. ASSUMPTION OF BONDS. After territory is added
310-17 to the authority, the board may call an election over the entire
310-18 authority to determine whether the entire authority as enlarged
310-19 shall assume the tax-supported bonds then outstanding and those
310-20 voted but not yet sold and whether an ad valorem tax shall be
310-21 levied on all taxable property within the authority as enlarged for
310-22 the payment of the bonds, unless the proposition had previously
310-23 been voted at an election held within the annexed territory and
310-24 became lawfully binding on the annexed territory. The election
310-25 shall be called and held and notice of the election given in the
310-26 same manner as elections for the issuance of bonds as provided in
311-1 this chapter.
311-2 Sec. 263.010. APPOINTMENT OF DIRECTORS IN ANNEXED
311-3 TERRITORIES. If the territory of a city is annexed to the
311-4 authority, the governing body of the city shall appoint two
311-5 directors. The term of one appointee shall expire on the following
311-6 April 30 and the term of the other appointee shall expire on April
311-7 30 a year later. Thereafter the directors shall be appointed as
311-8 provided in Section 263.004.
311-9 Sec. 263.011. WATER APPROPRIATION PERMITS. The authority
311-10 may obtain appropriation permits from the commission through
311-11 appropriate hearings as provided by Chapter 11.
311-12 Sec. 263.012. DAMS AND OTHER FACILITIES FOR DIVERTING,
311-13 IMPOUNDING, STORING, TREATING, AND TRANSPORTING WATER. The
311-14 authority may acquire or construct within or outside the boundaries
311-15 of the authority dams and all works, plants, and other facilities,
311-16 including underground water storage facilities, necessary for the
311-17 purpose of diverting, impounding, storing, treating, and
311-18 transporting water to cities and others for municipal, domestic,
311-19 industrial, and mining purposes. A dam or other facility for
311-20 impounding water may not be constructed unless the plan for the
311-21 facility is approved by the commission.
311-22 Sec. 263.013. ACQUISITION AND SALE OF PROPERTY; CONSTRUCTION
311-23 OF FACILITIES; WATER RIGHTS. (a) The authority may acquire land
311-24 within and outside the boundaries of the authority and may
311-25 construct, lease, or otherwise acquire all works, plants, and other
311-26 facilities necessary for the purpose of diverting, further
312-1 impounding, or storing water, treating the water, and transporting
312-2 it to cities and others for municipal, domestic, industrial, and
312-3 mining purposes.
312-4 (b) The authority may sell water within and outside the
312-5 boundaries of the authority and may acquire by purchase or
312-6 contract, in any county in which a part of the authority is
312-7 located, lands in fee simple title or water rights without surface
312-8 title and may develop and beneficially use such groundwater;
312-9 provided, however, that the authority shall be limited to a
312-10 quantity of groundwater as may be reasonably necessary, and the
312-11 withdrawal may not exceed two acre-feet of water per year for each
312-12 acre of surface area purchased or water rights otherwise acquired
312-13 by the authority overlying the groundwater reservoir.
312-14 (c) Subject to the terms of any deed of trust issued by the
312-15 authority, the authority may sell, trade, or otherwise dispose of
312-16 any real or personal property determined by the board not to be
312-17 needed for authority purposes.
312-18 (d) As a necessary aid to the conservation, control,
312-19 preservation, and distribution of water for beneficial use, the
312-20 authority may construct, own, and operate sewage gathering,
312-21 transmission, and disposal facilities, may charge for such service,
312-22 and may make contracts in reference to such facilities and services
312-23 with municipalities and others.
312-24 Sec. 263.014. EMINENT DOMAIN. (a) For the purpose of
312-25 carrying out a power or authority conferred by this chapter, except
312-26 the acquisition of groundwater rights, the authority may acquire,
313-1 within or outside the boundaries of the authority, the fee simple
313-2 title to land and other property and easements, including land
313-3 needed for a reservoir and dam and flood easements above the
313-4 probable high-water line around the reservoir, by condemnation in
313-5 the manner and with the same power as conferred on counties of the
313-6 state by Chapter 21, Property Code. The authority is a municipal
313-7 corporation within the meaning of Section 21.021(c), Property
313-8 Code.
313-9 (b) The authority may not condemn any property that is owned
313-10 by any persons, firms, private corporations, or receivers, or their
313-11 trustees, who have the power of eminent domain, except that the
313-12 authority may condemn an easement. The amount and character of
313-13 interest in land, other property, and easements to be acquired
313-14 through condemnation shall be determined by the board. The
313-15 authority has the powers provided by Section 49.221 with reference
313-16 to making surveys and attending to other business of the authority.
313-17 (c) If the authority, in the exercise of its power of
313-18 eminent domain or police power or any other power, requires the
313-19 relocation, raising, lowering, rerouting, change in grade, or
313-20 alteration in construction of any road or highway; railroad;
313-21 electric transmission, telegraph, or telephone lines, conduits,
313-22 poles, properties, or facilities; or pipelines, all such
313-23 relocation, raising, lowering, rerouting, change in grade, or
313-24 alteration of construction shall be accomplished at the sole
313-25 expense of the authority. In this section, "sole expense" means
313-26 the actual cost of such lowering, rerouting, change in grade, or
314-1 alteration of construction in providing comparable replacement
314-2 without enhancement of the facilities, after deducting the net
314-3 salvage value derived from the old facility.
314-4 Sec. 263.015. CONTRACTS; BIDDING. A construction contract
314-5 requiring an expenditure of more than $15,000 may only be made
314-6 after publication of a notice to bidders once each week for two
314-7 weeks before the contract is awarded. The notice is sufficient if
314-8 it states the time and location the bids will be opened, states the
314-9 general nature of the work to be done or the material, equipment,
314-10 or supplies to be purchased, and states where and the terms on
314-11 which copies of the plans and specifications may be obtained. The
314-12 publication must be in a newspaper published in each county in
314-13 which a portion of the authority is located, and such newspapers
314-14 shall be designated or approved by the board.
314-15 Sec. 263.016. ISSUANCE OF BONDS. (a) For the purpose of
314-16 carrying out any power or authority conferred by this chapter, the
314-17 authority may issue negotiable bonds to be payable from such
314-18 revenues or taxes or both revenues and taxes of the authority as
314-19 are pledged by resolution of the board.
314-20 (b) Bonds must be authorized by resolution of the board.
314-21 The bonds must be issued in the name of the authority, signed by
314-22 the president or vice president, and attested by the secretary and
314-23 must bear the seal of the authority. The signatures of the
314-24 president or vice president, of the secretary, or of both may be
314-25 printed or lithographed on the bonds if authorized by the board,
314-26 and the seal of the authority may be impressed on the bonds or may
315-1 be printed or lithographed on the bonds.
315-2 (c) Bonds must mature serially or otherwise in not to exceed
315-3 40 years from their date and may be sold at a price and under terms
315-4 determined by the board to be the most advantageous reasonably
315-5 obtainable, provided that the interest cost to the authority,
315-6 including the discount, if any, does not exceed six percent per
315-7 year. Within the discretion of the board, bonds may be made
315-8 callable prior to maturity at such times and prices as may be
315-9 prescribed in the resolution authorizing the bonds and may be made
315-10 registrable as to principal or as to both principal and interest.
315-11 (d) Bonds may be issued in more than one series and from
315-12 time to time as required for carrying out the purposes of this
315-13 chapter.
315-14 (e) Bonds may be secured by a pledge of all or part of the
315-15 net revenues of the authority, of the net revenues of one or more
315-16 contracts made before or after the bonds are issued, or of other
315-17 revenues or income specified by resolution of the board or in the
315-18 trust indenture. A pledge may reserve the right, under conditions
315-19 in the pledge specified, to issue additional bonds that will be on
315-20 a parity with or subordinate to the bonds being issued.
315-21 (f) The authority may issue bonds payable from ad valorem
315-22 taxes to be levied on all taxable property in the authority or may
315-23 issue bonds secured by and payable from both those taxes and the
315-24 revenues of the authority. If bonds are issued payable wholly or
315-25 partially from ad valorem taxes, the board shall levy a tax
315-26 sufficient to pay the bonds and the interest on the bonds as the
316-1 bonds and interest become due. The rate of the tax for any year
316-2 may be set after giving consideration to the money received from
316-3 the pledged revenues available for payment of principal and
316-4 interest to the extent and in the manner permitted by the
316-5 resolution authorizing the issuance of the bonds.
316-6 (g) If bonds payable wholly from revenues are issued, the
316-7 board shall set, and from time to time revise, rates of
316-8 compensation for water sold and services rendered by the authority
316-9 sufficient to pay the expense of operating and maintaining the
316-10 facilities of the authority, to pay the bonds as they mature and
316-11 the interest as it accrues, and to maintain the reserve and other
316-12 funds as provided in the resolution authorizing the bonds. If
316-13 bonds payable partially from revenues are issued, the board shall
316-14 set, and from time to time revise, rates of compensation for water
316-15 sold and services rendered by the authority sufficient to assure
316-16 compliance with the resolution authorizing the bonds or the trust
316-17 indenture securing the bonds.
316-18 (h) From the proceeds of the sale of the bonds, the
316-19 authority may set aside an amount for the payment of interest
316-20 expected to accrue during construction and for a reserve interest
316-21 and sinking fund and such other funds as may be provided in the
316-22 resolution authorizing the bonds or in the trust indenture.
316-23 Proceeds from the sale of the bonds may also be used for the
316-24 payment of all expenses necessarily incurred in accomplishing the
316-25 purpose for which this authority is created, including expenses of
316-26 issuing and selling the bonds. The proceeds from the sale of the
317-1 bonds and other funds may be invested in such securities as are
317-2 specified in the bond resolution or trust indenture.
317-3 (i) In the event of a default or a threatened default in the
317-4 payment of principal of or interest on bonds payable wholly or
317-5 partially from revenues, any court of competent jurisdiction may,
317-6 on petition of the holders of outstanding bonds, appoint a receiver
317-7 with authority to collect and receive all income of the authority
317-8 except taxes, employ and discharge agents and employees of the
317-9 authority, take charge of the authority's funds on hand (except
317-10 funds received from taxes, unless commingled), and manage the
317-11 proprietary affairs of the authority without consent or hindrance
317-12 by the board. The receiver may also be authorized to sell or make
317-13 contracts for the sale of water or renew the contracts with the
317-14 approval of the court appointing the receiver. The court may vest
317-15 the receiver with other powers and duties the court finds necessary
317-16 for the protection of the holders of the bonds. The resolution
317-17 authorizing the issuance of the bonds or the trust indenture
317-18 securing them may limit or qualify the rights of the holders of
317-19 less than all of the outstanding bonds payable from the same source
317-20 to institute or prosecute litigation affecting the authority's
317-21 property or income.
317-22 Sec. 263.017. REFUNDING BONDS. (a) The authority may issue
317-23 refunding bonds for the purpose of refunding outstanding bonds
317-24 authorized by this chapter and interest on the bonds. Refunding
317-25 bonds may be issued to refund more than one series of outstanding
317-26 bonds and may combine the pledges for the outstanding bonds for the
318-1 security of the refunding bonds, and the refunding bonds may be
318-2 secured by other or additional revenues and mortgage liens.
318-3 (b) The provisions of this chapter regarding the issuance of
318-4 other bonds by the authority, their security, their approval by the
318-5 attorney general, and the remedies of the holders shall be
318-6 applicable to refunding bonds. Refunding bonds shall be registered
318-7 by the comptroller on surrender and cancellation of the bonds to be
318-8 refunded, but in lieu of that procedure, the resolution authorizing
318-9 the issuance of the refunding bonds may provide that the refunding
318-10 bonds shall be sold and the proceeds of the sale deposited in the
318-11 bank where the original bonds are payable, in which case the
318-12 refunding bonds may be issued in an amount sufficient to pay the
318-13 principal of and the interest on the original bonds to their option
318-14 date or maturity date, and the comptroller shall register the
318-15 refunding bonds without concurrent surrender and cancellation of
318-16 the original bonds. Refunding bonds may be issued without an
318-17 election.
318-18 Sec. 263.018. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE
318-19 LIEN. (a) Bonds, including refunding bonds, authorized by this
318-20 chapter that are not payable wholly from ad valorem taxes may be
318-21 additionally secured by a trust indenture under which the trustee
318-22 may be a bank with trust powers located either within or outside
318-23 the state. The bonds may, within the discretion of the board, be
318-24 additionally secured by a deed of trust or mortgage lien on
318-25 physical properties of the authority and all franchises, easements,
318-26 water rights and appropriation permits, leases and contracts, and
319-1 all rights appurtenant to the properties, vesting in the trustee
319-2 power to sell the properties for the payment of indebtedness, power
319-3 to operate the properties, and all other powers and authority for
319-4 the further security of the bonds.
319-5 (b) The trust indenture, regardless of the existence of a
319-6 deed of trust or mortgage lien on the properties, may:
319-7 (1) contain provisions prescribed by the board for the
319-8 security of the bonds and the preservation of the trust estate;
319-9 (2) make provision for amendment or modification of
319-10 the trust indenture and the issuance of bonds to replace lost or
319-11 mutilated bonds;
319-12 (3) condition the right to expend authority money or
319-13 sell authority property on approval of a registered professional
319-14 engineer selected as provided in the trust indenture; and
319-15 (4) make provision for the investment of funds of the
319-16 authority.
319-17 (c) A purchaser under a sale under a deed of trust lien,
319-18 where one is given, shall be the absolute owner of the properties,
319-19 facilities, and rights purchased and shall have the right to
319-20 maintain and operate the properties, facilities, and rights.
319-21 Sec. 263.019. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION.
319-22 (a) Bonds payable wholly or partially from ad valorem taxes,
319-23 except refunding bonds, may not be issued unless authorized by an
319-24 election at which only the constitutionally qualified electors who
319-25 reside in the authority are allowed to vote and a majority of the
319-26 votes cast in each city contained in the authority are in favor of
320-1 the issuance of the bonds. If a majority of the votes cast in any
320-2 city contained in the authority are against the issuance of the
320-3 bonds, the board may, in its discretion, adopt a resolution
320-4 detaching the territory of that city from the authority; provided,
320-5 however, that after bonds payable from taxes have been issued by
320-6 the authority and while any such bonds are outstanding, no
320-7 territory shall be detached from the authority. Bonds not payable
320-8 wholly or partially from ad valorem taxes may be issued without an
320-9 election.
320-10 (b) An election for the authorization of bonds may be called
320-11 by the board without a petition. The resolution calling the
320-12 election shall specify the time and locations of holding the
320-13 election, the purpose for which the bonds are to be issued, the
320-14 maximum amount of the bonds, the maximum maturity of the bonds, the
320-15 form of the ballot, and the presiding judge for each voting place.
320-16 The presiding judge serving at each voting place shall appoint one
320-17 assistant judge and at least two clerks to assist in holding the
320-18 election. Notice of the election shall be given by publishing a
320-19 substantial copy of the notice in a newspaper published in each
320-20 city contained in the authority for two consecutive weeks. The
320-21 first publication must be at least 21 days before the date of the
320-22 election. In a city in which no newspaper is published, notice
320-23 shall be given by posting a copy of the resolution in three public
320-24 places in the city at least 21 days before the date of the
320-25 election.
320-26 (c) The returns of the election shall be made to and
321-1 canvassed by the board.
321-2 (d) Elections held under this section shall be governed by
321-3 the Election Code except as otherwise provided by this chapter.
321-4 Sec. 263.020. BOND APPROVAL AND REGISTRATION. After bonds,
321-5 including refunding bonds, are authorized by the authority, the
321-6 bonds and the record relating to their issuance shall be submitted
321-7 to the attorney general for examination as to the validity of the
321-8 bonds. If the bonds recite that they are secured by a pledge of
321-9 the proceeds of a contract previously made between the authority
321-10 and a city or other governmental agency, authority, or district, a
321-11 copy of the contract and the proceedings of the city or other
321-12 governmental agency, authority, or district authorizing the
321-13 contract shall also be submitted to the attorney general. If the
321-14 attorney general finds that the bonds have been authorized and that
321-15 the contract has been made in accordance with the constitution and
321-16 laws of the state, the attorney general shall approve the bonds and
321-17 the contract, and the bonds shall then be registered by the
321-18 comptroller. After their approval and registration, the bonds and
321-19 the contract, if any, are valid and binding and are incontestable
321-20 for any cause.
321-21 Sec. 263.021. CONTRACTS WITH CITIES AND OTHERS. (a) The
321-22 authority may enter into contracts with cities and others for
321-23 supplying water to them. The authority may also contract with a
321-24 city for the rental or leasing of, or for the operation of, the
321-25 water production, water supply, and water filtration or
321-26 purification and water supply facilities of the city for such
322-1 consideration as the authority and the city may agree. The
322-2 contract may be on the terms and for the time as the parties may
322-3 agree, and the contract may provide that it shall continue in
322-4 effect until bonds specified in the contract and refunding bonds
322-5 issued in lieu of those bonds are paid.
322-6 (b) If an election is held in any city then contained in the
322-7 authority on the question of whether the governing body of the city
322-8 shall be authorized to make a water supply contract with the
322-9 authority and the result of the election is that the governing body
322-10 shall not be authorized to make such a contract with the authority,
322-11 the board may, in its discretion, adopt a resolution detaching that
322-12 city from the authority; provided, however, that after bonds
322-13 payable from taxes have been issued by the authority and while any
322-14 such bonds are outstanding, no territory shall be detached from the
322-15 authority.
322-16 (c) In addition to selling its bonds to the Texas Water
322-17 Development Board and securing loans from that board, the authority
322-18 may enter into a contract or contracts with the board under which
322-19 the board or the state will own a portion of the water storage
322-20 facilities, as provided in Chapter 16, in a reservoir or reservoirs
322-21 to be constructed by the authority. The authority may include in
322-22 the contract or contracts the obligation to purchase such storage
322-23 facilities from the state and a provision to accumulate a fund for
322-24 that purpose by setting and maintaining adequate rates and charges
322-25 to be paid by cities previously and subsequently contracting to buy
322-26 water from the authority.
323-1 Sec. 263.022. AUTHORITY DEPOSITORY. (a) The board shall
323-2 designate one or more banks within the authority to serve as
323-3 depository for the funds of the authority. All funds of the
323-4 authority shall be deposited in the depository bank or banks,
323-5 except that bond proceeds and funds pledged to pay bonds may, to
323-6 the extent provided in the indenture, be deposited with the trustee
323-7 bank named in the trust indenture and except that funds shall be
323-8 remitted to the bank of payment for the payment of principal of and
323-9 interest on bonds. To the extent that funds in the depository
323-10 banks and the trustee bank are not insured by the Federal Deposit
323-11 Insurance Corporation, the funds shall be secured in the manner
323-12 provided by law for the security of county funds.
323-13 (b) Before designating a depository bank or banks, the board
323-14 shall issue a notice stating the time and the location the board
323-15 will meet to designate the depository or depositories and inviting
323-16 the banks in the authority to submit applications to be designated
323-17 depositories. The notice must be mailed to each bank in the
323-18 authority.
323-19 (c) At the time stated in the notice, the board shall
323-20 consider the applications and the management and condition of the
323-21 banks filing them and shall designate as the depository or
323-22 depositories the bank or banks that offer the most favorable terms
323-23 and conditions for the handling of the funds of the authority and
323-24 which the board finds have proper management and are in condition
323-25 to warrant the handling of authority funds. Membership on the
323-26 board of an officer or director of a bank shall not disqualify that
324-1 bank from being designated as a depository.
324-2 (d) If no applications are received by the time stated in
324-3 the notice, the board shall designate a bank or banks within or
324-4 outside the authority on the terms and conditions the board
324-5 determines are advantageous to the authority.
324-6 (e) The term of service for depositories shall be prescribed
324-7 by the board.
324-8 Sec. 263.023. WATER APPROPRIATION PERMITS; ACQUISITION OF
324-9 STORAGE CAPACITY AND OF WATER. The authority may acquire water
324-10 appropriation permits from owners of permits. The authority may
324-11 lease or acquire rights in and to storage and storage capacity in
324-12 any reservoir constructed or to be constructed by any person, firm,
324-13 corporation, or public agency or from the United States government
324-14 or any of its agencies.
324-15 Sec. 263.024. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
324-16 DEPOSITS. (a) Bonds of the authority are legal and authorized
324-17 investments for banks, savings banks, trust companies, building and
324-18 loan associations, savings and loan associations, insurance
324-19 companies, fiduciaries, trustees, and guardians and for the sinking
324-20 fund of cities, towns, villages, counties, school districts, or
324-21 other political corporations or subdivisions of the state.
324-22 (b) The bonds are eligible to secure the deposit of all
324-23 public funds of the state and all public funds of cities, towns,
324-24 villages, counties, school districts, or other political
324-25 corporations or subdivisions of the state. The bonds are lawful
324-26 and sufficient security for the deposits to the extent of their
325-1 value when accompanied by all unmatured coupons appurtenant to the
325-2 bonds.
325-3 Sec. 263.025. BONDS EXEMPT FROM TAXATION. The
325-4 accomplishment of the purposes stated in this chapter is for the
325-5 benefit of the people of the state and for the improvement of their
325-6 properties and industries, and the authority, in carrying out the
325-7 purposes of this chapter, will be performing an essential public
325-8 function under Section 59, Article XVI, Texas Constitution. The
325-9 authority may not be required to pay any tax or assessment on the
325-10 project or any part of the project, and the bonds issued under this
325-11 chapter and the transfer of and income from the bonds, including
325-12 the profits made on the sale of the bonds, shall at all times be
325-13 free from taxation within the state.
325-14 Sec. 263.026. TAX ROLLS. (a) The tax rolls of the cities
325-15 located within the authority and within annexed territory
325-16 constitute the tax rolls of the authority until assessment and tax
325-17 rolls are made by the authority.
325-18 (b) Before the sale and delivery of authority bonds that are
325-19 payable wholly or partially from ad valorem taxes, the board shall
325-20 appoint a tax assessor and collector and a board of equalization
325-21 and shall cause taxes to be assessed, valuations to be equalized,
325-22 and tax rolls to be prepared. General laws applicable to water
325-23 control and improvement districts with reference to tax assessors
325-24 and collectors, boards of equalization, tax rolls, tax liens, and
325-25 the levy and collection of taxes and delinquent taxes shall be
325-26 applicable to the authority, except that the board of equalization,
326-1 to be appointed each year by the board, shall consist of one member
326-2 residing in each city contained in the authority.
326-3 (c) The board may make contracts with one or more cities in
326-4 the authority for the collection of authority taxes.
326-5 (d) Taxes levied by the authority shall be ad valorem.
326-6 Sec. 263.027. ADOPTION OF RULES AND REGULATIONS. (a) The
326-7 board may adopt and promulgate all reasonable rules and regulations
326-8 to secure, maintain, and preserve the potable and sanitary
326-9 condition of all water in and to flow into any reservoir owned by
326-10 the authority to prevent the waste or unauthorized use of water, to
326-11 regulate residence, hunting, fishing, boating, and camping, and all
326-12 recreational and business privileges, along, around, or on any
326-13 reservoir or any body of land or easement owned by the authority.
326-14 (b) The authority may prescribe a reasonable penalty for the
326-15 breach of a rule or regulation of the authority, not to exceed a
326-16 fine of $200 or imprisonment for 30 days, or both such fine and
326-17 imprisonment. The penalty shall be in addition to any other
326-18 penalties provided by the laws of the state and may be enforced by
326-19 complaints filed in the appropriate court of jurisdiction;
326-20 provided, however, that no rule or regulation that provides a
326-21 penalty for a violation of the rule or regulation shall be in
326-22 effect, as to enforcement of the penalty, until five days after the
326-23 authority has caused a substantive statement of the rule or
326-24 regulation and the penalty for the violation to be published once a
326-25 week for two consecutive weeks in the county or counties in which
326-26 the reservoir is located. The substantive statement to be
327-1 published shall be as condensed as is possible to afford sufficient
327-2 notice as to the act forbidden by the rule or regulation. A single
327-3 notice may embrace any number of rules or regulations. The notice
327-4 must provide the information that breach of the rule or regulation
327-5 will subject the violator to the imposition of a penalty. The
327-6 notice must also state that the full text of the rule or regulation
327-7 is on file in the principal office of the authority and may be read
327-8 by any interested person. Five days after the second publication
327-9 of the notice required by this section, the advertised rule or
327-10 regulation shall be in effect, and ignorance of the rule or
327-11 regulation shall not constitute a defense to prosecution for the
327-12 enforcement of a penalty. After the required publication, the
327-13 rules and regulations authorized by this section shall judicially
327-14 be known to the courts and shall be considered similar in nature to
327-15 a valid penal ordinance of a city.
327-16 (c) A duly constituted peace officer may make arrests when
327-17 necessary to prevent or stop the commission of any offense against
327-18 the rules or regulations of the authority or against the laws of
327-19 the state, when the offense or threatened offense occurs on or in
327-20 any land, water, or easement owned or controlled by the authority,
327-21 or may make an arrest at any place in the case of an offense
327-22 involving injury or detriment to any property owned or controlled
327-23 by the authority.
327-24 Sec. 263.028. PARKS AND RECREATION FACILITIES. The
327-25 authority may establish or otherwise provide for public parks and
327-26 recreation facilities and may acquire land for such purposes within
328-1 or outside the authority; provided, however, that no money received
328-2 from taxation or from bonds payable wholly or partially from
328-3 taxation shall be used to provide for the parks or recreation
328-4 facilities.
328-5 Sec. 263.029. AUTHORITY OF PEACE OFFICERS. The authority
328-6 may employ and constitute its own peace officers, and any such
328-7 officer or any other duly constituted peace officer may make an
328-8 arrest when necessary to prevent or stop the commission of any
328-9 offense against the regulations of the authority or against the
328-10 laws of the state, when any such offense or threatened offense
328-11 occurs on or in any land, water, or easement owned or controlled by
328-12 the authority, or may make an arrest at any place in the case of an
328-13 offense involving injury or detriment to any property owned or
328-14 controlled by the authority.
328-15 Sec. 263.030. EFFECT ON PRIORITY OF WATER USE. Nothing in
328-16 this chapter shall be interpreted as amending or repealing Section
328-17 11.024, which provides for priorities of the use of water.
328-18 CHAPTER 264. NORTH CENTRAL TEXAS MUNICIPAL WATER AUTHORITY
328-19 Sec. 264.001. CREATION. (a) A conservation and reclamation
328-20 district to be known as the "North Central Texas Municipal Water
328-21 Authority" is created. The authority is a governmental agency and
328-22 a body politic and corporate.
328-23 (b) The authority is created under and is essential to
328-24 accomplish the purposes of Section 59, Article XVI, Texas
328-25 Constitution.
328-26 Sec. 264.002. DEFINITIONS. In this chapter:
329-1 (1) "Authority" means the North Central Texas
329-2 Municipal Water Authority.
329-3 (2) "Board" means the board of directors of the
329-4 authority.
329-5 (3) "Director" means a member of the board.
329-6 Sec. 264.003. TERRITORY. The authority contains all of the
329-7 territory contained in the boundaries of the cities of Goree, Knox
329-8 City, and Munday in Knox County and the city of Haskell in Haskell
329-9 County, as the boundaries of each city are set forth in ordinances
329-10 or resolutions passed or adopted before April 19, 1957. No
329-11 invalidity of any of those ordinances or resolutions or the fixing
329-12 of the boundaries as set out in those ordinances shall affect the
329-13 boundaries of the territory contained in the authority. The
329-14 legislature finds and determines that all of the territory and
329-15 taxable property contained within the boundaries set forth in the
329-16 ordinances or resolutions will benefit from the works and
329-17 improvements of the authority and that the territory described in
329-18 the ordinances or resolutions shall be contained within the
329-19 authority whether lawfully contained within any of the cities or
329-20 not.
329-21 Sec. 264.004. BOARD OF DIRECTORS. (a) All powers of the
329-22 authority shall be exercised by a board of directors. Each
329-23 director is appointed by a majority vote of the governing body of
329-24 the city in which the director resides.
329-25 (b) Two directors are appointed from each city in the
329-26 authority.
330-1 (c) Directors serve staggered two-year terms. In May of
330-2 each year the governing body of each city shall appoint a director
330-3 for the two-year term beginning June 1 of that year.
330-4 (d) Each director serves for a term of office as provided by
330-5 this section and until a successor is appointed and has qualified.
330-6 (e) A director must reside in and own taxable property in
330-7 the city from which the director is appointed. A member of a
330-8 governing body of a city or an employee of a city is not eligible
330-9 to serve as a director.
330-10 (f) A director shall subscribe the constitutional oath of
330-11 office and shall give bond for the faithful performance of the
330-12 director's duties in the amount of $5,000, the cost of which shall
330-13 be paid by the authority.
330-14 (g) A majority of the members of the board constitute a
330-15 quorum.
330-16 (h) If a director moves from the city from which the
330-17 director is appointed or otherwise ceases to be a director, the
330-18 governing body of the city shall appoint a successor director for
330-19 the unexpired term.
330-20 Sec. 264.005. DIRECTOR FEES. (a) Each director is entitled
330-21 to receive a fee not to exceed $20 for attending each meeting of
330-22 the board; provided, however, that no more than $40 may be paid to
330-23 a director for meetings held in any one calendar month.
330-24 (b) Each director is entitled to receive a fee not to exceed
330-25 $20 per day for each day devoted to the business of the authority
330-26 and reimbursement for actual expenses incurred in attending to
331-1 authority business provided that such service and expense are
331-2 expressly approved by the board.
331-3 Sec. 264.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
331-4 shall elect from among its members a president and a vice president
331-5 of the authority and other officers as in the judgment of the board
331-6 are necessary.
331-7 (b) The president is the chief executive officer of the
331-8 authority and the presiding officer of the board and has the same
331-9 right to vote as any other director.
331-10 (c) The vice president shall perform all duties and exercise
331-11 all powers conferred by this chapter on the president when the
331-12 president is absent or fails or declines to act, except the
331-13 president's right to vote.
331-14 (d) The board shall appoint a secretary and a treasurer, who
331-15 may or may not be members of the board, and it may combine those
331-16 offices. The treasurer shall give bond in an amount required by
331-17 the board. The bond must be conditioned on the treasurer
331-18 faithfully accounting for all funds that come into the person's
331-19 custody as treasurer of the authority.
331-20 (e) The board shall appoint necessary engineers, attorneys,
331-21 and other employees and shall employ a general manager. The power
331-22 to employ and discharge employees may be conferred upon the general
331-23 manager.
331-24 (f) The board shall adopt a seal for the authority.
331-25 Sec. 264.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
331-26 (a) Other territory situated within Baylor, Haskell, and Knox
332-1 counties may be annexed to the authority as provided by this
332-2 section.
332-3 (b) A petition for annexation must:
332-4 (1) be signed by 50 or a majority, whichever number is
332-5 less, of the qualified voters of the territory to be annexed who
332-6 own taxable property in the territory being annexed and who have
332-7 duly rendered the property to the city, if situated within a city
332-8 or town, or county for taxation;
332-9 (2) be filed with the board; and
332-10 (3) describe the territory to be annexed by metes and
332-11 bounds or otherwise unless the territory is the same as that
332-12 contained in a city or town, in which event it is sufficient to
332-13 state that the territory to be annexed is that contained within the
332-14 city or town.
332-15 (c) If the board finds that the petition complies with and
332-16 is signed by the number of qualified persons required under
332-17 Subsection (b), that the annexation would be in the interest of the
332-18 territory to be annexed and the authority, and that the authority
332-19 will be able to supply water to the territory to be annexed or
332-20 cause water to be supplied to the territory to be annexed, the
332-21 board shall adopt a resolution stating the conditions, if any,
332-22 under which the territory may be annexed to the authority and
332-23 requesting the commission to annex the territory to the authority.
332-24 The resolution shall be conclusive of the legal sufficiency of the
332-25 petition and the qualifications of the signers. A certified copy
332-26 of the resolution and the petition shall be filed with the
333-1 commission.
333-2 (d) The commission shall adopt a resolution declaring its
333-3 intention to call an election in the territory to be annexed for
333-4 the purpose of submitting the proposition of whether the territory
333-5 shall be annexed to the authority. The commission shall set a time
333-6 and place for a hearing to be held by the commission on the
333-7 question of whether the territory to be annexed will benefit from
333-8 the improvements, works, and facilities then owned or operated or
333-9 contemplated to be owned or operated by the authority or will
333-10 benefit from the other functions of the authority. Railroad
333-11 right-of-way that is not situated within the defined limits of an
333-12 incorporated city or town will not benefit from the improvements,
333-13 works, and facilities that the authority is authorized to
333-14 construct. Railroad right-of-way may not be annexed to the
333-15 authority unless the right-of-way is contained within the limits of
333-16 an incorporated city or town that has been annexed to the
333-17 authority.
333-18 (e) Notice of the adoption of the resolution stating the
333-19 time and place of the hearing addressed to the citizens and owners
333-20 of property in the territory to be annexed shall be published one
333-21 time in a newspaper designated by the commission at least 10 days
333-22 before the date of the hearing. The notice must describe the
333-23 territory to be annexed in the same manner in which it is required
333-24 or permitted by this chapter to be described in the petition.
333-25 (f) All interested persons may appear at the hearing and
333-26 offer evidence for or against the intended annexation. The hearing
334-1 may proceed in the order and under the rules as may be prescribed
334-2 by the commission and may be recessed from time to time. If, at
334-3 the conclusion of the hearing, the commission finds that all of the
334-4 lands in the territory to be annexed will benefit from the present
334-5 or contemplated improvements, works, or facilities of the
334-6 authority, the commission shall adopt a resolution calling an
334-7 election in the territory to be annexed stating the date of the
334-8 election and the place or places for holding and appointing a
334-9 presiding judge for each voting place, who shall appoint the
334-10 necessary assistant judges and clerks to assist in holding the
334-11 election.
334-12 (g) Notice of the election, stating the date and places for
334-13 holding the election, the proposition to be voted on, and the
334-14 conditions under which the territory may be annexed, or making
334-15 reference to the resolution of the board for that purpose, shall be
334-16 published one time in a newspaper designated by the commission at
334-17 least 10 days before the date set for the election.
334-18 (h) Only qualified electors who reside in the territory to
334-19 be annexed may vote in the election. Returns of the election shall
334-20 be made to the commission.
334-21 (i) The commission shall canvass the returns of the election
334-22 and adopt an order declaring the results. If the order shows that
334-23 a majority of the votes cast are in favor of annexation, the
334-24 commission shall annex the territory to the authority, and the
334-25 annexation is incontestable except in the manner and within the
334-26 time for contesting elections under the general election law. A
335-1 certified copy of the order shall be recorded in the deed records
335-2 of the county in which the territory is situated.
335-3 (j) In calling the election on the proposition for the
335-4 annexation of territory, the commission may include, as a part of
335-5 the same proposition, a proposition for:
335-6 (1) the assumption of the territory's part of the
335-7 tax-supported bonds of the authority then outstanding and those
335-8 previously voted but not yet sold; and
335-9 (2) the levy of an ad valorem tax on taxable property
335-10 in the territory to be annexed along with the tax in the rest of
335-11 the authority for the payment of the bonds.
335-12 (k) After territory is added to the authority, the board may
335-13 call an election over the entire authority for the purpose of
335-14 determining whether the entire authority as enlarged shall assume
335-15 the tax-supported bonds then outstanding and those voted but not
335-16 yet sold and whether an ad valorem tax shall be levied on all
335-17 taxable property within the authority as enlarged for the payment
335-18 of the bonds, unless the proposition has been voted along with the
335-19 annexation election and becomes lawfully binding on the territory
335-20 annexed. The election shall be called and held in the same manner
335-21 as elections for the issuance of bonds as provided in this chapter.
335-22 (l) If no newspaper is published in the territory to be
335-23 annexed, the notices required by this section shall be posted at
335-24 three public places in the territory.
335-25 Sec. 264.008. APPOINTMENT OF DIRECTORS IN ANNEXED TERRITORY.
335-26 If the territory of a city is annexed to the authority, the
336-1 governing body of the city shall appoint two directors. The term
336-2 of one appointee expires on the following May 31 and the term of
336-3 the other appointee expires on May 31 a year later. Thereafter,
336-4 the directors are appointed as provided in Section 264.004.
336-5 Sec. 264.009. WATER APPROPRIATION PERMITS. The authority
336-6 may obtain appropriation permits from the commission through
336-7 appropriate hearings as provided by Chapter 11. Thereafter the
336-8 permit, either on application of the authority or on the initiative
336-9 of the commission, may be modified by the commission, after an
336-10 appropriate hearing, to increase or decrease the amount of water
336-11 that may be appropriated, and after considering the amount of water
336-12 that may be stored by the authority to meet fluctuating demands,
336-13 either on application by the authority or by its own action, the
336-14 commission shall redetermine the maximum amount of water that the
336-15 authority may store in its reservoir. In making this
336-16 determination, the commission shall consider the needs of the
336-17 cities and others that purchase water from the authority.
336-18 Sec. 264.010. AUTHORITY TO IMPOUND AND TRANSPORT WATER;
336-19 COMMISSION APPROVAL. (a) The authority may acquire or construct,
336-20 within the boundaries of Baylor, Haskell, Knox, and Throckmorton
336-21 counties, dams and all works, plants, and other facilities
336-22 necessary or useful for the purpose of impounding, processing, and
336-23 transporting water to cities and others for municipal, domestic,
336-24 industrial, and mining purposes.
336-25 (b) The size of a dam and reservoir shall be determined by
336-26 the board, taking into consideration probable future increases in
337-1 water requirements.
337-2 (c) The size of a dam shall not be limited by the amount of
337-3 water initially authorized by the commission or a predecessor
337-4 agency of the commission to be impounded in the reservoir.
337-5 (d) A dam or other facility for impounding water may not be
337-6 constructed until the plan for the project is approved by the
337-7 commission.
337-8 Sec. 264.011. ACQUISITION AND DISPOSITION OF PROPERTY.
337-9 (a) The authority may acquire land and construct, lease, or
337-10 otherwise acquire all works, plants, and other facilities necessary
337-11 or useful for the purpose of diverting, further impounding or
337-12 storing, processing, and transporting water to cities and others
337-13 for municipal, domestic, industrial, and mining purposes.
337-14 (b) Subject to the terms of any deed of trust issued by the
337-15 authority, the authority may sell, trade, or otherwise dispose of
337-16 any real or personal property determined by the board not to be
337-17 needed for authority purposes.
337-18 (c) The authority may not develop or otherwise acquire
337-19 underground sources of water.
337-20 (d) The authority may not exercise powers of eminent domain
337-21 outside the boundaries of Baylor, Knox, Haskell, and Throckmorton
337-22 counties.
337-23 Sec. 264.012. EMINENT DOMAIN. (a) For the purpose of
337-24 carrying out any power or authority conferred by this chapter, the
337-25 authority may acquire by condemnation in the manner provided by
337-26 Chapter 21, Property Code, the fee simple title to land and other
338-1 property and easements in Baylor, Knox, Haskell, and Throckmorton
338-2 counties for the reservoir and dam and flood easements above the
338-3 probable high-water line around any such reservoir and easements
338-4 for pipelines.
338-5 (b) The authority is a municipal corporation within the
338-6 meaning of Section 21.021(c), Property Code, except that the
338-7 authority may not condemn property owned by any other political
338-8 subdivision, city, or town.
338-9 (c) As against persons, firms, and corporations, or their
338-10 receivers or trustees, who have the power of eminent domain, the
338-11 fee title may not be condemned, and the authority may condemn only
338-12 an easement.
338-13 (d) In accordance with the provisions of this section, the
338-14 amount and character of interest in land, other property, and
338-15 easements to be acquired shall be determined by the board.
338-16 (e) The authority has the power conferred on water control
338-17 and improvement districts by Section 49.221 with reference to
338-18 making surveys and attending to other business of the authority.
338-19 (f) If the authority, in the exercise of the power of
338-20 eminent domain or the power of relocation or any other power
338-21 granted under this chapter, makes necessary the relocation,
338-22 raising, rerouting, changing the grade, or altering the
338-23 construction of any highway, railroad, electric transmission line,
338-24 telephone or telegraph properties and facilities, or pipeline, all
338-25 such necessary relocation, raising, rerouting, changing of grade,
338-26 or alteration of construction shall be accomplished at the sole
339-1 expense of the authority.
339-2 Sec. 264.013. CONTRACTS; BIDS. A construction contract
339-3 requiring an expenditure of more than $10,000 may be made only
339-4 after publication of a notice to bidders once each week for two
339-5 weeks for sealed bids before the contract is awarded. The bids
339-6 shall be opened publicly. The notice is sufficient if it states
339-7 the time and place when and where the bids will be opened, states
339-8 the general nature of the work to be done or the material,
339-9 equipment, or supplies to be purchased, and states where and on
339-10 what terms copies of the plans and specifications may be obtained.
339-11 The publication must be in a newspaper published in the authority
339-12 and designated or approved by the board.
339-13 Sec. 264.014. ISSUANCE OF BONDS. (a) For the purpose of
339-14 providing a source of water supply for cities and other users for
339-15 municipal, domestic, industrial, mining, and oil flooding purposes
339-16 as authorized by this chapter and for the purpose of carrying out
339-17 any other power or authority conferred by this chapter, the
339-18 authority may issue negotiable bonds to be payable from such
339-19 revenues or taxes, or both revenues and taxes, of the authority as
339-20 are pledged by resolution of the board. Pending the issuance of
339-21 definitive bonds, the board may authorize the delivery of
339-22 negotiable interim bonds or notes that are eligible for exchange or
339-23 substitution by the definitive bonds.
339-24 (b) Bonds must be authorized by resolution of the board.
339-25 The bonds must be issued in the name of the authority, signed by
339-26 the president or vice president, and attested by the secretary and
340-1 must bear the seal of the authority. The signatures of the
340-2 president or of the secretary or of both may be printed or
340-3 lithographed on the bonds if authorized by the board, and the seal
340-4 of the authority may be impressed, printed, or lithographed on the
340-5 bonds. The bonds must mature, serially or otherwise, in not to
340-6 exceed 40 years and may be sold at a price and under terms
340-7 determined by the board to be the most advantageous reasonably
340-8 obtainable, provided that the interest cost to the authority,
340-9 including the discount, if any, calculated by use of standard bond
340-10 interest tables currently in use by insurance companies and
340-11 investment houses does not exceed six percent per year. Within the
340-12 discretion of the board, bonds may be made callable prior to
340-13 maturity at such times and prices as may be prescribed in the
340-14 resolution authorizing the bonds and may be made registrable as to
340-15 principal or as to both principal and interest.
340-16 (c) Bonds may be issued in more than one series and from
340-17 time to time as required for carrying out the purposes of this
340-18 chapter.
340-19 (d) Bonds may be secured by a pledge of all or part of the
340-20 net revenues of the authority, of the net revenues of one or more
340-21 contracts made before or after the bonds are issued, or of other
340-22 revenues or income specified by resolution of the board or in the
340-23 trust indenture. Any such pledge may reserve the right, under
340-24 conditions specified in the pledge, to issue additional bonds that
340-25 will be on a parity with or subordinate to the bonds being issued.
340-26 In this section, "net revenues" means the gross revenues and income
341-1 of the authority from all sources less the amount necessary to pay
341-2 the cost of maintaining and operating the authority and its
341-3 properties.
341-4 (e) The authority may issue bonds payable from ad valorem
341-5 taxes to be levied on all taxable property in the authority and may
341-6 issue bonds secured by and payable from both such taxes and the
341-7 revenues of the authority. If bonds are issued payable wholly or
341-8 partially from ad valorem taxes, the board shall levy a tax
341-9 sufficient to pay the bonds and the interest on the bonds as the
341-10 bonds and interest become due, but the rate of the tax for any year
341-11 may be set after giving consideration to the money received from
341-12 the pledged revenues that may be available for payment of principal
341-13 and interest to the extent and in the manner permitted by the
341-14 resolution authorizing the issuance of the bonds.
341-15 (f) If bonds payable wholly from revenues are issued, the
341-16 board shall set, and from time to time revise, rates of
341-17 compensation for water sold and services rendered by the authority
341-18 that will be sufficient to pay the expense of operating and
341-19 maintaining the facilities of the authority and to pay bonds as
341-20 they mature and the interest as it accrues and to maintain the
341-21 reserve and other funds as provided in the resolution authorizing
341-22 the bonds. If bonds payable partially from revenues are issued,
341-23 the board shall set, and from time to time revise, rates of
341-24 compensation for water sold and services rendered by the authority
341-25 that will be sufficient to assure compliance with the resolution
341-26 authorizing the bonds.
342-1 (g) The authority may set aside from the proceeds of the
342-2 sale of the bonds an amount for the payment of interest expected to
342-3 accrue during construction and for a reserve interest and sinking
342-4 fund, and such provision may be made in the resolution authorizing
342-5 the bonds. Proceeds from the sale of the bonds may also be used
342-6 for the payment of all expenses necessarily incurred in
342-7 accomplishing the purposes for which the authority is created,
342-8 including the expenses of issuing and selling the bonds. The
342-9 proceeds from the sale of the bonds may be temporarily invested in
342-10 direct obligations of the United States government maturing not
342-11 more than one year from the date of investment.
342-12 (h) In the event of a default or a threatened default in the
342-13 payment of principal of or interest on bonds payable wholly or
342-14 partially from revenues of the authority, any court of competent
342-15 jurisdiction may, on petition of the holders of outstanding bonds,
342-16 appoint a receiver with authority to collect and receive all income
342-17 of the authority except taxes, employ and discharge agents and
342-18 employees of the authority, take charge of the authority's funds on
342-19 hand (except funds received from taxes, unless commingled), and
342-20 manage the proprietary affairs of the authority without consent or
342-21 hindrance by the board. The receiver may also be authorized to
342-22 sell or make contracts for the sale of water or renew such
342-23 contracts with the approval of the court appointing the receiver.
342-24 The court may vest the receiver with other powers and duties the
342-25 court finds necessary for the protection of the holders of the
342-26 bonds. The resolution authorizing the issuance of the bonds or the
343-1 trust indenture securing them may limit or qualify the rights of
343-2 less than all of the outstanding bonds payable from the same source
343-3 to institute or prosecute any litigation affecting the authority's
343-4 property or income.
343-5 Sec. 264.015. REFUNDING BONDS. (a) The authority may issue
343-6 refunding bonds for the purpose of refunding any outstanding bonds
343-7 authorized by this chapter and interest on the bonds. Refunding
343-8 bonds may be issued to refund more than one series of outstanding
343-9 bonds and combine the pledges for the outstanding bonds for the
343-10 security of the refunding bonds, and refunding bonds may be secured
343-11 by other or additional revenues and mortgage liens.
343-12 (b) The provisions of this chapter with reference to the
343-13 issuance by the authority of other bonds, their security, their
343-14 approval by the attorney general, and the remedies of the holders
343-15 shall be applicable to refunding bonds. Refunding bonds shall be
343-16 registered by the comptroller on surrender and cancellation of the
343-17 bonds to be refunded, but in lieu of the process, the resolution
343-18 authorizing the issuance of the refunding bonds may provide that
343-19 the refunding bonds shall be sold and the proceeds of the sale
343-20 deposited in the bank where the original bonds are payable, in
343-21 which case the refunding bonds may be issued in an amount
343-22 sufficient to pay the principal of and the interest on the original
343-23 bonds to their option date or maturity date, and the comptroller
343-24 shall register the refunding bonds without concurrent surrender and
343-25 cancellation of the original bonds.
343-26 Sec. 264.016. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE
344-1 LIEN. (a) Bonds, including refunding bonds, authorized by this
344-2 chapter that are not payable wholly from ad valorem taxes may be
344-3 additionally secured by a trust indenture under which the trustee
344-4 may be a bank with trust powers located either within or outside
344-5 the state. Such bonds may, within the discretion of the board, be
344-6 additionally secured by a deed of trust or mortgage lien on
344-7 physical properties of the authority and all franchises, easements,
344-8 water rights and appropriation permits, leases and contracts, and
344-9 rights appurtenant to the properties, vesting in the trustee power
344-10 to sell the properties for payment of the indebtedness, power to
344-11 operate the properties, and all other powers and authority for the
344-12 further security of the bonds.
344-13 (b) The trust indenture, regardless of the existence of a
344-14 deed of trust or mortgage lien on the properties, may contain any
344-15 provisions prescribed by the board for the security of the bonds
344-16 and the preservation of the trust estate, may make provision for
344-17 amendment or modification thereof and the issuance of bonds to
344-18 replace lost or mutilated bonds, may condition the right to expend
344-19 authority funds or sell authority property upon approval of a
344-20 registered professional engineer selected as provided in the trust
344-21 indenture, and may make provision for the investment of funds of
344-22 the authority. A purchaser under a sale under a deed of trust
344-23 lien, where one is given, shall be the absolute owner of the
344-24 properties, facilities, and rights purchased and shall have the
344-25 right to maintain and operate the properties, facilities, and
344-26 rights.
345-1 Sec. 264.017. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION.
345-2 (a) Bonds payable wholly or partially from ad valorem taxes,
345-3 except refunding bonds, may not be issued unless authorized by an
345-4 election held after January 1, 1969, at which only the qualified
345-5 voters who reside in the authority may vote and a majority of the
345-6 votes cast in each city contained in the authority are in favor of
345-7 the issuance of the bonds. If a majority of the votes cast in any
345-8 city contained in the authority are against the issuance of the
345-9 bonds, the board may adopt a resolution detaching the territory of
345-10 that city from the authority if the board finds that it is to the
345-11 best interest of the authority to issue bonds payable wholly or
345-12 partially from taxes, but no territory may be detached from the
345-13 authority while any bonds that are payable from revenues or taxes
345-14 or both are outstanding. Bonds not payable wholly or partially
345-15 from ad valorem taxes may be issued without an election.
345-16 (b) An election for the authorization of bonds may be called
345-17 by the board without a petition. The resolution calling the
345-18 election must specify the time and places of holding the election,
345-19 the purpose for which the bonds are to be issued, the maximum
345-20 amount of the bonds, the maximum maturity of the bonds, the form of
345-21 the ballot, and the presiding judge for each voting place. The
345-22 presiding judge serving at each voting place shall appoint one
345-23 assistant judge and at least two clerks to assist in holding the
345-24 election. Notice of the election shall be given by publishing a
345-25 substantial copy of the notice in a newspaper published in each
345-26 city contained in the authority for two consecutive weeks. The
346-1 first publication must be at least 21 days before the date of the
346-2 election. In a city in which no newspaper is published, notice
346-3 shall be given by posting a copy of the resolution in three public
346-4 places.
346-5 (c) The returns of the election shall be made to and
346-6 canvassed by the board.
346-7 (d) Elections held under this section shall be governed by
346-8 the Election Code except as otherwise provided by this chapter.
346-9 Sec. 264.018. BOND APPROVAL AND REGISTRATION. After bonds,
346-10 including refunding bonds, are authorized by the authority, the
346-11 bonds and the record relating to their issuance shall be submitted
346-12 to the attorney general for examination as to the validity of the
346-13 bonds. If the bonds recite that they are secured by a pledge of
346-14 the proceeds of a contract previously made between the authority
346-15 and a city or other governmental agency, authority, or district, a
346-16 copy of the contract and the proceedings of the city or other
346-17 governmental agency, authority, or district authorizing the
346-18 contract shall also be submitted to the attorney general. If the
346-19 bonds have been authorized and if such contract has been made in
346-20 accordance with the constitution and laws of the state, the
346-21 attorney general shall approve the bonds and the contract, and the
346-22 bonds then shall be registered by the comptroller. After this
346-23 approval, the bonds and the contract, if any, are valid and binding
346-24 and are incontestable for any cause.
346-25 Sec. 264.019. CONTRACTS WITH CITIES AND OTHERS. The
346-26 authority may enter into contracts with cities and others for
347-1 supplying water to them. The authority may also contract with a
347-2 city for the rental or leasing of, or for the operation of, the
347-3 water production, water supply, and water filtration or
347-4 purification and water supply facilities of the city for such
347-5 consideration as the authority and the city may agree. The
347-6 contract may be on such terms and for such time as the parties may
347-7 agree, and the contract may provide that it shall continue in
347-8 effect until bonds specified in the contract and refunding bonds
347-9 issued in lieu of such bonds are paid.
347-10 Sec. 264.020. AUTHORITY DEPOSITORY. (a) The board shall
347-11 designate one or more banks within the authority to serve as
347-12 depository for the funds of the authority. All funds of the
347-13 authority shall be deposited in the depository bank or banks,
347-14 except that funds pledged to pay bonds may be deposited with the
347-15 trustee bank named in the trust agreement and except that funds
347-16 shall be remitted to the bank of payment for the payment of the
347-17 principal of and interest on bonds. To the extent that funds in
347-18 the depository banks and the trustee bank are not insured by the
347-19 Federal Deposit Insurance Corporation, the funds shall be secured
347-20 in the manner provided by law for the security of county funds.
347-21 (b) Before designating a depository bank or banks, the board
347-22 shall issue a notice stating the time and place when and where the
347-23 board will meet for such purpose and inviting the banks in the
347-24 authority to submit applications to be designated depositories.
347-25 The notice must be published one time in a newspaper or newspapers
347-26 published in the authority and specified by the board.
348-1 (c) At the time stated in the notice, the board shall
348-2 consider the applications and the management and condition of the
348-3 banks filing them and shall designate as depositories the bank or
348-4 banks that offer the most favorable terms and conditions for the
348-5 handling of the funds of the authority and that the board finds
348-6 have proper management and are in condition to warrant the handling
348-7 of authority funds. Membership on the board by an officer or
348-8 director of a bank shall not disqualify that bank from being
348-9 designated as a depository.
348-10 (d) If no applications are received by the time stated in
348-11 the notice, the board shall designate a bank or banks within or
348-12 outside the authority on such terms and conditions as the board
348-13 determines advantageous to the authority.
348-14 (e) The term of service for depositories shall be prescribed
348-15 by the board.
348-16 Sec. 264.021. WATER APPROPRIATION PERMITS; ACQUISITION OF
348-17 STORAGE CAPACITY AND WATER. The authority may acquire water
348-18 appropriation permits from owners of permits. The authority may
348-19 lease or acquire rights in and to storage and storage capacity in
348-20 any reservoir constructed or to be constructed by any person, firm,
348-21 corporation, or public agency or from the United States government
348-22 or any of its agencies. The authority may also purchase or make
348-23 contracts for the purchase of water or a water supply from any
348-24 person, firm, corporation, or public agency or from the United
348-25 States government or any of its agencies.
348-26 Sec. 264.022. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
349-1 DEPOSITS. All bonds of the authority are legal and authorized
349-2 investments for banks, savings banks, trust companies, building and
349-3 loan associations, savings and loan associations, insurance
349-4 companies, fiduciaries, trustees, and guardians and for the sinking
349-5 funds of cities, towns, villages, counties, school districts, or
349-6 other political corporations or subdivisions of the state. The
349-7 bonds are eligible to secure the deposit of all public funds of the
349-8 state and all public funds of cities, towns, villages, counties,
349-9 school districts, or other political corporations or subdivisions
349-10 of the state, and the bonds are lawful and sufficient security for
349-11 the deposits to the extent of their value when accompanied by all
349-12 unmatured coupons.
349-13 Sec. 264.023. BONDS EXEMPT FROM TAXATION. The
349-14 accomplishment of the purposes stated in this chapter is for the
349-15 benefit of the people of this state and for the improvement of
349-16 their properties and industries, and the authority, in carrying out
349-17 the purposes of this chapter will be performing an essential public
349-18 function under Section 59, Article XVI, Texas Constitution. The
349-19 authority shall not be required to pay any tax or assessment on the
349-20 project or any part of the project, and the bonds issued under this
349-21 chapter and the transfer of and income from the bonds, including
349-22 profits made on the sale of the bonds, shall at all times be free
349-23 from taxation within the state.
349-24 Sec. 264.024. TAXATION. (a) The tax rolls of the cities
349-25 situated within the authority as created and within annexed
349-26 territory shall constitute the tax rolls of the authority until
350-1 assessments and tax rolls are made by the authority.
350-2 (b) Before the sale and delivery of authority bonds that are
350-3 payable wholly or partially from ad valorem taxes, the board shall
350-4 appoint a tax assessor and collector and a board of equalization
350-5 and shall cause taxes to be assessed, valuations to be equalized,
350-6 and tax rolls to be prepared. General laws applicable to water
350-7 control and improvement districts with reference to tax assessors
350-8 and collectors, boards of equalization, tax rolls, and the levy and
350-9 collection of taxes and delinquent taxes shall be applicable to the
350-10 authority, except that the board of equalization, to be appointed
350-11 each year by the board, shall consist of one member residing in
350-12 each city then contained in the authority.
350-13 Sec. 264.025. ADOPTION OF RULES OR REGULATIONS; PENALTIES;
350-14 ENFORCEMENT. (a) The board may adopt and promulgate all
350-15 reasonable rules or regulations to secure, maintain, and preserve
350-16 the sanitary condition of all water in and to flow into any
350-17 reservoir owned by the authority, to prevent the waste or
350-18 unauthorized use of water, and to regulate residence, hunting,
350-19 fishing, boating, and camping and all recreational and business
350-20 privileges along or around any reservoir or any body of land or
350-21 easement owned by the authority.
350-22 (b) The authority may prescribe a reasonable penalty for the
350-23 breach of a rule or regulation of the authority, not to exceed a
350-24 fine of $200 or imprisonment for 30 days, or both the fine and
350-25 imprisonment. The penalty shall be in addition to any other
350-26 penalties provided by the laws of the state and may be enforced by
351-1 complaints filed in the appropriate court of jurisdiction;
351-2 provided, however, that no rule or regulation that provides a
351-3 penalty for a violation of the rule or regulation shall be in
351-4 effect, as to enforcement of the penalty, until five days after the
351-5 authority has caused a substantive statement of the rule or
351-6 regulation and the penalty for the violation to be published once a
351-7 week for two consecutive weeks in the county in which the reservoir
351-8 is situated or in any county in which it is partly situated. The
351-9 substantive statement to be published must be as condensed as is
351-10 possible to afford sufficient notice as to the act prohibited by
351-11 the rule or regulation. A single notice may embrace any number of
351-12 rules or regulations. The notice must provide the information that
351-13 breach of the rule or regulation will subject the violator to the
351-14 imposition of a penalty. The notice must also state that the full
351-15 text of the rule or regulation is on file in the principal office
351-16 of the authority, where it may be read by any interested person.
351-17 Five days after the second publication of the required notice, the
351-18 advertised rule or regulation shall be in effect and ignorance of
351-19 the rule or regulation is not a defense to prosecution for the
351-20 enforcement of a penalty. After the required publication, the
351-21 rules and regulations authorized by this section shall judicially
351-22 be known to the courts and shall be considered similar in nature to
351-23 a valid penal ordinance of a city of the state.
351-24 (c) A duly constituted peace officer may make arrests when
351-25 necessary to prevent or stop the commission of any offense against
351-26 the rules or regulations of the authority, or against the laws of
352-1 the state, when the offense or threatened offense occurs on any
352-2 land, water, or easement owned or controlled by the authority or
352-3 may make an arrest at any place in the case of an offense involving
352-4 injury or detriment to any property owned or controlled by the
352-5 authority.
352-6 Sec. 264.026. PARKS AND RECREATION. The authority may
352-7 establish or otherwise provide for public parks and recreation
352-8 facilities and may acquire land for those purposes.
352-9 Sec. 264.027. EFFECT ON PRIORITY OF WATER USE. Nothing in
352-10 this chapter shall be interpreted as amending or repealing Section
352-11 11.024, which provides for priorities of the use of water.
352-12 CHAPTER 265. NORTH HARRIS COUNTY REGIONAL WATER AUTHORITY
352-13 Sec. 265.001. CREATION. (a) A regional water authority to
352-14 be known as the "North Harris County Regional Water Authority" is
352-15 created. The authority is a governmental agency and a body politic
352-16 and corporate.
352-17 (b) The authority is created under and is essential to
352-18 accomplish the purposes of Section 59, Article XVI, Texas
352-19 Constitution.
352-20 Sec. 265.002. DEFINITIONS. In this chapter:
352-21 (1) "Agricultural crop" means food or fiber
352-22 commodities grown for resale or commercial purposes that provide
352-23 food, clothing, or animal feed.
352-24 (2) "Authority" means the North Harris County Regional
352-25 Water Authority.
352-26 (3) "Board" means the board of directors of the
353-1 authority.
353-2 (4) "Director" means a member of the board.
353-3 (5) "Local government" means a municipality, county,
353-4 special district, or other political subdivision of the state or a
353-5 combination of two or more of those entities.
353-6 (6) "Person" has the meaning assigned by Section
353-7 311.005, Government Code.
353-8 (7) "Subsidence" means the lowering in elevation of
353-9 the surface of land by the withdrawal of groundwater.
353-10 (8) "Subsidence district" means the Harris-Galveston
353-11 Coastal Subsidence District.
353-12 (9) "System" means a network of pipelines, conduits,
353-13 canals, pumping stations, force mains, treatment plants, and any
353-14 other construction, device, or related appurtenance used to treat
353-15 or transport water.
353-16 (10) "Water" includes:
353-17 (A) groundwater, percolating or otherwise;
353-18 (B) any surface water, natural or artificial,
353-19 navigable or nonnavigable; and
353-20 (C) industrial and municipal wastewater.
353-21 Sec. 265.003. BOUNDARIES. (a) Except as provided by this
353-22 section, the authority includes the territory that is contained in
353-23 the following area, regardless of whether the territory contains
353-24 noncontiguous parcels of land or whether the territory is located
353-25 within the boundaries of any other governmental entity or political
353-26 subdivision of the state, but only if also contained in one or more
354-1 of the state representative districts described by this section:
354-2 BEGINNING at the intersection of the Harris and Waller County
354-3 line with the north right-of-way line of U.S. Highway 290 (current
354-4 alignment);
354-5 THENCE northwest along the Harris and Waller County line to
354-6 the intersection with Spring Creek;
354-7 THENCE continuing southeasterly along said Harris and Waller
354-8 County line, with the meanders of Spring Creek to the intersection
354-9 of the Waller and Montgomery County line;
354-10 THENCE southeasterly along the Harris and Montgomery County
354-11 line continuing with the meanders of said Spring Creek; to the
354-12 intersection with the City of Houston, corporate limits;
354-13 THENCE along said City of Houston corporate limits, the
354-14 following: south approximately one half mile; east approximately
354-15 one half mile to the City of Humble corporate limits; north along
354-16 said City of Humble corporate limits approximately one half mile to
354-17 aforementioned Spring Creek; east along Spring Creek to its
354-18 confluence with the San Jacinto River to the intersection of U.S.
354-19 Highway 59; easterly and southerly along the take line for Lake
354-20 Houston to the intersection with the southeasterly right-of-way of
354-21 the Union Pacific Railroad; southwesterly along said Union Pacific
354-22 Railroad for approximately two miles; south to the north end of
354-23 Duessen Parkway; southeast along the east side of Duessen Parkway
354-24 and along the north side of the access road to the intersection
354-25 with North Lake Houston Parkway;
354-26 THENCE departing said City of Houston corporate limits, west
355-1 along the north side of said North Lake Houston Parkway to the
355-2 beginning of Mount Houston Road, and continuing west on Mount
355-3 Houston Road to the 6900 block to the intersection of Suburban;
355-4 THENCE south along Suburban to the City of Houston corporate
355-5 limits;
355-6 THENCE along said City of Houston corporate limits, the
355-7 following: west to Hirsch Road; south along the west side of
355-8 Hirsch Road to Langely; west along the south side of Langley to the
355-9 southbound feeder road of US Highway 59; northeast along the west
355-10 side of the feeder road of US Highway 59 to Little York; west along
355-11 the south side of Little York to Bentley; north along the east side
355-12 of Bentley to Sagebrush; west along the north side of Sagebrush to
355-13 Halls Bayou; south along Halls Bayou to Little York; west along the
355-14 south side of Little York to Aldine Westfield Road; north along the
355-15 east sides of Aldine Westfield Road to its intersection with the
355-16 easterly extension of the City of Houston corporate limits; west to
355-17 the Hardy Toll Road; north along the Hardy Toll Road approximately
355-18 0.25 miles; east approximately 0.35 mile; north approximately 0.15
355-19 mile; west approximately 0.35 mile; northwest along the Hardy Toll
355-20 Road approximately 1 mile; southwesterly along an irregular path
355-21 generally west to Carby; west along Carby to Airline Drive; south
355-22 along Airline Drive to Canino; west along Canino to Sweetwater;
355-23 north along Sweetwater to West Road; west to Interstate 45/US 75;
355-24 south along Interstate 45/US 75 to south of Bluebell Road;
355-25 southerly along an irregular path generally south and west to West
355-26 Mount Houston Road; west along Mount Houston Road to a line east of
356-1 Ella Boulevard; south along a line generally parallel to Ella
356-2 Boulevard to south of West Gulf Bank; west along the south side of
356-3 West Gulf Bank to Tomball Parkway; northwest along Tomball Parkway
356-4 approximately 1.5 mile; west along an irregular path to North
356-5 Houston-Rosslyn Road; north along North Houston-Rosslyn Road to
356-6 Vogel Creek; west along Vogel Creek to the FWD CRIP RR; south along
356-7 the FWD CRIP RR to Logview; west along Logview to Hollister; south
356-8 along Hollister to White Oak Bayou; east along White Oak Bayou to
356-9 Twisting Vine; south along Twisting Vine to West Little York; west
356-10 along West Little York to Fairbanks North Houston; south along
356-11 Fairbanks North Houston to Cole Creek; west along Cole Creek to
356-12 Hempstead Road; northwest along Hempstead Road to Brittmore Road,
356-13 also being the intersection with U.S. Highway 290, Northwest
356-14 Freeway;
356-15 THENCE departing said City of Houston corporate limits and
356-16 continuing northwest along U.S. Highway 290, Northwest Freeway, at
356-17 Spencer Road;
356-18 THENCE northwest along U.S. Highway 290, Northwest Freeway
356-19 (current alignment), to the intersection of the Harris and Waller
356-20 County line, the POINT OF BEGINNING.
356-21 (b) The authority includes only that territory described by
356-22 Subsection (a) that is also in the following state representative
356-23 districts as described by Article II, Chapter 2, Acts of the 72nd
356-24 Legislature, 3rd Called Session, 1992 (Article II, Article 195a-11,
356-25 Vernon's Texas Civil Statutes), as the districts existed on
356-26 June 18, 1999:
357-1 (1) District 127;
357-2 (2) District 126;
357-3 (3) District 130;
357-4 (4) District 135; and
357-5 (5) District 150.
357-6 (c) Notwithstanding Subsections (a) and (b), the authority
357-7 does not include any area that, on June 18, 1999, was inside the
357-8 municipal limits of the city of Houston or inside the municipal
357-9 limits of the city of Humble.
357-10 (d) On a municipality's annexation of any of the authority's
357-11 territory, the annexed territory is excluded from the authority's
357-12 territory. The authority shall continue to provide services to the
357-13 annexed territory in accordance with contracts in effect at the
357-14 time of the annexation unless a written agreement between the board
357-15 and the governing body of the municipality provides otherwise.
357-16 Sec. 265.004. EXCLUSION OF CERTAIN TERRITORY. (a) A
357-17 district organized under Section 52, Article III, or Section 59,
357-18 Article XVI, Texas Constitution, that is located in the portion of
357-19 the territory described by Section 265.003(a) that is south of
357-20 Beltway 8 or east of U.S. Highway 59 may petition for exclusion of
357-21 its territory from the authority's territory. Before the 61st day
357-22 after the date the authority receives the petition, the board
357-23 shall:
357-24 (1) grant the petition and order the territory
357-25 excluded if the petition:
357-26 (A) includes an accurate legal description of
358-1 the boundaries of the territory to be excluded; and
358-2 (B) is filed with the authority before March 1,
358-3 2001; and
358-4 (2) if the board grants the petition, file for
358-5 recording in the office of the county clerk of Harris County a copy
358-6 of the order and a description of the authority's boundaries as
358-7 they exist after the exclusion of the territory.
358-8 (b) The order excluding the territory is effective
358-9 immediately after the order and description are recorded.
358-10 Sec. 265.005. APPLICABILITY OF OTHER LAW. (a) Except as
358-11 provided by Subsection (b), this chapter prevails over any
358-12 provision of general law that is inconsistent with this chapter.
358-13 (b) This chapter does not prevail over or preempt a
358-14 provision of Chapter 36 or 151 that is being implemented by the
358-15 subsidence district.
358-16 Sec. 265.006. FINDING OF BENEFIT. All the land and other
358-17 property included within the boundaries of the authority will
358-18 benefit from the works and projects that are to be accomplished by
358-19 the authority under powers conveyed by this chapter. The authority
358-20 is created to serve a public use and benefit.
358-21 Sec. 265.007. BOARD OF DIRECTORS. (a) The authority is
358-22 governed by a board of five directors.
358-23 (b) The board shall appoint a person to fill a vacancy in
358-24 the office of director until the next election of directors. If
358-25 the position is not scheduled to be filled at the election, the
358-26 person elected to fill the position serves only for the remainder
359-1 of the unexpired term.
359-2 (c) To be eligible to serve as director, a person must be a
359-3 qualified voter in the voting district from which the person is
359-4 elected or appointed.
359-5 Sec. 265.008. METHOD OF ELECTION OF DIRECTORS. (a) One
359-6 director shall be elected from each of the five single-member
359-7 voting districts by the qualified voters of the voting district.
359-8 (b) A person shall indicate on the person's application for
359-9 a place on the ballot the voting district that the person seeks to
359-10 represent.
359-11 (c) In the manner described by Section 49.103(d), the board
359-12 shall redraw the single-member voting districts as soon as
359-13 practicable after:
359-14 (1) each federal census; and
359-15 (2) any change in the boundaries of the authority.
359-16 (d) At the first election after each time the voting
359-17 districts are redrawn:
359-18 (1) five new directors shall be elected to represent
359-19 the single-member voting districts; and
359-20 (2) the directors elected shall draw lots to determine
359-21 their terms so that:
359-22 (A) two directors serve two-year terms; and
359-23 (B) three directors serve four-year terms.
359-24 (e) Subchapter C, Chapter 146, Election Code, applies to the
359-25 consideration of votes for a write-in candidate for director as if
359-26 the authority were a municipality.
360-1 Sec. 265.009. SERVICE OF DIRECTORS. (a) The terms of the
360-2 initial permanent directors are determined by lot, with two
360-3 directors serving two-year terms and three directors serving
360-4 four-year terms.
360-5 (b) The initial permanent directors serve until permanent
360-6 directors are elected under Section 265.010.
360-7 (c) Permanent directors serve staggered four-year terms.
360-8 (d) A director serves until the director's successor has
360-9 qualified.
360-10 Sec. 265.010. ELECTION DATES. On the first uniform election
360-11 date of the calendar year in each even-numbered year, the
360-12 appropriate number of directors shall be elected to the board.
360-13 Sec. 265.011. MEETINGS AND ACTIONS OF BOARD. The board
360-14 shall meet at least four times each year and may meet at any other
360-15 time the board considers appropriate.
360-16 Sec. 265.012. GENERAL MANAGER. (a) The board shall employ
360-17 a general manager as the chief administrative officer of the
360-18 authority. The board may delegate to the general manager full
360-19 authority to manage and operate the affairs of the authority
360-20 subject only to the orders of the board.
360-21 (b) The duties of the general manager include:
360-22 (1) the administration of the orders of the board;
360-23 (2) coordination with state, federal, and local
360-24 agencies;
360-25 (3) the oversight of development of authority plans
360-26 and programs; and
361-1 (4) other duties assigned by the board.
361-2 (c) The board shall determine the terms of office and
361-3 employment of and the compensation to be paid to the general
361-4 manager. The general manager may be discharged by majority vote of
361-5 the board.
361-6 Sec. 265.013. EMPLOYEES; BONDS. (a) The general manager of
361-7 the authority shall employ all persons necessary for the proper
361-8 handling of the business and operations of the authority and may
361-9 employ attorneys, bookkeepers, engineers, and other expert and
361-10 specialized personnel the board considers necessary. The general
361-11 manager shall determine compensation to be paid by the authority.
361-12 (b) The general manager may discharge employees of the
361-13 authority.
361-14 (c) The general manager of the authority and each employee
361-15 or contractor of the authority who is charged with the collection,
361-16 custody, or payment of any money of the authority shall execute a
361-17 fidelity bond in an amount determined by the board and in a form
361-18 and with a surety approved by the board. The authority shall pay
361-19 for the bond.
361-20 Sec. 265.014. GENERAL POWERS AND DUTIES. (a) The authority
361-21 has all of the rights, powers, privileges, authority, functions,
361-22 and duties necessary and convenient to accomplish the purposes of
361-23 this chapter, including those provided by Chapter 49.
361-24 (b) The authority may:
361-25 (1) provide for the conservation, preservation,
361-26 protection, recharge, and prevention of waste of groundwater, and
362-1 for the reduction of groundwater withdrawals, in a manner
362-2 consistent with the purposes of Section 59, Article XVI, Texas
362-3 Constitution;
362-4 (2) for the purposes of reducing groundwater
362-5 withdrawals and subsidence, acquire or develop surface water and
362-6 groundwater supplies from sources inside or outside the boundaries
362-7 of the authority and may conserve, store, transport, treat, purify,
362-8 distribute, sell, and deliver water to persons, corporations,
362-9 municipal corporations, political subdivisions of the state, and
362-10 others, inside and outside the boundaries of the authority;
362-11 (3) enter into contracts with persons, including
362-12 political subdivisions of the state, on terms and conditions the
362-13 board considers desirable, fair, and advantageous for the
362-14 performance of the authority's rights, powers, and authority under
362-15 this chapter;
362-16 (4) coordinate water services provided inside,
362-17 outside, or into the authority; and
362-18 (5) administer and enforce the provisions of this
362-19 chapter.
362-20 (c) The authority's rights, powers, privileges, authority,
362-21 functions, and duties are subject to the continuing right of
362-22 supervision of the state, to be exercised by and through the
362-23 commission.
362-24 (d) The authority shall exercise its rights, powers,
362-25 privileges, and authority in a manner that will promote
362-26 regionalization of water treatment and distribution.
363-1 Sec. 265.015. AUTHORITY RULES. (a) The authority shall
363-2 adopt and enforce rules reasonably required to implement this
363-3 chapter, including rules governing procedures before the board.
363-4 (b) The board shall compile its rules in a book and make
363-5 them available for use and inspection at the authority's principal
363-6 office.
363-7 Sec. 265.016. FEES AND CHARGES. (a) The authority may
363-8 establish fees and charges as necessary to enable the authority to
363-9 fulfill the authority's regulatory obligations as provided by this
363-10 chapter.
363-11 (b) The authority may charge against the owner of a well
363-12 located in the authority's boundaries a fee on the amount of water
363-13 pumped from the well. The board shall set the rate of a fee under
363-14 this subsection only after a special meeting on the fee. The board
363-15 by rule may exempt classes of wells from the fee under this
363-16 subsection. The board may not apply the fee to a well that:
363-17 (1) has a casing diameter of less than five inches and
363-18 serves a single-family dwelling;
363-19 (2) is regulated under Chapter 27;
363-20 (3) is used for irrigation of agricultural crops;
363-21 (4) produces 10 million gallons or less annually; or
363-22 (5) is used solely for electric generation.
363-23 (c) Fees set by the board must be sufficient to:
363-24 (1) achieve water conservation, prevent waste of
363-25 water, serve as a disincentive to pumping groundwater, and
363-26 accomplish the purposes of this chapter, including making available
364-1 alternative water supplies; and
364-2 (2) enable the authority to meet operation and
364-3 maintenance expenses and pay the principal of and interest on debt
364-4 issued in connection with the exercise of the authority's general
364-5 powers and duties.
364-6 (d) The temporary board may set fees to pay for the initial
364-7 operation of the authority and the election of the initial
364-8 permanent board until the permanent board has been elected.
364-9 Sec. 265.017. CIVIL PENALTY; INJUNCTION. (a) A person who
364-10 violates a rule or order of the authority is subject to a civil
364-11 penalty of not less than $50 and not more than $5,000 for each
364-12 violation or each day of a continuing violation.
364-13 (b) The authority may bring an action to recover the penalty
364-14 in a district court in the county where the violation occurred.
364-15 The penalty shall be paid to the authority.
364-16 (c) The authority may bring an action for injunctive relief
364-17 in a district court in the county where a violation of an authority
364-18 rule or order occurs or is threatened to occur. The court may
364-19 grant to the authority, without bond or other undertaking, a
364-20 prohibitory or mandatory injunction that the facts warrant,
364-21 including a temporary restraining order, temporary injunction, or
364-22 permanent injunction.
364-23 (d) The authority may bring an action for a civil penalty
364-24 and injunctive relief in the same proceeding.
364-25 Sec. 265.018. WATER SUPPLY PLANS. The authority by rule
364-26 shall, as needed but not less frequently than every five years,
365-1 develop, prepare, revise, and adopt comprehensive water supply and
365-2 drought contingency plans for various areas of the authority. The
365-3 plans must:
365-4 (1) be consistent with regional planning; and
365-5 (2) include 10-year, 20-year, and 50-year projections
365-6 of water needs within the authority.
365-7 Sec. 265.019. ACQUISITION, CONSTRUCTION, AND OPERATION OF
365-8 SYSTEMS. (a) The authority may:
365-9 (1) acquire and provide by purchase, gift, or lease a
365-10 water treatment or water supply system inside or outside the
365-11 authority's boundaries;
365-12 (2) design, finance, or construct a water treatment or
365-13 water supply system and provide water services inside or outside
365-14 the authority's boundaries;
365-15 (3) operate, lease, or sell a water treatment or water
365-16 supply system the authority constructs or acquires; and
365-17 (4) contract with any person to operate or maintain a
365-18 water treatment or water supply system the person owns.
365-19 (b) The authority shall give persons outside the authority's
365-20 boundaries, including the City of Houston, the option to contract
365-21 for available excess capacity of the authority's water treatment or
365-22 water supply system or, before construction of a water treatment or
365-23 water supply system begins, for additional capacity of the system.
365-24 The authority must offer a contract that would enable the person to
365-25 pay for the excess capacity or additional capacity in accordance
365-26 with the person's pro rata share of the capital investment and
366-1 operational and maintenance costs for providing the excess capacity
366-2 or additional capacity.
366-3 Sec. 265.020. SALE OR REUSE OF WATER OR BY-PRODUCT. The
366-4 authority may store, sell, or reuse:
366-5 (1) water; or
366-6 (2) any by-product from the authority's operations.
366-7 Sec. 265.021. EMINENT DOMAIN. The authority may exercise
366-8 the power of eminent domain in the manner provided by Chapter 21,
366-9 Property Code, to acquire property of any kind to further
366-10 authorized purposes of the authority. The authority may not
366-11 exercise the power of eminent domain outside the boundaries of the
366-12 authority.
366-13 Sec. 265.022. CONTRACTS. (a) The authority may enter into
366-14 a contract with any person or legal entity regarding the
366-15 performance of any purpose or function of the authority, including
366-16 a contract to jointly construct, finance, own, or operate works,
366-17 improvements, facilities, plants, equipment, or appliances
366-18 necessary to accomplish a purpose or function of the authority. A
366-19 contract may be of unlimited duration.
366-20 (b) The authority may purchase an interest in a project used
366-21 for a purpose or function of the authority.
366-22 (c) The authority may contract for:
366-23 (1) the purchase or sale of water or water rights;
366-24 (2) the performance of activities within the powers of
366-25 the authority to promote the continuing and orderly development of
366-26 land and property in the authority through the purchase,
367-1 construction, or installation of works, improvements, facilities,
367-2 plants, equipment, or appliances so that, to the greatest extent
367-3 possible consistent with sound engineering practices and economic
367-4 feasibility, all the land and property in the authority may receive
367-5 services of the works, improvements, facilities, plants, equipment,
367-6 or appliances of the authority; or
367-7 (3) the construction, ownership, maintenance, or
367-8 operation of any works, improvements, facilities, plants,
367-9 equipment, or appliances of the authority or another person or
367-10 legal entity.
367-11 (d) The authority may purchase surplus property from the
367-12 state, the United States, or another public entity through a
367-13 negotiated contract without bids.
367-14 (e) An officer, agent, or employee of the authority who has
367-15 a financial interest in the contract of the type described by
367-16 Subsection (d) shall disclose the interest to the board before the
367-17 board votes on the acceptance of the contract.
367-18 Sec. 265.023. COOPERATION WITH AND ASSISTANCE OF OTHER
367-19 GOVERNMENTAL ENTITIES. (a) In implementing this chapter, the
367-20 board may cooperate with and request the assistance of the Texas
367-21 Water Development Board, the commission, the United States
367-22 Geological Survey, the subsidence district, other local
367-23 governments, and other agencies of the United States and the state.
367-24 (b) The subsidence district may enter into an interlocal
367-25 contract with the authority to carry out the authority's purposes
367-26 and may carry out the governmental functions and services specified
368-1 in the interlocal contract.
368-2 (c) The board shall coordinate with the City of Houston to
368-3 develop an interregional plan for a system to distribute treated
368-4 surface water in an economical and efficient manner.
368-5 Sec. 265.024. GIFTS AND GRANTS. The authority is authorized
368-6 to accept a gift or grant from money collected by the subsidence
368-7 district under Chapter 151 to fund a water treatment or water
368-8 supply system. The authorization provided by this section is in
368-9 addition to the authorization provided by Section 49.229.
368-10 Sec. 265.025. EXPENDITURES. (a) The authority's money may
368-11 be disbursed only by check, draft, order, or other instrument.
368-12 (b) Disbursements of the authority must be signed by at
368-13 least two directors, except that the board by resolution may allow
368-14 the general manager, treasurer, or bookkeeper or another employee
368-15 of the authority to sign disbursements.
368-16 (c) The board by resolution may allow disbursements to be
368-17 transferred by federal reserve wire system to accounts in the name
368-18 of the authority.
368-19 Sec. 265.026. TAXATION. The authority may not impose an ad
368-20 valorem tax.
368-21 Sec. 265.027. REVENUE NOTES. (a) The board, without an
368-22 election, may borrow money on negotiable notes of the authority to
368-23 be paid solely from the revenue derived from any legal source,
368-24 including:
368-25 (1) tolls, charges, and fees the authority imposes;
368-26 (2) the sale of water, water or sewer services, or any
369-1 other service or product of the authority;
369-2 (3) grants or gifts;
369-3 (4) the ownership and operation of all or a designated
369-4 part of the authority's works, improvements, facilities, plants, or
369-5 equipment; and
369-6 (5) contracts between the authority and any person,
369-7 including a local government.
369-8 (b) The notes may be first or subordinate lien notes at the
369-9 board's discretion. An obligation may not be a charge on the
369-10 property of the authority. An obligation may only be a charge on
369-11 revenue pledged for the payment of the obligation.
369-12 Sec. 265.028. BONDS. (a) To carry out a power or authority
369-13 conferred by this chapter, the authority may issue bonds secured by
369-14 all or part of the revenue derived from any source, including any
369-15 source described by Section 265.027(a).
369-16 (b) In issuing or securing a bond or note of the authority,
369-17 the authority may exercise any power of an issuer under Chapter
369-18 1371, Government Code.
369-19 (c) The authority may conduct a public, private, or
369-20 negotiated sale of the bonds.
369-21 (d) The authority's bonds must:
369-22 (1) be authorized by board resolution;
369-23 (2) be issued in the authority's name;
369-24 (3) be signed by the president or vice president of
369-25 the board, which may be accomplished by facsimile signature;
369-26 (4) be attested by the secretary of the board, which
370-1 may be accomplished by facsimile signature; and
370-2 (5) bear the authority's seal or facsimile seal.
370-3 (e) An authority bond may be secured by a trust indenture
370-4 with a corporate trustee.
370-5 (f) The authority may issue bonds in more than one series as
370-6 required for carrying out the purposes of this chapter. In issuing
370-7 bonds secured by revenue of the authority, the authority may
370-8 reserve the right to issue additional bonds secured by the
370-9 authority's revenue that are on a parity with or are senior or
370-10 subordinate to the bonds issued earlier.
370-11 (g) The resolution authorizing the bonds or the trust
370-12 indenture securing the bonds may specify additional provisions that
370-13 constitute a contract between the authority and its bondholders.
370-14 The board may provide:
370-15 (1) for additional bond provisions; and
370-16 (2) for a corporate trustee or receiver to take
370-17 possession of the authority's facilities if the authority defaults.
370-18 (h) Section 49.181 does not apply to bonds or notes issued
370-19 by the authority.
370-20 Sec. 265.029. REFUNDING BONDS. The provisions of this
370-21 chapter that apply to the authority's issuance of other bonds,
370-22 their security, and the remedies of the holders apply to refunding
370-23 bonds.
370-24 Sec. 265.030. APPROVAL AND REGISTRATION OF BONDS. After the
370-25 authority authorizes bonds, the authority shall submit the bonds
370-26 and the record relating to their issuance to the attorney general
371-1 for approval. If the bonds are secured by a pledge of the proceeds
371-2 of a contract between the authority and a municipality or other
371-3 governmental agency, authority, or district, the authority shall
371-4 submit to the attorney general a copy of the contract and the
371-5 proceedings of the municipality or other governmental agency,
371-6 authority, or district authorizing the contract. If the attorney
371-7 general finds that the bonds have been authorized and each contract
371-8 has been made in accordance with the constitution and laws of the
371-9 state, the attorney general shall approve the bonds and contracts.
371-10 On approval, the bonds shall be registered by the comptroller.
371-11 Sec. 265.031. FUNDING BY OTHER DISTRICTS. (a) The
371-12 authority shall develop a procedure for cooperatively funding a
371-13 project of the authority with money from other districts inside the
371-14 authority's boundaries if the authority project fulfills a
371-15 governmental purpose of both the authority and the other districts.
371-16 (b) Not later than the 90th day before the date the
371-17 authority issues bonds, other than refunding bonds, to finance a
371-18 project, the authority shall provide written notice of the
371-19 authority's intention to issue the bonds to each district inside
371-20 the authority's boundaries that may benefit from or be affected by
371-21 the project. The notice must include the value of the bonds to be
371-22 issued, a description of the project the bonds would finance, and a
371-23 schedule of the portion of the project costs financed by the bonds
371-24 that may be allocated to each district benefited or affected. The
371-25 schedule must be prepared by means of a formula certified by the
371-26 authority's engineer.
372-1 (c) A district may enter into a contract with the authority
372-2 for the district to finance a portion of the proposed project with
372-3 the district's resources instead of using proceeds from bonds of
372-4 the authority for that purpose. The contract must be executed
372-5 before the authority issues the bonds. As provided in the
372-6 contract, the authority must:
372-7 (1) reduce the value of the bond issuance to the
372-8 degree that the district provides project funding; and
372-9 (2) credit the district for its contribution to the
372-10 project financing and adjust the allocation of revenue pledged to
372-11 the payment of the bonds so that the authority avoids using, to a
372-12 degree commensurate with the contribution, revenue from the
372-13 district to service the authority's bond debt or interest.
372-14 CHAPTER 266. NORTH TEXAS MUNICIPAL WATER DISTRICT
372-15 Sec. 266.001. CREATION. (a) A conservation and reclamation
372-16 district to be known as the "North Texas Municipal Water District"
372-17 is created. The district is a governmental agency and a body
372-18 politic and corporate.
372-19 (b) The district is created under and is essential to
372-20 accomplish the purposes of Section 59, Article XVI, Texas
372-21 Constitution.
372-22 Sec. 266.002. DEFINITIONS. In this chapter:
372-23 (1) "Basic service area" means the geographic area
372-24 contained within the corporate limits of the member cities and
372-25 areas that are being served at the time of the creation of the
372-26 district or that may later be served by the member cities' primary
373-1 water system.
373-2 (2) "Board" means the board of directors of the
373-3 district.
373-4 (3) "Customer" means users of district water other
373-5 than member cities.
373-6 (4) "Director" means a member of the board.
373-7 (5) "District" means the North Texas Municipal Water
373-8 District and any other public body that succeeds to the property
373-9 and principal rights, powers, and obligations of the North Texas
373-10 Municipal Water District.
373-11 (6) "Enlarged Lavon water" means the water that the
373-12 district holds on May 5, 1969, or secures in the future, under or
373-13 through a permit from the commission to store and divert from Lavon
373-14 Lake on the East Fork of the Trinity River, as modified.
373-15 (7) "Interim basis" means only until such time as the
373-16 district needs the water for the use and benefit of its service
373-17 area, not permanently, but only during such times as a surplus of
373-18 dependable safe yield is present in each classification of water.
373-19 (8) "Member cities" means the cities of Garland,
373-20 Princeton, Plano, Mesquite, Wylie, Rockwall, Farmersville,
373-21 McKinney, Forney, Royse City, Allen, and Richardson and any other
373-22 city that may legally become a part of the district.
373-23 (9) "Original Lavon water" means the water for which
373-24 the district holds a permit from the commission to store and divert
373-25 from Lavon Lake on the East Fork of the Trinity River, as
373-26 originally constructed.
374-1 (10) "Other service area" means the geographic area in
374-2 the state that is outside the service area described by Subdivision
374-3 (14).
374-4 (11) "Other water" means any water that the district
374-5 secures under or through a permit from the commission or its
374-6 predecessor agency to store and divert, other than Lavon water or
374-7 enlarged Lavon water.
374-8 (12) "Primary right" means the superior right to
374-9 permanent water and to the quantity, quality, and price of the
374-10 water.
374-11 (13) "Prospective customer" means any person, firm,
374-12 corporation, company, partnership, association, or body corporate
374-13 or politic that evidences an interest in securing water from the
374-14 district.
374-15 (14) "Service area" means the geographic area
374-16 contained within the watershed of the East Fork of the Trinity
374-17 River, any area contained within the corporate limits of the member
374-18 cities, and the areas served by the member cities' water system.
374-19 Sec. 266.003. TERRITORY. (a) The district comprises all
374-20 the territory that was contained within the cities of Garland,
374-21 Princeton, Plano, Mesquite, Wylie, Rockwall, Farmersville,
374-22 McKinney, Forney, and Royse City on March 1, 1951, and any
374-23 territory annexed after that date. A defect in the definition of
374-24 the boundaries of any of those cities or in any past or future
374-25 proceedings for the annexation of territory to any of those cities
374-26 does not affect the validity of the district or any of its powers
375-1 or duties.
375-2 (b) The legislature finds and determines that all the land
375-3 included in the district will benefit from the improvements to be
375-4 acquired and constructed by the district.
375-5 Sec. 266.004. BOARD OF DIRECTORS. (a) All powers of the
375-6 district shall be exercised by a board of directors. The directors
375-7 shall be appointed by majority vote of the governing body of each
375-8 of the member cities contained in the district.
375-9 (b) In May of each year, the governing body of each member
375-10 city in the district with a population of 5,000 or more shall
375-11 appoint one director for a two-year term beginning June 1 of that
375-12 year.
375-13 (c) In May of each even-numbered year, the governing body of
375-14 each member city in the district with a population of less than
375-15 5,000 shall appoint one director for a two-year term beginning
375-16 June 1 of that year.
375-17 (d) Each director serves for a term of office as provided by
375-18 this section and until a successor is appointed and has qualified.
375-19 (e) A director must reside in and own taxable property in
375-20 the city from which the director is appointed. A member of a
375-21 governing body of a city or an employee of a city is not eligible
375-22 to serve as a director.
375-23 (f) A director shall subscribe the constitutional oath of
375-24 office and shall give bond for the faithful performance of the
375-25 director's duties in the amount of $5,000, the cost of which shall
375-26 be paid by the district.
376-1 (g) A majority of the members of the board constitutes a
376-2 quorum.
376-3 Sec. 266.005. DIRECTOR FEES. (a) Each director is entitled
376-4 to receive a fee of $50 for attending each meeting of the board and
376-5 $20 per day for each day devoted to the business of the district
376-6 other than attending board meetings, but not more than $1,200 shall
376-7 be paid to any director in one calendar year.
376-8 (b) Each director is entitled to reimbursement for actual
376-9 expenses incurred in attending to district business if the service
376-10 and expense are expressly approved by the board.
376-11 Sec. 266.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
376-12 shall elect from among its members a president and a vice president
376-13 of the district and other officers as the board considers
376-14 necessary.
376-15 (b) The president is the chief executive officer of the
376-16 district and the presiding officer of the board and has the same
376-17 right to vote as any other director.
376-18 (c) The vice president shall perform all duties and exercise
376-19 all powers conferred by this chapter on the president when the
376-20 president is absent or fails or declines to act.
376-21 (d) The board shall appoint a secretary and a treasurer, who
376-22 may or may not be members of the board, and may combine those
376-23 offices. The treasurer shall give bond in an amount required by
376-24 the board but not less than $100,000. The bond shall be
376-25 conditioned on the treasurer faithfully accounting for all money
376-26 that comes into the treasurer's custody as treasurer of the
377-1 district.
377-2 (e) The board shall be responsible for the management of all
377-3 the affairs of the district. The district shall employ or contract
377-4 with all persons or entities, public or private, deemed necessary
377-5 by the board for the conduct of the affairs of the district,
377-6 including, but not limited to, engineers, attorneys, financial
377-7 advisors, operators, bookkeepers, tax assessors and collectors,
377-8 auditors, and other employees. The board may delegate to a general
377-9 manager or executive director full authority to manage and operate
377-10 the affairs of the district, including the authority granted in
377-11 this subsection. The board shall appoint all necessary engineers,
377-12 attorneys, and other employees.
377-13 (f) The board shall adopt a seal for the district.
377-14 Sec. 266.007. ANNEXATION OF TERRITORY. (a) Other territory
377-15 may be annexed to the district as provided by this section.
377-16 (b) A petition for annexation must:
377-17 (1) be signed by 50 or a majority of the qualified
377-18 voters of the territory to be annexed who own taxable property in
377-19 the territory;
377-20 (2) be filed with the board; and
377-21 (3) describe the territory to be annexed by metes and
377-22 bounds or otherwise unless the territory is the same as that
377-23 contained in a city or town, in which case it will be sufficient to
377-24 state that the territory to be annexed is that contained within the
377-25 city or town.
377-26 (c) If the board finds that the petition complies with and
378-1 is signed by the number of qualified persons required under
378-2 Subsection (b), that the annexation would be in the interest of the
378-3 territory to be annexed and the district, and that the district
378-4 will be able to supply water to the territory to be annexed, the
378-5 board shall adopt a resolution stating the conditions, if any,
378-6 under which the territory may be annexed and requesting the
378-7 commission or its successor agency to annex the territory to the
378-8 district. A certified copy of the resolution and the petition
378-9 shall be filed with the commission.
378-10 (d) The commission shall adopt a resolution declaring its
378-11 intention to call an election in the territory to be annexed for
378-12 the purpose of submitting the proposition of whether the territory
378-13 shall be annexed to the district. The commission shall set a time
378-14 and place for a hearing to be held by the commission on the
378-15 question of whether the territory to be annexed will benefit from
378-16 the improvements, works, and facilities then owned or operated or
378-17 contemplated to be owned or operated by the district. Railroad
378-18 right-of-way or transmission lines and other property of electric
378-19 and gas utilities that are not situated within the defined limits
378-20 of an incorporated city or town will not benefit from the
378-21 improvements, works, and facilities that the district is authorized
378-22 to construct. Railroad right-of-way or transmission lines and
378-23 other property of electric and gas utilities may not be annexed to
378-24 the district unless the right-of-way and transmission lines and
378-25 other property of electric and gas utilities are contained within
378-26 the limits of an incorporated city or town that has been annexed to
379-1 the district.
379-2 (e) Notice of the adoption of the resolution stating the
379-3 time and place of the hearing addressed to the citizens and owners
379-4 of property in the territory to be annexed shall be published one
379-5 time in a newspaper designated by the commission at least 10 days
379-6 before the date of the hearing. The notice shall describe the
379-7 territory in the same manner as required or permitted by the
379-8 petition.
379-9 (f) All interested persons may appear at the hearing and
379-10 offer evidence for or against the intended annexation. The hearing
379-11 may proceed in the order and under the rules prescribed by the
379-12 commission and may be recessed from time to time. If, at the
379-13 conclusion of the hearing, the commission finds that all the lands
379-14 in the territory to be annexed will benefit from the present or
379-15 contemplated improvements, works, or facilities of the district,
379-16 the commission shall adopt a resolution calling an election in the
379-17 territory to be annexed, stating the date and the place or places
379-18 for holding the election, and appointing a presiding judge for each
379-19 voting place, who shall appoint the necessary assistant judges and
379-20 clerks to assist in holding the election.
379-21 (g) Notice of the election, stating the date and places for
379-22 holding the election, the proposition to be voted on, and the
379-23 conditions under which the territory may be annexed, or making
379-24 reference to the resolution of the board for that purpose, shall be
379-25 published one time in a newspaper designated by the commission at
379-26 least 10 days before the date set for the election.
