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.