380-1 (h) Only qualified electors who reside in the territory to
380-2 be annexed are qualified to vote in the election. Returns of the
380-3 election shall be made to the commission.
380-4 (i) The commission shall canvass the returns of the election
380-5 and adopt a resolution declaring the results. If the resolution
380-6 shows that a majority of the votes cast are in favor of annexation,
380-7 the commission shall enter an order annexing the territory to the
380-8 district, and the annexation shall be incontestable except in the
380-9 manner and within the time for contesting elections under the
380-10 Election Code. A certified copy of the order shall be recorded in
380-11 the deed records of the county in which the territory is situated.
380-12 (j) In calling the election on the proposition for the
380-13 annexation of territory, the commission may include as a part of
380-14 the same proposition a proposition for the assumption of that
380-15 territory's part of the tax-supported bonds of the district then
380-16 outstanding and those voted but not yet sold and for the levy of an
380-17 ad valorem tax on taxable property in the territory to be annexed
380-18 along with the tax in the rest of the district for the payment of
380-19 the bonds.
380-20 (k) After territory is added to the district, the board may
380-21 call an election over the entire district for the purpose of
380-22 determining whether the entire district as enlarged shall assume
380-23 the tax-supported bonds then outstanding and those voted but not
380-24 yet sold and whether an ad valorem tax shall be levied on all
380-25 taxable property within the district as enlarged for the payment of
380-26 the bonds, unless the proposition is voted along with the
381-1 annexation election and becomes lawfully binding on the territory
381-2 annexed. The election shall be called and held in the same manner
381-3 as elections for the issuance of bonds as provided by this chapter.
381-4 (l) If no newspaper is published in the territory to be
381-5 annexed, notices required by this section shall be posted in three
381-6 public places in the territory.
381-7 Sec. 266.008. APPOINTMENT OF DIRECTORS IN ANNEXED
381-8 TERRITORIES. (a) If the territory of a city with a population of
381-9 5,000 or more is annexed to the district, the governing body of the
381-10 city shall appoint one director for a term ending the following May
381-11 31 and one director for a term ending one year after the following
381-12 May 31. In May of each year, the governing body of the city shall
381-13 appoint one director for a two-year term as provided by this
381-14 chapter for cities originally included in the district.
381-15 (b) If a city whose territory is annexed to the district has
381-16 a population of less than 5,000, the governing body of the city
381-17 shall appoint one director whose term shall expire the following
381-18 May 31 and in May of each second year thereafter shall appoint one
381-19 director for a two-year term. If the city later attains a
381-20 population of 5,000 or more, it shall be entitled to two directors
381-21 to be appointed as provided by this section.
381-22 Sec. 266.009. USE OF CERTAIN WATERS AND FACILITIES.
381-23 (a) The district may acquire any and all rights in and to storage
381-24 and storage capacity in Lavon Lake as constructed at the time of
381-25 the creation of the district or later modified, and in any other
381-26 reservoir or from any other source, and the right to take water
382-1 from the reservoirs or other sources after obtaining a permit from
382-2 the commission, by complying with the provisions of this code that
382-3 are applicable to such rights and pursuant to any contract or
382-4 contracts the district may make with the United States government,
382-5 any of its agencies, or any other agency in reference to those
382-6 rights, and the district may develop or otherwise acquire, with the
382-7 consent of owners of the surface, underground sources of water.
382-8 (b) The district may construct or otherwise acquire all
382-9 works, plants, and other facilities necessary or useful for the
382-10 purpose of storing, impounding, retaining, diverting, or processing
382-11 the water described by Subsection (a) and transporting it to cities
382-12 and other areas for municipal, domestic, and industrial purposes.
382-13 (c) To the extent permissible under a contract with the
382-14 United States government, any of its agencies, and any other
382-15 agency, the district may dispose of surplus water under its control
382-16 by contract with the commission or any other state or local agency
382-17 for irrigation or beneficial purposes.
382-18 (d) Any works for the diversion of water from the impounding
382-19 dams may not be constructed until the plans for the works are
382-20 approved by the commission. The district shall apply to and obtain
382-21 authority from the commission to appropriate the waters.
382-22 (e) The district may not be compelled to supply water for
382-23 use outside its service area except by order of the commission in
382-24 accordance with Section 11.041.
382-25 (f) The basic service area has the primary right to water in
382-26 each classification that the district secures under permit from the
383-1 commission.
383-2 (g) This chapter does not compel any customer or prospective
383-3 customer to secure water from the district except pursuant to
383-4 contracts voluntarily executed.
383-5 (h) This chapter does not alter any outstanding permit,
383-6 contract, or other obligation.
383-7 Sec. 266.010. EMINENT DOMAIN. (a) For the purpose of
383-8 carrying out any power or authority conferred by this chapter, the
383-9 district may acquire land and easements within and outside the
383-10 district, including land above the probable high-water line around
383-11 reservoirs, by condemnation in the manner provided by Chapter 21,
383-12 Property Code.
383-13 (b) The district is a municipal corporation within the
383-14 meaning of Section 21.021(c), Property Code.
383-15 (c) The amount and character of interest in land and
383-16 easements acquired under this section shall be determined by the
383-17 board.
383-18 (d) If the district, in the exercise of the power of eminent
383-19 domain or police power or any other power granted under this
383-20 chapter makes necessary the relocation, raising, lowering,
383-21 rerouting, changing the grade, or altering the construction of any
383-22 railroad, electric transmission, telegraph or telephone lines,
383-23 properties, and facilities, or pipeline, all such relocation,
383-24 raising, lowering, rerouting, changing of grade, or alteration of
383-25 construction shall be accomplished at the sole expense of the
383-26 district. In this subsection, "sole expense" means the actual cost
384-1 of the relocation, raising, lowering, rerouting, change in grade,
384-2 or alteration of construction in providing comparable replacement
384-3 without enhancement of the facilities, after deducting from the
384-4 cost the net salvage value of the old facility.
384-5 Sec. 266.011. NOTICE REQUIRED FOR CERTAIN CONTRACTS. (a) A
384-6 construction contract requiring an expenditure of more than $25,000
384-7 shall be made only after publication of a notice to bidders once
384-8 each week for two weeks before the awarding of the contract.
384-9 (b) The notice required under this section is sufficient if
384-10 it states the time and place at which the bids will be opened, the
384-11 general nature of the work to be done or the material, equipment,
384-12 or supplies to be purchased and states where and under what terms
384-13 copies of the plans and specifications may be obtained.
384-14 (c) The publication shall be in a newspaper published in the
384-15 district and designated by the board.
384-16 Sec. 266.012. BONDS. (a) For the purpose of providing a
384-17 source of water supply for cities and other users for municipal,
384-18 domestic, and industrial purposes as authorized by this chapter and
384-19 for the purpose of carrying out any other power or authority
384-20 conferred by this chapter, the district may issue negotiable bonds
384-21 payable from the revenues or taxes, or both revenues and taxes, of
384-22 the district as pledged by resolution of the board. Pending the
384-23 issuance of definitive bonds, the board may authorize the delivery
384-24 of negotiable interim bonds or notes that are eligible for exchange
384-25 or substitution by the definitive bonds.
384-26 (b) Bonds must be authorized by resolution of the board and
385-1 shall be issued in the name of the district, signed by the
385-2 president or vice president, and attested by the secretary and
385-3 shall bear the seal of the district.
385-4 (c) Bonds must mature serially or otherwise in not to exceed
385-5 40 years and may be sold at a price and under terms determined by
385-6 the board to be the most advantageous reasonably obtainable,
385-7 provided that the interest cost to the district, calculated by the
385-8 use of standard bond interest tables currently in use by insurance
385-9 companies and investment houses, does not exceed six percent per
385-10 year. Within the discretion of the board, bonds may be made
385-11 callable prior to maturity at times and prices prescribed in the
385-12 resolution authorizing the bonds and may be made registrable as to
385-13 principal or as to both principal and interest.
385-14 (d) Bonds may be issued in more than one series and from
385-15 time to time as required for carrying out the purposes of this
385-16 chapter.
385-17 (e) Bonds may be secured by a pledge of all or part of the
385-18 net revenues of the district, of the net revenues of one or more
385-19 contracts made before or after the bonds are issued, or of other
385-20 revenues specified by resolution of the board. A pledge may
385-21 reserve the right, under conditions specified in the pledge, to
385-22 issue additional bonds that will be on a parity with or subordinate
385-23 to the bonds being issued. In this subsection, "net revenues"
385-24 means the gross revenues of the district less the amount necessary
385-25 to pay the cost of maintaining and operating the district and its
385-26 properties.
386-1 (f) For the purposes stated in Subsection (a), the district
386-2 may issue bonds payable from ad valorem taxes to be levied on all
386-3 taxable property in the district or may issue bonds secured by and
386-4 payable from both the taxes and the revenues of the district,
386-5 subject to the conditions prescribed in Sections 266.015(a), (b),
386-6 and (c). The board shall levy a tax sufficient to pay bonds issued
386-7 payable wholly or partially from ad valorem taxes and the interest
386-8 on the bonds as the bonds and interest become due. The rate of the
386-9 tax for any year may be set after giving consideration to the money
386-10 received from the pledged revenues available for payment of
386-11 principal and interest to the extent and in the manner permitted by
386-12 the resolution authorizing the issuance of the bonds.
386-13 (g) If bonds payable wholly from revenues are issued, the
386-14 board shall set, and from time to time revise, rates of
386-15 compensation for water sold and services rendered by the district
386-16 that will be sufficient to pay the expense of operating and
386-17 maintaining the facilities of the district and to pay bonds as they
386-18 mature and the interest as it accrues and to maintain the reserve
386-19 and other funds as provided in the resolution authorizing the
386-20 bonds. If bonds payable partially from revenues are issued, the
386-21 board shall set, and from time to time revise, rates of
386-22 compensation for water sold and services rendered by the district
386-23 that will be sufficient to assure compliance with the resolution
386-24 authorizing the bonds.
386-25 (h) From the proceeds of the sale of the bonds, the district
386-26 may set aside an amount for the payment of interest expected to
387-1 accrue during construction and for a reserve interest and sinking
387-2 fund, and the set-aside provision may be made in the resolution
387-3 authorizing the bonds. Proceeds from the sale of the bonds may
387-4 also be used for the payment of all expenses necessarily incurred
387-5 in accomplishing the purposes for which the district is created,
387-6 including expenses of issuing and selling the bonds.
387-7 (i) In the event of a default or a threatened default in the
387-8 payment of principal of or interest on bonds payable wholly or
387-9 partially from revenues of the district, any court of competent
387-10 jurisdiction may, on petition of the holders of 25 percent of the
387-11 outstanding bonds of the issue in default or threatened with
387-12 default, appoint a receiver with authority to collect and receive
387-13 all income of the district except taxes, employ and discharge
387-14 agents and employees of the district, take charge of the district's
387-15 funds on hand (except funds received from taxes, unless
387-16 commingled), and manage the proprietary affairs of the district
387-17 without consent or hindrance by the directors. The receiver may
387-18 also be authorized to sell or make contracts for the sale of water
387-19 or renew the contracts with the approval of the court appointing
387-20 the receiver. The court may vest the receiver with other powers
387-21 and duties that the court finds necessary for the protection of the
387-22 holders of the bonds.
387-23 Sec. 266.013. REFUNDING BONDS. (a) The district may issue
387-24 refunding bonds for the purpose of refunding any outstanding bonds
387-25 authorized by this chapter and interest on the bonds. Refunding
387-26 bonds may be issued to refund more than one series of outstanding
388-1 bonds and may combine the pledges for the outstanding bonds for the
388-2 security of the refunding bonds, and the refunding bonds may be
388-3 secured by other or additional revenues.
388-4 (b) The provisions of this chapter regarding the issuance by
388-5 the district of other bonds, their approval by the attorney
388-6 general, and the remedies of the holders are applicable to
388-7 refunding bonds. Refunding bonds shall be registered by the
388-8 comptroller on surrender and cancellation of the bonds to be
388-9 refunded, but in lieu of that process, the resolution authorizing
388-10 the issuance of the refunding bonds may provide that the refunding
388-11 bonds shall be sold and the proceeds of the sale deposited in the
388-12 bank where the original bonds are payable, in which case the
388-13 refunding bonds may be issued in an amount sufficient to pay the
388-14 interest on the original bonds to their option date or maturity
388-15 date, and the comptroller shall register the refunding bonds
388-16 without concurrent surrender and cancellation of the original
388-17 bonds.
388-18 Sec. 266.014. TRUST INDENTURE; DEED OF TRUST. (a) Bonds,
388-19 including refunding bonds, authorized by this chapter that are not
388-20 payable wholly from ad valorem taxes may be additionally secured by
388-21 a trust indenture under which the trustee may be a bank having
388-22 trust powers situated either within or outside the state. Bonds
388-23 may, in the discretion of the board, be additionally secured by a
388-24 deed of trust lien on physical properties of the district and all
388-25 franchises, easements, and water rights and appropriation permits,
388-26 leases, and contracts and all rights appurtenant to the properties,
389-1 vesting in the trustee power to sell the properties for payment of
389-2 the indebtedness, power to operate the properties, and all other
389-3 powers and authority for the further security of the bonds.
389-4 (b) The trust indenture, regardless of the existence of a
389-5 deed of trust lien, may contain any provisions prescribed by the
389-6 board for the security of the bonds and the preservation of the
389-7 trust estate and may make provision for amendment or modification
389-8 thereof and the issuance of bonds to replace lost or mutilated
389-9 bonds. A purchaser under a sale under the deed of trust lien,
389-10 where one is given, shall be the owner of the properties,
389-11 facilities, and rights purchased and shall have the right to
389-12 maintain and operate the properties, facilities, and rights.
389-13 Sec. 266.015. ELECTION FOR TAX-FUNDED BONDS. (a) Bonds
389-14 payable wholly or partially from ad valorem taxes, except refunding
389-15 bonds, shall not be issued unless authorized by an election at
389-16 which only the qualified voters who reside in the district shall be
389-17 qualified to vote and unless a majority of the votes cast is in
389-18 favor of the issuance of the bonds.
389-19 (b) Before calling an election for the issuance of bonds
389-20 secured either wholly or partially by a pledge of ad valorem taxes,
389-21 the board shall publish, in the manner prescribed by this section,
389-22 a summary of the improvements to be financed with the proceeds of
389-23 the bonds to be issued. If the district has not provided
389-24 facilities for delivering water to a city within the district and
389-25 if the summary of improvements does not include provision for
389-26 delivering water to the city, the district shall publish in the
390-1 city notice of its intention, on a date specified in the notice, to
390-2 adopt a resolution ordering an election on the issuance of bonds
390-3 wholly or partly secured by a pledge of ad valorem taxes and
390-4 containing the summary of the proposed improvements. The notice
390-5 shall be published at least once in a newspaper published in or
390-6 having general circulation in the city. The date of publication
390-7 shall be at least 14 days before the date on which the district
390-8 intends to adopt a resolution ordering the election. The district
390-9 shall also mail a copy of the notice to the mayor of the city at
390-10 least 14 days before the date designated for ordering the election.
390-11 Before the date designated for ordering the election, the governing
390-12 body of the notified city may adopt a resolution stating that the
390-13 district has not provided facilities for delivering water to the
390-14 city and does not propose to provide the necessary facilities with
390-15 the proceeds from the proposed tax-supported bonds and on a
390-16 reasonable cost basis; stating that it is in the best interests of
390-17 the people of the city that the city be eliminated from the
390-18 district for all purposes; and seeking withdrawal from the
390-19 district. If, before the date designated for ordering the
390-20 election, a certified copy of the resolution is delivered to the
390-21 district and to the commission, the district shall not proceed with
390-22 the election until the commission has acted finally on the request
390-23 for withdrawal from the district.
390-24 (c) On receipt of the certified copy of the resolution from
390-25 a city requesting withdrawal from the district the commission shall
390-26 set a date for a hearing on the request, giving written notice of
391-1 the hearing to both the city and the district. If at the hearing
391-2 the commission finds that no facilities have been provided to the
391-3 city and that none will be provided from the proceeds of the
391-4 proposed tax-supported bonds for the delivery of water to the city
391-5 on a reasonable cost basis, the commission shall enter an order
391-6 eliminating the city from the district. In lieu of a hearing the
391-7 district may file with the commission a consent to the elimination
391-8 of the territory. However, if the commission finds that facilities
391-9 are available or will be provided from the proceeds of the proposed
391-10 bonds on a reasonable cost basis, the commission shall enter an
391-11 order denying the request for withdrawal. After the commission
391-12 enters the order, the district may order an election with the city
391-13 either eliminated or retained in the boundaries of the district as
391-14 prescribed in the order. Bonds not payable wholly or partially
391-15 from ad valorem taxes may be issued without an election.
391-16 (d) An election for the issuance of bonds payable wholly or
391-17 partially from ad valorem taxes may be called by the board without
391-18 a petition. The resolution calling the election shall specify the
391-19 time and places for holding the election, the purpose for which the
391-20 bonds are to be issued, the maximum amount of the bonds, the
391-21 maximum maturity of the bonds, the form of the ballot, and the
391-22 presiding judge for each voting place. The presiding judge serving
391-23 at each voting place shall appoint one assistant judge and at least
391-24 two clerks to assist in holding the election. Notice of the
391-25 election shall be given by publishing a substantial copy of the
391-26 resolution in one newspaper published in each city contained in the
392-1 district for two consecutive weeks. The first publication shall be
392-2 at least 21 days before the date of the election. If a newspaper
392-3 is not published in a city, notice shall be given by posting a copy
392-4 of the resolution in three public places.
392-5 (e) The returns of the election shall be made to and
392-6 canvassed by the board.
392-7 (f) The Election Code is applicable to elections held under
392-8 this section except as otherwise provided by this chapter.
392-9 Sec. 266.016. EXAMINATION BY ATTORNEY GENERAL. After any
392-10 bonds, including refunding bonds, are authorized by the district,
392-11 the bonds and the record relating to their issuance shall be
392-12 submitted to the attorney general for examination as to the
392-13 validity of the bonds. If the bonds recite that they are secured
392-14 by a pledge of the proceeds of a contract previously made between
392-15 the district and any city or other governmental agency or district,
392-16 a copy of the contract and the proceedings of the city or other
392-17 governmental agency or district authorizing the contract shall also
392-18 be submitted to the attorney general. If the bonds have been
392-19 authorized and the contracts have been made in accordance with the
392-20 constitution and laws of the state, the attorney general shall
392-21 approve the bonds and the contracts, and the bonds then shall be
392-22 registered by the comptroller. After approval and registration,
392-23 the bonds and the contracts, if any, are valid and binding and are
392-24 incontestable for any cause.
392-25 Sec. 266.017. CONTRACTS WITH CITIES AND OTHERS. The
392-26 district may enter into contracts with cities and others for
393-1 supplying water to them. The district may also contract with a
393-2 city for the rental or leasing of, or for the operation of, the
393-3 water production, water supply, and water filtration or
393-4 purification and water supply facilities of the city for such
393-5 consideration as the district and the city may agree. The contract
393-6 may be on such terms and for such period as the parties may agree
393-7 and may provide that it shall continue in effect until bonds
393-8 specified in the contract and refunding bonds issued in lieu of
393-9 such bonds are paid.
393-10 Sec. 266.018. DISTRICT DEPOSITORY. (a) The board shall
393-11 designate one or more banks within the district to serve as
393-12 depository for the funds of the district. All funds of the
393-13 district shall be deposited in the depository bank or banks, except
393-14 that funds pledged to pay bonds may be deposited with the trustee
393-15 bank named in the trust agreement and except that funds shall be
393-16 remitted to the bank of payment for the payment of principal of and
393-17 interest on bonds. To the extent that funds in the depository
393-18 banks and the trustee bank are not insured by the Federal Deposit
393-19 Insurance Corporation the funds shall be secured in the manner
393-20 provided by law for the security of county funds.
393-21 (b) Before designating a depository bank or banks, the board
393-22 shall issue a notice stating the time and place when and where the
393-23 board will meet to designate the depository or depositories and
393-24 inviting the banks in the district to submit applications to be
393-25 designated depositories. The notice shall be published one time in
393-26 a newspaper or newspapers published in the district and specified
394-1 by the board. The term of service for depositories shall be
394-2 prescribed by the board.
394-3 (c) At the time stated in the notice, the board shall
394-4 consider the applications and the management and condition of the
394-5 banks filing them and shall designate as depositories the bank or
394-6 banks which offer the most favorable terms and conditions for the
394-7 handling of the funds of the district and which the board finds
394-8 have proper management and are in condition to warrant handling of
394-9 district funds. Membership on the board of an officer or director
394-10 of a bank shall not disqualify the bank from being designated as a
394-11 depository.
394-12 (d) If no applications are received by the time stated in
394-13 the notice, the board shall designate a bank or banks within or
394-14 outside the district on terms and conditions it determines
394-15 advantageous to the district.
394-16 Sec. 266.019. WATER APPROPRIATION PERMITS; ACQUISITION OF
394-17 WATER. The district may acquire water appropriation permits
394-18 directly from the commission or from owners of permits. The
394-19 district may purchase water or a water supply from any person,
394-20 firm, corporation, or public agency or from the United States
394-21 government or any of its agencies.
394-22 Sec. 266.020. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
394-23 DEPOSITS. All bonds of the district are legal and authorized
394-24 investments for banks, savings banks, trust companies, building and
394-25 loan associations, savings and loan associations, and insurance
394-26 companies. The bonds are eligible to secure the deposit of all
395-1 public funds of the state and all public funds of cities, towns,
395-2 villages, counties, school districts, or other political
395-3 corporations or subdivisions of the state. The bonds are lawful
395-4 and sufficient security for such deposits to the extent of their
395-5 value when accompanied by all unmatured coupons.
395-6 Sec. 266.021. BONDS EXEMPT FROM TAXATION. The
395-7 accomplishment of the purposes stated in this chapter is for the
395-8 benefit of the people of this state and for the improvement of
395-9 their properties and industries, and the district, in carrying out
395-10 the purposes of this chapter, will be performing an essential
395-11 public function under Section 59, Article XVI, Texas Constitution.
395-12 The district shall not be required to pay any tax or assessment on
395-13 a project or any part of a project under this chapter, and the
395-14 bonds issued under this chapter and the transfer of and income from
395-15 the bonds, including profits made on the sale of the bonds, shall
395-16 at all times be free from taxation within the state.
395-17 Sec. 266.022. TAX ROLLS. (a) The tax rolls of the cities
395-18 situated within the district as created and within annexed
395-19 territory shall constitute the tax rolls of the district until
395-20 assessments and tax rolls are made by the district.
395-21 (b) Before the sale and delivery of district bonds that are
395-22 payable wholly or partially from ad valorem taxes, the board shall
395-23 appoint a tax assessor and collector and a board of equalization
395-24 and shall cause taxes to be assessed, valuations to be equalized,
395-25 and tax rolls to be prepared. General laws applicable to water
395-26 control and improvement districts with reference to tax assessors
396-1 and collectors, boards of equalization, tax rolls, and the levy and
396-2 collection of taxes and delinquent taxes shall be applicable to the
396-3 district, except that the board of equalization, which is to be
396-4 appointed each year by the board, shall consist of one member
396-5 residing in each city contained in the district.
396-6 Sec. 266.023. ADOPTION OF RULES AND REGULATIONS. (a) The
396-7 board may adopt and promulgate all reasonable rules and regulations
396-8 to secure, maintain, and preserve the sanitary condition of all
396-9 water in and to flow into any reservoir owned by the district, or
396-10 which it may control by contract or otherwise, to prevent the waste
396-11 or unauthorized use of water, and to regulate residence, hunting,
396-12 fishing, boating, and camping, and all recreational and business
396-13 privileges, along or around any reservoir or any body of land or
396-14 easement owned or controlled by the district.
396-15 (b) The district may prescribe a reasonable penalty for the
396-16 breach of a rule or regulation of the district, which penalty shall
396-17 not exceed a fine of more than $200 or imprisonment for not more
396-18 than 30 days, or both a fine and imprisonment. The penalty is in
396-19 addition to any other penalties provided by the laws of this state
396-20 and may be enforced by a complaint filed in the appropriate court
396-21 of jurisdiction. A rule or regulation that provides a penalty for
396-22 a violation of the rule or regulation is not effective or
396-23 enforceable unless the district has published a substantive
396-24 statement of the rule or regulation and the penalty for its
396-25 violation once a week for two consecutive weeks in the county in
396-26 which the reservoir is situated or in any county in which it is
397-1 partly situated. The substantive statement must be as condensed as
397-2 possible to afford sufficient notice of the act forbidden by the
397-3 rule or regulation. A single notice may embrace a number of rules
397-4 or regulations. The notice must state that breach of the rule or
397-5 regulation will subject the violator to the imposition of a
397-6 penalty. The notice must also state that the full text of the rule
397-7 or regulation is on file in the principal office of the district
397-8 and may be read by any interested person. Five days after the
397-9 second publication of the required notice, the rule or regulation
397-10 shall be in effect, and ignorance of the rule or regulation shall
397-11 not constitute a defense to a prosecution for the enforcement of a
397-12 penalty. After the required publication, the rules and regulations
397-13 authorized by this subsection shall judicially be known to the
397-14 courts and shall be considered similar in nature to a valid penal
397-15 ordinance of a city of the state.
397-16 (c) The district may employ and constitute its own peace
397-17 officers, and any such officer or any county peace officer may make
397-18 arrests when necessary to prevent or stop the commission of any
397-19 offense against the rules or regulations of the district or against
397-20 the laws of the state, when the offense or threatened offense
397-21 occurs on any land, water, or easement owned or controlled by the
397-22 district, or may make an arrest at any place in the case of an
397-23 offense involving injury or detriment to any property owned or
397-24 controlled by the district.
397-25 Sec. 266.024. PARKS AND RECREATION. The district may
397-26 establish or otherwise provide for public parks and recreation
398-1 facilities and may acquire land adjacent to any reservoir in which
398-2 the district owns water storage rights for such purposes; provided,
398-3 however, that no money received from taxation or from bonds payable
398-4 wholly or partially from taxation shall be used for such purpose.
398-5 Sec. 266.025. ADDITIONAL SPECIFIC POWERS. (a) In addition
398-6 to all other powers and for the conservation and development of the
398-7 natural resources of the state within the meaning of Section 59,
398-8 Article XVI, Texas Constitution, the district is authorized to
398-9 purchase, construct, acquire, own, operate, maintain, repair,
398-10 improve, or extend at any location inside and outside its
398-11 boundaries, in the sole discretion of the district, any and all
398-12 works, improvements, facilities, plants, equipment, and appliances
398-13 incident, helpful, or necessary to:
398-14 (1) provide, under the provisions of Chapters 11 and
398-15 12, for the control, storage, preservation, transmission,
398-16 treatment, and distribution and use of storm water and floodwater,
398-17 the water of rivers and streams, and groundwater for irrigation,
398-18 power, hydroelectric, and all other useful purposes and to supply
398-19 water for municipal, domestic, power, hydroelectric, industrial,
398-20 oil flooding, mining, and commercial uses and purposes and all
398-21 other beneficial uses and purposes; or
398-22 (2) collect, transport, process, treat, dispose of,
398-23 and control all municipal, domestic, industrial, or communal waste,
398-24 whether in fluid, solid, or composite state, including the control,
398-25 abatement, or reduction of all types of pollution.
398-26 (b) The district may adopt, enforce, and collect all
399-1 necessary charges, fees, or rentals for providing any district
399-2 facilities or service and may require a deposit for any service or
399-3 facilities furnished, and the district may or may not provide that
399-4 the deposit will bear interest. The district may discontinue a
399-5 facility or service to prevent an abuse or enforce payment of an
399-6 unpaid charge, fee, or rental due the district.
399-7 (c) Facilities acquired or constructed under this section
399-8 shall be separate and apart from, and shall not constitute a part
399-9 of, the district's water system established under the trust
399-10 indenture securing North Texas Municipal Water District Water
399-11 Revenue Bonds, Series 1954, dated September 1, 1954, and all
399-12 additional bonds issued under that trust indenture, as
399-13 supplemented. Bonds issued under this section shall not be issued
399-14 as additional bonds under that trust indenture, but shall be issued
399-15 strictly under this section.
399-16 Sec. 266.026. APPLICATION OF REGIONAL WASTE DISPOSAL ACT.
399-17 (a) The district is a "district" under Chapter 30, and all
399-18 provisions of that chapter apply to the district except to the
399-19 extent of any conflict with this chapter, in which case the
399-20 provisions of this chapter shall prevail.
399-21 (b) A city, public agency, or other political subdivision
399-22 may contract with the district in any manner authorized by Chapter
399-23 30, provided that any city is authorized to contract with the
399-24 district in the manner authorized by Section 30.030(c).
399-25 (c) The district and all cities, public agencies, and other
399-26 political subdivisions shall have all the rights, powers, and
400-1 authority with respect to the control, storage, preservation,
400-2 transmission, treatment, and disposition of storm water and
400-3 floodwater, the water of rivers and streams, and groundwater that
400-4 are granted, permitted, and authorized by Chapter 30 with respect
400-5 to waste, waste disposal systems, and treatment facilities.
400-6 Contracts made under this subsection are subject to the provisions
400-7 of Subsection (b).
400-8 (d) All cities, public agencies, and other political
400-9 subdivisions may set, charge, and collect fees, rates, charges,
400-10 rentals, and other amounts for any service or facilities provided
400-11 under or in connection with any contract with the district and to
400-12 pledge amounts sufficient to make all payments required under the
400-13 contract.
400-14 Sec. 266.027. BOND ISSUANCE FOR SPECIFIC PURPOSES. (a) For
400-15 the purpose of providing funds to acquire, purchase, construct,
400-16 improve, enlarge, and equip any property, buildings, structures, or
400-17 other facilities for any purpose or power authorized by Section
400-18 266.025 or 266.026, the board may issue revenue bonds from time to
400-19 time and in one or more issues or series. The bonds may be payable
400-20 from and secured by liens on and pledges of all or any part of the
400-21 revenues, income, or receipts derived by the district from its
400-22 ownership, operation, lease, or sale of the property, buildings,
400-23 structures, or facilities, including the proceeds or revenues from
400-24 contracts with any person, firm, corporation, city, public agency,
400-25 or other political subdivision. The bonds may be issued to mature
400-26 serially or otherwise within 50 years from their date, and
401-1 provision may be made for the subsequent issuance of additional
401-2 parity bonds or subordinate lien bonds under any terms or
401-3 conditions that may be set forth in the resolution authorizing the
401-4 issuance of the bonds.
401-5 (b) The bonds, and any interest coupons pertaining to the
401-6 bonds, are negotiable instruments within the meaning and for all
401-7 purposes of the Business & Commerce Code, provided that the bonds
401-8 may be issued registrable as to principal alone or as to both
401-9 principal and interest.
401-10 (c) The bonds must be executed and may be made redeemable
401-11 before maturity and may be issued in the form, denominations, and
401-12 manner and under the terms, conditions, and details, may be sold in
401-13 the manner, at the price, and under the terms, and must bear
401-14 interest at the rates determined and provided in the resolution
401-15 authorizing the issuance of the bonds. If the bond resolution so
401-16 provides, the proceeds from the sale of the bonds may be used for
401-17 paying interest on the bonds during the period of the acquisition
401-18 or construction of facilities to be provided through the issuance
401-19 of the bonds, for paying expenses of operation and maintenance of
401-20 facilities, for creating a reserve fund for the payment of the
401-21 principal of and interest on the bonds, and for creating any other
401-22 funds, and the proceeds may be placed on time deposit or invested
401-23 until needed, to the extent and in the manner provided in the bond
401-24 resolution.
401-25 (d) The district may pledge all or part of its revenues,
401-26 income, or receipts from fees, rentals, rates, charges, and
402-1 contract proceeds or payments to the payment of the bonds,
402-2 including the payment of principal, interest, and any other amounts
402-3 required or permitted in connection with the bonds. The pledged
402-4 fees, rentals, rates, charges, proceeds, or payments shall be set
402-5 and collected in amounts that will be at a minimum sufficient,
402-6 together with other pledged resources, to provide for all payments
402-7 of principal, interest, and other amounts required in connection
402-8 with the bonds and, to the extent required by the resolution
402-9 authorizing the issuance of the bonds, to provide for the payment
402-10 of expenses in connection with the bonds and for the operation,
402-11 maintenance, and other expenses in connection with the facilities.
402-12 (e) The bonds may be additionally secured by mortgages or
402-13 deeds of trust on real property owned or to be acquired by the
402-14 district and by chattel mortgages or liens on personal property
402-15 appurtenant to the real property, and the board may authorize the
402-16 execution of trust indentures, mortgages, deeds of trust, or other
402-17 forms of encumbrances to evidence same. The district may pledge to
402-18 the payment of the bonds all or any part of any grant, donation,
402-19 revenues, or income received from the United States government or
402-20 any other public or private source, whether under an agreement or
402-21 otherwise.
402-22 (f) Bonds issued under this section may be refunded or
402-23 otherwise refinanced by the issuance of refunding bonds for that
402-24 purpose, under the terms, conditions, and details determined by
402-25 resolution of the board. All pertinent and appropriate provisions
402-26 of this section apply to the refunding bonds, and they shall be
403-1 issued in the manner provided in this section for other bonds
403-2 authorized under this section. The refunding bonds may be sold and
403-3 delivered in amounts necessary to pay the principal, interest, and
403-4 redemption premium, if any, of bonds to be refunded, at maturity or
403-5 on any redemption date. The refunding bonds may be issued to be
403-6 exchanged for the bonds being refunded. In the latter case, the
403-7 comptroller shall register the refunding bonds and deliver the
403-8 bonds to the holder or holders of the bonds being refunded, in
403-9 accordance with the provisions of the resolution authorizing the
403-10 refunding bonds. The exchange may be made in one delivery or in
403-11 several installment deliveries. Bonds issued at any time by the
403-12 district may also be refunded in the manner provided by any other
403-13 applicable law.
403-14 Sec. 266.028. BOND APPROVAL AND REGISTRATION. Bonds issued
403-15 under Section 266.027 and the appropriate proceedings authorizing
403-16 their issuance shall be submitted to the attorney general for
403-17 examination. When the bonds are to be issued to finance in whole
403-18 or in part water-using facilities, except treatment or distribution
403-19 facilities, the attorney general, before granting approval, shall
403-20 be furnished a resolution from the commission certifying that the
403-21 district possesses the necessary water right authorizing it to
403-22 impound and appropriate the water to be used by the project. If
403-23 the bonds recite that they are secured by a pledge of revenues of a
403-24 contract, a copy of the contract and the proceedings relating to
403-25 the contract shall be submitted to the attorney general. If the
403-26 attorney general finds that the bonds have been authorized and the
404-1 contract has been made in accordance with law, the attorney general
404-2 shall approve the bonds and the contract and then the bonds shall
404-3 be registered by the comptroller.
404-4 (b) After the approval and registration, the bonds and the
404-5 contract, if any, are incontestable in any court or other forum for
404-6 any reason and are valid and binding obligations in accordance with
404-7 their terms for all purposes.
404-8 Sec. 266.029. ADDITIONAL PROVISIONS REGARDING BONDS ELIGIBLE
404-9 FOR INVESTMENT AND TO SECURE DEPOSITS. Bonds issued under Section
404-10 266.027 are legal and authorized investments for banks, trust
404-11 companies, building and loan associations, savings and loan
404-12 associations, insurance companies of all kinds and types, and
404-13 trustees and for all interest and sinking funds and other public
404-14 funds of the state and all agencies, subdivisions, and
404-15 instrumentalities of the state, including counties, cities, towns,
404-16 villages, school districts, and all other kinds and types of
404-17 districts, public agencies, and bodies politic. The bonds are
404-18 eligible and lawful security for all deposits of public funds of
404-19 the state and all agencies, subdivisions, and instrumentalities of
404-20 the state, including counties, cities, towns, villages, school
404-21 districts, and all other kinds and types of districts, public
404-22 agencies, and bodies politic, to the extent of the market value of
404-23 the bonds when accompanied by any unmatured interest coupons.
404-24 Sec. 266.030. SUFFICIENT SOURCE OF AUTHORITY. (a) The
404-25 provisions of Sections 266.025-266.029 are wholly sufficient
404-26 authority for the issuance of bonds, the execution of contracts,
405-1 and the performance by the district and all cities, public
405-2 agencies, and other political subdivisions of other acts and
405-3 procedures authorized by those provisions, without reference to any
405-4 other law or any restrictions or limitations contained in that law,
405-5 except as specifically provided in this chapter. To the extent of
405-6 any conflict or inconsistency between provisions of this section
405-7 and any other provision of law, this section and Sections
405-8 266.025-266.029 shall prevail and control; provided, however, that
405-9 the district and all cities, public agencies, and other political
405-10 subdivisions may use the provisions of any other laws not in
405-11 conflict with this section to the extent convenient or necessary to
405-12 carry out any power or authority, express or implied, granted by
405-13 those sections.
405-14 (b) This chapter does not compel any city, customer, or
405-15 prospective customer to secure water, sewer service, or any other
405-16 service from the district except under contracts voluntarily
405-17 executed.
405-18 Sec. 266.031. COMPLIANCE REQUIRED. Nothing in this chapter
405-19 shall relieve the district from compliance with the provisions of
405-20 Chapters 11, 12, and 49.
405-21 CHAPTER 267. NORTHEAST TEXAS MUNICIPAL WATER DISTRICT
405-22 Sec. 267.001. CREATION. (a) A conservation and reclamation
405-23 district to be known as the "Northeast Texas Municipal Water
405-24 District" is created. The district is a governmental agency and a
405-25 body politic and corporate.
405-26 (b) The district is created under and is essential to
406-1 accomplish the purposes of Section 59, Article XVI, Texas
406-2 Constitution.
406-3 (c) Unless specifically provided otherwise, the provisions
406-4 of this chapter are intended to supplement and expand rather than
406-5 to limit the powers and authority of the district arising from
406-6 other laws, including Chapters 49, 50, and 51.
406-7 Sec. 267.002. DEFINITIONS. In this chapter:
406-8 (1) "Board" means the board of directors for the
406-9 district.
406-10 (2) "Director" means a member of the board.
406-11 (3) "District" means the Northeast Texas Municipal
406-12 Water District.
406-13 Sec. 267.003. BOUNDARIES. (a) The district comprises all
406-14 the territory that was contained within the cities of Jefferson,
406-15 Avinger, Hughes Springs, Lone Star, Ore City, Pittsburg, and
406-16 Daingerfield on March 1, 1953. A defect in the definition of the
406-17 boundaries of any of those cities or in any past or future
406-18 proceedings for the annexation of territory to any of those cities
406-19 does not affect the validity of the district or any of its powers
406-20 or duties.
406-21 (b) The legislature finds that all the land included in the
406-22 district will benefit from the improvements to be acquired and
406-23 constructed by the district.
406-24 Sec. 267.004. BOARD OF DIRECTORS. (a) All powers of the
406-25 district shall be exercised by a board of directors. The directors
406-26 shall be appointed by a majority vote of the governing body of each
407-1 of the cities contained in the district.
407-2 (b) In appointing the first directors for a city with a
407-3 population of 5,000 or more, the governing body of the city shall
407-4 appoint one director for a term ending the following May 31 and one
407-5 director for a term ending one year after the following May 31. In
407-6 appointing subsequent directors, the governing body of each city
407-7 shall appoint in May of each year one director for a two-year term
407-8 beginning on June 1 of that year.
407-9 (c) In appointing the first director for a city with a
407-10 population of less than 5,000, the governing body of the city shall
407-11 appoint one director for a term ending the next May 31 of an
407-12 even-numbered year. In appointing subsequent directors, the
407-13 governing body shall appoint in May of each even-numbered year one
407-14 director for a two-year term beginning on June 1 of that year.
407-15 (d) Each director serves for a term of office as provided by
407-16 this section and until a successor is appointed and has qualified.
407-17 (e) A director must reside in and own taxable property in
407-18 the city from which the director is appointed. A member of a
407-19 governing body of a city or an employee of a city is not eligible
407-20 to serve as a director.
407-21 (f) A director shall subscribe the constitutional oath of
407-22 office and shall give bond for the faithful performance of the
407-23 director's duties in the amount of $5,000, the cost of which shall
407-24 be paid by the district.
407-25 (g) A majority of the members of the board constitutes a
407-26 quorum.
408-1 Sec. 267.005. DIRECTOR FEES. (a) Each director is entitled
408-2 to receive a fee of $100 for attending each meeting of the board,
408-3 provided, however, that not more than $200 shall be paid to any
408-4 director for meetings held in any one calendar month.
408-5 (b) A director is entitled to receive a fee of $100 per day
408-6 for each day devoted to the business of the district and to
408-7 reimbursement for actual expenses incurred in attending to district
408-8 business if such service and expense are expressly approved by the
408-9 board.
408-10 Sec. 267.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
408-11 shall elect from among its members a president and a vice president
408-12 of the district and other officers the board considers necessary.
408-13 (b) The president is the chief executive officer of the
408-14 district and the presiding officer of the board and has the same
408-15 right to vote as any other director.
408-16 (c) The vice president shall perform all duties and exercise
408-17 all powers conferred by this chapter on the president when the
408-18 president is absent or fails or declines to act.
408-19 (d) The board shall appoint a secretary and a treasurer, who
408-20 may or may not be members of the board, and may combine those
408-21 offices. The treasurer shall give bond in an amount required by
408-22 the board, but in no event less than $100,000. The bond must be
408-23 conditioned on the treasurer's accounting for all money that comes
408-24 into the treasurer's custody as treasurer of the district. Until
408-25 the district authorizes the issuance of bonds, the amount of the
408-26 official bond of the treasurer may be fixed by the board in any
409-1 amount not less than $5,000.
409-2 (e) The board shall appoint all necessary engineers,
409-3 attorneys, and other employees.
409-4 (f) The board shall adopt a seal for the district.
409-5 Sec. 267.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
409-6 (a) Other territory in Titus, Marion, Cass, Morris, Harrison,
409-7 Upshur, and Camp counties may be annexed to the district as
409-8 provided by this section.
409-9 (b) A petition for annexation must:
409-10 (1) be signed by 50 or a majority of the qualified
409-11 voters of the territory to be annexed who own taxable property in
409-12 the territory and who have duly rendered the property to the city,
409-13 if situated within a city or town, or county for taxation;
409-14 (2) be filed with the board; and
409-15 (3) describe the territory to be annexed by metes and
409-16 bounds or otherwise unless the territory is the same as that
409-17 contained in a city or town, in which event it shall be sufficient
409-18 to state that the territory to be annexed is that which is
409-19 contained within the city or town.
409-20 (c) If the board finds that the petition complies with and
409-21 is signed by the number of qualified persons required under
409-22 Subsection (b), that the annexation would be in the interest of the
409-23 territory to be annexed and the district, and that the district
409-24 will be able to supply water to the territory to be annexed, the
409-25 board shall adopt a resolution stating the conditions, if any,
409-26 under which territory may be annexed to the district and requesting
410-1 the commission to annex the territory to the district. A certified
410-2 copy of the resolution and of the petition shall be filed with the
410-3 commission.
410-4 (d) The commission shall adopt a resolution declaring its
410-5 intention to call an election in the territory to be annexed for
410-6 the purpose of submitting the proposition of whether or not the
410-7 territory shall be annexed to the district. The commission shall
410-8 set a time and place for a hearing to be held by the commission on
410-9 the question of whether the territory to be annexed will benefit
410-10 from the improvements, works, and facilities then owned or operated
410-11 or contemplated to be owned or operated by the district. A
410-12 railroad right-of-way that is not situated within the defined
410-13 limits of an incorporated city or town will not benefit from the
410-14 improvements, works, and facilities that the district is authorized
410-15 to construct. A railroad right-of-way may not be annexed to the
410-16 district unless the right-of-way is contained within the limits of
410-17 an incorporated city or town that has been annexed to the district.
410-18 (e) Notice of the adoption of the resolution stating the
410-19 time and place of the hearing and addressed to the citizens and
410-20 owners of property in the territory to be annexed shall be
410-21 published one time in a newspaper published within or having
410-22 general circulation within the territory to be annexed, as
410-23 designated by the commission, at least 10 days before the date of
410-24 the hearing. The notice must describe the territory to be annexed
410-25 in the same manner as required or permitted by the petition.
410-26 (f) All interested persons may appear at the hearing and
411-1 offer evidence for or against the intended annexation. The hearing
411-2 may proceed in the order and under the rules prescribed by the
411-3 commission and may be recessed from time to time. If, at the
411-4 conclusion of the hearing, the commission finds that all of the
411-5 lands in the territory to be annexed will benefit from the present
411-6 or contemplated improvements, works, or facilities of the district,
411-7 the commission shall adopt a resolution calling an election in the
411-8 territory to be annexed, stating the date and place or places for
411-9 holding the election and appointing a presiding judge for each
411-10 voting place who shall appoint the necessary assistant judges and
411-11 clerks to assist in holding the election.
411-12 (g) Notice of the election, stating the date of and places
411-13 for holding the election, the proposition to be voted on, and the
411-14 conditions under which the territory may be annexed, or making
411-15 reference to the resolution of the board for that purpose, shall be
411-16 published one time in a newspaper designated by the commission at
411-17 least 10 days before the date set for the election. If the
411-18 newspaper carrying the notice is not published within the territory
411-19 to be annexed, additional notice shall be given for the required
411-20 period by posting copies of the notice of the election at three
411-21 public places in the territory.
411-22 (h) Only qualified electors who reside in the territory to
411-23 be annexed may vote in the election. Returns of the election shall
411-24 be made to the commission.
411-25 (i) The commission shall canvass the returns of the election
411-26 and adopt a resolution declaring the results. If the resolution
412-1 shows that a majority of the votes cast are in favor of annexation,
412-2 the commission shall enter an order annexing the territory to the
412-3 district, and the annexation is incontestable except in the manner
412-4 and within the time for contesting elections under the Election
412-5 Code. A certified copy of the order shall be recorded in the deed
412-6 records of the county in which the territory is situated.
412-7 (j) The commission, in calling the election on the
412-8 proposition for annexation of territory, may include as a part of
412-9 the same proposition a proposition for the assumption of the
412-10 territory's part of the tax-supported bonds of the district then
412-11 outstanding and those voted but not yet sold and for the levy of an
412-12 ad valorem tax on taxable property in the territory to be annexed
412-13 along with the tax in the rest of the district for the payment of
412-14 the bonds.
412-15 (k) After territory is added to the district, the board may
412-16 call an election over the entire district for the purpose of
412-17 determining whether the district as enlarged shall assume the
412-18 tax-supported bonds, if any, then outstanding and those voted but
412-19 not yet sold and whether an ad valorem tax shall be levied on all
412-20 taxable property within the district as enlarged for the payment of
412-21 the bonds, unless the proposition is voted along with the
412-22 annexation election and becomes lawfully binding on the territory
412-23 annexed. The election shall be called and held in the same manner
412-24 as elections for the issuance of bonds as provided by this chapter.
412-25 (l) If no newspaper is published in the territory to be
412-26 annexed, the notices required by this section shall be posted in
413-1 three public places in the territory.
413-2 Sec. 267.008. APPOINTMENT OF DIRECTORS IN ANNEXED
413-3 TERRITORIES. (a) When any city, the territory of which is annexed
413-4 to the district, has a population of 5,000 or more, the governing
413-5 body of the city shall appoint one director for a term ending the
413-6 following May 31 and one director for a term ending one year after
413-7 the following May 31. In May of each year the governing body of
413-8 the city shall appoint one director for a two-year term as provided
413-9 by this chapter for cities originally included in the district.
413-10 (b) If a city, the territory of which is annexed to the
413-11 district, has a population of less than 5,000, the governing body
413-12 of the city shall appoint one director whose term shall expire the
413-13 following May 31 and in May of each second year thereafter shall
413-14 appoint one director for a two-year term.
413-15 (c) If a city initially subject to Subsection (b) later has
413-16 a population of 5,000 or more, it shall be entitled to two
413-17 directors to be appointed as provided by Subsection (a).
413-18 Sec. 267.009. USE OF CERTAIN WATERS AND FACILITIES.
413-19 (a) The district may acquire:
413-20 (1) any and all rights to storage and storage capacity
413-21 in the reservoir formed by Ferrell's Bridge Dam; and
413-22 (2) the right to take water from the reservoirs in
413-23 which the dam will impound certain storm waters and floodwaters and
413-24 the unappropriated flow of Cypress Creek and its tributaries by
413-25 complying with the applicable provisions of this code and pursuant
413-26 to any contracts that the district may make with the United States
414-1 government in reference to those rights.
414-2 (b) The district may construct or otherwise acquire all
414-3 works, plants, and other facilities necessary or useful for the
414-4 purpose of diverting, further impounding, or storing the water
414-5 described by Subsection (a), processing the water, and transporting
414-6 it to cities and others for municipal, domestic, and industrial
414-7 purposes.
414-8 (c) To the extent permissible under the contract with the
414-9 United States government and its agencies, the district may dispose
414-10 of surplus waters under its control for irrigation purposes.
414-11 (d) Any works for the diverting of water from the impounding
414-12 dam may not be constructed until the plans for the works are
414-13 approved by the commission.
414-14 (e) None of the powers granted by this section extend
414-15 outside of Titus, Marion, Cass, Morris, Harrison, Upshur, and Camp
414-16 counties.
414-17 Sec. 267.010. SEWAGE FACILITIES. As a proper aid to the
414-18 conservation, control, preservation, and distribution of the water
414-19 described by Section 267.009 for beneficial uses, the district may
414-20 construct, own, and operate sewage gathering, transmission,
414-21 treatment, and disposal facilities within the counties designated
414-22 in Section 267.009, charge for services rendered by the facilities,
414-23 and make contracts in reference to the facilities with
414-24 municipalities and others.
414-25 Sec. 267.011. DAMS AND RESERVOIRS. (a) The district may
414-26 construct and operate one or more impounding dams and reservoirs
415-1 within Titus, Marion, Cass, Morris, Harrison, Upshur, and Camp
415-2 counties.
415-3 (b) A dam or reservoir may not be constructed until a permit
415-4 is procured from and the plans are approved by the commission.
415-5 (c) The district may enter into contracts with individuals
415-6 and public or private corporations for supplying water from such
415-7 source, either at the reservoir or delivered to the purchasers.
415-8 (d) The district may use and pledge the net revenues from a
415-9 contract described by this section in connection with the issuance
415-10 of its bonds in accordance with Section 267.015.
415-11 Sec. 267.012. APPLICATION OF CERTAIN PROVISIONS. The
415-12 provisions of Section 267.013(e), under which the district is
415-13 required to accomplish at its sole expense the relocation, raising,
415-14 rerouting, changing the grade, or altering the construction of any
415-15 highway, railroad, electric transmission line, or pipeline, are
415-16 applicable to any work done by the district under authority of this
415-17 chapter.
415-18 Sec. 267.013. EMINENT DOMAIN. (a) For the purpose of
415-19 carrying out any power or authority conferred by this chapter the
415-20 district may acquire land and easements within and outside the
415-21 district in Titus, Marion, Cass, Morris, Harrison, Upshur, and Camp
415-22 counties, including land above the probable high-water line around
415-23 any impounding or diversion reservoir, by condemnation in the
415-24 manner provided by Chapter 21, Property Code.
415-25 (b) The district is a municipal corporation within the
415-26 meaning of Section 21.021(c), Property Code.
416-1 (c) Except as provided by Subsection (d), the amount of and
416-2 character of interest in land and easements acquired under this
416-3 section shall be determined by the board.
416-4 (d) The district may condemn only an easement against
416-5 persons, firms, and corporations, or their receivers or trustees,
416-6 who have the power of eminent domain, and the fee title may not be
416-7 condemned.
416-8 (e) If the district, in the exercise of the power of eminent
416-9 domain or power of relocation or any other power granted under this
416-10 chapter, makes necessary the relocation, raising, rerouting,
416-11 changing the grade, or altering the construction of any highway,
416-12 railroad, electric transmission line, or pipeline, all such
416-13 necessary relocation, raising, rerouting, changing the grade, or
416-14 alteration of construction shall be accomplished at the sole
416-15 expense of the district.
416-16 Sec. 267.014. NOTICE REQUIRED FOR CERTAIN CONTRACTS. (a) A
416-17 construction contract requiring an expenditure of more than $25,000
416-18 may be made only after publication of a notice to bidders once each
416-19 week for two weeks before the awarding of the contract.
416-20 (b) The notice required under this section is sufficient if
416-21 it states the time and place at which the bids will be opened and
416-22 the general nature of the work to be done or the material,
416-23 equipment, or supplies to be purchased and states where and under
416-24 what terms copies of the plans and specifications may be obtained.
416-25 (c) The publication shall be in a newspaper published in the
416-26 district and designated by the board.
417-1 Sec. 267.015. BONDS. (a) For the purpose of providing a
417-2 source of water supply for cities and other users for municipal,
417-3 domestic, and industrial purposes as authorized by this chapter and
417-4 for the purpose of carrying out any other power or authority
417-5 conferred by this chapter, the district may issue negotiable bonds
417-6 payable from the revenues or taxes, or both revenues and taxes, of
417-7 the district as pledged by resolution of the board. Pending the
417-8 issuance of definitive bonds, the board may authorize the delivery
417-9 of negotiable interim bonds or notes that are eligible for exchange
417-10 or substitution by the definitive bonds.
417-11 (b) Bonds must be authorized by resolution of the board and
417-12 must be issued in the name of the district, signed by the president
417-13 or vice president, and attested by the secretary and have the seal
417-14 of the district impressed on the bonds.
417-15 (c) Bonds must mature serially or otherwise in not to exceed
417-16 40 years and may be sold at a price and under terms determined by
417-17 the board to be the most advantageous reasonably obtainable,
417-18 provided that the interest cost to the district, calculated by use
417-19 of standard bond interest tables currently in use by insurance
417-20 companies and investment houses, does not exceed six percent per
417-21 year. Within the discretion of the board, bonds may be made
417-22 callable prior to maturity at times and prices prescribed in the
417-23 resolution authorizing the bonds and may be made registrable as to
417-24 principal or as to both principal and interest.
417-25 (d) Bonds may be issued in more than one series and from
417-26 time to time as required for carrying out the purposes of this
418-1 chapter.
418-2 (e) Bonds may be secured by a pledge of all or part of the
418-3 net revenues of the district, of the net revenues of one or more
418-4 contracts made before or after the bonds are issued, or of other
418-5 revenues specified by resolution of the board. A pledge may
418-6 reserve the right, under conditions specified in the pledge, to
418-7 issue additional bonds which will be on a parity with or
418-8 subordinate to the bonds being issued. In this subsection, "net
418-9 revenues" means the gross revenues of the district less the amount
418-10 necessary to pay the cost of maintaining and operating the district
418-11 and its properties.
418-12 (f) For the purposes stated in Subsection (a), the district
418-13 may issue bonds payable from ad valorem taxes to be levied on all
418-14 taxable property in the district or may issue bonds secured by and
418-15 payable from both the taxes and the revenues of the district,
418-16 subject to the conditions prescribed in Section 267.018(a). The
418-17 board shall levy a tax sufficient to pay bonds issued payable
418-18 wholly or partially from ad valorem taxes and the interest on the
418-19 bonds as the bonds and interest become due. The rate of the tax
418-20 for any year may be set after giving consideration to the money
418-21 received from the pledged revenues available for payment of
418-22 principal and interest to the extent and in the manner permitted by
418-23 the resolution authorizing the issuance of the bonds.
418-24 (g) If bonds payable wholly from revenues are issued, the
418-25 board shall set and from time to time revise rates of compensation
418-26 for water sold and services rendered by the district that will be
419-1 sufficient to pay the expense of operating and maintaining the
419-2 facilities of the district, to pay bonds as they mature and the
419-3 interest as it accrues, and to maintain the reserve and other funds
419-4 as provided in the resolution authorizing the bonds. If bonds
419-5 payable partially from revenues are issued, the board shall set and
419-6 from time to time revise rates of compensation for water sold and
419-7 services rendered by the district that will be sufficient to assure
419-8 compliance with the resolution authorizing the bonds.
419-9 (h) From the proceeds of the sale of the bonds, the district
419-10 may set aside an amount for the payment of interest expected to
419-11 accrue during construction and for a reserve interest and sinking
419-12 fund, and the set-aside provision may be made in the resolution
419-13 authorizing the bonds. Proceeds from the sale of the bonds may
419-14 also be used for the payment of all expenses necessarily incurred
419-15 in accomplishing the purposes for which the district is created,
419-16 including expenses of issuing and selling the bonds and the expense
419-17 of creating and organizing the district.
419-18 (i) The district may invest all or any part of the proceeds
419-19 of the bonds before and during the period of construction in
419-20 obligations of or in obligations unconditionally guaranteed by the
419-21 United States government.
419-22 (j) In the event of a default or a threatened default in the
419-23 payment of principal of or interest on bonds payable wholly or
419-24 partially from revenues of the district, any court of competent
419-25 jurisdiction may, on petition of the holders of 25 percent of the
419-26 outstanding bonds of the issue in default or threatened with
420-1 default, appoint a receiver with authority to collect and receive
420-2 all income of the district except income from taxes, employ and
420-3 discharge agents and employees of the district, take charge of the
420-4 district's funds on hand (except funds received from taxes, unless
420-5 commingled), and manage the proprietary affairs of the district
420-6 without consent or hindrance by the board. The receiver may also
420-7 be authorized to sell or make contracts for the sale of water or
420-8 renew the contracts with the approval of the court appointing the
420-9 receiver. The court may vest the receiver with other powers and
420-10 duties the court finds necessary for the protection of the holders
420-11 of the bonds.
420-12 Sec. 267.016. REFUNDING BONDS. (a) The district may issue
420-13 refunding bonds for the purpose of refunding any outstanding bonds
420-14 authorized by this chapter and interest on the bonds. The
420-15 refunding bonds may be issued to refund more than one series of
420-16 outstanding bonds and may combine the pledges for the outstanding
420-17 bonds for the security of the refunding bonds, and the refunding
420-18 bonds may be secured by other or additional revenues.
420-19 (b) The provisions of this chapter with reference to the
420-20 issuance by the district of other bonds, the approval of the bonds
420-21 by the attorney general, and the remedies of the holders of the
420-22 bonds are applicable to refunding bonds. Refunding bonds shall be
420-23 registered by the comptroller on surrender and cancellation of the
420-24 bonds to be refunded, but in lieu of that process, the resolution
420-25 authorizing the issuance of the refunding bonds may provide that
420-26 the refunding bonds shall be sold and the proceeds of the sale
421-1 deposited in the bank where the original bonds are payable, in
421-2 which case the refunding bonds may be issued in an amount
421-3 sufficient to pay the interest on the original bonds to their
421-4 option date or maturity date, and the comptroller shall register
421-5 the refunding bonds without concurrent surrender and cancellation
421-6 of the original bonds.
421-7 Sec. 267.017. TRUST INDENTURE FOR BONDS. (a) Any bonds,
421-8 including refunding bonds, authorized by this chapter that are not
421-9 payable wholly from ad valorem taxes may be additionally secured by
421-10 a trust indenture under which the trustee may be a bank having
421-11 trust powers located either within or outside the state. The bonds
421-12 may, in the discretion of the board, be additionally secured by a
421-13 deed of trust lien on physical properties of the district and all
421-14 franchises, easements, water rights and appropriation permits,
421-15 leases, and contracts and all rights pertaining to the properties,
421-16 vesting in the trustee power to sell the properties for payment of
421-17 the indebtedness, power to operate the properties, and all other
421-18 powers and authority for the further security of the bonds.
421-19 (b) The trust indenture, regardless of the existence of the
421-20 deed of trust lien, may contain any provisions prescribed by the
421-21 board for the security of the bonds and the preservation of the
421-22 trust estate and may make provision for amendment or modification
421-23 of the trust indenture and the issuance of bonds to replace lost or
421-24 mutilated bonds.
421-25 (c) A purchaser under a sale under a deed of trust lien,
421-26 where one is given, shall be the owner of the properties,
422-1 facilities, and rights purchased and shall have the right to
422-2 maintain and operate the properties, facilities, and rights.
422-3 Sec. 267.018. BOND ELECTIONS. (a) Bonds payable wholly or
422-4 partially from ad valorem taxes, except refunding bonds, may not be
422-5 issued unless authorized by an election at which only the qualified
422-6 voters who reside in the district shall participate and a majority
422-7 of the votes cast at the election is in favor of the issuance of
422-8 the bonds.
422-9 (b) Before calling an election for the issuance of bonds
422-10 secured either wholly or partially by a pledge of ad valorem taxes,
422-11 the board shall publish, in the manner prescribed by this section,
422-12 a summary of the improvements to be financed with the proceeds of
422-13 the bonds to be issued. If the district has not provided
422-14 facilities for delivering water to a city within the district and
422-15 the summary of improvements does not include provision for
422-16 delivering water to the city, the district shall publish in the
422-17 city notice of its intention, on a date specified in the notice, to
422-18 adopt a resolution ordering an election involving the issuance of
422-19 the bonds and containing the summary of the proposed improvements.
422-20 The notice shall be published at least once in a newspaper
422-21 published in or having general circulation in the city. The date
422-22 of publication shall be at least 14 days before the date on which
422-23 the district intends to adopt a resolution ordering the election.
422-24 If no newspaper is published in the city, notice shall be given by
422-25 posting a copy of the notice of intention at three public places in
422-26 the city for at least 14 days before the date designated for
423-1 ordering the election. The district shall also mail a copy of the
423-2 election notice to the mayor of the city at least 14 days before
423-3 the date designated for ordering the election. Before the date
423-4 designated for ordering the election, the governing body of the
423-5 city notified may adopt a resolution stating that the district has
423-6 not provided facilities for delivering water to the city and does
423-7 not propose to provide the facilities necessary for that purpose
423-8 with the proceeds from the proposed tax-supported bonds on a
423-9 reasonable cost basis; stating that eliminating the city from the
423-10 district for all purposes is in the best interests of the people of
423-11 the city; and seeking withdrawal from the district. If, before the
423-12 date designated for ordering the election, a certified copy of the
423-13 resolution is delivered to the district and to the commission, the
423-14 district shall not proceed with the election until the commission
423-15 has acted finally on the request for withdrawal from the district.
423-16 (c) On receipt of a certified copy of a resolution from a
423-17 city requesting withdrawal from a district the commission shall set
423-18 a date for a hearing on the request, giving written notice of the
423-19 hearing to the city and to the district. If at the hearing the
423-20 commission finds that no facilities have been provided to the city
423-21 and that none will be provided from the proceeds of the proposed
423-22 tax-supported bonds for the delivery of water to the city on a
423-23 reasonable cost basis, the commission shall enter an order
423-24 eliminating the city from the district. In lieu of a hearing the
423-25 district may file with the commission a consent to the elimination
423-26 of the territory. However, if the commission finds that the
424-1 facilities are available or will be provided from the proceeds of
424-2 the proposed bonds on a reasonable cost basis, the commission shall
424-3 enter an order denying the request for withdrawal. After the
424-4 commission enters the order, the district may order an election
424-5 with the city either eliminated or retained in the boundaries of
424-6 the district as prescribed in the order.
424-7 (d) An election for the issuance of bonds payable wholly or
424-8 partially by ad valorem taxes may be called by the board without a
424-9 petition. The resolution calling the election shall specify the
424-10 time and location of the election, the purpose for which the bonds
424-11 are to be issued, the maximum amount of the bonds, the maximum
424-12 maturity of the bonds, the form of the ballot, and the presiding
424-13 judge for each voting place. The presiding judge serving at each
424-14 voting place shall appoint one assistant judge and at least two
424-15 clerks to assist in holding the election. Notice of the election
424-16 shall be given by publishing a substantial copy of the resolution
424-17 calling the election in one newspaper published in each city
424-18 contained in the district for two consecutive weeks. The notice
424-19 must first be published at least 21 days prior to the date of the
424-20 election. If no newspaper is published in a city, notice shall be
424-21 given by posting a copy of the resolution in three public places.
424-22 (e) The returns of the election shall be made to and
424-23 canvassed by the board.
424-24 (f) The Election Code is applicable to elections held under
424-25 this section except as otherwise provided by this chapter.
424-26 (g) Bonds not payable wholly or partially from ad valorem
425-1 taxes may be issued without an election.
425-2 Sec. 267.019. APPROVAL AND REGISTRATION OF BONDS. After any
425-3 bonds, including refunding bonds, are authorized by the district,
425-4 the bonds and the record relating to their issuance shall be
425-5 submitted to the attorney general for examination as to the
425-6 validity of the bonds. If the bonds recite that they are secured
425-7 by a pledge of the proceeds of a contract previously made between
425-8 the district and a city or other governmental agency or district, a
425-9 copy of the contract and the proceedings of the city or other
425-10 governmental agency or district authorizing the contract shall also
425-11 be submitted to the attorney general. If the bonds have been
425-12 authorized and the contracts have been made in accordance with the
425-13 constitution and laws of the state, the attorney general shall
425-14 approve the bonds and contracts and the bonds shall then be
425-15 registered by the comptroller. After the approval and
425-16 registration, the bonds and the contracts, if any, are valid and
425-17 binding and are incontestable for any cause.
425-18 Sec. 267.020. WATER SUPPLY CONTRACTS. The district may
425-19 contract with cities and others for the purpose of supplying water
425-20 to them. The district may also contract with a city for the rental
425-21 or leasing of, or for the operation of, the water production, water
425-22 supply, or water filtration or purification and water supply
425-23 facilities of the city for such consideration as the district and
425-24 the city may agree. The contract may be on the terms and for the
425-25 time the parties may agree, and the contract may provide that it
425-26 shall continue in effect until bonds specified in the contract and
426-1 refunding bonds issued in lieu of the bonds are paid.
426-2 Sec. 267.021. DISTRICT DEPOSITORY. (a) The board shall
426-3 designate one or more banks within the district to serve as
426-4 depository or depositories for the funds of the district. All
426-5 funds of the district shall be deposited in the depository bank or
426-6 banks, except that funds pledged to pay bonds may be deposited with
426-7 the trustee bank named in the trust agreement and except that funds
426-8 shall be remitted to the bank of payment for the payment of
426-9 principal of and interest on bonds. To the extent that funds in
426-10 the depository banks and the trustee bank are not insured by the
426-11 Federal Deposit Insurance Corporation, the funds shall be secured
426-12 in the manner provided by law for the security of county funds; or
426-13 the resolution or trust agreement, or both, securing the bonds may
426-14 require that any or all of the funds be secured by obligations of
426-15 or obligations unconditionally guaranteed by the United States
426-16 government.
426-17 (b) Before designating a depository bank or banks, the board
426-18 shall issue a notice stating the time and place when and where the
426-19 board will meet to designate the depository bank or banks and
426-20 inviting the banks in the district to submit applications to be
426-21 designated depositories. The notice must be published one time in
426-22 a newspaper or newspapers published in the district and specified
426-23 by the board. The term of service for depositories shall be
426-24 prescribed by the board.
426-25 (c) At the time stated in the notice of the meeting, the
426-26 board shall consider the applications and the management and
427-1 condition of the banks filing the applications and shall designate
427-2 as depositories the bank or banks which offer the most favorable
427-3 terms and conditions for the handling of the funds of the district
427-4 and which the board finds have proper management and are in
427-5 condition to warrant handling of district funds. Membership on the
427-6 board of an officer or director of a bank shall not disqualify the
427-7 bank from being designated as depository.
427-8 (d) If no applications are received by the time stated in
427-9 the notice of the meeting, the board shall designate a bank or
427-10 banks within or outside of the district based on the terms and
427-11 conditions the board finds advantageous to the district.
427-12 Sec. 267.022. WATER APPROPRIATION PERMITS; WATER SUPPLY
427-13 CONTRACTS. The district may acquire water appropriation permits
427-14 directly from the commission or from owners of permits. The
427-15 district may also purchase water or a water supply from any person,
427-16 firm, corporation, or public agency or from the United States
427-17 government or any of its agencies. The district may, within the
427-18 discretion of the board, contract with one or more large users of
427-19 water to acquire a water supply on an agreed allocation of storage
427-20 space as between the district and the user, or the district may
427-21 contract independently for the district's water supply.
427-22 Sec. 267.023. BONDS ELIGIBLE FOR INVESTMENT AND SECURITY OF
427-23 DEPOSITS. (a) All bonds of the district are legal and authorized
427-24 investments for banks, savings banks, trust companies, building and
427-25 loan associations, savings and loan associations, insurance
427-26 companies, fiduciaries, trustees, and guardians and for the sinking
428-1 funds of cities, towns, villages, counties, school districts, or
428-2 other political corporations or subdivisions of the state.
428-3 (b) District bonds are eligible to secure the deposit of
428-4 public funds of the state and of cities, towns, villages, counties,
428-5 school districts, or other political corporations or subdivisions
428-6 of the state. The bonds are lawful and sufficient security for the
428-7 deposits to the extent of the value of the bonds when accompanied
428-8 by all unmatured coupons.
428-9 Sec. 267.024. EXEMPTION FROM TAXATION. The accomplishment
428-10 of the purposes stated in this chapter being for the benefit of the
428-11 people of this state and for the improvement of the properties and
428-12 industries of the state, the district in carrying out the purposes
428-13 of this chapter will be performing an essential public function
428-14 under the constitution and shall not be required to pay any tax or
428-15 assessment on a project or any part of a project under this
428-16 chapter. The bonds issued as provided by this chapter and the
428-17 transfer of and income from the bonds, including the profits made
428-18 on the sale of the bonds, are free from taxation within the state.
428-19 Sec. 267.025. ASSESSMENT, EQUALIZATION, LEVYING, AND
428-20 COLLECTION OF TAXES. (a) The tax rolls of the cities situated
428-21 within the district and within territory later annexed are adopted
428-22 and shall constitute the tax rolls of the district until
428-23 assessments and tax rolls are made by the district.
428-24 (b) Before the sale and delivery of district bonds payable
428-25 wholly or partially from ad valorem taxes, the board shall appoint
428-26 a tax assessor and collector and a board of equalization. The
429-1 board shall assess taxes, equalize valuations, and prepare tax
429-2 rolls. General laws applicable to water control and improvement
429-3 districts with reference to tax assessors and collectors, boards of
429-4 equalization, tax rolls, and the levy and collection of taxes and
429-5 delinquent taxes are applicable to the district, except that the
429-6 board of equalization which is to be appointed each year by the
429-7 board, shall consist of one member residing in each city contained
429-8 in the district.
429-9 Sec. 267.026. DISTRICT RULES AND REGULATIONS. (a) The
429-10 board may adopt and promulgate all reasonable rules or regulations
429-11 to secure, maintain, and preserve the sanitary condition of all
429-12 water in and to flow into a reservoir owned by the district, or
429-13 which the district may control by contract or otherwise, to prevent
429-14 the waste or unauthorized use of the water, and to regulate
429-15 residence, hunting, fishing, boating, camping, and all recreational
429-16 and business privileges, along or around the reservoir or any body
429-17 of land or easement owned or controlled by the district.
429-18 Sec. 267.027. RECREATIONAL FACILITIES. The district may
429-19 establish or otherwise provide for and operate public parks and
429-20 recreational facilities adjacent to or in the immediate vicinity of
429-21 Ferrell's Bridge Dam Reservoir, known as Lake of the Pines, and may
429-22 acquire, by purchase, lease, or otherwise, land for the parks or
429-23 facilities. However, no money received from taxation or from bonds
429-24 payable wholly or partially from taxation shall be used to provide
429-25 for the parks or facilities, and no land for the parks or
429-26 facilities shall be acquired through condemnation proceedings. The
430-1 district may make contracts, including lease and operating
430-2 agreements, in reference to the establishment of public parks and
430-3 recreational facilities with the United States government. The
430-4 district has the power and authority to prescribe and enforce rules
430-5 and regulations applicable to the parks and recreational facilities
430-6 as are granted, under the general law, to water control and
430-7 improvement districts.
430-8 Sec. 267.028. BOUNDARY MAP. The board shall file a map and
430-9 plat of the district, clearly showing the boundaries and limits,
430-10 with each of the following offices: two copies with the
430-11 commission, one copy with the secretary of state, and one copy with
430-12 the county clerk of each county in which any portion of the
430-13 district is located.
430-14 CHAPTER 268. NUECES RIVER AUTHORITY
430-15 Sec. 268.001. CREATION. (a) A conservation and reclamation
430-16 district to be known as the "Nueces River Authority" is created.
430-17 The authority is a governmental agency, a body politic and
430-18 corporate, and a municipality with the authority to exercise the
430-19 powers, rights, privileges, and functions in this chapter. The
430-20 authority is created under and is essential to accomplish the
430-21 purposes of Section 59, Article XVI, Texas Constitution.
430-22 (b) The rights, privileges, authority, and functions granted
430-23 in this chapter to the authority and the authority itself are
430-24 expressly subject to Sections 17.183-17.188, Sections
430-25 17.271-17.277, and Chapters 11, 12, and 26.
430-26 Sec. 268.002. DEFINITIONS. In this chapter:
431-1 (1) "Authority" means the Nueces River Authority.
431-2 (2) "Board" means the board of directors of the
431-3 authority.
431-4 (3) "Director" means a member of the board.
431-5 (4) "Person" includes an individual, corporation,
431-6 organization, government or governmental subdivision or agency,
431-7 business trust, estate, trust, partnership, association, and any
431-8 other legal entity.
431-9 (5) "State" means the State of Texas or any of its
431-10 agencies, departments, boards, political subdivisions, or other
431-11 entities.
431-12 (6) "United States" includes a department, bureau, and
431-13 any other agency of the United States of America.
431-14 (7) "Waste" means sewage, industrial waste, municipal
431-15 waste, recreational waste, agricultural waste, waste heat, solid
431-16 waste, or any other waste.
431-17 Sec. 268.003. BOUNDARIES. (a) The authority includes all
431-18 counties that lie wholly within the Nueces River Basin, all of San
431-19 Patricio, Nueces, and Jim Wells counties, and generally the
431-20 in-basin parts of other counties, except Webb County, that lie
431-21 partially within the basin. The actual boundaries of the area
431-22 within the authority may be described by metes and bounds as
431-23 follows: Beginning at a point in the boundary of the State of
431-24 Texas offshore of the City of Port Aransas at the Northeast corner
431-25 of Nueces County and the most southerly Southeast corner of Aransas
431-26 County; thence along the common line between Nueces County and
432-1 Aransas County in a westerly and then northerly direction to a
432-2 point in the center of the Intracoastal Canal cutoff between
432-3 Rockport and Aransas Pass, Texas; thence southerly along the
432-4 centerline of the said Intracoastal Canal to its point of
432-5 intersection with an extension of the boundary line between Aransas
432-6 County and San Patricio County for the northernmost Southeast
432-7 corner of San Patricio County and the Southwest corner of Aransas
432-8 County for an angle point; thence along the common line between San
432-9 Patricio County and Aransas County in a northwesterly direction
432-10 approximately 14 miles to a point on the Aransas River on the South
432-11 line of Refugio County for the Northeast corner of San Patricio
432-12 County and the West corner of Aransas County; thence along the
432-13 Aransas River and the common line between Refugio County and San
432-14 Patricio County in a west-northwesterly direction approximately 19
432-15 miles to a point on the Southeast line of Bee County for the
432-16 Southwest corner of Refugio County; thence along the common line
432-17 between Bee County and San Patricio County in a southwesterly
432-18 direction approximately 3 miles to a point for the Southeast corner
432-19 of Bee County; thence along the common line between Bee County and
432-20 San Patricio County in a west-northwesterly direction approximately
432-21 16 miles to the common corner of Live Oak, Bee, and San Patricio
432-22 Counties; thence in a northwesterly direction with the line between
432-23 Live Oak and Bee Counties approximately 14 miles; thence N.
432-24 approximately 25 miles to the most northern corner of Bee County;
432-25 thence N. 40 W. at approximately 19 1/2 miles the Karnes-Wilson
432-26 Counties line, at about 31 miles a point in the S.W. line of Bexar
433-1 County; thence approximately North 77 1/2 W. approximately 28
433-2 miles, to the S.W. corner of Bexar County; thence N.W. along the
433-3 northwest extension of the common boundary between Bexar and
433-4 Atascosa Counties 3 1/2 miles to a point; thence N. 30 W.
433-5 approximately 28 miles to a point in the North line of Medina
433-6 County; then North 64 W. approximately 34 miles to a point in the
433-7 west line of Bandera County; thence North approximately 3 miles to
433-8 the northwest corner of Bandera County; thence West with the line
433-9 of Real and Kerr Counties approximately 5 miles to S.W. corner of
433-10 Kerr County; thence North with the line between Kerr and Real
433-11 Counties approximately 13 miles to the N.E. corner of Real County;
433-12 thence West, North and West, with the north line of Real County,
433-13 approximately 18 miles to the Northwest corner of Real County;
433-14 thence South 75 west approximately 15 miles to the Court House in
433-15 Rock Springs in Edwards County; thence N. 68 W. approximately 15
433-16 miles to a point; thence S. 34 W. approximately 19 miles to a
433-17 point; thence S. 35 E. at 21 miles pass a point in the South line
433-18 of Edwards County, 34 miles to a point; thence S. 23 1/2 W.
433-19 approximately 14 miles to a point; thence S. approximately 8 miles
433-20 to Spofford Junction; thence South with the Eagle Pass branch of
433-21 G. H. & S. A. R. R. at 15 miles a point; thence South 12 miles to a
433-22 point; thence S. 41 1/2 E. 42 miles to the village of Dentonia in
433-23 Dimmit County; thence S. 27 1/2 d. E. approximately 10 miles to the
433-24 Dimmit and Webb Counties line; thence E. with said Dimmit-Webb
433-25 County line approximately 25 miles to the west line of La Salle
433-26 County; thence South with west line of La Salle County
434-1 approximately 5 miles to the S.W. corner of La Salle County, a
434-2 common corner with Webb County; thence E. with the Webb-La Salle
434-3 County line approximately 30 miles to the N.E. corner of Webb
434-4 County, the common corner of Webb, La Salle, McMullen and Duval
434-5 Counties; thence S. with the Webb-Duval County line approximately
434-6 27 miles to a point in the E. line of Webb County; thence N. 35 d.
434-7 E. 33 miles to a point on the 28 d. North Parallel; thence East
434-8 along the 28 degrees North Parallel approximately 17 miles to a
434-9 point on the East line of Duval County and the West line of Jim
434-10 Wells County for an interior corner; thence along the common line
434-11 between Duval County and Jim Wells County, South approximately 55
434-12 miles to a point on the North line of Brooks County for the
434-13 Southwest corner of Jim Wells County and the Southeast corner of
434-14 Duval County; thence along the common line between Jim Wells County
434-15 and Brooks County, East approximately 11 miles to a point for the
434-16 northernmost Southwest corner of Kleberg County and the
434-17 southernmost Southeast corner of Jim Wells County; thence along the
434-18 common line between Jim Wells County and Kleberg County, North
434-19 approximately 25.5 miles to the Northwest corner of Kleberg County
434-20 and an interior corner of Jim Wells County; thence along the common
434-21 line between Jim Wells County and Kleberg County, East
434-22 approximately 7.25 miles to a point in the center of San Fernando
434-23 Creek for the northernmost Southeast corner of Jim Wells County and
434-24 the northernmost Southwest corner of Nueces County; thence along
434-25 the centerline of San Fernando Creek and along the common line
434-26 between Kleberg County and Nueces County in a southeasterly
435-1 direction approximately 9 miles to a point for the southernmost
435-2 Southwest corner of Nueces County; thence along the common line
435-3 between Kleberg County and Nueces County, East approximately 32
435-4 miles to a point on the shoreline of Laguna Madre for an angle
435-5 point; thence along the common line between Kleberg County and
435-6 Nueces County in an east-northeasterly direction across Laguna
435-7 Madre approximately 5.25 miles to a point on the Northwest line of
435-8 Padre Island for an angle point; thence along the common line
435-9 between Kleberg County and Nueces County in a southeasterly
435-10 direction to a point on the boundary of the State of Texas in the
435-11 Gulf of Mexico off North Padre Island at the Northeast corner of
435-12 Kleberg County and the Southeast corner of Nueces County; thence
435-13 along the boundary of the State of Texas in the Gulf of Mexico and
435-14 along the Southeast line of Nueces County in a northeasterly
435-15 direction to the point of beginning; being all of Live Oak County,
435-16 1116 square miles, McMullen County 1302 square miles, La Salle
435-17 County 1561 square miles, Frio County 1124 square miles, Zavala
435-18 County 1348 square miles, Atascosa County, 1358 square miles, Real
435-19 County 619 square miles, Uvalde County 1589 square miles, San
435-20 Patricio County 680 square miles, Nueces County 838 square miles,
435-21 and Jim Wells County 846 square miles, and parts of the following
435-22 Counties with the number of square miles included in the authority:
435-23 Duval 378 square miles.
435-24 Dimmit 1200 square miles.
435-25 Maverick 574 square miles.
435-26 Kinney 602 square miles.
436-1 Medina 1113 square miles.
436-2 Bandera 224 square miles.
436-3 Edwards 922 square miles.
436-4 Bexar 84 square miles.
436-5 Wilson 98 square miles.
436-6 Karnes 85 square miles.
436-7 Bee 135 square miles.
436-8 (b) The boundaries and field notes of the authority form a
436-9 closure. If a mistake is made in copying the field notes in the
436-10 legislative process or a mistake is otherwise made in the field
436-11 notes, it shall in no way affect the organization, existence, and
436-12 validity of the authority, the right of the authority to issue any
436-13 type of bonds or refunding bonds for the purpose for which the
436-14 authority is created or to pay the principal of or interest on the
436-15 bonds, the right to assess, levy, and collect taxes, or in any
436-16 other manner affect the legality or operation of the authority or
436-17 the governing body of the authority.
436-18 (c) The written description of the boundaries in Subsection
436-19 (a) shall be recorded by the board in the minutes of the authority.
436-20 (d) If the board finds any land included in the field notes,
436-21 other than land in San Patricio, Nueces, and Jim Wells counties,
436-22 that is not actually included in the watershed, the board shall
436-23 exclude the land from the authority and file a certificate of
436-24 exclusion with the county clerk of the county in which the land is
436-25 located. The certificate of exclusion shall describe the
436-26 boundaries of the land excluded so that the land remaining in the
437-1 authority may be adequately identified.
437-2 Sec. 268.004. PURPOSE. The purpose of this chapter is to
437-3 provide by the means and in the manner authorized by this chapter,
437-4 for the conservation and development of the state's natural
437-5 resources within the Nueces River Basin, including:
437-6 (1) the control, storage, preservation, and
437-7 distribution of the state's water for domestic and municipal uses,
437-8 industrial uses, irrigation, mining and recovery of minerals, stock
437-9 raising, underground water recharge, electric power generation,
437-10 navigation, recreation and pleasure, and other beneficial uses and
437-11 purposes;
437-12 (2) the reclamation and irrigation of arid, semiarid,
437-13 and other land needing irrigation;
437-14 (3) the reclamation and drainage of overflowed land
437-15 and other land needing drainage;
437-16 (4) the maintenance and enhancement of the quality of
437-17 the water in the Nueces River Basin;
437-18 (5) the conservation and development of the forests,
437-19 water, and hydroelectric power;
437-20 (6) the navigation of inland and coastal water;
437-21 (7) the provision of systems, facilities, and
437-22 procedures for the collection, transportation, handling, treatment,
437-23 and disposal of waste of all types; and
437-24 (8) protection of the beds and banks of the
437-25 state-owned rivers and watercourses in the Nueces River Basin.
437-26 Sec. 268.005. CONSTRUCTION OF CHAPTER. This chapter shall
438-1 be liberally construed to achieve its purposes, and any particular
438-2 grant of power contained in this chapter shall be held to specify
438-3 but not to limit general powers. This chapter is sufficient
438-4 authority for the performance of all acts and procedures authorized
438-5 by this chapter, without reference to any other law or any
438-6 restrictions or limitations included in any other law. The
438-7 authority may use the provisions of any other law not in conflict
438-8 with an express provision of this chapter to the extent necessary
438-9 or convenient to carry out any power, express or implied, granted
438-10 by this chapter or by any other law that by its terms is applicable
438-11 to the authority.
438-12 Sec. 268.006. BOARD OF DIRECTORS. (a) The authority shall
438-13 be governed by a board of directors composed of 21 members, who
438-14 shall be appointed by the governor with the advice and consent of
438-15 the senate. Each member must be a qualified elector and a resident
438-16 of a county that lies wholly or partly within the authority as
438-17 described in Section 268.003(a).
438-18 (b) The board shall include four members who are residents
438-19 of Nueces County, two members who are residents of San Patricio
438-20 County, and two members who are residents of Jim Wells County. Not
438-21 more than four persons who reside in Nueces County and not more
438-22 than two persons who reside in any other county that lies wholly or
438-23 partly within the authority may be appointed to or serve on the
438-24 board at the same time.
438-25 (c) Each member of the board serves for a term of six years
438-26 and until a successor is appointed and has qualified. Members of
439-1 the board serve staggered terms, with one-third of the members
439-2 taking office on February 1 of each odd-numbered year.
439-3 (d) Each member of the board shall qualify by taking the
439-4 constitutional oath of office and by executing a bond in an amount
439-5 determined by the board conditioned on the faithful performance of
439-6 the member's duties.
439-7 (e) All vacancies on the board shall be filled in the manner
439-8 provided by this section for making the original appointment.
439-9 (f) The governor may remove a director from office for
439-10 inefficiency, neglect of duty, misconduct in office, or absence
439-11 from three consecutive regular meetings of the board. Before a
439-12 director is removed from office, the board shall conduct a hearing
439-13 on the charges against the director. The director is entitled to
439-14 appear at the hearing and present evidence to show why the director
439-15 should not be removed from office. Not later than the 30th day
439-16 before the date of the hearing, the board shall give the director
439-17 notice of the charges against the director and the time and place
439-18 for the hearing. An affirmative vote of not less than 11 of the
439-19 directors is required to approve a recommendation for removal. A
439-20 recommendation for removal shall be forwarded to the governor for
439-21 the governor's consideration and action in accordance with the
439-22 provisions of this subsection.
439-23 (g) Eleven members of the board constitute a quorum for the
439-24 transaction of business.
439-25 (h) The board shall adopt and may amend necessary bylaws for
439-26 the conduct of the authority's business.
440-1 (i) The board shall elect a president, one or more vice
440-2 presidents, a secretary, a treasurer, and other officers as the
440-3 board considers necessary. The president, vice presidents,
440-4 secretary, and treasurer must be members of the board, but other
440-5 officers are not required to be members of the board. The offices
440-6 of secretary and treasurer may be combined, and the offices of
440-7 assistant secretary and assistant treasurer may be combined.
440-8 Sec. 268.007. INTEREST IN CONTRACT. A director who has a
440-9 financial interest in a contract to be executed by the authority
440-10 for the purchase, sale, lease, rental, or supply of property,
440-11 including supplies, materials, and equipment, or the construction
440-12 of facilities shall disclose that fact to the other directors and
440-13 may not vote on or participate in discussions during board meetings
440-14 on the acceptance of the contract. A financial interest of a
440-15 director does not affect the validity of a contract if the
440-16 disclosure is made and the director with the financial interest
440-17 does not vote on the question of entering into the contract.
440-18 Sec. 268.008. DIRECTOR COMPENSATION. (a) A director is
440-19 entitled to receive an allowance in an amount not exceeding that
440-20 provided under the general law of the state and reimbursement for
440-21 actual and necessary expenses incurred:
440-22 (1) for each day the director spends attending
440-23 meetings of the board; and
440-24 (2) for each day the director spends attending to the
440-25 business of the authority that is authorized by the board.
440-26 (b) A director is not entitled to receive a per diem
441-1 allowance for more than 50 days in any one calendar year.
441-2 Sec. 268.009. COMMITTEES. The board may appoint or
441-3 establish an executive committee and appoint or provide for the
441-4 appointment of other committees as necessary or desirable to assist
441-5 in conducting the business of the authority. Subject to the
441-6 applicable rules of law on delegation of powers, the board may
441-7 assign, delegate, or provide for the assignment or delegation of
441-8 any powers, duties, and functions to its committees as the board
441-9 may prescribe. If a committee member is not a director, the
441-10 committee member may not vote on matters coming before the
441-11 committee unless specifically authorized by the board.
441-12 Sec. 268.010. EXECUTIVE DIRECTOR. (a) The board may employ
441-13 an executive director and set the salary and other compensation of
441-14 the executive director by a majority vote of the board.
441-15 (b) The executive director is the chief executive officer of
441-16 the authority. Under policies determined by the board and the
441-17 executive committee, if such a committee is established under
441-18 Section 268.009, the executive director is responsible to the board
441-19 and the executive committee, if established, for:
441-20 (1) administering the directives of the board and the
441-21 executive committee;
441-22 (2) keeping the authority's records, including minutes
441-23 of meetings of the board and the executive committee;
441-24 (3) coordinating with state, federal, and local
441-25 agencies;
441-26 (4) developing plans and programs for the approval of
442-1 the board or the executive committee;
442-2 (5) hiring, supervising, training, and discharging the
442-3 authority's employees, as authorized by the board or the executive
442-4 committee;
442-5 (6) contracting for or retaining technical,
442-6 scientific, legal, fiscal, and other professional services, as
442-7 authorized by the board or the executive committee; and
442-8 (7) performing any other duties assigned to the
442-9 executive director by the board or the executive committee.
442-10 (c) The board may discharge the executive director on a
442-11 majority vote of the board.
442-12 Sec. 268.011. DIRECTOR AND EMPLOYEE BONDS. (a) The
442-13 executive director, the treasurer, and other officers, agents, and
442-14 employees of the authority charged with the collection, custody, or
442-15 payment of any money of the authority shall execute a fidelity
442-16 bond. The board shall approve the form, amount, and surety of the
442-17 bond.
442-18 (b) The authority shall pay the premiums on the bonds
442-19 required under this section and the director bonds required under
442-20 Section 268.006(d).
442-21 Sec. 268.012. PRINCIPAL OFFICE. The authority shall
442-22 maintain its principal office within its boundaries.
442-23 Sec. 268.013. RECORDS. (a) The authority shall keep
442-24 complete and accurate accounts of its business transactions in
442-25 accordance with generally accepted methods of accounting.
442-26 (b) The authority shall keep complete and accurate minutes
443-1 of its meetings.
443-2 (c) The authority shall keep its accounts, contracts,
443-3 documents, minutes, and other records at its principal office.
443-4 (d) Except as otherwise required by law, the authority shall
443-5 not disclose any records that it has relating to trade secrets or
443-6 economics of operation of any business or industry.
443-7 (e) Except as provided in Subsection (d), the authority
443-8 shall permit reasonable public inspection of its records during
443-9 regular business hours.
443-10 Sec. 268.014. SEAL. The authority shall adopt a seal, the
443-11 form of which it may alter from time to time.
443-12 Sec. 268.015. SUIT. The authority may sue and be sued in
443-13 its corporate name.
443-14 Sec. 268.016. GENERAL POWERS AND DUTIES. (a) The authority
443-15 shall administer this chapter and shall use its facilities and
443-16 powers to accomplish the purposes of this chapter.
443-17 (b) The authority shall have and may exercise all powers,
443-18 rights, and privileges necessary or convenient for accomplishing
443-19 the purposes of this chapter.
443-20 (c) The powers granted to the authority by this chapter are
443-21 cumulative of all powers granted by other laws that are by their
443-22 terms applicable to the authority.
443-23 Sec. 268.017. CONTROL AND EMPLOYMENT OF WATERS.
443-24 (a) Subject to the constitution and other laws of the state and
443-25 the continuing right of supervision of the state through the
443-26 commission, the authority has and may exercise authority and power
444-1 over the storm water and floodwater of the Nueces River Basin,
444-2 subject to the applicable provisions of Chapters 11 and 12.
444-3 (b) Subject to Chapters 11 and 12, the authority may
444-4 exercise the powers of control and employment of the state's water
444-5 in the following manner and for the following purposes:
444-6 (1) to provide for the control and coordination of
444-7 water use in the Nueces River Basin as a unit;
444-8 (2) to provide by adequate organization and
444-9 administration for the preservation of the rights of the people of
444-10 the different sections of the Nueces River Basin in the beneficial
444-11 use of water;
444-12 (3) to provide for conserving storm water, floodwater,
444-13 and unappropriated flow water of the Nueces River Basin, including
444-14 storing, controlling, transporting, treating, and distributing the
444-15 water, for preventing the escape of the water without the maximum
444-16 of public service, preventing the devastation of land from
444-17 recurrent overflows, and protecting life and property in the river
444-18 basin from uncontrolled floodwater;
444-19 (4) to provide for the conservation of water essential
444-20 for domestic and other water uses of the people of the Nueces River
444-21 Basin, including all necessary water supplies for cities, towns,
444-22 and industrial districts;
444-23 (5) to provide for the irrigation of land in the
444-24 Nueces River Basin where irrigation is required for agricultural
444-25 purposes or may be deemed helpful to more profitable agricultural
444-26 production and to provide for the equitable distribution of storm
445-1 water, floodwater, and unappropriated flow water to the regional
445-2 potential requirements for all uses;
445-3 (6) to provide for the encouragement and development
445-4 of drainage systems and provisions for drainage of land in the
445-5 valleys of the Nueces River and its tributaries needing drainage
445-6 for profitable agricultural and livestock production and industrial
445-7 activities and drainage of other land in the watershed area of the
445-8 authority requiring drainage for the most advantageous use;
445-9 (7) to provide for the conservation of all soils
445-10 against destructive erosion, thereby preventing the increased flood
445-11 dangers caused by destructive erosion;
445-12 (8) to control and make available for employment
445-13 floodwater, storm water, and unappropriated flow water, as
445-14 authorized by the commission, in the development of commercial and
445-15 industrial enterprises in all sections of the watershed area of the
445-16 authority;
445-17 (9) to provide, as set forth by Chapters 11 and 12,
445-18 for the control, storage, and employment of floodwater, storm
445-19 water, and unappropriated flow water in the development and
445-20 distribution of hydroelectric power where this use may be
445-21 economically coordinated with other and superior uses and
445-22 subordinated to the uses declared by law to be superior; and
445-23 (10) to provide, in the manner set forth in Chapters
445-24 11 and 12, for each purpose and use for which floodwater, storm
445-25 water, and unappropriated flow water when controlled and conserved
445-26 may be used in the performance of a useful service as contemplated
446-1 and authorized by the provisions of the constitution and other
446-2 laws.
446-3 (c) Subject to Chapters 11 and 12, the authority may
446-4 control, store, and preserve the water of the Nueces River and its
446-5 tributaries within the boundaries of the authority for any useful
446-6 purpose, may use, distribute, and sell the water for any beneficial
446-7 purpose inside and outside the authority, and may acquire water and
446-8 water rights inside and outside the authority.
446-9 (d) Plans and works provided by the authority and works
446-10 provided under authorization of the authority should give primary
446-11 consideration to the necessary and potential needs for water by or
446-12 within the respective areas constituting the watershed of the
446-13 Nueces River and its tributary streams.
446-14 Sec. 268.018. FORESTATION AND REFORESTATION. The authority
446-15 may forest, reforest, and aid in the foresting and reforesting of
446-16 the watershed area of the Nueces River and its tributaries.
446-17 Sec. 268.019. GROUNDWATER. (a) The authority may conduct
446-18 surveys and studies of the groundwater supplies in the authority
446-19 for the purpose of determining the location and quantity of
446-20 groundwater available for irrigation and other purposes and to
446-21 develop and ascertain other data and information that in the
446-22 judgment of the authority may be necessary to fully develop
446-23 irrigation and other water uses from the groundwater in the
446-24 authority.
446-25 (b) Subject to the requirements of applicable laws and with
446-26 the approval and under the supervision of the commission, the
447-1 authority may appropriate storm water and floodwater to recharge
447-2 underground freshwater-bearing sand and aquifers in the Nueces
447-3 River Basin.
447-4 (c) The authority shall cooperate with the Edwards Aquifer
447-5 Authority, or its lawful successor, and any other groundwater
447-6 district within the boundaries of the authority in groundwater
447-7 recharge projects in areas where a groundwater district has
447-8 jurisdiction.
447-9 Sec. 268.020. WATER QUALITY CONTROL. (a) The authority has
447-10 and may exercise all the powers granted to river authorities under
447-11 Subchapters E and F, Chapter 17, and Chapters 26 and 30.
447-12 (b) The authority may serve as the entity to provide
447-13 regional or areawide waste collection, treatment, and disposal
447-14 services, as provided by Subchapter C, Chapter 26.
447-15 Sec. 268.021. SOLID WASTE. The authority may purchase,
447-16 acquire, construct, maintain, and provide facilities, equipment,
447-17 and disposal sites to furnish solid waste collection,
447-18 transportation, treatment, and disposal services inside the
447-19 authority, may charge for the services, and may enter into
447-20 contracts for the services with any person.
447-21 Sec. 268.022. PARKS AND RECREATIONAL FACILITIES. The
447-22 authority may acquire land adjacent to or in the vicinity of the
447-23 Nueces River or any of its tributaries for park and recreational
447-24 purposes and may acquire, construct, and maintain park and
447-25 recreational facilities on that land.
447-26 Sec. 268.023. PERMITS AND LICENSES. (a) In the manner
448-1 provided by Chapters 11 and 12, the authority shall apply for any
448-2 permits, licenses, franchises, and other grants of authority it may
448-3 require from the commission.
448-4 (b) The authority may apply for any permits, licenses,
448-5 franchises, and other grants of authority it may require from the
448-6 Texas Water Development Board or any other federal, state, or local
448-7 governmental agency to exercise its powers and accomplish the
448-8 purposes under this chapter.
448-9 Sec. 268.024. SERVICE CONTRACTS AND CHARGES. (a) The
448-10 authority may enter into service contracts and may adopt
448-11 resolutions and orders establishing rates and providing for the
448-12 collection of fees and charges for the sale or use of water, the
448-13 services of water transmission, treatment, and storage facilities,
448-14 solid and liquid waste collection, treatment, and disposal
448-15 facilities and services, the use of park and recreational
448-16 facilities, the sale of power and electric energy, and any other
448-17 services or facilities sold, furnished, or supplied by the
448-18 authority.
448-19 (b) The fees and charges shall be sufficient to produce
448-20 revenue adequate to pay:
448-21 (1) expenses necessary for the operation and
448-22 maintenance of the properties and facilities of the authority;
448-23 (2) the interest on or the principal of any bonds or
448-24 other obligations issued by the authority when due and payable and
448-25 to fulfill any reserve or other fund obligations of the authority
448-26 in connection with the bonds or other obligations; and
449-1 (3) any other expenses the board may consider
449-2 necessary and proper for the operations of the authority.
449-3 Sec. 268.025. EMINENT DOMAIN. The authority may acquire
449-4 property of any kind, within or outside the authority, appropriate
449-5 for the exercise of its functions, through the exercise of the
449-6 power of eminent domain under Chapter 21, Property Code.
449-7 Sec. 268.026. ACQUISITION AND DISPOSITION OF PROPERTY.
449-8 (a) The authority may purchase, lease, acquire by gift, maintain,
449-9 use, and operate property of any kind, inside or outside the
449-10 authority, appropriate for the exercise of its functions.
449-11 (b) The authority may sell any property or interest in any
449-12 property owned by the authority by installments or otherwise,
449-13 including sales in a manner prescribed or authorized by Section
449-14 402.014, Local Government Code, Chapter 383, Health and Safety
449-15 Code, and Chapter 30. The authority may lease, exchange, or
449-16 otherwise dispose of any property or interest in any property.
449-17 Sec. 268.027. FACILITIES. The authority may acquire,
449-18 construct, extend, improve, maintain, reconstruct, use, and operate
449-19 any facilities inside or outside the authority necessary or
449-20 convenient to the exercise of its powers, rights, duties, and
449-21 functions.
449-22 Sec. 268.028. USE OF PUBLIC EASEMENTS. The authority may
449-23 use any public roadways, streets, alleys, or public easements
449-24 inside or outside the boundaries of the authority in the
449-25 accomplishment of its purposes without the necessity of securing a
449-26 franchise.
450-1 Sec. 268.029. RELOCATION OF FACILITIES. (a) If the
450-2 authority, in the exercise of the power of eminent domain, power of
450-3 relocation, or any other power, necessitates the relocation,
450-4 raising, rerouting, change in grade, or alteration of the
450-5 construction of any highway, railroad, electric transmission line,
450-6 telephone or telegraph properties and facilities, or pipelines, all
450-7 necessary relocation, raising, rerouting, change in grade, or
450-8 alteration of construction shall be accomplished at the sole
450-9 expense of the authority.
450-10 (b) In this section, "sole expense" means the actual cost of
450-11 the relocation, raising, rerouting, change in grade, or alteration
450-12 of grade or construction in providing a comparable replacement
450-13 without any enhancement of the facilities, after deducting the net
450-14 salvage value derived from the old facility.
450-15 Sec. 268.030. CONTRACTS GENERALLY. (a) The authority may
450-16 enter into contracts and execute instruments that are necessary or
450-17 convenient to the exercise of its powers, rights, duties, and
450-18 functions.
450-19 (b) A construction, maintenance, operation, or repair
450-20 contract, a contract for the purchase of material, equipment, or
450-21 supplies, or a contract for services, other than technical,
450-22 scientific, legal, fiscal, or other professional services, that
450-23 will require an estimated expenditure of more than $10,000 or is
450-24 for a term of six months or more shall be awarded to the lowest and
450-25 best bidder. A notice to bidders shall be published once each week
450-26 for three consecutive weeks before the date set for awarding the
451-1 contract. In the event of a catastrophe or calamity of any kind,
451-2 the authority may award contracts necessary to protect and preserve
451-3 the public health and welfare or the properties of the authority
451-4 without using the bidding procedures.
451-5 (c) The notice of bids is sufficient if it states the time
451-6 and place the bids will be opened, the general nature of the work
451-7 to be done, the material, equipment, or supplies to be purchased,
451-8 or the nonprofessional services to be rendered and states the terms
451-9 on which copies of the plans, specifications, or other pertinent
451-10 information may be obtained.
451-11 (d) Notice shall be published in a newspaper with general
451-12 circulation in the county or counties in which the contract is to
451-13 be performed and may also be published in any other appropriate
451-14 publication.
451-15 (e) A person who desires to bid on the construction of any
451-16 work that is advertised shall, on written application to the
451-17 authority, be furnished a copy of the plans and specifications or
451-18 other engineering and architectural documents showing the work to
451-19 be done and all the details of the work to be done. The authority
451-20 may charge a fee to cover the cost of making the copy. Bids must
451-21 be in writing, sealed, and delivered to the authority and must be
451-22 accompanied by a certified check on a responsible bank in the state
451-23 or, at the discretion of the authority, a bid bond from a company
451-24 approved by the authority, for at least one percent of the total
451-25 amount bid. The check or bond is forfeited to the authority if the
451-26 successful bidder fails or refuses to enter into a proper contract
452-1 or fails or refuses to furnish bond as required by law. Bids may
452-2 be rejected by the authority, and the authority may waive any
452-3 informality in the bids.
452-4 (f) Bids shall be opened at the place specified in the
452-5 published notice and shall be announced by the authority. The
452-6 place where the bids are opened and announced shall always be open
452-7 to the public. The award of the contract shall be made by the
452-8 board or by the executive committee if authorized by the board.
452-9 (g) The contract price of all construction contracts of the
452-10 authority may be paid in partial payments as the work progresses,
452-11 but the payments shall not exceed 90 percent of the amount due at
452-12 the time of the payment as shown by the report of the engineer of
452-13 the authority. At all times during the progress of the work, the
452-14 executive director shall inspect the construction or have the
452-15 construction inspected by the authority's engineer or the
452-16 engineer's assistants. On certification of the executive director
452-17 and the authority's engineer of the completion of the contract in
452-18 accordance with its terms, and in the case of any construction
452-19 contract for which notice to bidders is required by Subsection (b),
452-20 on approval of the board, the authority shall draw a warrant on its
452-21 depository to pay the balance due on the contract.
452-22 (h) The person, firm, or corporation to whom the contract is
452-23 awarded shall provide the performance and payment bonds required by
452-24 law.
452-25 (i) This section does not prohibit the authority from
452-26 purchasing or acquiring land or interests in land from any person,
453-1 from acquiring, constructing, or improving pollution control or
453-2 waste collection and disposal facilities as provided by Chapter
453-3 383, Health and Safety Code, Chapter 30, or other applicable laws,
453-4 or from purchasing or acquiring surplus property from a
453-5 governmental entity by negotiated contract and without necessity
453-6 for advertising bids.
453-7 (j) An officer, agent, or employee of the authority who is
453-8 financially interested in a contract described in Subsection (b)
453-9 shall disclose that fact to the board before the board votes on the
453-10 acceptance of the contract.
453-11 Sec. 268.031. AUTHORITY RULES. (a) The authority may adopt
453-12 and enforce rules reasonably required to effectuate the provisions
453-13 of this chapter.
453-14 (b) In adopting rules, the board shall comply, as
453-15 appropriate, with the requirements of Chapter 2001, Government
453-16 Code.
453-17 (c) The board shall print its rules and furnish copies to
453-18 any person on written request.
453-19 Sec. 268.032. PENALTIES. (a) A person who violates a rule
453-20 or order of the authority is subject to a civil penalty of not less
453-21 than $50 and not more than $1,000 for each day of violation. The
453-22 authority may sue to recover the penalty in a district court in the
453-23 county where the violation occurred. Penalties shall be paid to
453-24 the authority.
453-25 (b) The authority may sue for injunctive relief in a
453-26 district court in the county where a violation of a rule or order
454-1 occurred or is threatened.
454-2 (c) The authority may sue for injunctive relief and
454-3 penalties in the same proceeding.
454-4 Sec. 268.033. JUDICIAL REVIEW. (a) A person who is
454-5 adversely affected by a rule or order of the authority may sue the
454-6 authority in a district court to set aside the rule or order before
454-7 the 31st day after the date on which the rule or order took effect.
454-8 (b) Venue for suits under Subsection (a) is in any county
454-9 located wholly or partially in the authority where the plaintiff
454-10 resides or in the county in which the authority maintains its
454-11 principal office.
454-12 Sec. 268.034. SURVEYS AND ENGINEERING INVESTIGATIONS. The
454-13 authority shall make surveys and engineering investigations to
454-14 develop information for its use, and the board may make and
454-15 determine plans necessary to accomplish the purposes for which the
454-16 authority is created and do all things useful and helpful in
454-17 carrying out the plans and accomplishing the purposes of the
454-18 authority.
454-19 Sec. 268.035. ACCESS. (a) To provide for the safety and
454-20 welfare of persons and their property or for the protection and
454-21 security of the property and facilities of the authority, the board
454-22 may adopt rules with respect to the properties of the authority and
454-23 any water reservoir or dam, the construction, operation, or
454-24 management of which is participated in by the authority, to control
454-25 and regulate ingress, egress, and use and the operation of land and
454-26 water vehicles.
455-1 (b) All public roads, streets, and state highways crossing
455-2 the areas adjacent to the areas to be covered by any impounded
455-3 water shall remain open to allow public access to and from the
455-4 lakes created, unless a change is made by lawful authority.
455-5 Sec. 268.036. USE OF BED AND BANKS OF NUECES RIVER AND
455-6 TRIBUTARIES. Subject to the approval of the commission, the
455-7 authority may use the bed and banks of the Nueces River and its
455-8 tributaries for any purpose necessary to accomplish the plans of
455-9 the authority for storing, controlling, conserving, transporting,
455-10 and distributing storm waters, floodwaters, and appropriated flow
455-11 waters for useful purposes.
455-12 Sec. 268.037. PROTECTION OF NATURAL CONDITION OF BEDS AND
455-13 BANKS OF STATE-OWNED WATERCOURSES. (a) The authority may adopt
455-14 and enforce rules to protect the natural condition of the
455-15 state-owned beds and banks of the watercourses within the
455-16 authority's boundaries against disturbance of their beds and banks
455-17 by limiting or prohibiting vehicular access and the use of
455-18 vehicles, except by owners of the adjacent uplands and the owners'
455-19 agents, employees, representatives, and lessees for reasonable
455-20 purposes related to usual and customary agricultural operations
455-21 conducted only in those reaches of the watercourse adjacent to the
455-22 owner's property. The authority in its rules may also prohibit
455-23 within the state-owned beds and banks of the watercourses
455-24 littering, destruction of aquatic habitat, pollution, and
455-25 activities endangering the public safety. In adopting rules, the
455-26 board shall comply, as appropriate, with the requirements of
456-1 Chapter 2001, Government Code.
456-2 (b) Nothing in this section is intended to or shall affect
456-3 such use of the beds and banks of the watercourses for emergency or
456-4 rescue operations or for activities specifically authorized by the
456-5 state or its political subdivisions acting pursuant to state law.
456-6 (c) A violation of the rules adopted pursuant to this
456-7 section is a Class B misdemeanor. Actions for violations of the
456-8 rules may be brought under this section or under Section
456-9 268.032(a). The authority may also seek injunctive relief as
456-10 provided in Section 268.032 for enforcement of rules.
456-11 (d) The authority may contract for, employ, or appoint peace
456-12 officers in the manner provided in Section 49.216 to enforce the
456-13 rules within the state-owned beds and banks of the watercourses
456-14 within the authority's boundaries.
456-15 Sec. 268.038. MASTER PLAN. (a) The authority shall prepare
456-16 and file with the commission a master plan for the maximum
456-17 development of the soil and water resources of the entire Nueces
456-18 River watershed, including plans for the complete utilization, for
456-19 all economically beneficial purposes, of the water resources of the
456-20 watershed. The authority may amend the master plan as appropriate
456-21 to accomplish the purposes of this section.
456-22 (b) After the master plan or any amendments to the plan have
456-23 been filed with the commission, notice of the application of a
456-24 person who desires to acquire the right to use state water in the
456-25 Nueces River watershed shall be furnished to the authority. After
456-26 public hearing as provided by law, the commission may grant or deny
457-1 the proposed application in the manner required by law,
457-2 notwithstanding any provisions of the master plan or any amendments
457-3 to the plan to the contrary.
457-4 (c) Works constructed by the authority shall be constructed
457-5 and operated in a manner conforming to the master plan and any
457-6 amendments to the plan to the greatest degree practicable.
457-7 (d) None of the provisions of this section shall be
457-8 construed to interfere with any improvement of the Nueces River or
457-9 its tributaries or with grants or loans in aid of any improvement
457-10 made by the United States or the state.
457-11 Sec. 268.039. CONSERVATION PROGRAM. The board shall adopt
457-12 and implement a program of water conservation that incorporates
457-13 practices, techniques, and technologies that will reduce the
457-14 consumption of water, reduce the loss or waste of water, improve
457-15 the efficiency in the use of water, or increase the recycling and
457-16 reuse of water so that a water supply is made available for future
457-17 or alternative uses. The commission determines whether a program
457-18 will meet reasonably anticipated local needs and conditions.
457-19 Sec. 268.040. WORK WITH TEXAS WATER DEVELOPMENT BOARD. The
457-20 authority has all the powers vested in political subdivisions under
457-21 Chapters 16 and 17, including the powers necessary to enable the
457-22 authority to participate in the programs administered by the Texas
457-23 Water Development Board for the acquisition and development of
457-24 facilities, the sale or lease of facilities, financial assistance
457-25 to political subdivisions, and other authorized programs.
457-26 Sec. 268.041. GENERAL PROVISIONS. (a) The board may
458-1 provide for any expenditures it considers essential or useful in
458-2 the maintenance, operation, and administration of the authority.
458-3 (b) The authority may perform any other acts necessary or
458-4 convenient to the exercise of the powers, rights, privileges, or
458-5 functions conferred by this chapter or other laws.
458-6 Sec. 268.042. LIMITATIONS ON AUTHORITY AND SUPERVISION BY
458-7 COMMISSION. (a) The powers and duties granted and prescribed by
458-8 this chapter are subject to all legislative declarations of public
458-9 policy in the maximum use of the storm water, floodwater, and
458-10 unappropriated flow water of the Nueces River Basin for the
458-11 purposes for which the authority is created and are subject to the
458-12 continuing right of supervision of the state through the
458-13 commission.
458-14 (b) The commission is charged with the authority and duty to
458-15 approve or refuse to approve the adequacy of a plan for flood
458-16 control or conservation improvement purposes that is devised by the
458-17 authority for the achievement of the plans and purposes intended in
458-18 the creation of the authority and that contemplates improvements
458-19 supervised by the commission under the provisions of the general
458-20 law.
458-21 Sec. 268.043. CLEAN AIR FINANCING POWERS. In addition to
458-22 the powers and functions vested in the authority by this chapter,
458-23 the authority has and may exercise all the powers and functions
458-24 vested in river authorities under Chapter 383, Health and Safety
458-25 Code.
458-26 Sec. 268.044. DISBURSEMENT OF FUNDS. The authority may
459-1 disburse money only by check, draft, order, or other instrument,
459-2 signed by the person or persons authorized in the bylaws of the
459-3 board or by resolution of the board.
459-4 Sec. 268.045. FEES AND CHARGES. The authority shall
459-5 establish fees and charges that may not be higher than necessary to
459-6 fulfill the obligations imposed on the authority by this chapter.
459-7 Sec. 268.046. LOANS AND GRANTS. (a) The authority may
459-8 borrow money and accept grants and donations for corporate purposes
459-9 from private sources, the United States, the state, local
459-10 governments, or any other person. The authority may enter into any
459-11 agreement in connection with the loan, grant, or donation that is
459-12 not in conflict with the constitution and laws of this state.
459-13 (b) The source of any funds accepted by the authority,
459-14 including the amount and any restrictions placed by the donor on
459-15 the expenditure of the funds, shall be public information.
459-16 Sec. 268.047. FUNDS FOR SURVEYS AND DATA COLLECTION. The
459-17 authority may apply to the state, the United States, or any other
459-18 person for funds necessary to secure engineering surveys and the
459-19 compilation and collection of data relating to regional and general
459-20 conditions entering into and influencing the character and the
459-21 extent of the improvements necessary to accomplish the storage,
459-22 control, transportation, treatment, conservation, and equitable
459-23 distribution to the greatest public advantage of the floodwater,
459-24 normal flow, and storm water that are stored and controlled and to
459-25 accomplish or carry out any of the other purposes of this chapter.
459-26 The authority shall request an amount of funds the authority
460-1 considers sufficient for its purposes and may make the necessary
460-2 agreements with the party providing the funds and may appropriate
460-3 the amount of the estimated equitable contribution of the costs of
460-4 developing essential engineering data.
460-5 Sec. 268.048. TRUST FUND. Money collected by or donated,
460-6 granted, loaned, or advanced to the authority is declared to be
460-7 trust fund money for the purposes provided in this chapter.
460-8 Sec. 268.049. USE OF REVENUE AND PROPERTY. (a) All revenue
460-9 accruing to the authority shall be used by the authority pursuant
460-10 to this chapter and any other law relating to the authority.
460-11 (b) The use of any money or property of the authority for
460-12 any purpose not provided in this chapter is prohibited.
460-13 Sec. 268.050. INVESTMENT OF FUNDS. (a) Funds in the
460-14 treasury of the authority that are not required for current payment
460-15 of obligations of the authority or for sinking funds and that the
460-16 board considers available for investment may be invested or
460-17 reinvested by the authority in:
460-18 (1) direct obligations of or obligations the principal
460-19 and interest of which are guaranteed by the United States;
460-20 (2) direct obligations of or participation
460-21 certificates guaranteed by the Federal Intermediate Credit Banks,
460-22 Federal Land Banks, Federal National Mortgage Association, Federal
460-23 Home Loan Banks, Banks for Cooperatives, or the successor or
460-24 successors to any of those entities and in certificates of deposit
460-25 of any bank or trust company the deposits of which are fully
460-26 secured by a pledge of securities of any of the kind specified in
461-1 this subdivision;
461-2 (3) any other securities made eligible for such
461-3 investment by other laws and constitutional provisions; or
461-4 (4) any combination of the obligations, certificates,
461-5 or securities specified in this subsection.
461-6 (b) The type and maturity of investments made under this
461-7 section shall be determined by the board, which, in the case of
461-8 funds established in connection with the authorization of bonds,
461-9 shall provide appropriate recitals with regard to the issuance of
461-10 the bonds in the resolutions relating to the issuance of the bonds.
461-11 Income and profits on the investments shall be applied as directed
461-12 by the board.
461-13 Sec. 268.051. AUDIT. (a) The fiscal year of the authority
461-14 ends on August 31 of each year.
461-15 (b) On or before January 1 following the close of each
461-16 fiscal year, the state auditor shall audit the books and accounts
461-17 of the authority for the preceding fiscal year. The audit shall
461-18 show the amount of money received by the authority under this
461-19 chapter during the preceding fiscal year and shall show how, to
461-20 whom, and for what purpose the money was spent.
461-21 (c) A copy of the audit report shall be filed with the
461-22 authority, the governor, the lieutenant governor, the speaker of
461-23 the house of representatives, the attorney general, the commission,
461-24 and the comptroller.
461-25 (d) After completing the audit report, the state auditor
461-26 shall prepare a statement showing the actual cost of the audit and
462-1 shall certify the statement to the governor for approval. When the
462-2 statement is approved by the governor, it shall be delivered to the
462-3 authority. The authority shall pay the cost of the audit by
462-4 depositing the money with the state treasurer, who shall place the
462-5 money in the general revenue fund.
462-6 (e) Nothing in this section shall prohibit the authority
462-7 from employing the professional services of accountants for any
462-8 purpose.
462-9 Sec. 268.052. DEPOSITORY BANKS. (a) The board shall
462-10 designate one or more banks inside or outside the authority to
462-11 serve as depository for the funds of the authority. All money of
462-12 the authority shall be deposited in the depository bank or banks
462-13 except that bond proceeds, money pledged to pay bonds, money placed
462-14 in special funds, and money remitted to a bank of payment for the
462-15 payment of principal of and interest on bonds may be handled as
462-16 provided in a trust indenture or bond resolution. To the extent
462-17 that funds in the depository banks or a trustee bank are not
462-18 invested or insured by the Federal Deposit Insurance Corporation,
462-19 the funds shall be secured in the manner provided by law for the
462-20 security of county funds.
462-21 (b) Before designating a depository bank or banks, the board
462-22 shall issue a notice stating the time and place the board will meet
462-23 for that purpose and inviting the banks in the authority to submit
462-24 applications to be designated depositories. The term of service
462-25 for depositories shall be prescribed by the board. The notice
462-26 shall be published one time in a newspaper or newspapers of general
463-1 circulation in the authority specified by the board. In lieu of
463-2 the publication in a newspaper, a copy of the notice may be mailed
463-3 to each bank in the authority.
463-4 (c) At the time mentioned in the notice, the board shall
463-5 consider the applications and the management and condition of the
463-6 banks filing them and shall designate as depositories the bank or
463-7 banks that offer the most favorable terms and conditions for the
463-8 handling of the funds of the authority, that the board finds have
463-9 proper management, and that are in condition to warrant handling of
463-10 authority funds. Membership on the board of an officer or director
463-11 of a bank shall not disqualify the bank from being designated a
463-12 depository.
463-13 (d) If no applications are received by the time stated in
463-14 the notice, the board shall designate a bank or banks inside or
463-15 outside the authority on terms and conditions the authority finds
463-16 advantageous.
463-17 Sec. 268.053. BONDS. (a) For the purpose of carrying out
463-18 any power or authority conferred by this chapter, including the
463-19 expense of preparing the master plan and the payment of engineering
463-20 and other expenses in connection with the master plan, the
463-21 authority may issue bonds in three general classes:
463-22 (1) bonds secured by ad valorem taxes;
463-23 (2) bonds secured by a pledge of all or part of the
463-24 revenues accruing to the authority, including revenues received
463-25 from the sale of water or other products, rendition of service,
463-26 tolls, charges, and all other sources other than ad valorem taxes;
464-1 or
464-2 (3) bonds secured by a combination pledge of all or
464-3 part of the revenues described in Subdivision (2) and taxes.
464-4 (b) The bonds must be authorized by resolution of the board
464-5 and shall be issued in the name of the authority, signed by the
464-6 president or vice president, and attested by the secretary and
464-7 shall bear the seal of the authority. If authorized by the board,
464-8 the signatures of the president or vice president and the secretary
464-9 or of both may be printed or lithographed on the bonds, and the
464-10 seal of the authority may be impressed on the bonds or may be
464-11 printed or lithographed on the bonds. The bonds must be in the
464-12 form prescribed by the board, must be in any denomination or
464-13 denominations, must mature serially or otherwise in not to exceed
464-14 50 years from their date, shall bear any interest, and may be sold
464-15 at a price and under terms determined by the board to be the most
464-16 advantageous reasonably obtainable. Within the discretion of the
464-17 board, the bonds may be made callable prior to maturity at the
464-18 times and prices prescribed in the bonds and may be made
464-19 registrable as to principal or as to both principal and interest.
464-20 The bonds may be further secured by an indenture of trust with a
464-21 corporate trustee.
464-22 (c) Bonds may be issued in more than one series, and from
464-23 time to time, as required for carrying out the purposes of this
464-24 chapter. A pledge of revenue may reserve the right, under
464-25 conditions specified in the pledge, to issue additional bonds which
464-26 will be on a parity with or subordinate to the bonds then being
465-1 issued.
465-2 (d) The resolution authorizing the bonds or the trust
465-3 indenture further securing the bonds may specify additional
465-4 provisions that shall constitute a contract between the authority
465-5 and its bondholders. The board shall have full discretion to
465-6 provide additional provisions to the resolution, including the
465-7 authority to provide for a corporate trustee or receiver to take
465-8 possession of facilities of the authority in the event of default
465-9 on the part of the authority in fulfilling the covenants made in
465-10 the resolution.
465-11 Sec. 268.054. REFUNDING BONDS. (a) The authority may issue
465-12 refunding bonds for the purpose of refunding any outstanding bonds
465-13 authorized by this chapter and interest on the bonds. The
465-14 refunding bonds may be issued to refund one or more series of
465-15 outstanding bonds and may combine the pledges for the outstanding
465-16 bonds for the security of the refunding bonds, and the refunding
465-17 bonds may be secured by other or additional revenue.
465-18 (b) The provisions of this chapter with reference to the
465-19 issuance by the authority of other bonds, their security, their
465-20 approval by the attorney general, and the remedies of the holders
465-21 shall be applicable to refunding bonds. Refunding bonds shall be
465-22 registered by the comptroller on surrender and cancellation of the
465-23 bonds to be refunded, but in lieu of such surrender and
465-24 cancellation, the resolution authorizing the issuance of the
465-25 refunding bonds may provide that the bonds shall be sold and the
465-26 proceeds deposited in the bank where the original bonds are
466-1 payable, in which case the refunding bonds may be issued in an
466-2 amount sufficient to pay the principal of and the interest on the
466-3 original bonds to their option date or maturity date, and the
466-4 comptroller shall register the refunding bonds without concurrent
466-5 surrender and cancellation of the original bonds.
466-6 Sec. 268.055. APPROVAL AND REGISTRATION OF BONDS. After any
466-7 bonds, including refunding bonds, are authorized by the authority,
466-8 the bonds and the record relating to their issuance shall be
466-9 submitted to the attorney general for examination as to the
466-10 validity of the bonds. If bonds are to be issued to finance in
466-11 whole or in part water-using facilities, the attorney general
466-12 before giving approval shall be furnished a resolution from the
466-13 commission certifying that the authority possesses the necessary
466-14 water right authorizing the authority to impound and appropriate
466-15 the water to be utilized by the project. If the bonds recite that
466-16 they are secured by a pledge of the proceeds of a contract
466-17 previously made between the authority and a city or other
466-18 governmental agency, authority, or district, a copy of the contract
466-19 and the proceedings of the city or other governmental agency,
466-20 authority, or district authorizing the contract shall also be
466-21 submitted to the attorney general. If the attorney general finds
466-22 that the bonds have been authorized and the contracts have been
466-23 made in accordance with the constitution and laws of the state, the
466-24 attorney general shall approve the bonds and the contracts and the
466-25 bonds then shall be registered by the comptroller. After approval
466-26 and registration the bonds, and the contracts, if any, are valid
467-1 and binding and are incontestable for any cause.
467-2 Sec. 268.056. BOND ELECTION REQUIREMENTS. (a) Bonds
467-3 payable wholly or partially from ad valorem taxes, except refunding
467-4 bonds, may not be issued unless authorized by an election at which
467-5 the resident electors cast a majority of the votes in favor of the
467-6 issuance of the bonds. The election shall be held in accordance
467-7 with the provisions of Section 268.058 governing ad valorem tax
467-8 elections.
467-9 (b) Bonds not payable wholly or partially from ad valorem
467-10 taxes may be issued without an election.
467-11 Sec. 268.057. ADMINISTRATION AND MAINTENANCE TAX. (a) The
467-12 board may levy and collect ad valorem taxes for the maintenance and
467-13 improvements of the authority, for administrative expenses of the
467-14 authority, or for both purposes in the amounts voted in accordance
467-15 with the election procedure in Section 268.058.
467-16 (b) The maintenance tax and administration tax shall not
467-17 exceed the maximum rate voted, and the rate shall remain in effect
467-18 unless changed by subsequent vote. The tax rate may not exceed the
467-19 limit specified in Section 268.060.
467-20 Sec. 268.058. ELECTION. An ad valorem tax may not be levied
467-21 or collected for any purpose authorized in this chapter and bonds
467-22 payable wholly or partially from ad valorem taxes, except refunding
467-23 bonds, may not be issued, unless an election is held in the
467-24 authority and the taxes or bonds are duly and favorably voted by a
467-25 majority of the resident electors of the authority voting at the
467-26 election. Each election shall be called by resolution of the
468-1 board. The election resolution shall set forth the date of the
468-2 election, the proposition to be submitted and voted on, the polling
468-3 places, and any other matters considered advisable by the board.
468-4 There shall be at least two polling places in each county that lies
468-5 wholly inside the authority, one of which shall be at the county
468-6 seat. There shall be at least one polling place in the part of
468-7 each county that lies partly inside the authority. Notice of the
468-8 election shall be given by publishing a substantial copy of the
468-9 resolution calling the election in a newspaper or newspapers of
468-10 general circulation in the authority not less than twice in each
468-11 newspaper, with the interval between the publications to be at
468-12 least one week and with the first of each of the publications to be
468-13 at least 14 days prior to the date set for the election. To the
468-14 extent consistent with this section, the election shall be held in
468-15 accordance with the provisions of the Election Code.
468-16 Sec. 268.059. RENDITION, ASSESSMENT, EQUALIZATION, LEVYING,
468-17 AND COLLECTION OF TAXES. (a) The rendition and assessment of
468-18 property for taxation, the equalization of values, and the
468-19 collection of taxes for the benefit of the authority shall be in
468-20 accordance with the law applicable to counties, to the extent that
468-21 the law can be made applicable and except as specifically provided
468-22 in this section.
468-23 (b) The board may act as the board of equalization for the
468-24 authority in all counties that lie wholly or partly in the
468-25 authority or, to the extent authorized or not prohibited by the
468-26 constitution, may delegate the equalization functions for one or
469-1 more of those counties to the county board of equalization for each
469-2 county. In either case, the board of equalization shall have the
469-3 powers, functions, and duties of the commissioners courts in
469-4 counties to equalize the property values in accordance with the law
469-5 applicable to counties, to the extent that the laws can be made
469-6 applicable. If the board delegates the equalization functions to
469-7 one or more county boards of equalization as authorized in this
469-8 subsection, the board shall review the assessments of each county
469-9 board of equalization and shall adjust the assessments as necessary
469-10 to equalize values throughout the authority. Regardless of the
469-11 method used by the authority to accomplish the equalization
469-12 functions, renditions shall be made to the county tax
469-13 assessor-collector of the county in which property contained in the
469-14 authority is located, and the tax assessor-collector of the county
469-15 shall act as the tax assessor-collector for the authority for
469-16 property in the authority located in the county.
469-17 (c) It shall be the duty of the tax assessor-collector in
469-18 each county to place on the county tax rolls the additional column
469-19 or columns needed to show the taxes levied by the authority and the
469-20 amount of the taxes, based on the value of the property as approved
469-21 and equalized by the board. The fee of each county tax
469-22 assessor-collector for assessing and collecting the taxes levied by
469-23 the authority shall be one percent of the taxes collected, to be
469-24 paid over and disbursed in each county as are other fees of office.
469-25 (d) All the laws for the enforcement of state and county
469-26 taxes shall be available to the authority. The authority shall
470-1 have the right to cause the officers of each county to enforce and
470-2 collect the taxes due the authority in that county, as provided in
470-3 the law for the enforcement of state and county taxes.
470-4 (e) Taxes assessed and levied for the benefit of the
470-5 authority shall be payable and shall become delinquent at the same
470-6 time, in the same manner, and subject to the same discount for
470-7 advance payment as taxes levied by and for the benefit of the
470-8 county in which the property is taxable. The fee for collecting
470-9 delinquent taxes through prosecution of suit shall be 15 percent of
470-10 the taxes collected by the suit, to be paid over and disbursed in
470-11 each county as are other fees of office.
470-12 (f) Concurrently with the levy of county taxes by the
470-13 commissioners courts, the board shall levy the tax on all taxable
470-14 property in the authority that is subject to taxation and shall
470-15 immediately certify the tax rate to the tax assessor-collectors of
470-16 the counties that lie wholly or partly inside the authority.
470-17 Sec. 268.060. TAX LIMIT. The maximum rate of tax that may
470-18 be levied for any year for all purposes is 15 cents on each $100 of
470-19 taxable property, based on the assessed valuation of the property.
470-20 Sec. 268.061. TAXATION IN DEFINED AREA. The authority has
470-21 and may exercise, but is not required to exercise, the powers
470-22 specified in Sections 51.510-51.530 relating to improvements
470-23 peculiar to defined areas inside the authority. The tax rate limit
470-24 specified in Section 268.060 does not apply to improvements
470-25 constructed in the exercise of the powers authorized by this
470-26 section. The taxing powers in this section are cumulative of the
471-1 other taxing powers in this chapter.
471-2 Sec. 268.062. BONDS AS LEGAL INVESTMENTS AND SECURITY FOR
471-3 DEPOSITS. Bonds and refunding bonds of the authority are legal,
471-4 eligible, and authorized investments for banks; savings and loan
471-5 associations; insurance companies; fiduciaries; trustees; the
471-6 sinking funds of cities, towns, villages, counties, school
471-7 districts, or any other political corporations or subdivisions of
471-8 the state; and all public funds of the state or its agencies,
471-9 including the state permanent school fund. Bonds and refunding
471-10 bonds are eligible to secure the deposit of all public funds of the
471-11 state, cities, towns, villages, counties, school districts, or
471-12 other political corporations or subdivisions of the state, and the
471-13 bonds are lawful and sufficient security for the deposits to the
471-14 extent of the face value of the bonds, when accompanied by all
471-15 unmatured coupons.
471-16 CHAPTER 269. RED RIVER AUTHORITY OF TEXAS
471-17 Sec. 269.001. CREATION. (a) A conservation and reclamation
471-18 district to be known as the "Red River Authority of Texas" is
471-19 created. The authority is a governmental agency and a body politic
471-20 and corporate.
471-21 (b) The authority is created under and is essential to
471-22 accomplish the purposes of Section 59, Article XVI, Texas
471-23 Constitution.
471-24 Sec. 269.002. DEFINITIONS. In this chapter:
471-25 (1) "Authority" means the Red River Authority of
471-26 Texas.
472-1 (2) "Board" means the board of directors of the
472-2 authority.
472-3 (3) "Director" means a member of the board.
472-4 Sec. 269.003. TERRITORY. (a) The area of the authority
472-5 comprises the whole of all counties in Texas lying wholly or partly
472-6 within the watershed of the Red River and its Texas tributaries
472-7 whose confluences with the Red River are upstream from the
472-8 northeast corner of Bowie County, Texas, according to contour maps
472-9 on file in the office of the Texas Water Development Board.
472-10 (b) In addition to the counties lying wholly or partly
472-11 within the watershed, the area of the authority shall also comprise
472-12 the whole of the following Texas counties: Hutchinson, Hartley,
472-13 Lamar, Lipscomb, and Red River.
472-14 (c) For the limited purpose stated in Section 269.019, the
472-15 authority shall include Bowie County. Except as provided by
472-16 Section 269.019, none of the provisions of this chapter apply to
472-17 the following counties: Delta, Hopkins, Franklin, Titus, Morris,
472-18 Cass, Marion, and Bowie.
472-19 (d) No defect or irregularity in the boundary of the
472-20 authority, or overlap or conflict of the boundary with other
472-21 authorities or districts, shall in any manner affect the validity
472-22 of the authority. The legislature finds and determines that all of
472-23 the territory comprising the authority will benefit from the
472-24 exercise of the powers, rights, privileges, and functions conferred
472-25 by this chapter.
472-26 Sec. 269.004. OVERLAPPING TERRITORY. (a) Any overlapping
473-1 of territory of the authority with the territories or watershed of
473-2 any other district or authority shall not interfere with or affect
473-3 the powers, affairs, duties, or functions of the Canadian River
473-4 Municipal Water Authority or any other district or authority.
473-5 (b) Additional districts or authorities of a local nature
473-6 and peculiar to a defined area may be created either entirely or
473-7 partly within the authority.
473-8 (c) In the prosecution of its proposed improvements, the
473-9 authority shall cooperate in every practical manner with the
473-10 sponsors of existing or proposed districts or authorities.
473-11 Sec. 269.005. BOARD OF DIRECTORS. (a) All powers of the
473-12 authority shall be exercised by a board consisting of nine
473-13 directors.
473-14 (b) A director must be a freehold property taxpayer, a legal
473-15 voter of the state, and a resident of the director district that
473-16 the director is appointed to represent.
473-17 (c) The authority is divided into three districts for the
473-18 appointment and representation of directors as follows:
473-19 (1) Director District No. 1 includes Roberts,
473-20 Hemphill, Oldham, Potter, Carson, Gray, Wheeler, Deaf Smith,
473-21 Randall, Armstrong, Donley, Collingsworth, Parmer, and Castro
473-22 counties;
473-23 (2) Director District No. 2 includes Swisher, Briscoe,
473-24 Hall, Childress, Hale, Floyd, Motley, Cottle, Hardeman, Foard,
473-25 Wilbarger, Wichita, Crosby, Dickens, King, Knox, Baylor, Archer,
473-26 and Clay counties; and
474-1 (3) Director District No. 3 includes Montague, Cooke,
474-2 Grayson, Fannin, Lamar, Red River, and Bowie counties.
474-3 (d) Three directors shall be appointed from each of the
474-4 director districts.
474-5 (e) Each director is appointed by the governor with the
474-6 advice and consent of the senate.
474-7 (f) Directors serve for staggered six-year terms, holding
474-8 office after their appointment and qualification until their
474-9 successors are appointed and have qualified. If a vacancy occurs
474-10 on the board, the vacancy is filled by the governor in the manner
474-11 provided by this section for the unexpired term.
474-12 (g) Within 15 days after appointment, each director shall
474-13 qualify by taking the official oath and filing with the secretary
474-14 of state, and obtaining the secretary of state's approval of, a
474-15 good and sufficient bond in the amount of $5,000, payable to the
474-16 authority and conditioned on the faithful performance of the
474-17 director's duties.
474-18 Sec. 269.006. OFFICERS; VOTING REQUIREMENTS; WARRANTS. The
474-19 board shall elect a president, vice president, secretary, and
474-20 treasurer. Five directors constitute a quorum at any meeting, and
474-21 a concurrence of a majority of those present is sufficient in all
474-22 matters pertaining to the business of the authority, except that
474-23 the letting of construction contracts, and the authorization of the
474-24 issuance of warrants paying such contracts, require the concurrence
474-25 of seven directors. Warrants for the payment of money may be drawn
474-26 and signed by two officers or employees designated by standing
475-1 order entered in the minutes of the authority when such accounts
475-2 have been contracted and ordered paid by the board.
475-3 Sec. 269.007. DIRECTOR AND EMPLOYEE BONDS. The board shall
475-4 require an officer or employee who collects, pays, or handles any
475-5 funds of the authority to furnish good and sufficient bond, payable
475-6 to the authority, in an amount determined by the board to be
475-7 sufficient to safeguard the authority. The bond shall be
475-8 conditioned on the faithful performance of the person's duties and
475-9 on the person's accounting for all funds and property of the
475-10 authority.
475-11 Sec. 269.008. DUTIES OF OFFICERS. The president is the
475-12 chief executive officer of the authority and presides at board
475-13 meetings. The vice president acts as president in case of the
475-14 absence or disability of the president. The secretary is
475-15 responsible for keeping a record of all proceedings and all orders
475-16 of the board. The treasurer shall receive and receipt for all
475-17 funds received and expended. In case of the absence of the
475-18 secretary or the inability of the secretary to act, a secretary pro
475-19 tempore shall be selected by the board.
475-20 Sec. 269.009. RECORDS; AUTHORITY OFFICE. Records of the
475-21 authority shall be kept in a secure manner. The records are the
475-22 property of the authority and are subject to public inspection
475-23 during regular office hours. An office shall be established and
475-24 maintained within the authority, at a place determined by the
475-25 board, for the conduct of the authority's business.
475-26 Sec. 269.010. ACCOUNT RECORDS; AUDIT. (a) The authority
476-1 shall keep a complete book of accounts, and the account books and
476-2 records of the authority and of the depository of the authority
476-3 shall be audited by a certified public accountant annually as soon
476-4 as practicable after the end of the authority's fiscal year.
476-5 (b) The audit required by this section shall cover a fiscal
476-6 year ending September 30 of each year and a report on the audit
476-7 shall be submitted at the first regular meeting of the board after
476-8 the end of the fiscal year. A copy shall be filed in the office of
476-9 the authority, the depository of the authority, the office of the
476-10 auditor, and the commission and shall be open to public inspection.
476-11 Sec. 269.011. DIRECTOR FEES. (a) A director is entitled to
476-12 receive a fee not to exceed $25 per day for each day of service
476-13 necessary to the discharge of the director's duties, in addition to
476-14 all traveling expenses, provided the service is authorized by the
476-15 board.
476-16 (b) The directors shall file with the secretary on the last
476-17 day of each month, or as soon after that date as practicable, a
476-18 verified statement showing the actual amount of the fees due, and
476-19 warrants shall be issued for those amounts.
476-20 Sec. 269.012. GENERAL MANAGER AND EMPLOYEES. (a) The board
476-21 may employ a general manager for the authority and may delegate to
476-22 the general manager full authority to manage and operate the
476-23 affairs of the authority subject only to orders of the board. The
476-24 general manager's term of office and compensation shall be
476-25 determined by the board.
476-26 (b) The terms of employment and compensation of all
477-1 authority employees shall be determined by the board.
477-2 (c) A director may be employed as general manager of the
477-3 authority, but the compensation of a general manager who also
477-4 serves as a director shall be determined by a majority of the other
477-5 directors. A director who is employed as the general manager of
477-6 the authority shall continue to perform the duties of a director
477-7 but may not receive compensation as a director.
477-8 Sec. 269.013. SURETY BONDS. All bonds required to be given
477-9 by directors, officers, and employees of the authority shall be
477-10 executed by a surety company authorized to do business in this
477-11 state. The premiums on such bonds shall be paid by the authority.
477-12 Sec. 269.014. CONFLICT OF INTEREST; PENALTY. A director,
477-13 engineer, or employee of the authority may not be interested,
477-14 directly or indirectly, either for themselves or as agents for
477-15 anyone else, in any contract for the purchase of materials or the
477-16 construction of work by the authority. If a director, engineer, or
477-17 employee becomes interested, directly or indirectly, in such a
477-18 contract, the person shall be guilty of a misdemeanor and on
477-19 conviction shall be punished by a fine not to exceed $1,000, by
477-20 confinement in the county jail for not less than six months or more
477-21 than one year, or by both fine and imprisonment.
477-22 Sec. 269.015. GENERAL POWERS AND DUTIES. (a) The authority
477-23 shall have all the powers of the state under Section 59, Article
477-24 XVI, Texas Constitution, to effectuate flood control and the
477-25 conservation and use, for all beneficial purposes, of the storm
477-26 waters, floodwaters, and unappropriated waters of the Red River
478-1 watershed and its Texas tributaries, subject only to:
478-2 (1) declarations of policy by the legislature as to
478-3 use of water;
478-4 (2) continuing supervision and control by the
478-5 commission or any successor agency;
478-6 (3) the provisions of Section 11.024 prescribing the
478-7 priorities of uses of water; and
478-8 (4) water rights legally acquired at any time by
478-9 municipalities and other users.
478-10 (b) The authority shall exercise the powers described by
478-11 this section, to the greatest practicable extent, for the
478-12 conservation and beneficial utilization of the storm waters,
478-13 floodwaters, and unappropriated waters of the Red River watershed
478-14 and its Texas tributaries in the manner and for the purposes
478-15 specified in this section and in this chapter, including the power
478-16 to:
478-17 (1) provide for the study, correcting, and control of
478-18 both artificial and natural pollution of the Red River and its
478-19 tributaries;
478-20 (2) provide, through all practical and legal means,
478-21 for the control, conservation, and orderly development of the
478-22 watershed and water of the Red River and its Texas tributaries;
478-23 (3) provide for the preservation of the equitable
478-24 rights and beneficial use of the waters of the Red River and its
478-25 Texas tributaries for the people of the different sections of the
478-26 authority;
479-1 (4) provide for storing, controlling, and conserving
479-2 the waters of the Red River and its Texas tributaries in order to
479-3 prevent the escape of any of such waters without the maximum of
479-4 public service, prevent the devastation of lands from recurrent
479-5 overflows, and protect life and property in the watershed areas
479-6 from uncontrolled floodwaters;
479-7 (5) provide for the conservation of storm waters,
479-8 floodwaters, and unappropriated waters of the Red River watershed
479-9 and its Texas tributaries essential for the beneficial uses of the
479-10 people of the watersheds of the Red River and its Texas
479-11 tributaries;
479-12 (6) provide for the encouragement and development of
479-13 drainage systems and for drainage of lands needing drainage for
479-14 profitable agricultural production;
479-15 (7) provide for the conservation of all soils against
479-16 destructive erosion and prevent the increased risk of flood caused
479-17 by destructive soil erosion; and
479-18 (8) in all sections of the authority, control and make
479-19 storm waters, floodwaters, and unappropriated waters of the Red
479-20 River watershed available for employment in the development of
479-21 commercial, industrial, and agricultural enterprises and for all
479-22 purposes for which such waters, when controlled and conserved, may
479-23 be utilized in the performance of a useful service as contemplated
479-24 and authorized by the provisions of the constitution and the public
479-25 policy it declares.
479-26 (c) The authority may sue and be sued in its own name.
480-1 (d) The authority shall prepare a master plan for the
480-2 maximum development of the soil and water resources of the entire
480-3 Red River watershed within the authority, including plans for the
480-4 complete utilization, for all economically beneficial purposes, of
480-5 the water resources of the watershed. That portion of the master
480-6 plan and any amendments to the plan relating to soil conservation
480-7 and upstream flood prevention and watershed protection works in
480-8 furtherance of those purposes shall be prepared by the soil
480-9 conservation districts on the Red River watershed, subject to
480-10 approval by the State Soil and Water Conservation Board. The
480-11 master plan shall be filed with and approved by the commission.
480-12 (e) For the purpose of pollution control as provided by
480-13 Subsection (b)(1), the authority may promulgate rules and
480-14 regulations with regard to pollution, both artificial and natural,
480-15 and possesses police power to enforce its rules and regulations.
480-16 The authority may provide for a penalty for a violation of its
480-17 pollution rules consisting of a fine not to exceed $1,000 or
480-18 confinement in the county jail for not more than 30 days or both
480-19 such fine and confinement. For the purposes of this subsection,
480-20 the provisions of the general law pertaining to water control and
480-21 improvement districts shall govern, except as expressly provided by
480-22 this chapter.
480-23 Sec. 269.016. POWERS RELATING TO NAVIGATION, RECREATIONAL
480-24 FACILITIES, AND WATER TREATMENT. (a) In addition to other
480-25 purposes authorized by law, the authority is vested with all the
480-26 powers of the state under Section 59, Article XVI, Texas
481-1 Constitution, and with all the powers, rights, privileges, and
481-2 functions conferred upon navigation districts by general law.
481-3 (b) The authority may:
481-4 (1) promote, construct, maintain, and operate or aid
481-5 and encourage the construction, maintenance, and operation of
481-6 navigable canals or waterways, and all navigational systems or
481-7 facilities auxiliary to the canals or waterways, using the natural
481-8 bed and banks of the Red River, where practicable, and traversing
481-9 the route found by the authority to be the most feasible and
481-10 practicable to connect the Red River in Texas with any new
481-11 navigation canals to be constructed in the lower reaches of the Red
481-12 River or to connect the Red River with the Intracoastal Waterway,
481-13 and to construct or cause to be constructed a system of artificial
481-14 waterways and canals together with all locks and other works,
481-15 structures, and artificial facilities necessary and convenient for
481-16 the construction, maintenance, and operation of navigation canals
481-17 or waterways and all navigational systems and facilities auxiliary
481-18 to the canals or waterways;
481-19 (2) acquire, purchase, improve, extend, take over,
481-20 construct, maintain, repair, operate, develop, and regulate ports,
481-21 levees, wharves, docks, locks, warehouses, grain elevators, dumping
481-22 facilities, belt railways, lands, and all other facilities or aids
481-23 to navigation or aids necessary to the operation or development of
481-24 ports or waterways within the Red River Basin in Texas; provided,
481-25 however, that the powers conferred on the authority under the
481-26 provisions of this subdivision extend to a facility or aid
482-1 authorized under this subdivision only if the facility or aid is
482-2 situated in a county or counties included as part of the authority;
482-3 (3) acquire by gift or purchase properties of any
482-4 kind, including lighters, tugs, barges, and other floating
482-5 equipment of any nature, whether the property is real, personal, or
482-6 mixed, or any interest in property, within or outside the
482-7 boundaries of the authority necessary to the exercise of the
482-8 powers, rights, privileges, and functions conferred on the
482-9 authority by this chapter and may acquire property by condemnation
482-10 in the manner provided by Section 269.025; provided, however, that
482-11 the authority shall not be required to give bond for appeal or bond
482-12 for costs in any judicial proceedings;
482-13 (4) control, develop, store, and use the natural flow
482-14 and floodwaters of the Red River and its Texas tributaries for the
482-15 purpose of operating and maintaining the navigable canals or
482-16 waterways and all navigational systems or facilities auxiliary to
482-17 the canals or waterways; provided, however, that the navigational
482-18 use shall be subordinate to the consumptive use of water, and
482-19 navigation shall be incidental to the consumptive use of water; and
482-20 (5) effectuate the construction, maintenance, and
482-21 operation of bank stabilization facilities or channel rectification
482-22 or alignment to prevent and aid in preventing the devastation of
482-23 lands from recurrent overflows and to protect life and property in
482-24 the watershed of the Red River in Texas or any tributaries of the
482-25 river within the authority from uncontrolled floodwaters and may
482-26 store and conserve to the greatest beneficial use the storm waters,
483-1 floodwaters, and unappropriated waters of the Red River in Texas or
483-2 any tributaries of the river within the authority so as to prevent
483-3 the escape of any water without maximum beneficial use either
483-4 within or outside the boundaries of the authority.
483-5 (c) If the construction or maintenance and operation of
483-6 navigable canals or waterways, and all navigational systems or
483-7 facilities auxiliary to the canals or waterways, on the Red River
483-8 in Texas is taken over or performed by the federal government or
483-9 any agency of the federal government, the authority may make and
483-10 enter into any contracts lawfully required by the federal
483-11 government, including assignments and transfers of property and
483-12 rights of property and easements and privileges and any and all
483-13 other lawful things and acts necessary and required in order to
483-14 meet the requirements of the federal government or any agency of
483-15 the federal government in taking over the construction or
483-16 maintenance and operation of the navigable canals or waterways and
483-17 all navigational systems or facilities auxiliary to the canals or
483-18 waterways.
483-19 (d) The authority may acquire additional land adjacent to
483-20 any permanent improvement constructed within the authority,
483-21 regardless of when it was constructed, for the purpose of
483-22 developing public parks and recreational facilities and may acquire
483-23 necessary right-of-way for public ingress and egress to such areas.
483-24 (e) The authority may provide recreational facilities and
483-25 services and may enter into contracts and agreements with the
483-26 federal government or any agency of the federal government, the
484-1 Parks and Wildlife Department, or any county, municipality,
484-2 municipal corporation, person, firm, or nonprofit organization for
484-3 the construction, operation, and maintenance of the park or
484-4 recreational facility. The authority shall coordinate the
484-5 development of any public parks and recreational facilities with
484-6 the Parks and Wildlife Department for conformity with the State
484-7 Comprehensive Outdoor Recreation Plan. The authority may perform
484-8 all functions necessary to qualify for state or federal
484-9 recreational grants and loans.
484-10 (f) In addition to other purposes previously authorized by
484-11 law and as a necessary aid to the conservation, control,
484-12 preservation, and distribution of water for beneficial use, the
484-13 authority is authorized to purchase, construct, improve, repair,
484-14 operate, and maintain works and facilities necessary for the
484-15 collection, transportation, treatment, and disposal of sewage and
484-16 industrial waste and effluent and to issue negotiable bonds for
484-17 those purposes. The authority may make contracts with cities and
484-18 others under which the authority will collect, transport, treat,
484-19 and dispose of sewage from the cities or other entities. The
484-20 authority may also make contracts with any city for the use of any
484-21 collection, transportation, treatment, or disposal facilities owned
484-22 by the city or by the authority.
484-23 (g) Bonds issued under this section are payable from
484-24 revenues under any contract or contracts described in this chapter
484-25 or from other income of the authority. The bonds shall be in the
484-26 form and shall be issued in the manner prescribed by law for other
485-1 revenue bonds and as provided by Sections 269.033, 269.034,
485-2 269.035, and 269.036.
485-3 Sec. 269.017. ADDITIONAL PROVISIONS REGARDING CONTRACTS,
485-4 BONDS, FEES, AND MANAGEMENT OF AUTHORITY PROPERTY. (a) In this
485-5 section:
485-6 (1) "Person" means:
485-7 (A) an individual, partnership, corporation, or
485-8 other private entity; and
485-9 (B) a public agency.
485-10 (2) "Public agency" means an authority, district,
485-11 city, town, other political subdivision, joint board, or other
485-12 public agency created and operating under the laws of this state.
485-13 (b) The authority and all persons may contract, on terms and
485-14 conditions to which the parties may agree, with respect to any
485-15 power, function, or duty of the authority and may execute all
485-16 appropriate documents and instruments in connection with the
485-17 contract. The authority may issue bonds with respect to any of its
485-18 powers in the manner provided by Section 269.033, including the
485-19 powers granted in this section for the purpose of providing funds:
485-20 (1) to pay for the costs of engineering design and
485-21 studies, surveys, title research, appraisals, options on real or
485-22 personal property, and other related matters and activities in
485-23 connection with planning and implementing proposed projects or
485-24 improvements; and
485-25 (2) to operate and maintain any facilities.
485-26 (c) The authority may invest its funds, including bond
486-1 proceeds, in any manner or in any securities determined by the
486-2 board.
486-3 (d) Notwithstanding any provisions of this chapter and in
486-4 addition to all other powers granted by this chapter or by any
486-5 other law, the authority may undertake and carry out any
486-6 activities; enter into loan agreements, leases, or installment sale
486-7 agreements; and acquire, purchase, construct, own, operate,
486-8 maintain, repair, improve, or extend and may loan, lease, sell, or
486-9 otherwise dispose of, on terms and conditions including rentals,
486-10 sale price, or installment sale payments as the parties may agree,
486-11 at any place or location within the boundaries of the authority,
486-12 any and all money or bond proceeds, works, improvements,
486-13 facilities, plants, buildings, structures, equipment, and
486-14 appliances, and all property or any interest in property, that are
486-15 incident, helpful, or necessary to the accomplishment of the
486-16 purposes of this chapter.
486-17 (e) The authority may exercise the powers listed in
486-18 Subsection (d) to:
486-19 (1) provide for the control, storage, preservation,
486-20 transmission, treatment, distribution, and use of water, including
486-21 storm water, floodwater, and the water of rivers and streams, for
486-22 irrigation, electric energy or power, flood control, municipal,
486-23 domestic, industrial, agricultural, and commercial uses and
486-24 purposes and for all other beneficial purposes;
486-25 (2) supply water for municipal, domestic, electric
486-26 energy or power, industrial, irrigation, oil flooding, mining,
487-1 agricultural, and commercial uses and purposes and for all other
487-2 beneficial uses and purposes;
487-3 (3) generate, produce, distribute, and sell electric
487-4 energy or power; and
487-5 (4) facilitate the carrying out of any power, duty, or
487-6 function of the authority.
487-7 (f) It is found and determined by the legislature that all
487-8 of the purposes stated in Subsection (e) are for the conservation
487-9 and development of the natural resources of this state within the
487-10 meaning of Section 59, Article XVI, Texas Constitution.
487-11 (g) Each public agency may set, charge, and collect fees,
487-12 rates, charges, rentals, and other amounts for any services or
487-13 facilities provided by a utility operated by it or provided
487-14 pursuant to or in connection with any contract with the authority.
487-15 The fees, rates, charges, rentals, and other amounts may be charged
487-16 to and collected from inhabitants or from any users or
487-17 beneficiaries of that utility, service, or facility. Such fees,
487-18 rates, charges, rentals, and other amounts may include water
487-19 charges, sewage charges, solid waste disposal system fees and
487-20 charges, including garbage collection or handling fees, and other
487-21 fees or charges.
487-22 (h) The fees, rates, charges, rentals, and other amounts
487-23 authorized by this section may be used or pledged to make payments
487-24 to the authority required under the contract and may be pledged in
487-25 amounts sufficient to make all or any part of those payments to the
487-26 authority when due. The payments, if the parties agree in the
488-1 contract, constitute an expense of operation of any facilities or
488-2 utility operated by the public agency; provided, however, that an
488-3 agreement may not be made that would violate the United States or
488-4 Texas constitutions.
488-5 (i) This section is wholly sufficient authority for the
488-6 issuance of bonds, the execution of contracts, and the performance
488-7 of the other acts and procedures authorized in this chapter by the
488-8 authority and other persons, including public agencies, without
488-9 reference to any other law or any restrictions or limitations
488-10 included in any other law. To the extent of any conflict or
488-11 inconsistency between this subsection and any other law including a
488-12 home-rule city charter, this section prevails and controls;
488-13 provided, however, that the authority and other persons, including
488-14 public agencies, may use any other law not in conflict with this
488-15 subsection to the extent convenient or necessary to carry out any
488-16 power or authority granted by this section.
488-17 (j) This section does not compel any person, including a
488-18 public agency, to secure water, sewer service, or any other service
488-19 from the authority, except under voluntarily executed contracts.
488-20 Sec. 269.018. GASOHOL AND INDUSTRIAL ALCOHOL. (a) On
488-21 acquisition of any necessary authorization as provided by law, the
488-22 authority may engage in the manufacture and production of gasohol
488-23 only for use in operating equipment of the authority in an
488-24 emergency as determined by the general manager of the authority.
488-25 (b) The authority is eligible for a local industrial alcohol
488-26 manufacturer's permit under Chapter 47, Alcoholic Beverage Code, as
489-1 if it were an eligible Texas corporation, but its authority under
489-2 the permit is limited as provided by Subsection (a).
489-3 Sec. 269.019. LIMITED USE OF BOWIE COUNTY TERRITORY.
489-4 (a) Bowie County is added to the authority for the limited purpose
489-5 of participating in the United States Army Corps of Engineers Red
489-6 River Bank Stabilization and Navigation Project from Index,
489-7 Arkansas, to Denison Dam, and this chapter shall apply to Bowie
489-8 County to the extent necessary to accomplish that project.
489-9 (b) Bowie County is liable only for debt incurred by the
489-10 authority directly in connection with the Red River Bank
489-11 Stabilization and Navigation Project, and the board may exercise
489-12 the duties and powers, including the power of eminent domain, under
489-13 this chapter with relation to Bowie County only to the extent
489-14 necessary to accomplish that project.
489-15 Sec. 269.020. LIMITATION OF AUTHORITY; COMMISSION
489-16 SUPERVISION. The powers and duties granted to the authority by
489-17 this chapter are subject to all legislative declarations of public
489-18 policy for the maximum use of the waters of the authority's
489-19 watersheds for the purposes for which the authority is created. In
489-20 the exercise of its powers and duties the authority shall be
489-21 subject to continuing supervision by the state. The supervision
489-22 shall be exercised through the commission or its successor agency,
489-23 and the commission is charged with the authority and duty to
489-24 approve or to refuse to approve the adequacy and feasibility of any
489-25 plan or plans for flood control or conservation devised for the
489-26 achievement of the purposes intended in the creation of the
490-1 authority.
490-2 Sec. 269.021. CONTRACTS WITH PUBLIC ENTITIES. The authority
490-3 may execute contracts and enter into agreements necessary to
490-4 accomplish the purposes for which it is created. The authority is
490-5 authorized to enter into contracts with cities, corporations,
490-6 districts, the United States and its agencies, the state and its
490-7 agencies, or the states of Oklahoma, Arkansas, and Louisiana, the
490-8 confines of which are contiguous or adjacent to the Red River.
490-9 Sec. 269.022. CONTRACTS FOR WATER SYSTEMS; ACQUISITION OF
490-10 WATER RIGHTS. The authority is expressly authorized to contract
490-11 with cities, towns, or villages located within its boundaries for
490-12 the purchase, lease, use, management, control, or operation of
490-13 water distribution plants or systems owned by the cities, towns, or
490-14 villages, in accordance with such terms and conditions as may be
490-15 mutually agreed upon by the governing bodies of the authority and
490-16 the cities, towns, or villages. The authority may acquire by any
490-17 such contract surface water or groundwater rights belonging to a
490-18 city, town, or village; provided, however, that the authority shall
490-19 devote any water rights so acquired only to the uses the city,
490-20 town, or village from which the water rights were acquired would be
490-21 authorized to make of them. The authority shall use any water
490-22 rights acquired as provided by this section only for the purposes
490-23 of the water distribution plant or system of the city, town, or
490-24 village from which the water rights were acquired.
490-25 Sec. 269.023. WATER DELIVERY TO ELDORADO, OKLAHOMA. The
490-26 authority may enter into any contracts necessary to provide for the
491-1 sale and delivery of water to the City of Eldorado, Oklahoma.
491-2 Sec. 269.024. LOANS AND GRANTS. For the purpose of
491-3 providing funds requisite to secure the necessary studies,
491-4 engineering, and other services which may be necessary and to the
491-5 collection and computation of data respecting regional and general
491-6 conditions influencing the character and extent of the improvements
491-7 necessary to effect the purposes of the creation of the authority
491-8 to the greatest public advantage, the authority may solicit, seek
491-9 and accept contributions to its funds from any other district,
491-10 authority, or municipality, the federal government, the state, or
491-11 any other source. All grants and gratuities shall be strictly
491-12 accounted for and shall be subject to the same rules, regulations,
491-13 and orders as are other funds handled or disbursed by the
491-14 authority.
491-15 Sec. 269.025. EMINENT DOMAIN. The authority is vested with
491-16 the right of eminent domain in the manner provided by general law
491-17 pertaining to water control and improvement districts. If the
491-18 authority, in the exercise of the power of eminent domain or power
491-19 of relocation or any other power granted under this chapter, makes
491-20 necessary the relocation, raising, rerouting, changing the grade,
491-21 or altering the construction of any highway, railroad, electric
491-22 transmission line, telephone or telegraph properties and
491-23 facilities, or pipeline, all such necessary relocation, raising,
491-24 rerouting, changing of grade, or alteration of construction shall
491-25 be accomplished at the sole expense of the authority.
491-26 Sec. 269.026. ADDITIONAL POWERS. (a) Except as provided by
492-1 Subsection (b), the authority has and may exercise the functions,
492-2 powers, authority, rights, and duties necessary to accomplish the
492-3 purposes for which the authority is created, including
492-4 investigating and planning, acquiring, constructing, maintaining,
492-5 and operating all necessary properties, lands, rights, tenements,
492-6 easements, improvements, reservoirs, dams, canals, laterals,
492-7 plants, works, and facilities, including the acquisition within or
492-8 outside the authority of lands, rights-of-way, water rights, and
492-9 all other properties, tenements, easements, and other rights
492-10 incident, helpful to, or in aid of carrying out the purposes of the
492-11 authority as provided in this chapter.
492-12 (b) The authority may not engage in the generation or
492-13 distribution of electric power except as provided by Section
492-14 269.017. The right of eminent domain shall not be exercised and
492-15 shall not extend beyond the boundaries of the authority.
492-16 Sec. 269.027. FEES AND CHARGES. (a) The authority shall
492-17 establish and collect rates and other charges for the sale or use
492-18 of water or for its services sold, furnished, or supplied. The
492-19 fees and charges shall be reasonable and nondiscriminatory but
492-20 sufficient to produce revenues adequate to pay the expenses of the
492-21 authority in carrying out the functions for which it is created and
492-22 to fulfill the terms of any agreements made with the holders of any
492-23 of its obligations.
492-24 (b) The rates and charges for the sale or use of water
492-25 provided by this section shall be subject to review by the
492-26 commission as provided by general law.
493-1 Sec. 269.028. APPROVAL OF BONDS AND WARRANTS PRIOR TO
493-2 ISSUANCE. While the authority is expressly given the power to
493-3 issue its obligations or warrants for furnishing funds, before the
493-4 obligations or warrants may be issued, they shall bear the approval
493-5 of the state, acting through the attorney general.
493-6 Sec. 269.029. AUTHORITY PROCEDURES; SEAL. The authority
493-7 shall make bylaws for the management and regulation of its affairs,
493-8 including:
493-9 (1) adopting and using a corporate seal;
493-10 (2) appointing officers, attorneys, agents, and
493-11 employees and prescribing their duties and setting their
493-12 compensation;
493-13 (3) making contracts and executing instruments
493-14 necessary or convenient to the exercise of the powers, rights,
493-15 privileges, and functions conferred on the authority by this
493-16 chapter and the general laws of the state pertaining to water
493-17 control and improvement districts;
493-18 (4) borrowing money for its corporate purposes;
493-19 (5) borrowing money and accepting grants from the
493-20 United States, the state, or any other source; and
493-21 (6) in connection with any loan or grant, entering
493-22 into such agreements and assuming such obligations as may be
493-23 required.
493-24 Sec. 269.030. AUTHORITY DEPOSITORY. The board shall
493-25 designate one or more banks within the authority to serve as
493-26 depository for the funds of the authority. All funds of the
494-1 authority shall be deposited in the depository bank or banks,
494-2 except that funds pledged to pay bonds may be deposited with the
494-3 trustee bank named in the trust agreement and except that funds
494-4 shall be remitted to the bank of payment for the payment of
494-5 principal of and interest on bonds. To the extent that funds in
494-6 the depository banks and the trustee bank are not insured by the
494-7 Federal Deposit Insurance Corporation, the funds shall be secured
494-8 in the manner provided by law for the security of county funds.
494-9 Sec. 269.031. TAXES. Nothing in this chapter shall be
494-10 construed as authorizing the authority to levy or collect any form
494-11 of tax within the authority.
494-12 Sec. 269.032. GROUNDWATER. Nothing in this chapter shall be
494-13 construed as authorizing the authority to acquire, regulate, or
494-14 control in any way groundwater or groundwater rights by
494-15 condemnation, purchase, or otherwise or to develop, regulate, or
494-16 control the use of groundwater resources in any manner. This
494-17 chapter is intended to govern and shall be construed to govern and
494-18 apply to surface water only.
494-19 Sec. 269.033. BOND ISSUANCE. (a) For the purpose of
494-20 providing funds for any purpose authorized by this chapter, the
494-21 authority may issue bonds as authorized by this chapter. The
494-22 authority may, without the necessity of an election, issue bonds to
494-23 be payable from the revenues of the authority as pledged by
494-24 resolution of the board.
494-25 (b) Bonds must be authorized by resolution of the board and
494-26 shall be issued in the name of the authority, signed by the
495-1 president or vice president, attested by the secretary, and have
495-2 the seal of the authority impressed on the bonds.
495-3 (c) Bonds must mature serially or otherwise in not to exceed
495-4 50 years and may be sold at a price and under terms determined by
495-5 the board to be the most advantageous reasonably obtainable;
495-6 provided, however, that the interest rate on the bonds may not
495-7 exceed the maximum net effective interest rate, as that term is
495-8 defined by Chapter 1204, Government Code, that is legally
495-9 authorized at the time the bonds are issued. Within the discretion
495-10 of the board, bonds may be made callable prior to maturity at such
495-11 times and prices as may be prescribed in the resolution authorizing
495-12 the bonds and may be made registrable as to principal or as to both
495-13 principal and interest.
495-14 (d) Bonds may be issued in more than one series and from
495-15 time to time as required for carrying out the purposes of this
495-16 chapter.
495-17 (e) Bonds may be secured by a pledge of all or part of the
495-18 net revenues of the authority, of the net revenues of one or more
495-19 contracts made before or after the bonds are issued, or of other
495-20 revenues specified by resolution of the board. A pledge may
495-21 reserve the right, under conditions specified in the pledge, to
495-22 issue additional bonds which will be on a parity with or
495-23 subordinate to the bonds being issued. In this section, "net
495-24 revenues" means the gross revenues of the authority less the amount
495-25 necessary to pay the cost of maintaining and operating the
495-26 authority and its properties.
496-1 (f) The board shall set, and from time to time revise, rates
496-2 of compensation for water sold and services rendered by the
496-3 authority that will be sufficient to pay the expense of operating
496-4 and maintaining the facilities of the authority and to pay bonds as
496-5 they mature and the interest as it accrues and to maintain the
496-6 reserve and other funds as provided in the resolution authorizing
496-7 the bonds.
496-8 (g) From the proceeds of the sale of the bonds, the
496-9 authority may set aside an amount for the payment of interest
496-10 expected to accrue during construction and for a reserve interest
496-11 and sinking fund, and such provision may be made in the resolution
496-12 authorizing the bonds. Proceeds from the sale of the bonds may
496-13 also be used for the payment of all expenses necessarily incurred
496-14 in accomplishing the purposes for which the authority is created.
496-15 (h) In the event of a default or a threatened default in the
496-16 payment of principal of or interest on any of the bonds of the
496-17 authority any court of competent jurisdiction may, on petition of
496-18 the holders of 25 percent of the outstanding bonds of the issue in
496-19 default or threatened with default, appoint a receiver with
496-20 authority to collect and receive all income of the authority,
496-21 employ and discharge agents and employees of the authority, take
496-22 charge of the authority's funds on hand, and manage the proprietary
496-23 affairs of the authority without consent or hindrance by the board.
496-24 The receiver may also be authorized to sell or make contracts for
496-25 the sale of water or to renew such contracts with the approval of
496-26 the court appointing the receiver. The court may vest the receiver
497-1 with other powers and duties the court finds necessary for the
497-2 protection of the holders of the bonds.
497-3 Sec. 269.034. REFUNDING BONDS. (a) The authority may issue
497-4 refunding bonds for the purpose of refunding any outstanding bonds
497-5 authorized by this chapter and interest on the bonds. Refunding
497-6 bonds may be issued to refund more than one series of outstanding
497-7 bonds and may combine the pledges for the outstanding bonds for the
497-8 security of the refunding bonds, and refunding bonds may be secured
497-9 by other or additional revenues.
497-10 (b) The provisions of this chapter with reference to the
497-11 issuance of other bonds and their approval by the attorney general
497-12 and the remedies of the holders shall be applicable to refunding
497-13 bonds. Refunding bonds shall be registered by the comptroller on
497-14 surrender and cancellation of the bonds to be refunded, but in lieu
497-15 of that procedure, the resolution authorizing the issuance of the
497-16 refunding bonds may provide that the refunding bonds be sold and
497-17 the proceeds of the sale deposited in the bank where the original
497-18 bonds are payable, in which case the refunding bonds may be issued
497-19 in an amount sufficient to pay the interest on the original bonds
497-20 to their option date or maturity date, and the comptroller shall
497-21 register the refunding bonds without concurrent surrender and
497-22 cancellation of the original bonds.
497-23 Sec. 269.035. DEED OF TRUST LIEN. (a) Any bonds, including
497-24 refunding bonds, authorized by this chapter may be additionally
497-25 secured by a deed of trust lien on physical properties of the
497-26 authority and all franchises, easements, water rights and
498-1 appropriation permits, leases, and contracts and all rights
498-2 appurtenant to such properties, vesting in the trustee power to
498-3 sell the properties for payment of the indebtedness, power to
498-4 operate the properties, and all other powers and authority for the
498-5 further security of the bonds.
498-6 (b) The deed of trust may contain any provisions prescribed
498-7 by the board for the security of the bonds and the preservation of
498-8 the trust estate and may make provision for amendment or
498-9 modification of the deed of trust and the issuance of bonds to
498-10 replace lost or mutilated bonds. A purchaser under a sale under
498-11 the deed of trust shall be the owner of the dam or dams and the
498-12 other properties and facilities purchased and shall have the right
498-13 to maintain and operate them in the event of a forfeiture or
498-14 default on the part of the authority.
498-15 Sec. 269.036. APPROVAL AND REGISTRATION OF BONDS. After any
498-16 bonds are authorized by the authority, the bonds and the record
498-17 relating to their issuance shall be submitted to the attorney
498-18 general for examination as to the validity of the bonds and the
498-19 record. If the bonds recite that they are secured by a pledge of
498-20 the proceeds of a contract previously made between the authority
498-21 and any city or other governmental agency or district, a copy of
498-22 the contract and the proceedings of the city or other governmental
498-23 agency or district authorizing the contract shall also be submitted
498-24 to the attorney general. If the bonds have been authorized and the
498-25 contract has been made in accordance with the constitution and laws
498-26 of the state the attorney general shall approve the bonds and the
499-1 contract, and the bonds then shall be registered by the
499-2 comptroller. After their approval and registration, the bonds and
499-3 the contracts, if any, are valid and binding and are incontestable
499-4 for any cause.
499-5 Sec. 269.037. LEGISLATIVE DECLARATION; CONSTRUCTION. The
499-6 legislature hereby declares that the enactment of this chapter is
499-7 in fulfillment of a duty conferred on it by Section 59, Article
499-8 XVI, Texas Constitution, empowering the legislature to pass laws
499-9 for the preservation and conservation of the natural resources of
499-10 the state; that the authority created by this chapter is essential
499-11 to the accomplishment of the purposes of that constitutional
499-12 provision; and that this chapter operates on a subject in which the
499-13 state at large is interested. The legislature finds and determines
499-14 that all of the lands and other property included within the
499-15 boundaries of the authority will be benefited and that the
499-16 authority is created to serve a public use and benefit. All the
499-17 terms and provisions of this chapter are to be liberally construed
499-18 to effectuate its purposes.
499-19 Sec. 269.038. POWERS OF WATER CONTROL AND IMPROVEMENT
499-20 DISTRICTS. Except as otherwise provided by this chapter, the
499-21 authority is vested with all of the rights, powers, and privileges
499-22 conferred by the general laws of this state applicable to water
499-23 control and improvement districts created under authority of
499-24 Section 59, Article XVI, Texas Constitution.
499-25 CHAPTER 270. SABINE RIVER AUTHORITY OF TEXAS
499-26 Sec. 270.001. CREATION. (a) A conservation and reclamation
500-1 district to be known as the "Sabine River Authority of Texas" is
500-2 created. The authority is a governmental agency and a body politic
500-3 and corporate.
500-4 (b) The authority is created under and is essential to
500-5 accomplish the purposes of Section 59, Article XVI, Texas
500-6 Constitution.
500-7 (c) The authority may exercise the powers granted by Section
500-8 59, Article XVI, Texas Constitution, to districts created to
500-9 conserve, store, control, preserve, utilize, and distribute the
500-10 storm waters, floodwaters, and waters of the rivers and streams of
500-11 the state, as well as such powers as may be contemplated and
500-12 implied by the purposes of that provision of the constitution and
500-13 as may be conferred by general law and by the provisions of this
500-14 chapter; provided, however, that nothing in this chapter shall be
500-15 construed to authorize the authority to levy any taxes or special
500-16 assessments or to create any debt payable out of taxation.
500-17 (d) The authority may construct, maintain, and operate
500-18 within the state, in the watershed of the Sabine River and its
500-19 tributaries, within or outside the boundaries of the authority, any
500-20 and all works considered essential to the operation of the
500-21 authority and for its administration in the control, storing,
500-22 preservation, and distribution for all useful purposes of the
500-23 waters of the Sabine River and its tributaries, including the storm
500-24 waters and floodwaters.
500-25 (e) The authority may exercise such authority and power of
500-26 control and regulation over the waters of the Sabine River and its
501-1 tributaries as may be exercised by the state, subject to the
501-2 provisions of the constitution and the acts of the legislature.
501-3 (f) In all other laws, wherever reference is made to Sabine
501-4 River Authority, the reference shall mean "Sabine River Authority
501-5 of Texas." The Sabine River Authority of Texas shall succeed to
501-6 all rights, powers, and duties conferred or imposed by all statutes
501-7 on the Sabine River Authority and to all rights, powers, and duties
501-8 conferred by or assumed in all contracts to which the Sabine River
501-9 Authority is a party.
501-10 Sec. 270.002. DEFINITIONS. In this chapter:
501-11 (1) "Authority" means the Sabine River Authority of
501-12 Texas.
501-13 (2) "Board" means the board of directors of the
501-14 authority.
501-15 (3) "Director" means a member of the board.
501-16 Sec. 270.003. TERRITORY. (a) The area of the authority
501-17 comprises all of that part of the territory lying within the
501-18 watershed of the Sabine River and its tributaries that is situated
501-19 within the state according to the state contour maps on file in the
501-20 office of the Texas Water Development Board.
501-21 (b) On the request of the board the commission shall define
501-22 the boundaries so that they may be expressed by the metes and
501-23 bounds of the watershed described by Subsection (a); provided,
501-24 however, that the definition of the boundaries shall not be a
501-25 condition precedent to the exercise of any power conferred by this
501-26 chapter; and provided further, that all the area presently covered
502-1 by the Lower Neches Valley Authority is excepted from the area
502-2 covered by the Neches River Conservation District. It is the
502-3 intent of the legislature to preserve the present area and
502-4 authority of the Lower Neches Valley Authority.
502-5 Sec. 270.004. BOARD OF DIRECTORS. (a) The management and
502-6 control of the affairs of the authority are vested in a board of
502-7 directors, consisting of nine members. Each director must be a
502-8 freehold property taxpayer and a legal voter of the state.
502-9 (b) Directors are appointed by the governor with the advice
502-10 and consent of the senate and serve staggered six-year terms.
502-11 (c) Four members of the board must reside within a county
502-12 located in the upper basin of the Sabine River, including Collin,
502-13 Rockwall, Kaufman, Hunt, Rains, Van Zandt, Hopkins, Franklin, Wood,
502-14 Smith, Upshur, Gregg, Harrison, and Rusk counties, and four members
502-15 of the board must reside within a county located in the lower basin
502-16 of the Sabine River, including Panola, Shelby, San Augustine,
502-17 Sabine, Jasper, Newton, and Orange counties. One member of the
502-18 board must reside within a county situated wholly or partially
502-19 within the watershed of the Sabine River.
502-20 (d) The directors shall hold office after their appointment
502-21 and qualification until their successors are appointed and have
502-22 qualified.
502-23 (e) A vacancy on the board is filled by the governor, in the
502-24 manner provided by this section, for the unexpired term.
502-25 (f) Within 15 days after appointment, a director shall
502-26 qualify by taking the official oath and filing a good and
503-1 sufficient bond with the secretary of state in the amount of
503-2 $1,000, payable to the authority and conditioned on the faithful
503-3 performance of official duties of the director. The bond is
503-4 subject to approval by the secretary of state.
503-5 Sec. 270.005. OFFICERS; VOTING REQUIREMENTS; WARRANTS.
503-6 (a) The board shall elect from among its members a president, vice
503-7 president, secretary, and secretary pro tempore.
503-8 (b) Five directors constitute a quorum at any meeting, and a
503-9 concurrence of a majority of those present is sufficient in all
503-10 matters pertaining to the business of the authority, except that
503-11 the letting of construction contracts and the authorization of the
503-12 issuance of bonds require the concurrence of five directors.
503-13 (c) Warrants for the payment of money may be drawn and
503-14 signed by two officers or employees designated by resolution
503-15 entered in the minutes of the board when such accounts have been
503-16 contracted and ordered paid by the board.
503-17 Sec. 270.006. OFFICER AND EMPLOYEE BONDS. The board shall
503-18 require an officer or employee who collects, pays, or handles any
503-19 funds of the authority to furnish good and sufficient bond, with a
503-20 duly authorized surety company, payable to the authority, in an
503-21 amount determined by the board to be sufficient to safeguard the
503-22 authority. The bond shall be conditioned on the faithful
503-23 performance of the person's duties and on the person's accounting
503-24 for all funds and property of the authority coming into the
503-25 person's hands.
503-26 Sec. 270.007. OFFICERS; MEETINGS. (a) The president is the
504-1 chief executive officer of the authority and presides at board
504-2 meetings. The vice president acts as president if the president is
504-3 absent or disabled.
504-4 (b) The secretary is responsible for keeping the records and
504-5 books of the authority. The secretary pro tempore acts as
504-6 secretary if the secretary is absent or disabled.
504-7 (c) The board shall hold regular meetings at times set by
504-8 the board and may hold special meetings when required by the
504-9 business of the authority.
504-10 Sec. 270.008. DIRECTOR FEES. A director is entitled to
504-11 receive a fee not to exceed $100 for each day of service necessary
504-12 to discharge the director's duties, plus actual expenses, provided
504-13 the fee and expenses are authorized by vote of the board. The
504-14 directors must file with the secretary a statement showing the
504-15 amount due each month, or as soon after that month as practicable,
504-16 before a check is issued.
504-17 Sec. 270.009. RECORDS; AUTHORITY OFFICE. The board shall
504-18 keep a true and full account of all its meetings and proceedings
504-19 and maintain its records in a secure manner. The records are the
504-20 property of the authority and are subject to public inspection. A
504-21 regular office shall be established and maintained within the
504-22 authority for conducting the authority's business.
504-23 Sec. 270.010. ACCOUNT RECORD; AUDIT. The authority shall
504-24 keep a complete book of accounts. The authority's fiscal accounts
504-25 and records shall be audited annually in accordance with Section
504-26 49.191.
505-1 Sec. 270.011. DEPOSITORIES. (a) The board shall annually
505-2 select a depository or depositories for the authority.
505-3 (b) Funds of the authority shall be deposited in a
505-4 depository selected under Subsection (a).
505-5 (c) The board may allocate authority funds between
505-6 depositories or accounts maintained in a depository subject only to
505-7 the duty imposed on the board by statute to invest the funds so as
505-8 to obtain the highest rate of return consistent with safety.
505-9 (d) Subsection (b) does not prohibit the withdrawal of
505-10 authority funds after deposit in order to invest the funds in
505-11 fulfillment of the duty imposed on the board by statute to invest
505-12 the funds so as to obtain the highest rate of return consistent
505-13 with safety.
505-14 Sec. 270.012. INVESTMENT OF FUNDS. (a) Funds of the
505-15 authority shall be invested and reinvested in accordance with:
505-16 (1) Chapter 2256, Government Code; or
505-17 (2) the provisions of the authority's bond orders and
505-18 agreements, as applicable.
505-19 (b) The authority shall comply with Chapter 2257, Government
505-20 Code, to the extent applicable.
505-21 Sec. 270.013. MANAGER; EMPLOYEES. (a) The board may employ
505-22 a manager for the authority and may delegate to the manager full
505-23 authority to manage and operate the affairs of the authority
505-24 subject only to orders of the board. The manager's compensation
505-25 shall be determined by the board.
505-26 (b) The terms of employment and compensation of all
506-1 authority employees shall be determined by the board.
506-2 Sec. 270.014. SURETY BONDS. (a) All bonds required to be
506-3 given by officers and employees of the authority shall be executed
506-4 by a surety company authorized to do business in this state. The
506-5 authority may pay the premiums on the bonds.
506-6 (b) The authority may maintain a blanket surety bond to
506-7 cover the directors of the authority. The bond must be in the
506-8 amount of at least $1,000 per director. If the authority maintains
506-9 a blanket surety bond under this subsection, a director is not
506-10 required to file a surety bond with the secretary of state as
506-11 provided by Section 270.004.
506-12 Sec. 270.015. CONFLICT OF INTEREST; PENALTY. (a) A
506-13 director, engineer, or employee of the authority, either for the
506-14 person or as agent for anyone else, may not benefit directly or
506-15 indirectly by any sale, purchase, or contract entered into by the
506-16 board. If such a person, directly or indirectly, becomes
506-17 interested in such a contract, sale, or purchase, the person is
506-18 guilty of a misdemeanor and on conviction shall be punished by a
506-19 fine not to exceed $1,000, by confinement in the county jail for
506-20 not less than six months or more than one year, or by both fine and
506-21 imprisonment.
506-22 (b) In the purchase or sale of any realty bought or sold by
506-23 the authority from or to any director, engineer, or employee of the
506-24 authority, the value of the property shall be set by a board of
506-25 three disinterested citizens who are residents of the county in
506-26 which the property lies, who shall be appointed by the district
507-1 judge of the county.
507-2 Sec. 270.016. JOINT ACTIONS. A drainage, conservation,
507-3 reclamation, or other district previously created by the state with
507-4 powers provided in Section 59, Article XVI, or Section 52, Article
507-5 III, Texas Constitution, shall have the authority, power, and right
507-6 to coordinate its plans with the authority and shall have full
507-7 authority, power, and right to enter into joint undertakings for
507-8 the purposes for which the districts are created; provided,
507-9 however, that all such acts must be approved by a majority of the
507-10 board of each district involved.
507-11 Sec. 270.017. POWERS AND DUTIES. (a) The authority may
507-12 control and employ the waters of the Sabine River and its
507-13 tributaries within the state, including the storm waters and
507-14 floodwaters, for the conservation and beneficial use of the waters,
507-15 as provided by Chapters 11, 12, and 49 in the manner and for the
507-16 purposes provided by this section.
507-17 (b) The authority may provide through practical and legal
507-18 means for the control and coordination of the regulation of the
507-19 waters of the Sabine River and its tributaries.
507-20 (c) The authority may provide by adequate organization and
507-21 administration for the preservation of the equitable rights of the
507-22 people of the different sections of the watershed area in the
507-23 beneficial use of the waters of the Sabine River and its
507-24 tributaries.
507-25 (d) The authority may provide for storing, controlling, and
507-26 conserving the waters of the Sabine River and its tributaries
508-1 within and outside the authority in order to prevent the escape of
508-2 any of the waters without the maximum of public service, prevent
508-3 the devastation of lands from recurrent overflows, and protect life
508-4 and property in the authority from uncontrolled floodwaters.
508-5 (e) The authority may take actions necessary to comply with
508-6 laws, rules, and regulations of this state and the United States
508-7 relating to the protection of the environment and may borrow money,
508-8 accept grants, and enter into agreements with this state and the
508-9 United States to carry out these actions. If there is any conflict
508-10 between the provisions of this chapter and any law, rule, or
508-11 regulation of this state or the United States, the provisions of
508-12 this chapter prevail unless superseded by federal law.
508-13 (f) The authority may provide for the conservation of the
508-14 waters of the Sabine River and its tributaries essential for the
508-15 domestic uses of the people of the authority, including all
508-16 necessary water supplies for cities and towns.
508-17 (g) The authority may provide for the irrigation of lands
508-18 within the state where irrigation is required for agricultural
508-19 purposes or is considered helpful for more profitable agricultural
508-20 production and may provide for the equitable distribution of the
508-21 waters to the regional potential requirements for all beneficial
508-22 uses. All plans and works provided by the authority or authorized
508-23 by the authority shall give primary consideration to the necessary
508-24 and potential needs for water. The sale of water by the authority
508-25 and the compensation charged for water shall be subject to
508-26 regulation by the commission, on its own initiative or on the
509-1 complaint of any user of the water, but such regulation shall be
509-2 subject to the requirements of Section 270.019.
509-3 (h) The authority may provide for the encouragement and
509-4 development of drainage systems and provisions for drainage systems
509-5 and for the drainage of lands in the watershed of the Sabine River
509-6 and its tributaries needed for profitable agricultural production
509-7 and the drainage of other lands in the watershed area of the
509-8 authority requiring drainage for the most advantageous use.
509-9 (i) The authority may provide for the conservation of all
509-10 soils against destructive erosion and prevent the increased dangers
509-11 caused by destructive soil erosion.
509-12 (j) The authority may control and make water available for
509-13 use in the development of commercial and industrial enterprises in
509-14 all sections of the authority, may improve the Sabine River for
509-15 navigation, may construct or otherwise acquire and operate
509-16 navigation facilities and ports, and may enter into contracts with
509-17 the United States government with respect to those purposes.
509-18 (k) The authority may provide for the control, storage, and
509-19 employment of water under its control in the development and
509-20 distribution of hydroelectric power, where such use may be
509-21 economically coordinated with other and superior uses and
509-22 subordinated to the uses declared by law to be superior.
509-23 (l) The authority may provide for all purposes for which
509-24 floodwaters and storm waters, when controlled and conserved, may be
509-25 utilized in the performance of useful service as contemplated and
509-26 authorized by the provisions of the constitution and the public
510-1 policy it declares.
510-2 (m) The authority may purchase and construct all works
510-3 necessary or convenient for the exercise of the powers and the
510-4 accomplishment of the purposes specified in this chapter and may
510-5 purchase or otherwise acquire all real and personal property
510-6 necessary or convenient for carrying out those purposes.
510-7 Sec. 270.018. EMINENT DOMAIN. (a) The right of eminent
510-8 domain is expressly conferred on the authority to enable it to
510-9 acquire the fee simple title to, or the easement or right-of-way
510-10 over and through, any and all lands, water, or lands under water,
510-11 private or public, within and outside the authority, which in the
510-12 judgment of the board is necessary or convenient to carry out any
510-13 of the purposes and powers conferred on the authority by this
510-14 chapter; provided, however, that as against persons, firms, and
510-15 corporations, or their receivers or trustees, who have the power of
510-16 eminent domain, the fee title may not be condemned, and the
510-17 authority may condemn only an easement.
510-18 (b) All condemnation proceedings shall be under the
510-19 direction of the board and in the name of the authority, and the
510-20 assessment of damages and all procedure with reference to
510-21 condemnation, appeal, and payment shall be in conformity with
510-22 Chapter 21, Property Code.
510-23 Sec. 270.019. FEES AND CHARGES. The board shall prescribe
510-24 fees and charges to be collected for the use of water, water
510-25 connections, hydroelectric service, or other service that are
510-26 reasonable and equitable and sufficient to produce revenues
511-1 adequate to pay:
511-2 (1) all expenses necessary for the operation and
511-3 maintenance of the improvements and facilities of the authority,
511-4 including the cost of the acquisition of properties and materials
511-5 necessary to maintain the improvements and facilities in good
511-6 condition and to operate them efficiently, necessary wages and
511-7 salaries of the authority, and other expenses reasonably necessary
511-8 to the efficient operation of the improvements and facilities;
511-9 (2) the annual or semiannual interest as it becomes
511-10 due on bonds issued under this chapter that are payable out of the
511-11 revenues of the improvements and facilities; and
511-12 (3) the amount required to be paid annually into the
511-13 sinking fund for the payment of any bonds issued under this chapter
511-14 that are payable out of the revenues of the improvements and
511-15 facilities and the amount required to be paid into the reserve and
511-16 other funds under the resolution authorizing the issuance of the
511-17 bonds.
511-18 Sec. 270.020. EMPLOYEES. The authority through its board
511-19 may employ managers, engineers, attorneys, and all employees
511-20 necessary to construct, operate, and maintain the improvements and
511-21 facilities of the authority and to carry out the provisions of this
511-22 chapter, and may pay reasonable compensation set by the board for
511-23 such services.
511-24 Sec. 270.021. CONTRACTS. (a) The authority may make and
511-25 enter into contracts, leases, and agreements necessary or
511-26 convenient to carry out the powers granted by this chapter.
512-1 (b) The contracts, leases, and agreements may be entered
512-2 into with any person, real or artificial; any corporation,
512-3 municipal, public or private; any government or governmental
512-4 agency, including the United States government, the State of Texas,
512-5 or the State of Louisiana, or any public or private corporation or
512-6 entity created by or under the laws of the State of Louisiana.
512-7 (c) The authority may contract with a person, corporation,
512-8 or entity described by Subsection (b) for the joint construction,
512-9 operation, or both construction and operation of facilities
512-10 authorized to be operated or constructed by the authority.
512-11 (d) All such contracts, leases, and agreements authorized by
512-12 this section must be approved by resolution of the board, executed
512-13 by the president or vice president, and attested by the secretary
512-14 or secretary pro tempore.
512-15 Sec. 270.022. RIGHT TO SUE. The authority may sue and be
512-16 sued in its own name.
512-17 Sec. 270.023. APPROVAL OF CERTAIN WORKS. Before the
512-18 authority establishes a diversion point, or constructs canals,
512-19 pumping plants, and other waterworks, the authority must present
512-20 plans and specifications for the project to the commission for
512-21 approval.
512-22 Sec. 270.024. ANNUITY CONTRACTS. The authority may enter
512-23 into agreements with its employees for the purchase of annuities
512-24 for its employees as authorized by Section 403(b), Internal Revenue
512-25 Code of 1986, as amended, and may effect reductions in the salary
512-26 of participants when authorized in writing and apply the amount of
513-1 the reductions to the purchase of annuity contracts, the exclusive
513-2 control of which will vest in the participants.
513-3 Sec. 270.025. RETIREMENT BENEFITS. The authority may
513-4 establish a system of retirement benefits or other benefits for its
513-5 employees, including a pension or other retirement plan as set
513-6 forth in the Internal Revenue Code of 1986, as amended.
513-7 Sec. 270.026. COMMISSION SUPERVISION. The authority is
513-8 subject to the continuing rights of supervision by the commission.
513-9 The commission may approve, or refuse to approve, the adequacy of
513-10 any plan for flood control or conservation improvement purposes
513-11 devised by the authority for the achievement of the plans and
513-12 purposes intended in the creation of the authority and which plans
513-13 contemplate improvements supervised by the commission under the
513-14 provisions of the general laws.
513-15 Sec. 270.027. ADDITIONAL POWERS. (a) The authority has and
513-16 may exercise such functions, powers, authority, rights, and duties
513-17 necessary to accomplish the purposes for which the authority is
513-18 created, including investigating, planning, acquiring,
513-19 constructing, maintaining, and operating all necessary properties,
513-20 lands, rights, tenements, easements, improvements, reservoirs,
513-21 dams, canals, laterals, plants, works, and facilities, including
513-22 the acquisition within and outside the authority of lands,
513-23 rights-of-way, water rights, and all other properties, tenements,
513-24 and easements, and other rights incident, helpful to, or in aid of
513-25 carrying out the purposes of the authority as provided by this
513-26 chapter.
514-1 (b) This chapter shall be liberally construed to accomplish
514-2 the purposes of the authority.
514-3 Sec. 270.028. ACCEPTANCE OF GRANTS; APPROVAL OF CONTRACTS.
514-4 (a) The board may accept grants and gratuities in any form for the
514-5 purpose of promoting, establishing, and accomplishing the
514-6 objectives provided by this chapter. Grants and gratuities shall
514-7 be strictly accounted for and shall be subject to the same rules,
514-8 regulations, and audits by the state auditor as other funds handled
514-9 or disbursed by the board.
514-10 (b) Any contract or agreement entered into or any commitment
514-11 made by and between the authority or any of its agents or
514-12 representatives and the federal government or any of its agents or
514-13 representatives involving the sovereign rights of the State of
514-14 Texas in the control, use, disposition, storage, or sale of the
514-15 water of the Sabine River or its tributaries, or involving the
514-16 control, management, or use of any facilities, properties, or
514-17 improvements constructed on the Sabine River or its tributaries,
514-18 shall be submitted to the attorney general for approval before
514-19 becoming an obligation of the authority. Nothing in this section
514-20 shall preclude compliance by the authority with federal laws in
514-21 existence on May 3, 1949, or with any compact after that date by
514-22 and between the State of Texas, the federal government, and the
514-23 State of Louisiana, but any agreement, contract, or commitment
514-24 based on or involving any compact promulgated after May 3, 1949,
514-25 between the State of Texas, the federal government, and the State
514-26 of Louisiana shall be submitted to the attorney general for
515-1 approval.
515-2 Sec. 270.029. ADDITIONAL SPECIFIC POWERS. (a) In addition
515-3 to all other powers granted by this chapter or by any other
515-4 provision of law, the authority is authorized to undertake and
515-5 carry out any activities and to purchase, construct, acquire, own,
515-6 operate, maintain, repair, improve, or extend, inside and outside
515-7 its boundaries, all works, improvements, facilities, plants,
515-8 equipment, and appliances incident, helpful, or necessary to:
515-9 (1) provide for the control, storage, preservation,
515-10 transmission, treatment, distribution, and use of storm water and
515-11 floodwater and the water of rivers and streams for irrigation,
515-12 power (whether hydroelectric, steam-generated, or nuclear), and all
515-13 other beneficial purposes;
515-14 (2) supply water for municipal, domestic, power
515-15 (whether hydroelectric, steam-generated, or nuclear), industrial,
515-16 irrigation, oil flooding, mining, agricultural, and commercial uses
515-17 and purposes and all other beneficial uses and purposes;
515-18 (3) collect, transport, process, treat, dispose of,
515-19 and control all municipal, domestic, industrial, or communal water
515-20 and solid waste pollution, whether in fluid, solid, or composite
515-21 state;
515-22 (4) reclaim and provide drainage and drainage systems
515-23 for lands;
515-24 (5) provide for the navigation of coastal and inland
515-25 waters and provide port facilities; or
515-26 (6) establish or otherwise provide for public parks
516-1 and recreation facilities.
516-2 (b) All of the purposes provided in Subsection (a) are for
516-3 the conservation and development of the natural resources of the
516-4 state within the meaning of Section 59, Article XVI, Texas
516-5 Constitution.
516-6 Sec. 270.030. CHARGES, FEES, AND RENTALS FOR FACILITY OR
516-7 SERVICE. The authority may adopt, enforce, and collect all
516-8 necessary charges, fees, or rentals for providing any authority
516-9 facility or service and may require a deposit for any service or
516-10 facility furnished, and the authority may or may not provide that
516-11 the deposit will bear interest. The authority may discontinue a
516-12 facility or service to prevent an abuse or enforce payment of an
516-13 unpaid charge, fee, or rental due the authority.
516-14 Sec. 270.031. RULES AND REGULATIONS. (a) The authority may
516-15 adopt and enforce reasonable rules and regulations to:
516-16 (1) secure and maintain safe, sanitary, and adequate
516-17 plumbing installations, connections, and appurtenances as
516-18 subsidiary parts of its sanitary sewer facilities;
516-19 (2) preserve the sanitary condition of all water
516-20 controlled by the authority;
516-21 (3) prevent waste or the unauthorized use of water
516-22 controlled by the authority; and
516-23 (4) regulate privileges on any land or easement owned
516-24 or controlled by the authority.
516-25 (b) The board shall publish once a week for two consecutive
516-26 weeks a substantive statement of a proposed rule or regulation and
517-1 the penalty for its violation in one or more newspapers with
517-2 general circulation in the area in which the rule or regulation is
517-3 to be effective. The substantive statement must be condensed as
517-4 far as possible to explain the purpose to be accomplished or the
517-5 act forbidden by the rule or regulation. The notice must advise
517-6 that breach of the rule or regulation will subject the violator to
517-7 a penalty and that the full text of the rule or regulation is on
517-8 file in the principal office of the authority where it may be read
517-9 by any interested person. Any number of rules or regulations may
517-10 be included in one notice.
517-11 (c) The penalty for violation of a rule or regulation is not
517-12 effective and enforceable until five days after the last
517-13 publication of the notice. Five days after the last publication,
517-14 the published rule or regulation shall be in effect, and ignorance
517-15 of it is not a defense to a prosecution for the enforcement of the
517-16 penalty.
517-17 (d) The board may set a reasonable penalty for the breach of
517-18 a rule or regulation of the authority. A penalty shall not exceed
517-19 a fine of more than $200. The penalty shall be in addition to any
517-20 other penalties and remedies provided by the laws of this state and
517-21 may be enforced by complaints filed in the appropriate court of
517-22 jurisdiction in the county in which the authority's principal
517-23 office is located or in the county in which the violation is
517-24 alleged to have occurred.
517-25 (e) After the publication required by Subsection (b), a rule
517-26 or regulation adopted by the authority shall be recognized by the
518-1 courts as if it were a penal ordinance of a city.
518-2 Sec. 270.032. ACQUISITION OF PROPERTY; ADDITIONAL PROVISIONS
518-3 REGARDING EMINENT DOMAIN. (a) The authority may acquire, by
518-4 purchase, lease, gift, or condemnation, any land, easements, or
518-5 other property, or any interest in land, easements, or other
518-6 property, within or outside the authority, for any purpose or
518-7 function authorized by this chapter.
518-8 (b) The authority may elect to condemn either the fee simple
518-9 title or an easement or other interest only, notwithstanding any
518-10 other provisions of this chapter. The right of eminent domain
518-11 shall be exercised by the authority in the manner provided by
518-12 Chapter 21, Property Code. The authority is a water improvement
518-13 district within the meaning of that chapter. The proceedings shall
518-14 be instituted under the direction of the board and in the name of
518-15 the authority. If the authority, in the exercise of the power of
518-16 eminent domain or power of relocation or any other power, makes
518-17 necessary the relocation, raising, rerouting, changing the grade,
518-18 or altering the construction of any highway, railroad, electric
518-19 transmission line, telephone or telegraph properties and
518-20 facilities, or pipeline, all necessary relocations, raising,
518-21 rerouting, changing the grade, or alteration of construction shall
518-22 be accomplished at the sole expense of the authority.
518-23 Sec. 270.033. CONTRACTS WITH AGENCIES AND POLITICAL
518-24 SUBDIVISIONS. The authority may contract, on the terms and
518-25 conditions as the parties may agree, with all cities, public
518-26 agencies, and other political subdivisions, including the United
519-1 States government and any of its agencies and the states of Texas
519-2 and Louisiana and any of their agencies, with respect to any power,
519-3 function, or duty of the authority.
519-4 Sec. 270.034. APPLICATION OF REGIONAL WASTE DISPOSAL ACT.
519-5 (a) The authority is a district under Chapter 30, and all the
519-6 provisions of that chapter are applicable to the authority except
519-7 to the extent of any conflict with this chapter, in which case this
519-8 chapter shall prevail.
519-9 (b) A city, public agency, or other political subdivision
519-10 may contract with the authority in any manner authorized by Chapter
519-11 30, provided, however, that the city, public agency, or other
519-12 political subdivision may execute contracts with the authority and
519-13 may determine, agree, and pledge that payments under the contract
519-14 shall be payable from the source or sources described in Section
519-15 30.030(c), subject only to the authorization of the contract,
519-16 pledge, and payments by a two-thirds vote of the governing board of
519-17 the city, public agency, or political subdivision.
519-18 (c) The authority and all cities, public agencies, and other
519-19 political subdivisions shall have all the rights, powers, and
519-20 authority with respect to the control, storage, preservation,
519-21 transmission, treatment, and disposition of storm water and
519-22 floodwater, and the water of rivers and streams, and with respect
519-23 to any other power, function, or activity of the authority granted,
519-24 permitted, and authorized to districts and public agencies by
519-25 Chapter 30, with respect to waste, waste disposal systems, and
519-26 treatment facilities. Contracts made pursuant to this subsection
520-1 are subject to the provisions of Subsection (b).
520-2 Sec. 270.035. CONTRACT CHARGES. All cities, public
520-3 agencies, and other political subdivisions may set, charge, and
520-4 collect fees, rates, charges, rentals, and other amounts for any
520-5 service or facilities provided pursuant to or in connection with
520-6 any contract with the authority and may pledge amounts sufficient
520-7 to make all payments required under the contract.
520-8 Sec. 270.036. BONDS. (a) For the purpose of providing
520-9 funds to acquire, purchase, construct, improve, enlarge, or equip
520-10 any property, buildings, structures, or other facilities for any
520-11 purpose or power authorized by law, the board may issue revenue
520-12 bonds from time to time and in one or more issues or series
520-13 pursuant to this section.
520-14 (b) The bonds may be payable from and secured by liens on
520-15 and pledges of all or any part of the revenues, income, or receipts
520-16 derived by the authority from its ownership or operation of the
520-17 property, buildings, structures, or facilities or any other
520-18 resources of the authority, including the proceeds or revenues from
520-19 contracts with any person, firm, corporation, city, public agency,
520-20 or other political subdivision.
520-21 (c) The bonds must be issued to mature serially or otherwise
520-22 within not to exceed 50 years, and provision may be made for the
520-23 subsequent issuance of additional parity bonds, or subordinate lien
520-24 bonds, under any terms or conditions that may be provided in the
520-25 resolution authorizing the issuance of the bonds.
520-26 (d) The bonds, and any interest coupons appertaining to the
521-1 bonds, are negotiable instruments within the meaning and for all
521-2 purposes of the Business & Commerce Code, provided, however, that
521-3 the bonds may be issued registrable as to principal alone or as to
521-4 both principal and interest.
521-5 (e) The bonds shall be executed and may be made redeemable
521-6 before maturity, may be issued in the form, denominations, and
521-7 manner and under the terms, conditions, and details, may be sold in
521-8 the manner, at the price, and under the terms, and shall bear
521-9 interest at the rates as provided in the resolution authorizing the
521-10 issuance of the bonds. If provided in the bond resolution, the
521-11 proceeds from the sale of the bonds may be used for paying interest
521-12 on the bonds during the period of the acquisition or construction
521-13 of facilities to be provided through the issuance of the bonds, for
521-14 paying expenses of operation and maintenance of facilities, for
521-15 creating a reserve fund for the payment of the principal of and
521-16 interest on the bonds, and for creating other funds, and the
521-17 proceeds from the sale of the bonds may be placed on time deposit
521-18 or invested until needed, to the extent and in the manner provided
521-19 in the bond resolution.
521-20 (f) The authority may pledge all or part of its revenues,
521-21 income, or receipts from fees, rentals, rates, charges, contract
521-22 proceeds or payments, or other resources to the payment of the
521-23 bonds, including the payment of principal, interest, and other
521-24 amounts required or permitted in connection with the bonds. The
521-25 pledged fees, rentals, rates, charges, proceeds, or payments shall
521-26 be set and collected in amounts that will be at a minimum
522-1 sufficient, together with other pledged resources, to provide for
522-2 all payments of principal, interest, and other amounts required in
522-3 connection with the bonds and, to the extent required by the
522-4 resolution authorizing the issuance of the bonds, to provide for
522-5 the payment of expenses in connection with the bonds and for the
522-6 operation, maintenance, and other expenses in connection with the
522-7 facilities.
522-8 (g) The bonds may be additionally secured by mortgages or
522-9 deeds of trust on real property owned or acquired by the authority,
522-10 and by chattel mortgages or liens on personal property appurtenant
522-11 to the real property, and the board may authorize the execution of
522-12 trust indentures, mortgages, deeds of trust, or other forms of
522-13 encumbrances to evidence same.
522-14 (h) The authority may pledge to the payment of the bonds all
522-15 or part of any grant, donation, revenues, or income received or to
522-16 be received from the United States government or any other public
522-17 or private source, whether pursuant to an agreement or otherwise.
522-18 (i) Revenue bonds issued pursuant to this section may be
522-19 refunded as provided by this section or Section 270.040, and the
522-20 bonds may be refunded or otherwise refinanced by the issuance of
522-21 refunding bonds for that purpose, under the terms, conditions, and
522-22 details, and with the security and pledges as determined by
522-23 resolution of the board. All pertinent and appropriate provisions
522-24 of this chapter apply to refunding bonds, which may be issued in
522-25 the manner provided for other bonds authorized under this section.
522-26 Refunding bonds may be sold for cash and delivered in amounts
523-1 necessary to pay the principal, interest, and redemption premium,
523-2 if any, of bonds to be refunded, at maturity or on any redemption
523-3 date; or the refunding bonds may be issued to be exchanged for the
523-4 bonds being refunded, in which case the comptroller shall register
523-5 the refunding bonds and deliver them to the holder or holders of
523-6 the bonds being refunded, in accordance with the provisions of the
523-7 resolution authorizing the refunding bonds. The exchange may be
523-8 made in one delivery or in several installment deliveries. Bonds
523-9 issued at any time by the authority may also be refunded in the
523-10 manner provided by any other applicable law.
523-11 Sec. 270.037. BOND APPROVAL AND REGISTRATION. (a) Bonds
523-12 issued pursuant to this chapter and the appropriate proceedings
523-13 authorizing their issuance shall be submitted to the attorney
523-14 general for examination. If the bonds recite that they are secured
523-15 by a pledge of revenues of any contract, a copy of the contract and
523-16 the proceedings relating to the contract shall be submitted to the
523-17 attorney general. If the attorney general finds that the bonds
523-18 have been authorized and that any such contract has been made in
523-19 accordance with law, the attorney general shall approve the bonds
523-20 and the contract and the bonds shall be registered by the
523-21 comptroller.
523-22 (b) After approval and registration the bonds and the
523-23 contract, if any, are incontestable in any court or other forum,
523-24 for any reason, and are valid and binding obligations in accordance
523-25 with their terms for all purposes.
523-26 Sec. 270.038. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
524-1 DEPOSITS. Bonds issued pursuant to this chapter are legal and
524-2 authorized investments for all banks, trust companies, building and
524-3 loan associations, savings and loan associations, insurance
524-4 companies of all kinds and types, fiduciaries, trustees, and
524-5 guardians and for all interest and sinking funds and other public
524-6 funds of the state and all agencies, subdivisions, and
524-7 instrumentalities of the state, including counties, cities, towns,
524-8 villages, school districts, and all other kinds and types of
524-9 districts, public agencies, and bodies politic. The bonds are
524-10 eligible and lawful security for deposits of public funds of the
524-11 state and all agencies, subdivisions, and instrumentalities of the
524-12 state, including counties, cities, towns, villages, school
524-13 districts, and all other kinds and types of districts, public
524-14 agencies, and bodies politic, to the extent of the face value of
524-15 the bonds, when accompanied by any unmatured interest coupons.
524-16 Sec. 270.039. SOURCE OF AUTHORITY. The provisions of
524-17 Sections 270.029-270.038 are sufficient authority for the issuance
524-18 of bonds, the execution of contracts, and the performance by the
524-19 authority and by cities, public agencies, and other political
524-20 subdivisions of other acts and procedures authorized by those
524-21 provisions, regardless of any other provisions of this chapter and
524-22 without reference to any other provisions of law or any
524-23 restrictions or limitations contained in those provisions, except
524-24 as specifically provided by this subsection and Sections
524-25 270.029-270.038. To the extent of any conflict or inconsistency
524-26 between provisions of this section and Sections 270.029-270.038 and
525-1 any other provision of law, this section and Sections
525-2 270.029-270.038 prevail and control; provided, however, that the
525-3 authority and all cities, public agencies, and other political
525-4 subdivisions may use other provisions of this chapter or other laws
525-5 not in conflict with this section and Sections 270.029-270.038, to
525-6 the extent convenient or necessary to carry out any power or
525-7 authority, express or implied, granted by those sections.
525-8 Sec. 270.040. REFUNDING BONDS. (a) The authority may issue
525-9 refunding bonds for the purpose of refunding any outstanding bonds
525-10 authorized by this chapter and interest on the bonds. Refunding
525-11 bonds may be issued to refund more than one series of outstanding
525-12 bonds and may combine the pledges for the outstanding bonds for the
525-13 security of the refunding bonds, and the refunding bonds may be
525-14 secured by other or additional revenues.
525-15 (b) The provisions of this chapter with reference to the
525-16 issuance of other bonds and their approval by the attorney general
525-17 and the remedies of the holders are applicable to refunding bonds.
525-18 Refunding bonds shall be registered by the comptroller on surrender
525-19 and cancellation of the bonds to be refunded, but in lieu of
525-20 surrender and cancellation, the resolution authorizing the issuance
525-21 of the refunding bonds may provide that the bonds shall be sold and
525-22 the proceeds of the sale deposited in the bank where the original
525-23 bonds are payable, in which case the refunding bonds may be issued
525-24 in an amount sufficient to pay the interest on the original bonds
525-25 to their option date or maturity date and the comptroller shall
525-26 register the refunding bonds without concurrent surrender and
526-1 cancellation of the original bonds.
526-2 Sec. 270.041. DEED OF TRUST LIEN. (a) Bonds, including
526-3 refunding bonds, authorized by this chapter may be additionally
526-4 secured by a deed of trust lien on physical properties of the
526-5 authority and all franchises, easements, water rights and
526-6 appropriation permits, leases and contracts, and all rights
526-7 appurtenant to the properties, vesting in the trustee power to sell
526-8 the properties for payment of the indebtedness, power to operate
526-9 the properties, and all other powers and authority for the further
526-10 security of the bonds.
526-11 (b) The deed of trust may contain any provisions prescribed
526-12 by the board for the security of the bonds and the preservation of
526-13 the trust estate and may make provision for amendment or
526-14 modification of the deed of trust and the issuance of bonds to
526-15 replace lost or mutilated bonds. A purchaser under a sale under
526-16 the deed of trust shall be the owner of the dam or dams and the
526-17 other properties and facilities so purchased and shall have the
526-18 right to maintain and operate them.
526-19 Sec. 270.042. ADDITIONAL PROVISIONS REGARDING APPROVAL AND
526-20 REGISTRATION OF BONDS. (a) After any bonds are authorized by the
526-21 authority, the bonds and the record relating to their issuance
526-22 shall be submitted to the attorney general for examination as to
526-23 the validity of the bonds and the record. If the bonds recite that
526-24 they are secured by a pledge of the proceeds of a contract
526-25 previously made between the authority and a city or other
526-26 governmental agency or district, a copy of the contract and the
527-1 proceedings of the city or other governmental agency or district
527-2 authorizing the contract shall also be submitted to the attorney
527-3 general. If the bonds have been authorized and the contract has
527-4 been made in accordance with the constitution and laws of the
527-5 state, the attorney general shall approve the bonds and contract
527-6 and the bonds then shall be registered by the comptroller.
527-7 (b) After their approval and registration, the bonds and the
527-8 contract, if any, are valid and binding and are incontestable for
527-9 any cause.
527-10 Sec. 270.043. PROVISIONS REGARDING FURNISHING OF ELECTRICITY
527-11 AND OTHER AUTHORITY SERVICES. (a) The rates and charges for
527-12 electric power sold and the services rendered by the authority
527-13 shall be reasonable, nondiscriminatory, and just to the customers,
527-14 and all rates and charges that are unreasonable, discriminatory, or
527-15 unjust to customers are prohibited.
527-16 (b) The commission shall have the power to regulate and set
527-17 the rates and compensation to be charged by the authority for
527-18 electric energy and other services and to prescribe rules and
527-19 regulations under which electric energy is furnished. The
527-20 commission shall not set a rate or compensation that will yield
527-21 less than a fair rate of return on the fair value of the property
527-22 used and useful in generating electric energy and rendering other
527-23 service, but in no event shall the return exceed 10 percent per
527-24 year.
527-25 (c) When the authority proposes to enter into a contract for
527-26 the sale of electric energy, the contract shall be filed with the
528-1 commission for examination. On the filing of the contract, the
528-2 commission shall issue a notice to the parties by registered mail,
528-3 unless notice is waived, informing the parties of the time and
528-4 location of a hearing on the contract. If, following the hearing,
528-5 the commission finds that the contract or proposal is fair and
528-6 reasonable and not detrimental to the public interest, it shall
528-7 approve the contract or proposal. The action of the commission
528-8 pursuant to the hearing shall be conclusive unless an appeal is
528-9 taken.
528-10 (d) If a party is dissatisfied with the action of the
528-11 commission, the party may file a petition stating the party's
528-12 objections to the action in a district court of Travis County
528-13 against the commission as defendant. The findings of the
528-14 commission as to the facts, if supported by substantial evidence,
528-15 shall be conclusive. Appeals may be taken to the court of civil
528-16 appeals and may be removed to the supreme court as in other civil
528-17 causes.
528-18 (e) The commission may exercise its powers of regulation and
528-19 control on its own initiative or on complaint of any person
528-20 aggrieved.
528-21 Sec. 270.044. AUTHORITY AS WATER CONTROL AND IMPROVEMENT
528-22 DISTRICT. The authority has all the powers conferred by general
528-23 laws on water control and improvement districts. In the event of a
528-24 conflict between the provisions of this chapter and the general
528-25 laws relating to water control and improvement districts or any
528-26 other general law, the provisions of this chapter shall prevail.
529-1 Sec. 270.045. ADDITIONAL PROVISIONS REGARDING BONDS AS
529-2 INVESTMENTS AND AS SECURITY FOR DEPOSITS. All bonds of the
529-3 authority are legal and authorized investments for banks, savings
529-4 banks, trust companies, building and loan associations, savings and
529-5 loan associations, insurance companies, fiduciaries, trustees, and
529-6 guardians and for the sinking funds of cities, towns, villages,
529-7 counties, school districts, or other political corporations or
529-8 subdivisions of the state. The bonds are eligible to secure the
529-9 deposit of all public funds of the state and all public funds of
529-10 cities, towns, villages, counties, school districts, or other
529-11 political corporations or subdivisions of the state, and the bonds
529-12 are lawful and sufficient security for the deposits to the extent
529-13 of their value if the bonds are accompanied by all unmatured
529-14 coupons.
529-15 Sec. 270.046. TAX EXEMPTION. The accomplishment of the
529-16 purposes stated in this chapter is for the benefit of the people of
529-17 the state and for the improvement of their properties and
529-18 industries, and the authority, in carrying out the purposes of this
529-19 chapter, will be performing an essential public function under the
529-20 constitution. The authority shall not be required to pay any tax
529-21 or assessment on the project or a part of the project, and the
529-22 bonds issued under this chapter and the transfer of and income from
529-23 the bonds, including the profits made on the sale of the bonds,
529-24 shall at all times be free from taxation within this state.
529-25 Sec. 270.047. ADDITIONAL PROVISIONS REGARDING AUTHORITY
529-26 REGULATIONS AND CONTRACTS. (a) The board may adopt and promulgate
530-1 all reasonable regulations to secure, maintain, and preserve the
530-2 sanitary condition of all water in and to flow into any reservoir
530-3 owned by the authority, to prevent the waste or unauthorized use of
530-4 water, and to regulate residence, hunting, fishing, boating, and
530-5 camping, and all recreational and business privileges, along or
530-6 around any such reservoir and the Sabine River and its tributaries
530-7 or on any body of land or easement owned or controlled by the
530-8 authority.
530-9 (b) The board may contract with responsible persons for the
530-10 construction and operation of toll bridges over the authority's
530-11 water or for ferry service on or over the authority's water, for a
530-12 period not to exceed 20 years in the case of a bridge and not to
530-13 exceed 10 years in the case of a ferry, setting reasonable
530-14 compensation to be charged for service by any such facility and
530-15 requiring adequate bond or bonds from contracting persons,
530-16 associations, or corporations, payable to the authority, in an
530-17 amount and conditioned as required in the judgment of the board.
530-18 The contracts may provide for forfeiture of the particular
530-19 franchise in case of a failure of the licensee to render adequate
530-20 public service.
530-21 (c) The authority may prescribe a reasonable penalty for the
530-22 breach of a regulation of the authority, not to exceed a fine of
530-23 $200 or imprisonment for 30 days, or both a fine and imprisonment.
530-24 The penalty shall be in addition to any other penalties provided by
530-25 the laws of the state and may be enforced by complaints filed in
530-26 the appropriate court of jurisdiction in the county in which the
531-1 violation occurred; provided, however, that no rule or regulation
531-2 that provides a penalty for a violation of the rule or regulation
531-3 shall be in effect, as to enforcement of the penalty, until five
531-4 days after the authority has caused a substantive statement of the
531-5 rule or regulation and the penalty for the violation to be
531-6 published, once a week for two consecutive weeks in the authority.
531-7 The statement to be published must be as condensed as is possible
531-8 to afford sufficient notice as to the act forbidden by the rule or
531-9 regulation. A single notice may embrace any number of regulations.
531-10 The notice must provide the information that breach of the
531-11 regulation or regulations will subject the violator to the
531-12 imposition of a penalty. The notice must also state that the full
531-13 text of the regulation or regulations is on file in the principal
531-14 office of the authority and may be read by any interested person.
531-15 Five days after the second publication of the notice, the
531-16 advertised regulation shall be in effect and ignorance of the
531-17 regulation shall not constitute a defense to a prosecution for the
531-18 enforcement of a penalty. After the required publication, the
531-19 rules and regulations authorized by this section shall judicially
531-20 be known to the courts and shall be considered of a nature similar
531-21 to a valid penal ordinance of a city of the state.
531-22 (d) The authority may employ and constitute its own peace
531-23 officers, and any such peace officer or any county peace officer
531-24 may make arrests when necessary to prevent or stop the commission
531-25 of an offense against the regulations of the authority, or against
531-26 the laws of the state, when the offense or threatened offense
532-1 occurs on any land, water, or easement owned or controlled by the
532-2 authority, or may make an arrest at any place in the case of an
532-3 offense involving injury or detriment to any property owned or
532-4 controlled by the authority.
532-5 Sec. 270.048. PARKS AND RECREATION FACILITIES. The
532-6 authority may establish or otherwise provide for public parks and
532-7 recreation facilities and may acquire land for such purposes.
532-8 Sec. 270.049. LIMITED LIABILITY FOR AQUATIC HERBICIDE
532-9 APPLICATION. (a) In this section, "commercially licensed aquatic
532-10 herbicide applicator" means a person who holds a commercial
532-11 applicator license issued by the Department of Agriculture under
532-12 Chapter 76, Agriculture Code, that authorizes the application of
532-13 aquatic herbicides.
532-14 (b) Except as provided by Chapter 12, Parks and Wildlife
532-15 Code, an authority employee holding a noncommercial aquatic
532-16 herbicide applicator license or a commercially licensed aquatic
532-17 herbicide applicator working under contract with the authority is
532-18 not liable for damages in excess of $2 million for personal injury,
532-19 property damage, or death resulting from the application by the
532-20 applicator of aquatic herbicide in compliance with applicable law
532-21 and the terms of the license or permit.
532-22 CHAPTER 271. SAN ANTONIO RIVER AUTHORITY
532-23 Sec. 271.001. CREATION. (a) A conservation and reclamation
532-24 district to be known as the "San Antonio River Authority" is
532-25 created. The authority is a governmental agency, a municipality,
532-26 body politic and corporate.
533-1 (b) The authority is created under and is essential to
533-2 accomplish the purposes of Section 59, Article XVI, Texas
533-3 Constitution, including the construction, maintenance, and
533-4 operation of navigable canals or waterways authorized by this
533-5 chapter and the control of the waters of those parts of all rivers
533-6 and streams and their tributaries that are within the boundaries of
533-7 the authority.
533-8 Sec. 271.002. DEFINITIONS. In this chapter:
533-9 (1) "Authority" means the San Antonio River Authority.
533-10 (2) "Board" means the board of directors of the
533-11 authority.
533-12 (3) "Director" means a member of the board.
533-13 (4) "Federal" means the government of the United
533-14 States or its functions or subsidiary agencies.
533-15 (5) "Flood plain" means the area of the channel of a
533-16 river or stream and those portions of land abutting and adjacent to
533-17 the channel that are reasonably required to carry floodwaters.
533-18 (6) "Person" means an individual, partnership,
533-19 association, corporation, business trust, legal representative, or
533-20 receiver or any organized group of persons.
533-21 (7) "Professional services" means services rendered,
533-22 either individually or by firms, by accountants, attorneys,
533-23 engineers, surveyors, geologists, physicians, surgeons, laboratory
533-24 technicians, bond brokers, fiscal advisers, appraisers,
533-25 statisticians, and researchers and by such other vocations,
533-26 callings, occupations, or employments involving labor, skill,
534-1 education, special knowledge, and compensation or profit in which
534-2 the labor and skill involved are predominantly mental or
534-3 intellectual rather than physical or manual.
534-4 (8) "San Antonio River Basin" means all of the area
534-5 except Bandera, Real, and Kerr counties that has topographic
534-6 characteristics causing surface waters to flow into the San Antonio
534-7 River and its tributaries.
534-8 (9) "State" means or relates to the government of the
534-9 State of Texas or such of its functions and agencies as are
534-10 appropriate to accomplish the objectives of this chapter.
534-11 Sec. 271.003. BOUNDARIES OF THE AUTHORITY; FINDING OF
534-12 BENEFIT. (a) The authority includes all of the territory within
534-13 the Bexar, Wilson, Karnes, and Goliad counties.
534-14 (b) It is found and determined that all of the land included
534-15 in the authority will benefit from the exercise of the power
534-16 conferred by this chapter.
534-17 Sec. 271.004. POWERS AND DUTIES OF THE AUTHORITY. (a) The
534-18 authority has all of the powers of the state granted under Section
534-19 59, Article XVI, Texas Constitution, to effectuate the
534-20 construction, maintenance, and operation of navigable canals or
534-21 waterways, to effectuate flood control, to effectuate the
534-22 conservation and use for all beneficial purposes of groundwater,
534-23 storm waters, floodwaters, and unappropriated flow waters in the
534-24 authority, to effectuate irrigation, to effectuate soil
534-25 conservation, to effectuate sewage treatment, to effectuate
534-26 pollution prevention, to encourage and develop parks and
535-1 recreational facilities and to preserve fish, to effectuate
535-2 forestation and reforestation, and to do all things required for
535-3 those purposes, subject only to:
535-4 (1) declarations of policy by the legislature as to
535-5 the use of water;
535-6 (2) continuing supervision and control by the
535-7 commission and any board or agency that succeeds to its duties;
535-8 (3) the provisions of Section 11.024, prescribing the
535-9 priorities of uses for water; and
535-10 (4) water rights legally acquired by municipalities
535-11 and other users.
535-12 (b) Subject to the provisions of Subsection (a), the
535-13 authority shall exercise the powers, rights, privileges, and
535-14 functions provided by this section and Sections 271.005-271.015, in
535-15 the manner and for the purposes specified in those sections and in
535-16 this chapter, for the greatest practicable measure of conservation
535-17 and beneficial utilization of all groundwater, storm waters,
535-18 floodwaters, and unappropriated flow waters of the authority.
535-19 Sec. 271.005. NAVIGATION. (a) The authority may promote,
535-20 construct, maintain, and operate or may make practicable, promote,
535-21 aid, and encourage the construction, maintenance, and operation of
535-22 navigable canals or waterways, and all navigational systems or
535-23 facilities auxiliary to navigable canals or waterways, using the
535-24 natural bed and banks of the San Antonio River to its junction with
535-25 the Guadalupe River where practicable and from there traversing
535-26 such route as may be found by the authority to be most feasible and
536-1 practicable to connect with the Gulf Intracoastal Waterway or with
536-2 any new canal to be constructed or with any harbor at or near San
536-3 Antonio Bay or the Gulf of Mexico and also using such new
536-4 correlated artificial waterways, together with all locks and other
536-5 works, structures, and artificial facilities, as may be necessary
536-6 and convenient for the construction, maintenance, and operation of
536-7 the navigable canals or waterways and all navigational systems or
536-8 facilities auxiliary to them.
536-9 (b) The authority may construct or cause to be constructed
536-10 the system of artificial waterways, canals, locks, works, and other
536-11 facilities to connect the watershed area of the San Antonio River,
536-12 including navigation to or at a point near the city of San Antonio,
536-13 with the Gulf Intracoastal Waterway or with any new canal to be
536-14 constructed or with any harbor at or near San Antonio Bay or the
536-15 Gulf of Mexico.
536-16 (c) The authority may control, develop, store, and use the
536-17 natural flow and floodwaters of the San Antonio River and its
536-18 tributaries for the purpose of operating and maintaining the
536-19 navigable canals or waterways and all navigational systems or
536-20 facilities auxiliary to the canals and waterways; provided,
536-21 however, that the navigational use shall be subordinate to the
536-22 consumptive use of water, and navigation shall be incidental to the
536-23 consumptive use of water.
536-24 (d) In the case of the construction of the navigable canals
536-25 or waterways and all navigational systems or facilities auxiliary
536-26 to them by the federal government or otherwise, the authority may
537-1 construct, maintain, and operate lateral connecting canals and
537-2 turning basins to serve local needs, and may also provide,
537-3 construct, acquire, purchase, take over, lease from others, lease
537-4 to others, maintain, operate, develop, and regulate, or by
537-5 franchise control, wharves, docks, warehouses, grain elevators,
537-6 bunkering facilities, belt or terminal railroads, floating plants,
537-7 lighterage, towing facilities, and all other facilities incident to
537-8 or in aid of the efficient operation and development of the canals
537-9 or waterways and all navigational systems or facilities auxiliary
537-10 to them, and any ports incident to them, whether on land or on
537-11 water.
537-12 (e) If the construction or maintenance and operation of the
537-13 navigable canals or waterways and all navigational systems or
537-14 facilities auxiliary to the canals or waterways is taken over by
537-15 the federal government or any agency of the federal government, the
537-16 authority may make and enter into any contracts lawfully required
537-17 by the federal government, including assignments and transfers of
537-18 property and rights of property and easements and privileges and
537-19 all other lawful things and acts necessary and required to meet the
537-20 requirements of the federal government, or any agency of the
537-21 federal government, in taking over the construction or maintenance
537-22 and operation of the navigable canals or waterways and all
537-23 navigational systems or facilities auxiliary to the canals and
537-24 waterways.
537-25 (f) The authority may grant a franchise or right to any
537-26 person or body politic or corporate for the use of the navigable
538-1 canals or waterways and all navigational systems or facilities
538-2 auxiliary to the canals or waterways or any facility in aid of
538-3 navigation. A person or body politic or corporate may not provide,
538-4 maintain, or operate any facility in aid of navigation in any way
538-5 connected with the navigable canals or waterways and all
538-6 navigational systems or facilities auxiliary to the canals or
538-7 waterways and intended for use by the public within the meaning and
538-8 intent of this chapter, except by and under the franchise granted
538-9 by the authority in the form of an ordinance as provided by this
538-10 chapter.
538-11 (g) A franchise may be granted under Subsection (f) for a
538-12 term not to exceed 50 years. An ordinance granting the franchise:
538-13 (1) may contain provisions for the payment of
538-14 reasonable fees or other charges to be paid to the authority; and
538-15 (2) shall contain:
538-16 (A) provisions adequate to regulate the fees,
538-17 tolls, rates, or exactions to be demanded for the use of, or
538-18 service to be rendered by, any means or facility to be provided or
538-19 operated under the franchise, so that the terms will be uniform,
538-20 reasonable, and without discrimination against any person, both as
538-21 to charges and the conditions of use or service; and
538-22 (B) all provisions reasonably required to
538-23 procure service adequate to serve the public necessity and
538-24 convenience.
538-25 (h) The authority may grant a franchise for the design,
538-26 construction, repair, enlargement, alteration, maintenance, or
539-1 operation of, service from, or use of any facility to be provided
539-2 for use in aid of navigation on the navigable canals or waterways
539-3 and all navigational systems or facilities auxiliary to the canals
539-4 or waterways, whether on land or in or on water.
539-5 (i) In granting a franchise under this section, the
539-6 authority may require:
539-7 (1) uniform and adequate analytic accounting systems
539-8 and forms;
539-9 (2) periodic verified reports based on the accounting
539-10 system;
539-11 (3) audits by the authority; and
539-12 (4) other reasonable regulations designed to protect
539-13 the public.
539-14 (j) To procure observance of the conditions of a franchise
539-15 granted under this section and compliance with the rules and
539-16 regulations established by ordinance of the authority, to be
539-17 adopted as provided in this chapter, the ordinance may provide
539-18 reasonable and commensurate penalties set by general law, not to
539-19 exceed the limit for penalties provided by this chapter.
539-20 (k) Unless the franchise otherwise provides, the forfeiture
539-21 or suspension of a franchise granted under this chapter may be only
539-22 because of discrimination in rendering service, in affording use,
539-23 or in taking or demanding a toll, rate, or charge. Forfeiture or
539-24 suspension of a franchise granted under this section, unless
539-25 otherwise provided in the franchise, shall be on a decree of a
539-26 district court within the county in which the authority maintains
540-1 its general office.
540-2 (l) The authority may by ordinance establish rules necessary
540-3 or designed to protect the physical property owned by the
540-4 authority, or physical property owned or operated by another under
540-5 a franchise granted under this section, or to effect the safety or
540-6 efficient use of the property. In the ordinance the authority may
540-7 provide a reasonable and commensurate penalty for the violation of
540-8 a rule. The penalty, which shall be cumulative of other penalties
540-9 provided by general law, may not exceed the limit for penalties
540-10 provided by this chapter.
540-11 Sec. 271.006. FLOOD CONTROL AND FLOOD PLAIN MANAGEMENT. The
540-12 authority may prevent and aid in the prevention of damage to
540-13 persons and property by the overflow of rivers, streams, or
540-14 tributaries of rivers and streams within the authority, including
540-15 the study and designation of flood plains and their regulation.
540-16 Sec. 271.007. WATER CONSERVATION, STORAGE, PROCUREMENT,
540-17 DISTRIBUTION AND SUPPLY. (a) The authority may store and conserve
540-18 water for the greatest beneficial use, for standby service as well
540-19 as for the actual delivery of water.
540-20 (b) The authority may conserve water for uses within or
540-21 outside the authority, including providing water supply services
540-22 for cities and towns and the right to sell water within or outside
540-23 the authority.
540-24 (c) The authority may acquire water appropriation permits
540-25 within or outside the authority.
540-26 (d) The authority may purchase water, water supply
541-1 facilities, or conservation storage capacity within or outside the
541-2 authority.
541-3 (e) The authority may execute water supply contracts with
541-4 users of water within or outside the authority for stand-by service
541-5 as well as for the actual delivery of water.
541-6 (f) The authority may provide water for the development of
541-7 commercial and industrial enterprises within or outside the
541-8 authority.
541-9 (g) The authority may bring water into the boundaries of the
541-10 authority.
541-11 (h) The authority may construct, acquire, equip, acquire
541-12 storage rights at, and operate and maintain dams and reservoirs,
541-13 either within or outside the authority, in carrying out the powers
541-14 conferred on the authority, or may exercise such powers in
541-15 conjunction with others.
541-16 (i) The authority may contract for, operate, maintain, or
541-17 otherwise provide water supply lines and water purification and
541-18 water pumping systems and facilities either within or outside the
541-19 authority.
541-20 (j) The authority may execute contracts with municipalities
541-21 and others involving the construction of reservoirs, dams, water
541-22 supply lines, and water purification and pumping facilities and the
541-23 furnishing of water supply service substantially in the manner
541-24 provided by Section 402.020, Local Government Code, for districts
541-25 organized and created pursuant to Section 59, Article XVI, Texas
541-26 Constitution, extended so as to permit such contracts with
542-1 individuals, partnerships, and all classes of corporations and to
542-2 permit the inclusion of provisions for the operation, maintenance,
542-3 and ownership of such properties. The powers granted the authority
542-4 in this section are not to be construed as a limitation on the
542-5 powers, rights, privileges, and functions otherwise granted by this
542-6 chapter.
542-7 (k) The authority may acquire from the United States
542-8 government, through the secretary of the army or the secretary of
542-9 the interior or any of its officials authorized to make such
542-10 contracts, from the state or an agency of the state, or from any
542-11 privately financed reservoirs, unsold conservation storage capacity
542-12 at any dam within or outside the authority constructed or to be
542-13 constructed either by or with the assistance of the United States
542-14 government or the state, or both. The authority may acquire
542-15 additional conservation storage capacity that may be provided at
542-16 any such dam.
542-17 Sec. 271.008. IRRIGATION. The authority may provide water
542-18 for the irrigation of lands within and outside the authority, and
542-19 incident to that purpose may construct, operate, and maintain
542-20 supply lines and pumping systems and facilities either within or
542-21 outside the authority.
542-22 Sec. 271.009. SOIL CONSERVATION. (a) The authority may
542-23 provide for the conservation of soils and other surface resources
542-24 within the authority against destructive erosion, for the
542-25 prevention of the increased threat of flood caused by soil erosion,
542-26 and for the prevention of sedimentation and siltation of lands,
543-1 channels, and reservoirs, including the right either to act as
543-2 local sponsoring agent for upstream soil and water conservation and
543-3 flood prevention projects authorized by state or federal agencies
543-4 in conjunction with soil conservation districts or to aid and
543-5 supplement the work of such upstream soil and water conservation
543-6 and flood prevention projects.
543-7 (b) The authority may make arrangements satisfactory to the
543-8 secretary of agriculture of the United States for defraying costs
543-9 of operating and maintaining the projects described by Subsection
543-10 (a) in accordance with regulations promulgated by the secretary of
543-11 agriculture; provided, however, that any portion of the total
543-12 construction cost of any such project that is allocable to flood
543-13 control or soil conservation shall be paid for or financed by funds
543-14 that have their source in the county in which the project is
543-15 located. The funds may be of any kind or character except taxes
543-16 collected in accordance with the provisions of Sections 271.026 and
543-17 271.027.
543-18 Sec. 271.010. SEWAGE TREATMENT AND SOLID WASTE DISPOSAL.
543-19 (a) Except as provided by Subsection (b) as a necessary aid to the
543-20 conservation, control, preservation, purification, and distribution
543-21 of surface waters and groundwater within the authority, the
543-22 authority may construct, own, operate, maintain, or otherwise
543-23 provide within the San Antonio River Basin sewage gathering,
543-24 treatment, or disposal services, including solid waste disposal
543-25 services, may charge for those services, and may make contracts in
543-26 reference to those services with counties, municipalities, and
544-1 others.
544-2 (b) The authority may not exercise the powers granted by
544-3 this section within the boundaries of Kerr, Real, or Bandera
544-4 counties unless the commissioners court of the county or counties
544-5 has consented by a majority vote to the exercise of those powers
544-6 within the county or counties.
544-7 Sec. 271.011. POLLUTION PREVENTION. (a) The authority may
544-8 provide for the study, correcting, and control of both artificial
544-9 and natural pollution, including organic, inorganic, and thermal
544-10 pollution, of all groundwater or surface water within the San
544-11 Antonio River Basin.
544-12 (b) Except as provided by Subsection (c), the authority may
544-13 by ordinance promulgate rules and regulations with regard to
544-14 pollution, both artificial and natural, may police to enforce the
544-15 rules and regulations, and may provide reasonable and commensurate
544-16 penalties for the violation of the rules and regulations. The
544-17 penalties, which shall be cumulative of any penalties fixed by
544-18 general law, may not exceed the limit for penalties provided by
544-19 this chapter.
544-20 (c) An ordinance enacted under this section may not be
544-21 promulgated in any county or counties outside the boundaries of the
544-22 authority.
544-23 Sec. 271.012. PARKS, RECREATIONAL FACILITIES, AND
544-24 PRESERVATION OF FISH. For the encouragement and development of
544-25 parks and recreational facilities and the preservation of fish, the
544-26 authority may acquire additional land adjoining any permanent work
545-1 of improvement constructed within the authority for the purpose of
545-2 developing parks or recreational facilities. The authority may
545-3 negotiate contracts with any county, municipality, municipal
545-4 corporation, person, firm, corporation, nonprofit organization, or
545-5 state or federal agency for the operation or maintenance of any
545-6 such park or recreational facility. The preservation of fish shall
545-7 be in accordance with rules and regulations, if any, prescribed by
545-8 the Parks and Wildlife Department.
545-9 Sec. 271.013. FORESTATION AND REFORESTATION. The authority
545-10 may forest and reforest and aid in the foresting and reforesting of
545-11 all areas within the authority.
545-12 Sec. 271.014. CONTRACTS. (a) The authority may make
545-13 contracts and execute instruments necessary or convenient to the
545-14 exercise of the powers, rights, privileges, and functions conferred
545-15 on it by this chapter. The contracts or instruments may be with
545-16 the United States and its agencies, with counties, cities,
545-17 municipal corporations, political subdivisions, and districts, and
545-18 with private persons, partnerships, associations, and corporations.
545-19 The authority shall make and execute the contracts and instruments
545-20 in accordance with the procedures provided by this section.
545-21 (b) Concerning any wholesale contract for the sale,
545-22 purchase, procurement, distribution, or supply of water or
545-23 conservation storage capacity or for the construction of a
545-24 navigable canal or waterway or any contract authorized by Section
545-25 411.003, Local Government Code, the affirmative vote of at least
545-26 seven members of the board is required for the approval of
546-1 confirmation or ratification of the contract. Of those seven
546-2 affirmative votes, at least three affirmative votes must be cast by
546-3 directors from Bexar County, at least one affirmative vote must be
546-4 cast by a director from Wilson County, at least one affirmative
546-5 vote must be cast by a director from Karnes County, and at least
546-6 one affirmative vote must be cast by a director from Goliad County.
546-7 The authority may use any such contract as the sole basis, or as a
546-8 supplement to the basis, for securing the authority's bonds.
546-9 (c) Concerning any construction, maintenance, operation or
546-10 repair contract, any contract for the purchase of material,
546-11 equipment, or supplies, or any contract for services other than
546-12 professional services, if the contract will require an estimated
546-13 expenditure of more than the maximum amount for which competitive
546-14 bidding is required by statute for any political subdivision of the
546-15 state or if the contract is for a term of two years or more, the
546-16 board, on the affirmative vote of a majority of a quorum present at
546-17 any regular or special meeting, shall award the contract to the
546-18 lowest and best bidder. The board by bylaw shall promulgate the
546-19 procedures for the publication of notice to bidders and related
546-20 procedures and may, within the limitations provided by this
546-21 section, from time to time prescribe the amount of estimated
546-22 expenditures to be subjected to competitive bidding. In the event
546-23 of an emergency, the authority may let such contracts as are
546-24 necessary to protect and preserve the public health and welfare or
546-25 the properties of the authority without such bidding procedures.
546-26 Members of the board shall be ineligible to submit such bids. Any
547-1 provision of this section to the contrary notwithstanding, the
547-2 authority may purchase surplus property from the United States by
547-3 negotiated contract and without the necessity of advertising for
547-4 bids.
547-5 Sec. 271.015. GENERAL POWERS AND DUTIES. (a) The authority
547-6 is vested with such title and right of control as the state has, or
547-7 may have, in, to, and concerning the natural bed and banks of the
547-8 San Antonio River in its entire length, and all of its tributaries
547-9 as are within the boundaries of the authority as defined by Section
547-10 271.003, and the authority is further vested with such title and
547-11 right of control as the state has, or may have, in, to, and
547-12 concerning the natural bed and banks of any other navigable stream
547-13 or tributary of such stream as may be situated within the
547-14 boundaries of the authority; which investment, however, shall be in
547-15 trust and to authorize the authority to make such uses or
547-16 disposition of such lands and rights and the proceeds, income,
547-17 revenues, or trading values of those lands and rights as in actual
547-18 experience may prove to be reasonably required for, or in aid of,
547-19 the accomplishment of the purposes of this chapter.
547-20 (b) The authority may make preliminary investigations and
547-21 surveys in the manner and for the purposes specified in Chapters 49
547-22 and 51, either independently at its own cost or jointly with
547-23 others, or may contribute to the cost of investigations and surveys
547-24 when done by another, in order to procure cooperation by the
547-25 government of the United States to the end that any project
547-26 lawfully within the purposes of this chapter may be approved for
548-1 construction as a federal project under such contractual terms and
548-2 conditions as may be demanded by the congress.
548-3 (c) The authority may expend all sums reasonably determined
548-4 by the board to be necessary or expedient for seeking cooperation
548-5 in accomplishing the objectives of this chapter from the federal
548-6 government or any and all other persons, creatures, or entities,
548-7 whether natural or creatures of law or contract.
548-8 (d) Subject to the provisions of this chapter, the authority
548-9 may sell or otherwise dispose of property of any kind, real,
548-10 personal, or mixed, or any interest in property, that is not
548-11 necessary to the carrying on of the business of the authority.
548-12 (e) The authority may overflow and inundate any public lands
548-13 and public property and may require the relocation of roads and
548-14 highways in the manner and to the extent permitted to districts
548-15 organized under general laws pursuant to Section 59, Article XVI,
548-16 Texas Constitution. If the authority, in the exercise of the power
548-17 of eminent domain or power of relocation or any other power granted
548-18 under this chapter, makes necessary the relocation, raising,
548-19 rerouting, changing the grade, or altering the construction of any
548-20 railroad or street railway, all such necessary relocation, raising,
548-21 rerouting, changing of grade, or alteration of construction shall
548-22 be accomplished at the sole expense of the authority.
548-23 (f) The authority may construct, extend, improve, maintain,
548-24 and reconstruct, may cause to be constructed, extended, improved,
548-25 maintained, and reconstructed, and may use and operate, facilities
548-26 of any kind necessary or convenient to the exercise of the powers,
549-1 rights, privileges, and functions conferred on the authority by
549-2 this chapter.
549-3 (g) The authority may sue and be sued in its corporate name.
549-4 (h) The authority may adopt, use, and alter a corporate
549-5 seal.
549-6 (i) The authority may adopt and amend its bylaws for the
549-7 management of its affairs.
549-8 (j) The authority may appoint officers, agents, employees,
549-9 and professional consultants, who may not have any interest, direct
549-10 or indirect, in any contracts awarded by the authority.
549-11 (k) The authority may prescribe the duties and set the
549-12 compensation of all officers, agents, employees, and professional
549-13 consultants.
549-14 (l) The authority may acquire by purchase, lease, or gift or
549-15 in any other lawful manner and may maintain, use, and operate
549-16 property of any kind, real, personal or mixed, or any interest in
549-17 property, within and outside the boundaries of the authority,
549-18 necessary or convenient to the exercise of the powers, rights,
549-19 privileges, and functions conferred on the authority by this
549-20 chapter, in the manner provided by general law with respect to
549-21 condemnation or, at the option of the authority, in the manner
549-22 provided by the statutes relative to condemnation by districts
549-23 organized under general law pursuant to Section 59, Article XVI,
549-24 Texas Constitution.
549-25 (m) The authority may condemn lands used or dedicated for
549-26 cemetery purposes in the manner provided by general law if
550-1 reasonably necessary to effectuate the powers, rights, privileges,
550-2 and functions of the authority; provided, however, that when the
550-3 power of condemnation is sought to be exercised with respect to a
550-4 perpetual care cemetery, as defined in Section 711.001, Health and
550-5 Safety Code, as to the condemnation of the perpetual care cemetery
550-6 or a portion of the cemetery, jurisdiction for such purpose is
550-7 conferred by this section on the district court or courts of the
550-8 county in which the cemetery land or any part of the cemetery land
550-9 is located, and the condemnation action shall likewise involve the
550-10 issue of the removal of the dedication of the land as a perpetual
550-11 care cemetery and the issue of the necessity for such taking.
550-12 (n) The authority may borrow money for its corporate
550-13 purposes, may execute proper notes or other evidences of
550-14 indebtedness, and may borrow money and accept grants from the
550-15 United States and in connection with any such loan or grant, may
550-16 enter into such agreements as the United States or such corporation
550-17 or agency may require. The authority may issue negotiable bonds
550-18 for money borrowed in the manner and to the extent provided in
550-19 Section 271.028; provided, however, that nothing in this chapter
550-20 shall be construed to authorize the issuance of any bonds, notes,
550-21 or other evidences of indebtedness of the authority except as
550-22 specifically provided by this chapter, and no issuance of bonds,
550-23 notes, or other evidences of indebtedness, except as specifically
550-24 provided by this chapter, shall ever be authorized except by an act
550-25 of the legislature.
550-26 (o) The authority may obtain loans from and accept grants
551-1 from the United States and its agencies and from the state and its
551-2 agencies and may participate in and be the beneficiary of any plan
551-3 which may be evolved by the state or federal government for
551-4 guaranteeing or otherwise subsidizing the obligations of the
551-5 authority.
551-6 (p) The authority may adopt and promulgate by ordinance all
551-7 reasonable rules and regulations for purposes provided in this
551-8 chapter and generally to secure and protect all of its property and
551-9 all of its works of improvement and to regulate residence, hunting,
551-10 fishing, boating, and camping, and all recreational and business
551-11 privileges, on any navigable river of the authority or any
551-12 reservoir of the authority or on any land owned by the authority.
551-13 The authority may prescribe a reasonable and commensurate penalty
551-14 for the violation of a rule or regulation of the authority. The
551-15 penalty, which shall be cumulative of any penalties fixed by
551-16 general law, may not exceed a fine of $200 or imprisonment for 180
551-17 days or both a fine and imprisonment. A rule or regulation that
551-18 provides a penalty for a violation does not take effect, as to
551-19 enforcement of the penalty, until five days after the authority has
551-20 published a substantive statement of the rule or regulation and the
551-21 penalty for the violation once a week for three consecutive weeks
551-22 in a newspaper of general circulation in each county in which the
551-23 rule or regulation is to be effective. The substantive statement
551-24 to be published must be as condensed as possible and must afford
551-25 sufficient notice as to the act forbidden by the rule or
551-26 regulation. One notice may embrace any number of regulations. The
552-1 notice must state that breach of the regulation or regulations will
552-2 subject the violator to the imposition of a penalty and that the
552-3 full text of the regulations is on file in the principal office of
552-4 the authority, where it may be read by any interested person. Five
552-5 days after the third publication of the notice required by this
552-6 subsection, the advertised regulation shall be in effect and
552-7 ignorance of the regulation shall not constitute a defense to
552-8 prosecution for the enforcement of a penalty. After the required
552-9 publication, the rules and regulations authorized by this
552-10 subsection shall judicially be known to the courts and shall be
552-11 considered of a nature like unto that of a valid penal ordinance of
552-12 a city of the state. The authority shall be primarily liable for
552-13 any court costs incurred under this subsection and for the cost to
552-14 maintain any offender committed for imprisonment under this
552-15 subsection. A fine imposed in a proceeding under this subsection
552-16 and paid in money shall be payable to the authority and applied as
552-17 the board directs.
552-18 (q) The authority may designate an official newspaper of the
552-19 authority in each county in the authority. Each of the newspapers
552-20 must be a newspaper with general circulation in the county in which
552-21 it is located.
552-22 (r) The authority may acquire rights-of-way necessary to
552-23 construct, operate, and maintain roads necessary for ingress and
552-24 egress to any work of improvement or to any park, recreational
552-25 facility, or fish or wildlife preserve or reserve.
552-26 (s) The authority may grant concessions and franchises on
553-1 the premises of any works of improvement or any park, recreational
553-2 facility, or fish or wildlife preserve or reserve to any person or
553-3 corporation.
553-4 (t) When germane to the accomplishment of the purposes of
553-5 this chapter, and not otherwise adequately provided by Chapters 49
553-6 and 51 or provided elsewhere in this chapter, the board may adopt
553-7 and promulgate ordinances, which may be done by a majority, except
553-8 as specifically provided elsewhere in this chapter, of the
553-9 directors present at any meeting held in compliance with the
553-10 provisions of the bylaws at which a majority of the board is
553-11 present, constituting a quorum. Notice is not required before the
553-12 passage of an ordinance, except for notice of a special or regular
553-13 meeting of the board as may be provided elsewhere in this chapter.
553-14 After an ordinance is adopted, the board shall cause the ordinance
553-15 to be filed and recorded in the official records of the authority.
553-16 The board may, within its discretion, in addition to filing and
553-17 recording the ordinance in the official records of the authority,
553-18 either cause certified copies of the ordinance to be immediately
553-19 filed of record in the office of the county clerk of each county
553-20 situated in whole or in part within the authority within which the
553-21 ordinance is intended to have application or cause the ordinance to
553-22 be published once or more each week for three or more consecutive
553-23 weeks in a newspaper or newspapers of general circulation in each
553-24 county within the authority within which the ordinance is intended
553-25 to have application. Following any or all of these methods of
553-26 recording or publication, the ordinance shall be in full force and
554-1 effect, and all courts and persons shall be held to have knowledge
554-2 of it, just as though the ordinance had been included in this
554-3 chapter. The county clerk in any county shall file and record all
554-4 certified copies of the ordinance and shall charge for such filing
554-5 and recording the same fees as is provided for recording deeds of
554-6 conveyance. If Title 4 does not provide a specific power or right
554-7 germane to, or appropriate to, or adequate to accomplish a purpose
554-8 of this chapter, and the specific power has been, or may be,
554-9 conferred by law on counties, cities, water improvement districts,
554-10 water control and improvement districts, drainage districts,
554-11 navigation districts, canal corporations, channel and dock
554-12 corporations, deep water corporations, railway corporations,
554-13 terminal railway corporations, telegraph and telephone
554-14 corporations, or other like creatures of the law, then to the
554-15 extent required to make the powers and rights of the authority
554-16 adequate for that purpose, the authority may by ordinance adopt so
554-17 much of the power and right of an entity described by this
554-18 subsection as will enable the authority to effectively accomplish
554-19 that purpose. The adoption of a power or mode of procedure under
554-20 this subsection does not include any incidental limitation that
554-21 would impede the lawful accomplishment of the purposes of this
554-22 chapter. This provision is limited only by the provisions of the
554-23 constitutions of the United States and the state concerning the
554-24 rights of others.
554-25 (u) The authority has all the powers, rights, and
554-26 regulations for government and procedure, as are contained in
555-1 Chapters 49 and 51, which shall be cumulative of those provided by
555-2 this chapter, and such rules for procedure as may be provided by
555-3 ordinances adopted by the authority under other provisions of this
555-4 chapter.
555-5 (v) The authority may provide for the orderly development,
555-6 management, and conservation of all rivers and streams and their
555-7 tributaries that are within the boundaries of the authority in
555-8 order to further economic development.
555-9 Sec. 271.016. AUTHORITY CONSTABULARY. In order to
555-10 accomplish the objectives of this chapter, the authority may
555-11 constitute and maintain its own independent constabulary under oath
555-12 and bond, insofar as is applicable, conditioned as is provided for
555-13 a sheriff of a county. The constabulary shall police the
555-14 authority's property and its controlled facilities and may make
555-15 arrests to prevent injury to the properties or after the offense or
555-16 violation of any penal ordinance of the authority, and, on
555-17 complaint or indictment lawfully had on the offense or violation,
555-18 may make arrests either within or beyond the boundaries of the
555-19 authority.
555-20 Sec. 271.017. DUTIES OF CERTAIN STATE OFFICERS. The
555-21 commission shall cooperate with the authority in the making of
555-22 investigations and plans and the approval of plans for improvements
555-23 to be provided by the authority. The plans are subject to approval
555-24 by the commission when appropriate under the general laws of the
555-25 state; provided, only, that if the federal government has adopted a
555-26 plan for improvements, the plan shall control as to all matters
556-1 except the use of water already under permit from the state.
556-2 Sec. 271.018. BOARD OF DIRECTORS; QUALIFICATIONS OF
556-3 DIRECTORS; VACANCIES; TERM OF OFFICE. (a) The government and
556-4 control of the authority are vested in a board of directors. The
556-5 board consists of 12 directors. Six of the directors must be
556-6 elected from Bexar County, two from Wilson County, two from Karnes
556-7 County, and two from Goliad County.
556-8 (b) Each director serves for a term of six years, and holds
556-9 office until a successor is elected and has qualified by taking the
556-10 oath of office.
556-11 (c) Before assuming the person's duties as director, each
556-12 director shall take the constitutional oath of office, which shall
556-13 be filed in written form with the secretary of the board.
556-14 (d) Vacancies occurring on the board from any county shall
556-15 be filled by appointment by the governor, with the advice and
556-16 consent of the senate, for the unexpired term.
556-17 (e) Any person over the age of 21 years residing within the
556-18 authority and within the county from which the person is elected or
556-19 appointed and possessing the qualifications of a juror is eligible
556-20 to be elected or appointed and to serve as a director.
556-21 Sec. 271.019. ELECTION OF DIRECTORS. (a) All elections
556-22 within the authority must be conducted in accordance with rules
556-23 provided by the bylaws and the Election Code. The results of all
556-24 elections shall be canvassed by the board at the next regular
556-25 meeting following each biennial election. All elections shall be
556-26 held on the third Saturday in January of each odd-numbered year and
557-1 at the polling places designated by the board. The terms of office
557-2 of directors elected at each election after the first election
557-3 shall commence on the first day of February following their
557-4 election. Elections shall be conducted as provided by this
557-5 section.
557-6 (b) Persons seeking to have their names placed on the ballot
557-7 shall make application to the secretary of the board in accordance
557-8 with rules prescribed by the board either in the ordinance calling
557-9 the election or in the bylaws.
557-10 (c) The secretary of the board shall make up the ballot for
557-11 each county from the names of candidates who have filed
557-12 applications, and the placing of the names of the candidates on the
557-13 ballot shall be determined by lot. The drawing of lots for the
557-14 placing of the names of the candidates on the ballot shall be by
557-15 the secretary of the board, and all candidates, or their designated
557-16 representatives, may be present at the drawing.
557-17 (d) The directors from Wilson, Karnes, and Goliad counties
557-18 shall be elected at large from each county. Four directors from
557-19 Bexar County shall be elected from single-member districts and two
557-20 directors shall be elected at large. The four single-member
557-21 districts shall be coterminous with and bear the same number as the
557-22 Bexar County commissioners precincts. A candidate for a
557-23 single-member district position must live in the district the
557-24 candidate seeks to represent.
557-25 (e) The candidates receiving the greatest number of votes,
557-26 that is a plurality, shall be declared elected. Should there be a
558-1 tie in the votes received, the winner of the election shall be
558-2 determined by a majority of the board. The two at-large directors
558-3 of Bexar County shall be elected simultaneously by plurality, and
558-4 the two candidates receiving the greatest number of votes shall be
558-5 declared elected.
558-6 (f) Directors serving from single-member districts at the
558-7 time new single-member districts are adopted shall serve for the
558-8 remainder of the terms to which they were elected regardless of the
558-9 redistricting.
558-10 Sec. 271.020. COMPENSATION AND EXPENSES OF DIRECTORS. A
558-11 director is entitled to the compensation and allowances established
558-12 by general law for each day of official service, whether at a
558-13 meeting of the board or while serving on a committee of the board,
558-14 and in addition is entitled to reimbursement for all expenses
558-15 necessarily incurred by reason of such service. A meeting shall be
558-16 considered a day of service; provided, however, that no charge
558-17 shall be made for more than one meeting held on any one day, and a
558-18 director may not be paid per diem in excess of 150 days in any one
558-19 fiscal year, exclusive of reimbursement for expenses, as
558-20 compensation for service rendered as a director and as a member of
558-21 a committee.
558-22 Sec. 271.021. REMOVAL OF DIRECTORS AND OFFICERS. A director
558-23 or officer is subject to removal or suspension from office, by the
558-24 affirmative vote of eight directors, for incompetency, official
558-25 misconduct, official gross negligence, or habitual drunkenness or
558-26 for nonattendance at six consecutive regular meetings of the board;
559-1 provided, however, that a director or officer may not be removed or
559-2 suspended from office unless charges in writing are filed against
559-3 the director and the director is given the opportunity of a fair
559-4 hearing before the board.
559-5 Sec. 271.022. ORGANIZATION AND MEETINGS OF THE BOARD;
559-6 OFFICERS; QUORUM; MEETINGS. (a) At the first regular meeting of
559-7 the board held in the month of February of each odd-numbered year,
559-8 the board shall elect by majority vote a chairman, a vice chairman,
559-9 a secretary, and a treasurer, and, within the discretion of the
559-10 board, an assistant secretary and an assistant treasurer, who need
559-11 not be members of the board and who may be granted limited powers
559-12 in the bylaws. The officers so elected shall serve for a term of
559-13 two years and until their successors have been elected, except that
559-14 the assistant secretary and the assistant treasurer, if such
559-15 officers are elected, shall hold office at the pleasure of the
559-16 board.
559-17 (b) A quorum at all meetings of the board shall consist of
559-18 not less than seven members. A quorum at all meetings of the
559-19 executive committee shall consist of not less than three members.
559-20 Regular and special meetings of the board shall be held as provided
559-21 by the bylaws, and notice of the meetings shall be given as
559-22 required by the bylaws. All meetings of the board shall be open to
559-23 the public.
559-24 Sec. 271.023. POWERS OF THE BOARD AND EXECUTIVE COMMITTEE;
559-25 MANAGER; EMPLOYEES; SURETY BONDS. (a) The board shall be
559-26 responsible for the management and control of all affairs of the
560-1 authority. The board may exercise the powers provided by this
560-2 section.
560-3 (b) The board may exercise all the powers, rights,
560-4 privileges, and functions conferred by law on the authority.
560-5 (c) The board may adopt all such bylaws as are not
560-6 inconsistent with the law. The bylaws may provide for the
560-7 designation by the board of an executive committee of five members
560-8 upon whom the manager may call for policy decisions and advice
560-9 concerning matters that arise between meetings of the board. The
560-10 executive committee may authorize, on behalf of the authority, the
560-11 execution of any contract involving the expenditure of an amount
560-12 not exceeding $20,000.
560-13 (d) The board may appoint and set the salary of a manager,
560-14 who shall be the chief executive officer of the authority. The
560-15 manager shall employ and supervise, subject to policies promulgated
560-16 by the board, all employees, agents, accountants, attorneys,
560-17 engineers, and others rendering professional services necessary and
560-18 required to accomplish the purposes of this chapter. The manager
560-19 may execute, on behalf of the authority, without specific
560-20 authorization of the board, any contract not subject to competitive
560-21 bidding. The manager may execute on behalf of the authority and
560-22 with specific authorization of the board, any other contract.
560-23 (e) Except as specifically provided by this chapter, all the
560-24 powers, rights, privileges, and functions of the authority may be
560-25 exercised by a majority of the directors present at a meeting of
560-26 the board, or of the executive committee if the sum involved is no
561-1 greater than $20,000, held in compliance with the provisions of the
561-2 bylaws provided a majority of the board, or of the executive
561-3 committee, is present, constituting a quorum.
561-4 (f) The board shall have all such additional powers as may
561-5 be conferred on the authority by other provisions of this chapter,
561-6 Section 59, Article XVI, Texas Constitution, and Chapters 49 and
561-7 51; provided, however, that the directors shall be ineligible to
561-8 engage in any transaction for gain or profit with the authority and
561-9 shall be subject to the provisions of Chapter 171, Local Government
561-10 Code.
561-11 (g) The directors and all officers of the authority who are
561-12 not directors shall, within 15 days after their election or
561-13 appointment, file a good and sufficient bond with the secretary of
561-14 the board. The official bond of each director and officer shall be
561-15 in the sum of $5,000, shall be payable to the authority, shall be
561-16 conditioned on the faithful performance of the person's duties as
561-17 director or officer, and shall be subject to approval by the
561-18 secretary of the board.
561-19 Sec. 271.024. AUDIT. (a) A complete system of accounts
561-20 shall be kept by the authority in accordance with generally
561-21 accepted principles of accounting. Each audit shall cover the
561-22 fiscal year from July 1 to June 30, and a report of the audit shall
561-23 be made before January 1 of each year. A copy of the audit report
561-24 shall be filed with the commission.
561-25 (b) Nothing in this section shall prohibit the authority
561-26 from employing the professional services of an independent
562-1 certified public accountant or firm of certified public accountants
562-2 for any purpose. All books, accounts, contracts, records, papers,
562-3 and archives of the authority shall be kept and maintained at the
562-4 authority's general office and shall be subject to the provisions
562-5 of Chapter 552, Government Code.
562-6 Sec. 271.025. PAYMENT OF DEBTS. Each indebtedness,
562-7 liability, or obligation of the authority for the payment of money,
562-8 however entered into or incurred and whether arising from express
562-9 contracts or implied contracts or otherwise, shall be payable
562-10 solely out of revenue received by the authority with respect to its
562-11 properties and out of any other funds or income from any source
562-12 whatsoever coming into possession of the authority including
562-13 proceeds of the sale of bonds.
562-14 Sec. 271.026. TAXATION. (a) Subject to the limitation as
562-15 to the maximum rate of tax as prescribed in this section, the
562-16 authority may levy and collect throughout the territory of the
562-17 authority such ad valorem taxes as are voted at an election or
562-18 elections called by the board for that purpose and conducted
562-19 throughout the territory of the authority. The maximum rate of tax
562-20 that can be levied and collected for any year shall be two cents on
562-21 the $100 of taxable property based on its assessed valuation, in
562-22 accordance with the conditions and procedures provided by this
562-23 section.
562-24 (b) The board may, by ordinance, call an election to submit
562-25 to the voters for approval of an ad valorem tax; provided, however,
562-26 that a public hearing to discuss the proposed tax issue shall be
563-1 held in each county in the authority. The public hearings shall be
563-2 held not less than 10 days nor more than 25 days prior to the
563-3 scheduled date of the election. The hearings shall be called by
563-4 the board and notice of the time, day, date, place, and purpose of
563-5 the hearings shall be given by publishing the notice in at least
563-6 one newspaper of general circulation in each county where a hearing
563-7 is to be held at least 10 days before the hearing.
563-8 (c) Only qualified electors residing within the boundaries
563-9 of the authority shall be entitled to vote in the election. An
563-10 elector otherwise qualified must vote in the county of the
563-11 elector's residence and at the polling place designated for the
563-12 precinct of the elector's residence. The ordinance calling the
563-13 election shall specify the polling place or places in each of the
563-14 counties. The notice of election will be sufficient as to any
563-15 county within the authority if it states that the election is to be
563-16 held throughout the territory comprising the authority and if it
563-17 specifies the polling place or places in the county. It shall not
563-18 be necessary to publish such details except in the county in which
563-19 they are applicable.
563-20 (d) Returns of the election shall be made to the board, and
563-21 the board shall canvass the returns of the election and adopt an
563-22 ordinance declaring the results. The board may levy taxes within
563-23 the maximum rate voted if a majority of the votes cast throughout
563-24 the authority are in favor of the levy of the tax and if a majority
563-25 of the votes cast in any three counties in the authority are in
563-26 favor of the levy of the tax.
564-1 (e) The rate of tax shall be uniform throughout the
564-2 territory comprising the authority and shall be certified by the
564-3 chairman and the secretary of the board to the tax assessor and the
564-4 tax collector of each included county.
564-5 (f) If the election results are in favor of the levy of a
564-6 tax, the board may borrow money payable from the tax and may
564-7 evidence such loan by a negotiable note given in the name of the
564-8 authority.
564-9 (g) Taxes collected under this section shall be used for the
564-10 purpose of general administration and for other planning and
564-11 services with respect to any of the purposes, rights, privileges,
564-12 and functions of the authority; provided, however, that none of the
564-13 taxes thus collected shall be used to pay for or finance the
564-14 construction of any dams, reservoirs, levees, channels, pipelines,
564-15 or other major physical works of the authority, to pay for the cost
564-16 of any right-of-way acquisitions or the expenses of right-of-way
564-17 acquisition, or to pay damages awarded by any court under Section
564-18 17, Article I, Texas Constitution. It is the intent of this
564-19 chapter that any taxes collected under this section will enable the
564-20 authority to provide for the maximum development of the soil and
564-21 water resources of the authority, it being found and determined
564-22 that the benefits to be realized from such maximum development can
564-23 be obtained only through areawide participation and planning. The
564-24 construction of any dams, reservoirs, levees, channels, pipelines,
564-25 or other major physical works of the authority shall be paid for or
564-26 financed by revenue bonds of the authority to be redeemed either by
565-1 the sale of services or by taxes to be levied by a county or
565-2 municipality and paid over to the authority as an independent
565-3 contractor of the county or municipality. Any taxes collected
565-4 under this section may be used to pay for the operation, repair, or
565-5 maintenance of any flood control, soil conservation, watershed
565-6 protection or erosion structures, or works of improvement
565-7 constructed in cooperation with the federal government; provided,
565-8 however, that any such operation, repair, or maintenance costs
565-9 shall be paid for out of taxes collected under this section in the
565-10 county in which the structure or work of improvement is located.
565-11 The taxes authorized by this section and collected shall not be
565-12 pledged to the redemption of any bonds of the authority.
565-13 Sec. 271.027. RENDITION, ASSESSMENT, LEVYING, AND COLLECTION
565-14 OF TAXES. (a) The rendition and assessment of property for
565-15 taxation and the collection of taxes for the benefit of the
565-16 authority shall be in accordance with the law applicable to
565-17 counties, insofar as such law is applicable. Renditions shall be
565-18 to the county tax assessor of the county in which the property is
565-19 taxable for state and county purposes. The assessor and collector
565-20 in each county shall cause to be placed on the county tax rolls
565-21 such additional column or columns as are needed to show the tax
565-22 levied by the authority and the amount of the tax, based on the
565-23 value of the property as approved finally for state and county
565-24 purposes by the appraisal review board of the county. All of the
565-25 laws for the enforcement of state and county taxes shall be
565-26 available to the authority. The authority has the right to cause
566-1 the officers of each county to enforce the taxes due to the
566-2 authority in that county as provided in the law for the enforcement
566-3 of state and county taxes.
566-4 (b) Taxes assessed and levied for the benefit of the
566-5 authority shall be payable and shall become delinquent at the same
566-6 time, in the same manner, and subject to the same discount for
566-7 advance payment as taxes levied by and for the benefit of the
566-8 county in which the property is taxable. The fee for collecting
566-9 delinquent taxes through prosecution of suit shall be 15 percent of
566-10 the taxes collected by the suit, to be paid over and disbursed in
566-11 each county in the manner that other fees of office are paid over.
566-12 Sec. 271.028. ISSUANCE OF BONDS. (a) For the purpose of
566-13 constructing improvements related to the exercise of any power or
566-14 powers conferred on the authority by law, the authority may issue
566-15 negotiable bonds, either as a single issue or in separate issues,
566-16 from time to time, to be secured by a pledge of revenues, income,
566-17 and funds of the authority without reference to their source and
566-18 having such priority of liens on the revenues, income, and funds as
566-19 may be prescribed in the proceedings authorizing the issuance of
566-20 the bonds; provided, however, that no ad valorem taxes collected in
566-21 accordance with the provisions of Sections 271.026 and 271.027
566-22 shall be pledged to any issue or issues of bonds.
566-23 (b) The authority may issue the bonds provided for in this
566-24 section by action of the board without the necessity of an
566-25 election.
566-26 (c) Bonds of the authority may be:
567-1 (1) sold for cash, at public or private sale, at such
567-2 price or prices as the board determines, provided that the interest
567-3 cost of the money received, computed to maturity in accordance with
567-4 standard bond tables in general use by banks and insurance
567-5 companies, shall not exceed the maximum per annum rate authorized
567-6 by Chapter 1204, Government Code;
567-7 (2) issued on the terms the board determines in
567-8 exchange for property of any kind, real, personal, or mixed, or any
567-9 interest in the property that the board determines necessary or
567-10 convenient for any corporate purpose; or
567-11 (3) issued in exchange for principal amounts or other
567-12 obligations of the authority, matured or unmatured.
567-13 (d) The proceeds of sale of bonds may be deposited in such
567-14 banks or trust company or trust companies and may be paid out
567-15 pursuant to such terms and conditions as may be agreed between the
567-16 authority and the purchasers of the bonds.
567-17 (e) Bonds of the authority must be authorized by resolution
567-18 of the board concurred in by at least eight of the members of the
567-19 board. The bonds must bear such date or dates; mature at such time
567-20 or times; bear interest at such rate or rates not exceeding the
567-21 maximum per annum rate authorized by Chapter 1204, Government Code,
567-22 payable annually or semiannually; be in such denominations; be in
567-23 such form, either coupon or registered; carry such registration
567-24 privileges as to principal only or as to both principal and
567-25 interest and as to exchange of coupon bonds for registered bonds,
567-26 or vice versa, and exchange of bonds of one denomination for bonds
568-1 of another denomination; be executed in such manner; and be payable
568-2 at such place or places, within or outside the state, as the
568-3 resolution or resolutions may provide.
568-4 (f) The resolution or resolutions authorizing the issuance
568-5 of bonds may contain provisions, which shall be part of the
568-6 contract between the authority and the purchaser and successive
568-7 holders of the bonds:
568-8 (1) reserving the right to redeem the bonds at such
568-9 time or times, in such amounts, and at such prices, not exceeding
568-10 105 percent of the principal amount of the bonds plus accrued
568-11 interest, as may be provided in the resolution;
568-12 (2) providing for the setting aside of sinking funds
568-13 or reserve funds and the regulation and disposition of such funds;
568-14 (3) pledging, to secure the payment of the principal
568-15 of and interest on the bonds and of the sinking fund or reserve
568-16 fund payments agreed to be made with respect to the bonds, part or
568-17 all of the revenue and income of every kind and character from any
568-18 source later received by the authority;
568-19 (4) prescribing the purposes to which the bonds or
568-20 bonds later issued, or the proceeds of the bonds, may be applied;
568-21 (5) agreeing to set and collect rates, charges, and
568-22 assessments sufficient to produce net revenues adequate to pay the
568-23 items specified in Subdivisions (1), (2), and (3) and prescribing
568-24 the use and disposition of all revenues;
568-25 (6) prescribing limitations on the issuance of
568-26 additional bonds and on the agreements that may be made with the
569-1 purchasers and successive holders of the bonds;
569-2 (7) relating to the construction, extension,
569-3 improvement, reconstruction, operation, maintenance, and repair of
569-4 the properties of the authority and to the carrying of insurance on
569-5 all or any part of the properties covering loss or damage or loss
569-6 of use and occupancy resulting from specified risks;
569-7 (8) fixing the procedure, if any, by which, if the
569-8 authority desires, the terms of any contract with the holders of
569-9 the bonds may be amended or abrogated, the amount of bonds the
569-10 holders of which must consent to the amendment or abrogation, and
569-11 the manner in which such consent may be given;
569-12 (9) providing for the execution and delivery by the
569-13 authority to a bank or trust company authorized by law to accept
569-14 trusts, or to the United States or any officer or agency of the
569-15 United States, of indentures and agreements for the benefit of the
569-16 holders of the bonds setting forth any or all of the agreements
569-17 authorized by this section to be made with or for the benefit of
569-18 the holders of the bonds and such other provisions as may be
569-19 customary in such indentures or agreements;
569-20 (10) providing that, if the authority issues bonds
569-21 which are payable in whole or in part from utility system revenues
569-22 the authority receives under a contract with a municipality,
569-23 district, river authority, or other political subdivision of the
569-24 state, the payments made under such contract are the paying party's
569-25 operating expenses for the utility system or systems from which
569-26 such payments are to be made to the authority if the contract so
570-1 provides; and
570-2 (11) making such other provisions not inconsistent
570-3 with the provisions of this chapter as the board may approve.
570-4 Sec. 271.029. DEFAULT PROCEDURES. (a) A resolution
570-5 authorizing the issuance of bonds and any indenture or agreement
570-6 entered into pursuant to the resolution may include provisions
570-7 regarding a default on the:
570-8 (1) payment of the interest on any bonds as the
570-9 interest becomes due and payable;
570-10 (2) payment of the principal of any bonds as they
570-11 become due and payable, whether at maturity, by call for
570-12 redemption, or otherwise; or
570-13 (3) performance of an agreement made with the
570-14 purchasers or successive holders of any bonds.
570-15 (b) If a default described by Subsection (a) has occurred
570-16 and has continued for a period, if any, prescribed by the
570-17 resolution authorizing the issuance of the bonds, the trustee under
570-18 the indenture or indentures entered into with respect to the bonds
570-19 authorized by the resolution, or, if there is no indenture, a
570-20 trustee appointed in the manner provided in the resolution by the
570-21 holders of 25 percent in aggregate principal amount of the bonds
570-22 authorized by the resolution and then outstanding may, and on the
570-23 written request of the holders of 25 percent in aggregate principal
570-24 amount of the bonds authorized by the resolution and then
570-25 outstanding shall, in the trustee's own name but for the equal and
570-26 proportionate benefit of the holders of all the bonds, and with or
571-1 without having possession of the bonds:
571-2 (1) by mandamus or other suit, action, or proceeding
571-3 at law or in equity, enforce all rights of the holders of the
571-4 bonds;
571-5 (2) bring suit on the bonds or the appurtenant
571-6 coupons;
571-7 (3) by action or suit in equity, require the authority
571-8 to account as if it were the trustee of an express trust for the
571-9 bondholders;
571-10 (4) by action or suit in equity, enjoin any acts or
571-11 things which may be unlawful or in violation of the rights of the
571-12 holders of the bonds; or
571-13 (5) after such notice to the authority as the
571-14 resolution may provide, declare the principal of all of the bonds
571-15 due and payable, and if all defaults have been made good, then with
571-16 the written consent of the holders of 25 percent in aggregate
571-17 principal amount of the bonds then outstanding, annul the
571-18 declaration and its consequences; provided, however, that the
571-19 holders of more than a majority in principal amount of the bonds
571-20 authorized by the resolution and then outstanding shall, by written
571-21 instrument delivered to the trustee, have the right to direct and
571-22 control any and all action taken or to be taken by the trustee
571-23 under this section.
571-24 (c) A resolution, indenture, or agreement relating to bonds
571-25 may provide that in a suit, action, or proceeding under this
571-26 section, the trustee, whether or not all of the bonds have been
572-1 declared due and payable and with or without possession of any of
572-2 the bonds, shall be entitled as of right to the appointment of a
572-3 receiver who may enter and take possession of all or any part of
572-4 the properties of the authority and operate and maintain the
572-5 properties, and set, collect, and receive rates and charges
572-6 sufficient to provide revenues adequate to apply the items set
572-7 forth in Sections 271.028(f)(1), (2), and (3) and the costs and
572-8 disbursements of the suit, action, or proceeding and apply such
572-9 revenues in conformity with the provisions of this chapter and the
572-10 resolution or resolutions authorizing the bonds.
572-11 (d) In any suit, action, or proceeding by a trustee under
572-12 this section, the reasonable fees, counsel fees, and expenses of
572-13 the trustee and of the receiver or receivers, if any, shall
572-14 constitute taxable disbursements, and all costs and disbursements
572-15 allowed by the court shall be a first charge on any revenues
572-16 pledged to secure the payment of the bonds.
572-17 (e) Subject to the provisions of the constitution, the
572-18 courts of Bexar County shall have jurisdiction of any such suit,
572-19 action, or proceeding by a trustee under this section on behalf of
572-20 the bondholders and of all property involved in the suit, action,
572-21 or proceeding.
572-22 (f) In addition to the powers specifically provided by this
572-23 section, the trustee shall have and possess all powers necessary or
572-24 appropriate for the exercise of the powers specifically provided or
572-25 incident to the general representation of the bondholders in the
572-26 enforcement of their rights.
573-1 Sec. 271.030. BOND APPROVAL AND REGISTRATION. (a) Before
573-2 bonds may be sold by the authority, a certified copy of the
573-3 proceedings for the issuance of the bonds, including the form of
573-4 the bonds, together with any other information that the attorney
573-5 general may require, shall be submitted to the attorney general,
573-6 and if the attorney general finds that the bonds have been issued
573-7 in accordance with law, the attorney general shall approve the
573-8 bonds and execute a certificate to that effect, which shall be
573-9 filed in the office of the comptroller and be recorded in a record
573-10 kept for that purpose. In lieu of the approval by the attorney
573-11 general, the authority may institute proceedings as authorized by
573-12 Chapter 1205, Government Code. The comptroller shall register the
573-13 bonds if the attorney general has filed with the comptroller the
573-14 certificate approving the bonds and the proceedings for the
573-15 issuance of the bonds as provided in this section. Bonds may not
573-16 be issued until the bonds have been registered by the comptroller.
573-17 (b) Bonds approved by the attorney general, registered by
573-18 the comptroller, and issued in accordance with the proceedings as
573-19 approved are valid and binding obligations of the authority and are
573-20 incontestable for any cause after registration.
573-21 (c) Nothing in this chapter shall prevent the authority from
573-22 making a private sale of its bonds to the Texas Water Development
573-23 Board or any other agency of the state or of the United States
573-24 under such terms and conditions as the board in its discretion
573-25 determines advisable, and such private sale is specifically
573-26 authorized by this chapter.
574-1 Sec. 271.031. PURCHASE OF BONDS BY AUTHORITY. The authority
574-2 may, out of any funds available for the purpose, purchase any bonds
574-3 issued by it at a price not exceeding the redemption price
574-4 applicable at the time of the purchase or, if such bonds are not
574-5 redeemable, at a price not exceeding the principal amount of the
574-6 bonds plus accrued interest. All bonds so purchased shall be
574-7 cancelled, and no bonds shall ever be issued in lieu of such bonds.
574-8 Sec. 271.032. BONDS LEGAL FOR INVESTMENT AND SECURITY. The
574-9 bonds of the authority are legal and authorized investments for
574-10 banks, savings banks, trust companies, building and loan
574-11 associations, savings and loan associations, insurance companies,
574-12 fiduciaries, trustees, and guardians and for the sinking funds of
574-13 cities, towns, villages, counties, school districts, or other
574-14 political corporations or subdivisions of the state. The bonds are
574-15 eligible to secure the deposit of all public funds of the state and
574-16 all public funds of cities, towns, villages, counties, school
574-17 districts, or other political corporations or subdivisions of the
574-18 state, and the bonds are lawful and sufficient security for such
574-19 deposits to the extent of their value when accompanied by all
574-20 unmatured coupons.
574-21 Sec. 271.033. PROPERTY OF THE AUTHORITY. (a) Nothing in
574-22 this chapter shall be construed as authorizing the authority, and
574-23 it may not be authorized, to mortgage or otherwise encumber any of
574-24 its property of any kind, real, personal, or mixed, or any interest
574-25 in such property, or to acquire any such property or interest
574-26 subject to a mortgage or conditional sale; provided, however, that
575-1 this subsection shall not be construed as preventing the pledging
575-2 of any revenues and income of the authority of every kind and
575-3 character and from any source whatever, except ad valorem taxes
575-4 collected by the authority in accordance with Sections 271.026 and
575-5 271.027.
575-6 (b) Nothing in this chapter shall be construed as
575-7 authorizing the authority or any receiver of its properties or any
575-8 court to sell, lease, or otherwise dispose of any of the
575-9 authority's property of any kind, real, personal, or mixed, or any
575-10 interest in such property, unless such sale, lease, or other
575-11 disposition has been generally authorized by this chapter;
575-12 provided, however, that the authority may sell or otherwise dispose
575-13 of property of any kind or any interest in property that is not
575-14 necessary to carry on the business of the authority if the board,
575-15 by a majority vote of a quorum present at any regular or special
575-16 meeting, determines that the property is not convenient to the
575-17 business of the authority and is surplus.
575-18 (c) All property of the authority shall at all times be
575-19 exempt from forced sale and nothing in this chapter shall authorize
575-20 the sale of any of the property of the authority under any judgment
575-21 rendered in any suit, and such sales are hereby prohibited and
575-22 forbidden.
575-23 Sec. 271.034. BONDS EXEMPT FROM TAXATION. Bonds and
575-24 interest on bonds issued under this chapter are exempt from
575-25 taxation, except inheritance taxes, by the state or by any
575-26 municipal corporation, county, or other political subdivision or
576-1 taxing district of the state.
576-2 Sec. 271.035. APPEAL BOND NOT REQUIRED. The authority may
576-3 not be required to give bond on any appeal from judgment in any
576-4 court.
576-5 Sec. 271.036. FULL AUTHORITY TO ISSUE BONDS. This chapter,
576-6 without reference to other statutes of the state, constitutes full
576-7 authority for the authorization and issuance of bonds under this
576-8 chapter, and no other act or law with regard to the authorization
576-9 or issuance of obligations or the deposit of the proceeds of
576-10 obligations or in any way impeding or restricting the carrying out
576-11 of the acts authorized by this chapter shall be construed as
576-12 applying to any proceedings taken or acts done pursuant to this
576-13 chapter.
576-14 Sec. 271.037. CONTRACT WITH BEXAR COUNTY. Recognizing the
576-15 fact that the authority has previously entered into a contract with
576-16 the Commissioners Court of Bexar County for the purpose of
576-17 financing the construction of certain flood control and soil
576-18 conservation works of improvement in Bexar County, the authority is
576-19 prohibited from spending any income or revenue derived from the
576-20 contract and from all amendments to or reformations of the contract
576-21 for any purpose other than those specifically provided for in this
576-22 chapter; provided, however, that a reasonable amount of the income
576-23 or revenue may be allocated by the board for the payment of the
576-24 authority's overhead, operational costs, and the fees of the
576-25 directors who reside in Bexar County.
576-26 Sec. 271.038. POLLUTION CONTROL DISTRICT. (a) The
577-1 authority may establish one or more pollution control districts for
577-2 the purpose of accomplishing any of the powers, purposes, rights,
577-3 privileges, or authority vested in the authority regarding waste
577-4 treatment. Pollution control districts may be established by the
577-5 procedures provided by this section.
577-6 (b) The board may adopt a resolution calling for the
577-7 creation of a pollution control district, defining the boundaries
577-8 of the district, and:
577-9 (1) estimating the principal amount of and stating the
577-10 purpose of bonds proposed to be issued by the authority on behalf
577-11 of the proposed pollution control district, declaring that taxes
577-12 for the payment of the proposed bonded indebtedness shall be levied
577-13 exclusively on the taxable property within the proposed pollution
577-14 control district, and setting a time and place for a public hearing
577-15 on the matters set out in the resolution; or
577-16 (2) declaring that taxes for the maintenance of the
577-17 authority and its improvements shall be levied on the taxable
577-18 property within the proposed pollution control district and setting
577-19 a time and place for a public hearing on the matters set out in the
577-20 resolution.
577-21 (c) The resolutions authorized by Subsection (b) may be
577-22 adopted simultaneously, and simultaneous hearings on proposed bond
577-23 and maintenance taxes may be held.
577-24 (d) The public hearing may be conducted by a quorum of the
577-25 board, by one or more directors, or by one or more employees
577-26 designated by the board. If someone other than a quorum of the
578-1 board conducts the hearing, the person or persons shall have power
578-2 to accept evidence and make recommendations on which the board may
578-3 act. The board may alter, modify, or change any provision of the
578-4 resolution calling for the creation of the proposed pollution
578-5 control district subsequent to the public hearing; provided,
578-6 however, that the boundaries of the pollution control district may
578-7 not be enlarged or expanded without compliance with the notice
578-8 requirements of Subsection (e).
578-9 (e) Notice of the public hearing shall be published in a
578-10 newspaper of general circulation within the proposed pollution
578-11 control district once not less than 15 or more than 30 days before
578-12 the public hearing. To the extent not inconsistent with the
578-13 provisions of this section, notice of the public hearing must
578-14 comply with Chapter 551, Government Code.
578-15 (f) All public hearings on the creation of a pollution
578-16 control district shall be held within the boundaries of the
578-17 proposed pollution control district. The public hearings may be
578-18 held concurrently or in connection with any other public hearing,
578-19 meeting, or proceeding conducted by the board.
578-20 (g) Any interested person, including persons residing or
578-21 owning property within the authority, may appear at the public
578-22 hearing and present evidence relevant to the matter set forth in
578-23 the resolution calling for the creation of the proposed pollution
578-24 control district. All persons residing within or owning property
578-25 within the proposed pollution control district shall have the right
578-26 to appear at the public hearing and present evidence with regard to
579-1 whether they will receive benefits from the proposed improvements
579-2 or taxation. Failure to appear at the public hearing shall
579-3 constitute a waiver of all objections the absent party might have
579-4 had to all matters set forth in the resolution calling for the
579-5 creation of the proposed pollution control district.
579-6 (h) The board shall review the findings and recommendations
579-7 resulting from the public hearing and may adopt a resolution
579-8 creating the pollution control district, stating the purposes for
579-9 which the pollution control district has been created, designating
579-10 the boundaries of the pollution control district, declaring that
579-11 the indebtedness to be incurred or the cost of services to be
579-12 rendered by the authority for the benefit of the pollution control
579-13 district shall be payable from taxes levied on property within the
579-14 pollution control district, finding that the property within the
579-15 pollution control district will benefit from the indebtedness
579-16 proposed to be incurred or the services proposed to be rendered by
579-17 the authority on its behalf, and calling for an election within the
579-18 pollution control district to authorize the indebtedness or
579-19 maintenance tax. The resolution shall further state the date of
579-20 the election, the proposition or propositions to be voted on, the
579-21 location of the polling places, and the names of the officers of
579-22 the election. The election may be held in conjunction with a
579-23 general election or a special election other than a primary
579-24 election. The provisions of the Election Code shall govern the
579-25 election unless contrary to any provision of this chapter.
579-26 (i) The resolution of the board creating a pollution control
580-1 district shall be final and conclusive and shall not be subject to
580-2 review by any court except on the basis of whether the resolution
580-3 is supported by substantial evidence. The resolution shall be
580-4 filed in the deed records of the county or counties in which the
580-5 territory within the pollution control district is situated.
580-6 Unless an action or a proceeding in which the validity of the
580-7 board's resolution creating a pollution control district or of the
580-8 proceedings relative to the resolution is contested, questioned, or
580-9 denied is commenced within 30 days from the effective date of the
580-10 resolution, the resolution and all proceedings relative to the
580-11 resolution, including the creation of the pollution control
580-12 district, shall be valid and in every respect legal and
580-13 incontestable.
580-14 (j) The boundaries of a pollution control district may
580-15 include any territory within the authority, whether or not the
580-16 territory contains noncontiguous parcels of land and whether or not
580-17 the territory is located within the boundaries of any incorporated
580-18 city, town, village, or any other governmental entity or political
580-19 subdivision of the state. If any portion of the territory of a
580-20 proposed pollution control district is located within the
580-21 boundaries or within the exclusive extraterritorial jurisdiction of
580-22 an incorporated city, town, or village, the board may not create
580-23 the pollution control district unless it has obtained the consent
580-24 of that city, town, or village. The consent may contain such
580-25 conditions as may be mutually agreed by the authority and the city,
580-26 town, or village and shall be evidenced by a duly enacted ordinance
581-1 of the governing body of the city, town, or village.
581-2 (k) Proceedings for the annexation of territory to an
581-3 existing pollution control district may be initiated by a
581-4 resolution of the board or by a petition signed by the owners of 50
581-5 percent or more of the value of the land subject to the proceedings
581-6 or by a petition signed by a majority of the residents of the
581-7 territory to be annexed. The petition must, insofar as is
581-8 practicable, set forth substantially those matters that would be
581-9 set forth in a resolution calling for the creation of a pollution
581-10 control district and must request a public hearing by the board on
581-11 the matters set out in the petition. The public hearing shall be
581-12 held in substantial compliance with the provisions set forth in
581-13 this section for a public hearing on creation of a pollution
581-14 control district. If the board determines that the annexation
581-15 should be accomplished, the board may adopt a resolution calling
581-16 separate elections on the matter of annexation to be held within
581-17 the existing pollution control district and within the territory to
581-18 be annexed. The annexation shall not become final unless approved
581-19 by a majority of the qualified voters within the existing pollution
581-20 control district and unless a majority of the qualified voters
581-21 within the boundaries of the territory to be annexed approve the
581-22 annexation and elect to allow the territory that is to be annexed
581-23 to be taxed for maintenance purposes or to allow the territory that
581-24 is to be annexed to assume its pro rata share of indebtedness
581-25 previously authorized or of taxes necessary to support the voted
581-26 but unissued tax bonds or tax revenue bonds of the authority that
582-1 are to be issued on behalf of the existing pollution control
582-2 district and authorize the board to levy a tax on the property in
582-3 the territory that is to be annexed for payment for the unissued
582-4 bonds, when issued. The elections shall conform to the Election
582-5 Code to the extent that the code is not inconsistent with the
582-6 provisions of this chapter. The board's resolution canvassing the
582-7 returns of the elections shall redefine the boundaries of the
582-8 pollution control district and shall be recorded in the deed
582-9 records of the county within which the annexed territory lies.
582-10 (l) Proceedings for the addition of territory to an existing
582-11 pollution control district on which less than three qualified
582-12 voters reside may be initiated by a petition signed by the owner or
582-13 owners of the territory to be annexed seeking that the territory
582-14 described in the petition be added to the pollution control
582-15 district. The petition must, to the extent applicable, set forth
582-16 substantially those matters that would be set forth in a resolution
582-17 calling for the creation of a pollution control district and must
582-18 request a public hearing by the board on the matters set out in the
582-19 petition. The public hearing must be held in substantial
582-20 compliance with the provisions of this section relating to public
582-21 hearings on the creation of a pollution control district. If the
582-22 board determines that the addition should be accomplished, it may
582-23 adopt a resolution adding such territory. If taxes or bonds have
582-24 been authorized within the pollution control district prior to the
582-25 addition of the territory, the resolution adding the territory must
582-26 be temporary and the addition shall not become final unless
583-1 approved by a majority of the qualified voters within the pollution
583-2 control district as it exists after the addition. The election
583-3 must be held, as soon as practicable after the addition, on the
583-4 proposition of approving the addition, ratifying the unissued tax
583-5 bonds or tax revenue bonds of the authority that are to be issued
583-6 on behalf of the pollution control district, and authorizing the
583-7 board to levy a tax on the property within the pollution control
583-8 district as enlarged for payment of the unissued bonds when issued
583-9 or for the maintenance of the authority. The election must conform
583-10 to the Election Code to the extent that the code is not
583-11 inconsistent with the provisions of this chapter. The board's
583-12 resolution canvassing the returns of the election or adding the
583-13 territory shall redefine the boundaries of the pollution control
583-14 district and shall be recorded in the deed records of the county
583-15 within which the added territory lies.
583-16 (m) If the qualified voters in an election called pursuant
583-17 to this section authorize the authority to incur indebtedness for
583-18 the benefit of a pollution control district, the board may issue
583-19 bonds as provided in this chapter; provided, however, that taxes
583-20 levied for the purpose of making payments of the interest on or
583-21 principal of the bonds shall be levied only on taxable property
583-22 within the pollution control district.
583-23 (n) Notwithstanding any provision of this chapter to the
583-24 contrary, if the qualified voters in an election called pursuant to
583-25 this section authorize the authority to levy and collect ad valorem
583-26 taxes for the maintenance of the authority and its improvements,
584-1 the board may levy, assess, and collect a maintenance tax;
584-2 provided, however, that the maintenance tax may be levied only on
584-3 taxable property within the pollution control district.
584-4 (o) The board may incur such indebtedness as may be
584-5 necessary to provide all improvements, and the maintenance of the
584-6 improvements, requisite to the achievement of the purposes for
584-7 which any pollution control district is organized. The authority
584-8 may levy and collect such taxes as may be necessary for the payment
584-9 of the interest on the indebtedness and the creation of a sinking
584-10 fund for the payment of the indebtedness, and such taxes shall be a
584-11 lien on the property assessed for the payment of the indebtedness.
584-12 Sec. 271.039. LIBERAL CONSTRUCTION; CONFLICTS. This chapter
584-13 and all its terms and provisions shall be liberally construed to
584-14 effectuate the purposes set forth in this chapter; provided,
584-15 however, that:
584-16 (1) if any authority or power granted by this chapter
584-17 conflicts with any authority or power previously vested in the
584-18 Guadalupe-Blanco River Authority as created by Chapter 410, Acts of
584-19 the 44th Legislature, 1st Called Session, 1935, the power and
584-20 authority granted by the Act creating the Guadalupe-Blanco River
584-21 Authority shall supersede and control over any power or authority
584-22 granted by this chapter unless the Guadalupe-Blanco River Authority
584-23 consents to the exercise of such power or authority by the San
584-24 Antonio River Authority;
584-25 (2) no provision of this chapter shall have the effect
584-26 of divesting any person, firm, or corporation of any riparian
585-1 rights previously vested, or any vested rights derived under
585-2 existing permits for the appropriation and use of public waters
585-3 previously issued by the commission, or any vested rights derived
585-4 under any certified filings previously filed with the commission;
585-5 and
585-6 (3) nothing in this chapter shall impair or supersede
585-7 the authority and supervision granted to the commission under other
585-8 statutory provisions of the state or under the rules formulated by
585-9 the commission in accordance with law, any provision of this
585-10 chapter to the contrary notwithstanding.
585-11 Sec. 271.040. DOMICILE. The general office and place of
585-12 domicile of the authority shall be in the city of San Antonio,
585-13 Bexar County.
585-14 Sec. 271.041. CONSTITUTIONAL CONFORMITY. Nothing in this
585-15 chapter shall be construed to violate any provision of the federal
585-16 or state constitution, and all acts done under this chapter shall
585-17 be done in such a manner as will conform to those constitutions,
585-18 whether expressly provided in this chapter or not. If the board
585-19 determines that any procedure under this chapter violates the
585-20 federal or state constitution, the board may by ordinance provide a
585-21 procedure conformable with those constitutions.
585-22 Sec. 271.042. SEVERABILITY. The provisions of this chapter
585-23 are severable. If any section, subsection, provision, or part of
585-24 this chapter should be held to be invalid, it shall not affect the
585-25 validity of the remaining portions of this chapter.
586-1 CHAPTER 272. SAN JACINTO RIVER AUTHORITY
586-2 Sec. 272.001. CREATION. (a) A conservation and reclamation
586-3 district to be known as the "San Jacinto River Authority" is
586-4 created. The authority is a governmental agency and a body politic
586-5 and corporate.
586-6 (b) The authority is created under and is essential to
586-7 accomplish the purposes of Section 59, Article XVI, Texas
586-8 Constitution.
586-9 (c) The authority may exercise the powers granted by Section
586-10 59, Article XVI, Texas Constitution, to districts created to
586-11 conserve, control, and utilize to beneficial service the storm
586-12 waters and floodwaters of rivers and streams of the state, as well
586-13 as such powers as may be contemplated and implied by the purposes
586-14 of that provision of the constitution and as may be conferred by
586-15 general law and by the provisions of this chapter.
586-16 (d) The authority may formulate plans considered essential
586-17 to the operation of the authority and for its administration in the
586-18 control, storing, preservation, and distribution to all useful
586-19 purposes of the storm waters and floodwaters of the San Jacinto
586-20 River and its tributaries.
586-21 (e) The authority may exercise such authority and power of
586-22 control and regulation over the storm waters and floodwaters of the
586-23 San Jacinto River and its tributaries as may be exercised by the
586-24 state, subject to the provisions of the constitution and the acts
586-25 of the legislature.
586-26 Sec. 272.002. DEFINITIONS. In this chapter:
587-1 (1) "Authority" means the San Jacinto River Authority.
587-2 (2) "Board" means the board of directors of the
587-3 authority.
587-4 (3) "Director" means a member of the board.
587-5 Sec. 272.003. TERRITORY. (a) The authority comprises all
587-6 the territory within the watershed of the San Jacinto River and its
587-7 tributaries except the portion of the watershed that is within the
587-8 boundaries of Harris County, which is expressly excluded from the
587-9 boundaries of the authority.
587-10 (b) The written description of the boundaries shall be
587-11 certified by the commissioner of the General Land Office, approved
587-12 by the commission or its predecessor agency, and recorded in the
587-13 minutes of the authority.
587-14 (c) The board shall cause a copy of the certified boundaries
587-15 to be filed and recorded in the office of the county clerk of each
587-16 county lying in whole or in part within the boundaries of the
587-17 authority. The board shall also file a copy of the certified
587-18 boundaries, together with a map showing the boundaries, with the
587-19 tax assessor and collector of each of the counties that lie in
587-20 whole or in part within the authority.
587-21 Sec. 272.004. EFFECT OF CHANGE OF NAME OF AUTHORITY.
587-22 (a) All laws applicable to the San Jacinto River Conservation and
587-23 Reclamation District and all contracts and bonds or other
587-24 debentures effected under that name are applicable to the San
587-25 Jacinto River Authority.
587-26 (b) Wherever the name San Jacinto River Conservation and
588-1 Reclamation District or any reference to that district appears in
588-2 any law or in any court decision, the name and reference shall mean
588-3 and apply to the San Jacinto River Authority.
588-4 (c) All grants and donations of state ad valorem taxes made
588-5 by the state to the San Jacinto River Conservation and Reclamation
588-6 District and all appropriations and benefits under those grants and
588-7 donations are available to and apply to the San Jacinto River
588-8 Authority.
588-9 (d) The change in name of the authority in no way affects
588-10 the organization, authority, functions, or powers previously
588-11 conferred by law and as expressly authorized in the provisions of
588-12 Section 59, Article XVI, Texas Constitution.
588-13 Sec. 272.005. SPECIFIC POWERS. The authority, in addition
588-14 to possessing all powers expressly or impliedly granted by other
588-15 sections of this chapter, by complying where applicable with the
588-16 provisions of this code may:
588-17 (1) store, control, and conserve the storm waters and
588-18 floodwaters of the watershed of the San Jacinto River and its
588-19 tributaries and prevent the escape of any such waters through every
588-20 practical means in order to prevent the devastation of lands from
588-21 recurrent overflows and to protect life and property;
588-22 (2) provide through every practical means for the
588-23 control, utilization, and coordination of regulation of the waters
588-24 of the San Jacinto River and its tributaries;
588-25 (3) appropriate the waters of the San Jacinto River
588-26 and its tributaries, construct dams and other facilities for the
589-1 impoundment, conservation, diversion, and utilization of such
589-2 waters, and devote waters to municipal, domestic, agricultural,
589-3 commercial, industrial, mining, and other beneficial uses, within
589-4 and outside the watershed of the river;
589-5 (4) provide waters for the irrigation of lands where
589-6 irrigation is required for agricultural purposes or may be
589-7 considered helpful to more profitable agricultural production;
589-8 (5) provide water for domestic, municipal, commercial,
589-9 industrial, and mining purposes within and outside the watershed of
589-10 the river, including water supplies for cities, towns, and
589-11 industries, and in connection with those purposes may construct or
589-12 otherwise acquire water transportation, treatment, and distribution
589-13 facilities and supplemental sources of supply;
589-14 (6) encourage and develop drainage systems and
589-15 provisions for the drainage of lands in the valleys of the San
589-16 Jacinto River and its tributaries needing drainage for profitable
589-17 agricultural production and the drainage of other lands in the
589-18 watershed area of the authority requiring drainage for the most
589-19 advantageous use;
589-20 (7) encourage through practical and legal means the
589-21 conservation of soils against destructive erosion and prevent the
589-22 increased flood danger caused by soil erosion;
589-23 (8) forest and reforest and aid in the foresting and
589-24 reforesting of the watershed area of the San Jacinto River and its
589-25 tributaries and may prevent and aid in the prevention of soil
589-26 erosion and floods in, on, and upon all lands situated within the
590-1 boundaries of the authority;
590-2 (9) control, store, and employ the waters of the San
590-3 Jacinto River and its tributaries in the development and
590-4 distribution of hydroelectric power, where such use may be
590-5 economically coordinated with other and superior uses and
590-6 subordinated to the uses declared by law to be superior;
590-7 (10) encourage, aid, and protect navigation and harbor
590-8 improvements;
590-9 (11) acquire land adjacent to or in the vicinity of
590-10 any waters impounded by the authority or adjacent to or in the
590-11 vicinity of the San Jacinto River or any of its tributaries for
590-12 park and recreation purposes and acquire or construct park and
590-13 recreation facilities on such land; provided, however, that except
590-14 as may otherwise be provided by general law, the acquisition or
590-15 construction of any recreation and park facilities by the authority
590-16 shall be subject to the approval of the Parks and Wildlife
590-17 Commission and to such conditions as the Parks and Wildlife
590-18 Commission may prescribe;
590-19 (12) acquire or construct facilities for the
590-20 gathering, transporting, treating, and disposing of sewage and
590-21 industrial waste and effluent;
590-22 (13) control, store, and employ the waters of the San
590-23 Jacinto River and its tributaries for every purpose for which such
590-24 waters, when controlled and conserved, may be utilized in the
590-25 performance of a useful service as contemplated and authorized by
590-26 the provisions of the Texas Constitution and the public policy it
591-1 declares;
591-2 (14) construct and otherwise acquire and repair,
591-3 improve, extend, operate, and maintain all works, plants, and other
591-4 facilities necessary or useful in the furtherance of any power
591-5 granted by law to the authority, including water storage
591-6 reservoirs, dams, canals, waterways, and water transportation
591-7 facilities of all kinds, water treatment facilities, hydroelectric
591-8 facilities, municipal water supply facilities, facilities for the
591-9 treatment of sewage and industrial waste and effluent, parks and
591-10 recreation facilities, and all other necessary and useful
591-11 structures, facilities, and equipment;
591-12 (15) enter into necessary and proper contracts with
591-13 other state or federal agencies, districts, bodies politic and
591-14 corporate, and others and may make and enter into cooperative and
591-15 coordinative contracts with such agencies, districts, bodies
591-16 politic and corporate, and others necessary or useful in the
591-17 furtherance of any power granted by law to the authority, including
591-18 the power to pledge the authority's funds and its other assets or
591-19 any part of such funds or assets;
591-20 (16) acquire any properties necessary for any of the
591-21 authority's corporate purposes by purchase, by condemnation as
591-22 provided by this chapter, or by gift and may acquire property by
591-23 lease or other contract, on such terms as may be agreed by the
591-24 board;
591-25 (17) operate the water and sewage properties and
591-26 facilities of other public bodies or political subdivisions on such
592-1 terms as the authority may agree in connection with the supplying
592-2 by the authority of any water or sewage or waste disposal or other
592-3 services to public bodies;
592-4 (18) enter into such contracts, on such terms, and for
592-5 such periods as the board approves, with municipalities or other
592-6 corporate bodies or persons, public or private, for the purpose of
592-7 establishing and collecting, and by resolution or order to
592-8 otherwise establish and collect, rates and other charges for the
592-9 sale or use of water, water transmission, treatment or connection
592-10 facilities, sewage or industrial or other waste disposal services
592-11 and facilities of all types, park or recreation facilities, power,
592-12 electric energy, and any other services sold, furnished, or
592-13 supplied by the authority, which rates and charges shall be
592-14 sufficient to produce revenue adequate to:
592-15 (A) pay expenses necessary to operate and
592-16 maintain the properties and facilities of the authority;
592-17 (B) pay the interest on or the principal of any
592-18 bonds or other obligations issued by the authority when and as the
592-19 interest or principal becomes due and payable and to fulfill any
592-20 reserve or other fund obligations of the authority in connection
592-21 with such bonds; and
592-22 (C) pay such other expenses the board determines
592-23 necessary and proper for any purpose in the corporate operations
592-24 and functions of the authority; and
592-25 (19) authorize by contract any other districts,
592-26 agencies, bodies politic and corporate, and individuals to
593-1 participate in the joint construction, operation, and maintenance
593-2 of water storage reservoirs, dams, canals, waterways, and water
593-3 lines and all other structures, facilities, and equipment in
593-4 connection with such reservoirs, dams, canals, waterways, and water
593-5 lines or in connection with sewage or waste facilities of all types
593-6 and all necessary facilities for the manufacture, sale, and
593-7 transportation of hydroelectric power, and by such contracts allow
593-8 such other agencies, districts, bodies politic and corporate, and
593-9 others to receive such portion of the revenues derived from the
593-10 sale of water and hydroelectric power or from furnishing sewage and
593-11 waste facilities and services as the board determines just,
593-12 equitable, and proper.
593-13 Sec. 272.006. LIMITATION OF AUTHORITY; COMMISSION
593-14 SUPERVISION. (a) The powers and duties granted to the authority
593-15 by this chapter are subject to all legislative declarations of
593-16 public policy in the maximum utilization of the storm waters,
593-17 floodwaters, and unappropriated flow waters of the state for the
593-18 purpose for which the authority is created, as expressed and
593-19 indicated in this chapter and subject to the continuing rights of
593-20 supervision by the state, which shall be exercised through the
593-21 commission.
593-22 (b) The commission is charged with the authority and duty to
593-23 approve, or to refuse to approve, the adequacy of any plan or plans
593-24 devised in the exercise of any power granted under this chapter
593-25 that contemplate improvements or facilities, the plans pertaining
593-26 to which are required to be supervised or approved by the
594-1 commission under the provisions of general law.
594-2 (c) If the plans described by Subsection (b) contemplate the
594-3 installation, construction, or other acquisition of parks and
594-4 recreation facilities or of facilities for the gathering,
594-5 transporting, or disposal of sewage or industrial wastes and
594-6 effluent, the commission shall not approve the plans unless it
594-7 finds that the Parks and Wildlife Commission has issued such
594-8 approvals or permits relating to the matters as may be required by
594-9 this chapter or general law.
594-10 Sec. 272.007. BOARD OF DIRECTORS. (a) The management and
594-11 control of the affairs of the authority are vested in, and the
594-12 powers, rights, privileges, and functions of the authority are
594-13 exercised by, a board of directors. The board consists of six
594-14 directors, all of whom must be freehold property taxpayers and
594-15 legal voters of the state.
594-16 (b) Directors are appointed by the Texas Water Development
594-17 Board and serve for staggered terms of six years, holding office
594-18 after their appointment and qualification until their successors
594-19 are appointed and have qualified. If a vacancy occurs on the
594-20 board, the vacancy is filled by the Texas Water Development Board
594-21 for the unexpired term. The provisions of Section 49.103 regarding
594-22 the election and terms of directors do not apply to directors of
594-23 the authority.
594-24 (c) Within 30 days after appointment, a director shall
594-25 qualify by taking the official oath required of county
594-26 commissioners and shall execute bond in the sum of $5,000 payable
595-1 to the authority. The sufficiency of the bond shall be determined
595-2 by the Texas Water Development Board. The bonds shall be recorded
595-3 in the official bond records of the county in which the authority
595-4 maintains its office and shall be deposited with the depository
595-5 selected and approved for the deposit of the funds of the
595-6 authority.
595-7 (d) The board shall elect from among its members a
595-8 president, vice president, secretary, and treasurer. The president
595-9 presides at all meetings of the board and is the chief executive
595-10 officer of the authority. The vice president acts as president in
595-11 case of the absence or disability of the president. The secretary
595-12 shall keep a record of all proceedings and all orders of the board.
595-13 The treasurer shall receive and receipt for all funds received by
595-14 the authority and shall keep books and records of all funds
595-15 received and expended. In case of the absence or inability of the
595-16 secretary to act, a secretary pro tempore shall be selected by the
595-17 board.
595-18 (e) Four members, including the presiding officer,
595-19 constitute a quorum to transact business.
595-20 Sec. 272.008. OFFICE; MEETINGS; ACCOUNTS. (a) The domicile
595-21 of the authority is Montgomery County, where the authority shall
595-22 maintain its principal office.
595-23 (b) The board may set the time, place, and number of
595-24 meetings of the board by proper resolutions, regulations, and
595-25 bylaws passed by the board.
595-26 (c) The board shall keep complete and accurate accounts
596-1 conforming to approved methods of bookkeeping. The accounts and
596-2 all contracts, documents, and records of the authority shall be
596-3 kept at the principal office and shall be open to public inspection
596-4 at all reasonable times.
596-5 Sec. 272.009. GENERAL POWERS. (a) The board has all
596-6 powers, both express and implied, to do and perform any and all
596-7 acts for and on behalf of the authority that are authorized by the
596-8 constitution and laws of the United States and the state for the
596-9 purpose of achieving the plans and purposes intended in the
596-10 creation of the authority and in the exercise of all powers granted
596-11 to the authority by this chapter. The board has full and complete
596-12 authority to do anything necessary or convenient to the exercise of
596-13 the powers, privileges, and functions conferred on the authority
596-14 and the board by this chapter or any other law.
596-15 Sec. 272.010. SURVEYS AND ENGINEERING INVESTIGATIONS.
596-16 (a) The board shall make or cause to be made surveys and
596-17 engineering investigations for the information of the authority and
596-18 shall determine the plans necessary to accomplish the purposes for
596-19 which the authority is created. The board may employ engineers,
596-20 attorneys, and all other technical and nontechnical assistants or
596-21 employees and set and provide the amount and manner of their
596-22 compensation for the making of surveys, the preparation of plans,
596-23 and the collection of data essential to the determination of the
596-24 character, extent, and cost of all improvements essential in the
596-25 exercise of any power granted by this chapter or by any other law
596-26 applicable to the authority, and for expenditures found essential
597-1 in the maintenance and administration of the authority.
597-2 Sec. 272.011. DIRECTOR FEES. Directors are entitled to
597-3 receive a per diem of not more than an amount determined by the
597-4 board and permitted by Chapter 49 per day for the period served,
597-5 together with traveling and other necessary expenses. A director
597-6 may perform any service required by the board but may not receive
597-7 the per diem and other compensation at the same time.
597-8 Sec. 272.012. BONDS AS AUTHORIZED INVESTMENT; INVESTMENT OF
597-9 FUNDS. (a) All bonds issued by the authority are legal and
597-10 authorized investments for banks, savings banks, trust companies,
597-11 building and loan associations, insurance companies, fiduciaries,
597-12 and trustees and for the sinking funds of cities, towns, villages,
597-13 counties, school districts, and other political corporations and
597-14 subdivisions of the state. Bonds issued by the authority are
597-15 eligible to secure the deposit of all public funds of the state and
597-16 all public funds of cities, towns, villages, counties, school
597-17 districts, and other political corporations or subdivisions of the
597-18 state and shall be lawful and sufficient security for such deposits
597-19 at their market value when accompanied by all unmatured coupons.
597-20 (b) Money in any fund of the authority or any fund
597-21 established by the board in connection with the authorization of
597-22 bonds, including proceeds from the sale of bonds, and which funds
597-23 are not needed to satisfy their particular purpose for any period,
597-24 may be invested or reinvested in direct obligations of or
597-25 obligations whose principal and interest are guaranteed by the
597-26 United States or invested in direct obligations of or participation
598-1 certificates guaranteed by the Federal Intermediate Credit Banks,
598-2 Federal Land Banks, the Federal National Mortgage Association,
598-3 Federal Home Loan Banks, and Banks for Cooperatives and in
598-4 certificates of deposit of any bank or trust company whose deposits
598-5 are fully secured by a pledge of securities of any of the kind
598-6 specified in this section.
598-7 (c) The type and maturity of investments made under this
598-8 section shall be determined by the board, which, in the case of
598-9 funds established in connection with the authorization of bonds,
598-10 shall provide appropriate recitals with regard to such investments
598-11 in the resolutions relating to the issuance of the bonds. Income
598-12 and profits on such investments shall be applied as provided in the
598-13 resolution and, absent such provision, shall be applied to the uses
598-14 specified by this section for bond proceeds.
598-15 Sec. 272.013. FUNDS FOR SURVEYS AND DATA COLLECTION. For
598-16 the purpose of providing funds requisite to procure necessary
598-17 engineering surveys and the collection and compilation of data
598-18 respecting regional and general conditions entering into and
598-19 influencing the character and extent of the improvements necessary
598-20 to the storage, control, conservation, and equitable distribution
598-21 of floodwaters, when stored and controlled, to the greatest public
598-22 advantage, the counties lying in whole or in part within the area
598-23 of the authority may from year to year contribute to the funds for
598-24 such engineering surveys and the compilation of data essential to
598-25 the progress of flood control improvement in such amount as may be
598-26 deemed an equitable part of the cost of such surveys and the
599-1 compilation of necessary information, in the estimated relation of
599-2 such expenditures to the contemplated and probable benefit to the
599-3 respective counties from the accomplishment of the plans and
599-4 purposes of the creation of the authority. For the provision of
599-5 such funds, the counties may make the necessary collections through
599-6 their respective general funds or may appropriate the amounts of
599-7 the estimated equitable contribution of such costs of developing
599-8 essential engineering data from their general fund.
599-9 Sec. 272.014. ADOPTION OF RULES; PENALTY; ENFORCEMENT.
599-10 (a) The board may adopt and enforce rules to:
599-11 (1) preserve and protect the sanitary condition and
599-12 prevent waste or unauthorized use of water owned or controlled by
599-13 the authority;
599-14 (2) preserve, protect, secure, and regulate privileges
599-15 on any authority property; and
599-16 (3) ensure the public safety on, in, under, across, or
599-17 within any authority property.
599-18 (b) A rule adopted under this section must clearly define
599-19 any conduct that constitutes an offense and plainly state the
599-20 punishment for the offense. In adopting a rule under this section,
599-21 the board must prescribe a punishment that is proportionate to the
599-22 seriousness of the offense. The board may designate an offense
599-23 only as a Class C misdemeanor.
599-24 (c) A rule adopted under this section does not take effect
599-25 until the authority has published once a week for two consecutive
599-26 weeks a substantive statement of the rule and the penalty for
600-1 violation of the rule in a newspaper with general circulation in
600-2 each county in which the rule is to be effective. The statement
600-3 must intelligently explain the purpose to be accomplished by or the
600-4 acts prohibited by the rule. The statement must advise the public
600-5 that violation of the rule will subject the violator to a penalty.
600-6 The statement must advise the public that the full text of the rule
600-7 is on file in the principal office of the authority and that any
600-8 interested person is entitled to read the full text. The board may
600-9 use one statement to satisfy the notice requirements of this
600-10 section for any number of rules the board adopts. The board may
600-11 amend a rule after the rule is adopted, but must meet the notice
600-12 requirements under this subsection.
600-13 (d) The violation of a rule is not punishable as an offense
600-14 unless the violation occurs after the 30th day after the date on
600-15 which the notice requirements under this section are met. A rule
600-16 adopted under this section is effective until repealed, revoked,
600-17 rescinded, or amended by official action of the board.
600-18 (e) A rule adopted under this section shall be recognized by
600-19 the courts of the state and is enforceable by complaint filed in
600-20 the appropriate court by the proper prosecuting authority in a
600-21 jurisdiction in which authority property is located in the same
600-22 manner as a penal statute under state law. A penalty provided by a
600-23 rule adopted under this section is in addition to any other penalty
600-24 provided by law. Rules promulgated under the authority of this
600-25 chapter shall not conflict with any provision of the Parks and
600-26 Wildlife Code or a rule adopted under the authority of the Parks
601-1 and Wildlife Code.
601-2 (f) The board, the commissioners court, and the law
601-3 enforcement officials in a county in which authority property is
601-4 located may enter into a contract to provide for the employment,
601-5 assignment, duties, equipping, or compensation of local law
601-6 enforcement personnel to enforce the board's rules. A contract
601-7 under this subsection may require the authority to pay to the
601-8 commissioners court a specified portion of the cost of providing
601-9 the law enforcement personnel.
601-10 (g) In this section, "authority property" means any land,
601-11 easement, water, property, equipment, work, or facility owned or
601-12 controlled, in whole or in part, by the authority, including a
601-13 reservoir, impoundment, lake, canal, channel, conduit, pipe,
601-14 siphon, dam, dike, levee, embankment, or berm but excluding Lake
601-15 Houston and the San Jacinto River below Lake Houston, except for
601-16 equipment, works, and facilities owned by the authority at or near
601-17 a dam site.
601-18 Sec. 272.015. ADDITIONAL POWERS AND DUTIES. (a) The
601-19 provisions of Title 4 apply to the authority, to the extent such
601-20 provisions are applicable and practicable, except that such
601-21 provisions do not apply to any matter specifically provided for in,
601-22 or expressly or impliedly excluded from, this chapter relating to
601-23 the creation of a district and to the issuance of preliminary bonds
601-24 to finance investigations on which to base a plan for improvements
601-25 and to the levy of a tax to retire the bonds. The authority may on
601-26 a vote of the qualified electors issue preliminary bonds for such
602-1 investigations and levy a tax to retire the bonds, which tax may be
602-2 in addition to all other taxes authorized by this chapter.
602-3 (b) After the completion and approval of a plan for the
602-4 coordination of improvements considered adequate to serve the
602-5 watershed of the San Jacinto River and its tributaries as a whole,
602-6 as provided for by this chapter, the commission and the reclamation
602-7 department of the General Land Office, in authorizing improvements
602-8 to control the waters of or in allocating the right to use waters
602-9 from the San Jacinto River and its tributaries, shall substantially
602-10 conform to, and shall effectually preserve the benefits of, the
602-11 plan formulated by the authority, and the authority shall have the
602-12 right to enforce the observance of the plan by judicial decree.
602-13 (c) The authority may provide and maintain improvements for
602-14 the common benefit of the authority as a whole, subject only to
602-15 constitutional and statutory provisions concerning a vote by the
602-16 qualified electors of the authority.
602-17 (d) The authority may exercise the powers contained in
602-18 Sections 51.510-51.530 relating to improvements peculiar to defined
602-19 areas within a district.
602-20 (e) Conflicting provisions of Sections 51.510-51.530 shall
602-21 not control the authority.
602-22 (f) If the electors of a defined area within the authority
602-23 desire, the electors may create a water control and improvement
602-24 district for the purpose of independently providing, operating, and
602-25 maintaining improvements designed peculiarly to serve that defined
602-26 area. The contained defined area may be created under the
603-1 applicable provisions of Title 4. In like manner, any other
603-2 political subdivision of the state located in whole or in part in
603-3 the authority may independently provide, maintain, and operate
603-4 works peculiarly designed to benefit that political subdivision.
603-5 The improvements or works of the defined area or political
603-6 subdivision shall be constructed and operated in a manner that
603-7 conforms to the authority's plan described under Subsection (a) to
603-8 the greatest practicable degree.
603-9 (g) To the extent necessary to enable the authority to
603-10 construct, maintain, and operate works beneficial to the authority
603-11 as a whole, to supervise, to perform any service inuring to the
603-12 benefit of the authority as a whole, and to provide funds adequate
603-13 to defray the cost of the administration to the authority, the
603-14 authority may levy and collect taxes, equitably distributed. The
603-15 taxes shall be in addition to other taxes that may lawfully be
603-16 levied by the state and other political subdivisions of the state.
603-17 (h) The authority may do all things necessary or suitable
603-18 for the prevention of recurrent, devastating floods in the valley
603-19 of the San Jacinto River.
603-20 Sec. 272.016. CONTRACTS, GRANTS, AND LOANS. The board is a
603-21 state agency and has full authority to negotiate and contract with
603-22 the United States, or any of its agencies, and others for grants,
603-23 loans, or allotments. The authority may receive and accept grants,
603-24 loans, or allotments from the United States or others for the
603-25 purpose of making investigations and assembling data or for any
603-26 purpose set forth in this chapter and may receive and use the
604-1 grants, loans, or allotments for the purposes provided in this
604-2 chapter.
604-3 Sec. 272.017. BOND ELECTION REQUIRED. The authority may not
604-4 issue bonds, incur any form of continuing obligations for purposes
604-5 of effecting improvements comprehended in the plan of organization
604-6 and administration of the authority or incur any indebtedness which
604-7 imposes a continuing charge on land or properties within the
604-8 authority unless such proposition has been submitted to the
604-9 qualified voters of the authority, or when appropriate, the voters
604-10 of a defined area or political subdivision within the authority,
604-11 and approved by a majority of those voting on the proposition.
604-12 Sec. 272.018. ISSUANCE OF BONDS. (a) The authority may
604-13 issue negotiable revenue bonds for the purposes of:
604-14 (1) making investigations and assembling data;
604-15 (2) purchasing, acquiring, or condemning lands,
604-16 easements, rights-of-way, and other properties;
604-17 (3) constructing, repairing, improving, and extending
604-18 any structures, dams, reservoirs, transmission facilities, water
604-19 treatment and water supply facilities, and sewage and other waste
604-20 gathering, transmission, treatment, and disposal facilities;
604-21 (4) developing park and recreation facilities; and
604-22 (5) acquiring, constructing, improving, repairing, and
604-23 extending any other properties and facilities considered
604-24 appropriate by the board in the exercise of powers granted the
604-25 authority in Section 272.005 and elsewhere in this chapter.
604-26 (b) Any of the purposes described by this section may be
605-1 combined into a single issue of bonds. The bonds shall be issued
605-2 in accordance with Subsection (d) and (e) and may be secured by and
605-3 payable from the revenues of the authority permitted by Subsection
605-4 (f), including the proceeds of one or more contracts between the
605-5 authority and any persons, firms, corporations, cities, and
605-6 political subdivisions.
605-7 (c) The authority may issue refunding bonds to refund,
605-8 currently or in advance of their call dates, any bonds or refunding
605-9 bonds of the authority issued under this chapter or under general
605-10 law in any manner now or hereafter permitted by general law for
605-11 political subdivisions of the state.
605-12 (d) The bonds or refunding bonds of the authority may be
605-13 issued on terms the board deems necessary or convenient for any
605-14 corporate purpose.
605-15 (e) The bonds or refunding bonds of the authority may be
605-16 authorized by resolution or order concurred in by a majority of the
605-17 directors. The dates, forms, methods of execution, denominations,
605-18 interest rates and methods of accruing or compounding interest,
605-19 times, places and methods of payment, prices, including any
605-20 discount or premium, terms of sale, whether public or private and
605-21 whether for cash or for exchange, security, sources of payment,
605-22 provisions for additional security, provisions as to registration
605-23 and exchange, insurability, collateralization, and all other terms
605-24 and provisions of such bonds or refunding bonds shall be as
605-25 determined by the board and as permitted by either this chapter or
605-26 general law.
606-1 (f) The resolution authorizing the issuance of bonds may
606-2 contain provisions, which shall be part of the contract between the
606-3 board and the initial and successive holders of the bonds:
606-4 (1) reserving the right to redeem the bonds at such
606-5 time or times, in such amounts, and at such prices, not exceeding
606-6 102 percent of the principal amount of the bonds plus accrued
606-7 interest, as may be provided in the resolution;
606-8 (2) providing for the setting aside of sinking funds
606-9 or reserve funds and the regulation and disposition of the funds;
606-10 (3) pledging, to secure the payment of the principal
606-11 of and interest on the bonds and the sinking fund or reserve fund
606-12 payments agreed to be made with respect to the bonds, all or part
606-13 of the funds that may be donated or granted by the state as
606-14 provided by this chapter and all or part of the gross or net
606-15 revenues received by the authority with respect to the property,
606-16 real, personal, or mixed, to be acquired or constructed with the
606-17 bonds or with proceeds of the bonds, or all or part of the gross or
606-18 net revenues received by the authority from any source;
606-19 (4) prescribing the purposes to which the bonds or
606-20 bonds later issued, or the proceeds of the bonds, may be applied;
606-21 (5) agreeing to set and collect rates and charges
606-22 sufficient to produce revenues that, together with the funds that
606-23 may be granted or donated by the state, are adequate to pay the
606-24 items specified by this chapter, and prescribing the use and
606-25 disposition of all revenues;
606-26 (6) prescribing limitations on the issuance of
607-1 additional bonds and on the agreements that may be made with the
607-2 purchaser and successive bondholders;
607-3 (7) relating to the construction, extension,
607-4 improvement, operation, maintenance, depreciation, replacement, and
607-5 betterments of the properties of the authority and to the carrying
607-6 of insurance on all or part of the property covering loss or damage
607-7 or loss of use and occupancy resulting from specified risks;
607-8 (8) fixing the procedure, if any, by which, if the
607-9 authority so desires, the terms of any contract with the holders of
607-10 the bonds may be amended or abrogated, the amount of bonds whose
607-11 holders must consent to the amendment or abrogation, and the manner
607-12 in which such consent shall be evidenced;
607-13 (9) providing for the execution and delivery by the
607-14 authority to a bank or trust company authorized by law to accept
607-15 trusts, or to the United States or any officer or agency of the
607-16 United States, of indentures or agreements authorized by this
607-17 chapter to be made with or for the benefit of the holders of the
607-18 bonds and such other provisions as may be contained in such
607-19 indentures or agreements; and
607-20 (10) making such other provisions, not inconsistent
607-21 with provisions of this chapter, as the board may approve.
607-22 Sec. 272.019. DEFAULT PROCEDURES. (a) A resolution
607-23 authorizing the issuance of bonds and any indenture or agreement
607-24 entered into pursuant to the resolution may include provisions
607-25 regarding a default on the:
607-26 (1) payment of the interest on any bonds as the
608-1 interest becomes due and payable;
608-2 (2) payment of the principal of any bonds as they
608-3 become due and payable, whether at maturity, by call for
608-4 redemption, or otherwise; or
608-5 (3) performance of an agreement made with the
608-6 purchasers or successive holders of any bonds.
608-7 (b) If a default described by Subsection (a) has occurred
608-8 and has continued for the period, if any, prescribed by the
608-9 resolution authorizing the issuance of the bonds, the trustee under
608-10 the indenture or indentures entered into with respect to the bonds
608-11 authorized by the resolution, or, if there is no indenture, a
608-12 trustee appointed in the manner provided in the resolution by the
608-13 holders of 25 percent in aggregate principal amount of the bonds
608-14 authorized by the resolution and then outstanding, may, and on the
608-15 written request of the holders of 25 percent in aggregate principal
608-16 amount of the bonds authorized by the resolution and then
608-17 outstanding shall, in the trustee's own name but for the equal and
608-18 proportionate benefit of the holders of all the bonds and, with or
608-19 without having possession of the bonds, for the holders of all the
608-20 bonds:
608-21 (1) by mandamus or suit, action, or proceeding at law
608-22 or in equity, enforce all rights of the holders of the bonds;
608-23 (2) bring suit on the bonds or the appurtenant
608-24 coupons;
608-25 (3) by action or suit in equity, require the board to
608-26 act as if it were the trustee of an express trust for the holders
609-1 of the bonds;
609-2 (4) by action or suit in equity, enjoin anything that
609-3 may be unlawful or in violation of the rights of the holders of the
609-4 bonds; or
609-5 (5) after such notice to the board as the resolution
609-6 may provide, declare the principal of all of the bonds due and
609-7 payable, and if all defaults have been made good, then with the
609-8 written consent of the holders of 25 percent aggregate principal
609-9 amount of the bonds then outstanding, annul the declaration and its
609-10 consequences; provided, however, that the holders of more than a
609-11 majority in principal amount of the bonds authorized by the
609-12 resolution and then outstanding shall, by written instrument
609-13 delivered to the trustee, have the right to direct and control any
609-14 and all actions taken or to be taken by the trustee under this
609-15 section.
609-16 (c) A resolution, indenture, or agreement relating to bonds
609-17 may provide that in a suit, action, or proceeding under this
609-18 section, the trustee, whether or not all of the bonds have been
609-19 declared due and payable and with or without possession of any of
609-20 the bonds, shall be entitled as of right to the appointment of a
609-21 receiver who may enter and take possession of all or any part of
609-22 the properties of the authority and operate and maintain the
609-23 properties and set, collect, and receive rates and charges that,
609-24 together with the funds that may be granted or donated by the
609-25 state, will be sufficient to provide revenues adequate to pay the
609-26 items set forth in this chapter and the costs and disbursements of
610-1 the suit, action, or proceeding and apply such revenue in
610-2 conformity with the provisions of this chapter and the resolution
610-3 or resolutions authorizing the bonds.
610-4 (d) In any suit, action, or proceeding by a trustee or
610-5 receiver, if any, under this section, counsel fees and expenses of
610-6 the trustee and of the receiver or receivers, if any, shall
610-7 constitute taxable disbursements, and all costs and disbursements
610-8 allowed by the court shall be a first charge on any revenue pledged
610-9 to secure the payment of the bonds.
610-10 (e) In addition to the powers specifically provided by this
610-11 section, the trustee shall have and possess all powers necessary or
610-12 appropriate for the exercise of the powers specifically provided or
610-13 incident to the general representation of the bondholders in
610-14 enforcement of their rights.
610-15 Sec. 272.020. BOND APPROVAL AND REGISTRATION. (a) Before
610-16 any bonds may be sold by the authority, a certified copy of the
610-17 proceedings for the issuance of the bonds, including the form of
610-18 the bonds, together with any other information the attorney general
610-19 may require, shall be submitted to the attorney general, and if the
610-20 attorney general finds that the bonds have been issued in
610-21 accordance with law and approves the bonds, the attorney general
610-22 shall execute a certificate to that effect which shall be filed in
610-23 the office of the comptroller and be recorded in a record kept for
610-24 that purpose. Bonds may not be issued until the bonds have been
610-25 registered by the comptroller, who shall register the bonds if the
610-26 attorney general has filed with the comptroller the certificate
611-1 approving the bonds and the proceedings for the issuance of the
611-2 bonds as provided in this subsection.
611-3 (b) Bonds approved by the attorney general and registered by
611-4 the comptroller as provided by this section and issued in
611-5 accordance with the proceedings so approved are valid and binding
611-6 obligations of the authority and are incontestable for any cause
611-7 after their registration.
611-8 Sec. 272.021. OIL AND GAS LEASES. The authority may enter
611-9 into oil and gas leases with respect to its properties on terms the
611-10 board determines appropriate in the production of revenues to the
611-11 authority.
611-12 Sec. 272.022. DISPOSAL OF AUTHORITY PROPERTY. The authority
611-13 may sell or otherwise dispose of its properties if the board has
611-14 determined that the property or interest to be disposed of is not
611-15 necessary to the business of the authority and has approved the
611-16 terms of the sale.
611-17 Sec. 272.023. EXEMPTION OF AUTHORITY PROPERTY FROM FORCED
611-18 SALE. Property of the authority is exempted from forced sale under
611-19 any judgment, suit, or proceeding of any nature or kind.
611-20 Sec. 272.024. ACQUISITION AND USE OF PROPERTY. The
611-21 authority may acquire by purchase, lease, or gift or in any other
611-22 manner, other than by condemnation, and may maintain, use, and
611-23 operate property of any kind, real, personal, or mixed, or any
611-24 interest in such property, within or outside the boundaries of the
611-25 authority, necessary or convenient to the exercise of the powers,
611-26 rights, privileges, and functions conferred on the authority by
612-1 this chapter.
612-2 Sec. 272.025. EMINENT DOMAIN. (a) The authority has the
612-3 power and right of eminent domain for the purpose of acquiring by
612-4 condemnation property of any kind, real, personal, or mixed, or any
612-5 interest in such property, within or outside the boundaries of the
612-6 authority (other than such property or interest in such property
612-7 outside the boundaries of the authority that may at the time be
612-8 owned by any body politic) necessary or convenient to the exercise
612-9 of the powers, rights, privileges, and functions conferred on the
612-10 authority by this chapter in the manner provided by general law
612-11 with respect to condemnation or, at the option of the authority, in
612-12 the manner provided by statutes relative to condemnation by
612-13 districts organized under general law pursuant to Section 59,
612-14 Article XVI, Texas Constitution.
612-15 (b) In condemnation proceedings being prosecuted by the
612-16 authority, the authority shall not be required to give bond for
612-17 appeal or bond for costs.
612-18 (c) The authority may overflow and inundate public lands and
612-19 public property and require the relocation of roads and highways in
612-20 the manner and to the extent permitted to districts organized under
612-21 general law pursuant to Section 59, Article XVI, Texas
612-22 Constitution.
612-23 (d) If, in the exercise of the power of eminent domain, the
612-24 relocation or change of grade of any railroad facilities is
612-25 required, the relocation or change of grade shall be accomplished
612-26 under the provisions of Section 49.223.
613-1 Sec. 272.026. LIMITED LIABILITY FOR AQUATIC HERBICIDE
613-2 APPLICATION. (a) In this section, "commercially licensed aquatic
613-3 herbicide applicator" means a person who holds a commercial
613-4 applicator license issued by the Department of Agriculture under
613-5 Chapter 76, Agriculture Code, to apply aquatic herbicides.
613-6 (b) Except as provided by Chapter 12, Parks and Wildlife
613-7 Code, a commercially licensed aquatic herbicide applicator working
613-8 under contract with the authority is not liable for damages in
613-9 excess of $2 million of all types for personal injury, property
613-10 damage, or death resulting directly or indirectly from the
613-11 application of aquatic herbicide in compliance with such contract,
613-12 applicable law, and the license terms or permit.
613-13 (c) The control and elimination of noxious weeds, grasses,
613-14 and vegetation in the San Jacinto River and its tributaries,
613-15 impoundments, and reservoirs through the application by the
613-16 authority or its agents, employees, or contractors, in compliance
613-17 with applicable law, licenses, and permits, of aquatic herbicides
613-18 is an essential governmental function of the authority, and except
613-19 to the extent provided in Chapter 101, Civil Practice and Remedies
613-20 Code, nothing in this chapter shall be deemed or construed to
613-21 waive, limit, or restrict the governmental immunity of the
613-22 authority in the performance of such governmental function.
613-23 Sec. 272.027. RULES AND REGULATIONS. The board may make all
613-24 necessary rules and regulations for the government and control of
613-25 the authority not inconsistent with the constitution and laws of
613-26 the state.
614-1 Sec. 272.028. USE OF SAN JACINTO RIVER AND TRIBUTARIES. In
614-2 the prosecution of the plans for which the authority has been
614-3 created for storing, controlling, conserving, and distributing for
614-4 useful purposes the storm waters and floodwaters of the San Jacinto
614-5 River watershed, the authority may make use of the bed and banks of
614-6 the San Jacinto River and of its tributaries for any purposes
614-7 necessary to the accomplishment of the plans of the authority.
614-8 Sec. 272.029. CONFLICTS. Nothing in this chapter shall be
614-9 construed to violate any provision of the federal or state
614-10 constitutions, and all acts done under this chapter shall be done
614-11 in a manner that conforms to those constitutions, whether expressly
614-12 provided or not. If any procedure under this chapter is held by
614-13 any court to be violative of either of those constitutions, the
614-14 authority may by resolution provide an alternative procedure
614-15 conformable with those constitutions.
614-16 Sec. 272.030. APPLICATION OF PRIOR GENERAL LAWS. Nothing in
614-17 this chapter shall be deemed or construed to limit or restrict the
614-18 effectiveness or the application of any general law applicable to
614-19 the authority prior to the effective date of this chapter. To the
614-20 extent of any conflict, ambiguity, or inconsistency between any
614-21 such general law and this chapter, the previously applicable
614-22 general law shall control and prevail.
614-23 CHAPTER 273. SULPHUR RIVER BASIN AUTHORITY
614-24 Sec. 273.001. CREATION. (a) A conservation and reclamation
614-25 district to be known as the "Sulphur River Basin Authority" is
614-26 created. The authority is a governmental agency and a body politic
615-1 and corporate.
615-2 (b) The authority is created under and is essential to
615-3 accomplish the purposes of Section 59, Article XVI, Texas
615-4 Constitution.
615-5 (c) The authority may not levy any taxes or create any debt
615-6 payable out of taxation.
615-7 (d) The authority may exercise all the rights and powers of
615-8 an independent agency and body politic and corporate to construct,
615-9 maintain, and operate inside the state and in the watershed of the
615-10 Sulphur River and its tributaries, inside or outside the boundaries
615-11 of the authority, any works considered essential to the operation
615-12 of the authority and for its administration in controlling,
615-13 storing, preserving, and distributing the water of the Sulphur
615-14 River and its tributary streams, including the storm water and
615-15 floodwater. The authority may exercise the power of control and
615-16 regulation over the water of the Sulphur River and its tributaries
615-17 as may be exercised by the state, subject to the constitution and
615-18 the laws of this state.
615-19 Sec. 273.002. DEFINITIONS. In this chapter:
615-20 (1) "Authority" means the Sulphur River Basin
615-21 Authority.
615-22 (2) "Basin" means the watersheds of the Sulphur River
615-23 within the boundaries of the authority as defined in Section
615-24 273.003.
615-25 (3) "Board" means the board of directors of the
615-26 authority.
616-1 (4) "Director" means a member of the board.
616-2 (5) "Person" means an individual, corporation,
616-3 organization, public agency, business trust, estate, trust,
616-4 partnership, association, and any other legal entity.
616-5 (6) "Public agency" means any government or
616-6 governmental subdivision or agency.
616-7 (7) "State" means the State of Texas or any of its
616-8 agencies, departments, boards, political subdivisions, or other
616-9 entities.
616-10 (8) "United States" includes any department, bureau,
616-11 and other agency of the United States.
616-12 (9) "Waste" means sewage, industrial waste, municipal
616-13 waste, recreational waste, agricultural waste, waste heat, solid
616-14 waste, or any other waste.
616-15 Sec. 273.003. BOUNDARIES. (a) The authority is composed of
616-16 the territory in each county in Texas, other than Fannin County,
616-17 that is located in whole or in part within the watershed of the
616-18 Sulphur River and its tributaries with confluences with the Sulphur
616-19 River upstream from the eastern boundary of Texas, as those
616-20 watersheds and tributaries are defined by maps on file with the
616-21 Texas Water Development Board.
616-22 (b) The legislature finds that all of the land included in
616-23 the authority will benefit from the improvements to be acquired and
616-24 constructed by the authority.
616-25 Sec. 273.004. AUTHORITY PURPOSES. The purpose of this
616-26 chapter is to authorize the authority to provide for the
617-1 conservation and development of the state's natural resources
617-2 within the basin of Sulphur River, including:
617-3 (1) the control, storage, preservation, and
617-4 distribution of the state's water for domestic and municipal uses,
617-5 industrial uses, irrigation, mining and recovery of minerals, stock
617-6 raising, groundwater recharge, electric power generation,
617-7 navigation, recreation and pleasure, and other beneficial uses and
617-8 purposes;
617-9 (2) the reclamation and irrigation of land needing
617-10 irrigation;
617-11 (3) the reclamation and drainage of overflowed land
617-12 and other land needing drainage;
617-13 (4) the maintenance and enhancement of the quality of
617-14 the water;
617-15 (5) the conservation and development of the forests,
617-16 water, and hydroelectric power;
617-17 (6) the navigation of inland water; and
617-18 (7) the provision of systems, facilities, and
617-19 procedures for the collection, transportation, handling, treatment,
617-20 and disposal of waste of all types.
617-21 Sec. 273.005. CONSTRUCTION OF CHAPTER. This chapter shall
617-22 be liberally construed to achieve its purposes, and any particular
617-23 grant of power included in this chapter shall be held to specify
617-24 but not to limit general powers. This chapter is sufficient
617-25 authority for the performance of all acts and procedures authorized
617-26 by this chapter, without reference to any other law or any
618-1 restrictions or limitations included in any other law.
618-2 Sec. 273.006. BOARD OF DIRECTORS. (a) The authority shall
618-3 be governed by a board of directors composed of six members. The
618-4 directors are appointed by the governor with the advice and consent
618-5 of the senate. Two directors are appointed from each of the
618-6 following regions:
618-7 (1) Region 1: Bowie and Red River counties;
618-8 (2) Region 2: Cass, Franklin, Hunt, Morris, and Titus
618-9 counties; and
618-10 (3) Region 3: Delta, Hopkins, and Lamar counties.
618-11 (b) Each director must be a qualified elector and a resident
618-12 of a county in the region for which the director is appointed.
618-13 (c) Each director serves for a term of office as provided by
618-14 this subsection and until a successor has qualified. Directors
618-15 serve staggered terms of six years, with the terms of one-third of
618-16 the directors expiring February 1 of each odd-numbered year.
618-17 (d) Each director shall qualify by taking the constitutional
618-18 oath of office and by executing a bond in an amount determined by
618-19 the board conditioned on the faithful performance of the person's
618-20 duties as director.
618-21 (e) All vacancies on the board shall be filled in the manner
618-22 provided by this section for making the original appointment.
618-23 (f) The governor may remove a director from office for
618-24 inefficiency, neglect of duty, misconduct in office, or absence
618-25 from three consecutive regular meetings of the board. Before a
618-26 director is removed from office, the board shall call and hold a
619-1 hearing on the charges against the director, and the director who
619-2 is the subject of the proposed removal is entitled to appear at the
619-3 hearing and present evidence to show why the director should not be
619-4 removed from office. Not later than the 30th day before the date
619-5 of the hearing, the board shall give the accused director notice of
619-6 the charges against the director and the time and place for the
619-7 hearing. An affirmative vote of at least four of the directors is
619-8 required to approve a recommendation for removal. A recommendation
619-9 for removal shall be forwarded to the governor for the governor's
619-10 consideration and action as provided by this subsection.
619-11 (g) A majority of the members of the board constitutes a
619-12 quorum for the transaction of business.
619-13 (h) The board shall adopt and may amend necessary rules for
619-14 the conduct of the authority's business.
619-15 (i) The board shall elect a president, one or more vice
619-16 presidents, a secretary, a treasurer, and other officers as the
619-17 members of the board consider necessary. The president and vice
619-18 president must be directors, but other officers are not required to
619-19 be members of the board. The offices of the secretary and
619-20 treasurer may be combined, and the offices of assistant secretary
619-21 and assistant treasurer may be combined.
619-22 Sec. 273.007. INTEREST IN CONTRACT. A director who has a
619-23 financial interest in a contract of the authority for the purchase,
619-24 sale, lease, rental, or supply of property, including supplies,
619-25 materials, and equipment, or the construction of facilities shall
619-26 disclose that fact to the other members of the board and may not
620-1 vote on or participate in discussions during board meetings on the
620-2 acceptance of the contract. A financial interest of a director
620-3 does not affect the validity of a contract if disclosure is made
620-4 and the director with the financial interest does not vote on the
620-5 question of entering into the contract.
620-6 Sec. 273.008. DIRECTOR'S COMPENSATION. (a) A director is
620-7 entitled to receive $25 per day and reimbursement for actual and
620-8 necessary expenses incurred:
620-9 (1) for each day the director spends attending
620-10 meetings of the board; and
620-11 (2) for each day the director spends attending to
620-12 business of the authority that is authorized by the board.
620-13 (b) A director is not entitled to receive a per diem
620-14 allowance for more than 50 days in any single calendar year.
620-15 Sec. 273.009. COMMITTEES. The board may appoint or
620-16 establish committees from the membership of the board as necessary
620-17 or desirable in conducting the business of the authority. Subject
620-18 to the applicable rules of law on delegation of powers, the board
620-19 may assign or delegate or provide for the assignment or delegation
620-20 of any powers, duties, and functions to its committees as the board
620-21 may provide by rule or resolution.
620-22 Sec. 273.010. EXECUTIVE DIRECTOR. (a) By majority vote of
620-23 the qualified directors the board may employ an executive director
620-24 and set the executive director's salary and other compensation.
620-25 (b) The executive director is the chief executive officer of
620-26 the authority.
621-1 (c) Under policies established by the board, the executive
621-2 director is responsible to the board for:
621-3 (1) administering the directives of the board;
621-4 (2) keeping the authority's records, including minutes
621-5 of the meetings of the board and the executive committee;
621-6 (3) coordinating with state, federal, and local
621-7 agencies;
621-8 (4) developing plans and programs for the approval of
621-9 the board or the executive committee;
621-10 (5) hiring, supervising, training, and discharging the
621-11 authority's employees, as authorized by the board or the executive
621-12 committee;
621-13 (6) contracting for or retaining technical,
621-14 scientific, legal, fiscal, and other professional services, as
621-15 authorized by the board; and
621-16 (7) performing any other duties assigned by the board.
621-17 (d) The board may discharge the executive director on a
621-18 majority vote of the qualified directors.
621-19 Sec. 273.011. DIRECTORS' AND EMPLOYEES' BONDS. (a) The
621-20 executive director, the treasurer, and other officers, agents, and
621-21 employees of the authority who have responsibilities that involve
621-22 the collection, custody, or payment of any money of the authority
621-23 shall execute a fidelity bond. The board shall approve the form,
621-24 amount, and surety of the bond.
621-25 (b) The authority shall pay the premiums on the bonds
621-26 required under this chapter.
622-1 Sec. 273.012. PRINCIPAL OFFICE. The authority shall
622-2 maintain its principal office inside its boundaries.
622-3 Sec. 273.013. RECORDS. (a) The authority shall keep
622-4 complete and accurate accounts of its business transactions in
622-5 accordance with generally accepted methods of accounting.
622-6 (b) The authority shall keep complete and accurate minutes
622-7 of its meetings.
622-8 (c) The authority shall keep its accounts, contracts,
622-9 documents, minutes, and other records at its principal office.
622-10 (d) Except as otherwise required by law, the authority may
622-11 not disclose any records that it has relating to trade secrets or
622-12 the economics of operation of any business or industry.
622-13 (e) Except as provided by Subsection (d), the authority
622-14 shall permit reasonable public inspection of its records during
622-15 regular business hours under rules adopted by the board.
622-16 Sec. 273.014. SEAL. The authority shall adopt a seal.
622-17 Sec. 273.015. SUIT. (a) The authority may sue and be sued
622-18 in the name of the authority.
622-19 (b) Service of process may be accomplished by serving the
622-20 president or vice president of the board or the executive director.
622-21 (c) All courts of this state shall take judicial notice of
622-22 the establishment of the authority.
622-23 Sec. 273.016. GENERAL POWERS AND DUTIES. (a) The authority
622-24 shall administer this chapter and shall use its facilities and
622-25 powers to accomplish the purposes of this chapter.
622-26 (b) The authority may exercise the powers, rights, and
623-1 privileges necessary or convenient for accomplishing the purposes
623-2 of this chapter.
623-3 (c) The powers granted to the authority by this chapter are
623-4 cumulative of all powers granted by other laws that are applicable
623-5 to the authority. The powers granted to the authority by this
623-6 chapter are not intended to restrict the powers of any conservation
623-7 and reclamation district previously created within the basin or
623-8 area of the authority under Section 59, Article XVI, Texas
623-9 Constitution. It is the legislature's intent that the authority
623-10 and those districts exercise their respective powers in a
623-11 cooperative manner.
623-12 (d) A district previously created under Section 59, Article
623-13 XVI, or Sections 52(b)(1) and (2), Article III, Texas Constitution,
623-14 may coordinate its plans with the authority and may enter into
623-15 joint undertakings for the purposes for which the districts are
623-16 created. However, those undertakings must be approved by a
623-17 majority of the boards of directors of the district and of the
623-18 authority.
623-19 Sec. 273.017. CONTROL AND USE OF WATERS. (a) Subject to
623-20 the constitution and other laws of the state and the continuing
623-21 right of supervision of the state through the commission, the
623-22 authority may exercise authority over the storm water and
623-23 floodwater of the basin, subject to applicable provisions of this
623-24 code.
623-25 (b) The authority may exercise the powers of control and use
623-26 of the state's water in the following manner and for the following
624-1 purposes:
624-2 (1) to provide for the control and coordination of
624-3 water use in the basin as a unit;
624-4 (2) to provide by adequate organization and
624-5 administration for the preservation of the rights of the people of
624-6 the different sections of the basin in the beneficial use of water;
624-7 (3) to provide for conserving storm water, floodwater,
624-8 and unappropriated flow water of the basin, including the storage,
624-9 control, transportation, treatment, and distribution of that water,
624-10 and for the prevention of the escape of water without the maximum
624-11 of public service, the prevention of devastation of land from
624-12 recurrent overflows, and the protection of life and property in the
624-13 river basin from uncontrolled floodwater;
624-14 (4) to provide for the conservation of water essential
624-15 for domestic and other water uses of the people of the basin,
624-16 including necessary water supplies for cities, towns, and
624-17 industrial districts;
624-18 (5) to provide for the irrigation of land in the basin
624-19 where irrigation is required for agricultural purposes or is
624-20 considered helpful to more profitable agricultural production and
624-21 to provide for the equitable distribution of storm water,
624-22 floodwater, and unappropriated flow water to the regional potential
624-23 requirements for all uses;
624-24 (6) to provide for the encouragement and development
624-25 of drainage systems and provisions for drainage of land in the
624-26 valleys of the basin needing drainage for profitable agricultural
625-1 and livestock production and industrial activities and for other
625-2 drainage of land for the most advantageous use;
625-3 (7) to provide for the conservation of soil against
625-4 destructive erosion and to prevent the increased risk of flood
625-5 incident to erosion;
625-6 (8) to control and make available for use storm water,
625-7 floodwater, and unappropriated flow water, as authorized by the
625-8 commission, in the development of commercial and industrial
625-9 enterprises in all sections of the watershed area of the authority;
625-10 (9) to provide for the control, storage, and use of
625-11 storm water, floodwater, and unappropriated flow water in the
625-12 development and distribution of hydroelectric power, where this use
625-13 may be economically coordinated with other and superior uses and
625-14 subordinated to the uses declared by law to be superior;
625-15 (10) to provide for each purpose and use for which
625-16 storm water, floodwater, and unappropriated flow water when
625-17 controlled and conserved may be used in the performance of a useful
625-18 service as contemplated and authorized by the provisions of the
625-19 constitution and laws of the state;
625-20 (11) to control, store, and preserve the water of the
625-21 basin inside the boundaries of the authority for any useful
625-22 purpose;
625-23 (12) to use, distribute, and sell water for any
625-24 beneficial purpose inside and outside the authority; and
625-25 (13) to acquire water and water rights inside and
625-26 outside the authority.
626-1 (c) Plans and works provided by the authority or under
626-2 authorization of the authority should give primary consideration to
626-3 the necessary and potential needs for water by or within the
626-4 various areas within the watersheds of the basin.
626-5 (d) The authority shall adopt and implement a program of
626-6 water conservation consistent with rules and criteria duly adopted
626-7 and enforceable by the commission for similarly situated
626-8 authorities. A program of water conservation means the use of
626-9 practices, techniques, and technologies that will reduce the
626-10 consumption of water, reduce the loss or waste of water, improve
626-11 efficiency in the use of water, or increase the recycling and reuse
626-12 of water so that a water supply is made available for future uses.
626-13 Sec. 273.018. FORESTATION AND REFORESTATION. The authority
626-14 may forest and reforest and aid in the foresting and reforesting of
626-15 the watershed area of the basin.
626-16 Sec. 273.019. GROUNDWATER. (a) The authority may conduct
626-17 surveys and studies of the groundwater supplies in the authority
626-18 for the purpose of determining the location and quantity of
626-19 groundwater available and develop and ascertain other data and
626-20 information that in the judgment of the board may be necessary to
626-21 fully develop water uses from the groundwater in the authority.
626-22 (b) Subject to the requirements of applicable laws and with
626-23 the approval and under the supervision of the commission, the
626-24 authority may appropriate storm water and floodwater to recharge
626-25 underground freshwater-bearing sand and aquifers in the basin.
626-26 Sec. 273.020. WATER QUALITY CONTROL. The authority is a
627-1 river authority for the purposes and definitions of Chapters 362
627-2 and 383, Health and Safety Code, and Chapter 30 as they apply to
627-3 the authority. If one of those chapters conflicts with this
627-4 chapter, this chapter prevails.
627-5 Sec. 273.021. SOLID WASTE. The authority may purchase,
627-6 acquire, construct, maintain, and provide facilities, equipment,
627-7 and disposal sites to furnish solid waste collection,
627-8 transportation, treatment, and disposal services inside the
627-9 authority, may charge for the services, and may enter into
627-10 contracts for those services with any person.
627-11 Sec. 273.022. PARKS AND RECREATIONAL FACILITIES. The
627-12 authority may acquire land adjacent to or in the basin for park and
627-13 recreational purposes and may acquire, construct, and maintain park
627-14 and recreational facilities on that land.
627-15 Sec. 273.023. PERMITS AND LICENSES. (a) The authority
627-16 shall apply for any permits, licenses, franchises, and other grants
627-17 of authority required from the commission.
627-18 (b) The authority may apply for any permits, licenses,
627-19 franchises, and financial assistance it may need from the Texas
627-20 Water Development Board, the commission, or any other state,
627-21 federal, or local governmental agency.
627-22 Sec. 273.024. SERVICE CONTRACTS AND CHARGES. (a) The
627-23 authority may enter into service contracts and may adopt
627-24 resolutions and orders establishing rates and providing for the
627-25 collection of fees and charges for the sale or use of water, the
627-26 services of water transmission, treatment, and storage facilities,
628-1 solid and liquid waste collection, treatment and disposal
628-2 facilities and services, the use of park and recreational
628-3 facilities, the sale of power and electric energy, and any other
628-4 services or facilities sold, furnished, or supplied by the
628-5 authority.
628-6 (b) The fees and charges shall be sufficient to produce
628-7 revenues adequate to:
628-8 (1) pay expenses necessary for the operation and
628-9 maintenance of the property and facilities of the authority;
628-10 (2) pay the principal of and interest on any bonds or
628-11 other obligations issued by the authority when due and payable and
628-12 to fulfill any reserve or other fund obligations of the authority
628-13 in connection with the bonds or other obligations; and
628-14 (3) pay any other expenses the board considers
628-15 necessary and proper for the operations of the authority.
628-16 Sec. 273.025. EMINENT DOMAIN. (a) The authority may
628-17 acquire land inside and outside the authority to carry out the
628-18 powers, rights, privileges, authority, and functions authorized by
628-19 this chapter by condemnation when the board determines, after
628-20 notice and hearing, that it is necessary.
628-21 (b) The right of eminent domain shall be exercised by the
628-22 authority in the manner provided by Chapter 21, Property Code,
628-23 except that the authority is not required to give bond for appeal
628-24 or bond for costs in a condemnation suit or other suit to which it
628-25 is a party and is not required to deposit double the amount of any
628-26 award in any suit.
629-1 (c) If the authority, in the exercise of the power of
629-2 eminent domain, makes necessary the relocation, raising, lowering,
629-3 rerouting, changing the grade, or alteration of the construction of
629-4 any highway, railroad, electric transmission or distribution line,
629-5 telephone or telegraph properties and facilities, or pipeline, all
629-6 necessary relocations, raising, lowering, rerouting, changing the
629-7 grade, or alteration of construction shall be accomplished at the
629-8 sole expense of the authority. In this subsection "sole expense"
629-9 means the actual cost of relocation, raising, lowering, rerouting,
629-10 change in grade, or alteration of construction to provide
629-11 comparable replacement without enhancement of facilities after
629-12 deducting the net salvage value derived from the old facility.
629-13 Sec. 273.026. ACQUISITION AND DISPOSITION OF PROPERTY.
629-14 (a) The authority may purchase, lease, acquire by gift, maintain,
629-15 use, and operate property of any kind inside or outside the
629-16 authority appropriate for the exercise of its powers or the
629-17 accomplishment of its purposes.
629-18 (b) The authority may sell any property or interest in
629-19 property owned by the authority by installments or otherwise,
629-20 including sales in any manner prescribed or authorized by Section
629-21 402.014, Local Government Code, Chapter 383, Health and Safety
629-22 Code, and Chapter 30. The authority may also lease, exchange, or
629-23 otherwise dispose of any property or interest in property.
629-24 Sec. 273.027. FACILITIES. The authority may acquire,
629-25 construct, extend, improve, maintain, reconstruct, use, and operate
629-26 facilities inside or outside the authority necessary or convenient
630-1 to the exercise of its powers, rights, duties, and functions or the
630-2 accomplishment of its purposes.
630-3 Sec. 273.028. USE OF PUBLIC EASEMENTS. The authority may
630-4 use public roadways, streets, alleys, or public easements inside or
630-5 outside the boundaries of the authority in the exercise of its
630-6 powers or the accomplishment of its purposes without the necessity
630-7 of securing a franchise.
630-8 Sec. 273.029. CONTRACTS GENERALLY. (a) The authority may
630-9 enter into contracts and execute instruments that are necessary or
630-10 convenient to the exercise of its powers, rights, duties, and
630-11 functions or the accomplishment of its purposes.
630-12 (b) Notwithstanding any other law, the authority may
630-13 undertake and carry out any activities, enter into contracts, loan
630-14 agreements, leases, or installment sales agreements, and acquire,
630-15 purchase, construct, own, operate, maintain, repair, improve, or
630-16 extend and loan, lease, sell, or otherwise dispose of, as the
630-17 parties may agree, any facilities, plants, buildings, structures,
630-18 equipment, and appliances, property or any interest in property,
630-19 and any or all money or proceeds of bonds and other obligations.
630-20 These activities and agreements may be accomplished by such methods
630-21 as loan payments, rentals, sales, and installment sales.
630-22 (c) The authority may contract with all persons in any
630-23 manner authorized by this chapter, Chapters 362 and 383, Health and
630-24 Safety Code, and Chapter 30 with respect to water, waste, pollution
630-25 control, or any other facilities and any services provided by the
630-26 authority. A public agency may also enter into and execute such a
631-1 contract with the authority and may determine, agree, and pledge
631-2 that all or any parts of its payments under the contract are
631-3 payable from the source described in Section 30.030(c), subject
631-4 only to the authorization of the contract, pledge, and payments by
631-5 the governing body of the public agency. A public agency may also
631-6 use and pledge other available revenues or resources for payment of
631-7 amounts due under those contracts, as an additional source or
631-8 sources of payment or as the sole source or sources of payment.
631-9 (d) A public agency may set, charge, and collect fees,
631-10 rates, charges, rentals, and other amounts for services or
631-11 facilities provided by a utility operated by the agency, or
631-12 provided pursuant to or in connection with a contract with the
631-13 authority, from its inhabitants or from users or beneficiaries of
631-14 the utility, services, or facilities, including water charges and
631-15 garbage collection or handling fees and other fees or charges, may
631-16 use and pledge those funds to make payments to the authority
631-17 required under the contract, and may covenant to do so in amounts
631-18 sufficient to make all or part of those payments to the authority
631-19 when due. If the parties agree in the contract, the payments
631-20 constitute an expense of operation of any facilities or utility
631-21 operated by the public agency.
631-22 Sec. 273.030. BIDS AND CONTRACT CONDITIONS. (a) A
631-23 construction, maintenance, operation, or repair contract, a
631-24 contract for the purchase of material, equipment, or supplies, or a
631-25 contract for services, other than technical, scientific, legal,
631-26 fiscal, or other professional services, that will require an
632-1 estimated expenditure of more than $10,000 or is for a term of six
632-2 months or more shall be awarded to the lowest and best bidder. If
632-3 the board finds that an extreme emergency exists, the board may
632-4 award contracts necessary to protect and preserve the public health
632-5 and welfare or the property of the authority without using the
632-6 bidding procedures.
632-7 (b) A notice to bidders shall be published once each week
632-8 for three consecutive weeks before the date set for awarding the
632-9 contract. The notice must be published in a newspaper with general
632-10 circulation in the authority and may also be published in any other
632-11 appropriate publication.
632-12 (c) The notice of bids is sufficient if it states the time
632-13 and place at which the bids will be opened and the general nature
632-14 of the work to be done, the material, equipment, or supplies to be
632-15 purchased, or the nonprofessional services to be rendered and
632-16 states the terms on which copies of the plans, specifications, or
632-17 other pertinent information may be obtained.
632-18 (d) A person who desires to bid on the construction of any
632-19 work or project that is advertised for bids shall, on written
632-20 application to the authority, be provided a copy of the plans and
632-21 specifications or other engineering and architectural documents
632-22 showing the work to be done and all of the details of the work to
632-23 be done. The authority may make a charge to cover the cost of
632-24 making the copy. Bids must be in writing and sealed and delivered
632-25 to the authority and must be accompanied by a certified check on a
632-26 responsible bank in the state, or, at the discretion of the
633-1 authority, a bid bond from a company approved by the authority, for
633-2 at least one percent of the total amount bid. The check or bond is
633-3 forfeited to the authority if the successful bidder fails or
633-4 refuses to enter into a proper contract or fails or refuses to
633-5 furnish bond as required by law. Any or all bids may be rejected
633-6 by the authority, and the authority may waive any irregularity in
633-7 the bids.
633-8 (e) Bids shall be opened at the place specified in the
633-9 published notice and shall be announced by the authority. The
633-10 place where the bids are opened and announced shall be open to the
633-11 public. The award of the contract shall be made by the board.
633-12 (f) The contract price of construction contracts of the
633-13 authority may be paid in partial payment as the work progresses,
633-14 but the payments shall not exceed 90 percent of the amount due at
633-15 the time of the payment as shown by the report of the engineer of
633-16 the authority. During the progress of the work, the executive
633-17 director shall inspect the construction or have the construction
633-18 inspected by the authority's engineer or the engineer's assistants.
633-19 On certification of the executive director and the authority's
633-20 engineer of the completion of the contract in accordance with its
633-21 terms, and in the case of any construction contract for which
633-22 notice to bidders is required by this chapter, on approval of the
633-23 board, the board shall draw a warrant on its depository to pay the
633-24 balance due on the contract.
633-25 (g) The person, firm, or corporation with whom the contract
633-26 is made shall provide the performance and payment bonds required by
634-1 law.
634-2 (h) This section does not prohibit the authority from
634-3 purchasing or acquiring land or interests in land from any person,
634-4 from acquiring, constructing, or improving pollution control or
634-5 waste collection and disposal facilities as provided by Chapter
634-6 383, Health and Safety Code, or Chapter 30 or other applicable
634-7 laws, or from purchasing or acquiring surplus property from a
634-8 governmental entity by negotiated contract and without necessity
634-9 for advertising for bids.
634-10 (i) An officer, agent, or employee of the authority who has
634-11 a financial interest in a contract shall disclose that fact to the
634-12 board before the board votes on the acceptance of the contract.
634-13 Sec. 273.031. AUTHORITY RULES. (a) The authority may adopt
634-14 and enforce rules reasonably required to carry out the purposes of
634-15 this chapter.
634-16 (b) In adopting rules, the board shall comply, as
634-17 appropriate, with the requirements of Chapter 2001, Government
634-18 Code.
634-19 (c) The board shall print its rules and furnish copies to
634-20 any person on written request.
634-21 Sec. 273.032. PENALTIES. (a) A person who violates a rule
634-22 or order of the authority is subject to a civil penalty of not less
634-23 than $50 nor more than $1,000 for each day of violation.
634-24 (b) The authority may sue to recover the penalty in a
634-25 district court in the county in which the violation occurred.
634-26 Penalties shall be paid to the authority.
635-1 (c) The authority may sue for injunctive relief in a
635-2 district court in the county in which the violation of any rule or
635-3 order occurred or is threatened.
635-4 (d) The authority may sue for injunctive relief and
635-5 penalties in the same proceeding.
635-6 Sec. 273.033. COURT REVIEW. (a) A person who is adversely
635-7 affected by a rule or order of the authority may, before the 31st
635-8 day after the day on which the rule or order takes effect, sue the
635-9 authority in a district court to set aside the rule or order.
635-10 (b) Venue for suits under Subsection (a) is in any county
635-11 located wholly or partially in the authority.
635-12 Sec. 273.034. SURVEYS AND ENGINEERING INVESTIGATIONS;
635-13 PLANNING. (a) The authority may make surveys and engineering
635-14 investigations to develop information for the authority's use.
635-15 (b) The board may make and determine plans necessary to
635-16 accomplish the purposes for which the authority is created and may
635-17 carry out the plans.
635-18 Sec. 273.035. ACCESS. (a) To provide for the safety and
635-19 welfare of persons and their property or for the protection and
635-20 security of the property and facilities of the authority, the board
635-21 may adopt rules with respect to the property of the authority and
635-22 any water reservoir or dam, the construction, operation, or
635-23 management of which is participated in by the authority, to control
635-24 and regulate ingress, egress, and use and the operation of land and
635-25 water vehicles.
635-26 (b) All public roads, streets, and state highways traversing
636-1 the areas adjacent to the areas to be covered by any impounded
636-2 water shall remain open as a way of public passing to and from the
636-3 lakes created, unless changed by the authority.
636-4 Sec. 273.036. USE OF BED AND BANKS OF SULPHUR RIVER AND ITS
636-5 TRIBUTARIES. Subject to the approval of the commission, the
636-6 authority may use the beds and banks of the Sulphur River and its
636-7 tributary streams for any purposes necessary to accomplish the
636-8 plans of the authority for storing, controlling, conserving,
636-9 transporting, and distributing storm water, floodwater, and
636-10 appropriated flow waters for useful purposes.
636-11 Sec. 273.037. WORK WITH DEVELOPMENT BOARD. The authority
636-12 has and may exercise all the powers vested in political
636-13 subdivisions under Title 2, including the powers necessary to
636-14 enable the authority to participate in the programs administered by
636-15 the Texas Water Development Board for the acquisition and
636-16 development of facilities, the sale or lease of facilities,
636-17 financial assistance to political subdivisions, and other programs.
636-18 Sec. 273.038. GENERAL PROVISIONS. (a) The board may
636-19 provide for any expenditures it considers essential or useful in
636-20 the maintenance, operation, and administration of the authority.
636-21 (b) The authority may perform any other acts or things
636-22 necessary or convenient to the exercise of the powers, rights,
636-23 privileges, or functions conferred by this chapter or other laws.
636-24 Sec. 273.039. LIMITATIONS ON AUTHORITY AND SUPERVISION BY
636-25 COMMISSION. (a) The powers and duties granted and prescribed by
636-26 this chapter are subject to all legislative declarations of public
637-1 policy in the maximum use of the storm water, floodwater, and
637-2 unappropriated flow water of the basin for the purposes for which
637-3 the authority is created and subject to the continuing right of
637-4 supervision of the state through the commission.
637-5 (b) The commission shall approve or refuse to approve the
637-6 adequacy of any plan or plans for flood control or conservation
637-7 improvement purposes that are devised by the authority for the
637-8 achievement of the plans and purposes intended in the creation of
637-9 the authority and that contemplate improvements supervised by the
637-10 commission under general law.
637-11 Sec. 273.040. DISBURSEMENT OF FUNDS. The authority's funds
637-12 may be disbursed only by check, draft, order, or other instrument
637-13 signed by the person or persons authorized in the board's rules or
637-14 by resolution of the board.
637-15 Sec. 273.041. FEES AND CHARGES. The authority shall
637-16 establish fees and charges that may not be higher than necessary to
637-17 fulfill the obligations imposed by this chapter.
637-18 Sec. 273.042. LOANS AND GRANTS. (a) The authority may
637-19 borrow money and accept grants and donations for its corporate
637-20 purposes from private sources, the United States, the state, local
637-21 governments, or any other person. The authority may enter into any
637-22 agreement in connection with the loan, grant, or donation that is
637-23 not in conflict with the constitution and laws of the state.
637-24 (b) The sources of any funds accepted by the authority are
637-25 public information.
637-26 Sec. 273.043. FUNDS FOR SURVEYS AND DATA COLLECTION. The
638-1 authority may apply to the state, the United States, or any other
638-2 person for funds necessary to secure engineering surveys and the
638-3 compilation and collection of data relating to regional and general
638-4 conditions entering into and influencing the character and the
638-5 extent of the improvements necessary to accomplish the storage,
638-6 control, transportation, treatment, conservation, and equitable
638-7 distribution to the greatest public advantage of the storm water,
638-8 floodwater, and normal flow that is stored and controlled and to
638-9 accomplish or carry out any of the other purposes of this chapter.
638-10 The authority shall request an amount it considers sufficient. The
638-11 authority may make the necessary agreements with the party
638-12 providing the funds and may appropriate the amount of the estimated
638-13 equitable contribution of the costs of developing essential
638-14 engineering data.
638-15 Sec. 273.044. TRUST FUNDS. Funds collected by or donated,
638-16 granted, loaned, or advanced to the authority are declared to be
638-17 trust funds for the purposes provided by this chapter.
638-18 Sec. 273.045. INVESTMENT OF FUNDS. (a) Funds in the
638-19 authority treasury that are not required for current payment of
638-20 obligations of the authority or for sinking funds and that the
638-21 board considers available for investment may be invested or
638-22 reinvested by the authority in:
638-23 (1) direct obligations of or obligations the principal
638-24 and interest of which are guaranteed by the United States;
638-25 (2) direct obligations of or participation
638-26 certificates guaranteed by the Federal Intermediate Credit Banks,
639-1 Federal Land Banks, Federal National Mortgage Association, Federal
639-2 Home Loan Banks, and Banks for Cooperatives;
639-3 (3) certificates of deposit of a bank or trust company
639-4 the deposits of which are fully secured by a pledge of securities
639-5 of any of the institutions specified in this subsection;
639-6 (4) other securities eligible for investment under
639-7 other laws; or
639-8 (5) any combination of the investments listed in this
639-9 subsection.
639-10 (b) The type and maturity of investments made under this
639-11 section shall be determined by the board. In the case of funds
639-12 established in connection with the authorization of bonds or other
639-13 obligations, the board shall include appropriate provisions
639-14 relating to such investments in the resolution relating to the
639-15 issuance of the bonds. Income and profits on such investments
639-16 shall be applied as directed by the board.
639-17 Sec. 273.046. AUDIT. (a) The fiscal year of the authority
639-18 ends on August 31 of each year.
639-19 (b) On or before January 1 following the close of each
639-20 fiscal year, the state auditor shall audit the books and accounts
639-21 of the authority for the preceding fiscal year.
639-22 (c) The audit must state the amount of money received by the
639-23 authority under this chapter during the preceding fiscal year and
639-24 how, to whom, and for what purpose the money was spent.
639-25 (d) A copy of the audit report shall be filed with the
639-26 authority, the governor, the lieutenant governor, the speaker of
640-1 the house of representatives, the attorney general, the commission,
640-2 and the comptroller.
640-3 (e) After completing the audit report, the state auditor
640-4 shall prepare a statement showing the actual cost of the audit and
640-5 shall certify the statement to the governor for his approval.
640-6 After the statement is approved by the governor, it shall be
640-7 delivered to the authority. The authority shall pay for the cost
640-8 of the audit by depositing the money for the audit with the
640-9 comptroller, who shall place the money in the general revenue fund.
640-10 (f) This section does not prohibit the authority from
640-11 employing the professional services of accountants for any
640-12 purposes.
640-13 Sec. 273.047. DEPOSITORY BANKS. (a) The board shall
640-14 designate one or more banks inside or outside the authority to
640-15 serve as depository for the funds of the authority.
640-16 (b) All money of the authority shall be deposited in the
640-17 depository bank or banks, except that bond proceeds or proceeds of
640-18 other obligations, money pledged to pay those obligations, money
640-19 placed in special funds, and money remitted to a bank of payment
640-20 for the payment of the principal of and interest on obligations may
640-21 be handled as provided in a trust indenture or resolution.
640-22 (c) To the extent that funds in the depository banks or a
640-23 trustee bank are not invested or insured by the Federal Deposit
640-24 Insurance Corporation, the funds shall be secured in the manner
640-25 provided by law for the security of county funds.
640-26 (d) Before designating a depository bank or banks, the board
641-1 shall issue a notice stating the time and place at which the board
641-2 will meet to designate the depositories and inviting banks to
641-3 submit applications to be designated depositories. The term of
641-4 service for depositories shall be prescribed by the board. The
641-5 notice must be published one time in a newspaper or newspapers of
641-6 general circulation in the authority and specified by the board, or
641-7 in lieu of publication, a copy of the notice may be mailed to each
641-8 bank inside the boundaries of the authority.
641-9 (e) At the time stated in the notice, the board shall
641-10 consider the applications and the management and conditions of the
641-11 banks filing them and shall designate as depositories the bank or
641-12 banks that offer the most favorable terms and conditions for the
641-13 handling of the funds of the authority and that the board finds
641-14 have proper management and are in condition to warrant handling of
641-15 authority funds. Membership on the board by an officer or director
641-16 of a bank does not disqualify the bank from being designated as
641-17 depository.
641-18 (f) If no applications seeking designation as depository are
641-19 received by the time stated in the notice, the board shall
641-20 designate a bank or banks inside or outside the authority as
641-21 depository on terms and conditions the board considers advantageous
641-22 to the authority.
641-23 Sec. 273.048. BONDS. (a) For the purpose of carrying out
641-24 any power or authority provided by this chapter, including the
641-25 expense of preparing the master plan and the payment of engineering
641-26 and other expenses, the authority may issue bonds or other
642-1 obligations in one general class secured by a pledge of all or part
642-2 of the revenues accruing to the authority, including without
642-3 limitations the revenues received from the sale of water or other
642-4 products, from the rendition of service, from tolls and charges,
642-5 and from all other sources other than ad valorem taxes.
642-6 (b) The bonds must be authorized by resolution of the board,
642-7 issued in the name of the authority, signed by the president or a
642-8 vice president, and attested by the secretary. The bonds must bear
642-9 the seal of the authority. If authorized by the board, the
642-10 signatures of the president or vice president and of the secretary
642-11 or of both may be printed or lithographed on the bonds, and the
642-12 seal of the authority may be impressed on the bonds or may be
642-13 printed or lithographed on the bonds.
642-14 (c) The bonds shall be in the form prescribed by the board,
642-15 shall be in any denomination or denominations, must mature serially
642-16 or otherwise in not to exceed 50 years from their date, shall bear
642-17 interest according to law, and may be sold at a price and under
642-18 terms determined by the board to be the most advantageous
642-19 reasonably obtainable. The board may make the bonds callable
642-20 before maturity at the times and prices prescribed in the bonds,
642-21 and the bonds may be made registrable as to principal or as to both
642-22 principal and interest. The bonds may be further secured by a
642-23 trust indenture with a corporate trustee.
642-24 (d) Bonds may be issued in more than one series, and from
642-25 time to time, as required for carrying out the purposes of this
642-26 chapter. A pledge of revenue may reserve the right, under
643-1 specified conditions, to issue additional obligations that will be
643-2 on a parity with or subordinate to the obligations being issued.
643-3 (e) The authority is an "issuer" for the purpose of Chapter
643-4 1371, Government Code, and that law applies to the authority.
643-5 (f) The resolution authorizing the bonds or the trust
643-6 indenture further securing the bonds may specify additional
643-7 provisions that constitute a contract between the authority and the
643-8 owners of the bonds. The board may provide for additional
643-9 provisions, including a corporate trustee or receiver provided by
643-10 the authority to take possession of facilities of the authority in
643-11 the event of default on the part of the authority in fulfilling the
643-12 covenants.
643-13 Sec. 273.049. REFUNDING BONDS. The authority may issue
643-14 refunding bonds to refund outstanding obligations issued under this
643-15 chapter. Refunding bonds may be issued by the authority as
643-16 provided by Chapter 1207, Government Code. Obligations issued at
643-17 any time by the authority may also be refunded in the manner
643-18 provided by any other applicable law.
643-19 Sec. 273.050. APPROVAL AND REGISTRATION OF BONDS.
643-20 (a) After bonds, including refunding bonds, are authorized by the
643-21 authority, the bonds and the record relating to their issuance
643-22 shall be submitted to the attorney general for examination as to
643-23 the validity of the bonds. If obligations are to be issued to
643-24 finance in whole or in part water-using facilities, before granting
643-25 approval the attorney general shall be furnished a resolution from
643-26 the commission certifying that the authority has the necessary
644-1 water rights authorizing it to impound and appropriate the water to
644-2 be used by the project. If the obligations recite that they are
644-3 secured by a pledge of the proceeds of a contract made between the
644-4 authority and any public agency, a copy of the contract and the
644-5 proceedings of the public agency authorizing the contract shall
644-6 also be submitted to the attorney general.
644-7 (b) If the attorney general finds that the bonds have been
644-8 authorized and the contracts have been made as provided by the
644-9 constitution and laws of the state, the attorney general shall
644-10 approve the bonds and the contracts and the bonds shall then be
644-11 registered by the comptroller.
644-12 (c) After approval and registration, the bonds and contracts
644-13 are valid and binding and are incontestable for any cause.
644-14 Sec. 273.051. BONDS AS INVESTMENTS OR SECURITY FOR DEPOSITS.
644-15 (a) Authority bonds are legal and authorized investments for:
644-16 (1) banks;
644-17 (2) savings banks;
644-18 (3) trust companies;
644-19 (4) savings and loan associations;
644-20 (5) insurance companies;
644-21 (6) fiduciaries;
644-22 (7) trustees;
644-23 (8) guardians; and
644-24 (9) sinking funds of cities, counties, school
644-25 districts, and other political subdivisions of the state and other
644-26 public funds of the state and its agencies, including the permanent
645-1 school fund.
645-2 (b) Authority bonds are eligible to secure deposits of
645-3 public funds of the state and cities, counties, school districts,
645-4 and other political subdivisions of the state. The bonds are
645-5 lawful and sufficient security for deposits to the extent of their
645-6 value.
645-7 Sec. 273.052. LEGISLATIVE FINDINGS. The legislature finds
645-8 and determines that the boundaries of the authority form a closure.
645-9 If a mistake is made in the description of the boundaries in the
645-10 legislative process or a mistake is otherwise made, the mistake
645-11 does not affect the organization, existence, and validity of the
645-12 authority or the right of the authority to issue any types of
645-13 bonds, including refunding bonds, for the purposes for which the
645-14 authority is created or to pay the principal of or interest on the
645-15 obligations or in any other manner affect the legality or operation
645-16 of the authority or its governing body.
645-17 CHAPTER 274. SULPHUR RIVER MUNICIPAL WATER DISTRICT
645-18 Sec. 274.001. CREATION. (a) A conservation and reclamation
645-19 district to be known as the "Sulphur River Municipal Water
645-20 District" is created. The district is a governmental agency and a
645-21 body politic and corporate.
645-22 (b) The district is created under and is essential to
645-23 accomplish the purposes of Section 59, Article XVI, Texas
645-24 Constitution.
645-25 Sec. 274.002. DEFINITIONS. In this chapter:
645-26 (1) "Board" means the board of directors of the
646-1 district.
646-2 (2) "Director" means a member of the board.
646-3 (3) "District" means the Sulphur River Municipal Water
646-4 District.
646-5 Sec. 274.003. TERRITORY. (a) The district comprises all
646-6 the territory that was contained within the cities of Cooper,
646-7 Commerce, and Sulphur Springs on March 1, 1955. A defect in the
646-8 definition of the boundaries of any of those cities or in any past
646-9 or future proceedings for the annexation of territory to any of
646-10 those cities does not affect the validity of the district or any of
646-11 its powers or duties.
646-12 (b) It is found that all the land included in the district
646-13 will benefit from the improvements to be acquired and constructed
646-14 by the district.
646-15 Sec. 274.004. BOARD OF DIRECTORS. (a) All powers of the
646-16 district shall be exercised by a board of directors. The directors
646-17 shall be appointed by a majority vote of the governing body of each
646-18 of the cities contained in the district.
646-19 (b) In May of each year, the governing body of each city
646-20 shall appoint one director for a two-year term beginning on June 1
646-21 of that year.
646-22 (c) Each director serves for a term of office as provided by
646-23 this section and until a successor is appointed and has qualified.
646-24 (d) A director must reside in and own taxable property in
646-25 the city from which the director is appointed. A member of a
646-26 governing body of a city or an employee of a city is not eligible
647-1 to serve as a director.
647-2 (e) A director shall subscribe the constitutional oath of
647-3 office and shall give bond for the faithful performance of the
647-4 director's duties in the amount of $5,000. The cost of the bond
647-5 shall be paid by the district.
647-6 (f) A majority of the members of the board constitutes a
647-7 quorum.
647-8 Sec. 274.005. DIRECTOR FEES. (a) Each director is entitled
647-9 to receive a fee of $20 for attending each meeting of the board;
647-10 provided, however, that not more than $40 shall be paid to any
647-11 director for meetings held in any one calendar month.
647-12 (b) A director is entitled to receive a fee of $20 per day
647-13 for each day devoted to the business of the district and to
647-14 reimbursement for actual expenses incurred in attending to district
647-15 business if such service and expense are expressly approved by the
647-16 board.
647-17 Sec. 274.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
647-18 shall elect from among its members a president and a vice president
647-19 of the district and other officers the board considers necessary.
647-20 (b) The president is the chief executive officer of the
647-21 district and the presiding officer of the board and has the same
647-22 right to vote as any other director.
647-23 (c) The vice president shall perform all duties and exercise
647-24 all powers conferred by this chapter on the president when the
647-25 president is absent or fails or declines to act.
647-26 (d) The board shall appoint a secretary and a treasurer, who
648-1 may or may not be members of the board, and may combine those
648-2 offices. The treasurer shall give bond in an amount required by
648-3 the board, but in no event less than $25,000. The bond shall be
648-4 conditioned on the treasurer's faithfully accounting for all money
648-5 that comes into the treasurer's custody as treasurer of the
648-6 district. Until the district authorizes the issuance of bonds, the
648-7 amount of the official bond of the treasurer may be set by the
648-8 board in any amount not less than $5,000.
648-9 (e) The board shall appoint and employ all necessary
648-10 engineers, attorneys, and other employees.
648-11 (f) The board shall adopt a seal for the district.
648-12 Sec. 274.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
648-13 (a) Other territory in Delta, Hunt, Hopkins, and Franklin counties
648-14 may be annexed to the district as provided in this section.
648-15 (b) A petition for annexation must:
648-16 (1) be signed by 50 or a majority of the qualified
648-17 voters of the territory to be annexed who own taxable property in
648-18 the territory and who have duly rendered the property to the city,
648-19 if situated within a city or town, or county for taxation;
648-20 (2) be filed with the board; and
648-21 (3) describe the territory to be annexed by metes and
648-22 bounds or otherwise unless the territory is the same as that
648-23 contained in a city or town, in which event it shall be sufficient
648-24 to state that the territory to be annexed is that which is
648-25 contained within the city or town.
648-26 (c) If the board finds that the petition complies with and
649-1 is signed by the number of qualified persons required under
649-2 Subsection (b), that the annexation would be in the interest of the
649-3 territory to be annexed and the district, and that the district
649-4 will be able to supply water to the territory to be annexed, the
649-5 board shall adopt a resolution stating the conditions, if any,
649-6 under which the territory may be annexed to the district and
649-7 requesting the commission to annex the territory to the district.
649-8 A certified copy of the resolution and of the petition shall be
649-9 filed with the commission.
649-10 (d) The commission shall adopt a resolution declaring its
649-11 intention to call an election in the territory to be annexed for
649-12 the purpose of submitting the proposition of whether or not the
649-13 territory shall be annexed to the district. The commission shall
649-14 set a time and place for a hearing to be held by the commission on
649-15 the question of whether the territory to be annexed will be
649-16 benefited by the improvements, works, and facilities then owned or
649-17 operated or contemplated to be owned or operated by the district.
649-18 A railroad right-of-way that is not situated within the defined
649-19 limits of an incorporated city or town will not benefit from the
649-20 improvements, works, and facilities that the district is authorized
649-21 to construct. A railroad right-of-way may not be annexed to the
649-22 district unless the right-of-way is contained within the limits of
649-23 an incorporated city or town that has been annexed to the district.
649-24 (e) Notice of the adoption of the resolution stating the
649-25 time and place of the hearing and addressed to the citizens and
649-26 owners of property in the territory to be annexed shall be
650-1 published one time in a newspaper published within or having
650-2 general circulation within the territory, designated by the
650-3 commission, at least 10 days before the date of the hearing. The
650-4 notice must describe the territory to be annexed in the same manner
650-5 as required or permitted by the petition.
650-6 (f) All interested persons may appear at the hearing and
650-7 offer evidence for or against the intended annexation. The hearing
650-8 may proceed in the order and under the rules prescribed by the
650-9 commission, and the hearing may be recessed from time to time. If,
650-10 at the conclusion of the hearing, the commission finds that all of
650-11 the lands in the territory to be annexed will benefit from the
650-12 present or contemplated improvements, works, or facilities of the
650-13 district, the commission shall adopt a resolution calling an
650-14 election in the territory to be annexed stating the date and place
650-15 or places for holding the election and appointing a presiding judge
650-16 for each voting place, who shall appoint the necessary assistant
650-17 judges and clerks to assist in holding the election.
650-18 (g) Notice of the election, stating the date of the
650-19 election, the proposition to be voted on, and the conditions under
650-20 which the territory may be annexed, or making reference to the
650-21 resolution of the board for that purpose, and the place or places
650-22 for holding the election, shall be published one time in a
650-23 newspaper designated by the commission at least 10 days before the
650-24 date set for the election. If the newspaper carrying the notice is
650-25 not published within the territory to be annexed, additional notice
650-26 shall be given for the required period by posting copies of the
651-1 notice of election at three public places in the territory.
651-2 (h) Only qualified electors who reside in the territory to
651-3 be annexed may vote in the election. Returns of the election shall
651-4 be made to the commission.
651-5 (i) The commission shall canvass the returns of the election
651-6 and adopt a resolution declaring the results. If the resolution
651-7 shows that a majority of the votes cast are in favor of annexation,
651-8 the commission shall enter an order annexing the territory to the
651-9 district, and the annexation shall be incontestable except in the
651-10 manner and within the time for contesting elections under the
651-11 Election Code. A certified copy of the order shall be recorded in
651-12 the deed records of the county in which the territory is situated.
651-13 (j) The commission, in calling the election on the
651-14 proposition for annexation of territory, may include a proposition
651-15 for the assumption of the territory's part of the tax-supported
651-16 bonds of the district then outstanding and those voted but not yet
651-17 sold and for the levy of an ad valorem tax on taxable property in
651-18 the territory along with the tax in the remainder of the district
651-19 for the payment of the bonds.
651-20 (k) After territory is added to the district, the board may
651-21 call an election over the entire district for the purpose of
651-22 determining whether the district as enlarged shall assume the
651-23 tax-supported bonds, if any, then outstanding, and those voted but
651-24 not yet sold, and whether an ad valorem tax shall be levied on all
651-25 taxable property within the district as enlarged for the payment of
651-26 the bonds, unless the proposition is voted along with the
652-1 annexation election and becomes lawfully binding on the territory
652-2 annexed. The election shall be called and held in the same manner
652-3 as elections for the issuance of bonds as provided by this chapter.
652-4 (l) If no newspaper is published in the territory to be
652-5 annexed, the notices required by this section shall be posted in
652-6 three public places in the territory.
652-7 Sec. 274.008. APPOINTMENT OF DIRECTORS IN ANNEXED TERRITORY.
652-8 (a) When a city, the territory of which is annexed to the
652-9 district, has a population of 5,000 or more, the governing body of
652-10 the city shall appoint one director for a term ending the following
652-11 May 31 and one director for a term ending one year after the
652-12 following May 31. In May of each year the governing body of the
652-13 city shall appoint one director for a two-year term as provided by
652-14 this chapter for cities originally included in the district.
652-15 (b) When a city, the territory of which is annexed to the
652-16 district has a population of less than 5,000, the governing body of
652-17 the city shall appoint one director for a term ending the following
652-18 May 31. In that May and in May of each second year after that the
652-19 governing body of the city shall appoint one director for a
652-20 two-year term.
652-21 (c) If a city initially subject to Subsection (b) later has
652-22 a population of 5,000 or more, it shall be entitled to two
652-23 directors to be appointed as provided by Subsection (a).
652-24 Sec. 274.009. USE OF CERTAIN WATERS AND FACILITIES.
652-25 (a) The district may acquire:
652-26 (1) all rights to conservation storage and storage
653-1 capacity in the reservoir to be provided by Cooper Dam and
653-2 conservation storage as may result from an increase in the size of
653-3 such structure; and
653-4 (2) the right to take water from the reservoir
653-5 described by Subdivision (1) in which the dam will impound storm
653-6 waters and floodwaters and the unappropriated flow of the South
653-7 Sulphur River and its tributaries by complying with the applicable
653-8 provisions of this code and pursuant to any contracts that the
653-9 district may make with the United States government in reference to
653-10 those rights.
653-11 (b) The district may construct or otherwise acquire all
653-12 works, plants, and other facilities necessary or useful for the
653-13 purpose of diverting and further impounding or storing the water
653-14 described by Subsection (a) and processing and transporting it to
653-15 cities and others for municipal, domestic, and industrial purposes.
653-16 (c) To the extent permissible under any contract or
653-17 contracts with the United States government and its agencies under
653-18 this section, the district may dispose of surplus waters under its
653-19 control for irrigation purposes.
653-20 (d) As an aid to conserving the water in the district, the
653-21 district may construct and operate sewage disposal plants and
653-22 related facilities and may make contracts necessary to financing
653-23 the construction and operation of the plants and facilities with
653-24 any city included within the district.
653-25 (e) Any works for diverting water from the impounding dam
653-26 may not be constructed until the plans for the works are approved
654-1 by the commission.
654-2 (f) None of the powers granted by this section extend
654-3 outside of Delta County, Hunt County, Hopkins County, and Franklin
654-4 County.
654-5 Sec. 274.010. EMINENT DOMAIN. (a) For the purpose of
654-6 carrying out any power or authority conferred by this chapter the
654-7 district may acquire land and easements within and outside the
654-8 district in Delta County, Hunt County, Hopkins County, and Franklin
654-9 County, including land above the probable high-water line around
654-10 any impounding or diversion reservoir, by condemnation in the
654-11 manner provided by Chapter 21, Property Code.
654-12 (b) The district is a municipal corporation within the
654-13 meaning of Section 21.021(c), Property Code.
654-14 (c) Except as provided by Subsection (d), the amount and
654-15 character of interest in land and easements acquired under this
654-16 section shall be determined by the board.
654-17 (d) As against persons, firms, and corporations, or their
654-18 receivers or trustees, who have the power of eminent domain, the
654-19 district may condemn only an easement, and the fee title may not be
654-20 condemned.
654-21 (e) If the district, in the exercise of the power of eminent
654-22 domain or power of relocation or any other power granted under this
654-23 chapter, makes necessary the relocation, raising, rerouting,
654-24 changing the grade, or altering the construction of any highway,
654-25 railroad, electric transmission line, or pipeline, all such
654-26 necessary relocation, raising, rerouting, changing of grade, or
655-1 alteration of construction shall be accomplished at the sole
655-2 expense of the district.
655-3 Sec. 274.011. NOTICE REQUIRED FOR CERTAIN CONTRACTS. (a) A
655-4 construction contract requiring an expenditure of more than $5,000
655-5 may be made only after publication of a notice to bidders once each
655-6 week for two weeks before awarding the contract.
655-7 (b) The notice required by this section is sufficient if it
655-8 states the time and place the bids will be opened and the general
655-9 nature of the work to be done or the material, equipment, or
655-10 supplies to be purchased and states where and the terms on which
655-11 copies of the plans and specifications may be obtained. The
655-12 publication of the notice shall be in a newspaper published in the
655-13 district and designated by the board.
655-14 Sec. 274.012. BONDS. (a) For the purpose of providing a
655-15 source of water supply for cities and other users for municipal,
655-16 domestic, and industrial purposes, as authorized by this chapter,
655-17 or of providing sewage disposal plants and related facilities, or
655-18 for both such purposes, and for the purpose of carrying out any
655-19 other power or authority conferred by this chapter, the district
655-20 may issue negotiable bonds payable from the revenues or taxes, or
655-21 both revenues and taxes, of the district as pledged by resolution
655-22 of the board. Pending the issuance of definitive bonds, the board
655-23 may authorize the delivery of negotiable interim bonds or notes
655-24 that are eligible for exchange or substitution by the definitive
655-25 bonds.
655-26 (b) Bonds must be authorized by resolution of the board and
656-1 shall be issued in the name of the district, signed by the
656-2 president or vice president, attested by the secretary, and have
656-3 the seal of the district impressed on the bonds.
656-4 (c) Bonds must mature serially or otherwise in not to exceed
656-5 40 years and may be sold at a price and under terms determined by
656-6 the board to be the most advantageous reasonably obtainable,
656-7 provided that the interest cost to the district, calculated by use
656-8 of standard bond interest tables currently in use by insurance
656-9 companies and investment houses, does not exceed six percent per
656-10 year. Within the discretion of the board, bonds may be made
656-11 callable prior to maturity at times and prices prescribed in the
656-12 resolution authorizing the bonds and may be made registrable as to
656-13 principal or as to both principal and interest.
656-14 (d) Bonds may be issued in more than one series and from
656-15 time to time as required for carrying out the purposes of this
656-16 chapter.
656-17 (e) Bonds may be secured by a pledge of all or part of the
656-18 net revenues of the district, of the net revenues of one or more
656-19 contracts made before or after the bonds are issued, or of other
656-20 revenues specified by resolution of the board. A pledge may
656-21 reserve the right, under conditions specified in the pledge, to
656-22 issue additional bonds that will be on a parity with or subordinate
656-23 to the bonds being issued. In this subsection, "net revenues"
656-24 means the gross revenues of the district less the amount necessary
656-25 to pay the cost of maintaining and operating the district and its
656-26 properties. Within the sole discretion of the board, the bonds may
657-1 be secured by the combined revenues of the district's water
657-2 properties and sewage disposal facilities or may be secured by
657-3 revenues from either of those sources.
657-4 (f) For the purposes stated in Subsection (a), the district
657-5 may issue bonds payable from ad valorem taxes to be levied on all
657-6 taxable property in the district or may issue bonds secured by and
657-7 payable from both the taxes and the revenues of the district,
657-8 subject to the conditions prescribed in Sections 274.015(a)-(c).
657-9 If bonds are issued that are payable wholly or partially from ad
657-10 valorem taxes, the board shall levy a tax sufficient to pay the
657-11 bonds and the interest on the bonds as the bonds and interest
657-12 become due. The rate of the tax for any year may be set after
657-13 giving consideration to the money received from the pledged
657-14 revenues available for payment of principal and interest to the
657-15 extent and in the manner permitted by the resolution authorizing
657-16 the issuance of the bonds.
657-17 (g) If bonds payable wholly from revenues are issued, the
657-18 board shall set, and from time to time revise, rates of
657-19 compensation for water sold and services rendered by the district
657-20 that will be sufficient to pay the expense of operating and
657-21 maintaining the facilities of the district, to pay the bonds as
657-22 they mature and the interest as it accrues, and to maintain the
657-23 reserve fund and other funds as provided in the resolution
657-24 authorizing the bonds. If bonds payable partially from revenues
657-25 are issued, the board shall set, and from time to time revise,
657-26 rates of compensation for water sold and services rendered by the
658-1 district that will be sufficient to assure compliance with the
658-2 resolution authorizing the bonds.
658-3 (h) From the proceeds from the sale of the bonds, the
658-4 district may set aside an amount for the payment of interest
658-5 expected to accrue during construction and for a reserve interest
658-6 and sinking fund, and such provision may be made in the resolution
658-7 authorizing the bonds. Proceeds from the sale of the bonds may
658-8 also be used for the payment of all expenses necessarily incurred
658-9 in accomplishing the purpose for which the district is created,
658-10 including the expenses of issuing and selling the bonds and of
658-11 creating and organizing the district.
658-12 (i) The district may invest all or any part of the proceeds
658-13 of the bonds before and during the period of construction in
658-14 obligations of or in obligations unconditionally guaranteed by the
658-15 United States government.
658-16 (j) In the event of a default or a threatened default in the
658-17 payment of principal of or interest on bonds payable wholly or
658-18 partially from revenues, any court of competent jurisdiction may,
658-19 on petition of the holders of 25 percent of the outstanding bonds
658-20 of the issue in default or threatened with default, appoint a
658-21 receiver with authority to collect and receive all income of the
658-22 district except income from taxes, to employ and discharge agents
658-23 and employees of the district, to take charge of the district's
658-24 funds on hand (except funds received from taxes, unless
658-25 commingled), and to manage the proprietary affairs of the district
658-26 without consent or hindrance by the board. The receiver may also
659-1 be authorized to sell or make contracts for the sale of water or
659-2 renew the contracts with the approval of the court appointing the
659-3 receiver. The court may vest the receiver with other powers and
659-4 duties the court finds necessary for the protection of the holders
659-5 of the bonds.
659-6 Sec. 274.013. REFUNDING BONDS. (a) The district may issue
659-7 refunding bonds for the purpose of refunding any outstanding bonds
659-8 authorized by this chapter and interest on the bonds. The
659-9 refunding bonds may be issued to refund more than one series of
659-10 outstanding bonds and combine the pledges for the outstanding bonds
659-11 for the security of the refunding bonds, and the refunding bonds
659-12 may be secured by other or additional revenues.
659-13 (b) The provisions of this chapter with reference to the
659-14 issuance of other bonds by the district, the approval of the other
659-15 bonds by the attorney general, and the remedies of the holders are
659-16 applicable to refunding bonds. Refunding bonds shall be registered
659-17 by the comptroller on surrender and cancellation of the bonds to be
659-18 refunded, but in lieu of that process, the resolution authorizing
659-19 the issuance of the refunding bonds may provide that the bonds
659-20 shall be sold and the proceeds of the sale deposited in the bank
659-21 where the original bonds are payable, in which case the refunding
659-22 bonds may be issued in an amount sufficient to pay the interest on
659-23 the original bonds to their option date or maturity date, and the
659-24 comptroller shall register the refunding bonds without concurrent
659-25 surrender and cancellation of the original bonds.
659-26 Sec. 274.014. TRUST INDENTURE. Bonds, including refunding
660-1 bonds, authorized by this chapter that are not payable wholly from
660-2 ad valorem taxes may be additionally secured by a trust indenture
660-3 under which the trustee may be a bank with trust powers located
660-4 either within or outside the state. The bonds may, in the
660-5 discretion of the board, be additionally secured by a deed of trust
660-6 lien on physical properties of the district and all franchises,
660-7 easements, water rights and appropriation permits, leases, and
660-8 contracts and all rights appurtenant to the properties, vesting in
660-9 the trustee power to sell the properties for payment of the
660-10 indebtedness, power to operate the properties, and all other powers
660-11 and authority for the further security of the bonds.
660-12 (b) The trust indenture, regardless of the existence of a
660-13 deed of trust lien, may contain any provisions prescribed by the
660-14 board for the security of the bonds and the preservation of the
660-15 trust estate and may make provision for amendment or modification
660-16 of the trust indenture and the issuance of bonds to replace lost or
660-17 mutilated bonds.
660-18 (c) A purchaser under a sale under a deed of trust lien,
660-19 where one is given, shall be the owner of the properties,
660-20 facilities, and rights so purchased and shall have the right to
660-21 maintain and operate the properties, facilities, and rights.
660-22 Sec. 274.015. BOND ELECTIONS. (a) Bonds payable wholly or
660-23 partially from ad valorem taxes, except refunding bonds, may not be
660-24 issued unless authorized by an election at which only the qualified
660-25 voters who reside in the district may participate and a majority of
660-26 the votes cast at the election is in favor of the issuance of the
661-1 bonds.
661-2 (b) Before calling an election for the issuance of bonds
661-3 secured either wholly or partially by a pledge of ad valorem taxes,
661-4 the board shall publish, in the manner prescribed by this section,
661-5 a summary of the improvements to be financed with the proceeds of
661-6 bonds to be issued. If the district has not provided facilities
661-7 for delivering water to any city within the district and the
661-8 summary of improvements does not include provision for delivering
661-9 water to the city, the district shall publish in the city notice of
661-10 its intention, on a date specified in the notice, to call an
661-11 election involving the issuance of bonds, wholly or partly secured
661-12 by a pledge of ad valorem taxes. The notice must contain the
661-13 summary of the proposed improvements. The notice must be published
661-14 at least once in a newspaper published or having general
661-15 circulation in the city. The date of publication must be at least
661-16 14 days before the date on which the district intends to adopt a
661-17 resolution ordering the election. If no newspaper is published in
661-18 the city, notice shall be given by posting a copy of the notice of
661-19 intention at three public places in the city for at least 14 days
661-20 before the election is to be ordered. The district shall also mail
661-21 a copy of the notice to the mayor of the city at least 14 days
661-22 before the date on which the election is to be ordered. Before the
661-23 date of the election, the governing body of the city notified may
661-24 adopt a resolution stating that the district has not provided
661-25 facilities for delivering water to the city and does not propose to
661-26 provide the facilities necessary for that purpose with the proceeds
662-1 from the proposed tax-supported bonds on a reasonable cost basis;
662-2 stating that eliminating the city from the district for all
662-3 purposes is in the best interest for the people of the city; and
662-4 seeking withdrawal from the district. If, before the date
662-5 designated for the election, a certified copy of the resolution is
662-6 delivered to the district and to the commission, the district may
662-7 not proceed with the calling of an election until the commission
662-8 has acted finally on the request for withdrawal from the district.
662-9 (c) On receipt of a certified copy of a resolution from a
662-10 city requesting withdrawal from the district, the commission shall
662-11 set a date for a hearing on the request, giving written notice of
662-12 the hearing to the city and to the district. If at the hearing the
662-13 commission finds that no facilities have been provided to the city
662-14 and that none will be provided from proceeds of the proposed
662-15 tax-supported bond issue for the delivery of water to the city on a
662-16 reasonable cost basis, the commission shall enter an order
662-17 eliminating the city from the district. In lieu of a hearing the
662-18 district may file with the commission a consent to the elimination
662-19 of the territory. However, if the commission finds that the
662-20 facilities are available or will be provided from the proceeds of
662-21 the proposed bonds on a reasonable cost basis, the commission shall
662-22 enter an order denying the request for withdrawal. After the
662-23 commission enters the order, the district may order an election
662-24 with the city either eliminated or retained in the boundaries of
662-25 the district as prescribed in the order.
662-26 (d) An election for the issuance of bonds payable wholly or
663-1 partially from ad valorem taxes may be called by the board without
663-2 a petition. The resolution calling the election shall specify the
663-3 time and location of the election, the purpose for which the bonds
663-4 are to be issued, the maximum amount of the bonds, the maximum
663-5 maturity of the bonds, the form of the ballot, and the presiding
663-6 judge for each voting place. The presiding judge serving at each
663-7 voting place shall appoint one assistant judge and at least two
663-8 clerks to assist in holding the election. Notice of the election
663-9 shall be given by publishing a substantial copy of the resolution
663-10 in one newspaper published in each city contained in the district
663-11 for two consecutive weeks. The first publication must be at least
663-12 21 days prior to the election. If no newspaper is published in a
663-13 city, notice shall be given by posting a copy of the resolution in
663-14 three public places.
663-15 (e) The returns of the election shall be made to and
663-16 canvassed by the board.
663-17 (f) The general laws relating to elections apply to
663-18 elections held under this section except as otherwise provided by
663-19 this chapter.
663-20 (g) Bonds not payable wholly or partially from ad valorem
663-21 taxes may be issued without an election.
663-22 Sec. 274.016. APPROVAL AND REGISTRATION OF BONDS. After any
663-23 bonds, including refunding bonds, are authorized by the district,
663-24 the bonds and the record relating to their issuance shall be
663-25 submitted to the attorney general for examination as to the
663-26 validity of the bonds. If the bonds recite that they are secured
664-1 by a pledge of the proceeds of a contract previously made between
664-2 the district and a city or other governmental agency or district, a
664-3 copy of the contract and the proceedings of the city or other
664-4 governmental agency or district authorizing the contract shall also
664-5 be submitted to the attorney general. If the bonds have been
664-6 authorized and the contracts have been made in accordance with the
664-7 constitution and laws of the state, the attorney general shall
664-8 approve the bonds, and the contracts and the bonds shall then be
664-9 registered by the comptroller. After the approval and
664-10 registration, the bonds and the contracts, if any, are valid and
664-11 binding and are incontestable for any cause.
664-12 Sec. 274.017. WATER SUPPLY CONTRACTS. The district may
664-13 contract with cities and others for the purpose of supplying water
664-14 to them. The district may also contract with a city for the rental
664-15 or leasing of, or for the operation of, the water production, water
664-16 supply, or water filtration or purification and the water supply
664-17 facilities of the city for such consideration as the district and
664-18 the city may agree. The contract may be on the terms and for the
664-19 time as the parties may agree, and the contract may provide that it
664-20 shall continue in effect until bonds specified in the contract and
664-21 refunding bonds issued in lieu of the bonds are paid.
664-22 Sec. 274.018. DISTRICT DEPOSITORY. (a) The board shall
664-23 designate one or more banks within the district to serve as
664-24 depository or depositories for the funds of the district. All
664-25 funds of the district shall be deposited in the depository bank or
664-26 banks, except that funds pledged to pay bonds may be deposited with
665-1 the trustee bank named in the trust agreement and except that funds
665-2 shall be remitted to the bank of payment for the payment of
665-3 principal of and interest on bonds. To the extent that funds in
665-4 the depository banks and the trustee bank are not insured by the
665-5 Federal Deposit Insurance Corporation, the funds shall be secured
665-6 in the manner provided by law for the security of county funds, or
665-7 the resolution or trust agreement, or both, securing the bonds may
665-8 require that all such funds be secured by obligations of or
665-9 obligations unconditionally guaranteed by the United States
665-10 government.
665-11 (b) Before designating a depository bank or banks, the board
665-12 shall issue a notice stating the time and place the board will meet
665-13 for such purpose and inviting the banks in the district to submit
665-14 applications to be designated depositories. The notice must be
665-15 published one time in a newspaper or newspapers published in the
665-16 district and specified by the board.
665-17 (c) At the time stated in the notice of the meeting, the
665-18 board shall consider the applications and the management and
665-19 condition of the banks filing the applications and shall designate
665-20 as depositories the bank or banks that offer the most favorable
665-21 terms and conditions for the handling of the funds of the district
665-22 and that the board finds have proper management and are in
665-23 condition to warrant handling of district funds. Membership on the
665-24 board of an officer or director of a bank shall not disqualify the
665-25 bank from being designated as depository.
665-26 (d) If no applications are received by the time stated in
666-1 the notice of the meeting, the board shall designate a bank or
666-2 banks within or outside the district on the terms and conditions
666-3 the board determines advantageous to the district.
666-4 (e) The term of service for depositories shall be prescribed
666-5 by the board.
666-6 Sec. 274.019. WATER APPROPRIATION PERMITS; WATER SUPPLY
666-7 CONTRACTS. The district may acquire water appropriation permits
666-8 directly from the commission or from owners of permits. The
666-9 district may also purchase water or a water supply from any person,
666-10 firm, corporation, or public agency or from the United States
666-11 government or any of its agencies. The district may, within the
666-12 discretion of its board, contract with one or more large users of
666-13 water to acquire a water supply on an agreed allocation of storage
666-14 space between the district and the user, or the district may
666-15 contract independently for the district's water supply.
666-16 Sec. 274.020. BONDS ELIGIBLE FOR INVESTMENT AND SECURITY OF
666-17 DEPOSITS. (a) All bonds of the district are legal and authorized
666-18 investments for banks, savings banks, trust companies, building and
666-19 loan associations, savings and loan associations, insurance
666-20 companies, fiduciaries, trustees, and guardians and for the sinking
666-21 funds of cities, towns, villages, counties, school districts, or
666-22 other political corporations or subdivisions of the state.
666-23 (b) District bonds are eligible to secure the deposit of all
666-24 public funds of the state and of cities, towns, villages, counties,
666-25 school districts, or other political corporations or subdivisions
666-26 of the state. The bonds shall be lawful and sufficient security
667-1 for such deposits to the extent of the value of the bonds when
667-2 accompanied by all unmatured coupons.
667-3 Sec. 274.021. EXEMPTION FROM TAXATION. The accomplishment
667-4 of the purposes stated in this chapter are for the benefit of the
667-5 people of this state and for the improvement of the properties and
667-6 industries of the state, and the district in carrying out the
667-7 purposes of this chapter will be performing an essential public
667-8 function under the constitution and shall not be required to pay a
667-9 tax or assessment on a project or any part of a project under this
667-10 chapter. The bonds issued under this chapter and the transfer of
667-11 and income from the bonds, including the profits made on the sale
667-12 of the bonds, are free from taxation within the state.
667-13 Sec. 274.022. ASSESSMENT, EQUALIZATION, LEVYING, AND
667-14 COLLECTION OF TAXES. (a) The tax rolls of the cities situated
667-15 within the district, and within territory later annexed, are
667-16 adopted and shall constitute the tax rolls of the district until
667-17 assessments and tax rolls are made by the district.
667-18 (b) Before the sale and delivery of district bonds that are
667-19 payable wholly or partially from ad valorem taxes, the board shall
667-20 appoint a tax assessor and collector and a board of equalization
667-21 and cause taxes to be assessed, valuations to be equalized, and tax
667-22 rolls to be prepared. General laws applicable to water control and
667-23 improvement districts with reference to tax assessors and
667-24 collectors, boards of equalization, tax rolls, and the levy and
667-25 collection of taxes and delinquent taxes are applicable to the
667-26 district, except that the board of equalization, which is to be
668-1 appointed each year by the board, shall consist of one member
668-2 residing in each city contained in the district.
668-3 Sec. 274.023. DISTRICT RULES AND REGULATIONS. (a) The
668-4 board may adopt and promulgate all reasonable rules and regulations
668-5 to secure, maintain, and preserve the sanitary condition of all
668-6 water in and to flow into any reservoir owned by the district, or
668-7 which the district may control by contract or otherwise, to prevent
668-8 the waste or the unauthorized use of the water, and to regulate
668-9 residence, hunting, fishing, boating, camping, and all recreational
668-10 and business privileges, along or around any reservoir or any body
668-11 of land or easement owned or controlled by the district. The
668-12 district shall have the same power to enforce the rules and
668-13 regulations as is accorded by law to water control and improvement
668-14 districts, except that the rules and regulations shall be enforced
668-15 by duly constituted peace officers.
668-16 Sec. 274.024. DISTRICT MAP. The board shall file a map and
668-17 plat of the district, clearly showing the boundaries and limits,
668-18 with each of the following offices: two copies with the Texas
668-19 Water Development Board, one copy with the secretary of state, and
668-20 one copy with the county clerk of each county in which any portion
668-21 of the district is located.
668-22 CHAPTER 275. TRINITY RIVER AUTHORITY OF TEXAS
668-23 Sec. 275.001. CREATION. (a) A conservation and reclamation
668-24 district to be known as the "Trinity River Authority of Texas" is
668-25 created. The authority is a governmental agency and a body politic
668-26 and corporate.
669-1 (b) The authority is created under and is essential to
669-2 accomplish the purposes of Section 59, Article XVI, Texas
669-3 Constitution.
669-4 Sec. 275.002. DEFINITIONS. In this chapter:
669-5 (1) "Authority" means the Trinity River Authority of
669-6 Texas.
669-7 (2) "Board" means the board of directors of the
669-8 authority.
669-9 (3) "Director" means a member of the board.
669-10 (4) "Person" means:
669-11 (A) an individual, partnership, corporation,
669-12 public utility, or other private entity; and
669-13 (B) a public agency.
669-14 (5) "Public agency" means an authority, district,
669-15 city, town, other political subdivision, joint board, or other
669-16 public agency created and operating under the laws of this state.
669-17 Sec. 275.003. BOUNDARIES. (a) The authority includes the
669-18 territory described by Section 2, Chapter 518, Acts of the 54th
669-19 Legislature, Regular Session, 1955.
669-20 (b) The area of the authority shall also include the Maria
669-21 G. Castro League in Trinity County, which includes the area of the
669-22 city of Groveton.
669-23 (c) It is found and determined that all the land included in
669-24 the authority will benefit from the exercise of the powers
669-25 conferred by this chapter. No provision of this chapter is
669-26 intended to or shall be applicable outside the area specifically
670-1 included in this section, notwithstanding anything in this chapter
670-2 to the contrary.
670-3 Sec. 275.004. BOARD OF DIRECTORS. (a) All powers of the
670-4 authority shall be exercised by a board of directors.
670-5 (b) The board shall consist of 24 directors to be appointed
670-6 by the governor with the advice and consent of the senate. When
670-7 the legislature is in session, an appointment shall not become
670-8 effective until it is approved by the senate.
670-9 (c) For the purposes of the appointment of directors the
670-10 authority is divided into 18 areas, numbered 1 to 18, both
670-11 inclusive, respectively containing the county as follows:
670-12 Area 1. Tarrant
670-13 Area 2. Dallas
670-14 Area 3. Kaufman
670-15 Area 4. Henderson
670-16 Area 5. Ellis
670-17 Area 6. Navarro
670-18 Area 7. Anderson
670-19 Area 8. Freestone
670-20 Area 9. Leon
670-21 Area 10. Houston
670-22 Area 11. Trinity
670-23 Area 12. Madison
670-24 Area 13. Walker
670-25 Area 14. San Jacinto
670-26 Area 15. Polk
671-1 Area 16. Liberty
671-2 Area 17. Chambers
671-3 Area 18. All the territory contained within the above named
671-4 17 areas and 17 counties, which shall be known as "the
671-5 area-at-large."
671-6 (d) The board shall include three directors from Tarrant
671-7 County, four directors from Dallas County, and two directors from
671-8 the area-at-large. One director shall be appointed from each of
671-9 the other areas named in Subsection (c).
671-10 (e) Each director serves for a term of six years and until a
671-11 successor is appointed and has qualified. The terms of the
671-12 directors expire on the 15th day of March of the year in which
671-13 their respective terms terminate under the provisions of this
671-14 chapter.
671-15 (f) The board may appoint an executive committee to perform
671-16 the functions of the board between meetings, except as its powers
671-17 may be restricted in the action setting up the committee.
671-18 (g) A director must reside and own taxable property within
671-19 the area from which the director is appointed. An officer or
671-20 employee of a county or city shall not be eligible to serve as a
671-21 director.
671-22 (h) Each director shall subscribe the constitutional oath
671-23 and shall give bond in the amount of $5,000, the cost of which
671-24 shall be paid by the authority.
671-25 (i) If a director moves out of the area from which the
671-26 director is appointed, the governor shall promptly appoint a
672-1 successor to the director's position.
672-2 Sec. 275.005. DIRECTOR FEES. A director is entitled to
672-3 receive fees of office and reimbursement expenses as provided by
672-4 Section 49.060.
672-5 Sec. 275.006. OFFICERS. (a) The board shall elect from
672-6 among its members a president and a vice president of the authority
672-7 and other officers that the board considers necessary.
672-8 (b) The president is the presiding officer of the board and
672-9 the chief officer of the authority and has the same right to vote
672-10 as any other director.
672-11 (c) The vice president shall perform all duties and exercise
672-12 all powers conferred by this chapter on the president when the
672-13 president is absent or fails, is unable, or declines to act.
672-14 (d) The board shall appoint a secretary and a treasurer who
672-15 shall not be members of the board. Within the discretion of the
672-16 board the offices of secretary and treasurer may be held by one
672-17 person, whose title shall be secretary-treasurer. The treasurer
672-18 shall give bond in an amount prescribed by the board.
672-19 (e) The board may appoint a general manager and all
672-20 necessary engineers, attorneys, and other employees as provided by
672-21 general law.
672-22 Sec. 275.007. GENERAL POWERS AND DUTIES. (a) The authority
672-23 shall have all the powers of the state under Section 59, Article
672-24 XVI, Texas Constitution, to effectuate flood control and the
672-25 conservation and use, for all beneficial purposes, of storm waters
672-26 and floodwaters and unappropriated flow waters in the Trinity River
673-1 watershed, subject only to:
673-2 (1) declarations of policy by the legislature as to
673-3 use of water;
673-4 (2) continuing supervision and control by the
673-5 commission;
673-6 (3) the provisions of Section 11.024, prescribing the
673-7 priorities of uses for water; and
673-8 (4) the water rights legally acquired at any time by
673-9 municipalities and other users.
673-10 (b) The authority shall have all the powers of the state
673-11 under Section 59, Article XVI, Texas Constitution, to encourage,
673-12 promote, and provide for the navigation of inland and coastal
673-13 waters within the Trinity River watershed, including the power to
673-14 cooperate with the Chambers-Liberty Counties Navigation District in
673-15 the development and construction of navigation canals and
673-16 facilities or harbor and terminal facilities within the boundaries
673-17 of the Chambers-Liberty Counties Navigation District.
673-18 (c) The authority shall exercise the powers described by
673-19 this section, to the greatest extent practical, for the
673-20 conservation and beneficial use of storm waters, floodwaters, and
673-21 unappropriated flow waters of the Trinity River watershed in the
673-22 manner and for the particular purposes specified in this section
673-23 and in this chapter, including the power:
673-24 (1) to store and conserve such waters in order to
673-25 prevent the escape of any water without the maximum beneficial use
673-26 either within or outside the authority;
674-1 (2) to provide for the conservation of water for uses
674-2 within and outside the watershed, including providing a water
674-3 supply for cities and towns, and the right to sell water and
674-4 standby service to any person, firm, or corporation, including
674-5 cities and towns and other public agencies, within and outside the
674-6 watershed; provided, however, that the purchasers of conservation
674-7 storage water for domestic, industrial, or irrigation uses shall
674-8 not be required to pay any part of the cost of benefits accruing
674-9 for flood control purposes;
674-10 (3) to provide for the conservation of soils and other
674-11 surface resources against destructive erosion and prevent the
674-12 increased flood dangers caused by destructive erosion;
674-13 (4) to provide for the prevention of sedimentation and
674-14 siltation of lands, channels, reservoirs, and coastal waters,
674-15 including aiding and supplementing the work of upstream soil and
674-16 water conservation and flood prevention projects authorized by
674-17 state or federal agencies in conjunction with soil conservation
674-18 districts, in furtherance of the master plan as described in
674-19 Section 275.028;
674-20 (5) to provide water for the irrigation of lands
674-21 within and outside the watershed;
674-22 (6) to provide water for the development of commercial
674-23 and industrial enterprises, within and outside the watershed;
674-24 (7) to execute contracts with municipalities and
674-25 others involving the construction of reservoirs, dams, water supply
674-26 lines, water purification and pumping facilities, and the
675-1 furnishing of water supply service substantially in the manner
675-2 prescribed by Section 402.020, Local Government Code, for districts
675-3 organized and created pursuant to Section 59, Article XVI, Texas
675-4 Constitution, extended to permit such contracts with individuals,
675-5 partnerships, and all classes of corporations and to permit the
675-6 inclusion in the authorized contracts of provisions for operation
675-7 and ownership of such properties;
675-8 (8) to bring water into the boundaries of the
675-9 authority for beneficial uses when the authority considers it
675-10 necessary for the interest of conservation, and subject to the
675-11 approval of the commission;
675-12 (9) to provide for the encouragement and development
675-13 of recreational facilities and the preservation of fish and
675-14 wildlife;
675-15 (10) to acquire, purchase, take over, construct,
675-16 maintain, operate, develop, and regulate canals, locks, wharves,
675-17 docks, warehouses, grain elevators, bunkering facilities, belt
675-18 railroads, floating plants, lighterage, lands, towing facilities,
675-19 and all other facilities or aids incident to or necessary to the
675-20 operation or development of ports or waterways within the Trinity
675-21 River watershed and extending to the Gulf of Mexico;
675-22 (11) to adopt through action of the board any powers
675-23 permitted under this code;
675-24 (12) to construct, own, and operate sewage-gathering,
675-25 transmission, and disposal services, charge for the services, and
675-26 enter into contracts for the services with municipalities and
676-1 others as necessary to aid in the conservation, control,
676-2 preservation, and distribution of water for beneficial use; and
676-3 (13) to adopt all reasonable rules and regulations
676-4 designed to facilitate the exercise of the rights and the
676-5 performance of the duties of the authority and adopt and amend the
676-6 bylaws of the authority.
676-7 (d) For the purposes of operating or developing ports or
676-8 waterways under Subsection (c)(10), the authority may issue bonds
676-9 as provided by this chapter. The authority may borrow funds for
676-10 current expenses and evidence the same by negotiable notes or
676-11 warrants payable not later than the close of any calendar year for
676-12 which the loans are made.
676-13 (e) Any actions under Subsection (c)(10) within the
676-14 boundaries of the Chambers-Liberty Counties Navigation District may
676-15 be conducted in cooperation with that district.
676-16 Sec. 275.008. POWERS RELATING TO RECREATIONAL FACILITIES.
676-17 (a) The board shall acquire sufficient additional land adjoining
676-18 any lakes constructed on the Trinity River for the purpose of
676-19 developing recreational facilities under Section 275.007(c)(9) and
676-20 for acquiring roads for ingress and egress of the public to the
676-21 lakes.
676-22 (b) The board shall use its discretion in determining the
676-23 amount of the additional land required for suitable recreational
676-24 parks but shall secure approximately 20 percent of the adjoining
676-25 lakefront, such 20 percent being intended merely as a guide and not
676-26 as a maximum or minimum limitation.
677-1 (c) The board may charge and collect entrance or gate fees
677-2 to all the authority's developed park sites and recreational areas
677-3 and may charge and collect fees for the use of facilities and for
677-4 services rendered at or on the developed park sites and
677-5 recreational areas.
677-6 (d) The authority shall arrange for the public to have
677-7 adequate free access to each lake owned by the authority.
677-8 (e) The authority may negotiate contracts with any county,
677-9 municipality, municipal corporation, person, firm, corporation,
677-10 nonprofit organization, or state or federal agency for the
677-11 acquisition, establishment, operation, or maintenance of a park
677-12 site or recreational area.
677-13 Sec. 275.009. MUNICIPAL CONTRACTS. (a) In this section,
677-14 "sewage disposal services" includes sewage transportation,
677-15 treatment, and disposal.
677-16 (b) A municipality that is located in whole or in part
677-17 inside the boundaries of the authority or located in whole or in
677-18 part in the watershed of the Trinity River may, by ordinance,
677-19 contract with the authority for the authority to provide the
677-20 municipality with sewage disposal services. The contract may
677-21 contain a provision for standby service. The contract may be made
677-22 on terms and for a duration agreeable to the parties and may
677-23 provide that it will continue in effect as long as specified bonds
677-24 of the authority, including refunding bonds, remain unpaid. The
677-25 municipality is entitled to the continued performance of services
677-26 covered by the contract after amortization of the authority's
678-1 investment in facilities during the useful life of the facilities,
678-2 on payment of charges reduced to take the amortization into
678-3 account.
678-4 (c) Except as provided by Subsection (d), revenue received
678-5 by the authority from a municipality under a contract made under
678-6 this section may be used only for:
678-7 (1) payment of principal of and interest on, and
678-8 providing reserves for, bonds issued by the authority to finance
678-9 facilities for sewage disposal services; and
678-10 (2) operation and maintenance expenses related to the
678-11 contract, including legal, administrative, and management
678-12 supervision fees and expenses.
678-13 (d) The authority and a municipality may provide in a
678-14 contract made under this section that a designated part of any
678-15 surplus revenue accumulated for the benefit of the municipality may
678-16 be spent by the authority to enlarge or improve facilities of the
678-17 authority used especially to serve that municipality.
678-18 (e) The authority becomes owner of sewage accepted by it for
678-19 transportation and treatment and is solely responsible for the
678-20 proper treatment and disposal of the sewage and the effluent. A
678-21 contracting municipality is immune from liability for any improper
678-22 treatment or disposal of the sewage or effluent. A municipality is
678-23 not entitled to credit of any type, either in the exchange of
678-24 water, money, or other consideration, for any effluent delivered to
678-25 the authority. Such an exchange or sale may not be made a
678-26 condition to any contract under this section.
679-1 (f) Payments by a municipality under a contract made under
679-2 this section shall be made from revenues of the municipality's
679-3 water system, sanitary sewer system, or both of those systems, or
679-4 of the municipality's combined water and sanitary sewer system, as
679-5 specified in the contract. Those payments are an operating expense
679-6 of the system whose revenues are pledged under the contract.
679-7 Except as provided by Subsection (h), neither the authority nor a
679-8 holder of bonds of the authority may demand payment of the
679-9 municipality's obligations out of funds raised or to be raised by
679-10 taxation.
679-11 (g) If at the time it executes a contract under this section
679-12 a municipality has outstanding revenue bonds secured by a pledge of
679-13 the net revenue from a combined water and sanitary sewer system
679-14 plus the net revenue from the municipality's gas distribution or
679-15 electric power system, that portion of the payments made by the
679-16 municipality to the authority and used by the authority for debt
679-17 service on bonds of the authority may be treated by the
679-18 municipality for its accounting purposes as a capital expenditure
679-19 if:
679-20 (1) revenue from the municipality's gas or electric
679-21 system, as the case may be, is adequate to satisfy the requirements
679-22 of the ordinance or ordinances authorizing the outstanding revenue
679-23 bonds and similarly secured bonds that may later be authorized,
679-24 regarding the provision of funds for operation, maintenance, and
679-25 debt service; and
679-26 (2) revenue from the municipality's sanitary sewer
680-1 system and, if encumbered under the contract, from the
680-2 municipality's water system, are sufficient to meet the
680-3 requirements of the contract with the authority.
680-4 (h) A municipality may pledge its taxing power in a contract
680-5 made under this section if a majority of the qualified voters of
680-6 the municipality who vote on the question at an election vote in
680-7 favor of the proposed contract and the levy of property taxes to
680-8 pay the municipality's obligations to the authority under the
680-9 contract. The election shall be conducted in substantially the
680-10 same manner as a municipal bond election held under Subtitles A and
680-11 C, Title 9, Government Code. If the voters approve the contract
680-12 and tax levy:
680-13 (1) the municipal governing body shall enact an
680-14 ordinance prescribing the form and substance of the contract and
680-15 directing the proper officers of the municipality to sign it; and
680-16 (2) once the contract has been executed, the
680-17 municipality's obligations to the authority under the contract are
680-18 an obligation of the municipality's taxing power, but may be paid
680-19 as provided by the contract, from taxes and revenues from which
680-20 payments are required by Subsection (f).
680-21 (i) A municipality that has executed a contract under this
680-22 section that is payable in whole or in part from revenue of the
680-23 municipality's water or sewer system, or both of those systems, or
680-24 the municipality's or combined water and sewer system shall set and
680-25 periodically adjust rates charged to users so that at all times
680-26 that revenue is sufficient to pay:
681-1 (1) the expenses of operating and maintaining the
681-2 system in accordance with current standards and requirements for
681-3 preventing stream pollution;
681-4 (2) obligations of the municipality under the
681-5 contract; and
681-6 (3) all obligations of the municipality relating to
681-7 revenue bonds issued for the system before or after execution of
681-8 the contract under this section.
681-9 (j) A contract under this section may require the use of
681-10 consulting engineers and financial experts to advise the
681-11 municipality as to when service rates are to be adjusted.
681-12 (k) The authority may render services concurrently to more
681-13 than one municipality through construction and operation of a plant
681-14 serving multiple municipalities, with the cost for the services to
681-15 be allocated among the participating municipalities as provided by
681-16 one or more contracts made under this section. All the
681-17 compensation to be received by and all the security pledged to the
681-18 authority by all municipalities is available to the authority to
681-19 secure bonds issued to provide necessary construction funds. A
681-20 contract used by the authority to secure bonds to finance its plant
681-21 and facilities must be submitted by the authority to the attorney
681-22 general for examination. If the attorney general approves the
681-23 contract and bonds, the contract is incontestable.
681-24 Sec. 275.010. FLOOD CONTROL. (a) In addition to all other
681-25 powers explicitly or impliedly granted by this chapter, the
681-26 authority may:
682-1 (1) cooperate with the commission and the United
682-2 States Army Corps of Engineers to carry out the purposes of this
682-3 chapter and Subchapter Q, Chapter 51;
682-4 (2) develop and implement procedures to exercise
682-5 emergency prerelease programs on Lake Livingston when flooding is
682-6 imminent; and
682-7 (3) establish programs for reservoirs in the Trinity
682-8 River Basin that do not have flood control structures, with the
682-9 approval of the commission and after notice and public hearing.
682-10 (b) The authority and other reservoir owners shall be immune
682-11 from any liability for damages resulting from the implementation of
682-12 a prerelease program.
682-13 (c) The commission shall review and approve the prerelease
682-14 procedures to determine the reasonableness of the procedures.
682-15 Sec. 275.011. REGULATIONS. (a) The board may adopt and
682-16 promulgate all reasonable regulations to regulate residence,
682-17 hunting, fishing, boating, camping, and all recreational and
682-18 business privileges on all lands and easements owned by the
682-19 authority and to protect the property of the authority.
682-20 (b) The regulations shall not include any provisions for the
682-21 collection of fees or the requirement of permits or licenses for
682-22 boat inspections, noncommercial fishing, the use of boats operated
682-23 for noncommercial purposes on lakes owned by the authority, and
682-24 hunting, except for the use of duck blinds constructed, operated,
682-25 and maintained by the authority.
682-26 Sec. 275.012. CONTRACTS FOR CONSTRUCTION AND OPERATION OF
683-1 FACILITIES. (a) The board may enter into contracts with
683-2 responsible persons for the construction and operation of a
683-3 facility on the authority's property, setting reasonable
683-4 compensation for service by the facility, and requiring adequate
683-5 bond from the contracting person, association, or corporation,
683-6 payable to the authority and of such amount and condition as the
683-7 board in its discretion considers appropriate.
683-8 (b) A contract under this section may provide for forfeiture
683-9 of the particular franchise in case of a failure of the licensee to
683-10 render adequate public service.
683-11 Sec. 275.013. PENALTIES FOR VIOLATION OF RULES OR
683-12 REGULATIONS. (a) For the breach of any authority rule or
683-13 regulation, the authority may prescribe reasonable penalties that
683-14 shall not exceed fines of more than $200 or imprisonment for more
683-15 than 30 days, or both fine and imprisonment.
683-16 (b) The penalties authorized by this section shall be in
683-17 addition to any other penalties provided by the laws of this state
683-18 and may be enforced by complaints filed in the appropriate court of
683-19 jurisdiction in the county in which the violation occurred.
683-20 Sec. 275.014. NOTICE OF RULES AND REGULATIONS. (a) Before
683-21 a rule or regulation providing for a penalty may take effect, a
683-22 substantive statement of the rule or regulation and the penalty
683-23 must be published once a week for two consecutive weeks in the
683-24 authority.
683-25 (b) The statement must be as condensed as possible so that
683-26 the act forbidden by the rule or regulation can be easily
684-1 understood.
684-2 (c) Any number of rules or regulations may be included in
684-3 one notice.
684-4 (d) The notice must advise that violation of a rule or
684-5 regulation will subject the violator to a penalty and that the full
684-6 text of the rule or regulation sought to be enforced is on file in
684-7 the principal office of the authority, where it may be read by any
684-8 interested person.
684-9 (e) Five days after the second publication of the notice,
684-10 the published rule or regulation shall be in effect and ignorance
684-11 of the rule or regulation shall not constitute a defense to a
684-12 prosecution for the enforcement of the penalty.
684-13 Sec. 275.015. EFFECT OF RULES AND REGULATIONS. After the
684-14 required publication, rules and regulations adopted by the
684-15 authority shall be recognized by the courts as if they were penal
684-16 ordinances of a city.
684-17 Sec. 275.016. POLICE POWERS. (a) The authority may employ
684-18 and constitute its own law enforcement officers.
684-19 (b) A law enforcement officer of the authority or of any
684-20 other governmental entity may make arrests when necessary to
684-21 prevent or abate the commission of an offense against the
684-22 regulations of the authority, and against the laws of this state,
684-23 when the offense or threatened offense occurs on any land, water,
684-24 or easement owned or controlled by the authority.
684-25 Sec. 275.017. ADDITIONAL POWERS AND DUTIES. (a) The
684-26 authority is a district and a river authority as defined in Chapter
685-1 30. All the provisions of Chapter 30 are applicable to the
685-2 authority, except to the extent of any conflict with this chapter,
685-3 in which case this chapter prevails.
685-4 (b) The authority and all persons may enter into contracts
685-5 with each other in any manner and on terms that the parties may
685-6 agree with respect to any power, function, facility, or service of
685-7 the authority. All public agencies are authorized to use and
685-8 pledge any available revenues for and in the payment of amounts due
685-9 under the contracts as an additional or the sole source of payment
685-10 of the contracts and may covenant with respect to available
685-11 revenues to assure the availability of the revenues when required.
685-12 The term "revenues" as used in this subsection does not mean or
685-13 include revenues from ad valorem taxes levied and collected by a
685-14 public agency or the proceeds from the sale or refunding of bonds
685-15 of a public agency that are to be wholly or partially paid from ad
685-16 valorem taxes levied and collected by the public agency unless the
685-17 use or pledge of the tax revenues or bond proceeds is approved by
685-18 the qualified voters of the public agency at an election called for
685-19 the purpose of levying taxes or issuing or refunding bonds or both
685-20 for the purpose of using or pledging their revenues or proceeds
685-21 under contracts entered into under this section.
685-22 (c) A public agency may set, charge, and collect fees,
685-23 rates, charges, rentals, and other amounts for any service or
685-24 facility provided by a utility operated by the agency or provided
685-25 pursuant to or in connection with a contract with the authority
685-26 from its inhabitants or from any users or beneficiaries of the
686-1 utility, service, or facility including:
686-2 (1) water charges;
686-3 (2) sewage charges;
686-4 (3) solid waste disposal system fees and charges,
686-5 including garbage collection or handling fees; and
686-6 (4) other fees or charges.
686-7 (d) A public agency may use and pledge the fees, rates,
686-8 charges, rentals, and other amounts authorized by Subsection (c) to
686-9 make payments to the authority required under a contract with the
686-10 authority and may covenant to do so in amounts sufficient to make
686-11 all or any part of the payments to the authority when due. If the
686-12 parties agree in the contract, the payments shall constitute an
686-13 expense of operation of any facility or utility operated by the
686-14 public agency.
686-15 (e) The authority, acting through the board, may undertake
686-16 and carry out any activities and may acquire, purchase, construct,
686-17 own, operate, maintain, repair, improve, or extend and may lease or
686-18 sell on terms and conditions, including rentals or sale prices, on
686-19 which the parties may agree all works, improvements, facilities,
686-20 plants, buildings, structures, equipment, and appliances and all
686-21 real and personal property, or any interest in related real or
686-22 personal property, that are incident to or necessary in carrying
686-23 out or performing any power or function of the authority under this
686-24 section.
686-25 (f) The authority may issue bonds with respect to the
686-26 acquisition, purchase, construction, maintenance, repair,
687-1 improvement, and extension of works, improvements, facilities,
687-2 plants, buildings, structures, appliances, and property for the
687-3 purpose of exercising any of its powers and functions under this
687-4 section in the manner provided in Section 275.022.
687-5 (g) The authority may issue revenue bonds to pay for the
687-6 costs of feasibility studies for proposed projects of the
687-7 authority, including engineering, planning and design, and
687-8 environmental studies. The authority may include in any revenue
687-9 bond issue the funds to operate and maintain, for a period not to
687-10 exceed two years after completion, the facilities acquired or
687-11 constructed through the revenue bond issue.
687-12 (h) If bonds issued by the authority recite that they are
687-13 secured by a pledge of payments under a contract, a copy of the
687-14 contract and the proceedings relating to the contract shall be
687-15 submitted to the attorney general along with the bonds, which must
687-16 be submitted under Section 275.022(l). If the attorney general
687-17 finds that the bonds have been authorized and the contract has been
687-18 made and entered into in accordance with law, the attorney general
687-19 shall approve the bonds and the contract, which are then
687-20 incontestable in any court or other forum for any reason and are
687-21 valid and binding in accordance with their terms and provisions for
687-22 all purposes.
687-23 (i) The provisions of Chapter 1204, Government Code, and
687-24 Chapter 618, Government Code, as added by Chapter 227, Acts of the
687-25 76th Legislature, Regular Session, 1999, are applicable to bonds
687-26 issued by the authority, notwithstanding any provision of this
688-1 chapter to the contrary.
688-2 (j) This section is wholly sufficient authority for the
688-3 issuance of bonds, the execution of contracts, and the performance
688-4 of the other acts and procedures authorized by this section by the
688-5 authority and all persons, including public agencies, without
688-6 reference to any other provisions of law or any restriction or
688-7 limitation contained in any other law, except as provided by this
688-8 section. To the extent of any conflict or inconsistency between a
688-9 provision of this subsection and any other provision of law,
688-10 including a home-rule city charter, this subsection prevails and
688-11 controls. The authority and all persons, including public
688-12 agencies, may use any provision of law not in conflict with this
688-13 section to the extent convenient or necessary to carry out any
688-14 power or authority, express or implied, granted by this section.
688-15 (k) This section does not affect:
688-16 (1) the taxing power of the authority;
688-17 (2) the election process pertaining to the authority's
688-18 taxing power; or
688-19 (3) any provision of Section 275.020.
688-20 Sec. 275.018. HYDROELECTRIC POWER. The authority may
688-21 produce and sell hydroelectric energy or power on a wholesale basis
688-22 to any public utility on terms and conditions as the parties may
688-23 agree.
688-24 Sec. 275.019. AD VALOREM TAXES; ELECTION. (a) Subject to
688-25 the limitation prescribed in this section, the authority may levy
688-26 and collect the ad valorem taxes that are voted at an election
689-1 called by the board for the purpose and conducted throughout the
689-2 territory of the authority.
689-3 (b) The maximum rate of tax that may be levied and collected
689-4 for any year is 15 cents on the $100 of taxable property based on
689-5 the assessed valuation.
689-6 (c) Only qualified electors may vote in a tax election.
689-7 (d) An elector otherwise qualified must vote in the county
689-8 and precinct where the elector resides.
689-9 (e) The resolution calling for a tax election must state the
689-10 maximum rate or rates of taxes that are to be authorized.
689-11 (f) The authority shall publish notice of a tax election and
689-12 the proposed tax rates at least once in each of four weeks on the
689-13 same day of each week in a newspaper published in, or having
689-14 general circulation in, each county within the authority. The date
689-15 of the first publication must be at least 30 days before the date
689-16 of the election.
689-17 (g) The resolution calling for an election must specify the
689-18 voting places in each of the several counties. The notice of an
689-19 election will be sufficient as to any county within the authority
689-20 if it states that the election is to be held throughout the
689-21 territory comprising the authority and specifies the voting places
689-22 in such county. It shall not be necessary to publish such details
689-23 except in the county to which the details are applicable.
689-24 (h) Returns of the election shall be made to the board.
689-25 (i) If a majority of the qualified electors voting in a
689-26 majority of the counties that are wholly or partially within the
690-1 authority and a majority of the qualified electors voting in the
690-2 entire authority vote in favor of the levy of the tax, the board
690-3 may levy the tax at the maximum rate approved by the electors.
690-4 (j) The rate of tax shall be uniform throughout the
690-5 territory comprising the authority and shall be certified by the
690-6 president and secretary of the authority to the tax assessor and
690-7 the tax collector of each included county.
690-8 (k) The board may use funds from a tax that was approved by
690-9 the electors under this section for any purpose authorized by the
690-10 powers conferred on the authority by this chapter.
690-11 Sec. 275.020. CERTAIN LANDS AND PROPERTY EXCLUDED. (a) It
690-12 is found that none of the lands and property owned or controlled by
690-13 a railroad company or motor carrier regulated by the Railroad
690-14 Commission of Texas within the authority benefit from the exercise
690-15 of any powers conferred by this chapter, and such lands and
690-16 property are expressly excluded from the authority. None of the
690-17 lands or property of such railroad companies or motor carriers
690-18 regulated by the Railroad Commission of Texas may be subjected to
690-19 any of the specific or general provisions in the chapter. The
690-20 finding under this subsection supersedes the provisions of Section
690-21 275.003 and any other sections of this chapter.
690-22 (b) The taxing power and authority provided by this chapter
690-23 shall not extend to nor apply to the lands and property of a
690-24 railroad company or motor carrier regulated by the Railroad
690-25 Commission of Texas required by law to pay a tax on intangible
690-26 assets, and no tax assessor, collector, or any other public
691-1 official shall have any powers relating to taxation or otherwise
691-2 over such properties.
691-3 (c) If a tax assessor or collector of any county wholly or
691-4 partly within the authority undertaking an official act for the
691-5 authority exercises or attempts to exercise any act that could be
691-6 construed by a railroad company or motor carrier regulated by the
691-7 Railroad Commission of Texas as extending a taxing power or
691-8 authority over the lands and property of the railroad company or
691-9 motor carrier, the railroad company or motor carrier may withhold
691-10 payment to the county for which the tax assessor or collector
691-11 normally performs official duties for the reasons that:
691-12 (1) the lands and properties of the companies do not
691-13 benefit from the exercise of any powers contained in this chapter;
691-14 and
691-15 (2) the companies are not required to pay any taxes to
691-16 the authority because they are required by law to pay a tax on
691-17 intangible assets.
691-18 (d) Any court of competent jurisdiction within this state
691-19 shall enforce the provisions of this section through injunction,
691-20 mandatory injunction, writ of prohibition, or any other process
691-21 entered or promulgated to effectuate the sense and purposes of this
691-22 section.
691-23 (e) At an election called by the authority or an authorized
691-24 public official for the purpose of levying a tax provided by this
691-25 chapter, the ballot and the notice of the election shall confine
691-26 the property subject to taxation to property that benefits by
692-1 submitting to the voters the proposition substantially as follows:
692-2 "Shall Trinity River Authority of Texas be
692-3 authorized to levy a tax on all taxable
692-4 property in the authority at a rate not to
692-5 exceed 15 cents on the $100 of assessed
692-6 valuation?"
692-7 Sec. 275.021. TAX ASSESSMENT AND COLLECTION. (a) The
692-8 rendition and assessment of property for taxation and the
692-9 collection of taxes for the benefit of the authority shall be in
692-10 accordance with the law applicable to counties, in so far as such
692-11 law is applicable.
692-12 (b) Renditions shall be to the county tax assessor of the
692-13 county in which the property is taxable for state and county
692-14 purposes.
692-15 (c) The assessor and collector in each county shall place on
692-16 the county tax rolls any additional columns that are needed to show
692-17 the tax levied by the authority and the amount of the tax, based on
692-18 the value of the property as approved finally for state and county
692-19 purposes by the board of equalization of the county.
692-20 (d) The fee for assessing and collecting taxes shall be
692-21 one-half of one percent of the taxes collected. The fee shall be
692-22 paid over and disbursed in each county as are other fees of office.
692-23 (e) Laws for the enforcement of state and county taxes shall
692-24 be available to the authority. The authority may require the
692-25 officers of each county to enforce the taxes due to the authority
692-26 in that county, as provided in the law for the enforcement of state
693-1 and county taxes.
693-2 (f) Taxes assessed and levied for the benefit of the
693-3 authority shall be payable and shall become delinquent at the same
693-4 time, in the same manner, and subject to the same discount for
693-5 advance payment as taxes levied by and for the benefit of the
693-6 county in which the property is taxable.
693-7 Sec. 275.022. BONDS. (a) For the purpose of carrying out
693-8 any powers of the authority, the authority may issue negotiable
693-9 bonds of three general classes:
693-10 (1) bonds secured by ad valorem taxes, when voted,
693-11 provided that the maximum rate of tax in any one year to be levied
693-12 by the authority for bonds and all other purposes shall not exceed
693-13 15 cents on the $100 of taxable property;
693-14 (2) bonds secured solely by a pledge of all or part of
693-15 the revenues accruing to the authority, including revenues received
693-16 from the sale of water, the rendition of services, tolls, charges,
693-17 and all sources other than ad valorem taxes; and
693-18 (3) bonds secured by a combination pledge of revenues
693-19 and taxes, provided that taxes will be collected for the purpose
693-20 only to the extent that the revenues are insufficient to provide
693-21 the amount of money necessary to pay operating and maintenance
693-22 expenses and to service the bonds as prescribed in the resolution
693-23 authorizing, or the indenture securing, the bonds.
693-24 (b) The authority may issue bonds prescribed in Subsection
693-25 (a)(2) by action of the board and without an election. Bonds
693-26 issued under Subsections (a)(1) and (3) may be issued only after
694-1 authorization at an election held throughout the territory
694-2 comprising the authority. The elections shall be conducted
694-3 substantially in accordance with the procedure prescribed in
694-4 Section 275.019 for elections authorizing ad valorem taxes. The
694-5 qualifications of voters at bond elections shall be the same as
694-6 those prescribed in Section 275.019 for elections authorizing ad
694-7 valorem taxes.
694-8 (c) Bonds of the authority must be authorized by resolution
694-9 adopted by the board and shall be signed by the president or vice
694-10 president, attested by the secretary, and impressed with the seal
694-11 of the authority. At the discretion of the board, as evidenced by
694-12 the resolution, bonds may be issued bearing the facsimile signature
694-13 of the president, vice president, or secretary and the seal of the
694-14 authority may be printed on the bonds. Bonds must mature serially
694-15 or otherwise within the period and at the times prescribed in the
694-16 resolution, not to exceed 50 years. The bonds may be sold at a
694-17 price and under terms determined by the board to be the most
694-18 advantageous reasonably obtainable, provided that the interest cost
694-19 to the authority calculated by the use of standard bond interest
694-20 tables currently in use by insurance companies and investment
694-21 houses does not exceed six percent per year, except that bonds
694-22 payable wholly or partially from taxes shall bear interest costs
694-23 not to exceed four and one-half percent per year. The bonds, at
694-24 the discretion of the board, may be made callable prior to maturity
694-25 at the times and prices prescribed in the resolution authorizing
694-26 the bonds. The bonds may be registrable as to principal or as to
695-1 both principal and interest. Appropriate provisions may be
695-2 inserted in the resolution authorizing the execution and delivery
695-3 of bonds for the conversion of registered bonds into bearer bonds
695-4 and vice versa. Provisions may be made in the bond resolution or
695-5 trust indenture for the substitution of new bonds for those lost or
695-6 mutilated. If bonds are approved by the attorney general and
695-7 registered by the comptroller as prescribed in Subsection (l), it
695-8 shall not be necessary to obtain the approval of the attorney
695-9 general or registration by the comptroller of the converted or
695-10 substituted bonds.
695-11 (d) Bonds secured wholly or in part by a pledge of the
695-12 revenues of the authority may be secured by all or part of the
695-13 revenues specified in the resolution authorizing the bonds or in
695-14 the indenture securing the bonds. At the discretion of the board,
695-15 bonds may be secured further by a lien on all or any part of the
695-16 physical property of the authority. In making the pledge of the
695-17 revenues the right, under the conditions specified in the pledge,
695-18 to issue additional bonds to be on a parity with, senior to, or
695-19 subordinate to the bonds then being issued may be expressly
695-20 reserved.
695-21 (e) If bonds are issued payable wholly from ad valorem
695-22 taxes, the board shall, at the time of the authorization of the
695-23 bonds, levy a tax sufficient to pay the principal of and interest
695-24 on the bonds as the interest and principal become due and shall
695-25 provide the reserve funds if prescribed in the resolution
695-26 authorizing or the trust indenture securing the bonds, with regard
696-1 to the maximum rate of tax permitted under this chapter.
696-2 (f) If bonds are issued payable both from ad valorem taxes
696-3 and from revenues of the authority, an ad valorem tax shall be
696-4 levied at the time of the authorization of the bonds sufficient to
696-5 pay the principal of and interest on the bonds and create and
696-6 maintain reserve funds, but the rate of tax to be collected for any
696-7 year shall be set to take into consideration the money that has
696-8 been in the interest and sinking fund from the pledged revenues and
696-9 that will be available for payment of the principal and interest
696-10 and for the creation of the reserve funds, to the extent and in the
696-11 manner permitted by the resolution authorizing or the trust
696-12 indenture securing the bonds.
696-13 (g) If bonds are issued payable wholly from revenues, the
696-14 board shall set and from time to time revise the rates, tolls, and
696-15 charges for the sales and services rendered by the authority. The
696-16 revenues from the rates, tolls, and charges are pledged so that the
696-17 rates, tolls, and charges will yield sufficient money to pay the
696-18 designated expenses of the authority and the principal of and
696-19 interest on the bonds as the principal and interest mature and to
696-20 create and maintain funds as prescribed in the resolution
696-21 authorizing or the trust indenture securing the bonds. If the
696-22 bonds are issued payable both from ad valorem taxes and from
696-23 revenues, the board shall set and from time to time revise the rate
696-24 of compensation for water sold, services rendered, and tolls and
696-25 charges levied by the authority, to the extent the revenues are
696-26 pledged and to the extent sufficient to assure compliance with the
697-1 resolution authorizing the bonds or the trust indenture securing
697-2 the bonds.
697-3 (h) From the proceeds of the sale of any issue of bonds the
697-4 authority may set aside an amount for the payment of interest
697-5 anticipated to accrue for the period specified, or for the
697-6 construction period and two additional years, and to provide for a
697-7 deposit into reserves for the interest and sinking fund to the
697-8 extent prescribed in the resolution authorizing or the trust
697-9 indenture securing the bonds. Proceeds from the sale of the bonds
697-10 shall be used for the purposes for which the bonds were authorized
697-11 and may be used for the payment of all expenses necessarily
697-12 incurred in accomplishing the purposes for which the authority is
697-13 created, including the expense of issuing and selling the bonds.
697-14 However, no expenditure of the proceeds shall be made in violation
697-15 of the provisions in the resolution authorizing or the trust
697-16 indenture securing the bonds.
697-17 (i) In the event of a default or a threatened default in the
697-18 payment of the principal of or interest on bonds payable wholly or
697-19 partially from revenues, any court of competent jurisdiction may,
697-20 on petition of the holders of outstanding bonds, appoint a receiver
697-21 with authority to collect and receive all income of the authority
697-22 except taxes, employ and discharge agents and employees of the
697-23 authority, take charge of funds on hand, except funds received from
697-24 taxes unless commingled, and manage the proprietary affairs of the
697-25 authority without consent or hindrance by the directors. The
697-26 receiver may also be authorized to sell or make contracts for the
698-1 sale of water or renew such contracts with the approval of the
698-2 court appointing the receiver. The court may vest the receiver
698-3 with other powers and duties the court may find necessary for the
698-4 protection of the holders of the bonds. The resolution authorizing
698-5 the issuance of the bonds or the trust indenture securing the bonds
698-6 may limit or qualify the rights of the holders of less than all of
698-7 the outstanding bonds payable from the same source to institute or
698-8 prosecute any litigation affecting the authority's property or
698-9 income.
698-10 (j) Pending the issuance of definitive bonds the board may
698-11 authorize the delivery of negotiable interim bonds or notes,
698-12 eligible for exchange or substitution, by use of definitive bonds.
698-13 (k) The authority is authorized to issue refunding bonds for
698-14 the purpose of refunding any outstanding bonds and interest on the
698-15 bonds authorized by this chapter or any other indebtedness which
698-16 the authority may lawfully assume. The refunding bonds may be
698-17 issued to refund more than one series of outstanding bonds and may
698-18 for the benefit of the refunding bonds combine the pledges securing
698-19 the outstanding bonds and may inject additional security for the
698-20 refunding issue. Refunding bonds shall be registrable by the
698-21 comptroller on surrender and cancellation of the bonds to be
698-22 refunded, but in lieu of that procedure the resolution authorizing
698-23 the issuance of the refunding bonds may provide that the bonds
698-24 shall be sold and the proceeds deposited in the bank, or in one or
698-25 more of the banks where the original bonds are payable. If the
698-26 bonds are sold and the proceeds deposited in the bank, the
699-1 refunding bonds may be issued in an amount sufficient to pay the
699-2 interest on the original bonds to their maturity date, or to the
699-3 date on which the bonds are to be redeemed, and the amount of the
699-4 call premium, if any, for bonds called for redemption prior to
699-5 maturity; in that event the comptroller shall register the
699-6 refunding bonds without the concurrent surrender and cancellation
699-7 of the original bonds. No election shall be necessary in
699-8 connection with the authorization and issuance of refunding bonds.
699-9 (l) Bonds shall not be issued by the authority until the
699-10 bonds have been approved by the attorney general. After the bonds
699-11 have been approved by the attorney general and registered by the
699-12 comptroller the bonds are negotiable and incontestable. If the
699-13 bonds of an issue have been properly approved and registered, the
699-14 replacement bonds delivered by the authority in lieu of the
699-15 approved and registered bonds under Subsection (c), in connection
699-16 with the exchange of registered for unregistered bonds or
699-17 unregistered bonds for registered bonds, or in lieu of lost or
699-18 mutilated bonds, need not be reapproved by the attorney general or
699-19 reregistered by the comptroller. The replacement bonds are
699-20 incontestable except that the limitations resulting from
699-21 registration are negotiable.
699-22 (m) Bonds, including refunding bonds, authorized by this
699-23 chapter and not payable wholly from ad valorem taxes may be
699-24 additionally secured by a trust indenture under which the trustee
699-25 may be a bank having trust powers situated either within or outside
699-26 the state. The trust indenture may contain provisions prescribed
700-1 by the board for the security of the bonds and the preservation of
700-2 the properties, contracts, and rights of the authority. The trust
700-3 indenture may contain a provision for the amendment or modification
700-4 of the indenture in the manner prescribed in the indenture.
700-5 Without limiting the generality of the provisions contained in the
700-6 indenture, the indenture may provide that the authority shall
700-7 comply with the requirements of designated consulting engineers for
700-8 the proper maintenance and operation of the authority's properties
700-9 and for the setting of adequate tolls, charges, and rates to assure
700-10 proper maintenance and operation and to provide proper debt service
700-11 for the outstanding bonds in the manner prescribed in the
700-12 resolution authorizing the issuance of the bonds or in the trust
700-13 indenture securing the bonds.
700-14 (n) The proceeds from the sale of any issue of bonds may,
700-15 within the discretion of the board, be invested during the period
700-16 of construction, or before the use of the proceeds for construction
700-17 purposes, in bonds or other direct obligations of the United States
700-18 government, and the securities may be sold pursuant to the
700-19 directions of the board as and when needed for construction
700-20 purposes.
700-21 Sec. 275.023. BOND VALIDATION BY DISTRICT COURT. (a) The
700-22 authority, in lieu of having its bonds and water supply or sewer
700-23 contracts approved by the attorney general, and at the discretion
700-24 of the board, may have the bonds and contracts validated by a suit
700-25 in the district court in the manner and with the effect provided in
700-26 Sections 55.504-55.510, relating to water improvement districts.
701-1 However, the publication of the general notice of the suit shall be
701-2 in a newspaper designated by the judge of the court in which the
701-3 suit is filed, and the interest rate and sale price of the bonds
701-4 need not be set until after the termination of the suit.
701-5 (b) If the proposed bonds recite that the bonds are secured
701-6 by a pledge of the proceeds of a contract or contracts previously
701-7 made between the authority and one or more cities, the petition
701-8 shall so allege and the general notice of the suit must specify the
701-9 allegation and the city fund or revenues from which the contract or
701-10 contracts are payable. The judgment shall be res judicata as to
701-11 the validity of the contract or contracts and the pledge of the
701-12 revenues of the contract or contracts.
701-13 Sec. 275.024. INVESTMENT AND DEPOSIT OF FUNDS. The
701-14 authority may invest any of its funds, including proceeds from the
701-15 sale of bonds, in direct obligations of, or obligations whose
701-16 principal and interest are guaranteed by, the United States and may
701-17 invest the funds in direct obligations of the Federal Intermediate
701-18 Credit Bank, the Federal Home Loan Bank, the Federal Land Bank, or
701-19 banks for cooperatives and may place the funds of the authority on
701-20 interest bearing time deposits with banks if the deposits are
701-21 secured with a pledge of securities of the kind specified in this
701-22 section, to the extent not otherwise provided in the resolution or
701-23 the trust indenture under which the bonds are issued. Income and
701-24 profits on the investments shall be applied as provided in the
701-25 resolution or trust indenture.
701-26 Sec. 275.025. BOND ISSUANCE. The authority is authorized to
702-1 issue bonds for cash or in exchange for property of any kind, real,
702-2 personal, or mixed, or any interest in property that the board
702-3 considers necessary or convenient for any corporate purpose.
702-4 Sec. 275.026. EXEMPTION FROM TAXATION. The accomplishment
702-5 of the purposes stated in this chapter being for the benefit of the
702-6 people of the state and for the protection and improvement of their
702-7 properties and industries, the authority, in carrying out the
702-8 purposes of this chapter, will be performing an essential public
702-9 function under the constitution and is not required to pay any tax
702-10 or assessments on its properties. The bonds issued as provided by
702-11 this chapter and the transfer and the income from the bonds,
702-12 including the profits made on the sale of the bonds, are at all
702-13 times free from taxation within this state.
702-14 Sec. 275.027. BONDS AS INVESTMENTS AND SECURITY FOR
702-15 DEPOSITS. (a) All bonds of the authority are legal and authorized
702-16 investments for banks, savings banks, trust companies, building and
702-17 loan associations, savings and loan associations, and insurance
702-18 companies.
702-19 (b) Authority bonds are eligible to secure the deposit of
702-20 all public funds of the state and all public funds of cities,
702-21 towns, villages, counties, school districts, or other political
702-22 corporations or subdivisions of the state. The bonds are lawful
702-23 and sufficient security for the deposits to the extent of the
702-24 principal amount of the bonds or the value of the bonds on the
702-25 market, whichever is less, when accompanied by all unmatured
702-26 coupons.
703-1 Sec. 275.028. MASTER PLAN. (a) The authority shall prepare
703-2 a master plan for the maximum development of the soil and water
703-3 resources of the entire Trinity River watershed, including plans
703-4 for the complete utilization, for all economically beneficial
703-5 purposes, of the water resources of the watershed. The portion of
703-6 the master plan and any amendments to the plan relating to soil
703-7 conservation and upstream flood prevention structures shall be
703-8 prepared by the soil conservation districts on the Trinity River
703-9 watershed, subject to approval by the State Soil and Water
703-10 Conservation Board. The master plan shall be filed with and
703-11 approved by the commission. Notwithstanding any provision of this
703-12 chapter, the portion of the master plan pertaining to the
703-13 designation of major reservoir sites on Chambers Creek shall not be
703-14 effective unless approved by Ellis County Drainage District No. 1
703-15 and any designation of major reservoir sites on Waxahachie Creek
703-16 other than the Bardwell site shall not be effective unless approved
703-17 by Ellis County Water Improvement District No. 1. The master plan
703-18 may be amended or supplemented from time to time by the authority,
703-19 provided that a copy of the amendment or supplement to the master
703-20 plan is filed with and approved by the commission.
703-21 (b) After the master plan has been filed with the
703-22 commission, the plan of a water development proposed within the
703-23 Trinity River watershed not exempted by law from the requirements
703-24 for procuring a permit shall be submitted to the commission. A
703-25 copy of the proposed water development plan shall be furnished to
703-26 the board, which shall make recommendations in reference to the
704-1 proposed development to the commission within 60 days after receipt
704-2 of the copy of the proposed water development plan. The commission
704-3 shall hold a hearing at which the proponents of the proposed
704-4 development and the authority shall have an opportunity to present
704-5 evidence and recommendations to the commission. The commission
704-6 shall approve or disapprove the proposed water development
704-7 notwithstanding any provision of the master plan in accordance with
704-8 the provisions of Section 16.020.
704-9 Sec. 275.029. PURCHASE OR CONSTRUCTION CONTRACT. A
704-10 construction contract or contract for the purchase of material,
704-11 equipment, or supplies is subject to the requirements of general
704-12 law.
704-13 Sec. 275.030. CONSERVATION DISTRICTS. (a) This chapter
704-14 shall not prevent the organization of conservation districts or
704-15 prevent boundary changes of conservation districts within the
704-16 boundaries of the authority as authorized in Section 59, Article
704-17 XVI, Texas Constitution, or as prescribed in Section 52, Article
704-18 III, Texas Constitution. After the master plan of the authority
704-19 has been prepared and after it has been filed with and approved by
704-20 the commission as prescribed in Section 275.028, the procedure
704-21 prescribed in Section 275.028 shall be followed. Until the master
704-22 plan has been filed with and approved by the commission, it shall
704-23 be the duty of the sponsors of a conservation district to file with
704-24 the board information as to proposed plans of the district. It
704-25 shall also be the duty of an existing district within the Trinity
704-26 River watershed to file with the board information regarding the
705-1 district's planned improvements so that the authority may make
705-2 recommendations to the commission within 60 days from the date the
705-3 district files the information.
705-4 (b) To the extent that the creation of a conservation
705-5 district or the prosecution of the planned improvements of a
705-6 conservation district is in harmony with the objectives of the
705-7 authority, it shall be the duty of the authority to cooperate in
705-8 every practical manner with the sponsors of the proposed or
705-9 existing conservation district in the prosecution of the proposed
705-10 improvements. It shall be the duty of the authority to encourage
705-11 the improvements in local areas where the expense of the project is
705-12 to be borne principally by the local property owners. To the
705-13 extent that the authority is financially capable of cooperating and
705-14 to the extent that the local agency will be performing a service
705-15 that is the duty of the authority, the authority shall, within the
705-16 discretion of the board, cooperate financially in the improvements
705-17 of the conservation district.
705-18 (c) The authority, within its ability, is authorized to
705-19 cooperate with a conservation district, or with any other municipal
705-20 or public agency in the Trinity River watershed, in providing a
705-21 water supply, to the extent that such project is feasible, in such
705-22 a manner that the needs of the district, municipality, or public
705-23 agency are fully met, but with provision that water not needed for
705-24 such purposes will continue to be available for the uses and
705-25 purposes of the authority. The board is authorized to issue the
705-26 authority's bonds for the purpose of cooperating in water supply
706-1 projects.
706-2 Sec. 275.031. SOIL CONSERVATION. (a) Notwithstanding any
706-3 other provisions of this chapter, the authority shall have no
706-4 control over soil conservation districts created in any county or
706-5 counties of its territory but may:
706-6 (1) assist in the accomplishment and coordination of
706-7 storm waters, floodwaters, and unappropriated flow waters
706-8 throughout the Trinity River watershed consistent with the
706-9 objectives of the soil conservation districts in the watershed
706-10 area;
706-11 (2) assist in the conservation of soil and other
706-12 surface resources against destructive erosion to prevent the
706-13 increase of flood danger incident to erosion and to prevent
706-14 sedimentation and siltation of lands, channels, reservoirs, and
706-15 coastal waters, including aiding and assisting in the work of upper
706-16 stream soil and water conservation and flood prevention projects by
706-17 the State Soil and Water Conservation Board;
706-18 (3) assist in upstream watershed projects of a soil
706-19 conservation district, particularly those projects above the
706-20 Navarro Mills, Italy, and Bardwell reservoir sites and the major
706-21 reservoir program on Richland and Chambers creeks; or
706-22 (4) encourage and, when requested, aid financially in
706-23 the construction of any upstream project or program planned or
706-24 promoted by a soil conservation district on the Trinity River
706-25 watershed below the watersheds of Upper Keechi Creek and Elkhart
706-26 Creek and in the completion of upstream programs planned by the
707-1 soil conservation districts in the Trinity River watershed above
707-2 and including the watersheds of Upper Keechi Creek and Elkhart
707-3 Creek.
707-4 (b) The authority shall have no power to control or direct
707-5 and shall have no supervisory responsibility to determine the
707-6 feasibility of, and may not negotiate, deal, or contract with
707-7 federal government agencies with regard to, federal projects under
707-8 the Watershed Protection and Flood Prevention Act (16 U.S.C.
707-9 Section 1001 et seq.), as amended, or any other federal law, in
707-10 which the federal projects' problems relating to water are merely
707-11 incidental to soil conservation projects and which federal projects
707-12 the State Soil and Water Conservation Board promotes and supervises
707-13 and with regard to which projects the board has the responsibility
707-14 and authority to deal with the federal governmental agencies on
707-15 behalf of the state.
707-16 Sec. 275.032. CREATION OF WATER CONTROL AND IMPROVEMENT
707-17 DISTRICT. If the electors of a defined area or areas acting
707-18 jointly within the authority desire, the area or areas may become a
707-19 water control and improvement district for the purpose of
707-20 independently providing, operating, and maintaining improvements
707-21 designed peculiarly to serve the defined area. The defined area
707-22 contained in the authority may constitute a water control and
707-23 improvement district under the applicable provision of Chapter 51.
707-24 Similarly, any other political subdivision of the state contained
707-25 in whole or in part in the authority may independently provide,
707-26 maintain, and operate works peculiarly designed to benefit the
708-1 political subdivision. The works and the operation of the works
708-2 shall be constructed and operated in a manner that will conform to
708-3 the authority's master plan to the greatest practicable degree.
708-4 Sec. 275.033. RIGHTS OF MUNICIPALITIES AND OTHERS. Nothing
708-5 in this chapter shall be construed to diminish, or in any other
708-6 manner affect, the right of a municipality or other political
708-7 subdivision, person, firm, or corporation to operate a water supply
708-8 system or to drill or operate wells using groundwater.
708-9 Sec. 275.034. COOPERATION WITH AGENCIES. The authority is
708-10 authorized specifically to cooperate with any agency situated
708-11 within the boundaries of the authority to the extent of paying the
708-12 costs of local improvements that will have the effect of relieving
708-13 the authority of any duty the authority might have for providing
708-14 the improvements, to the extent that the authority has money or
708-15 revenues available for the improvements and when in the opinion of
708-16 the board cooperation or contribution is justified.
708-17 Sec. 275.035. ADDITIONAL PROVISIONS REGARDING CONTRACTS AND
708-18 FUNDING. (a) The authority may make contracts with the United
708-19 States and its agencies, the state and its agencies, all municipal
708-20 corporations, political subdivisions, and districts, and private
708-21 persons. The authority may obtain loans from and accept grants
708-22 from the United States and its agencies and from the state and its
708-23 agencies and may participate in and be the beneficiary of any plan
708-24 that is evolved by the state or federal government for guaranteeing
708-25 or otherwise subsidizing the obligations of the authority;
708-26 provided, however, that a contract may not be entered into between
709-1 the authority and the federal government for navigation purposes to
709-2 any point on the Trinity River north of Ellis County, unless the
709-3 contract provides for construction and operation of the navigation
709-4 facilities to a point in Tarrant County.
709-5 (b) Without limitation as to the exercise of the general
709-6 powers of the authority as provided by Subsection (a), the
709-7 authority has the right to acquire from the United States
709-8 government through the secretary of the army, or from any other
709-9 official of the United States government authorized to make such
709-10 contracts, unsold conservation storage at the several multipurpose
709-11 dams constructed by the army within or available to the Trinity
709-12 River watershed. The authority may acquire additional conservation
709-13 storage that may be provided at any such dam.
709-14 (c) The authority may use any contract authorized by this
709-15 section as the sole basis or as a supplement to the basis for
709-16 securing the bonds of the authority.
709-17 Sec. 275.036. WATER CONSERVATION, STORAGE, PROCUREMENT,
709-18 DISTRIBUTION, AND SUPPLY. In addition to all other powers, the
709-19 authority may construct, acquire, equip, acquire storage rights at,
709-20 and operate dams and reservoirs that in the opinion of the board
709-21 are useful in carrying out the powers conferred on the authority,
709-22 whether a dam is designed to serve a single purpose or several
709-23 purposes permitted under this chapter. The authority is authorized
709-24 to provide water supply lines, water purification, and pumping
709-25 facilities. The authority may execute contracts with
709-26 municipalities in the state substantially in the manner prescribed
710-1 by Chapter 402, Local Government Code, for districts organized or
710-2 created pursuant to Section 59, Article XVI, Texas Constitution,
710-3 and may execute water supply contracts with other users of water.
710-4 Standby service, as well as the actual delivery of water, is
710-5 included in the services for which the authority may contract, and
710-6 for which it may make charges. If a dam is constructed that will
710-7 result in the impairment of gravity drainage of water from lands
710-8 protected by a levee in existence at the time this chapter becomes
710-9 effective, the authority shall, at its cost, make provision for the
710-10 installation, maintenance, and operation of pumping facilities or
710-11 provide a gravity system for the drainage of the land.
710-12 Sec. 275.037. PROTECTION OF RIGHTS. (a) The authority, in
710-13 carrying out the powers and duties secured to it under this chapter
710-14 and in the operation of any water development or conservation
710-15 projects under this chapter, shall act in a manner not to impair
710-16 the flow of the Trinity River to the detriment of the vested water
710-17 rights of users downstream. The authority shall not store storm
710-18 waters, floodwaters, and flow waters that are then needed by any
710-19 downstream appropriators to satisfy the amount of water authorized
710-20 to be appropriated by presently existing and valid water permits
710-21 and certified filings. If the authority stores waters in violation
710-22 of this subsection, the downstream appropriators may require by any
710-23 lawful means the release by the authority of the storm waters,
710-24 floodwaters, and flow waters so stored.
710-25 (b) Nothing in this chapter shall have the effect of
710-26 altering, changing, or impairing any rights or privileges existing
711-1 on September 6, 1955, to appropriate and use water from the Trinity
711-2 River. Nothing in this chapter shall have the effect of altering,
711-3 changing, or impairing any rights or privileges existing on
711-4 September 6, 1955, to apply to the commission for, and if approved
711-5 by the commission to retain or obtain, permits to appropriate and
711-6 use water from the Trinity River.
711-7 (c) The authority shall have the responsibility, both
711-8 financial and otherwise, for the construction of a saltwater
711-9 barrier with barge lock in the Trinity River at a location and of a
711-10 design approved by the Chambers-Liberty Counties Navigation
711-11 District that will protect the users of fresh water for irrigation
711-12 purposes.
711-13 Sec. 275.038. AUTHORITY DEPOSITORY. (a) The board shall
711-14 designate one or more banks within the authority to serve as
711-15 depository for the funds of the authority. All funds of the
711-16 authority shall be deposited in the depository bank or banks except
711-17 that funds pledged to pay bonds may be deposited with the trustee
711-18 bank named in the trust agreement, and except that funds shall be
711-19 remitted to the bank of payment for the payment of the principal of
711-20 and interest on bonds. To the extent that funds in the depository
711-21 banks and the trustee bank are not insured by the Federal Deposit
711-22 Insurance Corporation, the funds shall be secured in the manner
711-23 provided by law for the security of county funds.
711-24 (b) Before designating a depository bank or banks, the board
711-25 shall issue a notice stating the time and place when and where the
711-26 board will meet for that purpose and inviting the banks in the
712-1 authority to submit applications to be designated depositories.
712-2 The term of service for depositories shall be prescribed by the
712-3 board. The notice must be published one time in a newspaper or
712-4 newspapers published in the authority and specified by the board.
712-5 (c) At the time mentioned in the notice of the meeting, the
712-6 board shall consider the applications and the management and
712-7 condition of the banks filing the applications and shall designate
712-8 as depositories the bank or banks that offer the most favorable
712-9 terms and conditions for the handling of the funds of the authority
712-10 and that the board finds have proper management and are in
712-11 condition to warrant handling of authority funds. Membership on
712-12 the board of an officer or director of a bank shall not disqualify
712-13 the bank from being designated as depository.
712-14 (d) If no applications are received by the time stated in
712-15 the notice of the meeting, the board shall designate a bank or
712-16 banks within or outside the authority based on terms and conditions
712-17 the board finds advantageous to the authority.
712-18 Sec. 275.039. PROTECTION OF PROPERTIES AND WATER SUPPLY.
712-19 The authority shall have the same power to make provision for the
712-20 protection of the properties and water supply of the authority as
712-21 is provided by general law.
712-22 Sec. 275.040. EMPLOYEES. (a) The board shall have full
712-23 power to employ agents, attorneys, engineers, and other employees
712-24 that the board considers necessary.
712-25 (b) The board may within its discretion employ fiscal agents
712-26 or advisers in connection with the authority financing program and
713-1 in connection with the issuance of authority bonds.
713-2 Sec. 275.041. ACQUISITION, SALE, OR EXCHANGE OF PROPERTY.
713-3 (a) The authority may acquire within or outside the boundaries of
713-4 the authority property, real and personal, including easements,
713-5 through purchase, gift, or exchange, that the board considers
713-6 necessary to accomplish the objectives of the authority and may
713-7 purchase the properties and facilities of any other district within
713-8 the authority created under Section 52, Article III, or Section 59,
713-9 Article XVI, Texas Constitution, and assume the indebtedness of
713-10 such properties and facilities.
713-11 (b) The board shall have the right to sell or exchange
713-12 property if within its discretion the sale or exchange is in the
713-13 best interests of the authority.
713-14 Sec. 275.042. ACQUISITION OF WATER. (a) The authority
713-15 shall acquire water appropriation permits directly from the
713-16 commission and may purchase permits from owners of permits. The
713-17 authority may purchase water, or a water supply, from any person,
713-18 firm, corporation, or public agency or from the United States or
713-19 its agencies.
713-20 (b) Nothing in this chapter shall impair the authority
713-21 granted the commission under the general laws of the state to
713-22 prescribe rates governing the sale of surface water by or to the
713-23 authority.
713-24 Sec. 275.043. EMINENT DOMAIN. (a) For the purpose of
713-25 carrying out any power or authority conferred by this chapter the
713-26 authority may acquire land, property, and easements, including land
714-1 above the probable high-water line around any reservoir, by
714-2 condemnation in the manner provided by Chapter 21, Property Code.
714-3 The authority is declared to be a municipal corporation within the
714-4 meaning of Section 21.021(c), Property Code. The amount of and
714-5 character of interest in land and easements thus to be acquired
714-6 shall be determined by the board; provided, however, that the
714-7 authority shall only acquire the land, property, and easements
714-8 reasonably necessary.
714-9 (b) If the authority, in the exercise of the power of
714-10 eminent domain or power of relocation or any other power granted
714-11 under this chapter, makes necessary the relocation, raising,
714-12 rerouting, changing of grade, or alteration of construction of any
714-13 highway, railroad, electric transmission line, telephone or
714-14 telegraph properties and facilities, or pipeline, the relocation,
714-15 raising, rerouting, changing of grade, or alteration of
714-16 construction shall be accomplished at the sole expense of the
714-17 authority.
714-18 Sec. 275.044. SCOPE OF AUTHORITY POWERS. No provision of
714-19 this chapter is intended to or shall in any manner impair or change
714-20 any of the powers, rights, or privileges existing on September 6,
714-21 1955, or conferred before that time on the North Texas Municipal
714-22 Water District, Tarrant County Water Control & Improvement District
714-23 No. 1, the Chambers-Liberty Counties Navigation District, or the
714-24 municipalities within the authority area, but each of the districts
714-25 and municipalities shall have, keep, and retain all the powers
714-26 conferred by law and otherwise rightfully acquired on and by the
715-1 district or municipality, notwithstanding anything in this chapter
715-2 to the contrary.
715-3 Sec. 275.045. LIMITATIONS ON AUTHORITY. (a) The powers,
715-4 authority, and duties granted to the authority in this chapter
715-5 shall be applicable only in the counties expressly named in Section
715-6 2, Chapter 518, Acts of the 54th Legislature, Regular Session,
715-7 1955, and in no other county or counties of this state,
715-8 notwithstanding anything in this chapter to the contrary.
715-9 (b) The authority or jurisdiction of the authority shall be
715-10 confined to counties enumerated in Section 2, Chapter 518, Acts of
715-11 the 54th Legislature, Regular Session, 1955, and Section
715-12 275.004(c). Counties or parts of counties within the Trinity River
715-13 watershed that are not mentioned in those sections are outside the
715-14 jurisdiction and authority of the authority and are not affected by
715-15 the provisions of this chapter.
715-16 Sec. 275.046. RIPARIAN RIGHTS. No provision of this chapter
715-17 shall be construed to affect, alter, or impair riparian rights.
715-18 CHAPTER 276. UPPER COLORADO RIVER AUTHORITY
715-19 Sec. 276.001. CREATION. (a) A conservation and reclamation
715-20 district to be known as the "Upper Colorado River Authority" is
715-21 created. The authority is a governmental agency and a body politic
715-22 and corporate.
715-23 (b) The authority is created under and is essential to
715-24 accomplish the purposes of Section 59(a), Article XVI, Texas
715-25 Constitution, including, to the extent authorized by this chapter,
715-26 the control, storing, preservation, and distribution of the waters
716-1 of the Upper Colorado River and its tributaries for irrigation,
716-2 power, and other useful purposes, the reclamation and irrigation of
716-3 arid, semiarid, and other lands needing irrigation, and the
716-4 conservation and development of the forests, water and
716-5 hydroelectric power of the state. Nothing in this chapter or in
716-6 any other law shall be construed as authorizing the authority to
716-7 levy or collect taxes or assessments or to create any indebtedness
716-8 payable out of taxes or assessments or in any way to pledge the
716-9 credit of the state.
716-10 Sec. 276.002. DEFINITIONS. In this chapter:
716-11 (1) "Authority" means the Upper Colorado River
716-12 Authority.
716-13 (2) "Board" means the board of directors of the
716-14 authority.
716-15 (3) "Director" means a member of the board.
716-16 Sec. 276.003. TERRITORY. The authority includes all the
716-17 territory within the boundaries of Coke and Tom Green counties.
716-18 Sec. 276.004. POWERS AND DUTIES. (a) Except as expressly
716-19 limited by this chapter, the authority has all the powers, rights,
716-20 privileges, and functions conferred by general law on any district
716-21 or districts created pursuant to Section 59, Article XVI, Texas
716-22 Constitution, and as provided by this section.
716-23 (b) The authority may control, store, and preserve, within
716-24 the boundaries of the authority, the waters of the Colorado River
716-25 and its tributaries for any useful purpose and may use, distribute,
716-26 and sell those waters within the boundaries of the authority for
717-1 any such purposes.
717-2 (c) The authority may sell and distribute water outside the
717-3 boundaries of the authority to any municipality for domestic,
717-4 municipal, and irrigation purposes and to any person, firm, or
717-5 corporation for municipal purposes or irrigation and may construct
717-6 flumes, irrigation ditches, pipelines, and storage reservoirs
717-7 outside the authority for such purposes.
717-8 (d) The authority may develop and generate waterpower and
717-9 electric energy within the boundaries of the authority and may
717-10 distribute and sell waterpower and electric energy within or
717-11 outside the boundaries of the authority, but such use shall be
717-12 subordinate and inferior to all requirements for irrigation.
717-13 (e) The authority may prevent or aid in the prevention of
717-14 damage to persons or property from the waters of the Colorado River
717-15 and its tributaries.
717-16 (f) The authority may forest and reforest and aid in the
717-17 foresting and reforesting of the watershed area of the Colorado
717-18 River and its tributaries and may prevent and aid in the prevention
717-19 of soil erosion and floods within the watershed area.
717-20 (g) The authority may acquire by purchase, lease, or gift or
717-21 in any other manner, other than by condemnation, and may maintain,
717-22 use, and operate property of any kind, real, personal, or mixed, or
717-23 any interest in property, within or outside the boundaries of the
717-24 authority, necessary or convenient to the exercise of the powers,
717-25 rights, privileges, and functions conferred on the authority by
717-26 this chapter.
718-1 (h) The authority may acquire by condemnation property of
718-2 any kind, real, personal, or mixed, or any interest in property,
718-3 within or outside the boundaries of the authority, necessary or
718-4 convenient to the exercise of the powers, rights, privileges, and
718-5 functions conferred on the authority by this chapter. The
718-6 authority may condemn property in the manner provided by general
718-7 law with respect to condemnation or, at the option of the
718-8 authority, in the manner provided by the statutes relating to
718-9 condemnation by districts organized under general law pursuant to
718-10 Section 59, Article XVI, Texas Constitution.
718-11 (i) The authority may, subject to the provisions of this
718-12 chapter, sell or otherwise dispose of property of any kind, real,
718-13 personal, or mixed, or any interest in property, that is not
718-14 necessary to carrying on the business of the authority.
718-15 (j) The authority may overflow and inundate any public lands
718-16 and public property and may require the relocation of roads and
718-17 highways in the manner and to the extent permitted to districts
718-18 organized under general law pursuant to Section 59, Article XVI,
718-19 Texas Constitution.
718-20 (k) The authority may construct, extend, improve, maintain,
718-21 and reconstruct, or cause to be constructed, extended, improved,
718-22 maintained, and reconstructed, and may use and operate facilities
718-23 of any kind necessary or convenient to the exercise of its powers,
718-24 rights, privileges, and functions.
718-25 (l) The authority may sue and be sued in its corporate name.
718-26 (m) The authority may make bylaws for the management and
719-1 regulation of its affairs.
719-2 (n) The authority may adopt, use, and alter a corporate
719-3 seal.
719-4 (o) The authority may appoint officers, agents, and
719-5 employees and may prescribe their duties and fix their
719-6 compensation.
719-7 (p) The authority may make contracts and execute instruments
719-8 necessary or convenient to the exercise of the powers, rights,
719-9 privileges, and functions conferred on the authority by this
719-10 chapter.
719-11 (q) The authority may borrow money for its corporate
719-12 purposes and may borrow money and accept grants from the United
719-13 States and, in connection with such loan or grant, may enter into
719-14 such agreements as the United States or such corporation or agency
719-15 may require. The authority may make and issue negotiable bonds for
719-16 funds borrowed in the manner and to the extent provided by Section
719-17 276.014. Nothing in this chapter shall be construed to authorize
719-18 the issuance of any bonds, notes, or other evidences of
719-19 indebtedness of the authority except as specifically provided by
719-20 this chapter, and no issuance of bonds, notes, or other evidences
719-21 of indebtedness of the authority, except as specifically provided
719-22 by this chapter, shall ever be authorized except by an act of the
719-23 legislature.
719-24 (r) The authority may do any other acts or things necessary
719-25 or convenient to the exercise of the powers, rights, privileges, or
719-26 functions conferred on the authority by this chapter or any other
720-1 act or law.
720-2 Sec. 276.005. REVENUE BONDS. The authority and the Brazos
720-3 River Authority, originally created by Chapter 13, Special Laws,
720-4 Acts of the 41st Legislature, 2nd Called Session, 1929, may issue
720-5 negotiable revenue bonds secured only by pledge of the amounts
720-6 granted or donated by the state or out of any other current
720-7 revenues of the authority in such amount as may be authorized by
720-8 the board of such authority, which amounts shall be paid to the
720-9 legal holders of such bonds.
720-10 Sec. 276.006. LIMITATIONS OF AUTHORITY. (a) Notwithstanding
720-11 any rights or permits issued by the commission or its predecessor
720-12 agency that are held or acquired by the authority, the impounding
720-13 and use of the floodwaters of the Colorado River or its tributaries
720-14 for the generation of hydroelectric power by the authority or
720-15 anyone who may succeed to the rights and privileges conferred on
720-16 the authority by this chapter are subject to the rights of a
720-17 person, municipal corporation, or body politic that is impounding
720-18 or putting to beneficial use the waters for the purposes set forth
720-19 in Section 11.024(1)-(3) if the person, municipal corporation, or
720-20 body politic:
720-21 (1) has received a permit for the use from the
720-22 commission; or
720-23 (2) is permitted to impound water for the purposes
720-24 described by this subsection.
720-25 (b) Nothing in this chapter shall be construed to subject to
720-26 condemnation by the authority or any successors, or by anyone who
721-1 may succeed to the rights and privileges conferred on the authority
721-2 by this chapter, any waters:
721-3 (1) impounded or to be impounded within or outside the
721-4 authority under any law authorizing water to be impounded or under
721-5 any permits granted to a municipal corporation or body politic; or
721-6 (2) impounded or permitted to be impounded or used
721-7 outside the authority under permits granted to any person.
721-8 (c) Nothing in this chapter shall be construed as depriving
721-9 any person or municipality of the right to impound the waters of
721-10 the Colorado River or its tributaries for domestic or municipal
721-11 purposes or as repealing any law granting such rights to persons
721-12 and municipalities.
721-13 (d) The rights of the authority to impound, use, and sell
721-14 the waters of the Colorado River and its tributaries for the
721-15 generation of hydroelectric power are subordinate and inferior to
721-16 the rights of:
721-17 (1) cities and towns situated within the watershed of
721-18 the Colorado River and its tributaries to build dams and impound
721-19 floodwaters for municipal purposes; and
721-20 (2) any citizen of Texas, or bodies politic, to build
721-21 dams and impound the floodwaters within the watershed of the
721-22 Colorado River and its tributaries for domestic purposes and for
721-23 the purposes of irrigation.
721-24 (e) The title to any rights, properties, licenses,
721-25 franchises, or permits acquired, or to be acquired, by the
721-26 authority shall be subject to the limitations imposed by Subsection
722-1 (d).
722-2 Sec. 276.007. BOARD OF DIRECTORS; QUORUM; VOTING
722-3 REQUIREMENTS. (a) The powers, rights, privileges, and functions
722-4 of the authority shall be exercised by a board of nine directors.
722-5 (b) Each director must be a resident and freehold property
722-6 taxpayer of the state. Three of the directors must be resident
722-7 citizens of Tom Green County, three must be resident citizens of
722-8 Coke County, and three must be resident citizens of counties
722-9 contiguous to the authority or in any county any part of which may
722-10 be within 25 miles of the authority.
722-11 (c) All of the directors shall be appointed by the governor
722-12 with the advice and consent of the senate. Directors are appointed
722-13 for staggered terms of six years, with three directors' terms
722-14 expiring on February 1 of each odd-numbered year. At the
722-15 expiration of the term of a director, a successor shall be
722-16 appointed by the governor.
722-17 (d) Each director shall hold office until the expiration of
722-18 the term for which the director was appointed and until a successor
722-19 is appointed and has qualified, unless removed sooner as provided
722-20 by this chapter. A director may be removed by the governor for
722-21 inefficiency, neglect of duty, or misconduct in office, after at
722-22 least 10 days' written notice of the charges against the director
722-23 and an opportunity to be heard in person or by counsel at a public
722-24 hearing. A vacancy resulting from the death, resignation, or
722-25 removal of a director shall be filled by the governor for the
722-26 unexpired term.
723-1 (e) Each director shall qualify by taking the official oath
723-2 of office prescribed by general statute.
723-3 (f) Until the adoption of bylaws fixing the time and place
723-4 of regular meetings and the manner in which special meetings may be
723-5 called, meetings of the board shall be held at such times and
723-6 places as five of the directors may designate in writing. Five
723-7 directors constitute a quorum at any meeting.
723-8 (g) Except as otherwise provided in this chapter or in the
723-9 bylaws, all actions may be taken by the affirmative vote of a
723-10 majority of the directors present at any meeting, except that an
723-11 affirmative vote of at least five directors is required to
723-12 authorize or ratify a contract that involves an amount greater than
723-13 $10,000 or that is to run for a period longer than one year, the
723-14 issuance of bonds, notes, or other evidence of indebtedness, or
723-15 amendment of the bylaws.
723-16 Sec. 276.008. OFFICERS; EMPLOYEES. (a) The board shall
723-17 select a secretary, who shall keep true and complete records of all
723-18 proceedings of the board. Until the appointment of a secretary, or
723-19 in the event of the secretary's absence or inability to act, a
723-20 secretary pro tempore shall be selected by the board.
723-21 (b) The board shall select a chair. The chair is the chief
723-22 executive officer of the authority.
723-23 (c) The board shall select a treasurer, who may also hold
723-24 the office of secretary.
723-25 (d) The officers have the powers and duties, hold office for
723-26 the term, and are subject to removal in the manner provided in the
724-1 bylaws. The board shall set the compensation of the officers.
724-2 (e) The board may appoint officers, agents, and employees,
724-3 may set their compensation and term of office and the method by
724-4 which they may be removed, and may delegate to them the power and
724-5 duties it determines appropriate.
724-6 Sec. 276.009. DISBURSEMENT OF FUNDS; SURETY BONDS. (a) The
724-7 funds of the authority may be disbursed only on checks, drafts,
724-8 orders, or other instruments signed by the persons authorized by
724-9 the bylaws or a resolution concurred in by not less than five
724-10 directors.
724-11 (b) The chair, the treasurer, and all other officers,
724-12 agents, and employees of the authority charged with the collection,
724-13 custody, or payment of any funds of the authority shall give bond
724-14 conditioned on the faithful performance of their duties and an
724-15 accounting for all funds and property of the authority coming under
724-16 their control.
724-17 (c) The bonds shall be in a form and amount and with a
724-18 surety (by a surety company authorized to do business in the state)
724-19 approved by the board.
724-20 (d) The premiums on the bonds shall be paid by the authority
724-21 and charged as an operating expense. The bonds shall be payable to
724-22 the board for the use and benefit of the authority.
724-23 Sec. 276.010. AUTHORITY OFFICE; RECORDS. (a) The general
724-24 offices of the authority shall be located by vote of a majority of
724-25 the board. The county in which the general offices are located
724-26 shall constitute the domicile of the authority. The general
725-1 offices shall be in the charge of the chair.
725-2 (b) The authority shall keep complete and accurate accounts
725-3 conforming to approved methods of bookkeeping.
725-4 (c) The accounts and all contracts, documents, and records
725-5 of the authority shall be kept at the principal office. The
725-6 accounts and contracts shall be open to public inspection at all
725-7 reasonable times.
725-8 (d) The board shall cause to be made and completed, within
725-9 90 days after the end of each calendar year, an audit of the books
725-10 of account and financial records of the authority for that calendar
725-11 year. The audit shall be made by an independent certified public
725-12 accountant or firm of certified public accountants.
725-13 (e) Copies of a written report of the audit, certified to by
725-14 the accountant or accountants, shall be placed and kept on file
725-15 with the comptroller, with the commission, and at the principal
725-16 office of the authority and shall be open to public inspection at
725-17 all reasonable times.
725-18 Sec. 276.011. CONFLICT OF INTEREST; PENALTY. A director,
725-19 officer, agent, or employee of the authority may not have an
725-20 interest, directly or indirectly, in any contract for the purchase
725-21 of any property or construction of any work by or for the
725-22 authority. If a director, officer, agent, or employee of the
725-23 authority is or becomes interested in a contract described by this
725-24 section, the person shall be guilty of a felony and on conviction
725-25 shall be subject to a fine in an amount not to exceed $10,000 or to
725-26 confinement in the state penitentiary for not less than one year or
726-1 more than 10 years, or both a fine and confinement.
726-2 Sec. 276.012. RATES AND CHARGES. (a) The board shall
726-3 establish and collect rates and other charges for the sale or use
726-4 of water, water connections, power, electric energy, or other
726-5 services sold, furnished, or supplied by the authority. The fees
726-6 and charges must be reasonable and nondiscriminatory and sufficient
726-7 to produce revenues adequate, in addition to funds received from
726-8 tax diversion, to:
726-9 (1) pay all expenses necessary to the operation and
726-10 maintenance of the properties and facilities of the authority;
726-11 (2) pay the interest on and principal of all bonds
726-12 issued under this chapter as the interest and principal become due
726-13 and payable;
726-14 (3) pay all sinking fund and reserve fund payments
726-15 agreed to be made with respect to bonds and payable out of
726-16 revenues, as the payments become due and payable; and
726-17 (4) fulfill the terms of any agreements made with the
726-18 holders of bonds or with any person in their behalf.
726-19 (b) Out of the revenues that may be received in excess of
726-20 those required for the purposes specified in Subsection (a), the
726-21 board may, in its discretion:
726-22 (1) establish a reasonable depreciation and emergency
726-23 fund;
726-24 (2) retire, by purchase and cancellation or
726-25 redemption, bonds issued under this chapter; or
726-26 (3) apply the excess revenues to any corporate
727-1 purpose.
727-2 (c) The rates and charges of the authority may not be in
727-3 excess of what may be necessary to fulfill the obligations imposed
727-4 on the authority by this chapter. Nothing in this section shall be
727-5 construed as depriving the state of its power to regulate and
727-6 control fees or charges to be collected for the use of water, water
727-7 connections, power, electric energy, or other service; provided,
727-8 however, that the state pledges to and agrees with the purchasers
727-9 and successive holders of the bonds issued under this chapter that
727-10 the state will not limit or alter the power vested in the authority
727-11 by this chapter to establish and collect the fees and charges as
727-12 will produce revenues sufficient to pay the items specified in
727-13 Subsection (a) or in any way impair the rights or remedies of the
727-14 holders of the bonds, or of any person in their behalf, until the
727-15 bonds, together with the interest on the bonds and on unpaid
727-16 installments of interest and all costs and expenses in connection
727-17 with any action or proceedings by or on behalf of the bondholders
727-18 and all other obligations of the authority in connection with the
727-19 bonds are fully met and discharged.
727-20 Sec. 276.013. PAYMENT OF DEBTS. Each indebtedness,
727-21 liability, or obligation of the authority for the payment of money,
727-22 however entered into or incurred and whether arising from contract,
727-23 implied contract, or otherwise, shall be payable solely:
727-24 (1) out of the revenues received by the authority with
727-25 respect to its properties, including funds received by reason of
727-26 diversion of taxes, subject to any prior lien on the revenues
728-1 conferred by any resolution previously adopted authorizing the
728-2 issuance of bonds as provided in this chapter; or
728-3 (2) if the board so determines, out of the proceeds of
728-4 sale by the authority of bonds payable solely from revenues.
728-5 Sec. 276.014. ISSUANCE OF BONDS. (a) The authority may
728-6 issue bonds as provided by this section for any corporate purpose,
728-7 not to exceed $6 million in aggregate principal amount. Any
728-8 additional amount of bonds must be authorized by an act of the
728-9 legislature.
728-10 (b) Bonds may be:
728-11 (1) sold for cash at public or private sale, at such
728-12 price or prices as the board determines, provided that the interest
728-13 cost of the money received for the bonds, computed to maturity in
728-14 accordance with standard bond tables in general use by banks and
728-15 insurance companies, shall not exceed six percent per year; or
728-16 (2) issued on such terms as the board determines in
728-17 exchange for property of any kind, real, personal or mixed, or any
728-18 interest in property, that the board determines necessary or
728-19 convenient for any corporate purpose; or
728-20 (3) issued in exchange for like principal amounts of
728-21 other obligations of the authority, matured or unmatured.
728-22 (c) The proceeds of sale of bonds shall be deposited in a
728-23 bank or banks or trust company or trust companies and shall be paid
728-24 out pursuant to such terms and conditions as may be agreed on
728-25 between the authority and the purchasers of the bonds.
728-26 (d) Bonds must be authorized by a resolution of the board
729-1 concurred in by at least five members. Bonds must bear such date
729-2 or dates; mature at such time or times; bear interest at such rate
729-3 or rates, not exceeding six percent per year, payable annually or
729-4 semiannually; be in such denominations; be in such form, either
729-5 coupon or registered; carry such registration privileges as to
729-6 principal only or as to both principal and interest and as to
729-7 exchange of coupon bonds for registered bonds, or vice versa, and
729-8 exchange of bonds of one denomination for bonds of other
729-9 denominations; be executed in such manner; and be payable at such
729-10 place or places within or outside the state, as the resolution
729-11 provides.
729-12 (e) A resolution authorizing bonds may contain provisions,
729-13 which shall be part of the contract between the authority and the
729-14 purchasers and successive holders of the bonds:
729-15 (1) reserving the right to redeem the bonds at the
729-16 time or times, in the amount and at the prices, not exceeding 105
729-17 percent of the principal amount of the bonds plus accrued interest,
729-18 as may be provided in the resolution;
729-19 (2) providing for the setting aside of sinking funds
729-20 or reserve funds and the regulation and disposition of the funds;
729-21 (3) pledging, to secure the payment of the principal
729-22 of and interest on the bonds and of the sinking fund or reserve
729-23 fund payments agreed to be made with respect to the bonds, all or
729-24 any part of the gross or net revenues received by the authority
729-25 with respect to the property, real, personal or mixed, to be
729-26 acquired or constructed with the bonds or the proceeds of the
730-1 bonds, or all or part of the gross or net revenues received by the
730-2 authority from any source;
730-3 (4) prescribing the purposes to which the bonds or any
730-4 bonds later issued, or the proceeds of the bonds, may be applied;
730-5 (5) agreeing to set and collect rates and charges
730-6 sufficient to produce revenues adequate to pay the items specified
730-7 in Section 276.012 (a) and prescribing the use and disposition of
730-8 all revenues;
730-9 (6) prescribing limitations on the issuance of
730-10 additional bonds and on the agreements that may be made with the
730-11 purchasers and successive holders of such bonds;
730-12 (7) relating to the construction, extension,
730-13 improvement, reconstruction, operation, maintenance, and repair of
730-14 the properties of the authority and the carrying of insurance, on
730-15 all or any part of the properties, covering loss or damage or loss
730-16 of use and occupancy resulting from specified risks;
730-17 (8) setting the procedure, if any, by which, if the
730-18 authority so desires, the terms of any contract with the holders of
730-19 the bonds may be amended or abrogated, the amount of bonds the
730-20 holders of which must consent to the amendment or abrogation, and
730-21 the manner in which such consent may be given;
730-22 (9) providing for the execution and delivery by the
730-23 authority to a bank or trust company authorized by law to accept
730-24 trusts, or to the United States or any officer or agency of the
730-25 United States, of indentures and agreements for the benefit of the
730-26 holders of the bonds setting forth all of the agreements authorized
731-1 by this chapter to be made with or for the benefit of the holders
731-2 of the bonds and other provisions as may be customary in indentures
731-3 or agreements; and
731-4 (10) making other provisions, not inconsistent with
731-5 the provisions of this chapter, as the board may approve.
731-6 Sec. 276.015. DEFAULT PROCEDURES. (a) A resolution
731-7 authorizing the issuance of bonds and any indenture or agreement
731-8 entered into pursuant to the resolution may include provisions
731-9 regarding a default on the:
731-10 (1) payment of the interest on any bonds as the
731-11 interest becomes due and payable;
731-12 (2) payment of the principal of any bonds as they
731-13 become due and payable, whether at maturity, by call for
731-14 redemption, or otherwise; or
731-15 (3) performance of an agreement made with the
731-16 purchasers or successive holders of any bonds.
731-17 (b) If a default described by Subsection (a) has occurred
731-18 and has continued for a period, if any, prescribed by the
731-19 resolution authorizing the issuance of the bonds, the trustee under
731-20 the indenture or indentures entered into with respect to the bonds
731-21 authorized by the resolution, or, if there is no indenture, a
731-22 trustee appointed in the manner provided in the resolution by the
731-23 holders of 25 percent in aggregate principal amount of the bonds
731-24 authorized by the resolution and then outstanding may, and on the
731-25 written request of the holders of 25 percent in aggregate principal
731-26 amount of the bonds authorized by the resolution and then
732-1 outstanding shall, in the trustee's own name but for the equal and
732-2 proportionate benefit of the holders of all the bonds, and with or
732-3 without having possession of the bonds:
732-4 (1) by mandamus or other suit, action, or proceeding
732-5 at law or in equity, enforce all rights of the holders of the
732-6 bonds;
732-7 (2) bring suit on the bonds or the appurtenant
732-8 coupons;
732-9 (3) by action or suit in equity, require the authority
732-10 to account as if it were the trustee of an express trust for the
732-11 bondholders;
732-12 (4) by action or suit in equity, enjoin any acts or
732-13 things which may be unlawful or in violation of the rights of the
732-14 holders of the bonds; or
732-15 (5) after such notice to the authority as the
732-16 resolution may provide, declare the principal of all of the bonds
732-17 due and payable, and if all defaults have been made good, then with
732-18 the written consent of the holders of 25 percent in aggregate
732-19 principal amount of the bonds then outstanding, annul the
732-20 declaration and its consequences; provided, however, that the
732-21 holders of more than a majority in principal amount of the bonds
732-22 authorized by the resolution and then outstanding shall, by written
732-23 instrument delivered to the trustee, have the right to direct and
732-24 control any and all action taken or to be taken by the trustee
732-25 under this section.
732-26 (c) A resolution, indenture, or agreement relating to bonds
733-1 may provide that in a suit, action, or proceeding under this
733-2 section, the trustee, whether or not all of the bonds have been
733-3 declared due and payable and with or without possession of any of
733-4 the bonds, shall be entitled as of right to the appointment of a
733-5 receiver who may enter and take possession of all or part of the
733-6 properties of the authority, operate and maintain the properties,
733-7 and set, collect, and receive rates and charges sufficient to
733-8 provide revenues adequate to pay the items set forth in Section
733-9 276.012(a) and the costs and disbursements of the suit, action, or
733-10 proceeding and apply such revenues in conformity with the
733-11 provisions of this chapter and the resolution authorizing the
733-12 bonds.
733-13 (d) In a suit, action, or proceeding by a trustee under this
733-14 section, the reasonable fees, counsel fees, and expenses of the
733-15 trustee and of the receiver or receivers, if any, shall constitute
733-16 taxable disbursements, and all costs and disbursements allowed by
733-17 the court shall be a first charge on any revenues pledged to secure
733-18 the payment of the bonds.
733-19 (e) Subject to the provisions of the constitution, the
733-20 courts of the county of domicile of the authority shall have
733-21 jurisdiction of a suit, action, or proceeding under this section by
733-22 a trustee on behalf of the bondholders and of all property involved
733-23 in the suit, action, or proceeding.
733-24 (f) In addition to the powers specifically provided by this
733-25 section, the trustee shall have all powers necessary or appropriate
733-26 for the exercise of the powers specific or incident to the general
734-1 representation of the bondholders in the enforcement of their
734-2 rights.
734-3 Sec. 276.016. BOND APPROVAL AND REGISTRATION. (a) Before
734-4 any bonds may be sold by the authority, a certified copy of the
734-5 proceedings for the issuance of the bonds, including the form of
734-6 the bonds, together with any other information that the attorney
734-7 general may require, shall be submitted to the attorney general,
734-8 and if the attorney general finds that the bonds have been issued
734-9 in accordance with law, the attorney general shall approve the
734-10 bonds and execute a certificate to that effect, which shall be
734-11 filed in the office of the comptroller and recorded in a record
734-12 kept for that purpose. The comptroller shall register the bonds if
734-13 the attorney general has filed with the comptroller the certificate
734-14 approving the bonds and the proceedings for the issuance of the
734-15 bonds as provided in this section. Bonds may not be issued until
734-16 the bonds have been registered by the comptroller.
734-17 (b) Bonds approved by the attorney general, registered by
734-18 the comptroller, and issued in accordance with the proceedings so
734-19 approved are valid and binding obligations of the authority and are
734-20 incontestable for any cause from and after the time of
734-21 registration.
734-22 Sec. 276.017. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued
734-23 by the authority under the provisions of this chapter are
734-24 negotiable instruments within the meaning of the laws of the state.
734-25 Sec. 276.018. ADDITIONAL POWERS RELATING TO CONTRACTS,
734-26 RULES, AND REGULATIONS. The authority may, without intending by
735-1 this provision to limit any powers granted to the authority by this
735-2 chapter, enter into and carry out contracts or establish or comply
735-3 with rules and regulations concerning labor and materials and other
735-4 related matters, in connection with any project, as the authority
735-5 considers desirable or as requested by the United States or any
735-6 corporation or agency created, designated, or established by the
735-7 United States that may assist in the financing of the project.
735-8 Sec. 276.019. REDEMPTION OF BONDS. The authority may, out
735-9 of funds available for the purpose, purchase bonds issued by it at
735-10 a price not exceeding the redemption price applicable at the time
735-11 of the purchase, or if the bonds are not redeemable, at a price not
735-12 exceeding the principal amount of the bonds plus accrued interest.
735-13 All bonds so purchased shall be canceled and no bonds shall ever be
735-14 issued in lieu of the canceled bonds.
735-15 Sec. 276.020. DISPOSITION OF PROPERTY. (a) Nothing in this
735-16 chapter shall be construed as authorizing the authority, and the
735-17 authority may not be authorized, to mortgage or otherwise encumber
735-18 any of its property of any kind, real, personal, or mixed, or any
735-19 interest in property, or to acquire any property or interest
735-20 subject to a mortgage or conditional sale, provided that this
735-21 section shall not be construed as preventing the pledging of the
735-22 revenues of the authority as authorized by this chapter.
735-23 (b) Nothing in this chapter shall be construed as
735-24 authorizing the sale, lease, or other disposition of any property
735-25 or interest by the authority or by any receiver of any of its
735-26 properties or through any court proceeding or otherwise; provided,
736-1 however, that the authority may sell for cash any property or
736-2 interest with an aggregate value not exceeding $50,000 in any one
736-3 year if the board, by the affirmative vote of six of its members,
736-4 has determined that the property or interest is not necessary or
736-5 convenient to the business of the authority and has approved the
736-6 terms of the sale. Except by sale as expressly authorized in this
736-7 section, no such property or interest shall ever come into the
736-8 ownership or control, directly or indirectly, of any person, firm,
736-9 or corporation other than a public authority created under the laws
736-10 of the state.
736-11 (c) All property of the authority shall be at all times
736-12 exempted from forced sale, and nothing in this chapter shall be
736-13 construed to authorize the sale of any of the property of the
736-14 authority under any judgment rendered in any suit, and such sales
736-15 are prohibited.
736-16 Sec. 276.021. PUBLIC ACCESS. (a) The authority may not
736-17 prevent the free public use of its lands for recreation purposes
736-18 and for hunting and fishing except:
736-19 (1) at points where, in the opinion of the board, the
736-20 use would interfere with the proper conduct of the business of the
736-21 authority; or
736-22 (2) in connection with the enforcement of sanitary
736-23 regulations or the protection of the public's health.
736-24 (b) Public rights-of-way traversing the areas adjacent to
736-25 the areas to be flooded by the impounded waters shall remain open
736-26 as a way of free public passage to and from the lakes created, and
737-1 no charge shall ever be made to the public for the right to engage
737-2 in hunting, fishing, boating, or swimming on the lakes.
737-3 (c) If any citizen of the state notifies the attorney
737-4 general that this section has not been complied with, the attorney
737-5 general shall institute the proper legal proceedings to require the
737-6 authority or its successor to comply with the provisions of this
737-7 section.
737-8 (d) If any of the land owned by the authority bordering the
737-9 lakes to be created under the authority of this chapter is sold by
737-10 the authority, the authority shall retain in each tract a strip 80
737-11 feet wide abutting the high-water line of the lake for the purpose
737-12 of passage and use by the public for public sports and amusements;
737-13 provided, however, that this subsection shall not apply to any
737-14 sales of land by the authority to any state or federal agency to be
737-15 used for game or fish sanctuaries or preserves or for propagation
737-16 purposes.
737-17 Sec. 276.022. BONDS EXEMPT FROM TAXATION. Bonds and
737-18 interest on bonds issued under the provisions of this chapter are
737-19 exempt from taxation, except inheritance taxes, by the state or by
737-20 any municipal corporation, county, or other political subdivision
737-21 or taxing district of the state.
737-22 Sec. 276.023. SOURCE OF AUTHORITY. This chapter, without
737-23 reference to other statutory provisions of the state, constitutes
737-24 full authority for the authorization and issuance of bonds under
737-25 this chapter, and no other act or law with regard to the
737-26 authorization or issuance of obligations or the deposit of the
738-1 proceeds of such obligations or in any way impeding or restricting
738-2 the carrying out of the acts authorized by this chapter to be done
738-3 shall be construed as applying to any proceedings taken or acts
738-4 done under this chapter.
738-5 Sec. 276.024. CONSTRUCTION. This chapter and all of its
738-6 terms and provisions shall be liberally construed to effectuate the
738-7 purposes set forth in this chapter.
738-8 CHAPTER 277. UPPER GUADALUPE RIVER AUTHORITY
738-9 Sec. 277.001. CREATION. (a) A conservation and reclamation
738-10 district to be known as the "Upper Guadalupe River Authority" is
738-11 created. The authority is a governmental agency and a body politic
738-12 and corporate.
738-13 (b) The authority is created under and is essential to
738-14 accomplish the purposes of Section 59, Article XVI, Texas
738-15 Constitution.
738-16 (c) All actions and proceedings taken by the authority
738-17 before the effective date of this chapter are validated.
738-18 Sec. 277.002. DEFINITIONS. In this chapter:
738-19 (1) "Authority" means the Upper Guadalupe River
738-20 Authority.
738-21 (2) "Board" means the board of directors of the
738-22 authority.
738-23 (3) "Director" means a member of the board.
738-24 Sec. 277.003. TERRITORY. The authority comprises all of the
738-25 territory contained within and has the same boundaries as Kerr
738-26 County.
739-1 Sec. 277.004. FINDING OF BENEFIT. The legislature finds and
739-2 determines that all of the land and other property included within
739-3 the area and boundaries of the authority will benefit from the
739-4 works and projects that are to be accomplished by the authority
739-5 pursuant to the powers conferred by the provisions of Section 59,
739-6 Article XVI, Texas Constitution, and that the authority is created
739-7 to serve a public use and benefit.
739-8 Sec. 277.005. GRANTS AND CONTRACTS. The authority may
739-9 accept grants from or contract with the United States government or
739-10 the state, any agency, arm, branch, department, or political
739-11 subdivision of the United States or the state, any municipality,
739-12 city, or town, or any public or private corporation, firm, or
739-13 person in connection with the exercise of or in aid of any right,
739-14 power, privilege, function, or authority of the authority.
739-15 Sec. 277.006. POWERS APPLICABLE TO WATER CONTROL AND
739-16 IMPROVEMENT DISTRICTS. The authority shall exercise all of the
739-17 rights, powers, privileges, authority, and duties conferred and
739-18 imposed by the general laws of the state applicable to water
739-19 control and improvement districts created under authority of
739-20 Section 59, Article XVI, Texas Constitution. To the extent that
739-21 general laws applicable to water control and improvement districts
739-22 may be in conflict or inconsistent with the provisions of this
739-23 chapter, the provisions of this chapter prevail. All general laws
739-24 of the state applicable to water control and improvement districts
739-25 created under authority of Section 59, Article XVI, Texas
739-26 Constitution, are adopted and incorporated by reference with the
740-1 same effect as if incorporated in full in this chapter.
740-2 Sec. 277.007. NO HEARING ON EXCLUSION OF LAND OR PLAN OF
740-3 TAXATION REQUIRED. (a) The board is not required to call or hold
740-4 a hearing on the exclusions of land or other property from the
740-5 authority.
740-6 (b) The board is not required to call or hold a hearing on
740-7 the adoption of a plan of taxation. The ad valorem plan of
740-8 taxation shall be used by the authority.
740-9 Sec. 277.008. BOARD OF DIRECTORS. (a) All powers of the
740-10 authority shall be exercised by a board of nine directors. Each
740-11 director serves for a term of office as provided by this section
740-12 and until a successor is appointed and has qualified. A person may
740-13 not be appointed a director unless the person is 21 years of age or
740-14 older and is a resident of Kerr County and owns land in the county.
740-15 Each director shall subscribe the oath of office and shall give
740-16 bond in the amount of $5,000 for the faithful performance of the
740-17 person's duties as director. The cost of the bond shall be borne
740-18 by the authority. A majority of directors constitutes a quorum.
740-19 (b) The directors are appointed by the governor. The
740-20 directors are appointed for staggered six-year terms, with three
740-21 directors' terms expiring on February 1 of each odd-numbered year.
740-22 The governor shall fill a vacancy on the board by appointment for
740-23 the unexpired term.
740-24 (c) The board shall elect from among its members a
740-25 president, a vice president, and a secretary and other officers the
740-26 board considers necessary. The president is the chief executive
741-1 officer of the authority and the presiding officer of the board and
741-2 has the same right to vote as any other director. The vice
741-3 president shall perform all duties and exercise all power conferred
741-4 by this chapter or general law on the president when the president
741-5 is absent or fails or declines to act. The secretary shall keep
741-6 and sign the minutes of the meetings of the board. In the absence
741-7 of the secretary from any board meeting, a secretary pro tempore
741-8 shall be named for that meeting, who may exercise all the duties
741-9 and powers of the secretary for the meeting, sign the minutes of
741-10 the meeting, and attest all orders passed or other action taken at
741-11 the meeting. The secretary is the custodian of all minutes and
741-12 records of the authority.
741-13 (d) The board shall appoint all necessary engineers,
741-14 attorneys, auditors, and other employees, including a general
741-15 manager.
741-16 (e) The board shall adopt a seal for the authority.
741-17 Sec. 277.009. CONSTRUCTION BONDS. Before issuing any
741-18 construction bonds, the authority shall submit plans and
741-19 specifications for the project to the commission for approval in
741-20 the manner required by Section 49.181, and the authority's project
741-21 and improvements during the course of construction shall be subject
741-22 to inspection in the manner provided by Section 49.182.
741-23 Sec. 277.010. AD VALOREM TAX; ELECTION. (a) The authority
741-24 may continue to levy an annual ad valorem tax not to exceed 5 cents
741-25 per $100 valuation. The authority may increase its ad valorem tax
741-26 rate and levy an ad valorem tax not to exceed 50 cents per $100
742-1 valuation if:
742-2 (1) a petition signed by five percent of the resident
742-3 qualified property taxpaying voters in the county is presented to
742-4 the board requesting that an election be called to determine
742-5 whether:
742-6 (A) a specified rate of tax may be levied by the
742-7 authority; or
742-8 (B) a tax not to exceed a specified rate may be
742-9 levied by the authority;
742-10 (2) the board calls an election to submit the question
742-11 to the resident qualified voters; and
742-12 (3) a majority of the qualified voters participating
742-13 in the election vote in favor of the tax.
742-14 (b) The election shall be called, conducted, and held, the
742-15 returns of the election shall be made, and all notices of the
742-16 election shall be given in the same mode and manner as required by
742-17 general law for bond elections in water control and improvement
742-18 districts.
742-19 (c) If a majority of the qualified voters participating in
742-20 the election vote in favor of the tax, the board may levy the
742-21 amount, or an amount not to exceed the amount, of tax specified in
742-22 the petition and order calling the election, provided the amount of
742-23 the tax does not exceed 50 cents per $100 valuation. The tax
742-24 authorized to be levied may be used to accomplish the purposes for
742-25 which the authority is created or may be pledged, without the
742-26 necessity of another election, to the payment of tax bonds for such
743-1 purposes in accordance with the general law governing water control
743-2 and improvement districts. The tax bonds must mature within 40
743-3 years of their date. Other limitations of this chapter do not
743-4 apply to the amount of bonds to be issued by the authority provided
743-5 the bonds and the interest on the bonds may be paid within the
743-6 limits of the tax authorized. The bonds shall be issued in
743-7 conformity with the law governing water control and improvement
743-8 districts except as modified by the provisions of this chapter.
743-9 (d) If taxes are levied, the values of the property in the
743-10 authority shall be the same values that are shown on the county tax
743-11 rolls, and the provisions of the general law with reference to
743-12 water control and improvement districts shall govern the
743-13 appointment, qualification, and duties of the authority's tax
743-14 assessor.
743-15 Sec. 277.011. BOND ELECTIONS. (a) If the constitution or
743-16 this chapter requires a bond proposition to be approved by a
743-17 majority of the qualified voters voting at an election called for
743-18 that purpose before bonds or other obligations may be issued or
743-19 taxes levied, the election must be called and held and notice must
743-20 be given as required by this section.
743-21 (b) An election to authorize the issuance of bonds is not
743-22 required if:
743-23 (1) the bonds to be issued are payable from revenues
743-24 of a system or facilities of the authority and the board finds and
743-25 determines that the proceeds of the bonds proposed to be issued
743-26 will provide less than $2 million for the purpose of acquiring land
744-1 or acquiring or constructing the facilities, excluding the cost of
744-2 issuance, interest during construction, and any initial deposit
744-3 from those proceeds to a reserve fund; and
744-4 (2) the proceeds of the bonds will be used to:
744-5 (A) acquire land or an interest in land and to
744-6 construct or acquire new facilities in the nature of a new project
744-7 or undertaking for the authority, subject to the limitation that
744-8 with respect to a new project or undertaking for the authority only
744-9 one series of bonds may be issued to provide for the project unless
744-10 additional bonds are approved at an election by a majority of the
744-11 participating qualified voters;
744-12 (B) provide funds for repairs, expansion, and
744-13 improvement of the existing facilities of the authority; or
744-14 (C) provide for the completion of construction
744-15 of a project for which the authority has previously issued bonds
744-16 approved at an election.
744-17 (c) Except as provided by Subsection (b), bonds may not be
744-18 issued by the authority unless an election is held in the authority
744-19 to approve issuance of the bonds and the issuance of the bonds is
744-20 approved by a majority of the qualified voters voting at the
744-21 election. The board must issue the order calling the election not
744-22 less than 15 or more than 90 days before the date the election is
744-23 to be held.
744-24 (d) Notice of an election under Subsection (c) must be given
744-25 by posting a copy of the notice of election in at least three
744-26 public places within the authority at least 14 days before the date
745-1 of the election and by publishing the notice at least once a week
745-2 for two consecutive weeks in a newspaper with general circulation
745-3 in the authority, the date of the first publication to be at least
745-4 14 days before the election.
745-5 Sec. 277.012. APPLICABILITY OF OTHER LAW. (a) The
745-6 authority is a conservation and reclamation district under Section
745-7 59, Article XVI, Texas Constitution, and shall conserve and develop
745-8 the natural resources of this state within the authority. The
745-9 authority may exercise the powers necessary to accomplish each of
745-10 the rights and duties specified in Section 59, Article XVI, Texas
745-11 Constitution, as provided by Chapters 49, 50, 51, and 54. The
745-12 authority may construct or acquire those projects that the board
745-13 determines are needed and incident to or related to the performance
745-14 of those rights and duties.
745-15 (b) The authority is a district under Chapter 30, and that
745-16 chapter applies to the authority except to the extent that Chapter
745-17 30 conflicts with this chapter, in which case this chapter
745-18 prevails. All cities, public agencies, and other political
745-19 subdivisions are authorized to contract with the authority in any
745-20 manner authorized by Chapter 30, provided that any city may
745-21 contract with the authority in the manner authorized by Section
745-22 30.030(c). The authority and all cities, public agencies, and
745-23 other political subdivisions contracting with the authority have
745-24 all of the rights and authority relating to the control, storage,
745-25 preservation, transmission, treatment, and disposition of storm
745-26 water, floodwater, water of rivers and streams, and groundwater
746-1 that are granted, permitted, and authorized by Chapter 30.
746-2 Sec. 277.013. POWER TO BORROW MONEY. (a) The authority may
746-3 borrow money for any corporate purpose or combination of corporate
746-4 purposes pursuant to the methods and procedures specifically
746-5 provided by this chapter or by general law.
746-6 (b) The board, without the necessity of an election, may
746-7 borrow money on negotiable notes of the authority to be paid solely
746-8 from the revenues of the authority derived from the ownership of
746-9 all or a designated part of the authority's works, plant,
746-10 improvements, facilities, equipment, or water rights, after
746-11 deduction of the reasonable cost of maintaining and operating the
746-12 facilities.
746-13 (c) A note or notes issued under this section may not exceed
746-14 $55 million in the aggregate.
746-15 (d) The notes may mature over a term of not more than 40
746-16 years and bear interest at a rate of not more than 10 percent.
746-17 (e) The notes may be first or subordinate lien notes within
746-18 the discretion of the board, but no obligation may be a charge on
746-19 the property of the authority or on the taxes levied or collected
746-20 by the authority, but shall be a charge on the revenues pledged for
746-21 the payment of the obligation. No part of the obligation may be
746-22 paid from the taxes levied or collected by the authority.
746-23 (f) Section 49.153 does not apply to any revenue note issued
746-24 by the authority.
746-25 Sec. 277.014. VALIDITY OF BONDS. If bonds or refunding
746-26 bonds have been approved by the attorney general, registered by the
747-1 comptroller, and issued by the authority, the bonds or refunding
747-2 bonds are negotiable, legal, valid, and binding obligations of the
747-3 authority and are incontestable for any cause.
747-4 Sec. 277.015. EMINENT DOMAIN. If the authority, in the
747-5 exercise of the power of eminent domain or police power or any
747-6 other power, requires the relocation, raising, lowering, rerouting,
747-7 change in grade, or alteration in construction of any railroad,
747-8 electric transmission, telegraph, or telephone lines, conduits,
747-9 poles, properties, or facilities, or pipelines, all such
747-10 relocation, raising, lowering, rerouting, changes in grade, or
747-11 alteration of construction shall be accomplished at the sole
747-12 expense of the authority. In this section, "sole expense" means
747-13 the actual cost of relocation, raising, lowering, rerouting, change
747-14 in grade, or alteration of construction in providing comparable
747-15 replacement without enhancement of the facilities, after deducting
747-16 the net salvage value derived from the old facility.
747-17 Sec. 277.016. CERTAIN MUNICIPAL ANNEXATION PROVISIONS NOT
747-18 APPLICABLE. The authority is created notwithstanding any
747-19 conflicting provisions of Section 212.003, Local Government Code,
747-20 and Chapters 42 and 43, Local Government Code, and those provisions
747-21 have no application to the authority.
747-22 Sec. 277.017. AUTHORITY DEPOSITORY. The board shall select
747-23 a bank or trust company in the state to act as depository of the
747-24 proceeds of the bonds or revenues derived from the operation of the
747-25 facilities of the authority. The depository shall furnish
747-26 indemnity bonds or pledge securities or meet other requirements as
748-1 determined by the board. The authority may select one or more
748-2 depositories.
748-3 Sec. 277.018. ADDITIONAL SPECIFIC POWERS. (a) The
748-4 authority has the right, power, privilege, function, and authority
748-5 to control, develop, store, and preserve the waters and floodwaters
748-6 of the Upper Guadalupe River and its tributaries within or outside
748-7 the boundaries of the authority for any beneficial or useful
748-8 purpose; to purchase, acquire, build, construct, improve, extend,
748-9 reconstruct, repair, and maintain all dams, structures, waterworks
748-10 systems, sanitary or storm sewer or drainage or irrigation systems,
748-11 buildings, waterways, pipelines, distribution systems, ditches,
748-12 lakes, ponds, reservoirs, plants, and recreational facilities for
748-13 public use and any other facilities or equipment in aid of such
748-14 purposes; to purchase or acquire the necessary sites, easements,
748-15 rights-of-way, land, or other properties necessary for those
748-16 purposes; and to do anything, by any practical means, that may be
748-17 necessary to the exercise of all of the rights, powers, privileges,
748-18 functions, and authority of the authority. The authority may sell
748-19 water and other services.
748-20 (b) As a necessary aid to the conservation, control,
748-21 preservation, and distribution of the waters and floodwaters of the
748-22 Upper Guadalupe River and its tributaries for beneficial use, the
748-23 authority may construct, own, and operate sewage gathering,
748-24 transmission, and disposal services, may charge for those services,
748-25 and may make contracts with municipalities and others in reference
748-26 to those services.
749-1 Sec. 277.019. ISSUANCE OF BONDS. (a) In addition to the
749-2 powers and purposes authorized by other statutory provisions
749-3 pertaining to water control and improvement districts created under
749-4 Section 59, Article XVI, Texas Constitution, the authority may
749-5 issue any kind of bonds or refunding bonds for any purposes
749-6 provided by this chapter and may provide and make payment for the
749-7 bonds and for necessary expenses in connection with the bonds.
749-8 (b) Bonds or refunding bonds may be sold at a price and
749-9 under terms determined by the board. Bonds and refunding bonds may
749-10 be sold at a private or public sale but may not be sold for less
749-11 than 95 percent of their face value. The authority may exchange
749-12 bonds or refunding bonds for property or facilities acquired by
749-13 purchase or in payment of the contract price of work done or
749-14 materials furnished or services furnished for the use and benefit
749-15 of the authority, but such exchange or payment may not be on a
749-16 basis of less than 95 percent of the face value of the bonds or
749-17 refunding bonds exchanged or used for payment as provided by this
749-18 subsection.
749-19 Sec. 277.020. DISSOLUTION OF AUTHORITY NOT REQUIRED. The
749-20 provisions of Sections 51.781-51.783 or any other statutory
749-21 provisions pertaining to the calling of a hearing for the
749-22 determination of the dissolution of a district where a bond
749-23 election has failed shall not apply to the authority, and the
749-24 authority shall continue to exist and have full power to function
749-25 and operate regardless of the outcome of a bond election. On the
749-26 failure of a bond election, a subsequent bond election may be
750-1 called after the expiration of 30 days from the date of the bond
750-2 election that failed.
750-3 Sec. 277.021. NOTICE OF ELECTIONS. Notice of all elections
750-4 may be signed by either the president or the secretary of the
750-5 authority.
750-6 Sec. 277.022. ELECTION RETURNS. The returns of all
750-7 elections may be canvassed by the board at any time within seven
750-8 days after an election or as soon thereafter as reasonably
750-9 practicable.
750-10 Sec. 277.023. EXEMPTION FROM TAXATION. The accomplishment
750-11 of the purposes of this chapter will benefit the people of this
750-12 state and improve their properties and industries, and the
750-13 authority in carrying out the purposes of this chapter will be
750-14 performing an essential public function under Section 59, Article
750-15 XVI, Texas Constitution, and shall not be required to pay any tax
750-16 or assessment on a project or any part of a project under this
750-17 chapter or on any purchases made by the authority, and the bonds
750-18 issued under this chapter and the transfer of and income from the
750-19 bonds, including the profits made on the sale of the bonds, shall
750-20 at all times be free from taxation within the state.
750-21 Sec. 277.024. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
750-22 DEPOSITS. Bonds and refunding bonds of the authority are legal,
750-23 eligible, and authorized investments for banks, savings and loan
750-24 associations, insurance companies, fiduciaries, trustees, and
750-25 guardians and for the sinking funds of cities, towns, villages,
750-26 counties, school districts, or other political corporations or
751-1 subdivisions of the state. The bonds and refunding bonds are
751-2 eligible to secure deposits of all public funds of cities, towns,
751-3 villages, counties, school districts, or other political
751-4 corporations or subdivisions of the state, and the bonds are lawful
751-5 and sufficient security for such deposits to the extent of their
751-6 face value when accompanied by all unmatured coupons.
751-7 Sec. 277.025. TRANSFERS; SEVERABILITY. (a) All files and
751-8 records of the authority pertaining to control, management, and
751-9 operation of the district are transferred to the authority on the
751-10 effective date of this chapter.
751-11 (b) All real and personal property, leases, rights,
751-12 licenses, permits, contracts, staff, and obligations of the
751-13 authority, including any revenue notes issued prior to the
751-14 effective date of this chapter, shall be transferred to the
751-15 authority on the effective date of this chapter.
751-16 (c) All unobligated and unexpended funds of the authority
751-17 shall be transferred to the authority on the effective date of this
751-18 chapter.
751-19 (d) A rule or regulation adopted by the authority before the
751-20 effective date of this chapter is, on the effective date of this
751-21 chapter a rule or regulation of the authority and remains in effect
751-22 until amended or repealed by the authority.
751-23 (e) The provisions of this chapter are severable. If any
751-24 section, subsection, provision or part of this chapter should be
751-25 held invalid, it shall not affect the validity of the remaining
751-26 portions of this chapter.
752-1 CHAPTER 278. UPPER NECHES RIVER MUNICIPAL WATER AUTHORITY
752-2 Sec. 278.001. CREATION. (a) A conservation and reclamation
752-3 district to be known as the "Upper Neches River Municipal Water
752-4 Authority" is created. The authority is a governmental agency and
752-5 body politic and corporate.
752-6 (b) The authority is created under and is essential to
752-7 accomplish the purposes of Section 59, Article XVI, Texas
752-8 Constitution.
752-9 (c) The authority may exercise all rights, powers,
752-10 privileges, and functions as provided in this chapter and as may be
752-11 contemplated and implied by Section 59, Article XVI, Texas
752-12 Constitution, as well as those conferred by the general laws of the
752-13 state relating to water control and improvement districts except
752-14 where such laws are in conflict with the provisions of this
752-15 chapter.
752-16 Sec. 278.002. DEFINITIONS. In this chapter:
752-17 (1) "Authority" means the Upper Neches River Municipal
752-18 Water Authority.
752-19 (2) "Board" means the board of directors of the
752-20 authority.
752-21 (3) "Director" means a member of the board.
752-22 Sec. 278.003. TERRITORY. The area of the authority
752-23 comprises all territory contained within the corporate limits of
752-24 the city of Palestine, Anderson County, and no defect or
752-25 irregularity in the boundaries of that city or in any of the
752-26 proceedings relating to the annexation of territory to that city
753-1 shall ever affect the authority or any of its rights, powers,
753-2 privileges, or functions, it being affirmatively found and
753-3 determined by the legislature that all of the territory within the
753-4 limits of the city of Palestine, Anderson County, as well as all
753-5 other territory which later may be brought into the authority as
753-6 provided by Sections 278.007 and 278.008 shall comprise the
753-7 authority and that all of such territory will benefit from the
753-8 improvements and facilities to be constructed, acquired, or
753-9 otherwise furnished under this chapter.
753-10 Sec. 278.004. BOARD OF DIRECTORS. (a) The powers of the
753-11 authority shall be exercised by a board of directors. The
753-12 directors shall be appointed by the governor with the advice and
753-13 consent of the senate.
753-14 (b) Directors are appointed for staggered terms of six
753-15 years, with one-third of the directors' terms expiring on February
753-16 1 of each odd-numbered year. Directors serve until their
753-17 successors are appointed and have qualified. Any vacancy on the
753-18 board is filled by the governor as provided by this section.
753-19 (c) Three directors shall be appointed to the board from the
753-20 city of Palestine, Anderson County.
753-21 (d) If the city of Tyler, Smith County, becomes a part of
753-22 the authority by annexation as provided by Sections 278.007 or
753-23 278.008, a number of directors shall be appointed to the board from
753-24 that city equal to the combined number of directors appointed from
753-25 all other cities then members of the authority, and if the
753-26 membership of the board is increased after the entry of the city of
754-1 Tyler by the addition of directors from any other area, the number
754-2 of directors from the city of Tyler shall be increased so that the
754-3 number shall always equal one-half of the entire membership of the
754-4 board.
754-5 (e) If the city of Athens, Henderson County, becomes a part
754-6 of the authority by annexation as provided by Sections 278.007 or
754-7 278.008, three directors shall be appointed to the board from that
754-8 city.
754-9 (f) The additional directors to which the city of Tyler and
754-10 the city of Athens are entitled shall be appointed by the governor
754-11 with the advice and consent of the senate, with their respective
754-12 initial terms staggered and of such duration as will permit the
754-13 appointment of their successors at the same time as successors of
754-14 the other members then comprising the board, with one-third of the
754-15 number of directors to which each city is entitled to be appointed
754-16 from that city for each term. The governor, with the advice and
754-17 consent of the senate, shall appoint all successors to the
754-18 directors.
754-19 Sec. 278.005. QUALIFICATIONS OF BOARD MEMBERS. (a) To be
754-20 qualified for appointment to the board, a person must be a
754-21 qualified voter and property-owning taxpayer in the city from which
754-22 the person is appointed.
754-23 (b) A member of the governing body or an employee of a city
754-24 from which the person is appointed is not eligible to serve on the
754-25 board.
754-26 (c) Each director shall subscribe the constitutional oath of
755-1 office and give bond for the faithful performance of the director's
755-2 duties in the amount of $5,000.
755-3 Sec. 278.006. BOARD: ACTION; DUTIES; QUORUM; COMPENSATION;
755-4 EXPENSES. (a) The board shall perform official actions by
755-5 resolution. Two-thirds of the members of the board constitutes a
755-6 quorum for the transaction of any and all business of the
755-7 authority. A majority vote of those present shall be sufficient in
755-8 all official actions including final passage and enactment of all
755-9 resolutions.
755-10 (b) The board shall hold regular meetings at least once
755-11 every three months. The date of the meeting is to be established
755-12 in the authority's bylaws or by resolution of the board.
755-13 (c) The president or any two members of the board may call
755-14 special meetings as may be necessary in the administration of the
755-15 business of the authority; provided, however, that at least five
755-16 days before the date of the meeting, the secretary shall mail
755-17 notice of the meeting to the address that each director has on file
755-18 with the secretary. Notice of special meetings may be waived in
755-19 writing by any director.
755-20 (d) Each director is entitled to receive fees of office and
755-21 reimbursement of expenses as provided by Chapter 49.
755-22 (e) The board shall elect from among its members a president
755-23 of the authority. The president is the chief executive officer of
755-24 the authority and shall preside at the meetings of the board and
755-25 perform all other functions incident to the office.
755-26 (f) The board shall elect from among its members a vice
756-1 president. The vice president shall act as president in case of
756-2 the inability, absence, or failure of the president to act.
756-3 (g) The board shall elect a secretary, who may or may not be
756-4 chosen from among the members of the board. The secretary shall be
756-5 charged with the duty of seeing that all books and records of the
756-6 authority are properly kept.
756-7 Sec. 278.007. ADDITIONAL TERRITORY MAY BE ADDED. (a) Other
756-8 territory may be annexed to the authority as provided in this
756-9 section and Section 278.008.
756-10 (b) A petition for annexation must:
756-11 (1) be signed by 50 or a majority of the qualified
756-12 voters of the territory to be annexed who own taxable property in
756-13 the territory to be annexed and have duly rendered the property for
756-14 taxation to the city or county;
756-15 (2) be filed with the board; and
756-16 (3) describe the territory to be annexed by metes and
756-17 bounds or by other appropriate description, unless the territory is
756-18 the same as that of a city or town, in which event it shall be
756-19 sufficient to state that the territory to be annexed is the same as
756-20 that contained within the city or town.
756-21 (c) If the board finds that the petition is signed by the
756-22 required number of qualified persons and otherwise complies with
756-23 Subsection (b), that the annexation would be to the interest of the
756-24 territory to be annexed and the authority, and that the authority
756-25 will be able to render service to the territory to be annexed, the
756-26 board shall call an election in the territory to be annexed for the
757-1 purpose of submitting the proposition of whether the territory
757-2 shall be annexed to the authority; provided, however, that if
757-3 either the city of Tyler, Smith County, or the city of Athens,
757-4 Henderson County, files a petition for annexation to the authority
757-5 in the manner provided in this section, the petition shall be
757-6 granted and the city filing the petition shall be entitled to
757-7 annexation, subject to the other provisions of this section.
757-8 (d) Because railroad right-of-way, transmission lines, and
757-9 other property of electric, telephone, telegraph, and gas utilities
757-10 that are not situated within the defined limits of an incorporated
757-11 city or town will not benefit from the improvements, works, and
757-12 facilities that the authority is authorized to construct, railroad
757-13 right-of-way, transmission lines, or other property of electric,
757-14 telephone, telegraph, or gas utilities may not be annexed to the
757-15 authority unless the right-of-way, transmission lines, or other
757-16 property of electric, telephone, telegraph, and gas utilities is
757-17 contained within the limits of an incorporated city or town annexed
757-18 to the authority.
757-19 (e) Notice of the election, stating the date and places for
757-20 holding the election, the proposition to be voted on, and the
757-21 conditions under which the territory may be annexed, or making
757-22 reference to the resolution of the board for that purpose, must be
757-23 published once a week for two consecutive weeks in a newspaper
757-24 published in the territory to be annexed and designated by the
757-25 board. The first publication must appear at least 14 days before
757-26 the date of the election. If no newspaper is published in the
758-1 territory to be annexed, it shall be sufficient if notices are
758-2 posted at three public places in the territory to be annexed and
758-3 published at the times provided by this subsection in a newspaper
758-4 having general circulation in the territory.
758-5 (f) Only qualified electors who reside in the territory to
758-6 be annexed shall be qualified to vote in the election on the
758-7 proposition for annexation. As in the case of other elections to
758-8 be held under this chapter, the returns of the annexation election
758-9 shall be made to the board.
758-10 (g) The board shall canvass the returns of the election and
758-11 adopt a resolution declaring the results. If the resolution shows
758-12 that a majority of the votes cast are in favor of annexation, the
758-13 board shall enter an order annexing the territory to the authority,
758-14 and the annexation shall be incontestable except in the manner and
758-15 within the time for contesting elections under the Election Code.
758-16 A certified copy of the order shall be recorded in the deed records
758-17 of the county in which the annexed territory is situated.
758-18 Sec. 278.008. ANNEXATION OF TERRITORY AFTER BONDS OR TAXES
758-19 APPROVED. (a) If, before calling an election for the annexation
758-20 of territory, the authority to levy ad valorem taxes has been voted
758-21 in the authority, if bonds or other obligations supported wholly or
758-22 in part by ad valorem taxes have been issued and are outstanding,
758-23 or if bonds or other obligations so supported have been voted but
758-24 remain unsold, the procedure for annexation and the results of the
758-25 procedure shall be as provided by this section.
758-26 (b) On receipt of the petition for annexation as provided by
759-1 Sections 278.007(b) and (c), the board shall by appropriate
759-2 resolution or order call an election to be held in the territory to
759-3 be annexed and shall issue and publish notices as provided by
759-4 Section 278.007(e).
759-5 (c) The persons eligible to vote at the election shall be
759-6 qualified electors who reside in the territory to be annexed.
759-7 (d) In calling the election in the territory to be annexed,
759-8 the board shall submit as one joint proposition to be voted on in
759-9 the territory the question of whether the territory shall be
759-10 annexed and whether it shall assume its pro rata share of any ad
759-11 valorem taxes previously voted, of any bonds or other obligations
759-12 of the authority supported in whole or in part by ad valorem taxes
759-13 then outstanding and unpaid, and of any bonds or other obligations
759-14 so supported that have been voted but that remain unissued and
759-15 unsold.
759-16 (e) If the joint proposition submitted under Subsection (d)
759-17 receives a majority of the votes cast in the territory to be
759-18 annexed, the board shall enter an order or resolution annexing the
759-19 territory and declaring the assumption by the territory annexed of
759-20 ad valorem taxes and tax-supported bonds issued or authorized, and
759-21 the annexation and assumption shall be incontestable except in the
759-22 manner and within the time for contesting elections under the
759-23 Election Code.
759-24 Sec. 278.009. ASSUMPTION OF DEBT; TAXES. (a) After
759-25 territory is added to the authority, the board may call an election
759-26 over the entire authority for the purpose of determining whether
760-1 the entire authority as enlarged shall assume the taxes and
760-2 tax-supported obligations then outstanding and in force, and, in
760-3 the case of bonds, those voted but not yet sold, and whether ad
760-4 valorem taxes shall be levied on all taxable property within the
760-5 authority as enlarged for the payment of the obligations and bonds,
760-6 unless that proposition was favorably voted along with the
760-7 annexation election and becomes lawfully binding on the territory
760-8 annexed.
760-9 (b) Notice of the elections provided for in this section
760-10 must be given and the elections must be held in the same manner as
760-11 elections for the issuance of bonds as provided by this chapter.
760-12 Sec. 278.010. GENERAL MANAGER; EMPLOYEES. (a) The board
760-13 may employ and determine the compensation of a general manager for
760-14 the authority and may delegate to the general manager full power
760-15 and authority to manage and operate the affairs of the authority,
760-16 subject only to orders of the board. The board may also employ and
760-17 determine the compensation of such other employees as it considers
760-18 appropriate to the proper conduct of the authority's affairs,
760-19 including engineers, technical experts, attorneys, and assistants
760-20 to the authority's officers including the general manager. The
760-21 board may remove any employee.
760-22 (b) The general manager is the official treasurer of the
760-23 authority and has charge of its funds. The general manager shall
760-24 see that the funds are safely kept and shall account for the funds
760-25 to the board. The general manager shall give bond in an amount
760-26 required by the board, but in no event shall the amount be less
761-1 than $50,000.
761-2 Sec. 278.011. DISBURSEMENT OF FUNDS. The funds of the
761-3 authority shall be disbursed only on checks, drafts, orders, or
761-4 other instruments signed by the persons authorized by the bylaws
761-5 and resolutions of the board.
761-6 Sec. 278.012. CITIES AND TOWNS MAY GIVE FINANCIAL AID TO
761-7 AUTHORITY. In consideration of the fact that the authority may be
761-8 incurring obligations and making expenditures, before funds are
761-9 available to pay such obligations and expenditures, for the purpose
761-10 of providing funds needed to procure necessary engineering surveys
761-11 and the collection and compilation of data relating to general
761-12 conditions influencing the determination of the character and
761-13 extent of the improvements, works, and facilities essential to the
761-14 accomplishment of the purposes of the authority, any city or town
761-15 situated within the authority may expend funds or use its services
761-16 for such engineering surveys and data. Any city or town situated
761-17 within the authority may appropriate money from its general funds
761-18 or such other funds as may be legally available for the purpose and
761-19 donate and contribute money to the authority, and the authority may
761-20 contract with any such city or town to repay money advanced as a
761-21 loan to the authority.
761-22 Sec. 278.013. AUTHORITY OFFICE; RECORDS. A regular office
761-23 shall be established and maintained for the conduct of the
761-24 authority's business at a location to be determined by the board.
761-25 The board shall keep a true and full account of the proceedings of
761-26 its meetings and shall maintain its records in a secure manner.
762-1 Sec. 278.014. ACCOUNT RECORDS; AUDITS. (a) The board shall
762-2 keep complete and accurate accounts conforming to approved methods
762-3 of bookkeeping. The accounts and all contracts, documents, and
762-4 records of the authority shall be kept at the authority's principal
762-5 office and shall be open to public inspection at all reasonable
762-6 times.
762-7 (b) Within 90 days after the end of each calendar year, the
762-8 books of account and financial records of the authority for the
762-9 preceding calendar year shall be audited by an independent
762-10 certified public accountant. Copies of the written report of the
762-11 audit, certified to by the accountant, shall be placed and kept on
762-12 file at the office of the authority and shall be open to public
762-13 inspection at all reasonable times.
762-14 Sec. 278.015. AUTHORITY DEPOSITORY; METHOD OF SELECTION.
762-15 (a) The board shall designate one or more banks within the
762-16 authority to serve as depository for the funds of the authority.
762-17 All funds of the authority shall be deposited in the depository
762-18 bank or banks except funds pledged to pay bonds, which shall be
762-19 deposited with the trustee bank or paying agent named in the bond
762-20 proceedings and to the extent provided for in those proceedings.
762-21 To the extent that funds in the depository bank and the trustee
762-22 bank are not insured by the Federal Deposit Insurance Corporation
762-23 the funds shall be secured in the manner provided by law for the
762-24 security of county funds.
762-25 (b) Before designating a depository bank or banks, the board
762-26 shall issue a notice stating the time and place the board will meet
763-1 to designate a depository bank or banks and inviting the banks in
763-2 the authority to submit applications to be designated depositories.
763-3 The notice must be published one time in a newspaper or newspapers
763-4 published in the authority as specified by the board at least 10
763-5 days before the date of the board meeting.
763-6 (c) At the time mentioned in the notice, the board shall
763-7 consider the applications and the management and condition of the
763-8 banks filing them and shall designate as depositories the bank or
763-9 banks which offer the most favorable terms and conditions for the
763-10 handling of the funds of the authority and which the board finds
763-11 have proper management and are in condition to warrant handling the
763-12 funds of the authority.
763-13 (d) If no acceptable applications are received by the time
763-14 stated in the notice, the board shall designate some bank or banks
763-15 within or outside the authority on such terms and conditions as it
763-16 finds advantageous to the authority.
763-17 (e) The term of service for depositories shall be prescribed
763-18 by the board.
763-19 Sec. 278.016. POWERS AND DUTIES. (a) In addition to the
763-20 powers granted water control and improvement districts by general
763-21 law and in addition to the powers otherwise provided by this
763-22 chapter, the authority may exercise the powers, rights, privileges,
763-23 and functions provided by this section.
763-24 (b) The authority may store, control, conserve, protect,
763-25 distribute, and utilize storm waters and floodwaters and
763-26 unappropriated flow waters of the Neches River and such portions of
764-1 its tributaries as are located within Smith, Cherokee, Anderson,
764-2 and Henderson counties, except that portion of the drainage area of
764-3 Flat Creek in Henderson County which lies west of presently
764-4 designated Farm-to-Market Road 607 leading from LaRue through
764-5 Leagueville to Brownsboro, by construction of a dam or dams across
764-6 that river and its tributaries within the counties or as otherwise
764-7 provided by the applicable provisions of this code in order that
764-8 the escape of any such waters, without first obtaining from them
764-9 the maximum of public benefit, may be prevented in so far as it is
764-10 feasible and practicable within the means of the authority, except
764-11 that the authority may not build a dam or dams outside the
764-12 boundaries of Smith, Cherokee, Anderson, and Henderson counties.
764-13 (c) The authority may acquire and develop underground
764-14 sources of water in such instances and to such extent as the board
764-15 may consider necessary and feasible in the conduct of its business
764-16 and affairs, but only within Smith, Cherokee, Anderson, and
764-17 Henderson counties. The authority may acquire by purchase,
764-18 contract, lease, gift, or any other lawful manner and may develop
764-19 all facilities within Smith, Cherokee, Anderson, and Henderson
764-20 counties considered necessary or useful for the purpose of
764-21 diverting, storing, controlling, conserving, protecting,
764-22 distributing, processing, and utilizing surface water or
764-23 groundwater and the transportation of such water for municipal,
764-24 domestic, industrial, and other useful purposes permitted by law.
764-25 The authority may not acquire any water rights in or exercise any
764-26 control over the water in that portion of the drainage area of Flat
765-1 Creek in Henderson County that lies west of Farm-to-Market Road 607
765-2 leading from LaRue through Leagueville to Brownsboro.
765-3 (d) The authority may acquire by purchase, construction,
765-4 lease, or gift or in any other lawful manner and may maintain, use,
765-5 and operate property of any kind, real, personal, or mixed, or any
765-6 interest in property, within and outside the boundaries of the
765-7 authority necessary to the exercise of the powers, rights,
765-8 privileges, and functions possessed by the authority under this
765-9 chapter.
765-10 (e) The authority may acquire by condemnation to the extent
765-11 and in the manner set forth and permitted by general law, including
765-12 Chapter 21, Property Code, any property or right in property
765-13 necessary to be acquired by the authority with respect to any
765-14 project that it is lawfully empowered to provide and that has been
765-15 approved by the commission or a predecessor agency under the
765-16 provisions of general law including the provisions of Sections
765-17 49.181 and 49.182; provided, however, that the authority may not
765-18 condemn any property or right in property that is owned by any
765-19 other political subdivision, city, or town of this state; and
765-20 provided further, that the authority may not condemn any property
765-21 lying outside of Smith, Cherokee, Anderson, and Henderson counties
765-22 except for the purpose of constructing necessary transportation
765-23 facilities to a purchaser of water from the authority.
765-24 (f) The authority may sell or otherwise dispose of excess
765-25 property of any kind, real, personal, or mixed, or any interest in
765-26 property not necessary to the operation of the authority; provided,
766-1 however, that in those cases in which the board considers the value
766-2 of such property to be in excess of $1,000, the property shall be
766-3 sold only after advertisement and competitive bidding.
766-4 (g) The authority may require the relocation of roads and
766-5 highways in the manner and to the extent permitted by general law
766-6 to districts organized under Section 59, Article XVI, Texas
766-7 Constitution. The actual cost of relocation of any roads,
766-8 highways, or railroads or electrical highlines, pipelines,
766-9 telephone and telegraph lines, or other utility lines in
766-10 furtherance of the purposes of this chapter and any damage incurred
766-11 in changing and adjusting the lines and grades of railroads or
766-12 highways or roads shall be paid by the authority.
766-13 (h) The authority may make contracts and execute all
766-14 instruments necessary or convenient to the exercise of the powers,
766-15 rights, privileges, and functions of the authority.
766-16 (i) The authority may make or cause to be made surveys and
766-17 engineering investigations for the information of the authority to
766-18 facilitate the accomplishment of the purposes for which it is
766-19 created.
766-20 (j) The authority may borrow money for its corporate
766-21 purposes and may borrow money and accept grants, gratuities, or
766-22 other support from the United States or the state or from any
766-23 corporation or agency created or designated by the United States or
766-24 the state and, in connection with any such loan, grant, or other
766-25 support, may enter into such arrangement with the United States or
766-26 the state, or such corporation or agency of either, as the
767-1 authority may consider advisable.
767-2 (k) The authority may make and issue negotiable bonds for
767-3 funds borrowed in the manner and to the extent provided by this
767-4 chapter and may contract in any manner required by law with regard
767-5 to loans, grants, or other support received from the United States
767-6 or the state or from any corporation or agency of either.
767-7 (l) The authority may make such contracts in the issuance of
767-8 bonds as are considered necessary to ensure the marketability of
767-9 the bonds.
767-10 (m) The authority may sue or be sued in its corporate name.
767-11 (n) The authority may adopt, use, and alter a corporate
767-12 seal.
767-13 (o) The authority may make bylaws for the management and
767-14 regulation of its affairs.
767-15 (p) The authority may set and collect charges and rates for
767-16 water services furnished by it and may impose penalties for failure
767-17 to pay such charges and rates when due.
767-18 (q) The authority may cooperate with and enter into
767-19 contracts with cities, persons, firms, corporations, and public
767-20 agencies for the purpose of supplying and selling them water for
767-21 municipal, domestic, industrial, and other useful purposes
767-22 permitted by law; provided, however, that cities and areas
767-23 constituting the authority shall be accorded priority in the
767-24 allocation of the authority's available water, and the board shall
767-25 prescribe rules to effectuate this provision. A contract described
767-26 by this section may be on such terms and for such time as the
768-1 parties may agree, and it may provide that it shall continue in
768-2 effect until the authority's bonds specified in the contract and
768-3 refunding bonds issued in lieu of the bonds are fully paid. If the
768-4 authority pledges the proceeds of water contracts with its
768-5 constituent cities to the payment of any bonds supported in whole
768-6 or in part by revenues and issued by the authority to finance the
768-7 construction of a water supply or transportation facility for such
768-8 cities, the authority shall not be obligated to construct or
768-9 otherwise provide the facility to any constituent city that, for
768-10 any reason, fails to enter into such contract. If the authority
768-11 enters into a contract with the United States government or any of
768-12 its agencies for a source of water supply or for the furnishing of
768-13 any facilities necessary or useful to the authority in carrying out
768-14 its purposes, the contract entered into under authority of this
768-15 subsection may provide that the contract shall continue until the
768-16 authority has fully discharged all obligations incurred by it under
768-17 the terms of its contract with the United States government or its
768-18 agencies.
768-19 (r) The authority may contract with any city, district, or
768-20 governmental agency, including the United States government or any
768-21 of its agencies, for the rental or leasing of or for the operation
768-22 of their water production, water supply, and water filtration or
768-23 purification and water supply facilities for such consideration as
768-24 may be mutually agreeable.
768-25 (s) The authority may purchase water or a water supply from
768-26 any person, firm, corporation, or public agency or from the United
769-1 States government or any of its agencies.
769-2 (t) The authority may operate and maintain, with the consent
769-3 of the governing body of any city or town located within the
769-4 authority, any works, plants, or facilities of the city or town
769-5 deemed necessary to the accomplishment of the purposes for which
769-6 the authority is created.
769-7 (u) The authority may levy, assess, and collect ad valorem
769-8 taxes to provide funds necessary to construct or acquire, maintain,
769-9 and operate improvements, works, plants, and facilities deemed
769-10 essential and beneficial to the authority on a favorable majority
769-11 vote of the qualified electors voting at an election held for that
769-12 purpose within the authority and may also, when so authorized,
769-13 levy, assess, and collect taxes to provide funds adequate to defray
769-14 the cost of the maintenance, operation, and administration of the
769-15 authority. Elections for the voting of such taxes shall be ordered
769-16 by the board and shall be held and conducted as provided by this
769-17 chapter for elections for the issuance of bonds and the levy of
769-18 taxes in support of the bonds. When so levied such taxes, as well
769-19 as taxes authorized by this chapter to be levied in support of bond
769-20 indebtedness, constitute a lien on the property against which such
769-21 taxes are levied and assessed, and limitations shall not bar the
769-22 collection and enforcement thereof.
769-23 (v) The authority may do any and all acts or things
769-24 necessary to the exercise of the powers, rights, privileges, or
769-25 functions conferred on the authority or permitted by any other law.
769-26 Sec. 278.017. CONSTRUCTION OR PURCHASE CONTRACTS. A
770-1 contract requiring an expenditure of more than $25,000 shall not be
770-2 made until after publication of a notice to bidders once each week
770-3 for two weeks before the awarding of the contract. The notice is
770-4 sufficient if it states the time and place when and where the bids
770-5 will be opened and the general nature of the work to be done or the
770-6 material, equipment, or supplies to be purchased and states when
770-7 and on what terms copies of the plans and specifications may be
770-8 obtained. The publication shall be in a newspaper published in the
770-9 authority as designated by the board.
770-10 Sec. 278.018. BOND ISSUANCE. (a) For the purpose of
770-11 providing a source or sources of water supply for its cities or
770-12 towns and other users of water for municipal, domestic, and other
770-13 useful purposes permitted by law and for the purpose of carrying
770-14 out any other power or authority conferred by this chapter, the
770-15 authority may issue and sell negotiable bonds to be payable from
770-16 the net operating income and revenues of the authority received
770-17 from any or all of its properties, as the board may determine, or
770-18 from ad valorem taxes, or from both such revenues and taxes as are
770-19 pledged by the board; provided, however, that without limiting in
770-20 any way the amount of revenue-supported bonds that may be
770-21 authorized, issued, and sold by the authority for any authorized
770-22 purpose, the amount of bonds that the authority may issue and sell
770-23 supported in whole or in part by ad valorem taxes shall never
770-24 exceed the total principal amount of $6.5 million. All or any
770-25 portion of the limited amount may be issued and sold by the
770-26 authority for the purpose of providing funds with which to acquire
771-1 and construct the authority's Blackburn Crossing Project; to wit, a
771-2 dam and reservoir at or near the point on the Neches River commonly
771-3 known and referred to in the area as "Blackburn Crossing." On
771-4 completion of the ultimate acquisition and construction of the
771-5 Blackburn Crossing Project in accordance with plans and
771-6 specifications of the authority's engineers approved by the board,
771-7 including provisions for all property of every kind and character,
771-8 real, personal, or mixed, or any interest in property, necessary or
771-9 convenient for the full development of that project and including
771-10 any additions or modifications approved by the board and the
771-11 commission, no further bonds supported in whole or in part by ad
771-12 valorem taxes shall be issued or sold for any purpose. The
771-13 authority is empowered to acquire and construct the Blackburn
771-14 Crossing Project in phases or stages and all decisions in this
771-15 respect rest with the board. Within the limitations provided by
771-16 this section, the board is authorized to submit to elections and to
771-17 issue and sell all or any part of the bonds required to accomplish
771-18 the ultimate acquisition and construction of the Blackburn Crossing
771-19 Project at any stage of construction or development.
771-20 (b) Bonds must be authorized by resolution of the board,
771-21 bear the date or dates, mature at the time or times, and bear
771-22 interest at the rate or rates as the board determines. The bonds
771-23 shall be signed by the president and attested by the secretary and
771-24 shall have the seal of the authority impressed on the bonds. Bonds
771-25 may be sold at prices and under terms determined by the board to be
771-26 the most advantageous and reasonably obtainable; provided, however,
772-1 that the interest cost to the authority, calculated by use of
772-2 standard bond interest tables currently in use by insurance
772-3 companies and investment houses, may not exceed six percent per
772-4 year. Within the discretion of the board, bonds may be made
772-5 callable and subject to redemption prior to their maturity at the
772-6 times and prices as may be prescribed in the authorizing
772-7 resolution. Interest on all bonds shall be payable annually or
772-8 semiannually within the discretion of the board. Bonds may be
772-9 issued in one or more than one series and from time to time as
772-10 required in carrying out the purposes of this chapter. The bonds
772-11 must be in the form, either coupon or registered, must carry the
772-12 registration privileges as to principal only or as to both
772-13 principal and interest and as to exchange of coupon bonds for
772-14 registered bonds, or vice versa, and exchange of bonds of one
772-15 denomination for bonds of other denominations, and must be payable
772-16 at the place or places within or outside of this state as the board
772-17 determines and prescribes in the resolution authorizing the bonds.
772-18 (c) Bonds may be secured by a pledge of all or part of the
772-19 net revenues of the authority, of the net revenues of one or more
772-20 contracts made before or after the bonds are issued, or of other
772-21 revenues in the manner specified by resolution of the board. A
772-22 pledge may reserve the right, under conditions specified in the
772-23 pledge, to issue additional bonds that will be on a parity with or
772-24 subordinate to the bonds being issued. In this section, "net
772-25 revenues" means the gross revenues of the authority less the amount
772-26 necessary to pay the cost of maintaining and operating the
773-1 authority and its properties.
773-2 (d) If bonds are issued payable wholly or partially from ad
773-3 valorem taxes, the board shall levy a tax sufficient to pay the
773-4 bonds and the interest on the bonds as the bonds and interest
773-5 become due, but the rate of the tax for any year may be set after
773-6 giving consideration to the money received from the pledged
773-7 revenues available for the payment of principal and interest to the
773-8 extent and in the manner permitted by the resolution authorizing
773-9 the issuance of the bonds.
773-10 (e) If bonds or any other contract payable from revenues are
773-11 issued or entered into, the board shall set by contract, with all
773-12 cities, persons, firms, corporations, or public agencies that
773-13 contract with the board for a water supply or water facilities,
773-14 rates or compensation for water sold and services furnished by the
773-15 authority sufficient to pay the expenses of operating and
773-16 maintaining the authority and its facilities and to pay all such
773-17 obligations incurred by the authority as they mature, including
773-18 reserve and other funds as may be provided for the bonds or other
773-19 contracts under the terms of the bonds or contracts and as may be
773-20 provided in the resolution of the board pertaining to the bonds or
773-21 contracts.
773-22 (f) From the proceeds of the sale of bonds, the authority
773-23 may set aside an amount for the payment of interest expected to
773-24 accrue during construction and a reserve interest and sinking fund,
773-25 which provisions shall be made in the resolution authorizing the
773-26 bonds. Proceeds from the sale of bonds may also be used for the
774-1 payment of all expenses necessarily incurred in accomplishing the
774-2 purposes for which the authority is created, including expenses of
774-3 issuing and selling the bonds. Pending the use of bond proceeds
774-4 for the purpose for which the bonds were issued, the board may
774-5 invest the proceeds in obligations of the United States government.
774-6 (g) In the event of a default in the payment of principal of
774-7 or interest on bonds payable wholly or partially from revenues of
774-8 the authority, any court of competent jurisdiction in this state
774-9 may, on petition of the holders of 25 percent of the outstanding
774-10 bonds of the issue in default, appoint a receiver with authority to
774-11 collect and receive all income of the authority except taxes, to
774-12 employ and discharge agents and employees of the authority, to take
774-13 charge of the authority's funds on hand (except funds received from
774-14 taxes, unless commingled), and to manage the proprietary affairs of
774-15 the authority without consent or hindrance by the board. The
774-16 receiver may also be authorized to sell or make contracts for the
774-17 sale of water or to renew the contracts with the approval of the
774-18 court appointing the receiver.
774-19 (h) Bonds issued by the authority under this chapter are
774-20 negotiable instruments under the laws of this state.
774-21 (i) Before bonds are sold by the authority, a certified copy
774-22 of the proceedings for the issuance of the bonds, including the
774-23 form of the bonds, together with any other information that the
774-24 attorney general may require, shall be submitted to the attorney
774-25 general, and if the attorney general finds that the bonds have been
774-26 issued in accordance with the law, the attorney general shall
775-1 approve the bonds and execute a certificate of approval, which
775-2 shall be filed in the office of the comptroller and be recorded in
775-3 a record kept for that purpose. No bonds shall be issued until the
775-4 bonds have been registered by the comptroller, who shall register
775-5 the bonds if the attorney general has filed with the comptroller
775-6 the certificate approving the bonds and the proceedings for the
775-7 issuance of the bonds as provided in this section. If the bonds or
775-8 the proceedings pertaining to the bonds recite that the bonds are
775-9 secured by a pledge of the proceeds of a contract previously made
775-10 between the authority and a city, district, or other user, a copy
775-11 of the contract and proceedings of the contracting parties shall be
775-12 submitted to the attorney general with the bond record, and if the
775-13 bonds have been duly authorized and the contract has been made in
775-14 compliance with law, the attorney general shall approve the bonds
775-15 and contract, and the bonds shall then be registered by the
775-16 comptroller. When approved as provided by this subsection, the
775-17 bonds and the contract are valid and binding and are incontestable
775-18 for any cause. If the authority has issued bonds, including
775-19 interim or temporary bonds, or has contracted with the United
775-20 States government or with the state, or with any corporation or
775-21 agency of either, in connection with the financing of its works or
775-22 facilities, the authority may validate the bonds or contract by
775-23 suit in the manner and with the same effect as provided by Sections
775-24 51.423-51.431.
775-25 (j) Pending the issuance of definitive bonds, the authority
775-26 may issue and deliver interim or temporary bonds. The interim or
776-1 temporary bonds issued may be redeemed with the proceeds of the
776-2 definitive bonds, or the definitive bonds may be issued and
776-3 delivered in exchange for and in substitution of the interim or
776-4 temporary bonds. After the exchange and substitution, the
776-5 authority shall file proper certificates with the comptroller as to
776-6 the exchange, substitution, and cancellation. The certificates
776-7 shall be recorded by the comptroller.
776-8 Sec. 278.019. REFUNDING BONDS. (a) The board may issue
776-9 refunding bonds for the purpose of refunding any outstanding bonds
776-10 authorized by this chapter and interest on the bonds without the
776-11 necessity of an election. Refunding bonds may be issued to refund
776-12 more than one series of outstanding bonds, and in the case of bonds
776-13 secured in whole or in part by net revenues, the authority may
776-14 combine the pledges for the outstanding bonds for the security of
776-15 the refunding bonds and may secure the refunding bonds by other or
776-16 additional revenues.
776-17 (b) The provisions of this chapter with reference to the
776-18 issuance of other bonds and their approval by the attorney general
776-19 and the rights and remedies of the holders shall be applicable to
776-20 refunding bonds. Refunding bonds shall be registered by the
776-21 comptroller on surrender and cancellation of the bonds to be
776-22 refunded, but in lieu of that procedure, the resolution authorizing
776-23 the issuance of the refunding bonds may provide that the bonds
776-24 shall be sold and the proceeds of the sale deposited in the bank
776-25 where the original bonds are payable, in which case the refunding
776-26 bonds may be issued in an amount sufficient to pay the interest on
777-1 the original bonds to their option date or maturity date, and the
777-2 comptroller shall register the refunding bonds without concurrent
777-3 surrender and cancellation of the original bonds.
777-4 Sec. 278.020. TRUST INDENTURE FOR BONDS. (a) Bonds,
777-5 including refunding bonds, authorized by this chapter that are not
777-6 payable wholly from ad valorem taxes may be additionally secured by
777-7 a trust indenture under which the trustee may be a bank with trust
777-8 powers located either within or outside the state. The trust
777-9 indenture or mortgage may include provisions for a lien on all or
777-10 any part of the physical properties of the authority, and
777-11 franchises, easements, water rights and appropriation permits,
777-12 leases, contracts, and all rights appurtenant to the properties,
777-13 vesting in the trustee power to sell the properties for payment of
777-14 the indebtedness, power to operate the properties, and all other
777-15 powers and authority for the further security of the bonds.
777-16 (b) The trust indenture, regardless of the existence of a
777-17 deed of trust lien, may contain any provisions prescribed by the
777-18 board for the security of the bonds and the preservation of the
777-19 trust estate, including provision for amendment or modification of
777-20 the indenture and the issuance of bonds to replace lost or
777-21 mutilated bonds secured by the indenture.
777-22 (c) A purchaser under a sale under a deed of trust lien,
777-23 where one is given, shall be the owner of the properties,
777-24 facilities, and rights purchased and shall have the right to
777-25 maintain and operate the properties, facilities, and rights during
777-26 the period prescribed by the trust indenture.
778-1 (d) The authority may not issue bonds secured by a deed of
778-2 trust or mortgage on any properties previously acquired unless the
778-3 proposition for the issuance of the bonds is authorized by election
778-4 in the manner provided in this chapter for the authorization of
778-5 bonds secured in whole or in part by ad valorem taxes.
778-6 Sec. 278.021. BOND ELECTIONS. (a) Bonds payable wholly
778-7 from the authority's net revenues or from the proceeds of any water
778-8 contract or by any means other than ad valorem taxes may be issued
778-9 pursuant to a resolution of the board without the necessity of a
778-10 hearing or election.
778-11 (b) Bonds payable wholly or partially from ad valorem taxes,
778-12 except refunding bonds, shall not be issued unless authorized by an
778-13 election at which only the qualified voters who reside in the
778-14 authority shall be qualified to vote and a majority of the votes
778-15 cast at the election is in favor of the issuance of the bonds.
778-16 (c) Bond elections may be called by the board without a
778-17 petition. The resolution calling the election shall specify the
778-18 time and places of holding the election, the purpose for which the
778-19 bonds are to be issued, the maximum amount, maximum maturity, and
778-20 maximum interest rate of the bonds, the form of the ballot, and the
778-21 presiding judge for each voting place. The presiding judge serving
778-22 at each voting place shall appoint the necessary assistant judges
778-23 and clerks for holding the election. Notice of the election must
778-24 be given by publishing a substantial copy of the resolution calling
778-25 the election in a newspaper or newspapers of general circulation in
778-26 each city contained in the authority once each week for three
779-1 consecutive weeks. The first publication must be at least 21 days
779-2 before the date of the election.
779-3 (d) The returns of the bond election must be made to and
779-4 canvassed by the board.
779-5 (e) The Election Code applies to bond elections held under
779-6 this section except as otherwise provided by this chapter.
779-7 Sec. 278.022. EXCLUSION OF LAND OR OTHER PROPERTY NOT
779-8 REQUIRED. The provisions of Subchapter J, Chapter 49, or other
779-9 general laws relating to the exclusion of lands or other property
779-10 from a water control and improvement district shall not be
779-11 applicable to the authority.
779-12 Sec. 278.023. CONTRACTS WITH UNITED STATES OR ITS AGENCIES;
779-13 ELECTIONS. (a) The authority may contract with the United States
779-14 government or any of its agencies under the federal reclamation
779-15 laws for the construction, operation, and maintenance of any work
779-16 or facility by which water may be supplied and distributed to the
779-17 authority or under any act of congress providing or permitting the
779-18 contract and shall have all the rights, powers, privileges, and
779-19 authority granted water improvement districts and water control and
779-20 improvement districts under the general laws of the state with
779-21 regard to such contracts. Any contract entered into shall reserve
779-22 to the authority all water rights that it may obtain under permits
779-23 granted by the commission and shall provide that title to all
779-24 facilities constructed under the terms of the contract shall pass
779-25 to the authority or its designee or designees on payment to the
779-26 United States government of all obligations incurred in connection
780-1 with the project.
780-2 (b) If a proposed contract between the authority and the
780-3 United States government or any of its agencies would obligate the
780-4 authority to make payments wholly or partially from ad valorem
780-5 taxes, the contract may not be entered into unless authorized by an
780-6 election at which only the qualified voters who reside in the
780-7 authority shall be qualified to vote and a majority of the votes
780-8 cast at the election is in favor of the execution of the contract.
780-9 All procedures prescribed in Section 278.021 relating to the voting
780-10 of bonds supported in whole or in part by ad valorem taxes apply to
780-11 the voting of contracts under this section.
780-12 (c) If the authority enters into a contract with the United
780-13 States government or any of its agencies as provided by this
780-14 section, no subsequent alteration in the organization of the
780-15 authority shall be effected and no proceedings for the exclusion of
780-16 any area of the authority shall be undertaken under the provisions
780-17 of any law until the alteration or exclusion has received the
780-18 approval of the United States government or its contracting agency.
780-19 Sec. 278.024. AUTHORITY TO ACQUIRE AND OWN WATER PERMITS.
780-20 The authority may acquire and own water appropriation permits
780-21 directly from the commission. On application filed in compliance
780-22 with the provisions of Chapter 11 relating to acquisition of water
780-23 appropriation permits the commission may grant to the authority
780-24 permits to take unappropriated water of the Neches River in Texas
780-25 and its tributaries.
780-26 Sec. 278.025. BONDS AS INVESTMENTS AND SECURITY FOR
781-1 DEPOSITS. (a) All bonds of the authority are legal and authorized
781-2 investments for banks, savings banks, trust companies, building and
781-3 loan associations, savings and loan associations, insurance
781-4 companies, fiduciaries, trustees, and guardians, for the sinking
781-5 funds of cities, towns, villages, counties, school districts, or
781-6 other political subdivisions of the state, and for public funds of
781-7 the state or its agencies including the state permanent school
781-8 fund.
781-9 (b) Authority bonds are eligible to secure the deposit of
781-10 public funds of the state and of public funds of cities, towns,
781-11 villages, counties, school districts, or other political
781-12 subdivisions or corporations of the state. The bonds are lawful
781-13 and sufficient security for the deposits to the extent of the value
781-14 of the bonds if the bonds are accompanied by all unmatured coupons.
781-15 Sec. 278.026. BONDS EXEMPT FROM TAXATION. The
781-16 accomplishment of the purposes of this chapter is for the benefit
781-17 of the people of this state and for the improvement of their
781-18 properties and industry, and the authority, in carrying out the
781-19 purposes of this chapter, will be performing an essential public
781-20 function under the constitution and shall not be required to pay
781-21 any tax or assessment on a project or any part of a project under
781-22 this chapter. The bonds or other obligations issued under this
781-23 chapter and the transfer of and income from the bonds, including
781-24 the profits on the sale of the bonds, shall at all times be free
781-25 from taxation by the state or by any municipal corporation, county,
781-26 or other political subdivision or taxing district of the state.
782-1 Sec. 278.027. TAXATION. Before the issuance of bonds or the
782-2 execution of a contract payable wholly or partially from ad valorem
782-3 taxes, the board shall appoint a tax assessor and collector and a
782-4 board of equalization and shall cause taxes to be assessed,
782-5 valuations to be equalized, and tax rolls to be prepared. The
782-6 board may also appoint deputies to assist the tax assessor and
782-7 collector in such manner and for such period as the board may
782-8 order. Where applicable and not in conflict with this section, the
782-9 general laws relating to water control and improvement districts
782-10 with reference to tax assessors and collectors, boards of
782-11 equalization, tax rolls, and the levy and collection of taxes and
782-12 delinquent taxes shall be applicable to the authority, except that
782-13 the board of equalization, to be appointed each year by the board,
782-14 shall consist of one member residing in each city contained in the
782-15 authority. All taxes to be levied, assessed, and collected by the
782-16 authority shall be on an ad valorem basis, and all provisions of
782-17 the general laws pertaining to the levy, assessment, and collection
782-18 of ad valorem taxes by water control and improvement districts,
782-19 including the enforcement of those provisions and the processes for
782-20 the collection of delinquent taxes provided in the provisions,
782-21 shall be applicable to the authority.
782-22 Sec. 278.028. ADOPTION OF RULES AND REGULATIONS. The board
782-23 may adopt and promulgate all reasonable rules and regulations to
782-24 secure, maintain, and preserve the sanitary condition of all water
782-25 in and to flow into any reservoir owned by the authority, or which
782-26 it may control by contract or otherwise, to prevent the waste or
783-1 the unauthorized use of water, and to regulate residence, hunting,
783-2 fishing, boating, and camping, and all recreational and business
783-3 privileges, along or around any reservoir or any body of land or
783-4 easement owned or controlled by the authority.
783-5 Sec. 278.029. RECREATIONAL FACILITIES. The authority may
783-6 establish or otherwise provide for public parks and recreation
783-7 facilities and may acquire land adjacent to any reservoir in which
783-8 the authority owns water storage rights to provide for the parks or
783-9 facilities; provided, however, that no money received from taxation
783-10 or from bonds payable wholly or partially from taxation shall be
783-11 used to provide the parks or facilities. The authority may
783-12 contract for the lease of lands acquired by the authority for
783-13 recreation or concession purposes under terms determined by the
783-14 board.
783-15 Sec. 278.030. VOTING PLACES. For all elections conducted
783-16 under the provisions of this chapter, the voting places shall be
783-17 determined by the board for each election; provided, however, that
783-18 one or more voting places shall be designated for each constituent
783-19 city or town and for each separate area not located within a city
783-20 or town comprising a part of the authority.
783-21 Sec. 278.031. TERRITORY DETACHED FROM OTHER DISTRICT OR
783-22 AUTHORITY. The authority created by this chapter shall be in
783-23 addition to all districts or authorities into which the state has
783-24 been previously divided, and the territory of the authority
783-25 existing at any time under the provisions of this chapter is
783-26 declared to be detached from all other districts or authorities
784-1 established under Section 59, Article XVI, Texas Constitution. The
784-2 authority has the power and right to coordinate its plans with any
784-3 other conservation, reclamation, or other district previously
784-4 created with powers provided by Section 59, Article XVI, Texas
784-5 Constitution, and shall have full authority, power, and right to
784-6 enter into joint undertakings for the purposes for which the
784-7 districts are created; provided, however, that all such acts must
784-8 be approved by a majority of the board of directors of each
784-9 district or authority involved.
784-10 Sec. 278.032. BONDS OF OFFICERS AND EMPLOYEES. All bonds
784-11 required to be given by officers and employees of the authority
784-12 shall be executed by a surety company authorized to do business in
784-13 the state. The authority may pay the premiums on the bonds.
784-14 Sec. 278.033. GENERAL LAWS APPLICABLE WHERE NOT IN CONFLICT.
784-15 (a) All powers conferred by the general laws of this state
784-16 pertaining to water control and improvement districts shall be
784-17 applicable to the authority to the extent that those powers are not
784-18 in conflict with the provisions of this chapter.
784-19 (b) Nothing in this chapter shall be construed to violate
784-20 any provision of the federal or state constitutions, and all acts
784-21 done under this chapter shall be done in conformity with those
784-22 constitutions, whether or not expressly provided in this chapter.
784-23 If any procedure under this chapter is held by any court to violate
784-24 either constitution, the authority may by resolution provide an
784-25 alternative procedure conforming to the constitutions.
784-26 Sec. 278.034. BOND NOT REQUIRED. The authority shall not be
785-1 required to give a cost or supersedeas bond or to pay a cost
785-2 deposit on any appeal from the judgment of any court of this state.
785-3 Sec. 278.035. AUTHORITY DECLARED ESSENTIAL. The legislature
785-4 declares that the enactment of this chapter is in fulfillment of a
785-5 duty conferred on the legislature by Section 59, Article XVI, Texas
785-6 Constitution, which provides that the legislature is empowered to
785-7 pass laws appropriate in the preservation and conservation of the
785-8 natural resources of the state; that the authority created in this
785-9 chapter is essential to the accomplishment of the purposes of
785-10 Section 59, Article XVI, Texas Constitution; and that this chapter
785-11 concerns and addresses a subject in which the state at large is
785-12 interested. The terms and provisions of this chapter are to be
785-13 liberally construed in order to carry out the purposes set forth in
785-14 this chapter.
785-15 Sec. 278.036. SCOPE OF AUTHORITY. The exercise of all
785-16 powers granted to the authority under this chapter pertaining to
785-17 the construction and operation of its facilities, including the
785-18 authority's right of eminent domain, shall be limited only as
785-19 provided by Section 278.016(e).
785-20 CHAPTER 279. WEST CENTRAL TEXAS MUNICIPAL WATER DISTRICT
785-21 Sec. 279.001. CREATION. (a) A conservation and reclamation
785-22 district to be known as the "West Central Texas Municipal Water
785-23 District" is created. The district is a governmental agency and a
785-24 body politic and corporate.
785-25 (b) The district is created under and is essential to
785-26 accomplish the purposes of Section 59, Article XVI, Texas
786-1 Constitution.
786-2 Sec. 279.002. DEFINITIONS. In this chapter:
786-3 (1) "Board" means the board of directors of the
786-4 district.
786-5 (2) "Director" means a member of the board.
786-6 (3) "District" means the West Central Texas Municipal
786-7 Water District.
786-8 Sec. 279.003. BOUNDARIES. (a) The boundaries of the
786-9 district include all the territory within the boundaries of the
786-10 cities of Abilene, Albany, Anson, and Breckenridge on January 1,
786-11 1985. A defect in the definition of the boundaries of any of those
786-12 cities does not affect the validity of the district or any of its
786-13 powers or duties.
786-14 (b) The legislature finds that all territory within the
786-15 boundaries of the district does and will benefit from the present
786-16 and contemplated improvements, works, and facilities of the
786-17 district.
786-18 (c) The district may only annex territories as provided by
786-19 Sections 279.007 and 279.008.
786-20 Sec. 279.004. BOARD OF DIRECTORS. (a) All powers of the
786-21 district shall be exercised by a board of directors. Each director
786-22 is appointed by majority vote of the governing body of the city in
786-23 which the director resides.
786-24 (b) The number of directors to be appointed from each city
786-25 in the district shall be governed by the population of the city,
786-26 with:
787-1 (1) each city having a population of 10,000 or less
787-2 appointing two directors; and
787-3 (2) each city having a population of more than 10,000
787-4 appointing two directors plus one director for each 10,000
787-5 population or part of 10,000 population over 10,000, provided,
787-6 however, that no city shall appoint more than one-half of the
787-7 members of the board.
787-8 (c) In May of each year the governing body of each city that
787-9 is entitled to appoint more than one director shall appoint not
787-10 less than one director for a two-year term beginning June 1 of that
787-11 year. The first director from any city annexed to the district
787-12 that is entitled to only one director may be appointed for a term
787-13 ending on a May 31 not more than two years from the date of
787-14 appointment.
787-15 (d) Each director serves for a term of office as provided by
787-16 this section and until a successor is appointed and has qualified.
787-17 (e) A director must reside in and own taxable property in
787-18 the city from which the director is appointed. A member of a
787-19 governing body of a city or an employee of a city is not eligible
787-20 to serve as a director.
787-21 (f) A director shall subscribe the constitutional oath of
787-22 office and shall give bond for the faithful performance of the
787-23 director's duties in the amount of $5,000, the cost of which shall
787-24 be paid by the district.
787-25 (g) A majority of the members of the board constitutes a
787-26 quorum.
788-1 (h) If a director moves from the city from which the
788-2 director is appointed, the governing body of the city shall appoint
788-3 a successor for the unexpired term.
788-4 Sec. 279.005. FEES. Except as otherwise provided by Section
788-5 49.060 or other applicable law, each director is entitled to the
788-6 following compensation:
788-7 (1) a fee not to exceed $50 for attending each board
788-8 or committee meeting; and
788-9 (2) a fee not to exceed $50 per day for each day
788-10 devoted to the business of the district, other than attendance at a
788-11 board or committee meeting, and reimbursement for actual expenses
788-12 incurred in attending to district business provided that such
788-13 service and expense are expressly approved by the board.
788-14 Sec. 279.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
788-15 shall elect from among its members a president and a vice president
788-16 of the district and other officers as in the judgment of the board
788-17 are necessary.
788-18 (b) The president is the chief executive officer of the
788-19 district and the presiding officer of the board and has the same
788-20 right to vote as any other director.
788-21 (c) The vice president shall perform all duties and exercise
788-22 all powers conferred by this chapter on the president when the
788-23 president is absent or fails or declines to act except the
788-24 president's right to vote.
788-25 (d) The board shall appoint a secretary and a treasurer who
788-26 may or may not be members of the board and may combine those
789-1 offices. The treasurer must give bond in such amount as may be
789-2 required by the board. The bond must be conditioned on the
789-3 treasurer accounting for all money that comes into the treasurer's
789-4 custody as treasurer of the district.
789-5 (e) The board shall appoint necessary engineers, attorneys,
789-6 and other employees and employ a general manager. The general
789-7 manager may employ and discharge employees.
789-8 (f) The board shall adopt a seal for the district.
789-9 Sec. 279.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
789-10 (a) Other territory situated within the counties of Taylor, Jones,
789-11 Shackelford, and Stephens may be annexed to the district as
789-12 provided by this section.
789-13 (b) A petition for annexation must:
789-14 (1) be signed by 50 or a majority, whichever number is
789-15 less, of the qualified voters of the territory to be annexed who
789-16 own taxable property in the territory being annexed and who have
789-17 duly rendered the property to the city, if situated within a city
789-18 or town, or county for taxation;
789-19 (2) be filed with the board; and
789-20 (3) describe the territory to be annexed by metes and
789-21 bounds or otherwise unless the territory is the same as that
789-22 contained in a city or town, in which event it shall be sufficient
789-23 to state that the territory to be annexed is that which is
789-24 contained within the city or town.
789-25 (c) If the board finds that the petition complies with and
789-26 is signed by the number of qualified persons required under
790-1 Subsection (b), that the annexation would be to the interest of the
790-2 territory to be annexed and the district, and that the district
790-3 will be able to supply water to the territory to be annexed, or
790-4 cause water to be supplied to the territory to be annexed, the
790-5 board shall adopt a resolution stating the conditions, if any,
790-6 under which territory may be annexed to the district and requesting
790-7 the commission to annex the territory to the district. The
790-8 resolution shall be conclusive of the legal sufficiency of the
790-9 petition and the qualifications of the signers of the petition. A
790-10 certified copy of the resolution and of the petition shall be filed
790-11 with the commission.
790-12 (d) The commission shall adopt a resolution declaring its
790-13 intention to call an election in the territory to be annexed for
790-14 the purpose of submitting the proposition of whether the territory
790-15 shall be annexed to the district. The commission shall set a time
790-16 and place for a hearing to be held by the commission on the
790-17 question of whether the territory to be annexed will benefit from
790-18 the improvements, works, and facilities then owned or operated or
790-19 contemplated to be owned or operated by the district or by the
790-20 other functions of the district. A railroad right-of-way that is
790-21 not situated within the defined limits of an incorporated city or
790-22 town will not benefit from the improvements, works, and facilities
790-23 that the district is authorized to construct. A railroad
790-24 right-of-way may not be annexed to the district unless the
790-25 right-of-way is contained within the limits of an incorporated city
790-26 or town that has been annexed to the district.
791-1 (e) Notice of the adoption of the resolution stating the
791-2 time and place of the hearing and addressed to the citizens and
791-3 owners of property in the territory to be annexed must be published
791-4 one time in a newspaper designated by the commission at least 10
791-5 days before the date of the hearing. The notice must describe the
791-6 territory to be annexed in the same manner in which it is required
791-7 or permitted by this chapter to be described in the petition.
791-8 (f) All interested persons may appear at the hearing and
791-9 offer evidence for or against the intended annexation. The hearing
791-10 may proceed in the order and under the rules prescribed by the
791-11 commission and may be recessed from time to time. If, at the
791-12 conclusion of the hearing, the commission finds that all the lands
791-13 in the territory to be annexed will benefit from the present or
791-14 contemplated improvements, works, or facilities of the district,
791-15 the commission shall adopt a resolution calling an election in the
791-16 territory to be annexed stating the date and place or places for
791-17 holding the election and appointing a presiding judge for each
791-18 voting place who shall appoint the necessary assistant judges and
791-19 clerks to assist in holding the election.
791-20 (g) Notice of the election, stating the date of the
791-21 election, the proposition to be voted on and the conditions under
791-22 which the territory shall be qualified to be annexed, or making
791-23 reference to the resolution of the board for that purpose, and the
791-24 place or places for holding the election, shall be published one
791-25 time in a newspaper designated by the commission at least 10 days
791-26 before the date set for the election.
792-1 (h) Only qualified voters who reside in the territory to be
792-2 annexed may vote in the election. Returns of the election shall be
792-3 made to the commission.
792-4 (i) The board shall canvass the returns of the election and
792-5 certify the returns to the commission, which shall then adopt a
792-6 resolution declaring the results of the election. If the
792-7 resolution shows that a majority of the votes cast are in favor of
792-8 annexation the commission shall enter an order annexing the
792-9 territory to the district, and the annexation shall be
792-10 incontestable except in the manner and within the time for
792-11 contesting elections under the Election Code. A certified copy of
792-12 the order shall be recorded in the deed records of the county in
792-13 which the annexed territory is situated.
792-14 (j) The commission, in calling the election on the
792-15 proposition for annexation of territory, may include as a part of
792-16 the same proposition a proposition for the assumption of its part
792-17 of the tax-supported bonds of the district then outstanding and
792-18 those voted but not yet sold and for the levy of an ad valorem tax
792-19 on taxable property in the annexed territory along with the tax in
792-20 the rest of the district for the payment of the bonds.
792-21 (k) After territory is added to the district, the board may
792-22 call an election over the entire district for the purpose of
792-23 determining whether the entire district as enlarged shall assume
792-24 the tax-supported bonds then outstanding and those voted but not
792-25 yet sold and whether an ad valorem tax shall be levied on all
792-26 taxable property within the district as enlarged for the payment of
793-1 the bonds, unless the proposition is voted along with the
793-2 annexation election and becomes lawfully binding on the territory
793-3 annexed. The election shall be called and held in the same manner
793-4 as elections for the issuance of bonds as provided by this chapter.
793-5 (l) If no newspaper is published in the territory to be
793-6 annexed, the notices shall be posted at three public places in the
793-7 territory.
793-8 Sec. 279.008. TERRITORY ANNEXED BY DISTRICT CITIES.
793-9 (a) Territory annexed to any city contained in the district may be
793-10 annexed to the district as provided by this section.
793-11 (b) At any time after final passage of an ordinance or
793-12 resolution annexing territory to a city contained in the district,
793-13 the board may issue a notice of a hearing on the question of
793-14 annexing the territory or any part of the territory. The notice is
793-15 sufficient if it states the date and place of the hearing and:
793-16 (1) describes the area proposed to be annexed; or
793-17 (2) makes reference to the annexation ordinance of the
793-18 city.
793-19 (c) The notice must be published one time in a newspaper
793-20 having general circulation in the city that made the annexation.
793-21 The notice must be published at least 10 days before the date set
793-22 for the hearing.
793-23 (d) If, at the hearing, the board finds that the territory
793-24 proposed to be annexed will benefit from the water supply afforded
793-25 or to be afforded by the district, the board shall adopt a
793-26 resolution annexing the territory to the district.
794-1 Sec. 279.009. APPOINTMENT OF ADDITIONAL DIRECTORS FOLLOWING
794-2 ANNEXATION. (a) If the territory of a city is annexed to the
794-3 district, the governing body of the city shall appoint the number
794-4 of directors or additional directors to which it is entitled under
794-5 Section 279.004.
794-6 (b) If the territory of a city is annexed to the district
794-7 and directors or additional directors are appointed under
794-8 Subsection (a), and the annexation and appointment entitle another
794-9 city within the district to appoint one or more additional
794-10 directors, the governing body of such other city shall appoint the
794-11 number of additional directors to which the city is entitled under
794-12 Section 279.004.
794-13 (c) If, under Subsection (a) or (b), the governing body of a
794-14 city shall appoint only one director, the director shall be
794-15 appointed for a term ending on the May 31 next following the date
794-16 of appointment. If the city appoints two or more directors,
794-17 one-half of such directors shall be appointed for a term ending on
794-18 the May 31 next following the date of their appointment and the
794-19 remaining directors so appointed shall serve for a term ending on
794-20 the second May 31 following the date of their appointment.
794-21 (d) A city with a population of less than 2,000 annexed by
794-22 the district may not appoint a director as long as the city has a
794-23 population of less than 2,000.
794-24 Sec. 279.010. WATER APPROPRIATION PERMITS. The district may
794-25 obtain appropriation permits from the commission through
794-26 appropriate hearings as provided by Chapter 11.
795-1 Sec. 279.011. DAMS AND OTHER FACILITIES FOR IMPOUNDING,
795-2 PROCESSING, OR TRANSPORTING WATER. (a) The district may acquire
795-3 or construct, within or outside the boundaries of the district,
795-4 dams and all works, plants, and other facilities necessary or
795-5 useful for the purpose of impounding, processing, and transporting
795-6 water to cities and others for municipal, domestic, industrial, and
795-7 mining purposes.
795-8 (b) The size of a dam and reservoir shall be determined by
795-9 the board, taking into consideration probable future increases in
795-10 water requirements.
795-11 (c) The size of a dam shall not be limited by the amount of
795-12 water initially authorized by the commission or a predecessor
795-13 agency of the commission to be impounded in the dam.
795-14 (d) A dam or other facility for impounding water may not be
795-15 constructed until the plan for the facility is approved by the
795-16 commission.
795-17 Sec. 279.012. POWERS AND DUTIES. (a) In this section,
795-18 "person" means:
795-19 (1) an individual, partnership, corporation, or other
795-20 private entity; and
795-21 (2) a public agency, including an authority, district,
795-22 city, town, or other political subdivision, joint board, or other
795-23 public agency created and operating under the laws of this state.
795-24 (b) The district has the additional specific powers provided
795-25 by this section.
795-26 (c) The district may acquire, construct, finance, or
796-1 otherwise provide any kind or type of water facilities, water
796-2 pollution control facilities, waste disposal facilities, and air
796-3 pollution control facilities in any area:
796-4 (1) within the Clear Fork of the Brazos River
796-5 watershed and its tributaries;
796-6 (2) within Jones, Shackelford, Stephens, and Taylor
796-7 counties; and
796-8 (3) inside or outside the boundaries of the areas
796-9 described in Subdivisions (1) and (2) with respect to water
796-10 facilities designed primarily to serve inhabitants within those
796-11 areas except as otherwise limited by this section.
796-12 (d) The district may exercise all powers granted to a
796-13 district or a river authority created and operating under Section
796-14 59, Article XVI, Texas Constitution, by Chapter 383, Health and
796-15 Safety Code, Chapter 1371, Government Code, Chapter 30, and any
796-16 other general law relating to the powers and facilities provided by
796-17 this subsection and Subsection (c).
796-18 (e) If the district creates a nonprofit corporation to act
796-19 on its behalf under the Development Corporation Act of 1979
796-20 (Article 5190.6, Vernon's Texas Civil Statutes), the corporation
796-21 may exercise its powers with respect to projects within the area
796-22 described by Subsection (c).
796-23 (f) The district and any persons may contract, on terms and
796-24 conditions to which the parties may agree, with respect to any
796-25 power, function, or duty of the district, including those granted
796-26 in this section. The district and those persons who are parties to
797-1 the contract may execute appropriate documents and instruments in
797-2 connection with the contract.
797-3 (g) The district may issue bonds with respect to any of its
797-4 powers including those powers granted by this section in the manner
797-5 provided by Section 279.017. The district may issue bonds to
797-6 provide funds to enable the district to pay for costs of
797-7 engineering design and studies, surveying, title research,
797-8 appraisals, options on real or personal property, and other related
797-9 activities in connection with planning and implementing various
797-10 proposed projects or improvements and to provide funds to operate
797-11 and maintain any facilities.
797-12 (h) The district may invest its funds, including bond
797-13 proceeds, in any manner or in any securities determined by the
797-14 board.
797-15 (i) In addition to all other powers granted by this chapter
797-16 or by any other law, the district may undertake and carry out
797-17 activities, enter into contracts, loan agreements, leases, or
797-18 installment sales agreements, acquire, purchase, construct, own,
797-19 operate, maintain, repair, improve, or extend, and loan, lease,
797-20 sell, or otherwise dispose of qualifying works, improvements,
797-21 facilities, plants, buildings, structures, equipment, appliances,
797-22 real and personal property or any interest in that property, and
797-23 money or bond proceeds, at any location within the area described
797-24 in Subsection (c), or at any location outside that area with
797-25 respect to facilities that are designed primarily to serve
797-26 inhabitants within that area on the terms and conditions, including
798-1 loan payments, rentals, sale price, or installment sale payments,
798-2 to which the parties may agree. To qualify under this subsection,
798-3 works, improvements, facilities, plants, buildings, structures,
798-4 equipment, appliances, real and personal property or any interest
798-5 in that property, or money or bond proceeds must be incident,
798-6 helpful, or necessary to:
798-7 (1) provide for the development, drilling, control,
798-8 storage, preservation, transmission, treatment, distribution, and
798-9 use of groundwater, storm water, floodwater, and the water of
798-10 rivers and streams for municipal, domestic, electric energy or
798-11 power, industrial, irrigation, oil flooding, mining, agricultural,
798-12 commercial, flood control, and all other beneficial purposes;
798-13 (2) supply water for municipal, domestic, electric
798-14 energy or power, industrial, irrigation, oil flooding, mining,
798-15 agricultural, commercial, and all other beneficial uses and
798-16 purposes;
798-17 (3) collect, transport, process, treat, dispose of,
798-18 and control all waste, including all municipal, domestic,
798-19 industrial, agricultural, recreational, and other waste, whether in
798-20 fluid, solid, or composite state;
798-21 (4) control, abate, or reduce all types of pollution,
798-22 including air pollution and water pollution;
798-23 (5) reclaim and provide drainage and drainage systems
798-24 for land;
798-25 (6) establish or otherwise provide for public parks
798-26 and recreation facilities; and
799-1 (7) facilitate the carrying out of any power, duty, or
799-2 function of the district.
799-3 (j) The legislature finds that the purposes listed in
799-4 Subsection (i) are for the conservation and development of the
799-5 natural resources of the state within the meaning of Section 59,
799-6 Article XVI, Texas Constitution.
799-7 (k) The district is considered to be a district and a river
799-8 authority for the purposes of Chapters 362 and 383, Health and
799-9 Safety Code, and Chapter 30, except that if there is a conflict
799-10 between a provision of one of those chapters and this chapter, this
799-11 chapter prevails.
799-12 (l) Chapter 1371, Government Code, applies to the district.
799-13 (m) Any person may contract with the district in any manner
799-14 authorized by this chapter, Chapters 362 and 383, Health and Safety
799-15 Code, and Chapter 30 with respect to water, waste, pollution
799-16 control, or any other facilities and services provided by the
799-17 district.
799-18 (n) A public agency may contract with the district and may
799-19 determine, agree, and pledge that all or any part of its payments
799-20 under the contract are payable from the source described in Section
799-21 30.030(c), subject only to the authorization of the contract,
799-22 pledge, and payments by a majority vote of the governing body of
799-23 the public agency. A public agency may use and pledge any other
799-24 available revenues or resources for and to the payment of amounts
799-25 due under a contract, as an additional or the sole source of
799-26 payment, and may covenant in that respect to assure the
800-1 availability of the revenues and resources when required.
800-2 (o) If bonds issued by the district recite that they are
800-3 secured by a pledge of revenues from a contract, a copy of the
800-4 contract and the proceedings relating to the contract shall be
800-5 submitted to the attorney general along with the bonds under
800-6 Section 279.021. If the attorney general finds that the bonds have
800-7 been authorized and the contract has been entered into in
800-8 accordance with law, the attorney general shall approve the bonds
800-9 and the contract. After the bonds and the contract are approved by
800-10 the attorney general, they are incontestable in any court or other
800-11 forum for any reason and are valid and binding in accordance with
800-12 their terms and provisions for all purposes.
800-13 (p) A public agency may set, charge, and collect fees,
800-14 rates, charges, rentals, and other amounts for any service or
800-15 facility provided by a utility operated by it, or provided pursuant
800-16 to or in connection with a contract with the district, from its
800-17 inhabitants or from users or beneficiaries of the utility, service,
800-18 or facility, including:
800-19 (1) water charges;
800-20 (2) sewage charges;
800-21 (3) waste disposal system fees and charges, including
800-22 garbage collection or handling fees; and
800-23 (4) other fees or charges.
800-24 (q) A public agency may use and pledge the fees authorized
800-25 by Subsection (p) to make payments to the district required under a
800-26 contract with the district and may covenant to do so in amounts
801-1 sufficient to make all or any part of the payments to the district
801-2 when due. If the parties agree in the contract, these payments
801-3 constitute an expense of operation of any facility or utility
801-4 operated by the public agency, provided, however, that no agreement
801-5 may be made that would violate the United States or Texas
801-6 constitutions.
801-7 (r) This section is wholly sufficient authority within
801-8 itself for the exercise of the powers, the issuance of the bonds,
801-9 the execution of contracts, and the performance of the other acts
801-10 and procedures authorized by this section by the district and all
801-11 persons, including public agencies, without reference to any other
801-12 law or any restrictions or limitations contained in any other law,
801-13 except as specifically provided. To the extent of any conflict or
801-14 inconsistency between this section and any other law, including any
801-15 home-rule city charter, this section prevails and controls. The
801-16 district and all persons, including public agencies, are entitled
801-17 to use any other law that is not in conflict with this section to
801-18 the extent convenient or necessary to carry out any power or
801-19 authority, express or implied, granted by this section.
801-20 (s) This section does not compel any person, including any
801-21 public agency, to secure water, sewer service, or any other service
801-22 from the district except under a voluntarily executed contract.
801-23 (t) Special facility projects to acquire and construct
801-24 separate projects on behalf of a contracting party that are
801-25 self-liquidating and do not constitute a part of the district's
801-26 system may be undertaken only after board approval. None of the
802-1 district's assets may be encumbered for the special facility
802-2 projects described by this subsection other than the facilities
802-3 that are a part of the special facility project. None of a member
802-4 city's assets may be encumbered for the special facility projects
802-5 described by this subsection unless the encumbrance is approved by
802-6 the governing body of the city.
802-7 Sec. 279.013. ACQUISITION OF PROPERTY; CONSTRUCTION OF
802-8 FACILITIES. The district may acquire land and construct, lease, or
802-9 otherwise acquire all works, plants, and other facilities necessary
802-10 or useful for the purpose of exercising the powers and purposes of
802-11 the district including diverting, further impounding or storing
802-12 water, developing underground sources of water, and processing and
802-13 transporting the water to cities and others for municipal,
802-14 domestic, industrial, and mining purposes inside or outside the
802-15 boundaries of the district. Subject to the terms of any deed of
802-16 trust issued by the district, the district may sell, trade, or
802-17 otherwise dispose of any real or personal property considered by
802-18 the board not to be needed for district purposes.
802-19 Sec. 279.014. EMINENT DOMAIN. For the purpose of carrying
802-20 out a power or authority conferred by this chapter the district may
802-21 acquire land and other property and easements inside or outside the
802-22 boundaries of the district, including land needed for the reservoir
802-23 and dam and flood easements above the probable high-water line
802-24 around the reservoirs, by condemnation in the manner provided by
802-25 Chapter 21, Property Code. The district is a municipal corporation
802-26 within the meaning of Section 21.021(c), Property Code. The amount
803-1 and character of interest in land, other property, or easements to
803-2 be acquired shall be determined by the board.
803-3 Sec. 279.015. RELOCATION OF FACILITIES. If the district, in
803-4 the exercise of the power of eminent domain, the power of
803-5 relocation, or any other power granted under this chapter, makes
803-6 necessary the relocation, raising, rerouting, changing of grade, or
803-7 altering the construction of any highway, railroad, electric
803-8 transmission line, telephone or telegraph properties and
803-9 facilities, or pipeline, all such necessary relocation, raising,
803-10 rerouting, changing of grade, or alteration of construction shall
803-11 be accomplished at the sole expense of the district.
803-12 Sec. 279.016. AWARD OF CONSTRUCTION CONTRACT. (a) All
803-13 construction contracts made or awarded by the board which require
803-14 an aggregate expenditure of more than $25,000 shall be made in
803-15 accordance with the provisions of Subchapter I, Chapter 49, and
803-16 other applicable laws.
803-17 (b) Except as otherwise provided by law, a construction
803-18 contract requiring an expenditure of more than $25,000 may be made
803-19 after publication of a notice to bidders once each week for at
803-20 least two weeks before awarding the contract. The notice is
803-21 sufficient if it states the time and place when and where the bids
803-22 will be opened, the general nature of the work to be done, or the
803-23 material, equipment, or supplies to be purchased and states where
803-24 and the terms on which copies of the plans and specifications for
803-25 the project may be obtained. Publication of the notice must be in
803-26 a newspaper published in the district and designated or approved by
804-1 the board.
804-2 Sec. 279.017. BONDS. (a) For the purpose of providing a
804-3 source of water supply for cities and other users for municipal,
804-4 domestic, industrial, and mining purposes, as authorized by this
804-5 chapter, and for the purpose of carrying out any other power or
804-6 authority conferred by this chapter, the district may issue
804-7 negotiable bonds payable from revenues or taxes or both revenues
804-8 and taxes of the district as pledged by resolution of the board.
804-9 Pending the issuance of definitive bonds, the board may authorize
804-10 the delivery of negotiable interim bonds or notes, eligible for
804-11 exchange or substitution by use of the definitive bonds.
804-12 (b) Bonds must be authorized by resolution of the board,
804-13 issued in the name of the district, signed by the president or vice
804-14 president, and attested by the secretary and shall bear the seal of
804-15 the district. The signature of the president or the secretary may
804-16 be printed or lithographed on the bonds with the approval of the
804-17 president or secretary. The seal of the district may be impressed
804-18 on the bonds or may be printed or lithographed on the bonds.
804-19 (c) Bonds mature serially or otherwise in not to exceed 40
804-20 years and may be sold at a price and under terms determined by the
804-21 board to be the most advantageous reasonably obtainable; provided,
804-22 however, that all bonds issued by the district shall comply with
804-23 the provisions of Title 9, Government Code, and the effective
804-24 interest rate on the bonds shall not exceed the maximum rate
804-25 provided in Chapter 1204, Government Code, or other applicable law.
804-26 (d) Bonds may be issued in more than one series and from
805-1 time to time as required for carrying out the purposes of this
805-2 chapter.
805-3 (e) Bonds may be secured by a pledge of all or part of the
805-4 net revenues of the district, of the net revenues of any one or
805-5 more contracts made before or after the bonds are issued, or of
805-6 other revenues or income specified by resolution of the board or in
805-7 the trust indenture. A pledge may reserve the right, under
805-8 conditions specified in the pledge, to issue additional bonds to be
805-9 on a parity with or subordinate to the bonds being issued. In this
805-10 subsection, the term "net revenues" means the gross revenues of the
805-11 district less the amount necessary to pay the cost of maintaining
805-12 and operating the district and its properties.
805-13 (f) The district may issue bonds payable from ad valorem
805-14 taxes to be levied on all taxable property in the district or may
805-15 issue bonds secured by and payable from both those taxes and the
805-16 revenues of the district. If bonds are issued payable wholly or
805-17 partially from ad valorem taxes, the board shall levy a tax
805-18 sufficient to pay bonds and the interest on the bonds as the bonds
805-19 and interest become due. The rate of the tax for any year may be
805-20 set after giving consideration to the money received from the
805-21 pledged revenues available for payment of principal and interest to
805-22 the extent and in the manner permitted by the resolution
805-23 authorizing the issuance of the bonds.
805-24 (g) If bonds payable wholly from revenues are issued, the
805-25 board shall set, and from time to time revise the rates of
805-26 compensation for water sold and services rendered by the district
806-1 sufficient to pay the expense of operating and maintaining the
806-2 facilities of the district and to pay bonds as they mature and the
806-3 interest as it accrues and to maintain the reserve and other funds
806-4 as provided in the resolution authorizing the bonds. If bonds
806-5 payable partially from revenues are issued, the board shall set,
806-6 and from time to time revise, the rate of compensation for water
806-7 sold and services rendered by the district sufficient to assure
806-8 compliance with the resolution authorizing the bonds.
806-9 (h) From the proceeds of the sale of the bonds, the district
806-10 may set aside an amount for the payment of interest expected to
806-11 accrue during construction and for a reserve interest and sinking
806-12 fund, and this provision may be made in the resolution authorizing
806-13 the bonds. Proceeds from the sale of the bonds may also be used
806-14 for the payment of all expenses necessarily incurred in
806-15 accomplishing the purpose for which the district is created,
806-16 including expenses of issuing and selling the bonds. The proceeds
806-17 from the sale of the bonds may be temporarily invested in direct
806-18 obligations of, or obligations whose principal and interest are
806-19 unconditionally guaranteed by, the United States government,
806-20 Federal Intermediate Credit Banks, Federal Land Banks, the Federal
806-21 National Mortgage Association, Federal Home Loan Banks, or Banks
806-22 for Cooperatives.
806-23 (i) In the event of a default or a threatened default in the
806-24 payment of the principal of or interest on bonds payable wholly or
806-25 partially from revenues, any court of competent jurisdiction may,
806-26 on petition of the holders of outstanding bonds, appoint a receiver
807-1 with authority to collect and receive all income of the district
807-2 except taxes, employ and discharge agents and employees of the
807-3 district, take charge of the district's funds on hand, except funds
807-4 received from taxes unless commingled, and manage the proprietary
807-5 affairs of the district without consent or hindrance by the
807-6 directors. The receiver may also be authorized to sell or make
807-7 contracts for the sale of water or renew the contracts with the
807-8 approval of the court appointing the receiver. The court may vest
807-9 the receiver with other powers and duties the court finds necessary
807-10 for the protection of the holders of the bonds. The resolution
807-11 authorizing the issuance of the bonds or the trust indenture
807-12 securing them may limit or qualify the rights of less than all of
807-13 the outstanding bonds payable from the same source to institute or
807-14 prosecute any litigation affecting the district's property or
807-15 income.
807-16 Sec. 279.018. REFUNDING BONDS. (a) The district may issue
807-17 refunding bonds for the purpose of refunding any outstanding bonds
807-18 authorized by this chapter and any interest on the bonds. The
807-19 refunding bonds may be issued to refund more than one series of
807-20 outstanding bonds and may combine the pledges for the outstanding
807-21 bonds for the security of the refunding bonds, and the refunding
807-22 bonds may be secured by other or additional revenues and mortgage
807-23 liens.
807-24 (b) The provisions of this chapter regarding the issuance by
807-25 the district of other bonds, the security for the bonds, the
807-26 approval of the bonds by the attorney general, and the remedies of
808-1 the holders shall be applicable to refunding bonds. Refunding
808-2 bonds shall be registered by the comptroller on surrender and
808-3 cancellation of the bonds to be refunded, but in lieu of that
808-4 process, the resolution authorizing the issuance of the refunding
808-5 bonds may provide that the refunding bonds shall be sold and the
808-6 proceeds of the sale deposited in the bank where the original bonds
808-7 are payable, in which case the refunding bonds may be issued in an
808-8 amount sufficient to pay the principal of and the interest on the
808-9 original bonds to their option date or maturity date, and the
808-10 comptroller shall register the refunding bonds without concurrent
808-11 surrender and cancellation of the original bonds.
808-12 Sec. 279.019. TRUST INDENTURE FOR BONDS. (a) Bonds,
808-13 including refunding bonds, authorized by this chapter, not payable
808-14 wholly from ad valorem taxes, may be additionally secured by a
808-15 trust indenture under which the trustee may be a bank having trust
808-16 powers situated either within or outside the state. The bonds,
808-17 within the discretion of the board, may be additionally secured by
808-18 a deed of trust or mortgage lien on physical properties of the
808-19 district and all franchises, easements, water rights, appropriation
808-20 permits, leases, contracts, and all rights appurtenant to the
808-21 properties, vesting in the trustee power to sell the properties for
808-22 payment of the indebtedness, power to operate the properties, and
808-23 all other powers and authority for the further security of the
808-24 bonds.
808-25 (b) The trust indenture, regardless of the existence of the
808-26 deed of trust or mortgage lien on the properties, may:
809-1 (1) contain any provisions prescribed by the board for
809-2 the security of the bonds and the preservation of the trust estate;
809-3 (2) make provision for amendment or modification of
809-4 the trust indenture and the issuance of bonds to replace lost or
809-5 mutilated bonds;
809-6 (3) condition the right to expend district money or
809-7 sell district property on approval of a registered professional
809-8 engineer selected as provided in the trust indenture; and
809-9 (4) make provision for the investment of funds of the
809-10 district.
809-11 (c) A purchaser under a sale under a deed of trust lien,
809-12 where one is given, shall be the absolute owner of the properties,
809-13 facilities, and rights so purchased and shall have the right to
809-14 maintain and operate the properties, facilities, and rights.
809-15 Sec. 279.020. BOND ELECTIONS. (a) Bonds payable wholly or
809-16 partially from ad valorem taxes, except refunding bonds, shall not
809-17 be issued unless authorized by an election at which only the
809-18 qualified voters who reside in the district are eligible to vote
809-19 and unless a majority of the votes cast in each city contained in
809-20 the district are in favor of the issuance of the bonds. If a
809-21 majority of the votes cast in a city contained in the district are
809-22 against the issuance of the bonds, the board may adopt a resolution
809-23 detaching the territory of the city from the district if the board
809-24 finds that it is in the best interest of the district to issue the
809-25 bonds payable wholly or partially from taxes, but no territory may
809-26 be detached from the district after the issuance of bonds that are
810-1 payable from revenues or taxes or both. Bonds not payable wholly
810-2 or partially from ad valorem taxes may be issued without an
810-3 election.
810-4 (b) An election for the issuance of bonds payable wholly or
810-5 partly from ad valorem taxes may be called by the board without a
810-6 petition. The resolution calling the election shall specify the
810-7 time and location of the election, the purpose for which the bonds
810-8 are to be issued, the maximum amount of the bonds, the maximum
810-9 maturity of the bonds, the form of the ballot, and the presiding
810-10 judge for each voting place. The presiding judge serving at each
810-11 voting place shall appoint one assistant judge and at least two
810-12 clerks to assist in holding the election. Notice of the election
810-13 shall be given by publishing a substantial copy of the resolution
810-14 in one newspaper published in each city contained in the district
810-15 for two consecutive weeks. The first publication must be at least
810-16 21 days before the date of the election. In a city in which no
810-17 newspaper is published, notice shall be given by posting a copy of
810-18 the resolution in three public places.
810-19 (c) The returns of the election shall be made to and
810-20 canvassed by the board.
810-21 (d) The Election Code shall be applicable to elections held
810-22 under this section of this law except as otherwise provided by this
810-23 chapter.
810-24 Sec. 279.021. APPROVAL AND REGISTRATION OF BONDS. After any
810-25 bonds, including refunding bonds, are authorized by the district,
810-26 the bonds and the record relating to their issuance shall be
811-1 submitted to the attorney general for examination as to the
811-2 validity of the bonds and the record. If the bonds recite that
811-3 they are secured by a pledge of the proceeds of a contract
811-4 previously made between the district and a city or other
811-5 governmental agency, authority, or district, a copy of the contract
811-6 and the proceedings of the city or other governmental agency,
811-7 authority, or district authorizing the contract shall also be
811-8 submitted to the attorney general. If the bonds have been
811-9 authorized and if the contract has been made in accordance with the
811-10 constitution and laws of the state, the attorney general shall
811-11 approve the bonds and the contract and the bonds shall then be
811-12 registered by the comptroller. After the approval and
811-13 registration, the bonds and the contracts, if any, are valid and
811-14 binding and are incontestable for any cause.
811-15 Sec. 279.022. WATER SUPPLY CONTRACTS. The district may
811-16 contract with cities and others for the purpose of supplying water
811-17 to them. The district may also contract with a city for the rental
811-18 or leasing of or for the operation of the water production, water
811-19 supply, water filtration or purification, and water supply
811-20 facilities of the city on the consideration the district and the
811-21 city may agree. The contract may be on the terms and for the time
811-22 the parties may agree, and the contract may provide that it shall
811-23 continue in effect until bonds specified in the contract and
811-24 refunding bonds issued in lieu of those bonds are paid.
811-25 Sec. 279.023. DISTRICT DEPOSITORY. (a) The board shall
811-26 designate one or more banks within the district to serve as
812-1 depository for the funds of the district. All funds of the
812-2 district shall be deposited in the depository bank or banks, except
812-3 that funds pledged to pay bonds may be deposited with the trustee
812-4 bank named in the trust agreement and funds shall be remitted to
812-5 the bank of payment for the payment of the principal of and
812-6 interest on bonds. To the extent that funds in the depository
812-7 banks and the trustee bank are not insured by the Federal
812-8 Depository Insurance Corporation, the funds shall be secured in the
812-9 manner provided by law for the security of county funds.
812-10 (b) Before designating a depository bank or banks, the board
812-11 shall issue a notice stating the time and place when and where the
812-12 board will meet to designate the depository or depositories and
812-13 inviting the banks in the district to submit applications to be
812-14 designated depositories. The term of service for depositories
812-15 shall be prescribed by the board. The notice of the meeting must
812-16 be published one time in a newspaper or newspapers published in the
812-17 district and specified by the board.
812-18 (c) At the time mentioned in the notice of the meeting, the
812-19 board shall consider the applications and the management and
812-20 condition of the banks filing the applications and shall designate
812-21 as depositories the bank or banks that offer the most favorable
812-22 terms and conditions for the handling of the funds of the district
812-23 and that the board finds have proper management and are in
812-24 condition to warrant handling of district funds. Membership on the
812-25 board of an officer or director of a bank shall not disqualify the
812-26 bank from being designated as depository.
813-1 (d) If no applications are received by the time stated in
813-2 the notice of the meeting, the board shall designate a bank or
813-3 banks within or outside the district on terms and conditions the
813-4 board finds advantageous to the district.
813-5 Sec. 279.024. POWERS RELATING TO WATER ACQUISITION. The
813-6 district may acquire water appropriation permits from owners of
813-7 permits. The district may lease or acquire rights in and to
813-8 storage and storage capacity in any reservoir constructed or to be
813-9 constructed by any person, firm, corporation, or public agency or
813-10 from the United States government or any of its agencies. The
813-11 district may purchase or make contracts for the purchase of water
813-12 or a water supply from any person, firm, corporation, or public
813-13 agency or from the United States government or any of its agencies.
813-14 Sec. 279.025. BONDS AS INVESTMENTS AND SECURITY FOR
813-15 DEPOSITS. (a) All bonds of the district are legal and authorized
813-16 investments for banks, savings banks, trust companies, building and
813-17 loan associations, savings and loan associations, insurance
813-18 companies, fiduciaries, trustees, and guardians and for the sinking
813-19 fund of cities, towns, villages, counties, school districts, or
813-20 other political corporations or subdivisions of the state.
813-21 (b) District bonds are eligible to secure the deposit of
813-22 public funds of the state and cities, towns, villages, counties,
813-23 school districts, or other political corporations or subdivisions
813-24 of the state. The bonds are lawful and sufficient security for the
813-25 deposits to the extent of the value of the bonds when accompanied
813-26 by all unmatured coupons appurtenant to the bonds.
814-1 Sec. 279.026. TAX EXEMPTION. The accomplishment of the
814-2 purposes stated in this chapter is for the benefit of the people of
814-3 the state and for the improvement of properties and industries of
814-4 the people of the state, and the district, in carrying out the
814-5 purposes of this chapter, will be performing an essential public
814-6 function under the constitution and shall not be required to pay
814-7 any tax or assessment on a project or any part of a project under
814-8 this chapter. The bonds issued as provided by this chapter and the
814-9 transfer of and income from the bonds, including the profits made
814-10 on the sale of the bonds, shall at all times be free from taxation
814-11 within the state.
814-12 Sec. 279.027. LEVYING, ASSESSMENT, EQUALIZATION, RENDITION,
814-13 AND COLLECTION OF TAXES. (a) Taxes throughout the district shall
814-14 be equitably distributed as required by Section 59, Article XVI,
814-15 Texas Constitution, and to that end, the board shall appoint an
814-16 assessor and collector of taxes and shall annually appoint a board
814-17 of equalization. Members of the board of equalization shall be
814-18 persons whom the board finds to be specially qualified to pass on
814-19 valuation of taxable property. The board of equalization shall
814-20 consist of four members with not more than one member being a
814-21 resident in any one city in the district, unless the board finds
814-22 that it cannot appoint from one or more of the cities a qualified
814-23 member who will serve on the board of equalization. A majority of
814-24 the board of equalization constitutes a quorum. General laws
814-25 applicable to water control and improvement districts with
814-26 reference to tax assessors and collectors and boards of
815-1 equalization apply to the district except as otherwise provided in
815-2 this chapter.
815-3 (b) The board may enter into a contract with a city, county
815-4 appraisal district, or other taxing authority within the district
815-5 to perform valuation, appraisal, collection, and other services
815-6 related to assessment and collection of taxes by the district.
815-7 (c) The board may also contract with a city in the district
815-8 for the collection of district taxes levied on taxable property in
815-9 and adjacent to the city and within the district or may contract
815-10 with a county for collection of taxes in the part of the district
815-11 within the county.
815-12 (d) All taxes levied by the board are due and payable on the
815-13 first day of October of the year in which the taxes are levied and
815-14 shall be paid on or before January 31 of the following year.
815-15 (e) All taxes that have not been paid by the last day of
815-16 January shall become delinquent on the first day of February of
815-17 each year, and the delinquent taxes shall constitute a lien on the
815-18 property as provided by Section 59, Article XVI, Texas
815-19 Constitution, although the owner is unknown or the property is
815-20 listed in the name of a person who is not the actual owner, or
815-21 although the ownership is changed.
815-22 (f) Each year that taxes are delinquent a penalty equal to
815-23 six percent of the amount of the taxes shall be added to the total
815-24 amount due.
815-25 (g) The board may adopt a split tax payment plan to conform
815-26 to the plan in effect in a city with which the district makes a tax
816-1 equalization and collection contract, and the board shall make the
816-2 split tax payment plan effective in any other city contained in the
816-3 district on request of the governing body of the city.
816-4 (h) General laws applicable to water control and improvement
816-5 districts with reference to levy, assessment, and collection of ad
816-6 valorem taxes and to the enforced collection of delinquent taxes
816-7 apply to the district.
816-8 Sec. 279.028. ADDITIONAL POWERS. (a) The board may provide
816-9 for the study, correcting, and control of both artificial and
816-10 natural pollution of all water in and to flow into a reservoir
816-11 owned by the district, may adopt and promulgate all reasonable
816-12 regulations to secure, maintain, and preserve the sanitary
816-13 condition of all water in and to flow into a reservoir owned by the
816-14 district, to prevent the waste or the unauthorized use of the
816-15 water, and to protect the reservoir from the inflow of salt and
816-16 other chemicals, and may regulate residence, hunting, fishing,
816-17 boating, and camping, and all recreational and business privileges,
816-18 along or around the reservoir or a stream contributing water to its
816-19 reservoir or a body of land or easement owned by the district.
816-20 (b) The district may prescribe reasonable penalties for the
816-21 breach of a rule or regulation of the district, which penalties
816-22 shall not exceed a fine of more than $200, imprisonment for not
816-23 more than 30 days, or both a fine and imprisonment. The penalties
816-24 are in addition to any other penalties provided by the laws of the
816-25 state and may be enforced by complaints filed in the appropriate
816-26 court of jurisdiction. A rule or regulation that provides a
817-1 penalty for the violation of a rule or a regulation is not
817-2 effective or enforceable unless the district has published a
817-3 substantive statement of the particular rule or regulation and the
817-4 penalty for its violation once a week for two consecutive weeks in
817-5 the county in which the reservoir is situated or in any county in
817-6 which it is partly situated. The substantive statement must be as
817-7 condensed as possible to afford sufficient notice of the act
817-8 forbidden by the rule or regulation. A single notice may embrace a
817-9 number of rules or regulations. The notice must state that breach
817-10 of the rule or regulation will subject the violator to a penalty
817-11 and that the full text of the rule or regulation is on file in the
817-12 principal office of the district, where it may be read by any
817-13 interested person. Five days after the second publication of the
817-14 required notice, the rule or regulation shall be in effect, and
817-15 ignorance of the rule or regulation does not constitute a defense
817-16 to a prosecution for the enforcement of a penalty. The courts
817-17 shall take judicial notice of rules and regulations authorized by
817-18 this subsection, and the rules and regulations shall be considered
817-19 similar in nature to a valid penal ordinance of a city.
817-20 (c) The district may employ and constitute its own peace
817-21 officers. An officer of the district or another duly constituted
817-22 peace officer may make arrests when necessary to prevent or abate
817-23 the commission of an offense against the rules or regulations of
817-24 the district or state laws if the offense or threatened offense
817-25 occurs on land, water, or easement owned or controlled by the
817-26 district. An authorized officer may make an arrest at any place
818-1 where an offense is being committed involving injury or detriment
818-2 to any property owned or controlled by the district.
818-3 (d) Except as otherwise provided in this chapter, the
818-4 district is vested with all the rights, powers, and privileges
818-5 conferred by the general laws of the state applicable to water
818-6 control and improvement districts created under authority of
818-7 Section 59, Article XVI, Texas Constitution, including Chapters 49
818-8 and 51.
818-9 Sec. 279.029. RECREATIONAL FACILITIES. The district may
818-10 establish or otherwise provide for public parks and recreation
818-11 facilities and may acquire land for those purposes. No money
818-12 received from taxation or from bonds payable wholly or partially
818-13 from taxation shall be used to provide for the parks or facilities
818-14 nor shall the right of eminent domain be extended for such
818-15 purposes.
818-16 Sec. 279.030. CONFLICTS. Nothing in this chapter shall be
818-17 interpreted as repealing or modifying:
818-18 (1) the law creating the Brazos River Authority,
818-19 amendments to the law, or supplemental laws, including the master
818-20 plan previously adopted by the Brazos River Authority; or
818-21 (2) Section 11.024, which provides for priorities of
818-22 the use of water.
818-23 CHAPTER 280. WHITE RIVER MUNICIPAL WATER DISTRICT
818-24 Sec. 280.001. CREATION. (a) A conservation and reclamation
818-25 district to be known as the "White River Municipal Water District"
818-26 is created. The district is a governmental agency and a body
819-1 politic and corporate.
819-2 (b) The district is created under and is essential to
819-3 accomplish the purposes of Section 59, Article XVI, Texas
819-4 Constitution.
819-5 Sec. 280.002. DEFINITIONS. In this chapter:
819-6 (1) "Board" means the board of directors of the
819-7 district.
819-8 (2) "Director" means a member of the board.
819-9 (3) "District" means the White River Municipal Water
819-10 District.
819-11 Sec. 280.003. TERRITORY. The district contains all of the
819-12 territory contained in the boundaries of the city of Spur in
819-13 Dickens County, the cities of Crosbyton and Ralls in Crosby County,
819-14 and the city of Post in Garza County, as the boundaries of each
819-15 city are set forth in ordinances passed before May 15, 1957;
819-16 provided, however, that no invalidity of any of those ordinances or
819-17 the fixing of the boundaries as set out in those ordinances shall
819-18 affect the boundaries of the territory contained in the district;
819-19 the legislature finds and determines that all of the territory and
819-20 taxable property contained within the boundaries set forth in the
819-21 ordinances will benefit from the works and improvements of the
819-22 district and that the territory described in the ordinances shall
819-23 be contained within the district whether lawfully contained within
819-24 any of the cities or not.
819-25 Sec. 280.004. BOARD OF DIRECTORS. (a) All powers of the
819-26 district shall be exercised by a board of directors. Each director
820-1 serves for a term of two years.
820-2 (b) In December of each year the governing body of each city
820-3 contained in the district shall appoint a director or directors to
820-4 succeed the director or directors from the city whose term or terms
820-5 are about to expire. Any vacancy shall be filled for the unexpired
820-6 term by the governing body of the appropriate city. Three
820-7 directors shall be appointed by the governing body of each city
820-8 contained in the district, and each director shall reside in the
820-9 city from which the director is appointed.
820-10 (c) Each director serves for a term of office as provided by
820-11 this section and until a successor is appointed and has qualified.
820-12 (d) A director must reside in and own taxable property in
820-13 the city from which the director is appointed. A member of a
820-14 governing body of a city or an employee of a city is not eligible
820-15 to serve as a director.
820-16 (e) A director shall subscribe the constitutional oath of
820-17 office and shall give bond for the faithful performance of the
820-18 director's duties in the amount of $5,000, the cost of which shall
820-19 be paid by the district.
820-20 (f) A majority of the members of the board constitutes a
820-21 quorum.
820-22 (g) If a director moves from the city from which the
820-23 director is appointed or otherwise ceases to be a director, the
820-24 governing body of the city shall appoint a successor director for
820-25 the unexpired term.
820-26 Sec. 280.005. DIRECTOR FEES. (a) Each director is entitled
821-1 to receive a fee not to exceed $20 for attending each meeting of
821-2 the board; provided, however, that no more than $40 is paid to a
821-3 director for meetings held in any one calendar month.
821-4 (b) Each director is entitled to receive a fee not to exceed
821-5 $20 per day for each day devoted to the business of the district
821-6 and reimbursement for actual expenses incurred in attending to
821-7 district business if such service and expense are expressly
821-8 approved by the board.
821-9 Sec. 280.006. OFFICERS; EMPLOYEES; SEAL. (a) The board
821-10 shall elect from among its members a president and a vice president
821-11 of the district, and other officers the board considers necessary.
821-12 (b) The president is the chief executive officer of the
821-13 district and the presiding officer of the board and has the same
821-14 right to vote as any other director.
821-15 (c) The vice president shall perform all duties and exercise
821-16 all powers conferred by this chapter on the president when the
821-17 president is absent or fails or declines to act, except the
821-18 president's right to vote.
821-19 (d) The board shall appoint a secretary and a treasurer who
821-20 may or may not be members of the board, and it may combine those
821-21 offices. The treasurer shall give bond in an amount required by
821-22 the board. The bond shall be conditioned on the treasurer's
821-23 faithfully accounting for all funds that come into the person's
821-24 custody as treasurer of the district.
821-25 (e) The board shall appoint necessary engineers, attorneys,
821-26 and other employees and shall employ a general manager. The power
822-1 to employ and discharge employees may be conferred on the general
822-2 manager.
822-3 (f) The board shall adopt a seal for the district.
822-4 Sec. 280.007. ANNEXATION OF TERRITORY IN CERTAIN COUNTIES.
822-5 (a) Other territory situated within the counties of Dickens,
822-6 Crosby, and Garza may be annexed to the district as provided by
822-7 this section.
822-8 (b) A petition for annexation must:
822-9 (1) be signed by 50 or a majority, whichever number is
822-10 less, of the qualified voters of the territory to be annexed who
822-11 own taxable property and who have duly rendered the same to the
822-12 city, if situated within a city or town, or county for taxation;
822-13 (2) be filed with the board; and
822-14 (3) describe the territory to be annexed by metes and
822-15 bounds or otherwise unless the territory is the same as that
822-16 contained in a city or town, in which event it shall be sufficient
822-17 to state that the territory to be annexed is that contained within
822-18 the city or town.
822-19 (c) If the board finds that the petition complies with and
822-20 is signed by the number of qualified persons required under
822-21 Subsection (b), that the annexation would be in the interest of the
822-22 territory to be annexed and the district, and that the district
822-23 will be able to supply water to the territory to be annexed or
822-24 cause water to be supplied to the territory to be annexed, the
822-25 board shall adopt a resolution stating the conditions, if any,
822-26 under which the territory may be annexed to the district and
823-1 requesting the commission to annex the territory to the district.
823-2 The resolution shall be conclusive of the legal sufficiency of the
823-3 petition and the qualifications of the signers. A certified copy
823-4 of the resolution and the petition shall be filed with the
823-5 commission.
823-6 (d) The commission shall adopt a resolution declaring its
823-7 intention to call an election in the territory to be annexed for
823-8 the purpose of submitting the proposition of whether the territory
823-9 shall be annexed to the district. The commission shall set a time
823-10 and place for a hearing to be held by the commission on the
823-11 question of whether the territory to be annexed will benefit from
823-12 the improvements, works, and facilities then owned or operated or
823-13 contemplated to be owned or operated by the district or will
823-14 benefit from the other functions of the district. Railroad
823-15 right-of-way that is not situated within the defined limits of an
823-16 incorporated city or town will not benefit from the improvements,
823-17 works, and facilities that the district is authorized to construct.
823-18 Railroad right-of-way may not be annexed to the district unless the
823-19 right-of-way is contained within the limits of an incorporated city
823-20 or town that has been annexed to the district.
823-21 (e) Notice of the adoption of the resolution stating the
823-22 time and place of the hearing addressed to the citizens and owners
823-23 of property in the territory to be annexed shall be published one
823-24 time in a newspaper designated by the commission at least 10 days
823-25 before the date of the hearing. The notice must describe the
823-26 territory to be annexed in the same manner in which it is required
824-1 or permitted by this chapter to be described in the petition.
824-2 (f) All interested persons may appear at the hearing and
824-3 offer evidence for or against the intended annexation. The hearing
824-4 may proceed in the order and under the rules as may be prescribed
824-5 by the commission and may be recessed from time to time. If, at
824-6 the conclusion of the hearing, the commission finds that lands in
824-7 the territory to be annexed will benefit from the present or
824-8 contemplated improvements, works, or facilities of the district,
824-9 the commission shall adopt a resolution calling an election in the
824-10 territory to be annexed stating the date of and the place or places
824-11 for holding the election and appointing a presiding judge for each
824-12 voting place, who shall appoint the necessary assistant judges and
824-13 clerks to assist in holding the election.
824-14 (g) Notice of the election, stating the date of the
824-15 election, the proposition to be voted on, and the conditions under
824-16 which the territory may be annexed, or making reference to the
824-17 resolution of the board for that purpose, and the place or places
824-18 for holding the election, shall be published one time in a
824-19 newspaper designated by the commission at least 10 days before the
824-20 date set for the election.
824-21 (h) Only qualified electors who reside in the territory to
824-22 be annexed may vote in the election. Returns of the election shall
824-23 be made to the commission.
824-24 (i) The commission shall canvass the returns of the election
824-25 and adopt an order declaring the results. If the order shows that
824-26 a majority of the votes cast are in favor of annexation, the
825-1 commission shall annex the territory to the district, and the
825-2 annexation is incontestable except in the manner and within the
825-3 time for contesting elections under the Election Code. A certified
825-4 copy of the order shall be recorded in the deed records of the
825-5 county in which the annexed territory is situated.
825-6 (j) In calling the election on the proposition for the
825-7 annexation of territory, the commission may include as a part of
825-8 the same proposition a proposition for:
825-9 (1) the assumption of the territory's part of the
825-10 tax-supported bonds of the district then outstanding and those
825-11 previously voted but not yet sold; and
825-12 (2) the levy of an ad valorem tax on taxable property
825-13 in the territory to be annexed along with the tax in the rest of
825-14 the district for the payment of the bonds.
825-15 (k) After territory is added to the district, the board may
825-16 call an election over the entire district for the purpose of
825-17 determining whether the entire district as enlarged shall assume
825-18 the tax-supported bonds then outstanding and those voted but not
825-19 yet sold and whether an ad valorem tax shall be levied on all
825-20 taxable property within the district as enlarged for the payment of
825-21 the bonds, unless the proposition has been voted along with the
825-22 annexation election and becomes lawfully binding on the territory
825-23 annexed. The election shall be called and held in the same manner
825-24 as elections for the issuance of bonds as provided by this chapter.
825-25 (l) If no newspaper is published in the territory to be
825-26 annexed, the notices required by this section shall be posted at
826-1 three public places in the territory.
826-2 Sec. 280.008. ANNEXATION OF CERTAIN MUNICIPAL TERRITORY.
826-3 (a) Territory annexed to a city contained in the district may be
826-4 annexed to the district as provided by this section.
826-5 (b) At any time after final passage of an ordinance or
826-6 resolution annexing territory to a city contained in the district,
826-7 the board may issue a notice of a hearing on the question of
826-8 annexing the territory or any part of the territory. The notice is
826-9 sufficient if it states the date and place of the hearing and:
826-10 (1) describes the area proposed to be annexed; or
826-11 (2) makes reference to the annexation ordinance of the
826-12 city.
826-13 (c) The notice must be published one time in a newspaper
826-14 having general circulation in the city that made the annexation.
826-15 The publication must be at least 10 days before the date set for
826-16 the hearing.
826-17 (d) If, at the hearing, the board finds that the territory
826-18 to be annexed will benefit from the water supply afforded or to be
826-19 afforded by the district, the board shall adopt a resolution
826-20 annexing the territory to the district.
826-21 Sec. 280.009. APPOINTMENT OF DIRECTORS IN ANNEXED TERRITORY.
826-22 If the territory of a city is annexed to the district, the
826-23 governing body of the city shall appoint three directors. The term
826-24 of one appointee shall expire on the following May 31 and the term
826-25 of the other two appointees shall expire on May 31 a year later.
826-26 Thereafter the directors shall be appointed as provided in Section
827-1 280.004.
827-2 Sec. 280.010. WATER APPROPRIATION PERMITS. The district may
827-3 obtain appropriation permits from the commission through
827-4 appropriate hearings as provided by Chapter 11. Thereafter the
827-5 permit, either on application of the district or on the initiative
827-6 of the commission, may be modified by the commission, after an
827-7 appropriate hearing, to increase or decrease the amount of water
827-8 that may be appropriated, and after considering the amount of water
827-9 that may be stored by the district to meet fluctuating demands,
827-10 either on application by the district or by its own action, the
827-11 commission shall redetermine the maximum amount of water that the
827-12 district may store in its reservoir. In making this determination,
827-13 the commission shall consider the needs of the cities and others
827-14 that purchase water from the district.
827-15 Sec. 280.011. AUTHORITY TO IMPOUND AND TRANSPORT WATER;
827-16 COMMISSION APPROVAL. (a) The district may acquire or construct,
827-17 within or outside the boundaries of the district but not outside
827-18 any county in which the district is located, dams and all works,
827-19 plants, and other facilities necessary or useful for the purpose of
827-20 impounding, processing, and transporting water to cities and others
827-21 for municipal, domestic, industrial, and mining purposes.
827-22 (b) The size of a dam and reservoir shall be determined by
827-23 the board, taking into consideration probable future increases in
827-24 water requirements.
827-25 (c) The size of a dam shall not be limited by the amount of
827-26 water initially authorized by the commission or a predecessor
828-1 agency of the commission to be impounded in the reservoir.
828-2 (d) A dam or other facility for impounding water may not be
828-3 constructed until the plan for the project is approved by the
828-4 commission.
828-5 Sec. 280.012. ACQUISITION AND DISPOSITION OF PROPERTY.
828-6 (a) The district may acquire land, within or outside the
828-7 boundaries of the district but not outside any county in which the
828-8 district is located, and may construct, lease, or otherwise acquire
828-9 all works, plants, and other facilities necessary or useful for the
828-10 purpose of diverting, further impounding or storing, processing,
828-11 and transporting water to cities and others for municipal,
828-12 domestic, industrial, and mining purposes.
828-13 (b) Subject to the terms of any deed of trust issued by the
828-14 district, the district may sell, trade, or otherwise dispose of any
828-15 real or personal property determined by the board not to be needed
828-16 for district purposes.
828-17 Sec. 280.013. EMINENT DOMAIN. (a) For the purpose of
828-18 carrying out any power or authority conferred by this chapter, the
828-19 district may acquire by condemnation in the manner provided by
828-20 Chapter 21, Property Code, the fee simple title to land and other
828-21 property and easements, including land needed for the reservoir and
828-22 dam and flood easements above the probable high-water line around
828-23 the reservoir, within or outside the boundaries of the district but
828-24 not outside any county in which the district is located.
828-25 (b) The district is a municipal corporation within the
828-26 meaning of Section 21.021(c), Property Code, except that the
829-1 district may not condemn any property owned by any other political
829-2 subdivision, city, or town.
829-3 (c) As against persons, firms, and corporations, or their
829-4 receivers or trustees, who have the power of eminent domain, the
829-5 fee title may not be condemned, and the district may condemn only
829-6 an easement.
829-7 (d) In accordance with the provisions of this section, the
829-8 amount and character of interest in land, other property, and
829-9 easements to be acquired shall be determined by the board.
829-10 (e) The district has the power conferred by Section 49.221
829-11 with reference to making surveys and attending to other business of
829-12 the district.
829-13 (f) If the district, in the exercise of the power of eminent
829-14 domain or power of relocation or any other power granted under this
829-15 chapter, makes necessary the relocation, raising, rerouting,
829-16 changing the grade, or altering the construction of any highway,
829-17 railroad, electric transmission line, telephone or telegraph
829-18 properties and facilities, or pipelines, all such necessary
829-19 relocation, raising, rerouting, changing of grade, or alteration of
829-20 construction shall be accomplished at the sole expense of the
829-21 district.
829-22 Sec. 280.014. CONTRACTS; BIDS. A construction contract
829-23 requiring an expenditure of more than $25,000 may only be made
829-24 after publication of a notice to bidders once each week for two
829-25 weeks before the contract is awarded. The notice is sufficient if
829-26 it states the time and location the bids will be opened, states the
830-1 general nature of the work to be done or the material, equipment,
830-2 or supplies to be purchased, and states where and on what terms
830-3 copies of the plans and specifications may be obtained. The
830-4 publication shall be in a newspaper published in the district and
830-5 designated or approved by the board.
830-6 Sec. 280.015. ISSUANCE OF BONDS. (a) For the purpose of
830-7 providing a source of water supply for cities and other users for
830-8 municipal, domestic, industrial, mining, and oil flooding purposes
830-9 as authorized by this chapter and for the purpose of carrying out
830-10 any other power or authority conferred by this chapter, the
830-11 district may issue negotiable bonds to be payable from such
830-12 revenues or taxes, or both revenues and taxes, of the district as
830-13 are pledged by resolution of the board. Pending the issuance of
830-14 definitive bonds, the board may authorize the delivery of
830-15 negotiable interim bonds or notes that are eligible for exchange or
830-16 substitution by the definitive bonds.
830-17 (b) Bonds must be authorized by resolution of the board.
830-18 The bonds shall be issued in the name of the district, signed by
830-19 the president or vice president, and attested by the secretary and
830-20 shall bear the seal of the district. The signatures of the
830-21 president or of the secretary or of both may be printed or
830-22 lithographed on the bonds if authorized by the board, and the seal
830-23 of the district may be impressed on the bonds or may be printed or
830-24 lithographed on the bonds.
830-25 (c) Bonds must mature, serially or otherwise, in not to
830-26 exceed 40 years and may be sold at a price and under terms
831-1 determined by the board to be the most advantageous reasonably
831-2 obtainable, provided that the interest cost to the district,
831-3 including the discount, if any, calculated by use of standard bond
831-4 interest tables currently in use by insurance companies and
831-5 investment houses does not exceed six percent per year. Within the
831-6 discretion of the board, bonds may be made callable prior to
831-7 maturity at such times and prices as may be prescribed in the
831-8 resolution authorizing the bonds and may be made registrable as to
831-9 principal or as to both principal and interest.
831-10 (d) Bonds may be issued in more than one series and from
831-11 time to time as required for carrying out the purposes of this
831-12 chapter.
831-13 (e) Bonds may be secured by a pledge of all or part of the
831-14 net revenues of the district, of the net revenues of one or more
831-15 contracts made before or after the bonds are issued, or of other
831-16 revenues or income specified by resolution of the board or in the
831-17 trust indenture. A pledge may reserve the right, under conditions
831-18 specified in the pledge, to issue additional bonds that will be on
831-19 a parity with or subordinate to the bonds being issued. In this
831-20 section, "net revenues" means the gross revenues and income of the
831-21 district from all sources less the amount necessary to pay the cost
831-22 of maintaining and operating the district and its properties.
831-23 (f) The district may issue bonds payable from ad valorem
831-24 taxes to be levied on all taxable property in the district and may
831-25 issue bonds secured by and payable from both such taxes and the
831-26 revenues of the district. If bonds are issued payable wholly or
832-1 partially from ad valorem taxes, the board shall levy a tax
832-2 sufficient to pay the bonds and the interest on the bonds as the
832-3 bonds and interest become due. The rate of the tax for any year
832-4 may be set after giving consideration to the money received from
832-5 the pledged revenues available for payment of principal and
832-6 interest to the extent and in the manner permitted by the
832-7 resolution authorizing the issuance of the bonds.
832-8 (g) If bonds payable wholly from revenues are issued, the
832-9 board shall set, and from time to time revise, rates of
832-10 compensation for water sold and services rendered by the district
832-11 sufficient to pay the expense of operating and maintaining the
832-12 facilities of the district and to pay the bonds as they mature and
832-13 the interest as it accrues and to maintain the reserve and other
832-14 funds as provided in the resolution authorizing the bonds. If
832-15 bonds payable partially from revenues are issued, the board shall
832-16 set, and from time to time revise, rates of compensation for water
832-17 sold and services rendered by the district sufficient to assure
832-18 compliance with the resolution authorizing the bonds.
832-19 (h) From the proceeds of the sale of the bonds, the district
832-20 may set aside an amount for the payment of interest expected to
832-21 accrue during construction and for a reserve interest and sinking
832-22 fund, and such provision may be made in the resolution authorizing
832-23 the bonds. Proceeds from the sale of the bonds may also be used
832-24 for the payment of all expenses necessarily incurred in
832-25 accomplishing the purposes for which the district is created,
832-26 including the expenses of issuing and selling the bonds. The
833-1 proceeds from the sale of the bonds may be temporarily invested in
833-2 direct obligations of the United States government maturing in not
833-3 more than one year from the date of investment.
833-4 (i) In the event of a default or a threatened default in the
833-5 payment of principal or interest on bonds payable wholly or
833-6 partially from revenues, any court of competent jurisdiction may,
833-7 on petition of the holders of outstanding bonds, appoint a receiver
833-8 with authority to collect and receive all income of the district
833-9 except taxes, employ and discharge agents and employees of the
833-10 district, take charge of the district's funds on hand (except funds
833-11 received from taxes, unless commingled), and manage the proprietary
833-12 affairs of the district without consent or hindrance by the board.
833-13 The receiver may also be authorized to sell or make contracts for
833-14 the sale of water or renew the contracts with the approval of the
833-15 court appointing the receiver. The court may vest the receiver
833-16 with other powers and duties the court finds necessary for the
833-17 protection of the holders of the bonds. The resolution authorizing
833-18 the issuance of the bonds or the trust indenture securing them may
833-19 limit or qualify the rights of less than all of the outstanding
833-20 bonds payable from the same source to institute or prosecute any
833-21 litigation affecting the district's property or income.
833-22 Sec. 280.016. REFUNDING BONDS. (a) The district may issue
833-23 refunding bonds for the purpose of refunding outstanding bonds
833-24 authorized by this chapter and interest on the bonds. Refunding
833-25 bonds may be issued to refund more than one series of outstanding
833-26 bonds and combine the pledges for the outstanding bonds for the
834-1 security of the refunding bonds, and refunding bonds may be secured
834-2 by other or additional revenues and mortgage liens.
834-3 (b) The provisions of this chapter regarding the issuance by
834-4 the district of other bonds, their security, their approval by the
834-5 attorney general, and the remedies of the holders shall be
834-6 applicable to refunding bonds. Refunding bonds shall be registered
834-7 by the comptroller on surrender and cancellation of the bonds to be
834-8 refunded, but in lieu of that procedure, the resolution authorizing
834-9 the issuance of the refunding bonds may provide that the refunding
834-10 bonds shall be sold and the proceeds of the sale deposited in the
834-11 bank where the original bonds are payable, in which case the
834-12 refunding bonds may be issued in an amount sufficient to pay the
834-13 principal of and the interest on the original bonds to their option
834-14 date or maturity date, and the comptroller shall register the
834-15 refunding bonds without concurrent surrender and cancellation of
834-16 the original bonds.
834-17 Sec. 280.017. TRUST INDENTURE; DEED OF TRUST OR MORTGAGE
834-18 LIEN. (a) Bonds, including refunding bonds, authorized by this
834-19 chapter that are not payable wholly from ad valorem taxes may be
834-20 additionally secured by a trust indenture under which the trustee
834-21 may be a bank with trust powers located either within or outside
834-22 the state. The bonds may, within the discretion of the board, be
834-23 additionally secured by a deed of trust or mortgage lien on
834-24 physical properties of the district and all franchises, easements,
834-25 water rights and appropriation permits, leases and contracts, and
834-26 rights appurtenant to the properties, vesting in the trustee power
835-1 to sell the properties for the payment of the indebtedness, power
835-2 to operate the properties, and all other powers and authority for
835-3 the further security of the bonds.
835-4 (b) The trust indenture, regardless of the existence of a
835-5 deed of trust or mortgage lien on the properties, may:
835-6 (1) contain any provisions prescribed by the board for
835-7 the security of the bonds and the preservation of the trust estate;
835-8 (2) make provision for amendment or modification of
835-9 the trust indenture and the issuance of bonds to replace lost or
835-10 mutilated bonds;
835-11 (3) condition the right to expend district money or
835-12 sell district property upon approval of a registered professional
835-13 engineer selected as provided in the trust indenture; and
835-14 (4) make provision for the investment of funds of the
835-15 district.
835-16 (c) A purchaser under a sale under a deed of trust lien,
835-17 where one is given, is the absolute owner of the properties,
835-18 facilities, and rights purchased and has the right to maintain and
835-19 operate the properties, facilities, and rights.
835-20 Sec. 280.018. BONDS PAYABLE FROM AD VALOREM TAXES; ELECTION.
835-21 (a) Bonds payable wholly or partially from ad valorem taxes,
835-22 except refunding bonds, may not be issued unless authorized by an
835-23 election at which only the qualified voters who reside in the
835-24 district are allowed to vote and a majority of the votes cast in
835-25 each city contained in the district are in favor of the issuance of
835-26 the bonds. If a majority of the votes cast in any city contained
836-1 in the district are against the issuance of the bonds, the board
836-2 may adopt a resolution detaching the territory of the city from the
836-3 district if the board finds that it is in the best interest of the
836-4 district to issue bonds payable wholly or partially from taxes, but
836-5 no territory shall be detached from the district after the issuance
836-6 of bonds that are payable from revenues or taxes or both. Bonds
836-7 not payable wholly or partially from ad valorem taxes may be issued
836-8 without an election.
836-9 (b) An election for the authorization of bonds may be called
836-10 by the board without a petition. The resolution calling the
836-11 election must specify the time and places of holding the election,
836-12 the purpose for which the bonds are to be issued, the maximum
836-13 amount of the bonds, the maximum maturity of the bonds, the form of
836-14 the ballot, and the presiding judge for each voting place. The
836-15 presiding judge serving at each voting place shall appoint one
836-16 assistant judge and at least two clerks to assist in holding the
836-17 election. Notice of the election shall be given by publishing a
836-18 substantial copy of the notice in a newspaper published in each
836-19 city contained in the district for two consecutive weeks. The
836-20 first publication must be at least 21 days before the date of the
836-21 election. In a city in which no newspaper is published, notice
836-22 shall be given by posting a copy of the resolution in three public
836-23 places.
836-24 (c) The returns of the election shall be made to and
836-25 canvassed by the board.
836-26 (d) Elections held under this section shall be governed by
837-1 the Election Code except as otherwise provided by this chapter.
837-2 Sec. 280.019. BOND APPROVAL AND REGISTRATION. After bonds,
837-3 including refunding bonds, are authorized by the district, the
837-4 bonds and the record relating to their issuance shall be submitted
837-5 to the attorney general for examination as to the validity of the
837-6 bonds. If the bonds recite that they are secured by a pledge of
837-7 the proceeds of a contract previously made between the district and
837-8 a city or other governmental agency, authority, or district, a copy
837-9 of the contract and the proceedings of the city or other
837-10 governmental agency, authority, or district authorizing the
837-11 contract shall also be submitted to the attorney general. If the
837-12 bonds have been authorized and any contracts have been made in
837-13 accordance with the constitution and laws of the state, the
837-14 attorney general shall approve the bonds and the contracts and the
837-15 bonds then shall be registered by the comptroller. After their
837-16 approval, the bonds and the contracts, if any, are valid and
837-17 binding and are incontestable for any cause.
837-18 Sec. 280.020. CONTRACTS WITH CITIES AND OTHERS. The
837-19 district may enter into contracts with cities and others for
837-20 supplying water to them. The district may also contract with a
837-21 city for the rental or leasing of, or for the operation of, the
837-22 water production, water supply, and water filtration or
837-23 purification and water supply facilities of the city for the
837-24 consideration the district and the city agree on. The contract may
837-25 be on the terms and for the time as the parties may agree, and the
837-26 contract may provide that it shall continue in effect until bonds
838-1 specified in the contract and refunding bonds issued in lieu of
838-2 those bonds are paid.
838-3 Sec. 280.021. DISTRICT DEPOSITORY. (a) The board shall
838-4 designate one or more banks within the district to serve as
838-5 depository for the funds of the district. All funds of the
838-6 district shall be deposited in the depository bank or banks, except
838-7 that funds pledged to pay bonds may be deposited with the trustee
838-8 bank named in the trust agreement and except that funds shall be
838-9 remitted to the bank of payment for the payment of principal of and
838-10 interest on bonds. To the extent that funds in the depository
838-11 banks and the trustee bank are not insured by the Federal Deposit
838-12 Insurance Corporation, the funds shall be secured in the manner
838-13 provided by law for the security of county funds.
838-14 (b) Before designating a depository bank or banks, the board
838-15 shall issue a notice stating the time and place the board will meet
838-16 to designate the depository or depositories and inviting the banks
838-17 in the district to submit applications to be designated
838-18 depositories. The notice must be published one time in a newspaper
838-19 or newspapers published in the district and specified by the board.
838-20 (c) At the time stated in the notice, the board shall
838-21 consider the applications and the management and condition of the
838-22 banks filing them and shall designate as depositories the bank or
838-23 banks that offer the most favorable terms and conditions for the
838-24 handling of the funds of the district and that the board finds have
838-25 proper management and are in condition to warrant the handling of
838-26 district funds. Membership on the board of an officer or director
839-1 of a bank does not disqualify that bank from being designated as a
839-2 depository.
839-3 (d) If no applications are received by the time stated in
839-4 the notice, the board shall designate a bank or banks within or
839-5 outside the district on terms and conditions the board determines
839-6 are advantageous to the district.
839-7 (e) The term of service for depositories shall be prescribed
839-8 by the board.
839-9 Sec. 280.022. WATER APPROPRIATION PERMITS; ACQUISITION OF
839-10 STORAGE CAPACITY AND WATER. The district may acquire water
839-11 appropriation permits from owners of permits. The district may
839-12 lease or acquire rights in and to storage and storage capacity in
839-13 any reservoir constructed or to be constructed by any person, firm,
839-14 corporation, or public agency or from the United States government
839-15 or any of its agencies.
839-16 Sec. 280.023. BONDS ELIGIBLE FOR INVESTMENT AND TO SECURE
839-17 DEPOSITS. (a) Bonds of the district are legal and authorized
839-18 investments for banks, savings banks, trust companies, building and
839-19 loan associations, savings and loan associations, insurance
839-20 companies, fiduciaries, trustees, and guardians and for the sinking
839-21 funds of cities, towns, villages, counties, school districts, or
839-22 other political corporations or subdivisions of the state.
839-23 (b) The bonds are eligible to secure the deposit of all
839-24 public funds of the state and all public funds of cities, towns,
839-25 villages, counties, school districts, or other political
839-26 corporations or subdivisions of the state. Bonds are lawful and
840-1 sufficient security for the deposits to the extent of their value
840-2 when accompanied by all unmatured coupons.
840-3 Sec. 280.024. BONDS EXEMPT FROM TAXATION. The
840-4 accomplishment of the purposes stated in this chapter is for the
840-5 benefit of the people of the state and for the improvement of their
840-6 properties and industries, and the district, in carrying out the
840-7 purposes of this chapter will be performing an essential public
840-8 function under Section 59, Article XVI, Texas Constitution. The
840-9 district may not be required to pay any tax or assessment on the
840-10 project or any part of the project, and the bonds issued under this
840-11 chapter and the transfer of and income from the bonds, including
840-12 profits made on the sale of the bonds, shall at all times be free
840-13 from taxation within the state.
840-14 Sec. 280.025. TAX ROLLS. (a) The tax rolls of the cities
840-15 situated within the district as created and within annexed
840-16 territory shall constitute the tax rolls of the district until
840-17 assessments and tax rolls are made by the district.
840-18 (b) Before the sale and delivery of district bonds that are
840-19 payable wholly or partially from ad valorem taxes, the board shall
840-20 appoint a tax assessor and collector and a board of equalization
840-21 and shall cause taxes to be assessed, valuations to be equalized,
840-22 and tax rolls to be prepared. General laws applicable to water
840-23 control and improvement districts with reference to tax assessors
840-24 and collectors, boards of equalization, tax rolls, and the levy and
840-25 collection of taxes and delinquent taxes shall be applicable to the
840-26 district, except that the board of equalization, to be appointed
841-1 each year by the board, shall consist of one member residing in
841-2 each city contained in the district.
841-3 Sec. 280.026. ADOPTION OF REGULATIONS; PENALTIES;
841-4 ENFORCEMENT. (a) The board may adopt and promulgate all
841-5 reasonable regulations to secure, maintain, and preserve the
841-6 sanitary condition of all water in and to flow into any reservoir
841-7 owned by the district to prevent the waste or unauthorized use of
841-8 water and to regulate residence, hunting, fishing, boating, and
841-9 camping and all recreational and business privileges along or
841-10 around any reservoir or any body of land or easement owned by the
841-11 district.
841-12 (b) The district may prescribe a reasonable penalty for the
841-13 breach of a regulation of the district, not to exceed a fine of
841-14 $200 or imprisonment for 30 days, or both the fine and
841-15 imprisonment. The penalty shall be in addition to any other
841-16 penalties provided by the laws of the state and may be enforced by
841-17 complaints filed in the appropriate court of jurisdiction;
841-18 provided, however, that no rule or regulation that provides a
841-19 penalty for a violation of the rule or regulation shall be in
841-20 effect, as to enforcement of the penalty, until five days after the
841-21 district has caused a substantive statement of the rule or
841-22 regulation and the penalty for the violation to be published once a
841-23 week for two consecutive weeks in the county in which the reservoir
841-24 is situated or in any county in which it is partly situated. The
841-25 substantive statement to be published must be as condensed as is
841-26 possible to afford sufficient notice as to the act forbidden by the
842-1 rule or regulation. A single notice may embrace any number of
842-2 regulations. The notice must provide the information that breach
842-3 of the regulation or regulations will subject the violator to the
842-4 imposition of a penalty. The notice must also state that the full
842-5 text of the regulations is on file in the principal office of the
842-6 district and may be read by any interested person. Five days after
842-7 the second publication of the notice required by this section, the
842-8 advertised regulation shall be in effect, and ignorance of the
842-9 regulation is not a defense to prosecution for the enforcement of a
842-10 penalty. After the required publication, the rules and regulations
842-11 authorized by this section shall judicially be known to the courts
842-12 and shall be considered similar in nature to a valid penal
842-13 ordinance of a city.
842-14 (c) A duly constituted peace officer may make arrests when
842-15 necessary to prevent or stop the commission of any offense against
842-16 the regulations of the district or against the laws of the state,
842-17 when the offense or threatened offense occurs on any land, water,
842-18 or easement owned or controlled by the district, or may make an
842-19 arrest at any place in the case of an offense involving injury or
842-20 detriment to any property owned or controlled by the district.
842-21 Sec. 280.027. PARKS AND RECREATION FACILITIES. The district
842-22 may establish or otherwise provide for public parks and recreation
842-23 facilities and may acquire land for such purposes within or outside
842-24 the district but not outside any county in which the district is
842-25 located; provided, however, that no money received from taxation or
842-26 from bonds payable wholly or partially from taxation may be used
843-1 for such purposes, and the right of eminent domain may not be
843-2 extended for such purposes.
843-3 Sec. 280.028. EFFECT ON PRIORITY OF WATER USE. Nothing in
843-4 this Act shall be interpreted as amending or repealing Section
843-5 11.024, which provides for priorities of the use of water.
843-6 SECTION 2. Subtitle A, Title 2, Water Code, is amended by
843-7 adding Chapter 9 to read as follows:
843-8 CHAPTER 9. TEXAS WATER ADVISORY COUNCIL
843-9 Sec. 9.001. DEFINITION. In this chapter:
843-10 (1) "Authority" means an entity listed in Section
843-11 9.010(b).
843-12 (2) "Board" means the governing body of an authority.
843-13 (3) "Commission" means the Texas Natural Resource
843-14 Conservation Commission.
843-15 (4) "Council" means the Texas Water Advisory Council.
843-16 Sec. 9.002. CREATION AND MEMBERSHIP. (a) The council is
843-17 composed of 11 members as follows:
843-18 (1) the chairman, or a board member designated by the
843-19 chairman, of the Texas Water Development Board;
843-20 (2) the chairman, or a commissioner designated by the
843-21 chairman, of the commission;
843-22 (3) the chairman, or a commissioner designated by the
843-23 chairman, of the Parks and Wildlife Commission;
843-24 (4) the commissioner of agriculture;
843-25 (5) the Commissioner of the General Land Office;
843-26 (6) two members of the house of representatives
844-1 appointed by the speaker of the house of representatives;
844-2 (7) one member of the senate appointed by the
844-3 lieutenant governor; and
844-4 (8) three members of the general public appointed by
844-5 the governor.
844-6 (b) Council members may not delegate council participation
844-7 or council duties to staff.
844-8 Sec. 9.003. TERMS. (a) Except for the commissioner of
844-9 agriculture, council members who are officials of state agencies
844-10 serve terms as determined by the chairman of each agency.
844-11 (b) Council members who are members of the general public
844-12 serve staggered six-year terms with the term of one member expiring
844-13 August 31 of each odd-numbered year.
844-14 (c) Council members may be reappointed to serve additional
844-15 terms.
844-16 (d) A vacancy on the council shall be filled by appointment
844-17 by the original appointing authority for the unexpired term.
844-18 Sec. 9.004. OFFICERS OF THE COUNCIL. (a) The governor
844-19 shall appoint a council member as the chair of the council for a
844-20 two-year term expiring May 31 of each even-numbered year.
844-21 (b) The council shall have a secretary of the council who
844-22 shall serve at the pleasure of the council and be accountable only
844-23 to the council.
844-24 Sec. 9.005. COUNCIL STAFF. On request by the council, the
844-25 commission and the Texas Water Development Board shall provide any
844-26 staff other than the secretary of the council necessary to assist
845-1 the council in the performance of its duties.
845-2 Sec. 9.006. MEETINGS. (a) The council shall meet at least
845-3 once in each calendar quarter. Six members shall constitute a
845-4 quorum sufficient to conduct meetings and the business of the
845-5 council.
845-6 (b) The council is subject to Chapters 551 and 2001,
845-7 Government Code.
845-8 Sec. 9.007. COMPENSATION OF MEMBERS. (a) Members of the
845-9 council shall serve without compensation but may be reimbursed by
845-10 legislative appropriation for actual and necessary expenses related
845-11 to the performance of council duties.
845-12 (b) Reimbursements under Subsection (a) shall be subject to
845-13 the approval of the chair.
845-14 Sec. 9.008. POWERS AND DUTIES OF COUNCIL. (a) The council
845-15 shall:
845-16 (1) heighten the level of dialogue on significant
845-17 water policy issues and, in an advisory role only, strive to
845-18 provide focus and guidance on state water policy initiatives,
845-19 including:
845-20 (A) promoting flexibility and incentives for
845-21 water desalination, brush control, regionalization, weather
845-22 modification projects, and public-private partnerships relating to
845-23 water projects;
845-24 (B) promoting adequate financing for surface
845-25 water and groundwater projects;
845-26 (C) development of water conservation and
846-1 drought management projects;
846-2 (D) implementation of approved regional and
846-3 state water plans;
846-4 (E) encouraging commonality of technical data
846-5 and information such as joint agency studies, freshwater inflow
846-6 recommendations, surface water and groundwater availability models,
846-7 and instream flow recommendations developed by the Parks and
846-8 Wildlife Department, the commission, and the Texas Water
846-9 Development Board; and
846-10 (F) encouraging the use of supplemental
846-11 environmental projects for water infrastructure needs and enhancing
846-12 the aquatic environment and habitat in enforcement proceedings at a
846-13 state agency or political subdivision;
846-14 (2) encourage the enhancement and coordination of
846-15 state, interstate, and international efforts to improve
846-16 environmental quality and living conditions along the Texas-Mexico
846-17 border;
846-18 (3) coordinate a unified state position on federal and
846-19 international water issues; and
846-20 (4) advise the Texas Water Development Board on
846-21 developing criteria based on need for prioritizing the funding of
846-22 projects in the state water plan.
846-23 (b) The council may not:
846-24 (1) promulgate rules;
846-25 (2) regulate water use, water quality, or any other
846-26 aspect of water resource management;
847-1 (3) plan or construct water resource projects, or have
847-2 such projects planned or constructed;
847-3 (4) grant or loan any funds for the construction of
847-4 water resource projects;
847-5 (5) establish water resource management standards or
847-6 otherwise usurp the authority of or infringe upon the duties,
847-7 responsibilities, or powers of local, regional, or state water
847-8 management entities, including groundwater districts, river
847-9 authorities and compacts, regional water planning groups, or member
847-10 agencies of the council; or
847-11 (6) consider or discuss any specific permit or project
847-12 or recommendation for a project.
847-13 Sec. 9.009. REPORT. Not later than December 1 of each
847-14 even-numbered year, the council shall submit a report to the
847-15 governor, lieutenant governor, and speaker of the house of
847-16 representatives and to the senate and house standing committees
847-17 with primary responsibility over water resource management and
847-18 financing. The report shall include findings of the council made
847-19 in the periodic reviews of authorities during the preceding
847-20 two-year period and any other findings and recommendations the
847-21 council considers necessary.
847-22 Sec. 9.010. REVIEW OF AUTHORITIES. (a) On a five-year
847-23 cycle, the council shall review authorities based on the
847-24 administrative policies provided by Section 9.012 and performance
847-25 standards described in Section 9.011. The reviews shall be
847-26 conducted of groups described in Subsection (b), with group 1 being
848-1 reviewed at the council's first quarterly meeting of the five-year
848-2 period and group 2 being reviewed at the council's third quarterly
848-3 meeting of the period. The council shall continue in numerical
848-4 order to review one group at every other quarterly meeting until
848-5 all ten groups have been reviewed and then shall recommence the
848-6 cycle.
848-7 (b) Authorities shall be reviewed under Subsection (a) in
848-8 the following groups:
848-9 (1) in group 1, Northeast Texas Municipal Water
848-10 District, Titus County Fresh Water Supply District No. 1, and
848-11 Franklin County Water District;
848-12 (2) in group 2, Angelina and Neches River Authority,
848-13 Lower Neches Valley Authority, Sabine River Authority, and Upper
848-14 Neches River Municipal Water Authority;
848-15 (3) in group 3, Red River Authority of Texas, Sulphur
848-16 River Municipal Water District, and Sulphur River Basin Authority;
848-17 (4) in group 4, San Jacinto River Authority, Gulf
848-18 Coast Water Authority, and North Harris County Regional Water
848-19 Authority;
848-20 (5) in group 5, North Texas Municipal Water District,
848-21 Tarrant Regional Water District, Trinity River Authority of Texas,
848-22 and Dallas County Utility and Reclamation District;
848-23 (6) in group 6, Brazos River Authority, West Central
848-24 Texas Municipal Water District, and North Central Texas Municipal
848-25 Water Authority;
848-26 (7) in group 7, Guadalupe-Blanco River Authority,
849-1 Lavaca-Navidad River Authority, Lower Colorado River Authority, and
849-2 Upper Guadalupe River Authority;
849-3 (8) in group 8, Nueces River Authority, San Antonio
849-4 River Authority, and Bexar-Medina-Atascosa Counties Water Control
849-5 and Improvement District No. 1;
849-6 (9) in group 9, Colorado River Municipal Water
849-7 District, Central Colorado River Authority, and Upper Colorado
849-8 River Authority; and
849-9 (10) in group 10, Canadian River Municipal Water
849-10 Authority, Mackenzie Municipal Water Authority, and White River
849-11 Municipal Water District.
849-12 (c) The council may not review an authority under this
849-13 section more than once every five years. The council may, however,
849-14 request an authority that has been reviewed to provide follow-up
849-15 information on any specific item or issue raised during the initial
849-16 review.
849-17 (d) The council, on request by an authority, may modify the
849-18 review schedule in order to have the flexibility in scheduling the
849-19 review, if needed, to be more responsive to particular
849-20 circumstances, changing conditions, or time-sensitive conflicts.
849-21 Sec. 9.011. PERFORMANCE STANDARDS. (a) Before its
849-22 five-year review under Section 9.010, the authority shall report to
849-23 the council a self-assessment of its performance associated with
849-24 the following:
849-25 (1) how the authority is achieving its stated mission
849-26 and goals, including an identification of any barriers that exist
850-1 in achieving the mission and goals;
850-2 (2) how the authority is providing service to its
850-3 customers, including mechanisms the authority provides to encourage
850-4 input from the public and its customers;
850-5 (3) how the authority is addressing issues raised by
850-6 its most recent management audit, including its administrative
850-7 policies; and
850-8 (4) the authority's role in the regional water
850-9 planning process.
850-10 (b) The authority's report to the council under this section
850-11 shall include recommendations related to:
850-12 (1) any interregional issues the authority has
850-13 identified as problematic and any potential solutions to those
850-14 issues; and
850-15 (2) solutions to any barriers the authority determines
850-16 are interfering with the successful implementation of the approved
850-17 regional water plan or state water plan.
850-18 Sec. 9.012. ADMINISTRATIVE POLICIES FOR AUTHORITIES. The
850-19 commission shall expand the applicability of its rules under 30
850-20 T.A.C. Chapter 292 to include all the authorities subject to this
850-21 title. The commission shall provide the council with copies of the
850-22 most recent information provided by each authority in accordance
850-23 with its administrative rules.
850-24 Sec. 9.013. GIFTS AND GRANTS. The council may accept gifts
850-25 and grants from any source to carry out the purposes of this
850-26 chapter. The use of gifts and grants other than legislative
851-1 appropriations is subject only to limitations contained in the gift
851-2 or grant.
851-3 Sec. 9.014. FUNDING. (a) The interagency water policy
851-4 account is a special account in the general revenue fund.
851-5 (b) The interagency water policy account consists of
851-6 legislative appropriations, gifts and grants received under Section
851-7 9.013, and other money required by law to be deposited in the
851-8 account.
851-9 (c) Funds in the interagency water policy account may be
851-10 used only as provided by this chapter.
851-11 Sec. 9.015. CONTINUING RIGHT OF SUPERVISION. Nothing in
851-12 this chapter shall affect the continuing right of supervision over
851-13 authorities by the commission as provided by Section 12.081.
851-14 Sec. 9.016. PUBLIC PARTICIPATION. The council shall
851-15 encourage public input to the council in the exercise of its powers
851-16 and duties as specified in Section 9.008, its preparation of the
851-17 report described in Section 9.009, and its review of authorities
851-18 under Sections 9.010 and 9.011.
851-19 Sec. 9.017. APPLICATION OF OTHER LAWS. Nothing in this
851-20 chapter is intended to extend provisions of the Government Code,
851-21 the Local Government Code, or other law to a river authority or
851-22 water district to which such provisions do not otherwise apply.
851-23 SECTION 3. Subchapter F, Chapter 49, Water Code, is amended
851-24 by adding Section 49.187 to read as follows:
851-25 Sec. 49.187. REVENUE BONDS OF SURFACE WATER AUTHORITIES.
851-26 (a) In this section:
852-1 (1) "Person" means any individual, partnership,
852-2 corporation, public utility, or other private entity or any public
852-3 agency.
852-4 (2) "Public agency" means any authority, district,
852-5 city, town, or other political subdivision, joint board, or other
852-6 public agency created pursuant to and operating under the laws of
852-7 the state.
852-8 (b) A surface water authority and all persons are authorized
852-9 to contract with each other in any manner and on terms as to which
852-10 the parties may agree with respect to any power, function,
852-11 facilities, or services which an authority is authorized by law to
852-12 provide or finance. All public agencies are authorized to use and
852-13 pledge any available revenues for and in the payment of amounts due
852-14 under the contracts as an additional source or sources of payment
852-15 of the contracts or as the sole source or sources of payment of the
852-16 contracts and may covenant with respect to available revenues so as
852-17 to assure the availability of these revenues when required. The
852-18 term "revenues" as used in this subsection does not mean or include
852-19 revenues from ad valorem taxes levied and collected by a public
852-20 agency or the proceeds from the sale or refunding of bonds of a
852-21 public agency that are to be wholly or partially paid from ad
852-22 valorem taxes levied and collected by the public agency unless the
852-23 use or pledge of the tax revenues or bond proceeds are approved by
852-24 the qualified voters of the public agency at an election called for
852-25 the purpose of levying taxes or issuing or refunding bonds or both
852-26 for the purpose of using or pledging their revenues or proceeds
853-1 under contracts entered into under this subsection.
853-2 (c) Each public agency is authorized to fix, charge, and
853-3 collect fees, rates, charges, rentals, and other amounts for any
853-4 services or facilities provided by any utility operated by it or
853-5 provided pursuant to or in connection with any contract with a
853-6 surface water authority from its inhabitants or from any users or
853-7 beneficiaries of any utility, services, or facilities, including
853-8 specifically water charges, sewage charges, solid waste disposal
853-9 system fees and charges, including garbage collection or handling
853-10 fees, and other fees or charges and to use and pledge same to make
853-11 payments to an authority required under the contract and may
853-12 covenant to do so in amounts sufficient to make all or any part of
853-13 the payments to an authority when due. The payments shall, if the
853-14 parties agree in the contract, constitute an expense of operation
853-15 of any facilities or utility operated by the public agency.
853-16 (d) A surface water authority, acting through its governing
853-17 body, is authorized to undertake and carry out any activities and
853-18 to acquire, purchase, construct, own, operate, maintain, repair,
853-19 improve, or extend and to lease or sell on terms and conditions,
853-20 including rentals or sale prices, on which the parties may agree
853-21 any and all works, improvements, facilities, plants, buildings,
853-22 structures, equipment, and appliances and all real and personal
853-23 property or any interest in real or personal property related
853-24 thereto that are incident to or necessary in carrying out or
853-25 performing any power or function of an authority under this
853-26 section.
854-1 (e) A surface water authority is authorized to issue bonds
854-2 with respect to the acquisition, purchase, construction,
854-3 maintenance, repair, improvement, and extension of works,
854-4 improvements, facilities, plants, buildings, structures,
854-5 appliances, and property for the purpose of exercising any of its
854-6 powers and functions under this section in the manner provided by
854-7 this section or any other applicable law. An authority is further
854-8 authorized to issue revenue bonds to pay for the costs of
854-9 feasibility studies for proposed projects of an authority,
854-10 including engineering, planning and design, and environmental
854-11 studies. An authority is authorized to include in any revenue bond
854-12 issue the funds to operate and maintain for a period not to exceed
854-13 two years after completion of the facilities acquired or
854-14 constructed through the revenue bond issue. If any bonds issued by
854-15 an authority recite that they are secured by a pledge of payments
854-16 under any contract, a copy of the contract and the proceedings
854-17 relating to the contract may be submitted to the attorney general
854-18 along with the bonds, and if the attorney general finds that the
854-19 bonds have been authorized and the contract or contracts has or
854-20 have been made and entered into in accordance with law, then the
854-21 attorney general shall approve the bonds and the contract or
854-22 contracts, and after the approval, the bonds and the contract or
854-23 contracts shall be incontestable in any court or other forum for
854-24 any reason and shall be valid and binding in accordance with its or
854-25 their terms and provisions for all purposes. The provisions of
854-26 Chapters 618, 1201, 1204, 1207, and 1371, Government Code, are
855-1 applicable to bonds issued by an authority.
855-2 (f) This section is wholly sufficient authority within
855-3 itself for the issuance of the bonds, the execution of contracts,
855-4 and the performance of the other acts and procedures authorized in
855-5 this section by a surface water authority and all persons,
855-6 including specifically public agencies, without reference to any
855-7 other provisions of law or any restrictions or limitations
855-8 contained therein, except as in this section specifically provided;
855-9 and in any case, to the extent of any conflict or inconsistency
855-10 between any provisions of this section and any other provisions of
855-11 law, including any home-rule city charter, this section shall
855-12 prevail and control; provided, however, that an authority and all
855-13 persons, including specifically public agencies, shall have the
855-14 right to use any other provisions of law not in conflict with the
855-15 provisions of this section to the extent convenient or necessary to
855-16 carry out any power or authority, express or implied, granted by
855-17 this section.
855-18 SECTION 4. The following laws are repealed:
855-19 (1) Chapter 605, Acts of the 63rd Legislature, Regular
855-20 Session, 1973, Chapter 370, Acts of the 73rd Legislature, Regular
855-21 Session, 1993, and Chapter 544, Acts of the 74th Legislature,
855-22 Regular Session, 1995 (Bexar-Medina-Atascosa Counties Water Control
855-23 and Improvement District No. 1);
855-24 (2) Chapter 268, Acts of the 55th Legislature, Regular
855-25 Session, 1957, and Chapter 414, Acts of the 57th Legislature,
855-26 Regular Session, 1961 (Tarrant Regional Water District);
856-1 (3) Chapter 221, Acts of the 60th Legislature, Regular
856-2 Session, 1967 (Titus County Fresh Water Supply District No. 1);
856-3 (4) Chapter 97, Acts of the 44th Legislature, Regular
856-4 Session, 1935 (Angelina and Neches River Authority);
856-5 (5) Chapter 13, Special Laws, Acts of the 41st
856-6 Legislature, 2nd Called Session, 1929 (Brazos River Authority);
856-7 (6) Chapter 243, Acts of the 53rd Legislature, Regular
856-8 Session, 1953 (Canadian River Municipal Water Authority);
856-9 (7) Chapter 338, General Laws, Acts of the 44th
856-10 Legislature, Regular Session, 1935 (Central Colorado River
856-11 Authority);
856-12 (8) Chapter 340, Acts of the 51st Legislature, Regular
856-13 Session, 1949 (Colorado River Municipal Water District);
856-14 (9) Chapter 628, Acts of the 68th Legislature, Regular
856-15 Session, 1983 (Dallas County Utility and Reclamation District);
856-16 (10) Chapter 719, Acts of the 59th Legislature,
856-17 Regular Session, 1965 (Franklin County Water District);
856-18 (11) Chapter 75, Acts of the 43rd Legislature, 1st
856-19 Called Session, 1933 (Guadalupe-Blanco River Authority);
856-20 (12) Chapter 712, Acts of the 59th Legislature,
856-21 Regular Session, 1965 (Gulf Coast Water Authority);
856-22 (13) Chapter 186, Acts of the 50th Legislature,
856-23 Regular Session, 1947 (Lavaca-Navidad River Authority);
856-24 (14) Chapter 7, Acts of the 43rd Legislature, 4th
856-25 Called Session, 1934 (Lower Colorado River Authority);
856-26 (15) Chapter 63, Acts of the 43rd Legislature, 1st
857-1 Called Session, 1933 (Lower Neches Valley Authority);
857-2 (16) Chapter 277, Acts of the 59th Legislature,
857-3 Regular Session, 1965 (Mackenzie Municipal Water Authority);
857-4 (17) Chapter 86, Acts of the 55th Legislature, Regular
857-5 Session, 1957 (North Central Texas Municipal Water Authority);
857-6 (18) Chapter 1029, Acts of the 76th Legislature,
857-7 Regular Session, 1999 (North Harris County Regional Water
857-8 Authority);
857-9 (19) Chapter 62, Acts of the 52nd Legislature, Regular
857-10 Session, 1951 (North Texas Municipal Water District);
857-11 (20) Chapter 78, Acts of the 53rd Legislature, Regular
857-12 Session, 1953 (Northeast Texas Municipal Water District);
857-13 (21) Chapter 427, Acts of the 44th Legislature, 1st
857-14 Called Session, 1935 (Nueces River Authority);
857-15 (22) Chapter 279, Acts of the 56th Legislature,
857-16 Regular Session, 1959 (Red River Authority of Texas);
857-17 (23) Chapter 110, Acts of the 51st Legislature,
857-18 Regular Session, 1949 (Sabine River Authority);
857-19 (24) Chapter 9, page 1083, Special Laws, Acts of the
857-20 46th Legislature, Regular Session, 1939 (San Antonio River
857-21 Authority);
857-22 (25) Chapter 426, Acts of the 45th Legislature,
857-23 Regular Session, 1937 (San Jacinto River Authority);
857-24 (26) Chapter 3, Acts of the 69th Legislature, 1st
857-25 Called Session, 1985 (Sulphur River Basin Authority);
857-26 (27) Chapter 212, Acts of the 54th Legislature,
858-1 Regular Session, 1955 (Sulphur River Municipal Water District);
858-2 (28) Section 1 and Sections 2(a)-1 through 31, Chapter
858-3 518, Acts of the 54th Legislature, Regular Session, 1955 (Trinity
858-4 River Authority of Texas);
858-5 (29) Chapter 126, Acts of the 44th Legislature,
858-6 Regular Session, 1935 (Upper Colorado River Authority);
858-7 (30) Chapter 5, page 1062, Special Laws, Acts of the
858-8 46th Legislature, Regular Session, 1939 (Upper Guadalupe River
858-9 Authority);
858-10 (31) Chapter 412, Acts of the 53rd Legislature,
858-11 Regular Session, 1953 (Upper Neches River Municipal Water
858-12 Authority);
858-13 (32) Chapter 66, Acts of the 54th Legislature, Regular
858-14 Session, 1955 (West Central Texas Municipal Water District);
858-15 (33) Chapter 221, Acts of the 55th Legislature,
858-16 Regular Session, 1957 (White River Municipal Water District).
858-17 SECTION 5. The Texas Water Advisory Council shall review the
858-18 first group described under Section 9.010, Water Code, as added by
858-19 this Act, at the third quarterly meeting held by the council.
858-20 SECTION 6. (a) The change in law made by Section 1 of this
858-21 Act shall not affect the application of the provisions of Subtitle
858-22 A, Title 9, Government Code, to any district or authority created
858-23 under Section 59, Article XVI, or Section 52, Article III, Texas
858-24 Constitution, and subject to Title 6, Water Code, as added by this
858-25 Act, or to the bonds of any such district or authority if the
858-26 provisions applied to the district or authority or to the bonds
859-1 immediately before the effective date of this Act.
859-2 (b) The change in law made by Section 1 of this Act shall
859-3 not affect the terms, requirements, or procedures applicable to any
859-4 bonds issued before the effective date of this Act of any district
859-5 or authority created under Section 59, Article XVI, or Section 52,
859-6 Article III, Texas Constitution, and subject to Title 6, Water
859-7 Code, as added by this Act. Such bonds are governed by the law in
859-8 effect immediately before the effective date of this Act, and that
859-9 law continues in effect as to those bonds for that purpose.
859-10 SECTION 7. Nothing in this Act affects the term of office of
859-11 a member of a board of directors subject to Title 6, Water Code, as
859-12 added by this Act, who is serving on the board of directors on the
859-13 effective date of this Act.
859-14 SECTION 8. (a) A transition or saving provision of a law
859-15 codified by this Act applies to the codified law to the same extent
859-16 as it applied to the original law.
859-17 (b) The repeal of a transition or saving provision by this
859-18 Act does not affect the application of the provision to the
859-19 codified law.
859-20 (c) In this section, "transition provision" includes any
859-21 temporary provision providing for a special situation in the
859-22 transition period between the existing law and the establishment or
859-23 implementation of the new law.
859-24 SECTION 9. This Act takes effect September 1, 2001.